Loading...
HomeMy WebLinkAboutMinutes - City Council - 2008-06-16 - Special Meeting 105 City Council, Special Meeting Council Chambers 777 Cypress Avenue Redding, California June 16,20085:15 p.m. The meeting was called to order by Mayor Stegall with the following Council Members present: Bosetti, Dickerson, Jones, and Murray. I Also present were City Manager Starman, City Attorney Duvernay, and Assistant City Manager Tippin. JOINT MEETING OF THE CITY COUNCIL AND REDDING REDEVELOPMENT AGENCY JOINT PUBLIC HEARING - DISPOSITION OF AGENCY -OWNED PROPERTY AT 657 P ARKVIEW A VENUE TO COMMUNITY REVIT ALIZA nON AND DEVELOPMENT CORPORA nON AND ASSOCIATED DISPOSITION AND DEVELOPMENT AGREEMENT (R-030-l00-055) The hour of 5:15 p.m. having arrived, Chair Bosetti and Mayor Stegall opened the public hearing regarding the disposition of Redding Redevelopment Agency (RRA )-owned property at 657 Parkview Avenue to Community Revitalization and Development Corporation (CRDC) and the associated Disposition and Development Agreement (DDA). The following documents are on file in the Office of the City Clerk: Affidavit of Publication - Notice of Public Hearing Assistant City Clerk Sherman advised that no comments had been received. I Assistant City Manager Tippin provided an overview of the Report to City Council and Redding Redevelopment"Agency (Agency) dated June 10, 2008, incorporated herein by reference, concerning the disposition of Agency-owned property located at 657 Parkview Avenue to CRDC. Mr. Tippin summarized that in May 2007, CRDC submitted a letter of interest to the Agency to purchase its property located at 657 Parkview Avenue for construction of a mixed-use development consisting of an 1, I OO-square- foot office and two I ,600-square- foot, four- bedroom units for low- and moderate-income housing. The project's estimated cost is $709,860, of which approximately $229,860 is ascribed to the office portion of the project and $480,000 to the residential. Accordingly, a Disposition and Development Agreement (DDA) has been prepared which provides for the disposition ofthe property to CRDC for its fair market value of $74,000, as well as funding totaling $480,000 for the project's residential component. I In order for the project to move forward, Mr. Tippin explained that the following actions must be taken by the City Council following the public hearing, as required by Health and Safety Code Section 33433, and its review of the Property Disposition Report: Find that the sale of the property will assist in the elimination of blight or provide housing for low- or moderate-income individuals and is consistent with the Market Street Implementation Plan; Find that the consideration is not less than the fair market value at its highest and best use in accordance with the Plan; and Authorize the Mayor to execute the DDA between the City, the Agency, and CRDC providing $240,000 in HOME funds in the form of a 25-year, zero interest, amortized loan for the construction of one residential unit. In addition, the Agency's Board of Directors (Board), following a public hearing as required by Health and Safety Code Section 33431, must: Approve the sale of the property for its fair market value of$74,000; Authorize the Chair to execute all documents necessary to transfer title to the property; and Authorize the Chair to execute the DDA between the Agency, the City, and CRDC providing $240,000 in Housing Set-Aside Funds in the form of a 30-year, one percent, residual receipts loan. Chair Bosetti and Mayor Stegall noted that there was no one present wishing to speak on the matter and closed the public hearings. 6/16/2008 106 In response to Agency/Council Member Murray, Dave Rutledge, CRDC's Chief Executive Officer, explained that because larger families tend to create more wear-and-tear on smaller two bedroom units, the CRDC's philosophy is to build larger four-bedroom affordable housing projects to better serve and accommodate larger families. Agency/Council Member Murray stated that a private lender would have an interest in the entire parcel, including the residential component and wanted assurance that the City's and Agency's funding and covenants would not be jeopardized in the event of foreclosure. City Manager Starman confirmed that private financing would most likely be structured whereby the comrnerciallender or lending institution would be in first position, with the City and Agency in second and third positions, respectively. I Associate Redevelopment Project Coordinator Bade noted that both the City's and Agency's financing are structured so that no funding in excess of 100 percent of the loan to value would be provided for the completion of the project's residential component. City Attorney Duvernay noted that the affordability covenants could be recorded prior to the deed or encumbrance, and any subsequent subordination would be such that said covenants were not extinguished. MOTION: Made by Council Member Murray, seconded by Council Member Jones, that Resolution No. 2008-60 be adopted, a resolution of the City Council ofthe City of Redding making findings that: (1) the sale of the property located at 657 Parkview Avenue will provide housing for low- and moderate-income persons and is consistent with the Market Street Implementation Plan adopted pursuant to Section 33490 of the California Health and Safety Code; and (2) that consideration is not less than the fair market value of the fair reuse value in accordance with the highest and best use under the Redevelopment Plan and (3) approve the sale of the Property and the provision of up to $240,000 in HOME Program funding; and authorized the Mayor to execute the Disposition and Development Agreement with the Redding Redevelopment Agency, and the Community Revitalization and Development Corporation subject to requiring that the affordability covenants be recorded prior to the deed or encumbrance, and any subsequent subordination be such that said covenants would not be extinguished. The Vote: AYES: Council Members - Dickerson, Bosetti, Jones, Murray and Stegall NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - None I Resolution No. 2008-60 is on file in the office ofthe City Clerk. There being no further business, at the hour of 6: 19 p.m., Mayor Stegall declared the meeting adjourned. APPROVED ~iM~~ Mayo ATTEST: I ~ 6/16/2008