HomeMy WebLinkAboutOrdinance 2737 N.C.S. 06/01/20201
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EFFECTIVE DATE
OF ORDINANCE
July 15, 2020
Introduced by
Kathy Miller
ORDINANCE NO. 2737 N.C.S.
Seconded by
D' Lynda Fischer
AN ORDINANCE OF THE CITY OF PETALUMA CITY COUNCIL APPROVING IN ACCORDANCE WITH
SECTION 46 OF THE PETALUMA CHARTER CONVEYANCE OF THE PROPERTY LOCATED AT 951 PETALUMA
BOULEVARD SOUTH IN PETALUMA (PROPERTY) TO PETALUMA ECUMENICAL PROPERTIES (PEP) OR ITS
SUCCESSOR IN INTEREST PURSUANT TO THE DISPOSITION, DEVELOPMENT AND LOAN AGREEMENT
(DDLA) BETWEEN THE CITY AND PEP FOR DEVELOPMENT OF THE RIVER CITY SENIOR APARTMENTS
PROJECT, A 54 -UNIT LOW-INCOME RENTAL HOUSING DEVELOPMENT FOR VETERANS
AND HOMELESS SENIORS (PROJECT) ON THE PROPERTY
17 WHEREAS, in April of 2017, the City issued a Request for Proposals for the development of affordable
18 housing on the City -owned property located at 951 Petaluma Boulevard South in Petaluma (Property),
19 with submissions due on May 8, 2017; and
20 WHEREAS, three proposals were submitted, staff reviewed all submittals, and held interviews
21 with the proposers during the last week in May 2017; and
22 WHEREAS, during the proposer interviews City staff communicated that the Property would be
23 the City's contribution to the development of the affordable housing project; and
24 WHEREAS, Petaluma Ecumenical Properties (PEP) proposed developing a project on the
25 Property consisting of consisting of the construction of 53 one -bedroom rental housing units affordable
26 for seniors of low and very -low income levels, plus one two-bedroom on-site manager unit and
27 ancillary community rooms, with twenty-five of the residential units identified for senior veterans
28 (Project), and PEP was selected to develop the Project on the Property; and
29 WHEREAS, the City entered into an exclusive negotiating agreement regarding development
30 of the Project on the Property with PEP on October 17, 2017; and
31 WHEREAS, on August 14, 2018, the Petaluma Planning Commission adopted Resolution no.
32 2018-126 approving site plan and architectural review (SPAR) for the Project, including associated
33 warrants and specified conditions of approval; and
34 WHEREAS, on August 20, 2018, the City entered into a Development, Disposition and Loan
35 Agreement (DDLA) with PEP addressing Project financing, Project approval, and other conditions that,
36 once satisfied, would result in transfer of most of the City -owned property at 951 Petaluma Boulevard
37 South to PEP and/or its successor for construction of the Project on the Property, resulting in the
Ordinance No. 2737 N.C.S. Page 1
1 creation of additional senior affordable housing in the City, subject to affordability and other
2 covenants specified in the DDLA; and
3 WHEREAS, on March 18, 2019, the City Council considered and expressed its support in
4 response to a request from PEP to provide additional funding for the Project to close a $1,500,000
5 funding gap; and
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7 WHEREAS, in expressing support for the PEP request, the City Council directed that additional
8 funding for the Project take the form of a combination of $906,000 of the City's HOME program funds
9 and an additional $600,000 from other housing funds at staff discretion, with the City's Housing In -lieu
10 Fee fund balance to be preserved to the extent possible; and
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12 WHEREAS, after March of 2019, PEP requested the City gap funding be provided from City
13 Housing In -lieu Fee funds instead of the City's HOME program funds because of the delay that would
14 result from the process required to access the City HOME program funds, and the resulting impact on
15 commencement of the Project and related impacts on other Project funding; and
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17 WHEREAS, on February 24, 2020, the City Council gave staff direction to make arrangements
18 for the City to contribute $1,500,000 from the City's Housing In -lieu Fee fund to the development of
19 the Project in addition to the $1,300,000 land value, as appraised on June 25, 2019; and
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21 WHEREAS, in addition to support PEP has requested from the City of Petaluma for the
22 development of the Project on the Property, PEP has sought and obtained other federal, state and
23 private financing for the construction of the Project, and such funding requires that PEP complete
24 acquisition of the Property in accordance with the DDLA, obtain all City project permits and
25 commence Project construction by approximately July 15, 2020; and
26 WHEREAS, the City of Petaluma intends to support the development of the Project by
27 transferring title of the Property to PEP or its successor in interest in accordance with and subject to
28 the terms of the DDLA; and
29 WHEREAS, Section 46 of the Petaluma Charter provides that actions providing for specific
30 improvements or appropriation or expenditure of any public money, except sums less than $3,000, for
31 the appropriation, acquisition, sale or lease of real property, shall be taken by ordinance; and
32 WHEREAS, the Project qualifies for an exemption from review under the California
33 Environmental Quality Act (CEQA) pursuant to Section 15194 of the CEQA Guidelines pertaining to
34 the affordable housing projects, as set forth in Planning Commission Resolution 2018-126 which was
35 adopted on August 12, 2018 and approved the Project SPAR;
36 NOW THEREFORE, BE IT ORDAINED by the Petaluma City Council as follows:
37 Section 1. Recitals made findings. The above recitals are hereby declared to be true and correct
38 and are incorporated into this ordinance as findings of the City Council.
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40 Section 2. CEQA Exemption. The Project is exempt from CEQA review pursuant to the exemption
41 for affordable housing projects in Section 15194 of the CEQA Guidelines as set forth in Planning
42 Commission Resolution No. 2018-26 adopted on August 14, 2018.
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44 Section 3. Conveyance of 951 Petaluma Boulevard South Approved. Transfer of the City -owned
45 property at 951 Petaluma Boulevard South to PEP or its successor for construction of the Project on the
46 Property, resulting in the creation of additional senior affordable housing in the City, subject to
47 affordability and other covenants specified in the DDLA, and subject to a reservation of land on the
48 eastern border of the Property bordering the Petaluma River to provide for public access to the
Ordinance No. 2737 N.C.S. Page 2
I Petaluma River (River Trail Property), and the reservation of an easement for the City for accessing the
2 River Trail Property across the Property is hereby approved.
3 Section 4. Severability. The City Council hereby declares that every section, paragraph,
4 sentence, clause, and phrase of this ordinance is severable. If any section, paragraph, sentence,
5 clause or phrase of this ordinance is for any reason found to be invalid or unconstitutional, such
6 invalidity, or unconstitutionality shall not affect the validity or constitutionality of the remaining
7 sections, paragraphs, sentences, clauses, or phrases.
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Section 5. Effective Date. This ordinance shall be in full force and effective 30 days after its
adoption and shall be published and/or posted in the manner required by the City's charter.
INTRODUCED and ordered posted this I st day of June 2020.
ADOPTED this 15th day of June 2020 by the following vote:
Ayes: Mayor Barrett, Vice Mayor Fischer, Healy, Kearney, King, McDonnell, Miller
Noes:
None
Abstain:
None
Absent:
None
ATTEST:
F
Teresa Barrett, Mayor
APPROVED AS TO FORM:
Illy
Claire Cooper, CMC, City Clerk Eric Danly, City Attorney
Ordinance No. 2737 N.C.S.
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