HomeMy WebLinkAboutResolution 2022-181 N.C.S. 11/21/2022 DocuSign Envelope ID:7992BC11-F28B-451B-AF2F-68DD2EOC9EC5
Resolution No. 2022-181 N.C.S.
of the City of Petaluma, California
AUTHORIZING EXTENTION OF LOAN TERM FOR 575 VALLEJO STREET ASSOCIATES
EXPIRING DECEMBER 11,2022 AND FINDING THAT THIS ITEM IS NOT A "PROJECT"
PURSUANT TO CEQA GUIDELINES SECTION 15378(b)(4-5)
WHEREAS, the Vallejo Street Senior Apartments owned and operated by 575 Vallejo Street Associates,
with Petaluma Ecumenical Projects (PEP Housing) as predecessor-in-interest, is a 45-unit affordable housing
development at 575 Vallejo Street in Petaluma providing housing for seniors with low- and very-low-income;
and
WHEREAS, the City of Petaluma provided funding to PEP Housing to acquire and develop the 575 Vallejo
Street property in the form of a loan in the amount of$591,800 secured by a Borrowers Note on December 11,
1992; and
WHEREAS, the City of Petaluma provided additional funding to PEP Housing to acquire and develop the
575 Vallejo Street property in the form of an additional loan amount of$260,000 secured by a Modification
Agreement on October 6, 1993; and
WHEREAS, the 30-year term of the December 11, 1992, Borrowers Note securing the loan and subsequent
modification totaling $851,800 for 575 Vallejo Street Associates/Petaluma Ecumenical Projects Petaluma from
the City expires on December 11, 2022; and
WHEREAS, the City of Petaluma supports the production and preservation of affordable housing for its
lower income and vulnerable populations; and
WHEREAS,the Petaluma General Plan 2025 includes policies to provide essential housing to all Petalumans
and including Policy 6.1 to support efforts to prevent homelessness, and Policy 9.1 to promote the integration of
affordable and special needs housing projects on existing neighborhoods; and
WHEREAS, the proposed action is exempt from the requirements of the California Environmental Quality
Act(CEQA) in accordance with CEQA Guidelines Section 15378, as the action does not meet CEQA's definition
of a"project,"because approving a loan term extension is not a project as it does not commit the City to a definite
course of action (See City of Irvine v. County of Orange (2013) 221 Cal 4th 846, 865) and because this action
constitutes organizational or administrative activities of governments that will not result in direct or indirect
physical changes in the environment; and,
WHEREAS, 575 Vallejo Street Associates/PEP Housing plans to continue operation of the Vallejo Street
Senior Apartments affordable housing project in accordance with all requirements of the Affordability
Restrictions Agreement pertaining to 575 Vallejo Street entered into by the City of Petaluma and PEP Housing
on December 11, 1992 and recorded with the Sonoma County Recorder as record number 1992 0156854; and,
WHEREAS, this item was agenized in compliance with state and local laws.
NOW, THEREFORE, BE IT RESOLVED,that the City Council of the City of Petaluma hereby:
1. Declares the above recitals to be true and correct and are incorporated herein by reference.
Resolution No. 2022-181 N.C.S. Page 1
DocuSign Envelope ID:7992BC11-F28B-451B-AF2F-68DD2EOC9EC5
2. Finds that the proposed action is exempt from the requirements of the California Environmental Quality Act
(CEQA) in accordance with CEQA Guidelines Section 15378, as the action does not meet CEQA's definition
of a"project,"because approving a loan extension is not a project as it does not commit the City to a definite
course of action(See City of Irvine v. County of Orange (2013)221 Cal 4th 846, 865)and because this action
constitutes organizational or administrative activities of governments that will not result in direct or indirect
physical changes in the environment pursuant to CEQA Guidelines Section 15378(b)(4). Furthermore,
environmental compliance was already completed when the initial loan was approved.
3. Authorizes the City Manager or other authorized representative to execute a new Modification Agreement
with 575 Vallejo Street Associates/PEP Housing pertaining to the property at 575 Vallejo Street in Petaluma.
The new Modification Agreement will extend the term of the $851,800 loan expiring on December 11, 2022,
for another 10 years. The principal amount under the modified Note shall accrue simple interest at the rate of
three percent(3 %)per annum commencing with the execution date of the new Modification Agreement.
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 21It day of November Docusigned arm:
2022,by the following vote:
City Attorney
AYES: Vice Mayor Pocekay,Barnacle,Fischer,Healy,McDonnell,King
NOES: Mayor Barrett
ABSENT: None
ABSTAIN: None
DocuSigned by: DocuSigned]J�¢Gub.,y:
ATTEST: fit Vt Su Mll
e Bas
City Clerk Mayor
Resolution No. 2022-181 N.C.S. Page 2
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