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RES-8116 Approving Sale of Real Property in Southwest Redevelopment Project AreaRESOLUTION NO. 8116 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE APPROVING THE SALE OF REAL PROPERTY IN THE SOUTHWEST REDEVELOPMENT PROJECT AREA TO ORANGE HOUSING DEVELOPMENT CORPORATION AND AUTHORIZING THE EXECUTION OF A DISPOSITION AND DEVELOPMENT AGREEMENT Pixley and Almond; 1515 East Walnut) WHEREAS, the Orange Redevelopment Agency (hereinafter referred to as the "Agency") under the provision of the California Community Redevelopment Law, is engaged in activities necessary for the execution of the Redevelopment Plan for the Southwest Redevelopment Project Area (hereinafter referred to as the "Project Area"); and WHEREAS, Orange Housing Development Corporation hereinafter referred to as the "Developer") has submitted to the Agency a written offer in the form of a Disposition and Development Agreement (hereinafter referred to as the Agreement") to purchase two non-contiguous parcels ("Parcel A"consisting of certain real property at the northeast corner of PiXley and Almond: "Parcel B" consisting of 1515 East Walnut)located within the Project Area, which parcels cOllectively constitute the Site; and WHEREAS, the offer by the Developer is to purchase the Site at a price less than the fair market value of the interest( s)to be conveyed, determined at the highest and best use consistent with the Redevelopment Plan; and WHEREAS, the Developer will develop on the Site twenty-two 22) dwelling units, ten (10) of which will be required to be rented to "Very Low Income Households" at " Affordable Housing Cost", as these terms are defined pursuant to applicable provisions of the California Health and Safety Code; and WHEREAS, the provision of affordable housing units furthers the Objectives of the Redevelopment Plan and is authorized and encouraged by Section 33334.2 of the California Health and Safety Code: and WHEREAS, the Agreement provides for the return of the Site to the Agency in the event the Developer is unable to obtain financing sufficient for the development of the Site pursuant to the Agreement; and WHEREAS, in order to effectuate the provisions of that Redevelopment Plan, the Agency proposes to sell the WHEREAS, a public hearing has been duly noticed and held on the proposed sale of the Site: and WHEREAS, the Agency has duly considered all terms and conditions of the proposed sale and believes that the development of the Site pursuant to the subject Agreement is in the best interests of the City and health, safety, morals and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local law requirements; and WHEREAS, the Agency has reviewed the Report by Rosenow Spevacek Group, prepared pertaining to the Agreement, dated as of November 23, 1992 (the "Summary Report"); and WHEREAS, the Agency has received and considered the Summary Report and the environmental review on such proposed development, and as a result of its said consideration and evidence presented at the hearing on the same matter, this Agency has determined that said project will not have any significant effect on the environment other than as identified in the Environmental Assessment (Initial Study) prepared for the subject project; , NOW, THEREFORE, the City Council of the City of Orange does hereby find, determine, order and resolve as follows: Section 1. The City Council finds and determines that a sale of the Site at less than fair market value on the terms and conditions set forth in the Agreement is justified based upon (i) the restriction of ten (10) dwelling units to be developed on the Site to use for affordable housing, including the requirement that such ten (10) dwelling units may be maintained at affordable housing cost in perpetuity; and ii) the upgrading influence the proposed development will have on the Project Area and the community from the proposed development. Section 2. The sale of the Site by the Orange Redevelopment Agency to the Developer on the terms and condit~ons set forth in the Agreement is hereby approved. The City Council hereby authorizes the Agency to appropriate Tustin Street Taxable Housing Set-Aside Funding in the amount of Three Hundred Seventeen Thousand Two Hundred Dollars ($317,200) to the account number specified in the accompanying staff report for gap financing pursuant to the Agreement.Section 3. The City Council consents and approves that the Executive Director of the Agency is hereby authorized and directed to execute the Agreement and to take all steps and sign all documents and instruments including, but not limited to, grant deeds to carry out the Agreement on behalf of the Agency.11/24/ 92 3607Q/2359/076 2 - PASSED, APPROVED AND ADOPTED this 1992. 8th day of December I CITY OF ORANGE, a municipal corporation ATTEST: f5i ~';--rv City Cler 0 I 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 8th day of December , 1992, by the follo~ing vote: AYES: COUNCILMEMBERS: SPURGEON. STEINER. MAYOR BEYER, BARRERA, COONTZ NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: z9~City Cler C. 11/24/92 3607Q/2359/076 3 -