HomeMy WebLinkAboutResolution 2007-069 N.C.S. 04/16/2007 Resolution No. 2007-069 N.C.S.
of the City of Petaluma, California
APPROVING AN AFFORDABLE I-LOUSING AGREEMENT
WITH OPTION TO PURCHASE AND A PERFORMANCE DEED OF TRUST
FOR THE FRATES SQUARE PRO.IECT
WHEREAS, pursuant to Policy 4.2 of the Housing Element of the City's General Plan,
residential developments of five or more units are required to contribute to the provision of
affordable housing; and,
WHEREAS, to satisfy its obligations under Policy 4.2, the development of the Southgate
Subdivision has agreed to dedicate a parcel of land known as Sonoma County Assessor's Parcel
No. 17-460-079 (The "Property") for the development of 26 affordable homes (the "Project");
and,
WHEREAS, to facilitate the development of the Frates Square Project, the Property will
be conveyed to the Petaluma community Development Commission ("PCDC"), and subsequent
to such conveyance, PCDC will convey the Property to the Housing Land Trust of Sonoma
County ("HLT"); and,
WHEREAS, concurrently with the conveyance of the Property to PCDC, HLT, Delco
Building and Developers ("Delco") and certain principals for Delco will execute and deliver to
PCDC and the City an indemnity agreement ("Indemnity Agreement") pursuant to which
PCDC and City shall be indemnified against all liability arising in connection with the condition
of the Property and the construction of the Project; and,
WHEREAS, to ensure the long-term affordability of the homes, HLT will enter into a
ground lease with the homebuyers; and,
WHEREAS, to ensure compliance with the affordability requirements, HLT has agreed
to execute and record for the benefit of the City (i) an Affordable Housing Agreement with
Declaration of Restrictive Covenants and Option to Purchase ("Affordable Dousing
Agreement'), and (ii) a performance deed of trust (the "Deed of Trust"); and,
WHEREAS, the transactions among the parties are more fully described in a
Memorandum of Understanding proposed to be executed by and among PCDC, the City, HLT,
and the Project developer (the "M®U").
NOW, THEREFORE BE IT RESOLVED that the City Council hereby:
1. Approved the MOU, and authorizes the City Manager to execute the MOU
substantially in the form on file with the City Clerk, with such modifications as
the City Manager may approve with the advice of the City Attorney.
Resolution No. 2007-069 N.C.S. Page I
2. Approved the Indemnity Agreement substantially in the form on file with the City
Clerk, with such modifications as the City Manager may approve with the advice
of the City Attorney.
3. Approves the Affordable Housing Agreement, and authorizes the City Manager or
his designee to execute such .agreement substantially in the form on file with the
City Clerk, with such modifications as the City Manager may approve with the
advice of the City Attorney.
4. Approved the Deed of Trust substantially in the form on file with the City Clerk,
with such modifications as the City Manager may approve with the advice of the
City Attorney.
5. Authorizes the City Manager or his designee to undertake such other actions and
to execute such other documents as the City Manager may deem reasonably
necessary to carry out the intent of this Resolution.
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 pp ed as t
Council of the City of Petaluma at a Regular meeting on the 16`~ day of April, 2007, orm:
by the following vote:
City torney
AYES: Barrett, Freitas, Vice Mayor Nau, O'Brien, Mayor Torliatt -
NOES: None
ABSENT: Harris, Rabbitt _ - ~ A
- r
ABSTAIN: None ~ - _ _ /'i'~
ATTEST: _
City Clerk Mayor
Resolution No. 2007-069 N.C.S. Page 2