Honorable Mayor and City Council Members Honorable Chair and Agency Board Members Attention: Laura C. Kuhn, City Manager/Executive Director

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1 Agenda Item No. 9A July 12, 2011 TO: FROM: SUBJECT: Honorable Mayor and City Council Members Honorable Chair and Agency Board Members Attention: Laura C. Kuhn, City Manager/Executive Director Cynthia W. Johnston, Housing and Redevelopment Director RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF VACAVILLE (AGENCY) TERMINATING THE AMENDED AND RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND VACAVILLE COMMUNITY HOUSING (VCH) FOR 267 BENNETT HILL COURT (APN ) DISCUSSION: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VACAVILLE (CITY) GRANTING A CITY PARCEL (APN ) TO THE REDEVELOPMENT AGENCY OF THE CITY OF VACAVILLE RESOLUTIONS OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF VACAVILLE APPROVING THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF VACAVILLE AND VACAVILLE SOCIAL SERVICES CORPORATION (VSSC) FOR THE SALE OF 267 BENNETT HILL COURT (APN ) TO VSSC FOR THE RELOCATION AND EXPANSION OF OPPORTUNITY HOUSE One of the City s Strategic Plan Goals is to Promote Community Viability through comprehensive neighborhood revitalization in targeted areas. The Callen/Bennett Hill area was identified by the Neighborhood Team as an area that would benefit from revitalization efforts. Using an Affordable Housing Bond issued in August 2006, the Agency has acquired twenty-one rental complexes (eighty-two units) in this target neighborhood. Two of the acquired complexes (twelve units) are for the Opportunity House relocation and expansion project (Attachment A Callen Bennett Hill Project Map). The Opportunity House project partners are: the City, the Agency, Vacaville Community Housing (VCH), and Vacaville Social Services Corporation (VSSC- Opportunity House operator). The project recently went out to bid and bid submittals were $300,000 to $700,000 over the architect s estimate. Rather than reduce the scope of work to fit the project budget ($1.7 million), VSSC has requested that the partnership roles be changed, so that the non-profit becomes the owner, developer, and operator. By doing so, VSSC takes on the greater responsibility to garner and coordinate local community support to complete the project through donations of cash, volunteer labor, and donated materials. Because more community resources are utilized, the locally controlled project will no longer require the California Department of Housing and Community Development (HCD) funding. This also allows VSSC to phase the project if needed. VCH will remain a partner through an ex-officio position on the VSSC Board and by donating proceeds from the sale of the existing Opportunity House site to the project. In order to effectuate this request, the Amended and Restated Disposition and Development Agreement between the Agency and VCH will be terminated and a new Disposition and Development Agreement (DDA) will be executed between the Agency and VSSC with the following terms:

2 VSSC to purchase the property with an Agency 55 year, deferred loan at 0% interest, to be forgiven after 55 years for not less than fair market value. VSSC to execute an Affordability Agreement restricting rents in accordance with California Redevelopment Law. The scope of development remains the same: VSSC to demolish an existing building and rehabilitate an existing building to an approximately 9,609 square foot facility including 48 beds, laundry room, dining area, kitchen, fenced children s play area, related parking, landscaping and other improvements. (Because the development plans have received all applicable entitlements, construction will not be delayed.) VSSC to secure all construction financing through VSSC cash-on-hand, cash donation from VCH, a Community Fundraising Campaign, donated materials, and volunteer labor. VSSC to begin construction within thirty days of transfer of title and to complete construction within twelve months. The primary business points listed above have been agreed upon by VSSC and the DDA and ancillary documents are now being finalized. Staff is recommending that the City Council authorize the Redevelopment Agency s Executive Director, or her designee, to execute, implement, and make modifications to all documents necessary to complete the approved actions. Earlier this year, the Agency transferred ownership of the new Opportunity House parcel (due to pending State Redevelopment action). In order for the new DDA to be entered into, the property must now be transferred back to back to the Agency. The granting of the property by the City to the Agency does not have the potential for resulting in reasonably foreseeable direct or indirect physical change in the environment and as such, this action does not fall under the definition of a project per CEQA Guidelines Section 15378(b). In addition, it has been determined that the development of this project would have a less than significant impact on the environment pursuant to Section of the California Environmental Quality Act (CEQA). The project has also been determined to meet the exceptions regarding prevailing wages in Labor Code Section 1720(c)(4) and Labor Code Section 1720(c)(6)(E). At its meeting held on June 22, the Housing & Redevelopment Commission unanimously recommended that the City Council and Redevelopment Agency approve termination of the agreement with VCH and approve the DDA between the Agency and VSSC. FISCAL IMPACT: No General Fund Impact: There is no impact on the General Fund. The Agency loan and related staff time will be paid using Redevelopment Low-Income Housing Funds. RECOMMENDATION: City Council: 1. By simple motion, to adopt the subject resolutions and to authorize the Redevelopment Agency s Executive Director, or her designee, to execute, implement, and make minor modifications to all documents necessary to complete the approved actions. Redevelopment Agency: 1. By simple motion, to adopt the subject resolutions and to authorize the Executive Director, or her designee, to execute all documents necessary to complete the approved actions. Attachments: A: Callen/Bennett Hill Project Map B: Draft Disposition and Development Agreement

3 RESOLUTION NO. RD RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF VACAVILLE (AGENCY) TERMINATING THE AMENDED AND RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND VACAVILLE COMMUNITY HOUSING (VCH) FOR 267 BENNETT HILL COURT (APN ) WHEREAS, the Vacaville Redevelopment Agency (Agency) entered into a Disposition and Development Agreement (DDA) in 2007, an Amended and Restated DDA in 2009, and a First Amendment to the Amended and Restated DDA in 2010, collectively referred to as the ARDDA with Vacaville Community Housing (VCH); and WHEREAS, the purpose of these agreements was to sell 267 Bennett Hill Court (APN ) for fair market value to Vacaville Community Housing for the purpose of development of a new affordable housing facility for homeless individuals and families to replace the facility currently located at 712 Catherine Street in Vacaville and provide an acquisition loan in the amount of $1,912,500 within the city limits of Vacaville; and WHEREAS, both VCH and the Agency have mutually determined that the project will benefit from the termination of the ARDDA. NOW, THEREFORE, BE IT RESOLVED, that the Redevelopment Agency of the City of Vacaville does hereby approve the termination of the agreements collectively referred to as the ARDDA, and authorizes the Executive Director, or her designee, to execute, implement and make minor modifications to all documents necessary to complete the approved actions I HEREBY CERTIFY that the foregoing resolution was introduced and passed at a noticed joint meeting of the City Council and the Redevelopment Agency of the City of Vacaville held on the 12th day of July 2011, by the following vote: AYES: NOES: ABSENT: ATTEST: Michelle A. Thornbrugh, Recording Secretary

4 RESOLUTION NO RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VACAVILLE (CITY) GRANTING A CITY PARCEL (APN ) TO THE REDEVELOPMENT AGENCY OF THE CITY OF VACAVILLE (AGENCY) WHEREAS, the City of Vacaville ( City ) is the current owner of APN , a parcel located at the corner of Bennett Hill Court and Bennett Hill Drive; and WHEREAS, upon obtaining the Grant Deed for the property at APN from the Redevelopment Agency of the City of Vacaville ( Agency ), City agreed to use, or continue using, the property to further the redevelopment purpose for which it was obtained by the Agency; and WHEREAS, the Agency desires to enter into agreements to transfer the property to Vacaville Social Services Corporation ( VSSC ) for the development of a new affordable housing facility for homeless individuals and families to replace the facility currently located at 712 Catherine Street in Vacaville; and WHEREAS, the property transfer will assist in the further elimination of blighting conditions inside the Redevelopment Project Area because it will cause improvements to the property that complement the residential land uses in adjoining areas that are within the Redevelopment Plan Area in place of the existing structure; and WHEREAS, the granting of the parcel (APN ) from the City to the Agency as described does not have the potential, in and of itself, for resulting in reasonably foreseeable direct or indirect physical change in the environment and as such, this action does not fall under the definition of a project per CEQA Guidelines Section 15378(b). NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Vacaville does hereby approve the granting of a parcel located at the corner of Bennett Hill Court and Bennett Hill Drive (APN ) to the Redevelopment Agency of the City of Vacaville and authorizes the City Manager or her designee to execute and implement any and all documents necessary for this transfer of title. I HEREBY CERTIFY that the foregoing resolution was introduced and passed by the City Council of the City of Vacaville, at its regular meeting of July 12, 2011, by the following vote: AYES: NOES: ABSENT: ATTEST: Michelle A. Thornbrugh, City Clerk

5 RESOLUTION NO RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VACAVILLE (CITY) APPROVING THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF VACAVILLE (AGENCY) AND VACAVILLE SOCIAL SERVICES CORPORATION (VSSC) FOR THE SALE OF 267 BENNETT HILL COURT (APN ) TO VSSC FOR THE RELOCATION AND EXPANSION OF OPPORTUNITY HOUSE WHEREAS, the Redevelopment Agency of the City of Vacaville ( Agency ) owns the parcel in Vacaville, California, APN on Bennett Hill Court, and the Agency acquired the property to remove blight and for the future development of land uses compatible with adjoining residential land uses; and WHEREAS, the City Council of the City of Vacaville (the City Council ) adopted the Redevelopment Plan for the Vacaville Community Redevelopment Project Area (the Redevelopment Plan ) on June 28, 1982 by Ordinance No. 1164, as amended from time to time, and the proposed project is consistent with the implementation plan adopted pursuant to Section of the Health and Safety Code; and WHEREAS, the purpose of the transfer of the Agency property to Vacaville Social Services Corporation ( VSSC ) is for the development of a new affordable housing facility for homeless individuals and families to replace the facility currently located at 712 Catherine Street in Vacaville; and WHEREAS, the proposed transfer of property will assist in the further elimination of blighting conditions inside the Redevelopment Project Area because it will cause improvements to the property that complement the residential land uses in adjoining areas that are within the Redevelopment Plan Area in place of the existing structure; and WHEREAS, the Agency and VSSC will transfer the property according to the terms of a Disposition and Development Agreement and the price per square foot is not less than fair market value as determined by an independent appraiser; and WHEREAS, the Community Development Department of the City of Vacaville has determined that the project would have a less than significant impact on the environment pursuant to Section of the California Environmental Quality Act. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Vacaville does hereby approve the Disposition and Development Agreement between the Redevelopment Agency of the City of Vacaville and Vacaville Social Services Corporation (VSSC) for the acquisition of 267 Bennett Hill Court (APN ) by VSSC for the relocation and expansion of Opportunity Housing and authorizing the Redevelopment Agency s Executive Director, or her designee, to execute, implement and make minor modifications to all documents necessary to complete the approved actions. I HEREBY CERTIFY that the foregoing resolution was introduced and passed by the City Council of the City of Vacaville, at its regular meeting of July 12, 2011, by the following vote: AYES: NOES: ABSENT: ATTEST: Michelle A. Thornbrugh, City Clerk

6 RESOLUTION NO. RD RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF VACAVILLE (AGENCY) APPROVING THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND VACAVILLE SOCIAL SERVICES CORPORATION (VSSC) FOR THE SALE OF 267 BENNETT HILL COURT (APN ) TO VSSC FOR THE RELOCATION AND EXPANSION OF OPPORTUNITY HOUSE WHEREAS, the Redevelopment Agency of the City of Vacaville ( Agency ) owns the parcel in Vacaville, California, APN on Bennett Hill Court, and the Agency acquired the property to remove blight and for the future development of land uses compatible with adjoining residential land uses; and WHEREAS, the City Council of the City of Vacaville ( City Council ) adopted the Redevelopment Plan for the Vacaville Community Redevelopment Project Area (the Redevelopment Plan ) on June 28, 1982 by Ordinance No. 1164, as amended from time to time, and the proposed project is consistent with the implementation plan adopted pursuant to Section of the Health and Safety Code; and WHEREAS, the purpose of the transfer of the Agency property to Vacaville Social Services Corporation ( VSSC ) is for the development of a new affordable housing facility for homeless individuals and families to replace the facility currently located at 712 Catherine Street in Vacaville; and WHEREAS, the proposed transfer of property will assist in the further elimination of blighting conditions inside the Redevelopment Project Area because it will cause improvements to the property that complement the residential land uses in adjoining areas that are within the Redevelopment Plan Area in place of the existing structure; and WHEREAS, the Agency and VSSC will transfer the property according to the terms of a Disposition and Development Agreement, and the price per square foot is not less than fair market value as determined by an independent appraiser; and WHEREAS, the Community Development Department of the City of Vacaville has determined that the project would have a less than significant impact on the environment pursuant to Section of the California Environmental Quality Act; NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of Vacaville does hereby approve the Disposition and Development Agreement for the transfer of APN to VSSC and authorizes the Redevelopment Agency s Executive Director, or her designee, to execute, implement and make minor modifications to the Agreement, and to execute, implement, and make minor modifications to all documents necessary to complete the approved actions. I HEREBY CERTIFY that the foregoing resolution was introduced and passed at a noticed joint meeting of the Redevelopment Agency of the City of Vacaville and the City Council of the City of Vacaville, held on the 12th day of July, 2011, and approved by the following vote: AYES: NOES: ABSENT: ATTEST: Michelle A. Thornbrugh, Recording Secretary

7 CALLEN/BENNETT HILL Project Map Attachment A BENNETT HILL CT CALLEN STREET BENNETT HILL DRIVE Agency Owned Property Future Bond Proceed Purchase Proposed Acquisition Opportunity House Future Transitional Housing Callen Street RFP/RFQ CALLEN STREET

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