RESOLUTION NO.
RESOLUTION OF THE COTATI CITY COUNCIL APPROVING A DEFERRAL OF
FEES AND GRANT OF FUNDS FOR AFFORDABLE HOUSING AND PUBLIC
IMPROVEMENTS, INCLUDING AN ASSOCIATED INTER-FUND GRANT, FOR THE
COTATI STATION APARTMENTS PROJECT
WHEREAS, an application was submitted by Doug Elliot and the Colvin Group LLC requesting Design Review and Use Permit approval to allow the development of the 98-unit Cotati Station mixed-use project, on three un-addressed vacant parcels totaling 2.42 acres, more particularly described as Assessor's Parcel Number(s) 144-320-034, 144-320-035 and 144-320- 036, dated April 27, 2022, and on file in the Office of the Department of Community Development; and
WHEREAS, on June 14, 2022, Developer was granted Design Review and Density Bonus approval by the Cotati City Council for the Cotati Station Apartments, a 98-unit mixed use project consisting of 98-apartment homes (1, 2, and 3 bedroom units) and approximately 5,600 square feet of commercial space on three parcels totaling approximately 2.42 acres; and WHEREAS, at the June 14, 2022 public hearing, the City Council approved Resolution 2022-26, which included various conditions of approval including the following condition (#9), “The City Council shall approve the requested deferral of impact fees until the buildings are ready for occupancy and the request to utilize the City’s Affordable Housing Fund to cover the Impact Fees of the Low and Very Low income units as a component of the finalized Affordability Agreement. Said approval shall be memorialized and defined within an agreement approved by the City Council and recorded against the project and property”; and WHEREAS, in recognition of the public benefits, including the Project’s low and very low affordable housing and a variety of additional public amenities, including the widening of Santero Way to improve fire access, a new public park, additional public parking beyond the development requirements adjacent to the SMART station, and use of all electric (no natural gas) to reduce greenhouse gas emissions in the development, the City Council finds that it’s in the public interest to further incentivize development of the Project; and
WHEREAS, the City Council has determined that California Government Code Section 53601(e) authorizes the City to invest its surplus funds from its own funds, and further that such an investment of its surplus funds does not violate City Council policy on reserve fund balances or investments; and
WHEREAS, the City Council finds that in recognition with the stated additional public benefits of the project, it is in the public interest to grant up to $324,999 to the project, in addition to the Affordable Housing Fund grant of approximately $275,000, for a total of $599,999.99; and WHEREAS, the grant and the deferral of payment of impact fees from issuance of the building permit to occupancy is set forth in the attached Impact Fee Deferral and Grant Agreement (Exhibit A-A-2), and
WHEREAS, the deferred impact fees accrue interest at the LAIF rate to ensure the deferral is cost neutral to the impact fee funds, but can be paid at any time without penalty prior to granting the certificate of occupancy; and
WHEREAS, the grant terms are structured such that the City has no obligation to grant funds to the project until the impact fees are paid, which is expected to occur at occupancy; and WHEREAS, the proposed grant of up to $324,999 shall be accomplished through a grant from the General Fund to the Traffic Impact Fee Fund, as further described in the Inter-Fund Grant Term Sheet, attached as Exhibit B.
WHEREAS, the action of approving the Impact Fee Deferral and Grant Agreement, as well as the associated documents and an inter-fund grant, does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required.
NOW, THEREFORE BE IT RESOLVED THAT THE CITY OF COTATI CITY COUNCIL FINDS AS FOLLOWS:
1. The City Council hereby declares that each of the statements, findings and determinations of the City set forth in the recitals set forth above are true and correct and are incorporated herein by reference; and
2. The City Council hereby finds and declares that the granting funds to the Project will result in significant public benefits; and
3. The Impact Fee Deferral and Grant Agreement, the Promissory Note, and the Deed of Trust between the City and Colvin Group LLC., a California limited liability company (Exhibit A, A-1, A-2), are hereby approved, and subject to final approval of form by the City Attorney, the City Manager is authorized to execute said agreement and take all actions necessary to effect the intent of this Resolution.
4. The City Council hereby authorizes an Inter-Fund Grant from the General Fund to the Traffic Impact Fee Fund (Fund 205) in the amount of up to $324,000, and make any needed budgetary adjustments, subject to the terms and conditions listed on Exhibit B to this Resolution.
IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on the September 27th, 2022, by the following vote, to wit:
Approved:________________________________
Mayor
Attest:____________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
____________________________
City Attorney
Attachments:
Exhibit A: Impact Fee Deferral and Grant Agreement (DOCX) Exhibit A-1: Deed of Trust (DOCX)
Exhibit A-2: Promissory Note (DOCX)
Exhibit B: Interfund Grant Term Sheet (DRAFT) (DOCX)