Resolution - 9410RESOLUTION NO. 9410
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA CONSENTING TO THE APPROVAL BY THE
REDEVELOPMENT AGENCY OF THE CITY OF WEST COVINA
OF THE DISPOSITION AND DEVELOPMENT AGREEMENT BY
• AND BETWEEN THE REDEVELOPMENT AGENCY AND
THOMAS L. SAFRAN, AND MAKING CERTAIN FINDINGS IN
CONNECTION THEREWITH
WHEREAS, the Redevelopment Agency of the City of West Covina (the
"Agency,".). is engaged in activities necessary to carry out and implement the Redevelopment Plan
for the West Covina Redevelopment Project (the "Project"); and
WHEREAS, in order to carry out and implement such Redevelopment Plan the
Agency proposes to enter into that certain Disposition and Development Agreement (the
"Agreement") with Thomas L. Safran (the "Developer") for the development of certain property
located at 1350 East San Bernardino Road within the Project Area (the "Site"), all as described in
the Agreement; and
WHEREAS, the Site is approximately 4.26 acres in size and is composed of real
property contained in three contiguous parcels, all owned by the Agency, which has been
acquired -by the Agency from Prince Lark Ellen Property, Ltd. for a purchase price of
$2,450,000; and
WHEREAS, the Developer desires to acquire fee simple title to the Site for the
purpose of developing thereon a combination of senior citizen and multifamily affordable housing
(the "Development"); and
WHEREAS, the Agency and the Developer have entered an Exclusive
Negotiating Agreement dated August 29, 1995, as modified by the Extension to Exclusive
Negotiating Agreement dated January 2, 1996, as amended and modified by the Amended and
Modified Exclusive Negotiating Agreement dated as of March 5, 1996, and as further extended
on September 17, 1996 (as so modified, the "Exclusive Negotiating Agreement"), pursuant to
which the Agency and the Developer have agreed to negotiate exclusively with each other to
reach a mutually acceptable agreement for the development of the Site; and
WHEREAS, the Developer has submitted to the Agency and the City Council of
the City of West Covina (the "City Council") copies of the Agreement in a form executed by the
Developer; and
WHEREAS, pursuant to the Agreement, the Agency desires to convey fee title to
the Site to the Developer in consideration for the Developer's construction and operation of the
Development` on the Site, and for the Agency to provide additional financial assistance to the
Developer foi the construction of the Development; and
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WHEREAS, the purchase price of the Site pursuant to the Agreement is the same
price which the Agency paid for the Site; and
WHEREAS, the parties intend that the Agreement will satisfy the obligations of
the parties under the Exclusive Negotiating Agreement to reach a mutually acceptable agreement
for the development of the Site, as well as satisfying the Agency's obligations to provide
affordable housing for persons of low and moderate income pursuant to Health and Safety Code
Sections 33334.2, et seq., and 33413(b); and
WHEREAS, pursuant to Section 33433 of the Community Redevelopment Law
(California Health and Safety Code Section 33000, et seq.), the Agency is authorized, with the
approval of the, City Council after a duly noticed public hearing, to sell the Site for development
pursuant to the Redevelopment Plan upon a determination by the City Council that the sale of the
property will either assist in the elimination of blight or provide affordable housing for low and
moderate income persons, that the consideration for such sale is not less than either the fair
market value or fair reuse value of the Site in accordance with the covenants and conditions
governing the sale and the development costs required thereof, and that the sale is consistent with
the implementation plan which has been adopted by the Agency for the Project; and
WHEREAS, a joint public hearing of the Agency and City Council on the
proposed Agreement was duly noticed in accordance with the requirements of,Health and Safety
Code Sections 33431 and 33433; and
WHEREAS, the proposed Agreement, and a summary report meeting the
requirements of Health and Safety Code Section 33433, were available for public inspection
consistent with the requirements of Health and Safety Code Section 33433; and
WHEREAS, on February 18,1997, the Agency and City Council held a joint
public hearing on the proposed Agreement, at which time the Agency reviewed and evaluated all
of the information; testimony, and evidence presented during the joint public hearing; and
WHEREAS, all actions required by all applicable law with respect to the
proposed Agreement have been taken in an appropriate and timely manner; and
WHEREAS, the Agency has reviewed the summary required pursuant.to Health
and Safety Code Section 33433 and evaluated other information provided to it pertaining to the
findings required pursuant to Health and Safety Code Section.33433; and
WHEREAS, the City Council has previously determined, in its adoption of the
resolution adding the Site to the West Covina Redevelopment Project, that the Site was blighted
and the residential units on the Site were vacant primarily as a result of building deterioration and
the undesirability of the adjacent commercial areas; and
WHEREAS, the Agreement would remove such blighting conditions by providing
for the demolition of substandard housing units on the Site and the construction of high.quality
housing in its place; and
WHEREAS, the Agency has adopted an Implementation Plan pursuant to CRL
Section 33490, which sets forth the objective of providing housing to satisfy the needs and
desires of various age, income and ethnic groups of the community, and which specifically
provides for a New Construction/Major Rehabilitation Program to produce new affordable rental
and ownership housing units through Agency assistance; and
WHEREAS, the Agreement furthers the goals of the Agency set forth in the
Implementation Plan as it will facilitate the creation of affordable housing which will serve the
residents of the neighborhood, the Project Area and the City; and
WHEREAS, the Legislature declares in Health and Safety Code Section 36000, et
seq., that new forms of cooperation with the private sector, such as leased housing, disposition of
real property acquired through redevelopment, development approvals, and other forms of
housing assistance may involve close participation with the private sector in meeting housing
needs, without amounting to development, construction or acquisition of low rent housing
projects as contemplated under Article XXXIV of the State Constitution; and
WHEREAS, Health and Safety Code Section 37001 provides that a low rent
housing project under Article XXXIV of the State Constitution does not include a development
which consists of the rehabilitation, reconstruction, improvement or addition to, or replacement
of dwelling units of a project previously occupied by lower income households; and
WHEREAS, the Development pursuant to the Agreement consists of the
rehabilitation and replacement of dwelling units of the Lark Ellen Towers and other projects
within the City which were previously occupied by lower income households; and
WHEREAS, Health and Safety Code Section 37001.5 provides that a public body
does not develop, construct or acquire a low rent housing project under Article XXXIV of the
State Constitution when the public body provides assistance to a low rent housing project and
monitors construction or rehabilitation of the project to the extent of carrying out routine
governmental functions, performing conventional activities of a lender, and imposing
constitutionally mandated or statutorily authorized conditions accepted by a grantee of assistance;
and
Febmary 12, 1997
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WHEREAS, the Agreement provides for assistance by the Agency to the
Development, and the Agency's and monitoring of construction and rehabilitation of the
Development to the extent of carrying out routine governmental functions, performing
conventional activities of a lender, and imposing constitutionally mandated or statutorily
authorized conditions accepted by a grantee of assistance; and
WHEREAS, the City Planning Commission has approved a mitigated negative
' declaration with respect to the development of the Site pursuant to the requirements of the
California Environmental Quality Act, and the Agreement is consistent in all respects with the
project which was reviewed therein; and
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WHEREAS, the City Council has duly considered all terms and conditions of the
proposed Agreement and believes that the redevelopment of the Site pursuant thereto is in the
best interests of the City of West Covina and the health, safety, and welfare of its residents, and
in accord with the public purposes and provisions of applicable state and local laws and
requirements.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
West Covina as follows:
Section 1. The City Council finds and determines that, based upon substantial
evidence provided in the record before it, the consideration for the Agency's disposition of the
Site pursuant to the terms and conditions of the Agreement is not less than the fair market value
of the Site and the fair reuse value of the Site, in accordance with covenants and conditions
governing the sale, and the development costs required under the Agreement.
Section 2. The City Council hereby finds and determines that the disposition of the
Site pursuant to the Agreement will eliminate blight within the Project Area by providing for the
proper reuse and redevelopment of a portion of the Project Area which was declared blighted for
the reasons described above.
Section 3. The City Council hereby finds and determines that the disposition of the
Site pursuant to the Agreement will provide housing for low and moderate income persons at an
affordable rent.
Section 4. The City Council hereby finds and determines that the Agreement is
consistent with the provisions and goals of the Implementation Plan.
Section 5. The City Council hereby determines that the assistance to be provided
pursuant to the Agreement does not constitute development, construction or acquisition of a
low -rent housing project within the meaning of Article XXXIV of the State Constitution. This
Resolution is hereby deemed to constitute an approval within the meaning of Health and Safety
Code Section 36005 of a proposal which may result in housing assistance benefiting persons of
low income.
Section 6. The City Council hereby consents to the approval of the Agreement by the
Agency. A copy of the Agreement when executed shall be placed on file in the office of the City
Clerk.
Febmary 12, 1997
PUBL:48253_1 1319122740.0026 3
is
Section 7. The City Clerk shall certify to the adoption of this Resolution.
The foregoing Resolution is hereby approved this 18th day of February, 1997.
In (AA 0
Mayor
ATTEST:
C 1
City Clerk -
APPROVED AS TO FORM:
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City
Council of the City of West Covina at a regular meeting hereof, held on the 18th day of
February, 1997 by the following vote, to wit: .
AYES: Council Members: Manners, McFadden, Wong, Touhey
NOES Council Members: None
ABSENT: Council Members: None
ABSTAIN: Council Members: Herfert
CITY COUNCIL OF THE CITY OF WEST
COVINA
By:
City Clerk
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