RES-ORA-0445 Approval Agreement for Olson Urban Housing LLCI
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RESOLUTION NO. ORA-
0445 A RESOLUTION OF THE
ORANGE REDEVELOPMENT AGENCY APPROVING
A DISPOSITION AND DEVELOPMENT
AGREEMENT BY AND BETWEEN THE
ORANGE REDEVELOPMENT AGENCY AND OLSON
URBAN HOUSING, LLC REGARDING PROPERTY
LOCATED AT MANCHESTER PLACE AND COMPTON
AVENUE IN THE ORANGE MERGED AND
AMENDED REDEVELOPMENT PROJECT AREA 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. 2101, pursuantto
the California Community Redevelopment Law (commencing with Section 33000 of the Health
and Safety Code and hereinafter referred to as the CRL);
and WHEREAS, pursuant to Sections33334.2(a) and 33334.6(c) ofthe CRL, not less than
20%of all taxes which are allocated to the Orange Redevelopment Agency (Agency) from the
Merged Redevelopment Project 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 33334.2 ofthe CRL, the Agency may
use Housing Funds to assist in the provision of housing for low and
moderate income households; and WHEREAS, using Housing Funds, the Agency has acquired and
owns certain real property located generally at the intersection of Manchester Place and Compton A
venue (the Property), which is located within the boundaries of
the Project Area; and WHEREAS, Olson Urban Housing, LLC (Developer) has proposed
to develop the Property with eighteen (18) townhome condominium units (the Units), nine (9) of
which wilI be made available and sold exclusively to moderate income
purchasers (the Project); and WHEREAS, Developer has proposed to enter into
a Disposition and Development Agreement (the Agreement) with the Agency, pursuant to which: (a) the
Agency would sell the Property to Developer for a purchase price that is not less than the fair
market value ofthe Property,at its highest and best use in accordance with the Redevelopment Plan; and (
b) the Developer would sell nine (9) ofthe Units in the Project to moderate income purchasers for
an
WHEREAS, Developer has executed and submitted to the Agency and the City Council
copies of the proposed Agreement, in a form that is acceptable to Developer; and
WHEREAS, pursuant to the California Community Redevelopment Law (California Health
and Safety Code, Section 33000 et seq.), the Agency and the City Council held ajointpublic hearing
IontheproposedconveyanceofthePropertypursuanttotheAgreement, having duly published notice
of such public hearing and made copies ofthe proposed Agreement, and other reports and documents
available for public inspection and comment; and
WHEREAS, the Agency has duly considered all terms and conditions of the proposed
conveyance of the Property and believes that the development of the Property pursuant to the
proposed Agreement is in the best interest of the City and the health, safety, morals 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 Orange Redevelopment Agency 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 I. The foregoing recitals are true and correct.
Section 2. The Agency recognizes that it has received and heard all oral and written
objections to the proposed Disposition and Development Agreement, to the proposed sale ofthe real
property pursuant to the proposed Agreement, and to other matters pertaining to this transaction, and
that all such oral and written objections are hereby overruled.
Section 3. The Agency hereby finds that the consideration to be paid by the Developer for
the Property as described in the Agreement is not less than the fair market value ofthe Property at its
highest and best use in accordance with the Redevelopment Plan.
Section 4. The Agency hereby finds that the sale of the Property will provide housing for
low- or moderate-income persons, specifically, moderate income households, and is consistent
with the 5-year Implementation Plan adopted by the Agency pursuant to California Health
and Safety Code Section 33490 on April
12, 2005.Section 5. The Agency hereby finds that an economicaIly feasible alternative
method of financing the Project on substantially similar terms but without subordination of the
Agency's affordable housing covenants is not reasonably available, and authorizes the Executive
Director or designee to subordinate the Agency's affordable housing covenants to the lien of Developer'
s lender,as provided in the
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Section 6. The Agency approves the Agreement and hereby authorizes and directs the
Chairman or Executive Director ofthe Agency or their designee to execute the Agreement on behalf
of the Agency 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 Agreement on behalf of the Agency.
A copy of the Agreement when executed by all parties shall be placed on file in the office of the
Agency Clerk.
Section 7. The Chairman or Executive Director, or their designee, is hereby authorized, on
behalf ofthe Agency, to sign all documents necessary and appropriate to carry out and implement the
Agreement and to administer the Agency's obligations, responsibilities and duties to be performed
under the Agreement.
ADOPTED this 13th day of September, 2005.
ATTEST:
J!::;:;tf~ibrf:,
I, MARY E. MURPHY, Clerk of the Orange Redevelopment Agency, Orange, California, do
hereby certify that the foregoing Resolution was duly and regularly adopted by the Orange
Redevelopment Agency at a regular meeting thereofheld on the 27th day of September, 2005, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
DIRECTORS: Smith, Ambriz, Murphy, Dumitru
DIRECTORS: Cavecche
DIRECTORS: None
DIRECTORS: None