HomeMy WebLinkAbout92-94 - Agreement with Redevelopment Agency -Costa Mesa Village Housing Project;239
RESOLUTION NO. 92-94
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF COSTA MESA, CALIFORNIA, APPROVING A
COOPERATION AGREEMENT WITH THE COSTA MESA
REDEVELOPMENT AGENCY FOR THE FINANCING OF
THE COSTA MESA VILLAGE SINGLE ROOM
OCCUPANCY HOUSING PROJECT,
WHEREAS, Costa Mesa Village, Ltd., a California limited partnership ("Developer"),
has contracted to purchase certain real property located within the City of Costa Mesa at 2450
Newport Boulevard (the "Property"), along with improvements on the Property, including,
among other things, the ninety-six (96) unit motel known as the Travelodge (the
"Improvements"); and
WHEREAS, the Developer desires to rehabilitate the Improvements and convert the units
therein from hotel use to ninety-six (96) single -room occupancy ("SRO") units which will be
made available at affordable housing cost to very low income households and one (1) manage-
ment unit to be made available at affordable housing cost to a low income household; and
WHEREAS, the Agency is required by Health and Safety Code Section 33334.2 et seq.
to expend a certain percentage of property taxes allocated to it for the purpose of increasing,
improving, and preserving the City of Costa Mesa's supply of low- and moderate -income
housing available at an affordable housing cost; and
WHEREAS, the Agency desires to provide financial assistance to the Developer for land
acquisition costs in the form of a loan for a total amount of Five Hundred Thousand Dollars
($500,000.00)(the "Loan"), utilizing approximately Three Hundred Thousand Dollars
($300,000.00) in funds borrowed from the Orange County Housing Authority (the "Authority")
and Two Hundred Thousand Dollars ($200,000.00) in funds borrowed from the City in order
to extend its loan to the Developer as set forth in an Owner Participation Agreement between
the Agency and the Developer; and
WHEREAS, concurrently with the execution of the Owner Participation Agreement, the
Developer and Agency propose to enter a Loan Agreement with the Authority whereby the
Authority will provide financial assistance in the form of a loan to the Developer for certain pre -
approved pre -development costs and rehabilitation costs not exceeding Five Hundred Thousand
Dollars ($500,000.00) and for Seven Hundred Thousand Dollars ($700,000.00) of the
Developer's cost of acquiring the Property (the "Authority Loan"); and
WHEREAS, the City has obtained certain funds pursuant to the Community Development
Block Grant program of the United States Department of Housing and Urban Development, and
the City desires to expend such funds for housing activities benefiting low- and moderate -income
persons as set forth in 24 Code of Federal Regulations Section 570.200 et seq.; and
WHEREAS, the City Council has reviewed the Cooperation Agreement submitted
herewith whereby the City would agree to loan the sum of Two Hundred Thousand Dollars
($200,000.00) to the Agency to be used to provide a portion of the financial assistance to the
Developer pursuant to the Owner Participation Agreement; and
WHEREAS, the City Council finds and determines that the Cooperation Agreement is
in the best interest of the health, safety, and welfare of the City and its residents;
NOW, THEREFORE, the City Council of the City of Costa Mesa does hereby resolve
as follows:
1. The Cooperation Agreement is hereby approved.
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2. The Mayor is hereby authorized and directed to execute the Cooperation
Agreement on behalf of the City, and the City Manager is authorized and directed
to execute any further documents and take any further actions necessary or
appropriate to implement the Cooperation Agreement.
PASSED AND ADOPTED this 16th day of November, 1992.
Mayor tdf the City of Costa Mesa
ATTEST:
11 / Ze . -- 1 6) Gjlt-4-��
City Clerk of the City of Costa Me
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City Council of the City
of Costa Mesa, hereby certify that the above and foregoing Resolution No. 92-94 was duly and
regularly passed and adopted by the said City Council at a regular meeting thereof held on the
16th day of November, 1992.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City
of Costa Mesa this 17th day of November, 1992.
City Clerk and ex -officio Clerk of e
City Council of the City of Costa sa
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