HomeMy WebLinkAboutCC Resolution 11712 (Buckelew Grant Agreement)CITY COUNCIL OF THE CITY OF SAN RAFAEL
RESOLUTION NO. 11712
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
APPROVING THE MODIFICATION OF A GRANT AGREEMENT BY THE SAN
RAFAEL REDEVELOPMENT AGENCY TO BUCKELEW COMMUNITY HOUSING
DEVELOPMENT ORGANIZATION, INC. FOR AN ADDITIONAL $120,000 AND
MAKING FINDINGS AND APPROVALS PURSUANT TO THE CALIFORNIA
REDEVELOPMENT LAW IN CONNECTION WITH THE UTILIZATION OF
AGENCY LOW AND MODERATE INCOME HOUSING FUNDS OUTSIDE THE
CENTRAL SAN RAFAEL REDEVELOPMENT PROJECT AREA
(1103 LINCOLN AVENUE)
WHEREAS, the City Council (the "City Council") of the City of San Rafael (the "City")
has adopted and amended, from time to time, 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 responsible for
administering the Redevelopment Plan to cause redevelopment of the Project Area, including the
provision of housing available at affordable housing cost to low and moderate income
households; and
WHEREAS, Buckelew Community Housing Development Organization, Inc. a
California nonprofit public benefit corporation (the "Developer") has purchased certain real
property located outside the Project Area at 1103 Lincoln Avenue (the "Property"). The Property
is improved with a fourteen (14) unit residential building which the Developer intends to
rehabilitate and rent the units at affordable housing cost to very low income persons (the
"Development"); and
WHEREAS, the Agency has provided a grant to the Developer (the "Agency Grant") to
finance acquisition of the Property by the Developer; and
WHEREAS, the Agency desires to modify the grant to the Developer to provide
additional funding to allow the project to proceed; and
WHEREAS, This additional funding is necessary due to the reduction of project funding
from other sources; and
WHEREAS, it is proposed that the Agency increase the Agency Grant by One Hundred and
Twenty Thousand Dollars ($120,000) from the Agency's Low and Moderate Income Housing
Fund (the "Housing Fund"); and
WHEREAS, Health and Safety Code Section 33334.2(g) authorizes expenditure of
Housing Fund monies outside the Project Area upon a finding by the Agency and the City
Council that such use will be of benefit to the Project Area; and
WHEREAS, the Development will benefit the Project Area and serve major
Redevelopment Plan goals and objectives by increasing the amount of housing available at
affordable housing cost in the community, thereby decreasing the market pressure on the supply
of affordable housing in the community and the Project Area, by enhancing the economic
viability of business within the Project Area by providing housing near the Project Area for
people who will patronize businesses in the Project Area, and by alleviating blight in an area in
close proximity to the Project Area; and
WHEREAS, The California Environmental Quality Act (Public Resources Code Sections
21000 et sec .) ("CEQA") imposes no conditions on the City's consideration and approval of this
Agreement, because the project undertaken pursuant to this Agreement is the rehabilitation of
existing improvements and such projects are exempt from CEQA requirements under the
categorical exemption set forth in 14 CCR Section 15301; and
WHEREAS, by staff report accompanying this Resolution and incorporated into this
Resolution by this reference (the "Staff Report"), the City Council has been provided with
additional information upon which the findings and actions set forth in this Resolution are based.
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby finds and
determines that the above recitals are true and correct and have served as the basis, in part, for the
findings and actions of the City Council set forth below.
BE IT FURTHER RESOLVED that, based on information and analysis set forth in the
above Recitals and contained in the Staff Report accompanying this Resolution, the City Council
hereby finds and determines pursuant to Health and Safety Code Section 33334.2(g) that the use
of moneys from the Housing Fund to assist the Development will be of benefit to the Project
Area and the program of redevelopment pursuant to the Redevelopment Plan.
BE IT FURTHER RESOLVED that the City Council hereby approves allocation of One
Hundred and Twenty Thousand Dollars ($120,000) of Housing Fund monies to fund the Agency
Grant.
BE IT FURTHER RESOLVED that this Resolution shall take immediate effect upon
adoption.
I, JEANNE M. LEONCINI, 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 the 7th day of March, 2005, by the following vote, to wit:
AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips & Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: None
JE . LEONCI I, City Clerk
CITY OF AGENDA ITEM NO.: 8
SAN RAFAEL MEETING DATE: March 7, 2005
REPORT TO MAYOR AND CITY COUNCIL
SUBJECT: A RESOLUTION APPROVING THE MODIFICATION OF A GRANT
AGREEMENT BY THE REDEVELOPMENT AGENCY TO BUCKELEW COMMUNITY
HOUSING DEVELOPMENT ORGANIZATION, INC. FOR AN ADDITIONAL $120,000
AND MAKING FINDINGS AND APPROVALS PURSUANT TO THE CALIFORNIA
REDEVELOPMENT LAW IN CONNECTION WITH THE UTLIZATION OF AGENCY
LOW AND MODERATE INCOME HOUSING FUNDS OUTSIDE THE CENTRAL SAN
RAFAEL REDEVELOPMENT PROJECT AREA (1103 Lincoln Avenue)
SUBMITTED BY: 0 `4"-u% 6 ROVED BY: /<- 1;;�i!
Nancy Mackle, Economic Development Director Rod Gould, Executive Director
RECOMMENDATION: Staff recommends that the City Council adopt the attached resolution
approving the modification of a grant by the Redevelopment Agency to Buckelew Community
Housing Development Organization, Inc.
BACKGROUND: The California Redevelopment Law, Health and Safety Code Section 33334.2
(g), requires the City Council make findings and approve the Agency's use of low and moderate
income housing funds on projects that are located outside of the Central San Rafael
Redevelopment Project Area.
ANALYSIS: The City Council resolution is required by the Health and Safety Code to
implement the modification of the Agency's grant to Buckelew Community Housing
Development Organization, Inc. for the acquisition of 1103 Lincoln Avenue.
FISCAL IMPACT: None to the City, the additional $120,000 grant will be funded by the
Redevelopment Agency's Low and Moderate Income Housing Fund.
ACTION REQUIRED: Adopt the attached resolution.
FOR CITY CLERK ONLY
File No.:
City Council Meeting:
Disposition:
SAN RAFAEL REDEVELOPMENT AGENCY
RESOLUTION NO. 2005-05
MOVED BY: MEMBER MILLER SECONDED BY: MEMBER PHILLIPS
A RESOLUTION APPROVING THE MODIFICATION OF A GRANT
AGREEMENT WITH BUCKELEW COMMUNITY HOUSING
DEVELOPMENT ORGANIZATION, INC. FOR AN ADDITIONAL $120,000
(1103 LINCOLN AVENUE).
WHEREAS, the San Rafael Redevelopment Agency (the "Agency") has set objectives for
affordable housing in accordance with the Amended and Restated Redevelopment Plan (the "Agency
Plan") for the Central San Rafael Redevelopment Project Area ("Project Area"); and
WHEREAS, in order to serve the objectives of the Agency Plan, the Agency desires to assist
in the rehabilitation of existing multifamily housing and in maintaining affordable housing; and
WHEREAS, the Agency has established a Low and Moderate Income Housing Fund (the
"Fund") pursuant to Health and Safety Code Section 33334.3; and
WHEREAS, Buckelew Community Housing Development Organization, Inc. a California
nonprofit public benefit corporation (the "Developer") purchased certain real property located outside
the Project Area at 1103 Lincoln Avenue (the "Property"). The Property is improved with a twelve
(12) unit residential building which the Developer intends to rehabilitate and rent the units at
affordable housing cost to low income persons (the "Development"); and
WHEREAS, the Agency approved an expenditure of $360,000 of Agency low and moderate
Income housing funds for this project;
WHEREAS, the Agency entered into a grant agreement with the Developer that restricted the
rents in all of the units to be affordable to low income persons; and
WHEREAS, other funders of the Development require that the rents on the units be affordable
to very low-income persons. The Developer planned to utilize Section 8 rental vouchers to achieve
this objective; and
WHEREAS, Section 8 vouchers cannot be utilized for this Development and therefore
additional funds are required for the rents to be affordable to very low income persons; and
WHEREAS, the Agency desires to have the rents in the Development be affordable to very
low income persons; and
WHEREAS, it is proposed that the Agency fund the additional grant in the amount of One
Hundred and Twenty Thousand Dollars ($120,000) from the Agency's Low and Moderate Income
Housing Fund (the "Housing Fund"); and
WHEREAS, Health and Safety Code Section 33334.2(g) authorizes expenditure of Housing
Fund monies outside the Project Area upon a finding by the Agency and the City Council that such use
will be of benefit to the Project Area; and
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WHEREAS, the Development will benefit the Project Area and serve major Redevelopment Plan
goals and objectives by increasing the amount of housing available at affordable housing cost in the
community, thereby decreasing the market pressure on the supply of affordable housing in the
community and the Project Area, by enhancing the economic viability of business within the Project
Area by providing housing near the Project Area for people who will patronize businesses in the
Project Area, and by alleviating blight in an area in close proximity to the Project Area; and
WHEREAS, the Agency desires to assist Buckelew Community Housing Development
Organization, Inc. by amending the grant agreement to provide additional funds in the amount of One
Hundred Twenty Thousand Dollars ($120,000) (the "Amended Grant") from the Fund;
NOW, THEREFORE, IT IS HEREBY RESOLVED as follows:
Section 1. The Agency Board hereby approves allocating One Hundred and Twenty Thousand
Dollars ($120,000) from the Fund to fund the Amended Grant to Buckelew Community Housing
Development Organization, Inc as a lawful expenditure of the Fund under the California Community
Redevelopment Law, Health and Safety Code Section 33000.
Section 2. The Agency Board hereby authorizes the Economic Development Director to execute on
behalf of the Agency the Grant modification, in a form to be approved by Agency Counsel, and to take
all actions necessary to provide and implement the Agency Grant modification.
I, JEANNE M. LEONCINI, Agency Secretary of the San Rafael Redevelopment Agency,
hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular
meeting of the members of said Agency held on the 7th day of March, 2005, by the following vote, to
wit:
AYES: MEMBERS: Cohen, Heller, Miller, Phillips and Chairman Boro
NOES: MEMBERS: None
ABSENT: MEMBERS: None
ABSTAIN: MEMBERS: None
JEA�M. LEONCINI, Agency Secretary
1103 Lincoln Sources of Funding Analysis
Additional Funding
Sources
September -04
Needed
First Federal Loan
1186000
0
State MHP
1200000
745000
San Rafael
360000
120000
HOME
350000
120000
MCF
0
200000
Buckelew
71000
1000
Total
3167000
1186000
17 -Feb -05
Total
0
1945000
480000
470000
200000
72000
3167000
ATTACHMENT A
FIRST AMENDMENT TO
COVENANT AND GRANT AGREEMENT
This First Amendment to Covenant and Grant Agreement (this "First Amendment") is
entered as of this first day of December, 2005 by and between the San Rafael Redevelopment
Agency, a public body, corporate and politic (the "Agency") and Buckelew Community Housing
Development Organization, Inc., a California nonprofit public benefit corporation (the
"Grantee"), with reference to the following facts:
RECITALS
A. The Agency and Grantee entered into a Covenant and Grant Agreement dated as of
December 1, 2003 (the "Grant Agreement") pursuant to which, the Agency agreed to provide
Grantee Three Hundred Sixty Thousand Dollars ($360,000) in financial assistance (the "Agency
Grant") for the acquisition of certain real property located at 1103 Lincoln Avenue, San Rafael,
California (the "Property"), improved with twelve (12) low rent residential units. Capitalized
terms used in this Agreement and not amended or newly defined below, shall have the same
meaning as set forth in the Grant Agreement.
B. By Resolution No. 2005- 05 the Agency Board has approved an additional One
Hundred Twenty Thousand Dollars ($120,000) in Agency Redevelopment Low and Moderate
Income Housing Fund monies to be granted to Grantee to assist in the acquisition of the Property
and rehabilitation of the Improvements (the "Grant Increase").
C. The Agency and the Grantee now desire to modify the Grant Agreement to reflect the
Grant Increase.
NOW, THEREFORE, in consideration of the mutual promises and agreements set forth
below and for good and valuable consideration the receipt of which is hereby acknowledged, the
Agency and Grantee agree as follows:
1. Amendment of Grant Agreement. The Grant Agreement is hereby amended as
follows:
a. Aaencv Grant Amount. Sections 1.1(d) and 2.1 of the Grant Agreement
are amended to change the Amount of the Agency Grant from Three Hundred Sixty Thousand
Dollars ($360,000) to Four Hundred Eighty Thousand Dollars ($480,000).
b. Use of Grant Increase funds. Section 2.2 of the Grant Agreement is
amended to allow the Grantee to use the Agency Grant funds for the rehabilitation of the
Improvements.
C. Construction Reauirements. The Grantee shall comply with all the
construction requirements in the Grant Agreement in the rehabilitation of the Improvements.
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2. Conflict. To the extent that the terms of this First Amendment conflict with those
of the Grant Agreement, this First Amendment shall prevail.
3. Counterparts. This First Amendment may be signed in counterparts, each of which
shall constitute one and the same instrument.
4. Successors and Assigns. This First Amendment shall be binding on and inure to the
benefit of the legal representatives, heirs, successors and assigns of the parties.
5. California Law. This First Amendment shall be governed by and construed in
accordance with the laws of the State of California.
6. Effective Date. This First Amendment shall be effective as of the date first set forth
above.
7. Full Force and Effect. Except as set forth in this First Amendment, the Grant
Agreement has not been amended and is in full force and effect.
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IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date
first set forth above.
AGENCY: SAN RAFAEL REDEVELOPMENT AGENCY,
a public body, corporate and politic
By:
Its:
GRANTEE: BUCKELEW COIVIlVIUNITY HOUSING
DEVELOPMENT ORGANIZATION, INC.
a California nonprofit public benefit corporation
By: II�,�
Its: �� `Pi�.Q \A o- �hi /�( k
Its:
141\01\302653.1
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