RPVCCA_SR_2010_02_16_07_Afford_Housing_Fund_Equity_RDACITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
Project Manager:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
DENNIS McLEAN,DIRECTOR OF FINANCE &~
INFORMATION TECHNOLOGY
FEBRUARY 16,2010
CITY'S AFFORDABLE HOUSING FUND EQUITY
TRANSFER TO REDEVELOPMENT AGENCY
CAROLYN LEHR,CITY MANAGER Q..9--
Kathryn Downs,Deputy Director of Finance &Information
Technology
RECOMMENDATION
Adopt Resolution No.2010-,A RESOLUTION OF THE CITY COUNCIL OF RANCHO
PALOS VERDES AUTHORIZING THE TRANSFER OF FUNDS FROM THE CITY'S IN-
LIEU HOUSING FUND TO THE RANCHO PALOS VERDES REDEVELOPMENT
AGENCY FOR THE PROJECT DESCRIBED IN THE DISPOSITION AND
DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND AMCAL MIRANDELA
FUND,L.P.
DISCUSSION
On March 17,2009,the City Council/Redevelopment Agency (RDA)Board approved the
Disposition and Development Agreement (DDA)with AMCAL Mirandela Fund,L.P.
(AMCAL)for an affordable housing project to be located on the RDA's Crestridge parcel.
The DDA included the terms and conditions under which the RDA would convey the
Crestridge parcel to AMCAL,extend a predevelopment loan,and provide and construction
financing.Consistent with the City Council's approval on March 1i h ,a summary of
City/RDA financial assistance follows:
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CITY'S AFFORDABLE HOUSING FUND EQUITY TRANSFER TO REDEVELOPMENT
AGENCY
February 16,2010
Page 2 of2
Value of Crestridge Parcel $2,990,000
Construction Financing 3,600,000
Pre-Development Loan 200,000
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The City/RDA commitment to provide $3.6 million for construction financing is to be funded
from the following sources:
City's Affordable Housing In-Lieu Fu nd $1,766,368
RDA's Affordable Housing Set-Aside Fund Balance 1,420,565
RDA's 2010 &2011 Set-Aside Tax Increment 413,067
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The entire City/Agency commitment will need to be disbursed from the RDA Affordable
Housing fund,as the AMCAL promissory note is payable to the RDA.Therefore,as a
housekeeping item,adoption of the attached resolution is necessary to execute the
transfer from the City's Affordable Housing Fund to the RDA Affordable Housing Fund
consistent with City Council approval on March 1i h
.The equity transfer is not an addition
to the loan from the City to the RDA,as it is simply the City's contribution to the AMCAL
project.
FISCAL IMPACT
There is no fiscal impact associated with adoption ofthe proposed resolution.The adopted
FY09-10 budget includes a $1,766,368 disbursementfrom the City's Affordable Housing
fund for this project.
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RESOLUTION NO.2010-__
A RESOLUTION OF THE CITY COUNCIL OF RANCHO PALOS
VERDES AUTHORIZING THE TRANSFER OF FUNDS FROM
THE CITY'S IN-LIEU HOUSING FUND TO THE RANCHO PALOS
VERDES REDEVELOPMENT AGENCY FOR THE PROJECT
DESCRIBED IN THE DISPOSITION AND DEVELOPMENT
AGREEMENT BETWEEN THE AGENCY AND AMCAL
MIRANDELA FUND,L.P.
WHEREAS,on March 17,2009 the City Council and the Rancho Palos
Verdes Redevelopment Agency (the "Agency")adopted Resolution No.2009-18,
entitled "A Joint Resolution Of The Rancho Palos Verdes Redevelopment
Agency And The City Council Of Rancho Palos Verdes Making Certain Findings
And Approving A Disposition And Development Agreement Between The Rancho
Palos Verdes Redevelopment Agency And Amcal Mirandela Fund,L.P.;and
WHEREAS,on March 20,2009 the Agency and Amcal Mirandela Fund,
L.P.("Developer")entered into the Disposition and Development Agreement
("DDA")authorized by Resolution No.2009-18;and
WHEREAS,pursuant to the DDA,the Agreed to convey certain property
to Developer for the development thereon of a 34-unit senior affordable
apartment project ("Project"),and further agreed to provide certain financial
assistance to the Developer for the Project;and
WHEREAS,as identified in the reports presented to the City Council and
Agency on March 17,2009,the Agency and City Council contemplated that the
financial assistance would include all available monies in the City's In-Lieu
Affordable Housing Fund;and
NOW,THEREFORE,based on evidence presented to the City Council,
including the written staff report,the City Council does hereby find,determine
and resolve as follows:
Section 1.The above recitals are all true and correct.
Section 2.The use of monies from the City's In-Lieu Affordable Housing
Fund for the Project is consistent with the purpose and intent of Chapter 17.11 of
the Rancho Palos Verdes Municipal Code,in that it facilitates the development of
housing affordable to low and moderate income households.
Section 3.The City Council hereby authorizes the transfer of up to one
million,eight-hundred thousand dollars (the "City Funds")to the Redevelopment
Agency,subject to the restriction that the City Funds may be expended by the
Redevelopment Agency to fund the Agency Loan described in Article 7 of the
DDA,to the extent that monies in the Agency's Affordable Housing Set-Aside
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Fund are not sufficient to fully fund the Agency Loan,and for no other purpose.
The City Funds shall be transferred as needed for disbursements of the Agency
Loan,as determined by the Finance Director.
Section 4.The City Manager and Finance Director are hereby authorized
and directed to do any and all things necessary to implement the transfer of
funds authorized by this Resolution.
Adopted at the regular meeting of the Rancho Palos Verdes City Council
on the 16th day of February,2010,by the following vote:
Ayes:
Noes:
Absent:
Abstain:
City Clerk
APPROVED AS TO FORM:
City Attorney
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