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HomeMy WebLinkAboutRDA Reso 06-2011RESOLUTION NO. 06 -2011 REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING AN OWNER PARTICIPATION AND LOAN AGREEMENT WITH GIFFRA ENTERPRISES, LLC, APPROVING THE PROVISION OF A LOAN FOR THE REHABILITATION OF A MODERATE- INCOME RESIDENTIAL/ MIXED -USE PROJECT AT 226 -238 GRAND AVENUE AND AUTHORIZING THE EXECUTION OF DOCUMENTS IN CONNECTION WITH SUCH FINANCING 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 Downtown/Central Redevelopment Project Area (the "Project Area "); WHEREAS, Giffra Enterprises, LLC, a California limited liability company ( "Owner ") is the owner of two currently vacant single -room occupancy hotels located in the Project Area at 228 and 232 Grand Avenue and known as San Mateo County Assessor's Parcel Nos. 012 -315- 130 and 012 - 315 -140 (the "Property "); WHEREAS, the Owner proposes to rehabilitate the Property into ten (10) apartment units that will be affordable to moderate- income households (the "Project "); WHEREAS, the Project will be of benefit to the Project Area because it will improve the streetscape appearance of the Property and will increase the supply of housing that is affordable to moderate - income residents of the Project Area and the City; WHEREAS, the terms and conditions for the rehabilitation and the financing of the Project are more particularly described in a proposed Owner Participation and Loan Agreement (the "OPA ") between Agency and Owner, copies of which have been provided to the Agency; WHEREAS, the proposed Agency financing for the Project includes a construction/permanent loan in the amount of Two Million Five Hundred Thousand Dollars (82,500,000) (the "Loan ") to be funded from the Agency's Low and Moderate - Income Housing Set -Aside Fund; and WHEREAS, Owner and Agency staff have negotiated the terms and conditions of (i) the OPA; (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 with interest; 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 Redevelopment Agency of the City of South San Francisco that it hereby: 1. Finds that the rehabilitation of the Property in accordance with the OPA and the provision of the Loan for the Project will facilitate the development of housing for 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 OPA, authorizes the Executive Director or his designee to execute and deliver the OPA substantially in the form on file with the Agency Secretary. 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 funds necessary to fund the Loan. 6. Authorizes the Executive Director or his designee to execute and deliver such other instruments and to take such other 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 23 day of February, 2011 by the following vote: AYES: Boardmembers Mark Addiego, Pedro Gonzalez, and Karyl Matsumoto, NOES: None ABSTAIN: None ABSENT: * None Vice Chair Richard A. Garbarino and Chairman Kevin Mullin