The URL can be used to link to this page

Home My WebLink AboutOSB Resolution 2014-03 4/30/2014Resolution No. 2014-03 Petaluma Oversight Board to the Petaluma Community Development Successor Agency A RESOLUTION OF THE OVERSIGHT BOARD OF THE PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR AGENCY, ACKNOWLEDGING STATE CONTROLLER'S OFFICE REVIEW AND FINDINGS REGARDING PETALUMA COMMUNITY DEVELOPMENT COMMISSION ASSET TRANSFERS, AND R E T R O A C T I V E L Y APPROVING AN INTERFUND LOAN REPAYMENT FROM THE PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR AGENCY TO THE CITY OF PETALUMA WHEREAS, the California state legislature enacted Assembly Bills x1 26 and 1484 to dissolve and unwind the affairs of redevelopment agencies formed under the Community Redevelopment Law (Health and Safety Code Section 33000 et sea.); and, WHEREAS, the City Council of the City of Petaluma (the "City Council") declared that the City of Petaluma, acting in a separate legal capacity and as a separate public entity pursuant to Health and Safety Code Section 34173(g), will act as successor agency (the "Petaluma Community Development Successor Agency, or PCDSA") for the dissolved Petaluma Community Development Commission of the City of Petaluma (the "Dissolved PCDC") effective August 6, 2012; and, WHEREAS, an Oversight Board for the PCDSA (the "Oversight Board") has been established and is functioning in accordance with Health and Safety Code Section 34179; and, WHEREAS, on June 30, 2009, the City of Petaluma and the Low and Moderate Housing Fund of the Dissolved PCDC entered into a promissory note for the loan of $2.5 million dollars from the City of Petaluma to the Dissolved PCDC, subject to repayment of the interfund loan; and, WHEREAS, the Dissolved PCDC made payments of $400,000 on June 30, 2011; $200,000 on December 31, 2011; and $1,100,000 on January 31, 2012, with all payments pursuant to the 2009 Promissory Note; and, WHEREAS, the State Controller's Office (the "SCO") is conducting reviews of the assets of all the dissolved redevelopment agencies throughout the State, including the OSB Resolution No. 2014-03 Page 1 Dissolved PCDC's assets, and has preliminarily indicated its view that the loan repayments made pursuant to the 2009 Promissory Note requires Oversight Board action approving those loan repayments; and, WHEREAS, the City of Petaluma received a Finding of Completion from the Department of Finance on May 29, 2013, pursuant to Health and Safety Code Section 34179.7; and, WHEREAS, to comply with the SCO's view and direction, the Oversight Board may pass a resolution retroactively approving the Promissory Note repayments, as authorized by Health and Safety Code Section 34191(b)(3)(1), including Oversight Board direction for the PCDSA to enter into such documents and agreements as are appropriate to accomplish this approved action; and, WHEREAS, the proposed actions of the Oversight Board set forth in this Resolution were duly noticed); and, NOW, THEREFORE, BE IT RESOLVED that the Oversight Board of the Petaluma Community Development Successor Agency hereby finds, resolves, approves, determines, and directs as follows: 1. The foregoing recitals are true and correct, and together with the following documents and information form the basis for the approvals, authorizations, findings, and determinations set forth in this Resolution: (1) Resolution No. 2008-183 NCS, September 15, 2008; (2) the Promissory Note for Interfund Loan, June 30, 2009; (4) the Staff Report, and (4) the information provided by the PCDSA and City staff and the public. 2. In accordance with Health and Safety Code Section 34191(b)(3)(1), the Oversight Board hereby finds that the June 30, 2009, Interfund Loan was for legitimate redevelopment purposes, is determined to be an enforceable obligation, and retroactively authorizes and directs the repayment of funds loaned by the City to the Dissolved PCDC under the June 30, 2009, Interfund Loan Agreement, and such approval and finding of legitimate redevelopment purposes shall be retroactive to the dates of the repayments of the Interfund Loan transfer as referenced in this resolution. OSB Resolution No. 2014-03 Page 2 The Petaluma Community Development Successor Agency Executive Director, or the Executive Director's designee, is hereby authorized and directed to execute all documents and take all actions necessary and appropriate to effectuate the repayment of any funds advanced under the June 30, 2009, Promissory Note for Interfund Loan. 4. The repayments under the June 30, 2009, Promissory Note for Interfund Loan are exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines Section 15301 (as an action resulting in continuation of an existing facility) and Section 15061(b) (3) (as an action which it can be seen with certainty will not have a significant effect on the environment). S. The Petaluma Community Development Successor Agency is hereby directed to notify the Department of the actions set forth in this Resolution in accordance with Health and Safety Code Sections 34179(h) and Section 34181(f). 6. This Resolution shall take effect at the time and in the manner prescribed in Health and Safety Code Section 34179(h). REFERENCE: 1 hereby certify the foregoing Resolution was introduced and adopted by the Petaluma Oversight Board to the Petaluma Community Development Successor Agency at a Regular Meeting on the 300 of April, 2014, by the following vote: AYES: Duiven, Chair Healy, Herrington, Vice Chair Rabbitt, Scharer NOES: None ABSENT: Davis, Jolley ABSTAIN: None � f�/ Q ATTEST: v`� `-'C_/ Recording secretary Chair OSB Resolution No. 2014-03 Page 3 Exhibit A Resolution No. 2008-183 N.C.S. of the City of Petaluma, California MODIFYING THE FY 2008-09 HOUSING BUDGET FOR THE PURPOSE OF FINANCING SITE ACQUISITION FOR A PROPOSED SENIOR HOUSING COMMUNITY, VINTAGE CHATEAU, PHASE II WHEREAS, the City of Petaluma adopted the FY 2008-2009 Housing Budget on June 16, 2008 which included funding for a variety of housing projects and programs to address the needs of a wide spectrum of housing needs; and, WHEREAS, following the adoption of that budget, a site acquisition opportunity was presented to the City which would produce 67 additional affordable units for low-income seniors; and, WHEREAS, the senior population is one of the largest growing demographics in the County and a sizeable portion of those seniors will require subsidized and supportive housing; and. WHEREAS, the City Council has a commitment to address the housing needs of our low-income senior and disabled community and has stated that goal in various City housing policy documents; and, WHEREAS, USA Properties is a state-wide owner and manager of senior housing and has a long history of providing safe, decent, and affordable senior housing at Vintage Chateau 1; and, WHEREAS, the high cost of housing development has made it necessary for the City to assist the developer in the cost of acquisition of the housing site: and, WHEREAS, the City's funding allocation will be in the form of a promissory note secured by a deed of trust and option agreement, NOW, THEREFORE, BE IT RESOLVED that the FY 2008-2009 housing budget is modified to include the allocation of not -to -exceed $2,500,000 for the site acquisition of the property to be known as Vintage Chateau I1. Under the power and uuthoriq cmderred upon this Council by the Charter ofsaid City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Tx_ -n Council ol'Ihe. City of Petaluma at n Regular meeting on the 15'" day ol'September, 2008, by the following vote: AYES: Barrett, Preilas, tlurris, Nau, O'Brien, Vice Mayor Rabbilt, Mayor'I'orliuu^ NOES: None \ ABSENT: None ABSTAIN: None ATTEST: City Clerk Rebolution No. 2008-183 N.0 S. Page I OSB Resolution No. 2014-03 Page 4 Exhibit B CITY OF PETALUMA, CA PROMISSORY NOTE FOR INTERFUND LOAN This Promissory Note (Note) for an Interfund Loan is entered into as of June 30, 2009, by and between the City Treasurer of the City of Petaluma, acting as custodian of the funds of the City of Petaluma, and the City Manager of the City, acting for the City Council in implementation of the directives and authority of Resolution Number 2008-183 N.C.S., adopted on September 15, 2008. 1. The Treasurer shall transfer to the Low and Moderate Housing Fund, from the Housing In -Lieu Impact Fee Fund, such amounts as the City Manager shall direct from time to time, not to exceed the total sum of Two Million Five Hundred Thousand Dollars ($2,500,000). 2. The Low and Moderate Income Housing Fund does not have current resources available to finance the site acquisition of the Vintage Chateau property for which it has secured a promissory note (see resolution number above). The Low and Moderate Income Housing Fund has the ability to repay these borrowings overtime and as such, agrees to repay $800,000 per year until the total amount has been repaid to the Housing In -Lieu Impact Fee Fund. 4. The Treasurer, as custodian of the funds, agrees to promptly repay any sums advanced hereunder, ifl; interest*dam rate of thatned by rhe Gity T- lnN,estment Portfolio (variable" _) .. __ � ��..�__� �n=Q=��m��erannum, on any unpaid balance until paid, from funds that are hereafter available for such repayment. In any event, all such funds advanced by one fund to another fund shall be repaid, as funds become available. 5. This Note is subject to the terms of City of Petaluma Resolution Number 08-183, which is incorporated herein and made a part hereof by reference. Executed as of the date first above written CITY OF PETALUMA. CA BY City Treasurer BY City Manager Approved as to form this day of 20 City Attorney OSB Resolution No. 2014-03 Page S