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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 COPYo�,o �, n 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. 141\01\302653.1 b0i 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. 2 141\01\302653.1 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 3