HomeMy WebLinkAboutRDA Reso 10-2011 RESOLUTION NO. 10 -2011
REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO,
STATE OF CALIFORNIA
A RESOLUTION APPROVING THE APPROPRIATION OF
$5,887,587 OF MERGED PROJECT AREA REDEVELOPMENT
FUND TO THE LOW AND MODERATE INCOME HOUSING
FUND FOR THE DEVELOPMENT OF AFFORDABLE
HOUSING BY AFFILIATES OF MID - PENINSULA HOUSING
CORPORATION
WHEREAS, pursuant to authority granted under Community Redevelopment Law
(California Health and Safety Code Section 33000 et seq, "CRL "), the Redevelopment Agency
of South San Francisco (the "Agency ") has the responsibility to implement the Redevelopment
Plan (the "Redevelopment Plan ") for the El Camino Corridor Redevelopment Project Area (the
"Project Area "); and
WHEREAS, the California Legislature has found and declared that a fundamental
purpose of redevelopment is to expand the supply of low- and moderate - income housing (CRL
Section 33071); and
WHEREAS, the California Legislature has determined that the that the provision of
housing is itself a fundamental purpose of the CRL and that a generally inadequate statewide
supply of decent, safe, and sanitary housing affordable to persons and families of low or
moderate income, threatens the accomplishment of the primary purposes of the CRL, including
job creation, attracting new private investments, and creating physical, economic, social, and
environmental conditions to remove and prevent the recurrence of blight (CRL Section 33334.6);
and
WHEREAS, the California Legislature has determined that the provision of affordable
housing by redevelopment agencies and the use of taxes allocated to the Agency pursuant to
CRL Section 33670(b) ( "Tax Increment ") is of statewide benefit and of particular benefit and
assistance to all local governmental agencies in the areas where the housing is provided (CRL
Section 33334.6); and
WHEREAS, pursuant to CRL Section 33334.2(a), the Agency is required to set aside and
deposit not less than twenty percent (20 %) of all Tax Increment into a Low and Moderate
Income Housing Fund; and
WHEREAS, the Low and Moderate Income Housing Fund shall be used by the Agency
for the purposes of increasing, improving, and preserving the City of South San Francisco's
supply of low -and moderate - income housing available at affordable housing cost; and
WHEREAS, pursuant to CRL Section 33334.2(g)(1), the Agency may use the Low and
Moderate Income Housing Fund outside of the Project Area, provided that it benefits the Project
Area; and
WHEREAS, MP South City LLP, a California limited partnership ( "MP "), an affiliate of
Mid - Peninsula Housing Corporation, a California nonprofit public benefit corporation, owns that
certain real property located in the City of South San Francisco ( "City ") adjacent to the Project
Area at 636 El Camino Real and known as San Mateo County Assessor Parcel No 010146040
(the "Property "); and
WHEREAS, on a portion of the Property, MP has proposed the development and
construction of a mixed -used residential development consisting of sixty -two (62) units of multi-
family rental housing affordable to low- and moderate - income households, common areas, a
subterranean parking garage, and approximately 5700 square feet of commercial retail space (the
"Phase A Project "); and
WHEREAS, the Agency has proposed to ground lease the remainder of the Property to
MP South City II LLP, a California limited partnership, an affiliate of Mid - Peninsula Housing
Corporation ( "MP II" and collectively with MP, hereafter, the "Developers ") for construction of
a mixed -use development consisting of forty -seven (47) units of multi- family rental housing
affordable to low- and moderate - income households, common areas, a subterranean parking
garage and related improvements (the "Phase B Project," and collectively with the Phase A
Project, hereafter, the "Project "); and
WHEREAS, in connection with the Project, the Developers have agreed to restrict 61 of
the residential units in the Phase A Project for occupancy by low- and moderate - income
households for a period of 75 years and restrict 47 of the residential units in the Phase B Project
for occupancy by low- and moderate - income households for a period of 75 years; and
WHEREAS to assist in financing the construction of the Project, the Agency has agreed
to provide residual receipts loans to MP in the amount of $4,290,373 (the "Phase A Loan") and
to MP II in the amount of $5,698,627 (the "Phase B Loan") to be funded by the Low and
Moderate Income Housing Fund; and
WHEREAS, the Agency has determined that the development and construction of the
Project is consistent with the Redevelopment Plan and the Implementation Plan for the Project
Area, will be of benefit to the Project Area, will further the goals of the Redevelopment Plan, and
will increase the supply of housing affordable to low- and moderate - income households; and
WHEREAS, pursuant to RDA Resolution 5- 2011, the Agency and the Developers
entered into several agreements, including ground leases, loan agreements, deeds of trust and
regulatory agreements) related to the development and construction of the Project; and
WHEREAS, in furtherance of the goals of redevelopment, Agency desires to set aside
and deposit an additional Five Million, Eight Hundred Eighty Seven Thousand, Five Hundred
Eighty Seven Dollars ($5,887,587) of Tax Increment from the Merged Project Area
Redevelopment Fund into the Low and Moderate Income Housing Fund for the purpose of
partially financing the Project and creating low- and moderate- income multi - family rental
housing in the City and adjacent to the Project Area;
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 affordable housing for low- and moderate - income
households is a fundamental purpose of redevelopment within the Project Area;
2. Finds that the development and construction of the Project pursuant to the
Redevelopment Plan will facilitate the development of housing affordable for low- and
moderate - income households in accordance with Section 33071 of the CRL.
3. Finds that the Project will be of benefit to the Project Area, will further the goals
of the Redevelopment Plan pursuant to the CRL, and will be consistent with the Implementation
Plan adopted in connection therewith.
4. Appropriates $5,887,587 from Tax Increment form the Merged Project Area
Redevelopment Fund to the Low and Moderate Income Housing Fund for the purpose of
partially financing the Project.
5. Authorizes the Executive Director or his designee to take such actions as
necessary to carry out the intent of this Resolution.
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
2nd day of March, 2011 by the following vote:
AYES: Boardmembers Mark Addiego, Pedro Gonzalez, and Karyl Matsumoto,
Vice Chair Richard A. Garbarino and Chairman Kevin Mullin
NOES: None _
ABSTAIN: None
ABSENT: None
ATTES . 1
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