RES-ORA-0426 First Amendment to Development Agreement Property North of La Veta Ave.RESOLUTION NO. ORA-
0426
A RESOLUTION OF THE ORANGE
REDEVELOPMENT AGENCY 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
Amend,:d 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
Califomia 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) ofthe CRL, not less than 20%
of all taxes which are allocated to the Orange Redevelopment Agency (Agency) from the Merged
Redevellopment 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 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 of
project
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 of Orange (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
Housing Development Corporation (OHDC), pursuant to the terms and conditions of a certain
Disposiltion and Development Agreement (Agreement) between the Agency, OHDC and the City of
Orange (City), previously approved by the Agency pursuant to Agency Resolution No. 0414. The
Agreement contains a description of the Site and together with the proposed First Amendment to
Disposiltion 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 ofthe 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 and 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, pursuant to the California Community Redevelopment Law (California
Health and Safilty 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 Agency has duly considered all terms and conditions of the proposed
First Amendment and believes that the development ofthe 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 Orange Redevelopment Agency 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:ection 1. The foregoing recitals are true and
correct.ection 2. The Agency 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
overrukd.ection 3. The Agency 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
by the First Amendment and the
Section 4. The Agency hereby finds and determines that the Agency's use of funds from the
Housing Fund in the maximum amount of$658,695 for the Project will be of benefit to the Merged
Redevelopment Proj ect 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 Agency hereby finds that the sale ofthe Site pursuant to the First Amendment
and the Agreement 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 Agency hereby finds that an economically 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
OHDC' slender.Section 7. The Agency hereby authorizes the expenditure of Housing Funds in the
form of loans to OHDC in the maximum amount of $658,695 for the Project and in accordance
with the terms and provisions set forth in the agenda report presented to the Agency and
any testimony received at the meeting at which this matter was considered and in accordance with
the First Amendment and
the Agreement.Section 8. The Agency approves the First Amendment and hereby authorizes and
directs the Chairman or Executive Director ofthe Agency or their designee to execute the First
Amendment on behalf ofthe 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 First Amendment on
behalf of the Agency. A copy ofthe First Amendment when executed by all parties shall be placed on
file in the offiee of the
Agency Clerk.5ection 9. The Chairman or Executive Director, or their designee, is hereby
authorized, on behalf of the Agency, to sign all documents necessary and appropriate to carry out and
implement the First Amendment and to administer the Agency's obligations, responsibilities and duties
to be performed under the
First Amendment.ADOPTED this 10th day of
June,
2003.M~~Y,~::
ATTEST:
1, CASSANDRA J. CATHCART, 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 thereof held on the lOth day of June, 2003, by
the following vote:
AYES: DIRECTORS: Ambriz, Alvarez, Murphy, Coontz, Cavecche
NOES: DIRECTORS: None
ABSENT: DIRECTORS: None
ABSTAIN: DIRECTORS: None
4~~
Cassandra J. Ca , Agency Clerk