HomeMy WebLinkAboutOrdinance 2704 N.C.S. 01/06/20201
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EFFECTIVE DATE
OF ORDINANCE
February 5, 2020
Introduced by
Kathy Miller
51 1 -In 76EXIT,
Seconded by
Dave King
ORDINANCE AMENDING THE TERM AND RENT PROVISIONS OF 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;
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
Ordinance No. 2704 N.C.S.
Page 1
1 WHEREAS, the current Lease term would need to be extended through September 30, 2020
2 to permit PEP to retain its offices on the Property while seeking needed Project funding until the start
3 of demolition and construction of the Project; and
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5 WHEREAS, City of Petaluma has historically acted in partnership with nonprofit developers,
6 including PEP, to address the City Council's goal of providing safe, decent, affordable housing for
7 the community's low-income population; and
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9 WHEREAS, the City of Petaluma will benefit from the development of the Project on the
10 Property by addressing our Regional Housing Needs Assessment (RHNA) allocation for very low and
11 extremely low affordable housing units; and
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13 WHEREAS, Section 46 of the Petaluma City Charter requires that certain actions involving
14 acquisition or disposition of City property, including leases, with a value of $3,000 or more, must be
15 taken by ordinance; and
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17 WHEREAS, changes to the Lease are categorically exempt from the requirements of the
18 California Environmental Quality Act (CEQA), Title 14, Chapter 3 of the California Code of
19 Regulations (CEQA Guidelines), sections 15061, 15301, to the extent they involve operation, repair,
20 maintenance, permitting, leasing, licensing and minor alteration of an existing facility involving
21 negligible or no expansion of use beyond that existing at the time of the City's determination;
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24 NOW, THEREFORE, be if ordained by the Council of the City of Petaluma as follows:
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26 Section 1. Recitals Made Findings. The above recitals are hereby declared to be true and
27 correct and incorporated into this ordinance as findings of the City Council.
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29 Section 2. Amendment to Lease Term. Section 2 of the Lease between the City and
30 Petaluma Ecumenical Properties, Inc., effective February 2, 2015, is hereby amended to
31 extend the expiration of the Lease term from February 28, 2020, until September 30, 2020.
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33 Section 3. Amendment to Rent. Section 3 of the Lease is hereby amended to read as
34 follows:
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36 Rent. Tenant shall pay rent during the Term of this Agreement in the amount of $1
37 per year for the use and occupancy of the premises, due as of January 1, or such
38 later time as the City may permit, during each year of the Agreement Term.
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40 Section 4. Implementation. The City Manager and her designees are authorized and
41 directed to execute all documents and to take all actions reasonably necessary to
42 implement this Resolution and the transactions described herein.
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44 Section S. Severability. If any section, sentence, clause or phrase of this ordinance or the
45 application thereof to any entity, person or circumstance is held for any reason to be invalid
46 or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or
47 applications of this ordinance which can be given effect without the invalid provision or
48 application, and to this end the provisions of this ordinance are severable. The City Council
49 hereby declares that it would have adopted this ordinance and each section, sentence,
50 clause or phrase thereof, irrespective of the fact that any one or more section, subsections,
51 sentences, clauses or phrases be declared invalid or unconstitutional.
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Ordinance No. 2704 N.C.S. Page 2
1 Section 6. Effective Date. This ordinance shall become effective thirty (30) days after its
2 adoption by the City Council.
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4 Section 7. Publication. The City Clerk is hereby directed to post and/or publish this
5 ordinance or a synopsis for the period and in the manner provided by the City Charter and
6 any other applicable law. The City Clerk is also hereby directed to file a Notice of Exemption
7 concerning this ordinance with the Office of the Sonoma County Clerk in accordance with
8 Section 15062 of the CEQA Guidelines.
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11 INTRODUCED and ordered posted, this 16th day of December 2019, by the following vote:
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13 ADOPTED this 6th day of January 2020, by the following vote:
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15 Ayes: Mayor Barrett, Fischer, Healy, Kearney, King, Vice Mayor McDonnell, Miller
16 Noes: None
17 Abstain: None
18 Absent: None
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ATTEST:
Claire Cooper, City Clerk
Teresa Barrett, Mayor
APPROVED AS TO FORM:
L nnenbaum, ssistant City Attorney
Ordinance No. 2704 N.C.S. Page 3