HomeMy WebLinkAboutResolution 2016-053 N.C.S. 04/18/2016Resolution No. 2016 -053 N.C.S.
of the City of Petaluma, California
APPROVING AN AMENDED LOAN AGREEMENT WITH CRWC, L.L.C.,
AN AFFILIATE OF EDEN HOUSING, INC. IN CONNECTION WITH THE
ACQUISITION AND REHABILITATION OF CORONA RANCH AND
WASHINGTON CREEK APARTMENTS, AND AUTHORIZING THE CITY
MANAGER TO SIGN DOCUMENTS RELATED TO THE
REHABILITATION AND FINANCING OF THE PROJECT
WHEREAS, the City previously provided financing to Eden Housing Inc., a California
nonprofit public benefit corporation ( "Eden ") to assist in the development of Washington Creek
Apartments, an affordable housing project consisting of 32 units of multifamily housing located
at 909 Martin Circle; and
WHEREAS, Corona/Ely Ranch Associates, an affiliate of Eden and City executed a
Regulatory Agreement for the Corona Ranch Apartments, an affordable housing project
consisting of 74 units of multi - family housing, dated as of June 10, 1993 and recorded in the
Official Records against a portion of the Property on June 10, 1993 as Instrument No. 1993-
0071800; and
WHEREAS, Eden or an affiliate of Eden will serve as the general partner in CRWC,
L.P., a California limited partnership ( "Developer ") that intends to acquire, refinance and
rehabilitate Washington Creek Apartments and Corona Ranch Apartments (the "Project "); and
WHEREAS, in connection with the refinancing of the Project, the term of affordability
will be extended for a term of 55 years commencing upon completion of the rehabilitation; and
WHEREAS, to ensure the financial feasibility of the Project, Eden has requested that the
City amend the existing note payable to the City to provide for an extension of the term, a
reduction of the interest rate, and an assignment to the Developer; and
WHEREAS, proposed forms of the' following documents (collectively, the "Loan
Documents ") have been provided to the City Council: a loan agreement; an amended version of
the existing City note; an amendment to the existing City deed of trust; and an Affordable
Housing Regulatory Agreement and Declaration of Restrictive Covenants ( "Regulatory
Agreement ") that will restrict the Project for occupancy at affordable rents; and
WHEREAS, in connection with the rehabilitation of the Project, conventional lenders
will provide construction and permanent financing, and may require the subordination of certain
loan documents.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby:
1. Finds that the modification of the existing City loan are necessary to make the Project
financially feasible and affordable to lower income households.
Resolution No. 2016 -053 N.C.S. Page 1
2. Approves the modification of the existing City Loan.
3. Approves the Loan Documents, and authorizes the City Manager or his designee to
execute and deliver each Loan Document to which the City is a party substantially in
the form provided for City Council review, with such modifications as may be
approved by the City Manager in consultation with the City Attorney, provided that
such modifications are consistent with the intent of this Resolution and do not
substantially increase the obligations or impair the rights of the City.
4. Agrees to subordinate the Regulatory Agreement and the deed of trust executed or to
be executed in connection with the financing of the Project to the deeds of trust and
the regulatory agreements to be executed by Developer for the benefit of the Project
construction and permanent lenders, provided that the City is provided reasonable
protections including reasonable notice and cure rights in the event of a default under
the senior documents.
5. Authorizes and directs the City Manager and his designees to execute all documents
and to take all actions reasonably necessary to implement this Resolution and the
transactions described herein.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a Regular meeting on the 18`h day of April, 2016, form:
by the following vote: - ---�� ``-
Assistant City Attorney
AYES: Barrett, Mayor Glass, Healy, Kearney, Vice Mayor King, Miller
NOES: None
ABSENT: Albertson
ABSTAIN: None
ATTEST:
OT—
City Clerk ayor
Resolution No. 2016 -053 N.C.S. Page 2