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CC Resolution 2007-004 RESOLUTION NO. 2007-004 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA APPROVING AMENDMENT NO.4 TO AN . AFFORDABLE HOUSING AGREEMENT BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND SANTA ROSA DEVELOPMENT. INC. FOR THE PROPERTY LOCATED AT THE NORTHEAST CORNER OF AVENUE 48 AND ADAMS STREET WHEREAS. the La Quinta Redevelopment Agency ("Agency") is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law ("Health & Safety Code ~ 33000 etseq.) ("CRL"); and WHEREAS, pursuant to the CRL, the City Council of the City of La Quinta ("City" or "City Council," as applicable) approved and adopted the Redevelopment Plan ("Redevelopment Plan") for Project Area No.2 ("Project Area"), on. May 16, 1989, by Ordinance No. 139; and . ' WHEREAS.a fundamental purpose of the CRL is to exp~nd the supply of low- and moderate-income housing (Health & Safety Code, ~ 33071); and WHEREAS, on or about January, 22, 2003, the Agency and Santa Rosa Development, Inc., a California corporation ("Developer") entered into that certain Affordable Housing Agreement (the "Original AHA"), pursuant to which (i) the Agency conveyed to the Developer certain real property located within the Project Area ("Property") for the Developer's subsequent development thereon of One Hundred Forty-Nine (149) sihgle~family homes for sale to senior citizens who , are at least 55 years of age and who.,are also"persons and families of moderate- income" (i.e., persons and families whoseinc:ome does riot exceed 120% 'oUhe median income for Riverside Cou~ty, adjusted for family size) (the "Project"); (ii) the Agency agreed to provide certain financial assistance to' Developer, including second trust deed assistance to qualified buyers of units in the Project in an amount not to exceed Seven Million Dollars (.$7,000;000). from the Agency's Housing Fund (the "Homebuyer Assistance"). all as more particularly described in the Original AHA; and WHEREAS, Agency and Dj'lVel6perhave amended the Original AHA on three prior occasions (collectively, the "Amendments"}; and ' Resolution No. 2007-004 Santa Rosa Development. Inc. Adopted: January 16, 2007 Page 2 WHEREAS, the Original AHA, as amended by the Amendments, is hereinafter referred to as the "AHA"; and WHEREAS, Agency and Developer have negotiated a fourth amendment to the AHA r'Amendment Nci.,4"). pursuant to which Agency would provide up, to an additional Four Million Five, Hundred Thousand Dollars ($4,500,000) of Housing Funds as Homebuyer Assistance and to enable Developer to sell homes in the P~oject to senior citizens ,liiTho are at least 55 years of age and who are also "lower income, households" (i.e., persons and families whose income does not exceed 80% of median income for Riverside County, adjusted for family size); and WHEREAS, Amendment No. 4 also includes an Amendment to the recorded Declaration bf Covenants, Conditions,' and Restrictions for Property to enable Developer to sell remaining homes in the Project to senior citizens who are at least 55 years of age and who are also lower income households ("Declaration Amendment"); and WHEREAS, Health and Safety Code Section 33433 requires the Agency prepare a Summary Report to consider the, Agency's proposed financial contribution to the Project as set forth in the AHA and Amendment No.4, that the Agency Board and the City Council conduct a noticed joint public hearing with respect to Amendment No.4, and that the approval of Amendment No. 4 be accompanied by certain findings and determinations as set forth herein; and , WHEREAS,' a~ummaryFlePbi1 for Amendme:nt No. 4. has been piepsredand the joint 'public 'hearin~ has been bonducted in accordance with applicable requirements of lliw; and , WHEREAS, the City Council and the Redevelopment Agency have considered all the information and evidence ,set forth in the Summary Report presented by the City/Agency staff and presented by persons wishing to appear and be heard concerning the impact of Amendment No.4 on'the Project Area and the City as a whole; and '. ' '. ," WHEREAS, Amendment 'No. 4 is in accordance with the Redevelopment Plan and is of benefit to the Project Area and the City of La Quinta; and ' Resolution No. 2007..004 Santa Rosa Development, Inc. Adopted: January 16, 2007 Page 3 WHEREAS, the City Council hereby determines that the Agency's financial contribution pursuant to Amendment No.4 is necessary to effectuate the . purposes of the Redevelopment Plan; and WHEREAS, Amendment No. 4 is in accordance with the Redevelopment Plan and is of benefit to the Project Area and the City of 'La Quints. . NOW, THEREFORE, BE IT RESOLVED, BY, THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AS FOLLOWS: 1. That the above recitals are true and correct and incorporated herein. 2. Amendment No. 4 effectuates the purposes of the Community Redevelopment Law (Health & Safety Code ~ 33000 et seq.) and of the Redevelopment Plan and is in the best interests of the citizens of the City of La . Quinta. . 3. The Agency's sale of the real. property identified herein will provide housing for moderate-income persons and is consistent with the Agency's Five- Year Implementation Plan, based on the findings and conclusions of the Summary Report, which 'is incorporated herein. 4. The consideration the Developer paid for the real property conveyed by the Agency is not less than the .fair reuse value at the use and with the covenants and conditions and development costs authorized I:>Y the sale, based on the findings and conclusions of thE! Summary Report. .' - . - - - . . : 5. That the La Quinta Redevelopment Agency hereby finds and. determines that Amendment No. 4 effectuates the purposes: of the Community Redevelopment Law (Health & Safety Code ~ 33000.et 'seq.) and of the Redevelopment Plan and is in the best interests of the citizens of the City of La Quinta. 6. Amendment No.4; a copy' of which is on file with the Agency Secretary, is hereby approved. The City CounCil consents to the Agency's authorization and. direction to its Executive Director and Agency Counsel to make final modifications to Amendment No. 4 that are consistent with the' substantive terms of Amendment No.4 approved hereby, and. to 'thereafter sign Amendment No.4, including the Declaration Amendment, on behalf of the Agency. Resolution No. 2007-004 Santa Rosa Development. Inc. Adopted: January 16~ 2007 Page 4 7. The City Council consents to the Agency's authorization and direction to its Executive Director to (i) sign such other and.further documents, including but not limited to subordination agreement's and escrow instructions, that require the Agency's signature, and (ii) take such other and .further actions, as may be necessary and proper to carry out the terms of the Agreement. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of La Quinta held this 16th day of 'January, 2007, by the following vote: ' . . . ,,- ,-' . ',", ' '. , ' AYES: Council Members Henderson, Kirk, OSb6rne, Sniff,l\!Iayor Adolph NOES: None ABSENT: None ABSTAIN: None ~~ DON ADOL.:PH, M or City of La Quinta, California ATTEST: VERONICAJ. TECINO; CMC, City Clerk City of La Quinta, California (CITY SEAL) Resolution No. 2007~004 Santa Rosa Development. Inc. Adopted: January 16. 2007 Page 5 APPROVED AS TO FORM: ---------