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Home My WebLink AboutCC Reso No 2020-087 Purchase of Properties for Affordable Housing PurposesRESOLUTION NO. 2020-87 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS SUCCESSOR TO THE HOUSING ASSETS AND FUNCTIONS OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE UNDER HEALTH & SAFETY CODE SECTION 34176(A)(1), APPROVING A PURCHASE AND SALE AGREEMENT FOR THE PURCHASE OF REAL PROPERTY FOR AFFORDABLE HOUSING PURPOSES FROM THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE WHEREAS, the City of Lake Elsinore (“City”) is a municipal corporation organized and operating under the laws of the State of California; and WHEREAS, the Successor Agency to the Redevelopment Agency of the City of Lake Elsinore (“Successor Agency”) is a public body corporate and politic, organized and operating under Parts 1.8 and 1.85 of Division 24 of the California Health and Safety Code (“HSC”), and the successor to the former Redevelopment Agency of the City of Lake Elsinore (“former Agency”) that was previously a community redevelopment agency organized and existing pursuant to the Community Redevelopment Law, Health and Safety Code Section 33000, et seq. (“CRL”); and WHEREAS, Assembly Bill xl 26 (“AB xl 26”) added Parts 1.8 and 1.85 to Division 24 of the California Health & Safety Code and which laws were modified, in part, and determined constitutional by the California Supreme Court in the petition California Redevelopment Association. et al. v. Ana Matosantos, et al., Case No. S194861 (“Matosantos Decision”), which laws and court opinion caused the dissolution of all redevelopment agencies and winding down of the affairs of former redevelopment agencies: thereafter, such laws were amended further by Assembly Bill 1484 (“AB 1484”) (together AB xl 26, the Matosantos Decision, and AB 1484, as amended to date, referred to as the “Dissolution Law”); and WHEREAS, as of February 1, 2012, the former Agency was dissolved pursuant to the Dissolution Law and as a separate public entity, the Successor Agency administers the enforceable obligations of the former Agency and otherwise unwinds the former Agency’s affairs, all subject to the review and approval of the Oversight Board to the Successor Agency and, now, the Riverside Countywide Oversight Board (“Oversight Board”); and WHEREAS, as of February 1, 2012, the City elected to act as the successor to the housing assets and functions of the former Agency in accordance with HSC Section 34176.1(a)(3)(A) (“Housing Successor”); and WHEREAS, as part of the dissolution of the former Redevelopment Agency, Health & Safety Code Section 34177(e) requires the Oversight Board to direct the Successor Agency to dispose of the real property held by the Successor Agency; and WHEREAS, an approximately 5,641 square foot portion of APN 374-162-036 located on the northeast corner of Heald Avenue and Riley Street is home to the Mary McDonald historic landmark and was previously conveyed to the City for historic preservation purposes following approval by the Oversight Board and the Department of Finance (DOF); and DocuSign Envelope ID: 2C109B97-2BA3-4240-A4F2-9D3D97F6F66E CC Reso. No. 2020-87 Page 2 WHEREAS, the remainder portion of APN 374-162-036 comprised of approximately 17,775 square feet (the “Property”) is owned by the Successor Agency and has been identified by the City in its capacity as the Housing Successor as an opportunity site for affordable senior housing; and WHEREAS, the Property has a fair market value of $120,000, as determined by an appraisal prepared by a third party, licensed appraiser, which constitutes the purchase price set forth in the form of Purchase and Sale Agreement presented in the agenda report concurrent with the consideration of this Resolution; and WHEREAS, in accordance with the Dissolution Law, the Housing Successor has established a Low and Moderate Income Housing Asset Fund (“LMIHAF”), the proceeds of which can only be used for affordable housing purposes; and WHEREAS, there are sufficient funds in the LMIHAF to purchase the Property in accordance with the Purchase and Sale Agreement; and WHEREAS, purchase of the Property for affordable housing purposes serves the common benefit of the functions of the Housing Successor and assisting the City in meeting the State mandate to provide its regional fair share of very low income, low income and moderate income housing; and WHEREAS, by authorizing acquisition of the Property, the City Council hereby finds and determines that it is not committing itself to or agreeing to undertake any other acts or activities requiring the subsequent independent exercise of discretion by the City Council or any representative or department thereof and that any proposed development or future use of the Property shall be preceded by and in compliance with the California Environmental Quality Act (“CEQA”). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS SUCCESSOR TO THE HOUSING ASSETS AND FUNCTIONS OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE UNDER HEALTH & SAFETY CODE SECTION 34176(a)(1), DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The Recitals set forth above are true and correct and incorporated herein by reference. SECTION 2. The City, in its capacity as Housing Successor, hereby approves the purchase of the Property for a purchase price of $120,000 consistent with the terms and provisions of the Purchase and Sale Agreement between the City and Successor Agency with respect to the acquisition of the Property in substantially the form set forth in the agenda report, with such minor changes as may be mutually agreed upon by the City Manager (or his duly authorized representative), in consultation with the City Attorney. SECTION 3. The City, in its capacity as successor to the housing assets and functions of the former Agency under Health & Safety Code Section 34176(a)(1), hereby appropriates funds from the Low and Moderate Income Housing Asset Fund to fund the purchase price for the Property and other costs as set forth in the Purchase and Sale Agreement. DocuSign Envelope ID: 2C109B97-2BA3-4240-A4F2-9D3D97F6F66E CC Reso. No. 2020-87 Page 3 SECTION 4. The acquisition of the Property by the City pursuant to the Purchase and Sale Agreement is exempt from the provisions of CEQA under Section 15004(b)(2)(A) of the State CEQA Guidelines because any subsequent disposition or action taken by the City Council with respect to the future use of the Property shall be preceded by, and is conditional and contingent upon, environmental assessment and review under, and in compliance with, CEQA. SECTION 5. Upon approval by the Oversight Board and DOF, the City Manager is hereby authorized and directed to execute, and the City Clerk is hereby authorized and directed to attest, the Purchase and Sale Agreement on behalf of the City, including the acceptance in the name and on behalf of the City of a grant deed conveying to this City the above-described interest in the Property. In such regard, the City Manager is authorized to sign the final version of the Purchase and Sale Agreement after completion of any such non-substantive, minor revisions. Copies of the final form of the Agreement, when duly executed and attested, shall be placed on file in the office of the City Clerk. SECTION 6. In addition, the City Manager is authorized and directed to do any and all things, and to execute any and all additional documents, which he may deem necessary or advisable to effectuate this Resolution, including all escrow instructions and documents, which in consultation with the City Attorney, he may deem necessary or advisable in order to carry out and implement the Purchase and Sale Agreement and otherwise effectuate the purposes of this Resolution and to administer the City’s obligations, responsibilities and duties to be performed under the Purchase and Sale Agreement. The City Manager is further authorized and directed to do any and all things, and to execute any and all documents, to insure that the Property shall be utilized by the City in accordance with the Community Redevelopment Law (Part 1(commencing with Section 33000)), as amended by Health and Safety Code Section 34176.1, and, in particular, for the development of affordable housing in accordance with Health and Safety Code Section 34176.1(a)((3)(A). SECTION 7. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. SECTION 8. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions. SECTION 9. This Resolution shall take effect immediately upon its adoption. Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, this 22nd day of September 2020. Brian Tisdale Mayor Attest: Candice Alvarez, MMC City Clerk DocuSign Envelope ID: 2C109B97-2BA3-4240-A4F2-9D3D97F6F66E CC Reso. No. 2020-87 Page 4 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2020-87 was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of September 22, 2020 and that the same was adopted by the following vote: AYES: Council Members Manos, Johnson, and Sheridan; Mayor Pro Tem Magee; and Mayor Tisdale NOES: None ABSENT: None ABSTAIN: None Candice Alvarez, MMC City Clerk DocuSign Envelope ID: 2C109B97-2BA3-4240-A4F2-9D3D97F6F66E