RES-10052 Second Amendment Approval Development Agreement La Veta AvenueI
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RESOLUTION NO. 10052
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE APPROVING A SECOND
AMENDMENT TO DISPOSITION AND
DEVELOPMENT AGREEMENT BY AND AMONG
CITY OF ORANGE, ORANGE REDEVELOPMENT
AGENCY AND ORANGE HOUSING DEVELOPMENT
CORPORATION RELATING TO LA VETA AVENUE
BETWEEN OLIVE STREET AND LEMON STREET
AND MAKING CERTAIN FINDINGS
WHEREAS, the Amended and Restated Redevelopment Plan for the Orange Merged and
Amended Redevelopment Project Area (the Merged Redevelopment Project Area) was duly
approved by the Orange City Council on November 13, 2001 by Ordinance No. 21-01, pursuant to
the California Community Redevelopment Law (commencing with Section 33000 ofthe Health and
Safety Code and hereinafter referred to as the CRL); and
WHEREAS, pursuant to Sections 33334.2(a) and 33334.6(c) of the CRL, not less than 20%
of all taxes which are allocated to the Orange Redevelopment Agency (Agency) from the Merged
Redevelopment Proj ect Area are set aside by the Agency in its Low- and Moderate-Income Housing
Fund (Housing Fund) and used by the Agency for the purpose of increasing, improving and
preserving the community's supply of low- and moderate-income housing available at affordable
housing costs to persons and families of low- and moderate-income, including very low income
persons and families; and
WHEREAS, pursuant to Section 33334.6(a) ofthe CRL, the California State Legislature has
found and declared that the provision of affordable housing outside of redevelopment project areas
can be of direct benefit to those projects in assisting the accomplishment ofproject objectives; and
WHEREAS, pursuant to Section 33334.2(g) of the CRL, the Agency may use Housing
Funds to assist in the provision of housing for low and moderate income households, including very
low-income households, outside the boundaries of its redevelopment project areas upon resolution of
the City Council and the Agency that such use will be of benefit to the redevelopment projects; and
WHEREAS, the City is responsible for administering certain funds made available to the
City by the U.S. Department of Housing and Urban Development (HUD) under the HOME
Investment Partnerships Act Program (HOME Program) in accordance with the regulations issued by
HUD set forth in 24 CFR Part 92 (the HOME Regulations); and
WHEREAS, in order to carry out and implement such Redevelopment Plan, the Agency
sold that certain unimproved property located north of La Veta Avenue between Olive Street and
Lemon Street (the Site), which is located outside the boundaries of the Project Area, to Orange
Housing Development Corporation (OHDC), pursuant to the terms and conditions of a certain
Disposition and Development Agreement, as amended by that certain First Amendment to
Disposition and Development Agreement dated June 16,2003 (collectively, the DDA) between the
Agency, OHDC and the City of Orange (City), previously approved by the City pursuant to City
Resolution Nos. 9654 and 9746. The DDA provided for, among other things, the construction on the
Site of six (6) units of rental housing, to be made available and rented to very low income senior
citizen households for fifty-five (55) years (the Project); and
WHEREAS, construction ofthe Project has been completed for approximately $390,000.00
less than was anticipated by the DDA and therefore, the City, Agency and Developer desire to enter
into the proposed Second Amendment to Disposition and Development Agreement (the Second
Amendment) to revise the permanent financing structure for the Project envisioned by the DDA to
correlate to the actual development costs of the Project; and
WHEREAS, OHDC has submitted to the Agency and the City Council copies of the
proposed Second Amendment, in a form that is acceptable to OHDC; and
WHEREAS, the City Council has duly considered all terms and conditions ofthe proposed
Second Amendment and believes that the re-structuring of the permanent financing of Project is in
the best interest of the City and the health, safety and welfare of its residents, and in accord with the
public purposes and provisions of applicable State and local law and requirements.
NOW, THEREFORE, the City Council ofthe City of Orange resolves, on the basis ofthe
facts set forth in the agenda report presented to it and any testimony received at the meeting at which
this matter was considered, as follows:
Section 1. The foregoing recitals are true and correct.
Section 2. The City Council hereby finds and determines that the Agency's use of funds from
the Housing Fund in the re-structured maximum amount of$300, 155.68 for the permanent financing
of the Project will be of benefit to the Merged Redevelopment Project Area and is in the vital and
best interests of the City of Orange and the health, safety and welfare of its residents, and in accord
with the public purposes and provisions of applicable federal, state and local laws and requirements.
Section 3. The City Council hereby finds and determines that the City's grant of funds from
the HOME Program in the re-structured maximum amount of $484,294.09 for the permanent
financing of the Project is in accordance with the HOME Program and is in the vital and best
interests of the City of Orange and the health, safety and welfare of its residents, and in accord with
the public purposes and provisions of applicable federal, state and local laws and requirements.
Section 4. The City Council approves the Second Amendment and hereby authorizes and
directs the Mayor or City Manager, or their designee to execute the Second Amendment on behalf of
the City in the form presented at the meeting at which this matter was considered, and to take all
steps and sign all documents and instruments to carry out the Second Amendment on behalf ofthe
City. A copy of the Second Amendment when executed by all parties shall be placed on file in the
office of the City Clerk.
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Section 5. The Mayor and City Manager, or their designee, is hereby authorized, on behalf of
the City, to sign all documents necessary and appropriate to carry out and implement the Second
Amendment and to administer the City's obligations, responsibilities and duties to be performed
under the Second Amendment.
ADOPTED this 24th day of January, 2006.
f Orange
ATTEST:
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CityCleMaryE.
I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby certify that
the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at
a regular meeting thereof held on the 24th day of January 2006, by the following vote:
AYES: COUNCILMEMBERS: Smith, Ambriz, Murphy, Cavecche, Dumitru
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: None
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City Cler~, City