HomeMy WebLinkAboutResolution 2019-189 N.C.S. 12/16/2019Resolution No. 2019-189 N.C.S.
of the City of Petaluma, California
GIVING STAFF INTERIM DIRECTION TO WAIVE LEASE PAYMENTS DUE
UNDER THE LEASE ENTERED FEBRUARY 2, 2015 BETWEEN THE CITY OF
PETALUMA AND PETALUMA ECUMENICAL PROPERTIES, INC.,
REGARDING REAL PROPERTY LOCATED AT 951 PETALUMA
BOULEVARD SOUTH, PETALUMA, CALIFORNIA, APN: 019-210-012
WHEREAS, On January 26, 2015, the City Council adopted Ordinance No. 2526,
authorizing the lease of real property located at 951 Petaluma Blvd, So., Petaluma, CA (APN:
019-210-012) ("Property") to Petaluma Ecumenical Properties, Inc. ("PEP") and authorizing and
directing the City Manager to execute the lease on behalf of the City; and
WHEREAS, the City and PEP have executed a lease effective February 2, 2015 for the
Property ("Lease"), in which Section 2 of the Lease set the term of the Lease from March 1,
2015 through February 28, 2020; and
WHEREAS, Section 3 of the Lease sets the monthly rent for the Property at $2,000 per
month; and
WHEREAS, in August 2018 the City and PEP entered a Disposition, Development and
Loan Agreement ("DDLA") for development of affordable senior housing referred to as the
River City Senior Apartments ("Project") on the Property, setting the terms of the Project
development and financing, with a deadline of December 31, 2020 to commence construction of
the Project; and
WHEREAS, the Project, which will provide 54 affordable senior/veteran units on the
Property has been approved and PEP has applied for building permits, with a planned
construction commencement by May 2020; and
WHEREAS, PEP has been informed its application for 4% state tax credits will not be
funded, and as a result PEP plans to apply for Veterans Housing and Homeless Prevention
funding from the California Housing and Community Development Department, which delay in
obtaining needed funding for the Project will delay the estimated commencement of construction
for the Project to September 2020; and
WHEREAS, PEP has requested a waiver of the monthly rent due under the Lease as a
result of the unforeseen delays in obtaining the funding needed to develop the Project on the
Property; and
WHEREAS, under the Lease, rent payments of $2,000 are due at the beginning of each
month; and
WHEREAS, the current Lease term would need to be extended through September 30,
2020 to permit PEP to retain its offices on the Property while seeking needed Project funding
until the start of demolition and construction of the Project; and
Resolution No. 2019-189 N.C.S. Page 1
WHEREAS, City of Petaluma has historically acted in partnership with nonprofit
developers, including PEP, to address the City Council's goal of providing safe, decent,
affordable housing for the community's low-income population; and
WHEREAS, the City of Petaluma will benefit from the development of the Project on
the Property by addressing our Regional Housing Needs Assessment (RHNA) allocation for very
low and extremely low affordable housing units; and
WHEREAS, changes to the Lease are categorically exempt from the requirements of the
California Environmental Quality Act (CEQA), Title 14, Chapter 3 of the California Code of
Regulations (CEQA Guidelines), sections 15061, 15301, to the extent they involve operation,
repair, maintenance, permitting, leasing, licensing and minor alteration of an existing facility
involving negligible or no expansion of use beyond that existing at the time of the City's
determination;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma
as follows:
1. The above recitals are hereby declared to be true and correct and incorporated into
this resolution as findings of the City Council.
2. The City Council hereby:
a. Authorizes waiving PEP's obligation to pay rent of $2,000 in accordance with
Section 3 of the Lease for the month of January 2020.
b. Authorizes granting PEP a grace period of 10 days to pay rent otherwise due
under the Lease as.
3. The City Manager and her designees are authorized and directed to execute all
documents and to take all actions reasonably necessary to implement this Resolution
and the transactions described herein.
4. This resolution shall take immediate effect upon its adoption by a majority of the
Council member's present.
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 /_�pprrlelico as to
Council of the City of Petaluma at a Regular meeting on the 16th day of December :
2019, by the following vote: iS
City ttorney
AYES: Mayor Barrett; Fischer; Healy; Kearney; King; Vice Mayor McDonnell; Miller
NOES:
None
ABSENT:
None
ABSTAIN:
None
ATTEST:
�,A)If6�
Deputy City Clerk
Mayor
Resolution No. 2019-189 N.C.S. Page 2