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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 Page 1 of 3 141\01\937582.1 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. Page 2 of 3 141\01\937582.1 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 Page 3 of 3 141\01\937582.1 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 141101\937550.1 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 N 141\01\937550.1 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 3 141'101 M7550.1 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: 4 141\014937550.1 (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. 141\01\937550.1 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 D 141'0011937550.1 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 7 141\01M7550.1 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. 8 141\01\937550.1 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, E 141't01'� 937550.1 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 14t01\937550.1 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.