HomeMy WebLinkAboutReso 102-2008RESOLUTION NO. 102-2008
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION ADOPTING FINDINGS THAT PROVISION
OF A LOAN TO MP SOUTH CITY, L.P. FOR THE
ACQUISITION AND DEVELOPMENT OF A MIXED-USE
AFFORDABLE HOUSING DEVELOPMENT AT 636 EL
CAMINO REAL WILL BE OF BENEFIT TO THE EL CAMINO
CORRIDOR REDEVELOPMENT PROJECT AREA AND
APPROVING AN AMENDMENT TO THE AGENCY
LOW/MOD HOUSING OPERATING BUDGET
WHEREAS, the Redevelopment Agency of the City of South San Francisco ("Agency")
is a redevelopment agency existing pursuant to the Community Redevelopment Law, California
Health and Safety Code Section 33000, et seq. (the "CRL"), and pursuant to the authority
granted thereunder, has the responsibility to carry out the Redevelopment Plan (the
"Redevelopment Plan") for the El (:amino Corridor Redevelopment Project Area (the- "Project
Area");
WHEREAS, the Agency seeka development of certain real property located in the City of
South San Francisco adjacent to the Project Area at 636 El Camino Real and known as San
Mateo County Assessor's Parcel No. 014-160-040 (the "Property");
WHEREAS, MP South City, L.P., a California limited partnership ("Developer") (an
affiliate of Mid-Peninsula Housing Coalition, a California nonprofit public benefit corporation)
has the contractual right to purchase the Property;
WHEREAS, Developer proposes to develop amixed-use residential development on the
Property that will be available at affordable rents to low-, very low-, and moderatf;- income
households (the "Project");
WHEREAS, the Project will be of benefit to the Project Area because it will be in close
proximity to the Project Area and will increase the supply of housing that is affordable to low-
and moderate-income residents of thf; Project Area and the City;
WHEREAS, the terms and conditions for development and financing of the Project are
more particularly described in a proposed Owner Participation and Loan. Agreement (the
"OPA") between Agency and Developer, copies of which have been provided to the City
Council;
WHEREAS, the proposed Agency financing for the Project includes an
acquisition/predevelopment loan in the amount of Four Million Nine Hundred Fifty Thousand
Dollars ($4,950,000) (the "Loan") to be funded from the Agency's Low and Moderate-Income
Housing Set-Aside Fund; and
WHEREAS, Developer and Agency staff have negotiated the terms and conditions of (i)
the OPA which among other provisions re~r~ires completion of all re~lured environmental review
in accordance with the California Environmental Quality Act (CEQA) prior to commencement of
construction of the Project, reduires Developer to comply with all applicable requirements
related to relocation of existing residents, and provides that the Agency has an option to purchase
the Property if Developer fails to develop the Project within specified time periods; (ii) an
Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants
("Regulatory Agreement") that will restrict rents for units in the Project at affordable levels for
a period of 55 years; (iii) a Secured Promissory Note (the "Note") that provides for repayment of
the Loan on a residual receipts basis; and (iv) a Deed of Trust, Assignment of Rents, Security
Agreement and Fixture Filing (the "Deed of Trust") pursuant to which the Agency will be
provided a security interest in the Property and the Project to secure repayment of the Loan and
compliance with the Regulatory Agreement.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of South San
Francisco that it hereby:
1. Finds that the development of the Property in accordance with the OPA and the provision
of the Loan for the Project will facilitate the development of housing for low, very low- and
moderate-income households and will be of benefit to the Project Area.
2. Appropriates from the Agency's Low and Moderate-Income Housing Fund the
additional funds necessary to fund the Loan and approves an amendment to the Agency
Low/Mod Housing Operating Budget consistent with such appropriation.
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I hereby certify that: the foregoing Resolution was regularly introduced and
adopted by the City Council of the City of South San Francisco at a regular meetir.~g held on
the 24t~' day of September 2008 by the following vote:
AYES: Councilmembers Mark N. Addiego and Kevin Mullin,
NOES:
Mayor Pro Tem Karyl Matsumoto and Mayor Pedro Gonzalez
None
ABSTAIN: None
ABSENT: Councilman Richard .A
arbarino
ATTEST: ~~..~"1 1~~~~~ ~ ~--_._--.
ty Clerk