HomeMy WebLinkAboutRDA Reso 09-2010RESOLUTION NO. 09-2010
REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO,
STATE OF CALIFORNIA
A RESOLUTION APPROVING THE EXECUTION OF AN
OPTION AND PURCHASE AND SALE AGREEMENT WITH
MP SOUTH CITY, L.P., APPROVING THE PROVISION OF
LOANS IN THE TOTAL AMOUNT OF $9,509,000 FOR THE
DEVELOPMENT OF A MIXED-USE AFFORDABLE
HOUSING PROJECT AT 636 EL CAMINO REAL, 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 E1 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 ("MPSC"), an
affiliate of Mid-Peninsula Housing Coalition, a California nonprofit public benefit corporation
("Mid-Peninsula"), purchased the Property using Agency financing pursuant to an Owner
Participation and Loan Agreement dated as of November 19, 2008 and executed by and between
the Agency and the MPSC (the "OPA");
WHEREAS, MPSC and. Mid-Peninsula South City II, L.P., a California limited
partnership (an affiliate of Mid-Peninsula, and hereafter referred to collectively with MPSC as
the "Developers") propose 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, pursuant to the OPA, the Agency provided an acquisition/predevelopment
loan to MPSC in the amount of Four Million Nine Hundred Fifty Thousand Dollars ($4,950,000)
using funds from the Agency's Low and Moderate-Income Housing Set-Aside Fund; and
WHEREAS, MPSC and Agency staff have negotiated the terms and conditions of (i) an
Option and Purchase and Sale Agreement (the "Option Agreement") which among other
provisions provides that the Agency would have the right to acquire the Property provided that
the Agency concurrently leases the Property back to the Developers for development of the
Project, and (ii) term sheets describing the terms upon which the Agency would provide loans
(the "Loans") in the aggregate principal amount of Nine Million, Five Hundred and Nine
Thousand Dollars ($9,509,000) to the Developers to assist in the financing of the Project.
NOW, THEREFORE, BE IT 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 Option Agreement and
the provision of the Loans for the Project will facilitate the development of housing for low, very
low- and moderate-income households, will be 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 provision of the Loans to the Developers pursuant to the terms and
conditions set forth in the Loan Term Sheets presented to the Agency and on file with the
Agency Secretary.
3. Approves the Option Agreement, and authorizes the Executive Director or his designee to
execute and deliver the Option Agreement substantially in the form on file with the Agency
Secretary.
4. Appropriates from the Agency's Low and Moderate-Income Housing Fund the additional
funds necessary to fund the Loans, and approves an amendment to the Agency Low/Mod
Housing Operating Budget consistent with such appropriation.
5. 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, including without
limitation, the execution and delivery of commitment letters consistent with the Loan Term
Sheets.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by
the Redevelopment Agency of the City of South San Francisco at a special meeting held on the
23rd day of June, 2010 by the following vote:
AYES: Boardmembers Pedro Gonzalez and Richard A. Garbarino,
Vice Chair Kevin Mullin and Chairman Mark Addiego
NOES: Boardmember Karyl Matsumoto
ABSTAIN: None
ABSENT:
AT'~ST: '
ity Clerk