HomeMy WebLinkAboutRDA Reso 20-2008RESOLUTION NO. 20-2008
REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO,
STATE OF CALIFORNIA
A RESOLUTION .APPROVING THE EXECUTION OF AN
OWNER PARTICLP'ATION AND LOAN AGREEMENT WITH
MP SOUTH CITY, L.P., APPROVING THE PROVISION OF A
LOAN :FOR THE ACQUISI'T'ION AND DEVELOPMENT OF A
MIXED-USE AFFORDABLE HOUSING PROJECT AT 636 EL
CAMINO REAL, ADOPTING FINDINGS THAT THE SUCH
FINANCING WILL BE OF BENEFIT TO THE EL CAMINO
CORRIDOR REDEVELOPMENT PROJECT AREA,
AUTHORIZING T:HE EXECUTION OF DOCUMENTS IN
CONNECTION WITH SUCH FINANCING, 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 Camino Corridor Redevelopment Project Area (the "Project
Area");
WHEREAS, the Agency seeks 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 moderate- 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 the 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 Agency;
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
Horsing Set-Aside Fund; and
WHEREAS, Developer and Agency staff have negotiated the terms and conditions of (i)
the OPA which among other provisions requires completion of all required environmental review
in accordance with the California Environmental Quality Act (CEQA) prior to commencement of
construction of the Project, requires Developer to comply with all applicable requirements
related to relocation of existing residents, and provides that the Agency has an option to pLU-chase
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 I'I' RESOLVED by the Redevelopment Agency 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, will lie of benefit to the Project Area, will further the goals of the
Redevelopment Plan, and will be consistent with the implementation plan adopted in connection
therewith.
2. Approves the OPA, authorizes the Executive Director or his designee to execute and
deliver the OPA substantially in thf; form on file with the Agency Secretary, and authorizes the
recordation of a Memorandum of the OPA and a Memorandum of Option in the Official Records
of San Mateo County.
3. Approves the provision of the Loan pursuant to the terms and conditions set forth in the
OPA.
4. Approves the Note, the Deed of Trust and the Regulatory Agreement, and authorizes the
Executive Director or his designeE; to execute and deliver each such document to which the
Agency is a party substantially in the form on file with the Agency Secretary.
5. 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.
6. Authorizes the Executive Director to execute and deliver such other instruments and to
take such other actions as necessary to carry out the intent of this Resolution.
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I hereby certify that the foregoing Resolution was regularly introduced and adopted by
the Redevelopment Agency of tl~ie City of South San Francisco at a special meeting; held on
the 24th day of September 2008 by the following vote:
AYES: Boardmembers Mark N. AddieQo and Kevin Mullin
Vice Chair Karvl Matsumoto and Chair Pedro Gonzalez
NOES: None
ABSTAIN: None
ABSENT
Boardmember Richard A. Garbarino
ATTEST:
Cler
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