HomeMy WebLinkAboutCC Resolution 13114 (Affordable Housing Grant)RESOLUTION NO. 13114
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL,
APPROVING A PUBLIC IMPROVEMENTS GRANT, AFFORDABLE HOUSING GRANT
AND COOPERATION AGREEMENT AND MAKING CERTAIN FINDINGS RELATED
THERETO
The City Council of the City of San Rafael resolves as follows:
WHEREAS, the City Council of the City of San Rafael ("City") has adopted the
Redevelopment Plan (the "Redevelopment Plan") for the Central San Rafael
Redevelopment Project Area (the "Project Area"); and
WHEREAS, the San Rafael Redevelopment Agency (the "Agency") is engaged in
various activities in its efforts to provide affordable housing and to remove the blighting
conditions that still remain in the Project Area; and
WHEREAS, in keeping with the goals of the Agency to eliminate blight and reduce
physical and economic blight and to provide affordable housing in accordance with the
Redevelopment Plan and Agency's current Implementation Plan (the "Implementation
Plan"), the City and Agency have been working cooperatively regarding the development
of affordable housing and certain public improvements in the Project Area; and
WHEREAS, due to the complexity of the projects and the varying funding
sources, the Agency and the City mutually desire to enter into a Public Improvements
Grant, Affordable Housing Grant and Cooperation Agreement (the "Agreement", a copy
of which is on file with the City Clerk and Agency Secretary, through which the Agency
shall pay for designated portions of, and the City shall conduct: 1) public improvement
projects to alleviate blighting conditions in the Project Area as set forth in the proposed
Agreement; and 2) projects to increase, improve, and preserve the supply of affordable
housing within the Project Area and the territorial jurisdiction of the City, to be funded by
the Agency's Low and Moderate Income Housing Fund (the "Housing Fund"); and
WHEREAS, implementation of the Agreement will assist the Agency to accomplish
the stated goals in the Redevelopment Plan and its current Implementation Plan as
described in the staff report accompanying this Resolution (the "Staff Report"); and
WHEREAS, under the California Redevelopment Law (Health and Safety Code
Section 33100 et seg.; the "Law"), before the Agency can expend money for public
improvements, the Agency and the City must make specified findings pursuant to Health
and Safety Code Section 33445; and
WHEREAS, pursuant to the Law, the Agency is authorized, with the consent of
the City Council to pay for part, or all, of the costs of public improvements that are of
benefit to the Project Area; and
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WHEREAS, no other reasonable means of financing the estimated cost of the
public improvements are available to the City or the community; and
WHEREAS, under the Law, before the Agency can expend money from its
Housing Fund outside the area of the Redevelopment Plan, the Agency and the City
must make specified findings pursuant to Health and Safety Code Section 33334.2(g);
and
WHEREAS, pursuant to State CEQA Guidelines Section 15378(b)(4), approval of
the Agreement is not a project subject to the California Environmental Quality Act
("CEQA"), because the Agreement consists of the creation of a governmental funding
mechanism for various public improvements and affordable housing projects, but does
not commit funds to any specific public improvement or affordable housing project, in
that environmental review required by CEQA shall be completed prior to the
commencement of any public improvement listed in the Agreement; and
WHEREAS, the Staff Report, the Redevelopment Plan, the report to City Council
accompanying the Redevelopment Plan, and the Implementation Plan provide
additional information upon which the findings and actions set forth in this Resolution
are based.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of San
Rafael as follows:
Section 1. All the Recitals above are true and correct and incorporated herein.
Section 2. In compliance with Section 33445 of the Law, the City Council hereby finds
that: (a) the acquisition of the land or the installation or construction of the public
improvements listed in the Agreement that are publicly owned are of benefit to the Project
Area by helping to eliminate blight within the Project Area or providing housing for low- or
moderate -income persons; (b) no other reasonable means of financing the acquisition of
land or the installation or construction of the public improvements listed in the Agreement
that are publicly owned are available to the community; and (c) the appropriation and
payment of funds by the Agency for the acquisition of land or the cost of the public
improvements listed in the Agreement that are publicly owned is consistent with the
Agency's current Implementation Plan. These findings are based on the facts and analysis
in the Staff Report incorporated in this Resolution.
Section 3. In compliance with Section 33334.2(8) of the Law, the City Council hereby finds
that: assistance to the affordable housing projects described in the Agreement and
located outside the Project Area will be of benefit to the Redevelopment Plan, serve major
Redevelopment Plan goals and objectives by maintaining housing available at affordable
cost in the community, thereby decreasing the market pressure on the supply of affordable
housing in the community and the Project Area. This finding is further based on the facts
and analysis in the Staff Report incorporated in this Resolution.
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Section 4. The City Council consents to the Agency expenditures as called for in the
Agreement for the public improvement projects and affordable housing projects listed in
the Agreement, subject to completion of any environmental review required by CEQA prior
to the commencement of any improvement or project listed in the Agreement.
Section 5. The City Council hereby approves the Agreement and authorizes the Interim
City Manager to enter into and execute the Agreement on behalf of the City for the
funding and completion of the projects listed in the Agreement, substantially in the form
on file with the Agency Secretary and the City Clerk, with such revisions as are
reasonably determined necessary by the City signatory, such determination to be
conclusively deemed to have been made by the execution of the Agreement by the City
signatory. The Interim City Manager is authorized to implement the Agreement and take
all further actions and execute all other documents which are necessary or appropriate
to carry out the Agreement.
Section 6. The Interim City Manager is hereby authorized and directed to file Notices of
Exemption with respect to the Agreement in accordance with the applicable provisions
of CEQA.
Section 7. -The Interim City Manager is hereby authorized to take such further actions as
may be necessary or appropriate to carry out the City's obligations pursuant to this
Resolution and the Agreement.
Section 8. The City Clerk shall certify to the adoption of this Resolution.
Section 9. This Resolution shall take effect immediately upon adoption.
I, ESTHER BEIRNE, City 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 City Council held on Tuesday the 22 day of February 2011, by the following vote,
to wit:
AYES:
COUNCILMEMBERS:
Brockbank, Connolly, Heller, Levine & Mayor Boro
NOES:
COUNCILMEMBERS:
None
ABSENT:
COUNCILMEMBERS:
None
a
ESTHER C. BEIRNE, City Clerk
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PUBLIC IMPROVEMENTS GRANT, AFFORDABLE HOUSING GRANT
AND COOPERATION AGREEMENT FOR THE
SAN RAFAEL REDEVELOPMENT PROJECT AREA
This Public Improvements Grant, Affordable Housing Grant and Cooperation
Agreement (the "Agreement") is for purposes of funding: (1) acquisition, design, and
construction of various public improvements owned or to be owned by the City of San
Rafael, a municipal corporation (the "City") and (2) affordable housing projects and
programs to be developed and/or administered by the City; and is entered into as of
February 22, 2011 by and between the City and the San Rafael Redevelopment
Agency, a public body, corporate and public (the "Agency"), on the basis of the following
facts, understandings and intentions of the parties:
RECITALS
A. Pursuant to the California Community Redevelopment Law (Health and
Safety Code Section 33000 et seg.; the "Redevelopment Law"), the City Council of the
City has adopted, and the Agency is responsible for implementing, the Redevelopment
Plan (the "Redevelopment Plan") for the Central San Rafael Redevelopment Project
Area (the "Project Area").
B. To assist in implementing the Redevelopment Plan, the Agency has
adopted a five (5) -year implementation plan (the "Implementation Plan") pursuant to
Section 33490 of the Redevelopment Law.
C. Pursuant to Health and Safety Code Section 33125, the Agency has
authority to execute contracts necessary or convenient to the exercise of its powers.
Further, pursuant to Health and Safety Code Section 33220(e), the City is authorized to
enter into this Agreement to assist the Agency in performing powers and obligations
under the Redevelopment Law.
D. The Agency and the City desire that the Agency will fund and the City will
acquire any necessary land for, and design and construct various elements of public
improvements and facilities owned or to be owned by the City, as more fully set forth in
Exhibit A attached to and incorporated in this Agreement by this reference. Exhibit A in
its entirety is referred to in this Agreement as the "Improvement Plan," and the
improvements listed in the Improvement Plan are referred to individually as a "Public
Improvement Project" and collectively as the "Public Improvement Projects." The
Improvement Plan set forth in Exhibit A includes the current estimated costs of
implementing the Public Improvement Projects.
E. The Public Improvement Projects are provided for in the Redevelopment
Plan, and are consistent with the Implementation Plan. Implementation of the Public
Improvement Projects will benefit the Project Area and will assist in the elimination of
blight in the Project Area and the provision of affordable housing in the community. The
Agency's use of funds as provided in this Agreement is authorized by the
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Redevelopment Law, and the Agency and City Council have made all findings required
under the Redevelopment Law for such use.
F. Pursuant to Health and Safety Code Sections 33334.2 and 33334.3, the
Agency has the obligation to establish a Low and Moderate Income Housing Fund (the
"Housing Fund") and to expend monies in the Housing Fund for the purposes of
increasing, improving, and preserving the community's supply of housing available at
affordable housing cost to low and moderate income households, lower income
households, very low income households, and extremely low income households.
G. The Housing Element of the City's General Plan (the "Housing Element")
includes an assessment of the existing and projected housing needs of the community,
including the City's regional fair share allocation of the regional housing need. The
housing needs assessment in the Housing Element indicates a need in the City for 262
housing units affordable to very low income households (one-half affordable to
extremely low income households), 207 housing units affordable to lower income
households, and 288 housing units affordable to moderate income households.
H. There currently exists within the City 1,316 deed restricted units affordable
to very low, low and moderate income households; including 115 ownership units.
General Plan Policy H-19 requires all new developments include a percentage of
affordable units. Agency staff provides annual monitoring for Agency assisted units and
for units that have ongoing affordability restrictions required by San Rafael General Plan
Policy H-19.
I. The Agency and the City desire that the Agency will contract with the City
to provide Housing Fund monies to the City for the City to utilize to finance Housing
Fund -eligible activities to increase, improve, and preserve the supply of affordable
housing within the area included in the Redevelopment Plan and the territorial
jurisdiction of the City, consistent with the Redevelopment Plan, the Implementation
Plan, and the Housing Element, as they currently exist or as they may be amended from
time to time. The Agency and the City have further determined, based on their analysis
of affordable housing costs, the amount of Housing Fund subsidy necessary to cause
housing units to be available at affordable housing cost to very low, lower, and
moderate income households within the City and, as more fully set forth in Exhibit B
attached to and incorporated in this Agreement by this reference, have calculated the
total amount of Housing Fund monies necessary to provide for the housing needs of
very low income households, lower income households, and moderate income
households indicated in the Housing Element.
J. As required by Health & Safety Code Section 33334.2(g), the City Council
and Agency have found that assistance to low and moderate income housing located
outside the area included in the Redevelopment Plan will be of benefit to the
Redevelopment Plan, serve major Redevelopment Plan goals and objectives by
maintaining housing available at affordable cost in the community, thereby decreasing
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the market pressure on the supply of affordable housing in the community and the
Project Area.
K. The Agency and the City have set forth in Exhibit B attached to and
incorporated in this Agreement by this reference, a list of potential projects and
programs that the City may undertake utilizing funds provided pursuant to this
Agreement. Exhibit B in its entirety is referred to in this Agreement as the "Affordable
Housing Plan" and the projects and programs listed in the Affordable Housing Plan are
referred to individually as an "Affordable Housing Project." The Affordable Housing Plan
set forth in Exhibit B includes the currently estimated costs of implementing the
Affordable Housing Projects.
L. The Affordable Housing Projects are consistent with the Redevelopment
Plan and the Implementation Plan. Implementation of the Affordable Housing Projects
will benefit the Project Area and will assist in the elimination of blight in the Project Area
and the provision of affordable housing in the community. The Agency's and City's use
of funds as provided in this Agreement is authorized by the Redevelopment Law, and
the Agency and City Council have made all findings required under the Redevelopment
Law for such use.
M. Pursuant to State CEQA Guidelines Section 15378(b)(4), approval of the
Agreement is not a project subject to the California Environmental Quality Act ("CEQA"),
because this Agreement consists of the creation of a governmental funding mechanism
for various public improvements and affordable housing projects, but does not commit
funds to any specific public improvement or affordable housing project, in that
environmental review required by CEQA shall be completed prior to the commencement
of any Public Improvement Project listed in the Improvement Plan contained in Exhibit A
and any Affordable Housing Project listed in the Affordable Housing Plan contained in
Exhibit B.
O. By approving and entering into this Agreement, the Agency has pledged a
portion of the tax increment revenue from the Project Area to fund the Affordable
Housing Plan. The obligations set forth in this Agreement are contractual obligations
that, if breached, will subject the parties to damages or other liabilities or remedies.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are acknowledged, the City and the Agency agree as follows:
ARTICLE 1
AGENCY GRANT
Section 1.1 Agencv Grant. Subject to the terms and conditions of this
Agreement, the Agency hereby grants to the City, and the City hereby accepts from the
Agency, a grant (the "Grant") in an amount not to exceed the total amount shown for: 1)
all Public Improvement Projects in the Improvement Plan attached to this Agreement as
Exhibit A (the "Improvement Grant"); and 2) all Affordable Housing Projects in the
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Affordable Housing Plan attached to this Agreement as Exhibit B (the "Housing Grant"),
at the time of execution of this Agreement. The Improvement Grant and the Housing
Grant together constitute the "Maximum Grant Amount," for use by the City to complete
the Public Improvement Projects, as further provided in Article 2, and to complete the
Affordable Housing Projects, as further provided in Article 3.
Section 1.2 Grant Source. The sources of the Grant from the Agency to the City
consist of:
(a) For the Public Improvement Projects:
(1) all funds currently held by the Agency (other than in the
Agency's Housing Fund) and not previously encumbered by binding contract for other
activities, projects, or programs (the "Available Improvement Funds"); and
(2) all future tax increment revenue allocated to, made available to,
or otherwise received by the Agency or any successor pursuant to the Redevelopment
Plan and the Redevelopment Law, to the extent such tax increment revenue: (A) is or
would be required to be provided to the Agency pursuant to the Redevelopment Plan
and the Redevelopment Law in effect as of the date of this Agreement (except for those
tax increment revenues to be deposited in the Housing Fund), and (B) is available to the
Agency or successor after the Agency or successor: 1) makes all necessary annual
payments with respect to then existing debt obligations of the Agency, including, without
limitation, bonded indebtedness, pass-through payments owed to affected taxing
entities under agreement or Sections 33607.5 or 33607.7 of the Redevelopment Law,
written agreements with other persons or entities, deposits to the Agency's or
successor's Housing Fund pursuant to the Redevelopment Law, and any other
statutorily required payment obligations of the Agency; and 2) sets aside a reasonable
amount for Agency or successor administration as mutually determined by the City and
the Agency or successor (collectively, the "Pledged Improvement Funds"); and
(3) All net proceeds of bonded indebtedness or other indebtedness
secured by the Agency's tax increment revenue, except those net proceeds that are
required by the Redevelopment Law to be deposited in the Housing Fund (the
"Improvement Bond Proceeds"); and
(4) All program income received from any source by the Agency or
successor, including, without limitation, land sale proceeds, lease revenues, loan
repayments, except that which is required by the Redevelopment Law in effect as of the
date of this Agreement to be deposited in the Housing Fund (the "Improvement Program
Income").
(5) The Available Improvement Funds, Pledged Improvement
Funds, Improvement Bond Proceeds, and Improvement Program Income together
constitute the Maximum Improvement Grant Amount.
(b) For the Affordable Housing Projects:
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(1) All funds currently held by the Agency in the Agency's Housing
Fund and not previously encumbered by binding contract for other activities, projects, or
programs (the "Available Housing Funds"); and
(2) All future tax increment revenue allocated to, made available to,
or otherwise received by the Agency or any successor, to the extent such tax increment
revenue (1) is or would be required pursuant to the Redevelopment Plan and the
Redevelopment Law in effect as of the date of this Agreement to be deposited in the
Housing Fund, and (2) is available to the Agency or successor after the Agency or
successor makes all necessary annual payments required to be made with Housing
Fund monies with respect to then existing debt obligations of the Agency, including,
without limitation, bonded indebtedness and written agreements with other persons or
entities (the "Pledged Housing Funds"); and
(3) All net proceeds of bonded indebtedness or other indebtedness
that are required by the Redevelopment Law to be deposited in the Housing Fund (the
"Housing Bond Proceeds"); and
(4) All program income received from any source by the Agency or
successor that is required by the Redevelopment Law in effect as of the date of this
Agreement to be deposited in the Housing Fund, including, without limitation, land sale
proceeds, lease revenues, loan repayments, repayment of funds suspended pursuant to
Health and Safety Code Section 33334.2(k) or borrowed from the Housing Fund
pursuant to Health and Safety Code Section 33690(c) or 33690.5(c), and amounts paid
to eliminate a deficit in Housing Fund deposits pursuant to the plan described in Health
and Safety Code Section 33334.6(g) (the "Housing Program Income").
(5) The Available Housing Funds, Pledged Housing Funds,
Housing Bond Proceeds, and Housing Program Income together constitute the
Maximum Housing Grant Amount.
In no event shall the sum of the Maximum Improvement Grant Amount and the
Maximum Housing Grant Amount exceed the Maximum Grant Amount.
As used in this Agreement, "tax increment revenue" means and includes taxes
allocated to, or made available to, or otherwise received by the Agency or a successor
pursuant to Health and Safety Code Section 33670 et seg. or other provision of the
Redevelopment Law, or pursuant to any applicable constitutional provision, statute, or
other provision of law now existing or adopted in the future to pay the debts and
obligations of the Agency.
As used in this Agreement, "successor" includes any lawful successor of the
Agency, and/or any lawful successor to any powers and rights of the Agency, pursuant
to any applicable constitutional provision, statute or other provision of law now existing
or adopted in the future. All provisions of this Agreement that are applicable to the
Agency are applicable to any successor.
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Section 1.3 Pavment Procedure. The Agency shall pay the Available
Improvement Funds and the Available Housing Funds to the City within ten (10) days of
the date of this Agreement. The Agency shall pay the Pledged Improvement Funds and
Pledged Housing Funds to the City within ten (10) days after receipt of each installment
of tax increment revenue in an amount equal to the portion of such tax increment
revenue constituting Pledged Improvement Funds and Pledged Housing Funds,
respectively. The Agency shall pay the Improvement Bond Proceeds, Improvement
Program Income, Housing Bond Proceeds, and Housing Program Income to the City
within ten (10) days after receipt of any such funds. Until needed to fund a Public
Improvement Project or Affordable Housing Project, the City shall invest all Grant funds
received from the Agency in the Local Agency Investment Fund or other comparable
investment vehicle, and shall apply all interest earned thereon toward the cost of the
Public Improvement Projects and Affordable Housing Projects, as appropriate. Any
Grant funds held by or for the benefit of the City at the earlier of (a) completion of and
payment for all of the Public Improvement Projects; or (b) completion of and payment
for all of the Affordable Housing Projects; or (c) the Plan Effectiveness Deadline (as
defined in Section 2.1) shall be promptly reimbursed by the City to the Agency, and may
thereafter be used by the Agency free of any obligation under this Agreement.
Section 1.4 Indebtedness of the Aaencv. The obligation of the Agency to pay
the Grant funds from the sources set forth in Section 1.2 to the City pursuant to this
Agreement shall constitute an indebtedness of the Agency incurred in carrying out the
Redevelopment Plan and a pledge of tax increment revenue received by the Agency or
successor from the area of the Redevelopment Plan to repay such indebtedness under
the provisions of Article XVI, Section 16 of the Constitution of the State of California, the
Redevelopment Law, and the Redevelopment Plan, or under any applicable
constitutional provision, statute, or other provision of law now existing or adopted in the
future.
Section 1.5 Subordination. The parties agree that the obligation of the Agency
to make payments pursuant to this Agreement is subordinate to: (a) any obligation of
the Agency to pay debt service on tax increment bonds, or any other loans or
agreements, heretofore or hereafter issued and secured by a pledge of and a lien upon
tax increment revenue generated by the Agency in the area included in the
Redevelopment Plan; and (b) any pass-through payment obligation to affected taxing
entities.
ARTICLE 2
COMPLETION OF PUBLIC IMPROVEMENT PROJECTS
Section 2.1 Use of Improvement Grant. The City shall use the Improvement
Grant exclusively for the completion of the Public Improvement Projects in accordance
with the terms and conditions of this Agreement. Among other activities, the City may
use the Improvement Grant to pay costs of land acquisition, relocation, demolition, site
preparation and remediation, design, and construction of the Public Improvement
Projects, and reasonable staff, consultant, and other administrative costs in connection
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therewith. The City shall undertake the Public Improvement Projects in accordance with
all applicable laws and regulations, including without limitation, laws and regulations
related to competitive bidding of public works projects, payment of prevailing wages,
non-discrimination, and the use of tax-exempt bond proceeds, if and to the extent such
tax-exempt bond proceeds constitute a portion of the Improvement Grant funds. The
City shall.use the Improvement Grant funds for completion of the various Public
Improvement Projects by not later than the deadline for effectiveness of the
Redevelopment Plan (the "Plan Effectiveness Deadline"), as set forth in the
Redevelopment Plan.
Section 2.2 Consultation; Modification of Improvement Plan,. The Agency and
the City shall confer periodically to establish priorities and timing for funding and
completion of the various Public Improvement Projects, to review the scope and design
of each Public Improvement Project, and to determine any mutually acceptable
modifications in the cost estimates and budgets for the various Public Improvement
Projects. The City and Agency may modify the Improvement Plan from time to time: to
provide for the use of additional federal, state and local funds; to account for
unexpected revenues, whether greater or lesser; to modify, add, or delete a Public
Improvement Project from the Improvement Plan; to modify the cost estimate for
individual Public Improvement Projects; to maintain consistency with the City's General
Plan or the Redevelopment Plan; or to take into consideration unforeseen
circumstances, including without limitation circumstances that may come to light as a
result of subsequent environmental review required by CEQA, as further described in
Section 4.1. The Improvement Plan may be modified by the City Manager on behalf of
the City and the Executive Director on behalf of the Agency; provided, however, in no
event shall the total Improvement Grant to be paid by the Agency to the City exceed the
Maximum Improvement Grant Amount without a formal amendment of this Agreement
approved by the City Council and the Agency Board; and, provided further, however,
that any addition of a Public Improvement Project to the Improvement Plan shall be
conditioned upon the making of all required Redevelopment Law findings and CEQA
findings by the City Council and the Agency Board in their policy discretion.
Section 2.3 Onaoina Citv Obligations. Following completion, the City shall be
responsible for causing the operation and maintenance of each Public Improvement
Project in accordance with City policies and standards for such improvements then in
effect and as amended from time to time. The Agency's grant and the City's acceptance
of the Improvement Grant shall not imply any ownership or responsibility for the Public
Improvement Projects by the Agency, and the City shall retain any and all responsibility
and liability for them.
ARTICLE 3
COMPLETION OF AFFORDABLE HOUSING PROJECTS
Section 3.1 Use of Housina Grant. The City shall use the Housing Grant
exclusively for the purposes of increasing, improving, and preserving the community's
supply of housing available at affordable housing cost to low and moderate income
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households, lower income households, very low income households, and extremely low
income households in accordance with the requirements of the Redevelopment Law
and the Affordable Housing Plan and the terms and conditions of this Agreement. The
City may use the Housing Grant to pay any costs which are eligible Housing Fund costs
pursuant to Health and Safety Code Section 33334.2 et seq, including without limitation
eligible costs of the Affordable Housing Projects shown in the Affordable Housing Plan
and reasonable staff, consultant and other administrative costs in connection therewith.
The City shall expend the Housing Grant funds and undertake the Affordable Housing
Plan in accordance with all applicable laws and regulations, including without limitation,
laws and regulations related to the permissible uses of Housing Fund monies,
monitoring of housing assisted with Housing Funds, statutorily required findings by the
Agency Board and City Council, where applicable, prior to expenditures of Housing
Funds, payment of prevailing wages (to the extent applicable), non-discrimination, and
all applicable requirements of the Redevelopment Law. The City shall use the Housing
Grant funds for the various Affordable Housing Projects by not later than the Plan
Effectiveness Deadline as set forth in the Redevelopment Plan.
Section 3.2 Consultation; Modification of Improvement Plan. The Agency and
the City shall confer periodically to establish priorities and timing for funding and
completion of the various Affordable Housing Projects, to review the scope and design
of each Affordable Housing Project, and to determine any mutually acceptable
modifications in the cost estimates and budgets for the various Affordable Housing
Projects. The City and Agency may modify the Affordable Housing Plan from time to
time: to provide for the use of additional federal, state and local funds; to account for
unexpected revenues, whether greater or lesser; to modify, add, or delete an Affordable
Housing Project from the Affordable Housing Plan; to modify the cost estimate for
individual Affordable Housing Projects; to maintain consistency with the City's General
Plan or the Redevelopment Plan; or to take into consideration unforeseen
circumstances, including without limitation circumstances that may come to light as a
result of subsequent environmental review required by CEQA, as further described in
Section 4.1. The Affordable Housing Plan may be modified by the City Manager on
behalf of the City and the Executive Director on behalf of the Agency; provided,
however, in no event shall the total Housing Grant to be paid by the Agency to the City
exceed the Maximum Housing Grant Amount without a formal amendment of this
Agreement approved by the City Council the Agency Board; and, provided further,
however, that any addition of any Affordable Housing Project to the Affordable Housing
Plan shall be conditioned upon the making of all required Redevelopment Law findings
and CEQA findings by the City Council and the Agency Board in their policy discretion.
Section 3.3 Ongoing Citv Obligations. The City shall be responsible for
ongoing administration of the Housing Funds comprising the Housing Grant, including
any required monitoring of Affordable Housing Projects and required reporting to the
State of California. The Agency's grant and the City's acceptance of the Housing Grant
shall not imply any ownership or responsibility for the Affordable Housing Projects by
the Agency, and the City shall retain any and all responsibility and liability for them.
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ARTICLE 4
GENERAL PROVISIONS
Section 4.1 CEQA Review. Prior to the approval of, use of Grant funds for, and
commencement of work on any Public Improvement Project listed in the Improvement
Plan, or any Affordable Housing Project listed in the Affordable Housing Plan (other
than preliminary feasibility work that is exempt from the requirements of CEQA), all
necessary environmental review required by CEQA shall be completed. All Public
Improvement Projects and Affordable Housing Projects to be funded with Grant funds
from the Agency pursuant to this Agreement must be consistent with CEQA. This
Agreement in no way limits the discretion of the Planning Commission, the Agency, and
City Council in completing environmental review of the Public Improvement Projects and
Affordable Housing Projects.
Section 4.2 Indemnitv. The City shall indemnify, defend, and hold the Agency,
its officers, agents, and employees, harmless against all claims, demands, damages,
losses, costs, expenses, including without limitation, attorneys' fees and costs of
litigation, or liabilities made against them which arise out of, or in connection with, the
construction or failure of the Public Improvement Projects and Affordable Housing
Projects; provided, however, that this indemnity shall not extend to any claim arising
solely from the Agency's negligence or the Agency's negligent failure to perform its
obligations under this Agreement.
Section 4.3 Non-Liabilitv of Officials. No member, official, employee or agent of
the Agency shall be personally liable to the City, or any successor in interest, in the
event of any default or breach by the Agency for any amount which may become due to
the City or successor or on any obligation under the terms of this Agreement. No
member, official, employee or agent of the City shall be personally liable to Agency, or
any successor in interest, in the event of any default or breach by the City for any
amount which may become due to the Agency or successor or on any obligation under
the terms of this Agreement.
Section 4.4 Actions of the Parties. Except as otherwise provided in this
Agreement, whenever this Agreement calls for or permits a parry's approval, consent, or
waiver, the written approval, consent, or waiver of the Agency's Executive Director and
the City's City Manager (or their respective designees) shall constitute the approval,
consent, or waiver of the Agency and the City, respectively, without further authorization
required from the governing board of the party; provided, however, that the person
vested with such authority may seek such further advice or authorization from the
applicable governing board when she/he deems it appropriate.
Section 4.5 Nondiscrimination.
(a) In Performance of Aareement. The City and its contractors,
subcontractors, agents, and employees shall not, because of the race, color, creed,
religion, sex, sexual orientation, marital status, national origin, ancestry, familial status,
source of income, age, or disability of any person, refuse to hire or employ the person,
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or refuse to select the person for a training program leading to employment, or bar or
discharge the person from employment or from a training program leading to
employment, or discriminate against the person in compensation or in terms, conditions
or privileges of employment with respect to performance of this Agreement.
(b) With Respect to Use of the Public Improvements Proiects and
Affordable Housina Proiects. The City covenants by and for itself and its successors
and assigns that there shall be no discrimination against or segregation of a person or
of a group of persons on account of race, color, creed, religion, sex, sexual orientation,
marital status, national origin, ancestry, familial status, source of income, age, or
disability in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of
the Public Improvement Projects and the Affordable Housing Projects.
Section 4.6 No Third Partv Beneficiaries. No person or entity other than the
Agency, the City and their permitted successors and assigns, shall have any right of
action under this Agreement.
Section 4.7 State Law. This Agreement, and the rights and obligations of the
parties hereto, shall be construed and enforced in accordance with the laws of the State
of California.
Section 4.8 Records. The City shall maintain complete and accurate financial
accounts, documents and records with respect to the performance of its obligations
under this Agreement, and shall make same available to the Agency's authorized
agents for copying and auditing upon reasonable prior notice. Such accounts,
documents and records shall be retained by the City for the longer of two (2) years
following completion of the applicable Public Improvement Project or Affordable
Housing Project, or for whatever retention period the City has designated for such
documents.
Section 4.9 Inspection of Documents. During the regular office hours and upon
reasonable prior notice, the City and the Agency, by their duly authorized
representatives, shall have the right to inspect and make copies of any books, records
or reports of the other party pertaining to this Agreement.
Section 4.10 Additional Acts. The parties each agree to take such other and
additional actions and execute and deliver such other and additional documents as may
be reasonably requested by the other party for purposes of consummating the
transactions contemplated in this Agreement.
Section 4.11 Litigation Regarding Agreement Validitv. In the event litigation is
initiated attacking the validity of this Agreement, each party shall in good faith defend
and seek to uphold the Agreement.
Section 4.12 Validitv of Agreement. If any provisions of this Agreement, or the
application thereof to any person, party, transaction, or circumstance, is held invalid, the
remainder of this Agreement, or the application of such provision to other persons,
parties, transactions, or circumstances, shall not be affected thereby.
10
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Section 4.13 Entire Agreement: Modification and Amendment. This Agreement
contains all of the agreements and understandings of the parties pertaining to the
subject matter contained herein and supercedes all prior or contemporaneous
agreements, representations and understandings of the parties. Except as otherwise
provided in Section 2.2 and Section 3.2, this Agreement cannot be amended or
modified except by written agreement of the parties.
Section 4.14 Defaults and Remedies. If either party breaches any other material
provision of this Agreement, the other party shall first notify the breaching party in
writing of the purported breach or failure, giving the breaching party thirty (30) days from
receipt of such notice to cure or, if cure cannot be accomplished within thirty (30) days,
to commence to cure such breach, failure, or act. In the event the breaching party does
not then so cure within such thirty (30) days, or if the breach or failure is of such a
nature that it cannot be cured within thirty (30) days, the breaching party fails to
commence to cure within such thirty (30) days and thereafter diligently complete such
cure within a reasonable time thereafter but in no event later than one hundred twenty
(120) days, then the non -breaching party shall be afforded all of its rights at law or in
equity, by taking all or any of the following remedies: (a) terminating in writing this
Agreement (provided, however, that the indemnification provisions of this Agreement
shall survive such termination); and (b) prosecuting an action for damages or specific
performance.
Section 4.15 Attornevs' Fees. In any action which a party brings to enforce its
rights hereunder, the unsuccessful party shall pay all costs incurred by the prevailing
party, including reasonable attorneys' fees.
Section 4.16 Binding Upon Successors. This Agreement shall be binding upon
and inure to the benefit of the heirs, administrators, executors, successors in interest
and assigns of each of the parties to this Agreement, whether by agreement or
operation of law, and including, without limitation, any successor to the Agency. Any
reference in this Agreement to a specifically named party shall be deemed to apply to
any successor, heir, administrator, executor or assign of such party who has acquired
an interest in compliance with the terms of this Agreement, or under law.
Section 4.18 Time of the Essence. Time is of the essence in the performance of
all duties and obligations under this Agreement.
REMAINDER OF PAGE INTENTIONALLY BLANK
11
14tO -937550.1
IN WITNESS WHEREOF, this Agreement has been executed as of the date set
forth in the opening paragraph of this Agreement.
novA prove//d�� as to Form:
(A-M�%
Agency Counsel 1 l
9 Y
Approved as to Form:
City Attorney
Attest:
City Clerk
SAN RAFAEL REDEVELOPMENT
AGENCY, a public body, corporate and public
By• 'x �
Nan'+... r ?_
Its:
CITY OF SAN RAFAEL, a municipal
corporation
By: ,
Name:
Its:
12
14V01\937550.1
.-L--Tti
EXHIBIT A
IMPROVEMENT PLAN
The Improvement Plan consists of the acquisition and improvement of land for, design,
construction, and related activities to complete the following Public Improvement
Projects as shown in the Agency's Implementation Plan:
Public Improvements Estimated Cost
Parking & Street Improvements $ 540,000
Economic Development Potential Sites $ 800,000
Former Corporation Yard Clean Up $ 250,000
Economic Development Planning, Design $ 740,000
and Coordination
Circulation Improvements $ 1,212,810
Downtown Beautification $ 100,000
PUBLIC IMPROVEMENT GRANT $ 3,642,810
:1
141 `.01 ti 937550.1
EXHIBIT B
AFFORDABLE HOUSING PLAN
Affordable Housing Project Estimated Cost
2011-2015
Affordable Housing Assistance
Affordable Housing Assistance including: Housing rehabilitation
$5,765,319
assistance, Assistance to new housing & mixed use construction,
Acquisition of affordable housing covenants, and Acquisition and
rehabilitation of existing multifamily housing
Affordable Housing Programs
• First-time homebuyer and down payment assistance (low income
$280,000
units) ($20,000 annually) (Resolution 2004-04 3/1/2004)
• Contract administration of the affordable ownership housing program
$ 1,540,000
including legal fees (115 units in 2010) ($110,000 annually)
• Bond debt service used to fund housing set aside for pre -1977 plans
$4,087,580
HSC 33334.6 ($291,970 annually)
• City of San Rafael General Plan programs H-4b,H-5b, d, H -7a, b, H-
$3,150,000
8b, H-9b,c, H10-b,c,d, H-11 d, e, H-1 6a, H-1 8a, H-1 9a, H2Oa, b,c, H-
18e,h,H-19, H-24 and rental affordable housing program, consistent
with Redevelopment and Five Year Plan
HOUSING GRANT $14,822,899
B-2
141\01\937550.1
CITY OF
SAN RAFAEL
AGENDA ITEM NO.: 16
MEETING DATE: February 22, 2011
REPORT TO MAYOR AND CITY COUNCIL
SUBJECT: A Resolution of the City Council of the City of San Rafael, Approving a
Public Improvements Grant, Affordable Housing Grant and Cooperation Agreement
and Making Certain Findings Related Thereto
SUBMITTED BY: J I A/VL �J�'�-p', APPROVED BY: -_
Nancy Mackle, Economi Development Director Jim Schutz, In, rim City anager
RECOMMENDATION: Staff recommends that the City Council adopt the attached resolution
approving a Public Improvements Grant, Affordable Housing Grant and Cooperation Agreement
with the San Rafael Redevelopment Agency to undertake public improvements contained in the
Redevelopment Agency Implementation Plan within the Redevelopment Project Area and expend
affordable housing funds within the Redevelopment Project Area and within the City of San Rafael.
BACKGROUND: The Redevelopment Agency desires to enter into a Public Improvements
Grant, Affordable Housing Grant and Cooperation Agreement ("Grant Agreement") with the City
of San Rafael for public improvements and affordable housing. California Redevelopment Law,
Health and Safety Code Section 33334.2(g), requires that the City Council make findings and
approve the use of Agency affordable housing funds when the funds will be used on projects
located outside of the Central San Rafael Redevelopment Project Area.
ANALYSIS: The Grant Agreement provides for the City to expend funds transferred from the
San Rafael Redevelopment Agency within the Project Area for public improvements.
The Grant Agreement further provides for the City to expend affordable housing funds
transferred from the San Rafael Redevelopment Agency. Pursuant to the Agreement and State
Law, the affordable housing funds can be expended within the Redevelopment Project Area.
Affordable housing funds may also be spent within the boundaries of the City of San Rafael with
City Council approval.
FOR CITY CLERK ONLY
File No.: I 1-1(:;'
City Council Meeting:
Disposition: !:
Page 2
FISCAL IMPACT: The Grant Agreement requires the City of San Rafael to expend funds
transferred by the Agency on public improvements shown in the Agency's Implementation Plan.
The Grant Agreement obligates the Agency to transfer existing and future affordable housing
funds to the City of San Rafael. Pursuant to the Grant Agreement, the City is required to use
those funds for allowable affordable housing expenditures within the Project Area boundaries
and within the City of San Rafael.
ACTION REQUIRED: Adopt the attached resolution.