RES-9746 First Amendment Development Agreement Property North of La Veta Ave.RESOLUTION NO. 9746
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE APPROVING A FIRST AMENDMENT TO
DISPOSITION AND DEVELOPMENT AGREEMENT BY AND
AMONG THE CITY OF ORANGE, THE ORANGE
REDEVELOPMENT AGENCY AND ORANGE HOUSING
DEVELOPMENT CORPORATION REGARDING PROPERTY
LOCATED NORTH OF 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. 2101, pursuant to 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 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 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 33334.6(a) of the CRL, the California
State Legislature has found arld 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 will sell 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
Disposition and Development Agreement (Agreement) between the Agency, OHDC and the City of
Orange (City), previously approved by the City pursuant to City Resolution No. 9654. The
Agreemt:nt contains a description of the Site and together with the proposed First Amendment to
Disposition and Development Agreement (the First Amendment), provides 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).WHEREAS, pursuant to the First Amendment and the Agreement, (a) the Agency will
sell the Site to OHDC for a purchase price that is not less than the fair reuse value of the Site, at the
use and with the covenants and conditions and development costs required by the First Amendment
and the Agreement; (b) the Agency will lend OHDC $658,695 in Housing Funds to be used to
purchase the Site ,md develop the Project; (c) the City will make available to OHDC a grant in the amount
of 639,120 from HOME Program funds;
and WHEREAS, OHDC has submitted to the Agency and the City Council copies of
the proposed First Amendment, in a form that is acceptable to OHDC;
and WHEREAS, the Project consists of the construction of dwelling units of a
previously existing low-rent housing project and is not, therefore, a low rent housing project within
the meaning of Article XXXIV of the California Constitution requiring voter approval at an
election; and WHEREAS, pursuant to the California Community Redevelopment Law (
California Health and Safety Code, Section 3300 et seq.), the Agency and the City Council held ajoint
public hearing on the proposed First Amendment, having duly published notice of such public hearing
and made copies of the proposed First Amendment, and other reports and documents available
for public inspection and
comment; and WHEREAS, the City Council has duly considered all terms and conditions of
the proposed First Amendment and believes that the development of the Site pursuant to the
proposed First Amendment and the 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 City Council of the City of Orange resolves, on the basis
of the 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.ection 2. The City Council recognizes that it has received and heard all oral
and written objections to the proposed First Amendment to Disposition and Development Agreement
and to other matters pertaining to this transaction, and that all such oral and written objections
are
hereby overruled.ection 3. The City Council hereby finds and determines that the consideration to be
paid by OHDC for the Site as described in the First Amendment and the Agreement is not less than
the fair reuse value at the use and with the covenants and conditions and development costs
authorized
the First Amendment and the Agreement.
Section 4. The City Council hereby finds and determines that the Agency's use offunds from
the Housing Fund in the maximum amount of $658,695 for 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 5. The City Council hereby finds that the sale of the Site will provide housing for
low- or moderate-income persons, specifically, very low income senior citizen households, and
is consistent with the 5-year Implementation Plan adopted by the Agency on November
25, 1999.Section 6. The City Council approves the First Amendment and hereby
authorizes and directs the Mayor or City Manager, or their designee to execute the First 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 First Amendment on behalf of
the City.A copy of the First Amendment when executed by all parties shall be placed on file in the
office of the
City Clerk.ection 7. 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 First Amendment and to administer the City's obligations, responsibilities and duties to
be performed under the
First Amendment.ADOPTED this 10th day
ofJune, 2003.
III)
t-
ATTEST:t,,~&~Cassandra J. Cath , City Clerk, City
1, CASSANDRA J. CATHCART, 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 10th day of June 2003, by the following vote:
AYES: COUNCILMEMBERS: Ambriz, Alvarez, Murphy, Coontz, Cavecche
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: None
4.,u#~~ ~~ fA_=!
Cassandra r Catli , City Clerk, City of Orange