No preview available
HomeMy WebLinkAboutCC Resolution 15286 (City-Owned Property as Exempt Surplus Land, and Affordable Housing Development Exclusive Negotiating Agreement for City Property)4873-5218-5190 v5 RESOLUTION 15286 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DETERMINING AND DECLARING THE CITY-OWNED SITE LOCATED AT 519 4TH STREET (APN 014-123-06) TO BE EXEMPT SURPLUS LAND PURSUANT TO GOVERNMENT CODE SECTION 54221(f)(1)(A), AND AUTHORIZING THE CITY MANAGER TO ENTER INTO AN EXCLUSIVE NEGOTIATING AGREEMENT WITH ABODE HOUSING DEVELOPMENT WHEREAS, the City of San Rafael (the “City”) is the owner of that certain real property within the City limits at 519 4th Street, consisting of approximately 0.304 acre, designated as APN 014-123-06 (the “Property”); and WHEREAS, the Property is located within the Downtown San Rafael Precise Plan Area and is currently improved with a commercial building used as storage for the City’s police and fire departments; and WHEREAS, on December 8, 2023, the City issued a Request for Proposals (“RFP”) seeking a developer to develop an affordable housing project on at least eighty percent (80%) of the Property. The RFP was distributed to private developers as well as housing sponsors (as defined in Health and Safety Code Section 50074) that have notified the California Department of Housing and Community Development of their interest in surplus land; and WHEREAS, City received three (3) proposals, one of which was submitted by Abode Housing Development, a California nonprofit public benefit corporation (“Abode”); and WHEREAS, Abode’s proposal contemplates development of the Property exclusively with affordable housing units, half of which will be affordable to households with incomes that do not exceed 60% of the area median income (“AMI”) and half of which will be available to persons experiencing homelessness or to very low income households (households with incomes less than 50% of AMI) (the “Project”); and WHEREAS, City staff has reviewed the proposals, interviewed the three (3) respondents, determined that Abode has demonstrated the highest level of skill, experience, and financial capacity and that Abode’s proposed Project would best advance City’s goals for development of the Property; and WHEREAS, the Surplus Land Act (Government Code Section 54220 et. seq.) (“Act”) requires local agencies, including charter cities, to follow certain procedures to dispose of “surplus land” or declare land to be “exempt surplus land” at a regular public meeting prior to disposition; and 4873-5218-5190 v5 WHEREAS, pursuant to Government Code Section 54221(f)(1)(A), surplus land that is transferred pursuant to Government Code Section 37364 for development as affordable housing qualifies as “exempt surplus land”; and WHEREAS, Government Code Section 37364 authorizes local agencies to sell, lease, or otherwise dispose of real property to provide housing affordable to persons and families of low- or moderate-income provided that (i) at least 80% of the area of the property will be used for development of housing, and (ii) at least 40% of the housing units developed on the property will be affordable to households whose income is not greater than 60% of AMI (75% of the upper limit for “lower income households”), of which at least one-half will be affordable to households of very low-income (50% AMI); and WHEREAS, City desires to enter into an Exclusive Negotiating Agreement, in substantially the form included in the staff report accompanying this resolution (“ENA”) with Abode for the purpose of negotiating the terms of a proposed Disposition and Development Agreement (“DDA”) and affordable housing covenant (“Affordable Housing Covenant”) for the Property and the Project, conducting predevelopment site analysis and project scoping, and determining a preliminary site plan for the Project; and WHEREAS, a DDA, if approved by the City Council and entered into by the parties, will require the Property to be developed and operated for residential uses consistent with the affordability requirements set forth in Government Code Section 37364. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Rafael that: 1. The City Council adopts the recitals set forth above as findings of fact. 2. The City Council has determined, and hereby affirms, that a DDA, if approved by the City Council and entered into by the parties, will require recordation of an Affordable Housing Covenant ensuring that the Property will be developed for and used to provide affordable housing, including housing affordable to persons and families of low- and very low-income in a manner consistent with the affordability requirements set forth in Government Code Section 37364, that this use is in the City’s and community’s best interests, and that development of the Property and the Project in accordance with requirements to be set forth in a DDA and an Affordable Housing Covenant will satisfy the requirements of Government Code Section 37364. 3. The City Council further makes the following findings, pursuant to Government Code Section 37364: 4873-5218-5190 v5 a. As will be more particularly set forth in the proposed DDA, (i) not less than 80% of the Property will be required to be developed for housing, and (ii) within the Project overall, at least 40% of any housing units developed on the Property will be affordable to households whose income is not greater than 60% AMI (75% of the upper limit for “lower income households”), of which at least one-half will be affordable to households of very low-income (50% AMI). b. The proposed DDA will require recordation of a separate Affordable Housing Covenant with a term of not less than 55 years against the Property, to ensure the affordable residential units within the Project are restricted for occupancy at affordable rents by eligible households with household incomes consistent with the requirements of Government Code Section 37364. 4. Based upon the foregoing, the City Council hereby determines and declares the Property to be exempt surplus land under Government Code Section 54221(f)(1)(A) as property proposed to be transferred pursuant to Government Code Section 37364. The City Council further hereby directs City staff to send a notification to HCD that the City Council has declared the Property exempt surplus land by this resolution. 5. The City hereby authorizes the City Manager to enter into an ENA with Abode in substantially the form attached to the staff report, subject to minor conforming changes as approved by the City Attorney. I, LINDSAY LARA, 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 of said City held on Monday the 20th day of May 2024, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None LINDSAY LARA, City Clerk