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Home My WebLink AboutRes 05-80 and 507 Use of Low and Moderate-Income Housing Fund Monies for 20-Acre Affordable Housing SiteCITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVAL OF THE CITY COUNCIL RESOLUTION07-80AND THE REDEVELOPMENT AGENCY RESOLUTION NO. 507 APPROVING PA"MENT BY THE PALM DESERT REDEVELOPMENT AGENCY FOR THE COST OF INSTALLATION AND CONSTRUCTION OF CERTAIN PUBLIC IMPROVEMENTS SERVING PLANNED AFFORDABLE SINGLE-FAMILY HOMES AND SENIOR RENTAL APARTMENTS SUBMITTED BY: LAURI AYLAIAN, REDEVELOPMENT MANAGER DATE: OCTOBER 13, 2005 CONTENTS: CITY COUNCIL RESCLUTION NO.05- 80 REDEVELOPMENT AGENCY RESOLUTION NO. 507 Recommendation: By Minute Motion: that the City Council approve Resolution No.05-80 for the cost of the installation and construction of certain public onsite and offsite improvements, including improvements for a 20-acre affordable housing project site; and 2. that the Palm Desert Redevelopment Agency approve Resolution No. 507 _ for the cost of the installation and construction of certain public onsite and offsite improvements, including improvements for a 20-acre affordable housing project site located within Project Area No. 3. Executive Summary: This action authorizes use of low- and moderate -income housing fund monies for construction of infrastructure improvements at the Agency's 20-acre affordable housing site. It supplements money authorized for such use in January 2004. Discussion: In June 1998, the Redevelopment Agency purchased 40 acres of land between 42"d Avenue and Merle Drive west of Cook Street in Project Area No. 3 for development as part of its affordable housing program. In January 2004, the City Council and Agency Board authorized expenditure of up to $2.1 million of low- and moderate -income housing fund monies for infrastructure serving the (, R') \ li:'h I .Ju[Illa.' tm'' R:-:, \•. ,.u; In. 1.,:.01- 111: Staff Report Approval of City Council Res. No. 05- 80 and Agency Res. No. 507 13 October 2005 Page 2 of 2 whole original 40-acre parcel, of which the Hovley Gardens Apartments was the first component. Approximately $1,650,000 of that $2.1 million has been spent to date. On July 14, 2005, the Palm Desert Redevelopment Agency approved an agreement with ComDyn PD, LLC for the construction of a 27-unit senicr rental complex and 94 single-family homes on approximately 20.43 acres of the original 40-acre site. The senior rental units and the single-family homes will be available to be occupied by persons and families of low and moderate income. Pursuant to the agreement, the Agency will pay ComDyn PD, LLC to construct streets, sidewalks, curbs, gutters, underground utilities including water and sewer, traffic striping, and other offsite required improvements. These public improvements are within the public right-of-way, but will serve the affordable housing development exclusively. The City does not have the funding necessary to install these improvements within the Project Area. Pursuant to the provisions of Community Redevelopment Law (California Health and Safety Code Section 33000, et see.), and, in particular, Sections 33334.2(e)(2) and 33445 thereof, the Agency proposes to pay ComDyn PD, LLC for :he cost of the installation and construction of the above -described improvements. The public improvements serving the affordable housing units to be constructed on the site will be paid for from the low- and moderate -income housing fund in an amount not to exceed $3,895,000. If any portion of the improvements are not of direct benefit to the affordable housing units, the Agency will pay for them with available revenues of the Agency excluding monies in the housing lund. Staff, therefore, recommends that the City Council and the Redevelopment Agency approve the respective resolutions. Submitted by: Lauri Aylaian, Redevelopment Manager � Appr Val: \ Ju� cCarthy, ACM/Re 'pment Carlos L. Ortega, Executive Director Department Head: -_Dave Yrigoyen, Redevelopment Director Paul S. Gibson, Finance Director W RI7 V.B,-th Lougu uu.Ct.w Rv>,at •_1�1u,,.,�'lll ult nl,,�:cu,h „n.�a.: c ..+d RESOLUTION NO. 05-80 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING PAYMENT BY THE PALM DESERT REDEVELOPMENT AGENCY FOR THE COST OF THE INSTALLATION AND CONSTRUCTION OF CERTAIN PUBLIC IMPROVEMENTS, INCLUDING IMPROVEMENTS FOR AFFORDABLE MULTI -FAMILY HOUSING, SENIOR RENTAL HOUSING AND SINGLE FAMILY HOMES FOR SALE RECITALS: A. The Palm Desert Redevelopment Agency (the "Agency") entered into a Disposition and Development Agreement with Palm Desert Development, dated June 14, 2001, as amended by an Amendment to Disposition and Development Agreement, dated May 13, 2004, and as further amended by a Second Amendment to Disposition and Development Agreement, dated 26 May 2005, (collectively, the "DDA") for the construction of a 162-unit multi -family rental project on approximately 12.43 acres (Parcel 1) of a 40-acre site (the "Site") in the City of Palm Desert (the "City'). Pursuant to the DDA, the Agency is responsible for all costs associated with the following improvements: (i) bringing underground utilities, including water and sewer service, to the Site, (ii) providing street improvements on 42nd Avenue and Merle Drive, (iii) providing traffic striping as conditioned by the Planning Department, and (iv) other off -site improvements required by the City, Agency or other agencies. B. The Agency entered into an Agreement with ComDyn PD, LLC for Fee Developer Services for Agency Owned Property Located in the City, dated as of August 26, 2005, for the development of a portion of the remainder of the Site (Parcel 2) with an affordable senior rental housing project consisting of 27 units and 94 single- family for -sale homes that will be available to and occupied by persons and families of low or moderate income (together with the units described in paragraph A., above, the "Affordable Housing Units"). Infrastructure required to serve these units on Parcel 2 consist of (i) street improvements along the border between Parcel 1 and Parcel 2 between 42nd Avenue and Merle Drive and along the north side of Merle Drive between the western boundary of the Site and Cook Street, including pavement, curb, gutter and sidewalks, (ii) new sewer and water mains and (iii) gas, electrical, telephone and cable televisions services (together with the improvements described in paragraph A., above, the "Improvements"). C. Pursuant to the provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000, et seq.) and in particular, Sections 33334.2(e)(2) and 33445 thereof, the Agency may pay for the cost of the Improvements. D. On January 22, 2004, the City Council of the City of Palm Desert (the "City Council") adopted Resolution No. 04-2, which approved payment by the G:\RDA\Beth Longman\Staff Reports\Aylaian\CC Resolution Approving Add'l Housing Funds.doc Resolution No.05-80 Agency for the cost of the Improvements and for certain other improvements for the Site, and the City Council made the findings and determinations required by the Community Redevelopment Law with respect to such payments. E. Resolution No. 04-2 approved payment for the cost of the Improvements from any revenues of the Agency lawfully available therefor, including funds held in the Agency's Low and Moderate Income Housing Fund (the "Housing Fund") in a manner determined pursuant to Health and Safety Code Section 33334.2 (e) (2) in an amount not to exceed $2,100,000. F. The Agency has spent approximately $1,650,000 from the Housing Fund to date for the Improvements and the City Council has determined that the cost of the installation and construction of the Improvements requires additional funds. THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The above recitals, and each of them, are true and correct. Section 2. The City has no moneys available to pay for the cost of the Improvements. The budget constraints of the City prevent the City from financing the cost of the Improvements. Traditional methods of financing such as the issuance of general obligation bonds are unavailable as a practical matter because of the extraordinary majority voter approval requirements of two-thirds of the electorate. Assessment financing or special tax financing could overburden benefiting properties with assessments or special taxes and, in addition, special taxes require a two-thirds vote and assessments are subject to a majority protest. Section 3. The City Council hereby confirms the findings and determinations of the City Council relating to the Improvements set forth in Sections 2 and 4 of Resolution No. 04-2. G:\RDA\Beth Longman\Staff Reports\Aylaian\CC Resolution Approving Add'I Housing Funds.doc 2 Resolution No. 05-80 Section 4. The City Council hereby approves payment of an additional amount not to exceed $3,895,000 for the cost of installation and construction of the Improvements from any revenues of the Agency lawfully available therefor, including funds held in the Housing Fund and the proportion of the costs of the Improvements to be paid for out of the Housing Fund shall be determined in accordance with Health and Safety Code Section 33334.2(e)(2). PASSED, APPROVED and ADOPTED this day of , 2005. AYES: NOES: ABSENTS: ABSTAINS: Buford A. Crites, Mayor Attest: Rachelle D. Klassen. City Clerk G:\RDA\Beth Longman\Staff Reports\Aylaian\CC Resolution Approving Add'l Housing Funds.doc 3 RESOLUTION NO. 507 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING PAYMENT BY THE AGENCY FOR THE COST OF THE INSTALLATION AND CONSTRUCTION OF CERTAIN PUBLIC IMPROVEMENTS, INCLUDING IMPROVEMENTS FOR AFFORDABLE MULTI -FAMILY HOUSING, SENIOR RENTAL HOUSING AND SINGLE FAMILY HOMES FOR SALE RECITALS: A. The Palm Desert Redevelopment Agency (the "Agency") entered into a Disposition and Development Agreement with Palm Desert Development, dated June 14, 2001, as amended by an Amendment to Disposition and Development Agreement, dated May 13, 2004, and as further amended by a Second Amendment to Disposition and Development Agreement, dated 26 May 2005, (collectively, the "DDA") for the construction of a 162-unit multi -family rental project on approximately 12.43 acres (Parcel 1) of a 40-acre site (the "Site") in the City of Palm Desert (the "City"). Pursuant to the DDA, the Agency is responsible for all costs associated with the following improvements: (i) bringing underground utilities, including water and sewer service, to the Site, (ii) providing street improvements on 42nd Avenue and Merle Drive, (iii) providing traffic striping as conditioned by the Planning Department, and (iv) other off -site improvements required by the City, Agency or other agencies. B. The Agency entered into an Agreement with ComDyn PD, LLC for Fee Developer Services for Agency Owned Property Located in the City, dated as of August 26, 2005, for the development of a portion of the remainder of the Site (Parcel 2) with an affordable senior rental housing project consisting of 27 units and 94 single- family for -sale homes that will be available to and occupied by persons and families of low or moderate income (together with the units described in paragraph A., above, the "Affordable Housing Units"). Infrastructure required to serve these units on Parcel 2 consist of (i) street improvements along the border between Parcel 1 and Parcel 2 between 42nd Avenue and Merle Drive and along the north side of Merle Drive between the western boundary of the Site and Cook Street, including pavement, curb, gutter and sidewalks, (ii) new sewer and water mains and (iii) gas, electrical, telephone and cable televisions services (together with the improvements described in paragraph A., above, the "Improvements"). C. Pursuant to the provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000, et seq.) and in particular, Sections 33334.2(e)(2) and 33445 thereof, the Agency may pay for the cost of the Improvements. D. On January 22, 2004, the Agency adopted Resolution No. 489, which approved payment by the Agency for the cost of the Improvements and for G:\RDA\Beth Longman\Staff Reports\Aylaian\Agency Resolution Approving Add'l Housing Funds.doc Resolution No. 507 certain other improvements for the Site, and the Agency made the findings and determinations required by the Community Redevelopment Law with respect to such payments. E. Resolution No. 489 approved payment for the cost of the Improvements from any revenues of the Agency lawfully available therefor, including funds held in the Agency's Low and Moderate Income Housing Fund (the "Housing Fund") in a manner determined pursuant to Health and Safety Code Section 33334.2 (e) (2) in an amount not to exceed $2,100,000. F. The Agency has spent approximately $1,650,000 from the Housing Fund to date for the Improvements and the Agency has determined that the cost of the installation and construction of the Improvements requires additional funds. THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The above recitals, and each of them, are true and correct. Section 2. The City has no moneys available to pay for the cost of the Improvements. The budget constraints of the City prevent the City from financing the cost of the Improvements. Traditional methods of financing such as the issuance of general obligation bonds are unavailable as a practical matter because of the extraordinary majority voter approval requirements of two-thirds of the electorate. Assessment financing or special tax financing could overburden benefiting properties with assessments or special taxes and, in addition, special taxes require a two-thirds vote and assessments are subject to a majority protest. Section 3. The Agency hereby confirms the findings and determinations of the Agency relating to the Improvements set forth in Sections 2 and 4 of Resolution No. 489. G:\RDA\Beth Longtnan\Staff Reports\Aylaian\Agency Resolution Approving Add'I Housing Funds.doc 2 Resolution No. 507 Section 4. The Agency hereby approves payment of an additional amount not to exceed $3,895 ,000 for the cost of installation and construction of the Improvements from any revenues of the Agency lawfully available therefor, including funds held in the Housing Fund and the proportion of the costs of the Improvements to be paid for out of the Housing Fund shall be determined in accordance with Health and Safety Code Section 33334.2(e)(2). PASSED, APPROVED and ADOPTED this day of , 2005. AYES: NOES: ABSENTS: ABSTAINS: Buford A. Crites, Chairman Attest: Rachelle D. Klassen, Secretary G:\RDA\Beth Longman4Staff Reports\Aylaian\Agency Resolution Approving Add'l Housing Funds.doc 3