RESOLUTION NO. A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN JOSE: (1) AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO TRANSFER CITY OWNED PROPERTY LOCATED ON BASSETT STREET (ASSESSOR PARCEL NUMBER 259-51-008) FROM THE CITY OF SAN JOSE TO THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN JOSÉ, AS PART OF PARCEL CONSOLIDATION FOR THE 135-UNIT STAND ALONE AFFORDABLE HOUSING PROJECT, WHICH CONSOLIDATED PARCEL SHALL BE TRANSFERRED BY THE SUCCESSOR AGENCY TO FIRST COMMUNITY HOUSING TO DEVELOP THE AFFORDABLE PROJECT; (2) AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ACCEPT CERTAIN PROPERTIES FOR PUBLIC USE AND TO TRANSFER CERTAIN OTHER PROPERTIES, ALL AS PART OF THE NORTH SAN PEDRO HOUSING PROJECT AND INFILL AND INFRASTRUCTURE HOUSING PROJECT; AND (3) ALLOWING AN EXCEPTION TO THE CITY S POLICY FOR THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS TO PERMIT THE CALIFORNIA HOUSING FINANCE AGENCY TO ISSUE PRIVATE- ACTIVITY BONDS FOR THE AFFORDABLE PROJECT WHEREAS, in 2011, the former Redevelopment Agency, First Community Housing ( FCH ), North San Pedro Townhomes ( NSPT ), and San Pedro Life l ( SPL1 ) applied for and were awarded a State Infill and Infrastructure Grant ( IIG ) for the North San Pedro Housing Project ( Project ) in the amount of $24,160,400 for the construction of 900 new for-sale and rental homes in the downtown area of the City of San José ( City ); and T-14438.001 / 1421214.doc 1
WHEREAS, as part of the IIG application, the parties agreed to provide 135 units of affordable housing at reduced affordability levels, and FCH is the affordable housing developer; and WHEREAS, the City currently owns one parcel, and the Successor Agency owns two parcels that together comprise the affordable housing site. The recommendation to transfer the City owned parcel to the Successor Agency will consolidate all three parcels into one parcel, and the Successor Agency will transfer the entire site to FCH to satisfy the Successor Agency s obligation to provide the affordable housing site; and WHEREAS, staff also recommends transfer of properties described below, which are necessary for the development of the Project: 1. Two Successor Agency owned parcels need to be transferred and combined with the land underlying North San Pedro Street for the creation of the future park between West Julian Street and Bassett Street (between Block B/F and Block A on the map), North San Pedro Street requires vacation as a street but the City will obtain title to the underlying fee through a Quiet Title action; 2. The removal of the Julian Street S curve necessitates the need to vacate the street where it cuts through Blocks D and E, creating two development parcels; 3. The City and Successor Agency will need to accept land transferred from City Heights to square off Block D and add to the paseo north of Pellier Park, respectively; and 4. The vacation of Terraine Street where it terminates into Block G is necessary for the construction of the Affordable Project and since Terraine Street terminates at this point, the property is no longer necessary as a public right of way. The Successor Agency will acquire title to the underlying fee through a Quiet Title action and the property will be transferred to FCH as part of the Affordable Project; and T-14438.001 / 1421214.doc 2
WHEREAS, the City Council s Bonds Policy requires that the City be the issuer of taxexempt private-activity bonds for housing developments located within the City. When the City is not the issuer, the Bonds Policy allows the City to authorize another conduit bond issuer ( Issuer ) to issue bonds if the City is not making a loan or grant to the Project; and WHEREAS, FCH selected California Housing Finance Agency ( CalHFA ) as the proposed Issuer for the Project, and CalHFA will be required to issue bonds for the Project and monitor the Project s affordability for 55 years, a task that would have fallen to the Housing Department had the City issued bonds for the Project; and WHEREAS, staff recommends an exemption to the City s Bonds Policy to allow CalHFA to act as the Issuer for the Project due to the facts that: 1) CalHFA is providing very attractive financing to the project and requires, as a condition of the financing, CalHFA to be Issuer 2) a TEFRA Public Hearing has already been conducted on March 28, 2017, and 3) the City s investment is a relatively nominal component of the Project s total cost; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT: (1) The City Manager or his designee is authorized to transfer City owned property located on Bassett Street (Assessor Parcel Number 259-51-008) from the City of San José to the Successor Agency to the Redevelopment Agency of the City of San José, as part of parcel consolidation for the 135-unit Stand Alone Affordable Housing Project, which consolidated parcel shall be transferred by the T-14438.001 / 1421214.doc 3
Successor Agency to First Community Housing to develop the Affordable Project. (2) The City Manager or his designee is authorized to accept certain properties for public use and to transfer certain other properties, as shown on the attached map, all as part of the North San Pedro Housing Project and Infill and Infrastructure Housing Project. (3) An exception to the City s Policy for the Issuance of Multifamily Housing Revenue Bonds is allowed to permit the California Housing Finance Agency to issue private-activity bonds for the Affordable Project. ADOPTED this day of, 201 7, by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: ATTEST: SAM LICCARDO Mayor TONI J. TABER, CMC City Clerk T-14438.001 / 1421214.doc 4
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