HomeMy WebLinkAboutRDA RES 10-02RDA RESOLUTION NO. 10-02
RESOLUTION OF THE TUSTIN COMMUNITY
REDEVELOPMENT AGENCY AUTHORIZING THE
EXECUTION OF A FIRST AMENDMENT TO THE
REIMBURSEMENT AGREEMENT WITH THE CITY OF
TUSTIN
WHEREAS, the City of Tustin ("City") adopted a Specific Plan/Reuse Plan for the
former Marine Corps Air Station-Tustin ("Specific Plan/Reuse Plan") on February 3,
2003, by Ordinance No. 1257, which provides the policies, regulations, implementation
strategies and procedures necessary to guide the civilian reuse of the former Marine
Corps Air Station-Tustin ("MCAS");
WHEREAS, the City adopted the Redevelopment Plan ("Redevelopment Plan")
for the Marine Corps Air Station Tustin Redevelopment Project ("MCAS Project") on
June 2, 2003, by Ordinance No.1276, which authorizes the use within the MCAS Project
of the powers contained in the California Community Redevelopment Law (Health &
Safety Code §33000 et seq.), including, without limitation, the authorization to receive
an allocation of a portion of the property taxes paid in the MCAS Project area pursuant
to Health and Safety Code Section 33670(b) ("Tax Increment");
WHEREAS, the City has acquired from the Department of the Navy certain real
property within the MCAS Project for re-sale to developers for the development of
residential uses pursuant to the Specific Plan/Reuse Plan and the Redevelopment Plan;
WHEREAS, the Community Redevelopment Law requires that not less than
twenty percent (20%) of the Tax Increment allocated to the Tustin Community
Redevelopment Agency ("Agency") must be used by the Agency for the purposes of
increasing, improving, and preserving the community's supply of affordable housing for
persons and families of low and moderate income;
WHEREAS, the Community Redevelopment Law also requires that at least
fifteen percent (15%) of all new and substantially rehabilitated dwelling units developed
within a redevelopment project area shall be available at affordable housing cost to
persons and families of low or moderate income and shall be occupied by these
persons and families (the "Inclusionary Housing Requirement"). Not less than forty
percent (40%) of these dwelling units must be available at affordable housing cost to
very low-income households and shall be occupied by these persons and families;
WHEREAS, the Specific Plan/Reuse Plan also requires specified numbers of
affordable housing units be developed in the MCAS Project area;
WHEREAS, in order to assist the Agency with carrying out the Redevelopment
Plan and specifically the implementation of the Inclusionary Housing Requirement, the
City has re-sold and will re-sell certain real property ("Property") within the MCAS
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Project area for residential development at a price below market rates in order to permit
developers to economically develop the required number of affordable housing units
and has encumbered or will encumber such Property with covenants and deeds of trust
requiring that housing units developed on such Property remain available at affordable
housing costs to, and occupied by, persons and families of low or moderate income for
at least the periods of time prescribed by Health and Safety Code Section 33334.3(f).
The difference between the market price of such Property (including the affordable units
developed thereon) and the discounted price received by the City is hereinafter referred
to as the "City Discount;"
WHEREAS, pursuant to Section 33128 of the Health and Safety Code, the
Agency is performing a public function of the City and may have access to services and
facilities of the City; and
WHEREAS, on June 5, 2007 by minute action, the City and Agency authorized
and the City and the Agency entered into an agreement ("Reimbursement Agreement")
to:
1. Provide the terms and conditions under which the Agency will reimburse
the City for the City Discount;
2. Set forth activities, services and facilities that the City will render for and
make available to the Agency in furtherance of the activities and functions of the Agency
under the Community Redevelopment Law; and
3. Provide that the Agency will reimburse the City for actions undertaken and
costs and expenses incurred by it for and on behalf of the Agency; and
WHEREAS, the repayment obligation under the Reimbursement Agreement
currently applies only to the MCAS Project, the Agency desires to encumber tax
increment deposited into the low and moderate income housing fund of the City's two
other redevelopment projects, Town Center Redevelopment Project ("Town Center
Project") and South Central Redevelopment Project ("South Central Project") to repay
the City its obligation under the Reimbursement Agreement.
WHEREAS, the time limit on incurring indebtedness for both the Town Center
Project and South Central Project has seemingly expired and no ordinance eliminating
the time limit on incurring indebtedness pursuant to California Health and Safety Code
Section 33333.6(e)(2)(b) has been adopted, California Health and Safety Code Section
33333.6(e)(4)(A) provides for a suspension of the time limit on incurring indebtedness
as follows: "A time limit on the establishing of loans, advances, and indebtedness to be
paid with the proceeds of [tax increment] shall not prevent an agency from incurring
debt to be paid from the agency's Low and Moderate Income Housing Fund or
establishing more debt in order to fulfill the agency's affordable housing obligations, as
defined in paragraph (1) of subdivision (a) of Section 33333.8." Section 33333.8(a)(1)
goes on to define an agency's affordable housing obligations as including: (a) the
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obligation to make deposits to and expenditures from the low and moderate income
housing fund;(b) eliminate deficits in the housing fund; (c) expend or transfer an excess
surplus; (d) provide relocation assistance; (e) provide replacement housing; (f) :provide
inclusionary housing.
WHEREAS, the Agency has previously adopted resolutions for the MCAS
Project, Town Center Project and South Central Project finding that the expenditure of
monies from the low and moderate income housing fund outside of each project area
will be of benefit to each redevelopment project. Specifically, Resolution Nos. RDA ~5-
01 and RDA 05-02 adopted by the Agency on March 21, 2005, for South Central Project
and Town Center Project respectively, each state that such monies will be used to
provide low and moderate income housing at an affordable housing cost to persons and
families of low and moderate income within the territorial jurisdiction of the Agency, and
for other purposes authorized by the Community Redevelopment Law. Additionally, the
Agency on page 17 of its Mid-Term Report for the Town Center and South Central
Redevelopment Project Areas' Third Five- Year Implementation Plan (FY 2005/06 to FY
2009/10) made specific reference to its intention that the Agency would reimburse the
City for its financial assistance to the Agency in producing affordable housing units, said
reimbursement to possibly come from tax increment generated from the MCAS Project
and from housing set aside funds not only from the MCAS Project, but from Town
Center Project and South Central Project as well.
NOW, THEREFORE, THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY
DOES HEREBY RESOLVE AS FOLLOWS:
1. The Agency finds and determines that: (1) the purpose of this First
Amendment to Reimbursement Agreement is to enable the Agency to sell bonds and
pledge as security therefore money from the Low and Moderate Incoming Housing Fund
of the MCAS Tustin, South Central and Town Center Redevelopment Projects, and (2)
the First Amendment to Reimbursement Agreement is therefore a contract within the
meaning of Government Code Section 53511, subject to the validation procedures set
forth in Code of Civil Procedure Section 860 et seq.
2. The "First Amendment to Reimbursement Agreement" between the City
and the Agency, in the form attached to this resolution as Exhibit A and incorpa~ated
herein by reference, is hereby approved, and the Executive Director is hereby ctirec+ed
and authorized to execute said First Amendment to Reimbursement Agreement on
behalf of the Agency.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Tustin held on the 5t" day of January 2010.
RDA Resolution 10-02
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A?"T'EST:
~.
l ;~~-
R>?~~rding Secretary
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, Pamela Stoker, City Clerk and ex-officio Secretary of the Tustin Community
Redevelopment Agency of the City of Tustin, California, do hereby certify that the whole
number of the members of the Redevelopment Agency of the City of Tustin is five; that
the above and foregoing RDA Resolution No. 10-02 was duly passed and adopted at a
regular meeting of the Tustin Community Redevelopment Agency, held on the 5t" day of
January, 2010, by the following vote:
AGENCYMEMBER AYES:
AGENCYMEMBER NOES:
AGENCYMEMBER ABSTAINED
AGENCYMEMBER ABSENT:
FFI<~IELA PTO ER,
P.ec;~ord~ g 5ecr?tary
Amante, Nielsen, Davert, Palmer, Gavello (5)
None
(o>
(o>
Nona (~)
RDA Resolution 10-02
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EXHIBIT A
FIRST AMENDMENT TO REIMBURSEMENT AGREEMENT
[To Be inserted.]
1271387vi 29 1 7 1 /000 1 Exhibit A
FIRST AMENDMENT TO REIMBURSEMENT AGREEMENT
BETWEEN THE
CITY OF TUSTIN
AND
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
RELATED TO AFFORDABLE HOUSING RESPONSIBILITIES TO BE
ASSUMED
BY THE AGENCY
This First Amendment ("First Amendment"} is entered into as of the 5th day of
January, 2010 ("Effective Date"}, by and between the CITY OF TUSTIN, a municipal
corporation ("City") and the TUSTIN COMMUNITY REDEVELOPMENT AGENCY, a
public body corporate and politic ("Agency").
RECITALS
A. The City has previously acquired from the Department of the Navy certain
real property within the Marine Corps Air Station-Tustin Redevelopment Project
{"MCAS Project") for resale to developers for the development of residential uses
including specified numbers of affordable housing units pursuant to the Specific
Plan/Reuse Plan and the Redevelopment Plan.
B. On June 5, 2007, the City and the Agency entered into an agreement
("Reimbursement Agreement") pursuant to which the Agency agreed to reimburse the
City from Tax Increment received by the Agency from the MCAS Project and other
available Agency sources, including funds deposited into the Agency's low and moderate
income housing fund far the MCAS Project, the difference between the market value of
the affordable units and the affordable sale price of such affordable housing units. This
difference, represented by the gap funding assistance provided to affordable homebuyers
with promissory notes by second deeds of trust in favor of the City, was referred to in the
Reimbursement Agreement as the "Housing Affordability Subsidy."
C. While the repayment obligation under the Reimbursement Agreement
applies s to the MCAS Project and other available Agency sources and was intended to
also apply to the Town Center and South Central Project Area as identified in the
Reimbursement Agreement City Council and Agency staff reports and authorizations
dated June 5, 2009 , the Agency desires to make it explicitly clear that the Agency may
also encumber tax increment deposited into the low and moderate income housing fund
of the City's two other redevelopment projects, Town Center Redevelopment Project
("Town Center Project") and South Central Redevelopment Project ("South Central
Project"), to repay the City its obligation under the Reimbursement Agreement.
i2~iiozv~z9i~~ioooi
D. Though the time limit on incurring indebtedness for both the Town Center
Project and South Central Project has seemingly expired and no ordinance eliminating the
time limit on incurring indebtedness pursuant to California Health and Safety Code
Section 33333.6(e)(2)(b) has been adopted, California Health and Safety Cade Section
33333.6(e)(4)(A) provides for a suspension of the time limit on incurring indebtedness as
follows: "A time limit on the establishing of loans, advances, and indebtedness to be paid
with the proceeds of [tax increment] shall not prevent an agency from incurring debt to
be paid from the agency's Low and Moderate Income Housing Fund or establishing more
debt in order to fulfill the agency's affordable housing obligations, as defined in
paragraph (1) of subdivision (a) of Section 33333.8." Section 33333.8(a)(1) goes on to
define an agency's affordable housing obligations as including: (a) the obligation to make
deposits to and expenditures from the low and moderate income housing fund; (b)
eliminate deficits in the housing fund; (c) expend or transfer an excess surplus; (d)
provide relocation assistance; (e) provide replacement housing; (f) provide inclusionary
housing."
E. The Agency has previously adopted resolutions for all three
redevelopment projects finding that the expenditure of monies from the low and moderate
income housing fund outside of each project area will be of benefit to each
redevelopment project. Specifically, Resolution Nos. RDA OS-O1 and RDA OS-02
adopted by the Agency on March 21, 2005, for South Central Project and Town Center
Project respectively, each state that such monies will be used to provide low and
moderate income housing at an affordable housing cost to persons and families of low
and moderate income within the territorial jurisdiction of the Agency, and for other
purposes authorized by the California Community Redevelopment Law (Health & Safety
Code §§33000 et seq.). Additionally, the Agency, on page 17 of its Mid-Term Report for
the Town Center and South Central Redevelopment Project Areas' Third Five-Year
Implementation Plan (FY 2005/Ob to FY 2009/10) made specific reference to its intention
that the Agency would reimburse the City for its financial assistance to the Agency in
producing affordable housing units, said reimbursement to possibly come from tax
increment generated from the MCAS Project and from housing set aside funds not only
from the MCAS Project, but from Town Center Project and South Central Project as well.
F. Capitalized terms used but not defined herein shall have the meaning
ascribed to them in the Reimbursement Agreement.
THEREFORE, the parties agree as follows:
1. Project: All references to the defined term "Project" in the
Reimbursement Agreement shall be deemed to refer to the Marine Corps Air Station-
Tustin Redevelopment Project.
2. Amendment of Recital H: Recital H of the Reimbursement Agreement is
hereby deleted in its entirety and replaced with the following:
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"H. To assist the Agency in ensuring that such affordable housing units
developed on such Property are sold and remain available at affordable
housing costs to, and occupied by, persons and families of low or
moderate income at a subsidized affordable sale price for at least the
periods of time prescribed by Health and Safety Code Section 33334.3(f),
and to provide for future ongoing monitoring requirements for such
affordable units under Health and Safety Code Section 33418, the City
has encumbered or will encumber such units with covenants and deeds of
trust. The difference between the market value of such units and the
affordable sale price of such affordable housing units (which difference
includes the discounted sale price of the Property received by the City) is
represented by promissory notes and secured by second deeds of trust in
favor of City, hereinafter referred to as the "Housing Affordability
Subsidy."
3. Amendment of Recital I: Recital I of the Reimbursement Agreement is
hereby deleted in its entirety and replaced with the following:
"I. As of the date of this Agreement, the City has resold to developers
for residential development Property on which a total of Five Hundred
Sixty Five (565) housing units will be constructed. Of the Five Hundred
and Sixty Five (565) housing units to be constructed, One Hundred
Eighteen (118} units are restricted consistent with the Inclusionary
Housing Requirement, pursuant to an Affordable Housing Covenant and
an Affordable Housing Deed of Trust. The City's Housing Affordability
Subsidy for the units sold as of the date of this Agreement is Forty Six
Million Four Hundred Seven and Seven Hundred and Thirty Six
DOLLARS ($46,407,736) which amount has not yet been repaid to the
City.
The City also anticipates reselling additional Property to developers for
residential development on which a total of two thousand one hundred
and five (2,105) housing units will be constructed, with two hundred
(200) additional for sale units currently to be restricted with the
Inclusionary Housing Requirement. The City's Housing Affordability
Subsidy for these additional units in the future is currently estimated at
$62,296,000."
4. Amendment of Paragraph l: Paragraph 1 of the Reimbursement
Agreement is hereby deleted in its entirety and replaced with the following:
"l. The Agency agrees to reimburse the City for the Affordable
Housing Subsidy from (a} Tax Increment received by the Agency from
the MCAS Project or other available Agency sources, and (b) tax
increment deposited into the low and moderate income housing fund from
the MCAS Project, Town Center Project and South Central Project for
~z~i ioz~~ z9i~~ioooi
use within the territorial jurisdiction of the Agency. The City and the
Agency agree that as of the date of this Agreement, the amount of the;
Affordable Housing Subsidy is Forty Six Million Four Hundred Seven
and Seven Hundred and Thirty Six DOLLARS ($4b,407,736) which
amount has not yet been repaid to the City."
5. Incorporation of Recitals: Each recital set forth in the Reimbursement
Agreement and above in this First Amendment shall be deemed a part of the
Reimbursement Agreement as amended by this First Amendment.
6. First Amendment. This First Amendment constitutes a part of the
Reimbursement Agreement and any reference in any document to the Reimbursement
Agreement shall be deemed to include a reference to such Reimbursement Agreement as
amended hereby.
7. Full Force and Effect: Except as otherwise amended hereby, all terms,
covenants, conditions and provisions of the Reimbursement Agreement shall remain in
full force and effect.
IN WITNESS WHEREOF, the parties have executed this First Amendment as of
the Effective Date.
CITY OF TUSTIN, a municipal corporation
ATTEST.'
By:
PAM STOKER
CITY CLERK
"CITY"
By:
APPROVED AS TO FORM.•
DOUG HOLLAND
CITY ATTORNEY
William A. Huston
City Manager
1271102v1 29171/OOOI
TUSTIN COMMUNITY REDEVELOPMENT
AGENCY, a public body corporate and politic
"AGENCY"
By:
William A. Huston
Executive Director
1271102v1 29171/0001