HomeMy WebLinkAboutCC Reso No 2019-013 Approve AGreement with Mission Cottages LPRESOLUTION 2019-013
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ACTING AS HOUSING SUCCESSOR, APPROVING A
DISPOSITION, DEVELOPMENT AND LOAN AGREEMENT, ADDENDUM TO
COMMITMENT LETTER AND RELATED DOCUMENTS BY AND BETWEEN
THE CITY OF LAKE ELSINORE AND MISSION COTTAGES LP
Whereas, in accordance with California Health & Safety Code Section 34172, the Redevelopment
Agency of the City of Lake Elsinore ("Former Agency") was dissolved as of February 1, 2012; and
Whereas, the City is the successor to the "housing assets" (as defined in California Health &
Safety Section 34176) and obligations of the Former Agency ("Housing Successor"), and as such
holds funds in the Low and Moderate Income Housing Asset Fund (the "LMIHAF Fund") pursuant
to California Health & Safety Code Section 34176(d); and
Whereas, the City holds certain funds ("Fund 106 Funds") which the City owns in its own right
and not as the Housing Successor; and
Whereas, Civic Partners -Elsinore, LLC ("Civic") is a party to that certain Amended and Restated
Disposition and Development Agreement ("DDA") dated as of March 8, 2011, by and among the
Redevelopment Agency of the City of Lake Elsinore ("RDA"), McMillin Summerly LLC, and Civic;
and
Whereas, pursuant to the DDA, certain funds equal to 20% of the property tax revenues generated
from Developer and Master Developer properties ("Pledged Housing Funds") are pledged to Civic
for affordable housing purposes which funds are administered by the City as the Housing
Successor; and
Whereas, on June 13, 2017, the City Council approved a Loan Commitment Letter for the
Cottages at Mission Trail Project (Original Commitment Letter) to provide financial assistance
from Pledged Housing Funds, LMIHAF and Fund 106 to a proposed 143 -unit work force housing
rental project with related amenities and facilities located at the intersection of Mission Trail &
Sedco Boulevard and commonly known as the Cottages at Mission Trail ("Project"); and
Whereas, since the approval of the Original Commitment Letter, Civic has formed Mission
Cottages LP as the Project Developer, obtained City approval of all necessary land use
entitlements, obtained approval by the California Department of Fish and Wildlife of a Section
1602 Lake Alteration Agreement, secured commitments for Low Income Housing Tax Credits and
Multi -Family Housing Revenue Bond proceeds, and satisfied the conditions to enter into a binding
loan agreement as outlined in the Original Commitment Letter;
Whereas, since the approval of the Original Commitment Letter, the City has acquired the Project
site with funds committed to the Project and desires to convey the Project Site to the Project
Developer for development of the Project in furtherance of its affordable housing goals and
requirements; and
Reso. No. 2019-013
Page 2 of 3
Whereas, the City has been allocated 1,196 very low income units, 801 low income units and 897
moderate income units as part of its regional housing allocation for the current Housing Element
period (2014 - 2021); and,
Whereas, the existing developments for low income households in the City are not likely to meet
the projected need for low income housing in the Lake Elsinore community; and,
Whereas, use of the Project Site as affordable housing serves the common benefit by assisting
the City in meeting the State mandate to provide very low income, low income and moderate
income housing; and,
Whereas, the City staff and the Project Developer have negotiated a Disposition, Development
and Loan Agreement ("DDLA") and related Project documents and City staff has prepared an
Addendum to the Original Commitment Letter to reflect the final Project financing plan; and
Whereas, the City Council has duly considered all terms and conditions of the proposed DDLA,
related Project documents and Addendum to the Commitment Letter and believes the disposition of
the Project Site pursuant thereto is in the best interests of the City, and the health, safety and welfare
of its residents, and is for the common benefit in accord with Government Code Section 37350.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY
RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The City Council hereby approves the DDLA and all exhibits thereto substantially in the
form on file with the City Clerk. The City Manager is hereby authorized and directed to execute the
DDLA and all exhibits thereto on behalf of the City, and the City Clerk is authorized and directed to
attest thereto. The City Manager is hereby authorized to modify the DDLA and exhibits thereto,
subject to City Attorney review and approval, provided such modifications do not materially alter the
business terms set forth in the DDLA. Copies of the DDLA and exhibits thereto when executed shall
be placed on file in the office of the City Clerk.
Section 2. The City Manager is hereby authorized to execute on behalf of the City such further
documents, including the Addendum to Commitment Letter, Assignment of TIF Revenues, and
Subordination Agreement (Construction/Permanent Lender) and take such further actions as may
be necessary or appropriate to carry out the City's obligations pursuant to the DDLA and
Addendum to the Commitment Letter. The City Manager is hereby authorized to modify the DDLA
and exhibits thereto, subject to City Attorney review and approval, provided such modifications do
not materially alter the business terms set forth therein and in the DDLA.
Section 3. The City Council appropriates funds in the amounts and from the City accounts as
described in the DDLA to fund the City Loan as defined in the DDLA.
Section 4. The City Clerk shall certify to the adoption of this Resolution
Section 5. This Resolution shall take immediate effect upon adoption
Reso. No. 2019-013
Page 3 of 3
ATTEST:
Mark Mahan
Deputy City Clerk
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Mark Mahan, Deputy City Clerk of the City of Lake Elsinore, California, do hereby certify that
Resolution No. 2019-013 was adopted by the City Council of the City of Lake Elsinore, California,
at the regular meeting of March 26, 2019 and that the same was adopted by the following vote:
AYES: Council Members Sheridan, Johnson and Magee; Mayor Pro -Tem Tisdale and Mayor Manos
NOES: None
ABSENT: None
ABSTAIN: None
Mark Mahan
Deputy City Clerk