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Home My WebLink AboutORD 1037ORDINANCE NO. 1037 A ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT RELATED TO A 36-UNIT APARTMENT COMPLEX KNOWN AS PALM VILLAGE APARTMENTS, LOCATED AT 73-610 SANTA ROSA WAY. CASE NOS. PP 02-16 AND DA 02-02: WHEREAS, the City Council of the City of Palm Desert, California, established on the 13th day of February, 2003, hold a duly noticed public hearing to consider the request by PALM DESERT REDEVELOPMENT AGENCY HOUSING DIVISION for approval of the above noted; and WHEREAS, the Planning Commission by its Resolution No. 2179 has recommended approval; and WHEREAS, said application has complied with the requirements of the "City of Palm Desert Procedure for Implementation of the California Environmental Quality Act', Resolution No. 02-60, in that the Director of Community Development has determined that the project is a low income housing project and therefore is Statutory Exempt for purposes of CEQA and no further documentation is necessary; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said City Council did find the following facts and reasons to exist to justify approval of said request: 1. California Government Code Section 65915 mandates local governments to approve affordable housing projects with density bonuses and development standards incentives. The density bonus and development standard incentives will not cause a negative impact on the neighborhood; and 2. The project will provided affordable housing to low and very -low income households. 3. The development agreement will not endanger the public peace, health, safety or general welfare. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert, California, as follows: 1. That the above recitations are true and correct and constitute the findings of the City Council in this case. 2. That it does hereby approve the above Development Agreement 02-02 as shown in Exhibit A, attached hereto. ORDINANCE NO. 1037 PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Palm Desert, California, held on this ?7th day of February 2003, by the following vote, to wit: AYES: CRITES, FERGUSON, KELLY, SPIEGEL, BENSON NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: RACHELLE D. KLASSE , CITY CLERK CITY OF PALM DESERT, CALIFORNIA l JEAN M. BENSON, MAYOR 0 Ordinance No. 1037 EXHIBIT A AFFORDABLE HOUSING DEVELOPMENTIREGULATORY AGREEMENT THIS AGREEMENT is entered into this 27th day of February , 2003 , between Palm Desert Redevelopment Agency (hereinafter "RDA") and the City of Palm Desert (hereinafter "City"), both of which are public agencies organized and existing under the laws of the State of California. RECITALS This Agreement is predicated upon the following facts: A. RDA is owner of certain real property located within the City of Palm Desert, California, which property is described in Exhibit 1, attached hereto and made a part hereof (hereinafter the "Property"). RDA has applied for and been granted approval of a precise plan to construct a 36 unit affordable apartment project, to be known as Palm Village Apartments ("Project"); B. RDA has applied for Project approval pursuant to Government Code Section 65915 (effective January 1, 2003) which requires that a city grant a density bonus and other concessions or incentives to applicants proposing affordable housing projects; C. The Palm Desert Housing Authority shall operate the Project for the RDA; and D. This Agreement is a Development Agreement approved pursuant to Palm Desert Municipal Code, Chapter 25.37. RNIPUB\R W HR208743 Ordinance No. 1037 NOW, THEREFORE, the parties agree: 1. Definitions. In this Agreement, unless the context otherwise requires: (a) "Area Median Income" shall be the median income of the area as determined by the Palm Desert Housing Authority pursuant to California Redevelopment Law. (b) "Affordable" shall mean that the maximum rents charged for the affordable units which shall not exceed the rents determined by the Palm Desert Housing Authority to meet the requirements of Community Redevelopment Law and the Stipulation and Settlement Agreement entered into by the City of Palm Desert in the Superior Court of the State of California, County of Riverside, Case No. Indio 51124, dated June, 1990, and as subsequently amended (hereinafter "Stipulation") (c) "Useful Life of the Project" is the greater of fifty-five (55) years or such greater period of time which the Project remains habitable, with reasonable care and maintenance, as determined by City. 2_ Agreement by RDA and City. (a) RDA has been conditionally granted permission by the City to construct a 36 unit affordable apartment project pursuant to Precise Plan 02-16 , City Council Resolution No. 2179 . The Project has been granted the following incentives pursuant to Government Code §65915: 1. A density bonus of 12 units, for a total of 36 units; 2. A parking ordinance waiver, to allow the project to proceed with 56 spaces, rather than the normally required 72 spaces; and 3. A waiver of the maximum height limitation, to allow the RMPUB A W IF208743 -2- Ordinance No. 1037 project a maximum height of26 feet 2 inches, with an average ridge height of25 feet 0 inches, rather than the maximum building height in an R3 zone of 24 feet 0 inches. (b) In exchange for the density bonus and other concessions listed above, RDA shall provide, and shall contract with the Palm Desert Housing Authority to operate and maintain, all 36 units as affordable units, affordable to households with the indicated percentage of Area Median Income adjusted for family size (all of the units shall have 2 bedrooms): Percentage of Area Median Income 20% 45% 55% 65% 75% 120% Two (2) Bedroom Units 5 8 8 8 9 - (c) For the initial year Qon the maximum rents shall be: Maximum Monthly Rent (Including Utilities) 20% 45% 55% 65% 75% 120% Two (2) Bedroom Units 210 472 576 681 943 1508 Annual rent increases shall not exceed the percentage increase in the Area Median Income for Riverside/San Bernardino Counties, or as otherwise required by Community Redevelopment Law. (d) RDA agrees that throughout the term of this agreement, the units shall be rented only to qualified persons at affordable rental amounts, as determined by the Palm Desert RMPU'WRWHQ08743 -3- Ordinance No. 1037 Housing Authority. (e) Palm Desert Housing Authority shall be responsible for determining the eligibility of prospective tenants in the Project, based on Community Redevelopment Law and the Stipulation. 3. Duration of Agreement. This Agreement shall remain in effect during the Useful Life of the Project. 4. Covenants. The covenants established in this Agreement shall, without regard to technical classification and designation, be binding on RDA and any successor in interest to the project, or any part thereof, for the benefit and in favor of the City, and its successors and assigns. Such covenants shall remain in effect for the duration of the Agreement. 5. Assignment. Then ghts of the RDA under this Agreement maybe transferred or assigned; however, RDA will remain responsible for all obligations under this Agreement unless the Written consent of the City is first obtained, which will not be unreasonably withheld. 6. Relationship of Parties. It is understood that the contractual relationship between the City and RDA is such that the RDA is an independent contractor and not the agent of the City. 7. Applicable Law. This Agreement shall be construed according to the laws of the State of California. 8. Severability. If any portion of this Agreement is for any reason held to be unenforceable, such deternlination shall not affect the validity of the remaining portions. 9. Authority. Each ofthe parties hereto covenants and agrees that it has the legal capacity to enter into this Agreement contained herein, that each Agreement is binding upon that RMPI :HRWI-1,209743 -4- Ordinance No. 1037 party and that this Agreement is executed by a duly authorized official acting in his official capacity. IN WITNESS WHEREOF this Development Agreement has been executed by the parties on the day and year first above written. Approved as to form: CITY OF PALM DESERT A Municipal Corporation r By: City 1410S JE NS N, Attes RAC ELLE D. KLASSEN, CI CLERK PALM DESERT REDEVELOPMENT AGENCY By: . BENSON, CHAIRMAN RAIPUB,R W f R208743 -5- Ordinance No. 1037 STATE OF CALIFORNIA ) ) SS. COUNTY OF Riverside ) On March 31 , 20 03, before me, M. Gloria Martinez a Notary Public in and for said State, personally appeared Jean M. Benson & Rachelle D. Klassen personall��'c'cllknown to me ( �� x»x+$>a� �fmfisf' crxi�dence) to be the persor(s) whose ndrYie ffEubscribed to the within instrument and acknowled ed to me that %e executed the name in Qtk authorized capa�ut�)and that by Asignat'a on the instrument, the person, (s ) or the entity upon behalf of which the per acted, executed the instrument. WITNESS my hand and official seal. 9 Signature Notary P blic R%IPI B k\V►ra08743 -6- M. GLORIA MARTINEZ Commission # 1382510 Z ' NNotary Public - California z Riverside County - MY Cow• E)0esOctN 2006