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Home My WebLink AboutHSA Reso 2013-0001 RESOLUTION NO. fl S-203- 00 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY (THE "CITY "), IN ITS ROLE AS THE SUCCESSOR HOUSING AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY, APPROVING THE SALE OF REAL PROPERTY LOCATED AT THE SOUTHEAST CORNER OF EAST PALM CANYON DRIVE AND WEST BUDDY ROGERS AVENUE (APNs 687- 196 -001 THROUGH 006, AND 687 - 198 -001 THROUGH 006) TO THERMAL LAND, LLC AFTER HEALTH AND SAFETY CODE SECTION 33433 HEARING, AND APPROVING THE PROPERTY TRANSFER AGREEMENT FOR SAID SALE. WHEREAS, pursuant to the Community Redevelopment Law (the "CRL ") (Health and Safety Code Sections 33000 et seq.), the City Council of the City of Cathedral City ( "City ") created the City of Cathedral City Redevelopment Agency (the "Agency "); and WHEREAS, as part of the Fiscal Year 2011 -2012 State budget bill, the California State Legislature enacted, and the Governor signed, Assembly Bill x1 26 ( "AB 26 "), which added Parts 1.8 and 1.85 to the CRL, and which were intended to cause the dissolution and set in motion the wind down of all redevelopment agencies in California (the "Dissolution Act "); and WHEREAS, on December 29, 2011, in the petition California Redevelopment Association v. Matosantos, Case No. S194861, the California Supreme Court upheld the Dissolution Act and thereby all redevelopment agencies in California were dissolved by operation of law as of February 1, 2012; and WHEREAS, AB 26 was amended by the State Legislature in June 2012, pursuant to Assembly Bill 1484 to provide new requirements and clarification of prior requirements related to the wind down of the affairs of the dissolved Agency; and WHEREAS, per Health and Safety Code Section 34176, the city that authorized the creation of an Agency may elect to retain the housing assets and functions previously performed by the Agency, and thereupon, all rights, powers, duties, obligations, and housing assets shall be transferred to the city; and WHEREAS, by Resolution No. 2012 -153, considered and approved by the City Council on January 11, 2012, the City elected to become and serve as the successor agency to the Agency (the "Successor Agency ") and assumed the responsibility of winding down the affairs of the Agency and disposing its assets under the direction of the Successor Agency's oversight board created under AB 26; and WHEREAS, by same Resolution No. 2012 -153, considered and approved by the City Council on January 11, 2012, the City elected to retain the housing assets and functions previously performed by the Agency in accordance with Health and Safety Code Section 34176 (this role is referred to herein as the "Successor Housing Agency "); and Resolution No.11S4 -9 -061 Date Adopted: August 14, 2013 Page 1 of 6 WHEREAS, pursuant to Health and Safety Code Section 34176(a)(2), the Successor Housing Agency submitted a list of all housing assets which were received by the City pursuant to Section 34176(a)(1) to the Department of Finance by August 1, 2012; and WHEREAS, said housing asset list included the real property which is referenced by Assessor's Parcel Numbers 687 - 196 -001 through 006, and 687 - 198 -001 through 006; and WHEREAS, the City therefore owns in fee simple said real property located at the southeast corner of East Palm Canyon Drive and Buddy Rogers Avenue, County of Riverside, State of California, as referenced by Assessor's Parcel Numbers 687 -196- 001 through 006, and 687 - 198 -001 through 006, consisting of approximately two (2) acres (the "Property "); and WHEREAS, City finds that the Property is key development property in the City, which is important to the City's growth, population distribution, and traffic patterns; WHEREAS, pursuant to Health and Safety Code Sections 33334.2 and 33334.16, housing property must be used for affordable housing purposes; and WHEREAS, housing property may be sold and the proceeds deposited in the City's low and moderate income housing asset fund, pursuant to Health and Safety Code Section 34176(d); and WHEREAS, Thermal Land, LLC ( "Developer ") desires to acquire and develop the Property as a mixed -use building with residential apartment units and with ground floor retail units (the "Project "); and WHEREAS, the City desires to sell to Developer and Developer desires to purchase from the City, the Property, for consideration no less than the appraised fair market value with the covenants and conditions of said sale, plus an additional amount for certain sewer assessments, on the terms and conditions set forth in that certain Property Transfer Agreement and Escrow Instructions ("Agreement"), a copy of which is attached hereto and incorporated herein by this reference as Exhibit `EA "; and WHEREAS, Health and Safety Code Section 33413 requires that fifteen percent (15 %) of the new dwelling units being developed by the Project be available at affordable housing cost to and occupied by persons and families of low or moderate income for no less than fifty -five (55) years; and WHEREAS, accordingly, the Agreement includes covenants that will run with the Property requiring that said fifteen percent (15 %) of new dwelling units developed by the Project will be available to persons and families of moderate income for no less than fifty -five (55) years; and WHEREAS, the construction and ultimate operation of the Project will serve the needs of existing and future residents of the Downtown area, while furthering economic activity in the City's Downtown; and Resolution No. if >A -, 0 ' 1 Date Adopted: August 14, 2013 Page 2 of 6 WHEREAS, the construction and ultimate operation of the commercial component of the Project will generate the creation of jobs and increased sales tax for the City; and WHEREAS, it is acknowledged that any disposition of the Property by the Successor Housing Agency is subject to a public hearing and the results thereof, pursuant to Section 33433 of the Health and Safety Code; and WHEREAS, a public hearing considering the Summary Report of the proposed transfer, which is on file with the City Clerk's office and available for public inspection, and which was provided to the City Council under separate cover, was held August 14, 2013, in accordance with Health and Safety Code Section 33433; and WHEREAS, said public hearing was duly noticed by publication as required by Health and Safety Code Section 33433 and a copy of the Summary Report was made available for public inspection no later than the time of publication of the first notice of the hearing; and WHEREAS, a public hearing was held to consider the Agreement on August 14, 2013; NOW THEREFORE, the City Council, in its role as the Successor Housing Agency to the Former Redevelopment Agency, finds and resolves as follows: Section 1. RECITALS That the Recitals set forth above are true and correct. Section 2. FINDINGS That the Successor Housing Agency, pursuant to Section 33433, finds and determines, based on the information made available in the Staff Report, Summary Report (which has been provided under separate cover, and which is on file at the City Clerk's office and available for public inspection), and Agreement, and other such written and oral evidence presented to the Successor Housing Agency, that the consideration to be paid for the Property is not Tess than the fair market value with the covenants and conditions of said Agreement. Section 3. APPROVAL OF SALE That the Successor Housing Agency hereby approves the sale of the Property to Thermal Land, LLC per the terms and conditions contained in the Agreement, subject to any such revisions as shall be deemed necessary and approved by the City Manager acting on behalf of the Successor Housing Agency, or his or her designee, with the consent of the City's City Attorney acting on behalf of the Successor Agency. Section 4. CEQA CATEGORICAL EXEMPTION FINDING That the proposed transfer of the Property pursuant to the Agreement is categorically exempt under CEQA, Guidelines Section 15061(b)(3), as the property sale Resolution No . 4 ot.oi3 -UN Date Adopted: August 14, 2013 Page 3 of 6 1 is only a transfer of ownership, which is an activity that can be seen with certainty to have no significant effect on the environment Section 5. EXECUTION AND OTHER ACTS That the City Manager or his or her designee, acting on behalf of the Successor Housing Agency, is hereby authorized to execute and deliver the Agreement and any such documents and instruments and to do such things which may be necessary or proper to effectuate the purposes of the Resolution, and any such actions previously taken by the Manager are hereby ratified, approved and confirmed. Section 6. SEVERABILITY That if any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Successor Housing Agency hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. Section 7. EFFECTIVE DATE This Resolution shall take effect immediately upon adoption. Section 8. CERTIFICATION The Deputy City Clerk acting on behalf of the Successor Housing Agency shall certify to the passage of this Resolution and enter it into the book of original resolutions. [THE REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] Resolution No.I I p(� ) -1)13- l4 tt I Date Adopted: August 14, 2013 Page4of6 i , , , PASSED, APPROVED AND ADOPTED by the Successor Housing Agency to , the Former Redevelopment Agency of the City of Cathedral City at a meeting held on , the 14 day of August, 2013 by the following vote: - , , pi ry AYES: , CL 4S ) ViitA ' fre-e i S NOES: Aor ABSTAIN: ABSENT: R- • ST: , A da gio _ -7 a APPROVED: 111 "puty City Clerk A City Manager APPROVED AS TO FORM: I 4 x I Charles R. Green, City Attorney acting for the Successor Housing Agency PAAPPS\WPDATA\CATH\0025-58\DOCS\2911 - Resolution Approving Knickerbocker Sale and Agreement (8-5-13) t 1 t Resolution No:HCA - 09 , 06 - ate I Date Adopted: August 14, 2013 Page 5 of 6 1 , i