HomeMy WebLinkAboutResolution No. 10-7233 - Approve DDA with National Community Renaissance & Convey 8314-2nd St.RESOLUTION NO. 10– 7233
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT
BETWEEN THE DOWNEY COMMUNITY DEVELOPMENT COMMISSION AND
NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA AND
APPROVING THE CONVEYANCE OF CERTAIN REAL PROPERTY
(ASSESSOR’S PARCEL NO. 6254-020-914) AND MAKING CERTAIN
FINDINGS REQUIRED BY LAW
WHEREAS, pursuant to the provisions of the California Community Redevelopment Law
(California Health and Safety Code Section 33000 d Bg.) (“CRL”), the City Council (“City
Council”) of the City of Downey (”City”) approved and adopted the Redevelopment Plan for the
Firestone Redevelopment Project Area (“Redevelopment Plan”), which is applicable to a certain
geographic area within the City (“Project Area”); and
WHEREAS, the Community Development Commission of the City of Downey
(“Commission") is engaged in activities necessary to execute and implement the
Redevelopment Plan; and
WHEREAS, the Commission owns a parcel of real property within the City that is located
within the Project Area, consisting of approximately .39 acres or 16,919 square feet with the
street address of 8314 2nd Street, and identified as Assessor Parcel Number 6254-020-914
(“Commission Property”); and
WHEREAS, the Commission and National Community Renaissance of California
(“Developer”) have negotiated the terms of an agreement entitled Disposition and Development
Agreement (“Agreement”) providing for, among other things, the transfer by the Commission of
the Commission Property to Developer and Developer’s redevelopment of the Commission
Property as forty-nine (49) affordable residential rental units and one (1) manager’s unit in a six-
story building with subterranean parking (“Project”); and
WHEREAS, the Commission has determined that implementation of the Agreement: (1 )
is in the best interests of the City and the Commission and the health, safety and welfare of the
City’s taxpayers and residents and is in accordance with the public purposes set forth in the
Redevelopment Plan and CRL; (2) strengthens the City’s land use and social structure; and (3)
will assist in eliminating physical blight in the City; and
WHEREAS, the Commission desires to assist in the development of the Project by
providing financial assistance in the form of a subordinate financing loan in the amount not to
exceed Four Million Four Hundred Fifty Thousand Dollars ($4,450,000), consisting of the agreed
upon value of the Property in the amount of One Million Dollars ($1,000,000) plus Three Million
Four Hundred Fifty Thousand Dollars ($3,450,000) cash, for certain property acquisition and
development expenses associated with the Project (“Commission Loan”); and
WHEREAS, the Commission’s participation in the Project is limited to: (1) carrying out
routine government functions; (2) performing conventional activities of a lender; and (3)
imposing statutorily authorized conditions of assistance accepted by the Developer; and
f WHEREAS, the Developer’s construction and operation of the Project are not financially
feasible without the Commission's assistance. In order to assist in the construction of the
RESOLUTION NO. 10-7233
PAGE TWO
development on the Commission Property, Commission desires by the Agreement to provide
for: (1) the transfer of the Commission Property to Developer; (2) the Commission Loan from
Commission to Developer, from the Commission’s property tax increment allocation set aside
for low and moderate income housing; and (3) a restrictive covenant to run with the land for fifty-
five (55) years providing that at least twenty-five (25) of the housing units shall be available to
Qualified Households at an Affordable Rent, as further defined in the Agreement. The amount of
the Commission Loan provided pursuant to this Agreement does not exceed the amount of the
Commission’s assistance necessary to make the Developer’s acquisition of the Property and
the construction and operation of the Project, as restricted by the Agreement, financially
feasible; and
WHEREAS, the Commission intends to apply the housing units to be developed
pursuant to this Agreement towards satisfaction of the statutorily mandated affordable housing
production requirements for the Project Area under CRL Section 33413 (b)(2); and
WHEREAS, pursuant to CRL Section 33433 the City Council of the City (acting as the
Commission’s legislative body) must, following a public hearing, make certain findings and
determinations in connection with Commission’s sale of the Commission Property that was
acquired with Commission tax increment revenue; and
WHEREAS, pursuant to CRL Section 33433, the Commission has prepared, and the
City Council has reviewed and considered, a Real Property Disposition Summary Report
(“Summary Report”) setting forth: (1 ) the cost of the Agreement to the Commission; (2) the
estimated value of the interest in the Commission Property to be conveyed, both at its highest
and best use and with the covenants, conditions and requirements of the Agreement; (3) an
explanation of how the conveyance of the Commission Property will assist in the elimination of
blight within the Project Area and provision of workforce housing for lower income persons; and
(4) a copy of the Agreement. The Commission has made the Summary Report available for
public inspection in accordance with CRL Section 33433; and
WHEREAS, pursuant to the California Environmental Quality Act, Public Resources Code
Sections 21000 d ga. (“CEQA”), and the State’s CEQA Guidelines (Title14 California Code of
Regulations Sections 15000, d. gw.), the City is the lead Agency concerning the Project and has
filed a Notice of Exemption for the Project because it is categorically exempt from CEQA,
pursuant to CEQA Guidelines Section 15194, Affordable Housing Exemption; and
WHEREAS, pursuant to Government Code Section 65402, the City has determined that
the location, purpose, extent and development of the Project on the Commission Property are in
conformance with the City’s General Plan; and
WHEREAS, pursuant to CRL Sections 33431 and 33433, on October 21 and 28, 2010
the Commission caused notice of the a joint public hearing of the City Council and the
Commission’s Governing Board to be published in a newspaper of general circulation within the
City and
WHEREAS, pursuant to CRL Sections 33431 and 33433, on November 9, 2010 the City
Council and the Commission’s Governing Board held a duly noticed joint public hearing
regarding the proposed Agreement; and
RESOLUTION NO. 10-7233
PAGE THREE
i WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred .
NOW. THEREFORE. THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The recitals of facts set forth above are true and correct and are
incorporated into this Resolution by this reference
SECTION 2. The City Council finds and determines, based on the information made
available in the Summary Report, the staff report accompanying this Resolution, the oral
presentation of staff, and the other written and oral evidence presented to the City Council at or
prior to the public hearing regarding the Agreement, that, pursuant to CRL Section 33433:
(i) The conveyance of the Commission Property by the Commission to the
Developer will assist in the elimination of blight by removing the old structure on the
Commission Property and providing affordable rental housing for lower income persons; and
(ii) The disposition of the Commission Property is consistent with the Implementation
Plan adopted by the Commission for the Project Area; and
(iii) The consideration to the Commission for the transfer of the Commission Property
to the Developer is not less than the fair reuse value of the Commission Property with the
covenants, conditions and development costs authorized by the sale.
SECTION 3. There have been no changes in the Project following the City’s filing a
Notice of Exemption that would require any additional environmental review under CEQA.
SECTION 4. The City Council approves of the Commission entering into the
Agreement in substantially the form presented to the City Council and attached to the Summary
Report, with such changes and amendments as may be approved by both the Commission
Executive Director and Commission Counsel. Specifically, the City Council approves of the
Commission selling the Commission Property to the Developer pursuant to the terms and
conditions of the Agreement.
SECTION 5.This Resolution shall take effect immediately upon its adoption.
SECTION 6. The City Clerk shall certify to the adoption of this Resolution
APPROVED AND ADOPTED this 9th day of November, 2010.
ANNE M. BAYER, Mayor
Al TES'r
(
KATHLEEN L. MIDSTOKKE, City Clerk
RESOLUTION NO. 10-7233
PAGE FOUR
I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of
the City of Downey at a regular meeting held on the 9th day of November, 2010, by the following
vote, to wit
AYES:
NOES:
ABSENT:
ABSTAIN
Council Members:
Council Member:
Council Member:
Council Member:
Brossrner, Gafin, Guerra, Marquez, Mayor Bayer
None
None
None
q<Ml/z,dX Madado
KATHLEEN L MIDSTOKKE City Clerk