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HomeMy WebLinkAboutCC Resolution 7912 (Spinnaker Point BMR)RESOLUTION NO. 7912 A RESOLUTION AUTHORIZING THE SIGNING OF AN AGREEMENT THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows: The MAYOR and CITY CLERK are authorized to execute, on behalf of the City of San Rafael, a Below Market Rate Agreement between the City and Spinnaker Point Partnership (Spinnaker Point Unit 5 Subdivision), a copy of which is hereby attached and by this reference made a part hereof. I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City on Tuesday, the 21st day of February, 1989, by the following vote, to wit: AYES: COUNCILMEMBERS: Boro, Breiner, Frugoli & Mayor Mulryan NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Thayer JEA . LEONCIN i\, City Clerk TO PROVIDE BELOW PLARKBT RATE HOUSING This AGREEMENT TO PROVIDE BELOW MARKET RATE HOUSING ("Agree- ment') is entered into between Spinnaker Point Partnership, a California General Partnership, ("Owner") and the City of San Rafael, a Charter City, ("City"). RECITALS WHEREAS, Owner is the owner of certain real property located in San Rafael, Marin County, California, commonly known as Unit #5 of Spinnaker Point, and more particularly described as Assessor's Parcels 9-081-07, 08, 47 & 48, and 9-082-06 ("Proper- .ty n) . WHEREAS, City has approved a Vesting Tentative Subdivision Map for the Property, described as TS 86-2, which allows 48 residential townhouse units on the Property ("Approved Tentative Map") WHEREAS, Condition (r) of the Approved Tentative Map requires the applicants to provide a total of five of the 48 units for below market rate ("BMR") sales to moderate income families, or to pay in -lieu affordable housing fees based upon the amount per unit specified in Exhibit "A" attached hereto and incorporated herein by reference; WHEREAS, Owner and City desire to satisfy Condition (r) of the Approved Tentative Map in the following manner: NOW, THEREFORE, Owner and City agree as follows: 1. Deposit of In -Lieu Fees. Upon execution of this Agreement and recordation of the final map for the Approved Tentative Map, Owner shall deposit with City an irrevocable letter of credit or equivalent financial guarantee from a financial institution subject to regulation by the state or federal government pledging that the sum of $314,640.00 ("In -Lieu Fees") is on deposit and guaranteed for satisfaction of the BMR requirement established by Condition (r) of the Approved Tenta- tive Map. The sum of $314,640.00 is based upon an in -lieu fee of $65,550.00 per BMR unit. The letter of credit or equivalent financial guarantee shall be in a form acceptable to the City Attorney. 2. Escrow Account. City shall hold the letter of credit or equivalent financial guarantee submitted pursuant to paragraph 1 for the period of this Agreement, or such longer period of time as agreed to in writing by both parties. 3. Off -Site BMR Units. Owner shall pursue development of five (5) BMR units on adjacent property commonly known as 1 Spinnaker on the Bay, and more particularly described as Asses- sor's Parcels 9-100-01, 04, 05; 9-142-13, 24, 26, 53; and 9-010- 17, 21 ("Spinnaker on the Bay Parcel"). The five (5) BMR units to be developed pursuant to this Agreement shall be in addition to any requirement in the San Rafael General Plan 2000 for development of BMR units on the Spinnaker on the Bay Parcel. 4. Time Limit. This Agreement shall be valid for a period of one year from the date of its execution and may be extended annually thereafter for an additional two years, or for such longer period of time as may be agreed to in writing by both parties. Should the Owner fail to secure the appropriate planning/building approvals for all or a portion of the five BMR units which are the subject of this Agreement, and/or if the Spinnaker on the Bay project is not being processed in a diligent fashion toward construction, the City shall provide written notice to Owner that the Agreement shall not be extended. 5. Disposition of In -Lieu Fees. If, within the time period specified in paragraph 4, or any extension thereof, Owner receives all approvals from City for a final subdivision map on the Spinnaker on the Bay parcel, which final map includes provisions for the five BMR units required by this Agreement and condition (r) of the Approved Tentative Map, Owner shall develop the five BMR units and the In -Lieu fees held by City pursuant to this Agreement shall be refunded to Owner. City may hold the In - lieu fees until actual construction of the units is completed or guaranteed. If Owner fails to secure the appropriate approvals for all or a portion of the five BMR units as set forth herein, and within the time limits set forth herein, City may make demand on the security and take possession of all or a portion of the In - Lieu fee proceeds ($65,550.00 per BMR unit) based upon the number of BMR units which are not actually to be constructed, and use said proceeds in accordance with City policy for in -lieu afford- able housing fees. 6. BMR Units. BMR units developed pursuant to this Agreement and condition (r) of the Approved Tentative Map shall be administered in accordance with the buyer selection and resale restriction requirements of the Marin County Housing Authority. 7. Notices. All notices and demands shall be given in writing by registered or certified mail, postage prepaid, and return receipt requested. Notices shall be addressed as appears below for each party, provided that if any party gives notice of a change of name or address, notices to the giver of that notice shall thereafter be given as demanded in that notice. To Owner: Hendricks and Horne P.O. Box 3389 2 To City: City of San Rafael Planning Department San Rafael, CA 94912 P.O. Box 60 San Rafael, CA 94915 8. Attorney_& Fees. If either party files any action or brings any proceeding against the other arising out of this Agreement, or is made a party to any action or proceeding brought by the escrow holder, then as between Owner and City, the prevailing party shall be entitled to recover as an element of its costs of suit, and not as damages, reasonable attorney's fees to be fixed by court. 9. Entire Agreeaent. This Agreement constitutes the entire agreement between the parties respecting the matters set forth and supercedes all prior discussion, negotiations, and agreements whether oral or written. Any amendment to this Agreement, including an oral modification supported by new consideration, must be reduced to writing and signed by both parties before it will be effective. 10. successors and Assigns. This Agreement inures to the benefit of, and is binding on, the parties, their respective heirs, personal representatives, successors and assigns. In Witness Whereof the parties hereto have executed this Agreement on the date and year as follows. OWNER: Dated: Apr i 1 14 , 1989 CITY: Dated:Februar% 21, 1989 Spinnaker Point �a;-tnership, A Calif o` eral partnership City of San Rafael C `'— +9y -Lawrence E. muiryan, [Mayor Attest: J a ?re M. Leoncin , City Clerk 3 (Partnership STATE OF CALIFORNIA COUNTY OF Marin on April 14, M" "'.C. Cara before"Ile Sper"Alh. app -r-4 itinC. Is. i . ..er.6rici,s for proved to _me on the basis of satisfactory evidence) to be one o •d the p�tners of the p+rtnership that executed the within instrument, and ackoo+rledRed to me that such partnership executed the same. WITNESS my hand and official seal. form 3215 (Ca /2.87 51ATt OF CALIFORNIA ) } COUNTY OF MARIN ss. a Notary Public in and for said State. (known to mel �;� C. ��i•:?,'-.L SEAL �? R C HEARD I Lir .�:�� f.'`T1"Y" �UHL(C - CALIFJ^NI4 a t:??.ref•! COUNTY t My rniirm. ez i«s ;UL 10, 19P^ (no a," * 61hCal noanaf wb On this 2Zt day of FEBRUARY , 1989,_before me, JEANNE M. LEONCINI, a Notary Public in and for the said County and State, residing therein, duly commissioned and sworn, personally appeared LAWRENCE E. MULRYAN personally known to me bac_pco>led_to_ale_un..basis-ef-Batas#aE-to-r ev}dence3-to be the Mayor of the City of San Rafael that executed the within document and acknowledged to me that said City of San Rafael did execute the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. OFFICIAL SEAL JEANINE K LEONCINI ' NOTARY PUBLIC - CALIFORNtA * m MARJN COUNTY , M ,^� My Can, Expires Nov 29, 1991 � ISO' 51h Av- P.Q Box F sir F.43e( CA 94915-0000 JEANNE M. �CINCWIN07AR BLIC in and for said County and State. Y EXHIBIT 'A' Based on the County of Marin in -lieu fee formula updated March 1988. A. Criteria: 1. Percent of affordable units required by City is lot of the total project density (48 units x 10% - 4.8 - 5 units) 2. Market Rate Housing Cost: a. Construction cost of an average size 1500 square feet unit @ 80.00/square feet* - $120,000.00 b. Average land/site development Cost/lot-$60,000.00. C. Total cost for construction -$180,000/unit. 3. Affordable Housing Limits: a. Annual income of a 4 person household @ 100% of the median (moderate income) - 1988 H.U.D. limits -$42,500.00 b. Maximum set unit price is $114,450.00 (assumes 30 year loan, lot downpayment, current fixed mortgage interest rate of 9.75%). B. ADnlication 1. Market rate cost/unit: $ 180,000.00 2. Maximum unit cost @100 of median: - 114,450.00 3. Total in -lieu fee/unit: 65,550.00 4. Fee for 4.8 BMR units: x4.8= $314,640.00 *Dollar per square foot figure is an "average• based upon a survey of residential development construction in the County.