CITY OF FAIRFIELD
SPECIAL MEETING
CONCURRENT CITY COUNCIL AND HOUSING AUTHORITY
MEETING
TUESDAY, SEPTEMBER 5, 2023; 6:00 PM
COUNCIL CHAMBER, 1000 WEBSTER STREET,
FAIRFIELD, CA 94533 OR VIA ZOOM
AGENDA
Members of the public can observe the meeting on Comcast Cable Channel 26, ATT UVerse 99, and webstreamed live at www.youtube.com/user/FFCATV/live . The public may join the meeting via Zoom at https://fairfieldca.zoom.us/j/89060213840?pwd=UUd0WlpEMStLemcxbld4dzVMK3Z5dz09 or via phone (408) 6380968, Webinar ID: 890 6021 3840, Passcode: 7074287400 CALL TO ORDER 6:00 PM
CONVENE MEETING OF THE HOUSING AUTHORITY
The holding of a joint meeting of the City Council and Housing Authority entitles the councilmembers to receive additional compensation of $35 for attending this joint meeting.
ROLL CALL
Commissioner Doug Carr
Commissioner Doriss Panduro
Commissioner Scott Tonnesen
Commissioner Rick Vaccaro
Commissioner K. Patrice Williams
Vice Chair Pam Bertani
Chair Catherine "Cat" Moy
PUBLIC COMMENTS
PROCESS FOR PUBLIC COMMENTS
Persons wishing to address the City Council on subjects not on the agenda but within the jurisdiction of the council may do so at this time. The council cannot discuss or take action on matters not on the agenda for this meeting, but councilmembers may briefly respond to statements made or questions raised by the public, ask for clarification from staff, refer the matter to staff, request staff to report back to the council at a subsequent meeting, or place the matter on a future agenda. To speak on an agenda item please use the “raise your hand” feature or press *9 on your phone. Speakers are limited to three minutes per item.
HOUSING AUTHORITY CONSENT CALENDAR
HOUSING AUTHORITY CONSENT CALENDAR NOTICE
All matters listed on the Consent Calendar are to be approved with one motion unless a member of the Authority or the public requests that separate action be taken on a specific item.
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CITY OF FAIRFIELDSPECIAL MEETINGCONCURRENT CITY COUNCIL AND HOUSING AUTHORITYMEETINGTUESDAY, SEPTEMBER 5, 2023; 6:00 PMCOUNCIL CHAMBER, 1000 WEBSTER STREET,FAIRFIELD, CA 94533 OR VIA ZOOMAGENDAMembers of the public can observe the meeting on Comcast Cable Channel 26, ATT UVerse 99, andwebstreamed live at www.youtube.com/user/FFCATV/live . The public may join the meeting via Zoomat https://fairfieldca.zoom.us/j/89060213840?pwd=UUd0WlpEMStLemcxbld4dzVMK3Z5dz09 or viaphone (408) 6380968, Webinar ID: 890 6021 3840, Passcode: 7074287400CALL TO ORDER 6:00 PMCONVENE MEETING OF THE HOUSING AUTHORITYThe holding of a joint meeting of the City Council and Housing Authority entitles thecouncilmembers to receive additional compensation of $35 for attending this joint meeting.ROLL CALLCommissioner Doug CarrCommissioner Doriss PanduroCommissionerScott TonnesenCommissioner Rick VaccaroCommissioner K. Patrice Williams Vice Chair Pam BertaniChair Catherine "Cat" MoyPUBLIC COMMENTS PROCESS FOR PUBLIC COMMENTSPersons wishing to address the City Council on subjects not on the agenda but within the jurisdictionof the council may do so at this time. The council cannot discuss or take action on matters not on theagenda for this meeting, but councilmembers may briefly respond to statements made or questionsraised by the public, ask for clarification from staff, refer the matter to staff, request staff to report backto the council at a subsequent meeting, or place the matter on a future agenda. To speak on anagenda item please use the “raise your hand” feature or press *9 on your phone. Speakers arelimited to three minutes per item.HOUSING AUTHORITY CONSENT CALENDARHOUSING AUTHORITY CONSENT CALENDAR NOTICEAll matters listed on the Consent Calendar are to be approved with one motion unless a member of the Authority or the public requests that separate action be taken on a specific item.
1.Resolution HA202306 of the Fairfield Housing Authority Approving the Fifth Amendment to the Disposition and Development Agreement by and Among the Fairfield Housing Authority, IH Parkside Fairfield LLC, Affordable Housing Alliance II, Incorporation, and Sutton Place Development Corporation for Land Located at 1600 Woolner Avenue, Fairfield, CA Recommended Action
Adopt resolution.
Funding Source
N/A
Contact:LaTanya Terrones, (707) 4287454
a
ADJOURN
Any disclosable public records related to an open session item on a regular meeting agenda and distributed by the City of Fairfield to all or a majority of the Fairfield City Council less than 72 hours prior to that meeting are available for public inspection at City Hall, in the 4th floor lobby, 1000 Webster Street, Fairfield, California during normal business hours.
The City of Fairfield does not discriminate against any individual with a disability. City publications will be made available upon request in the appropriate format to persons with a disability. If you need an accommodation to attend or participate in this meeting due to a disability, please contact the City Clerk's Office, in advance of the meeting at (707) 4287400 or (707) 3995623 (TTY).
PUBLIC NOTIFICATION
I, Esther Beavers, Deputy City Clerk, do hereby certify that I have caused a true copy of the above notice and agenda to be delivered to each of the members of the Fairfield City Council, at the time and in the manner prescribed by law and that this agenda was posted at City Hall, 1000 Webster Street, Fairfield, California on Thursday, August 31, 2023.
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Agenda Item No: 1.
AGENDA REPORT
DATE:September 5, 2023
TO:Fairfield Housing Authority Chair and Commissioners
FROM:David Gassaway, Executive Director
SUBJECT:Resolution HA202306 of the Fairfield Housing Authority Approving the Fifth Amendment to the Disposition and Development Agreement by and Among the Fairfield Housing Authority, IH Parkside Fairfield LLC, Affordable Housing Alliance II, Incorporation, and Sutton Place Development Corporation for Land Located at 1600 Woolner Avenue, Fairfield, CA
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
IH Parkside Fairfield, Affordable Housing Alliance II, Inc. and Sutton Place Development Corp. (collectively, "Developer") entered into the First Amendment to the Disposition and Development Agreement (DDA) dated January 25, 2021, to extend the close of escrow date to February 10, 2022. In February 2022, a Second Amendment was approved to allow the Developer to obtain project financing and complete Land approvals. A Third Amendment was entered into on March 31, 2023, to extend the escrow date to August 1, 2023. A Fourth Amendment was entered into on August 15, 2023, to extend the escrow date to September 1, 2023. Due to delays in multiple parts of the development process including delays in entitlements and financial reviews by the project investors the Developer is unable to comply with the timeline. The developer has requested an additional extension to complete closing transactions.
The Fifth Amendment will extend the term of the agreement to no later than November 1, 2023, and allow the Developer to finalize the underwriting process and begin construction.
DISCUSSION
The Redevelopment Agency to the City of Fairfield purchased the property from the City of Fairfield in 2010 for future housing development. In 2013, after the dissolution of the Redevelopment Agency, the property was transferred to the Fairfield Housing Authority (FHA) to continue efforts to find a suitable housing developer.
On February 20, 2020, the FHA approved Resolution HA202002 approving the DDA for a Packet Page 3 of 10
Agenda Item No: 1.AGENDA REPORTDATE:September 5, 2023 TO:Fairfield Housing Authority Chair and CommissionersFROM:David Gassaway, Executive DirectorSUBJECT:Resolution HA202306 of the Fairfield Housing Authority Approving the FifthAmendment to the Disposition and Development Agreement by and Among theFairfield Housing Authority, IH Parkside Fairfield LLC, Affordable Housing Alliance II,Incorporation, and Sutton Place Development Corporation for Land Located at 1600Woolner Avenue, Fairfield, CARECOMMENDED ACTIONAdopt resolution.STATEMENT OF ISSUEIH Parkside Fairfield, Affordable Housing Alliance II, Inc. and Sutton Place Development Corp.(collectively, "Developer") entered into the First Amendment to the Disposition and DevelopmentAgreement (DDA) dated January 25, 2021, to extend the close of escrow date to February 10, 2022. InFebruary 2022, a Second Amendment was approved to allow the Developer to obtain project financingand complete Land approvals. A Third Amendment was entered into on March 31, 2023, to extend theescrow date to August 1, 2023. A Fourth Amendment was entered into on August 15, 2023, to extendthe escrow date to September 1, 2023. Due to delays in multiple parts of the development processincluding delays in entitlements and financial reviews by the project investors the Developer is unable tocomply with the timeline. The developer has requested an additional extension to complete closingtransactions.The Fifth Amendment will extend the term of the agreement to no later than November 1, 2023, andallow the Developer to finalize the underwriting process and begin construction.DISCUSSIONThe Redevelopment Agency to the City of Fairfield purchased the property from the City of Fairfield in2010 for future housing development. In 2013, after the dissolution of the Redevelopment Agency, theproperty was transferred to the Fairfield Housing Authority (FHA) to continue efforts to find a suitablehousing developer.
On February 20, 2020, the FHA approved Resolution HA202002 approving the DDA for a development proposal for a +162unit mixedincome housing project. During the due diligence process, the Developer discovered that the City previously used the site as a water storage facility with large underground concrete reservoirs. Even though the City later abandoned and demolished the concrete reservoirs, the soil conditions were compromised, requiring extensive mitigation efforts to prepare the site for building. Therefore, the Developer asked for the property to be reappraised to adjust the sales price and solicit the City's participation in subsidizing the additional site preparation costs. The DDA had to be amended to memorialize the new agreement amongst both parties and adjust the schedule of performance, the scope of development, and the project budget.
On January 19, 2021, the FHA approved Resolution HA202102 approving the First Amendment to the DDA. The amended DDA also required the Developer to apply for alternative affordable housing financing and gave the FHA the right to review and approve plans and specifications for the project before submittal. The final agreedupon purchase price for the property was $1,500,000 minus a credit of $400,000 for the required soil engineering work. The FHA will update the property's market value before finalizing the project financing.
The Second Amendment to the DDA extended the term of the agreement to February 10, 2023, to allow the Developer to finalize financing for the project’s construction and obtain all planning approvals. A Third Amendment to the DDA was approved in March 2023 to allow an extension to the DDA to expire on August 1, 2023, to allow the Developer to finalize additional financing. While the developer is finalizing the financial efforts, multiple delays, including a backlog of work with the underwriter, will not allow them to close escrow by August 1, 2023. A Fourth Amendment of the DDA was granted on August 15, 2023, to give the developer additional time to complete underwriting for the project. The City and Developer need additional time to negotiate final deal terms that have been raised by the Construction financers. Staff expects these deal terms to be completed no later than the second week of September 15, 2023. The Fifth Amendment is therefore requested to amend closing to an outside date of November 1, 2023. This extension ensures sufficient time to resolve all construction and bond financing issues related to the project. Construction completion is scheduled for November 2025.
FINANCIAL IMPACT
The Developer will pay the FHA an estimated Purchase Price of $1,500,000 minus the $400,000 credit for the soil engineering work. The net proceeds will be deposited into the FHA's LowMod Income Housing Fund (Fund 152 Object Code 2111).
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The Fairfield Housing Authority may choose not to approve the Fifth Amendment to the DDA. However, this would require staff to put the property back on the market, attempt to secure another housing developer, and extend the development of the property further out.
STAFF CONTACT
LaTanya Terrones, Sr. Project Manager
(707) 4287454
[email protected]
COORDINATED WITH
City Attorney's Office
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Agenda Item No: 1.AGENDA REPORTDATE:September 5, 2023 TO:Fairfield Housing Authority Chair and CommissionersFROM:David Gassaway, Executive DirectorSUBJECT:Resolution HA202306 of the Fairfield Housing Authority Approving the FifthAmendment to the Disposition and Development Agreement by and Among theFairfield Housing Authority, IH Parkside Fairfield LLC, Affordable Housing Alliance II,Incorporation, and Sutton Place Development Corporation for Land Located at 1600Woolner Avenue, Fairfield, CARECOMMENDED ACTIONAdopt resolution.STATEMENT OF ISSUEIH Parkside Fairfield, Affordable Housing Alliance II, Inc. and Sutton Place Development Corp.(collectively, "Developer") entered into the First Amendment to the Disposition and DevelopmentAgreement (DDA) dated January 25, 2021, to extend the close of escrow date to February 10, 2022. InFebruary 2022, a Second Amendment was approved to allow the Developer to obtain project financingand complete Land approvals. A Third Amendment was entered into on March 31, 2023, to extend theescrow date to August 1, 2023. A Fourth Amendment was entered into on August 15, 2023, to extendthe escrow date to September 1, 2023. Due to delays in multiple parts of the development processincluding delays in entitlements and financial reviews by the project investors the Developer is unable tocomply with the timeline. The developer has requested an additional extension to complete closingtransactions.The Fifth Amendment will extend the term of the agreement to no later than November 1, 2023, andallow the Developer to finalize the underwriting process and begin construction.DISCUSSIONThe Redevelopment Agency to the City of Fairfield purchased the property from the City of Fairfield in2010 for future housing development. In 2013, after the dissolution of the Redevelopment Agency, theproperty was transferred to the Fairfield Housing Authority (FHA) to continue efforts to find a suitablehousing developer.On February 20, 2020, the FHA approved Resolution HA202002 approving the DDA for adevelopment proposal for a +162unit mixedincome housing project. During the due diligence process,the Developer discovered that the City previously used the site as a water storage facility with largeunderground concrete reservoirs. Even though the City later abandoned and demolished the concretereservoirs, the soil conditions were compromised, requiring extensive mitigation efforts to prepare thesite for building. Therefore, the Developer asked for the property to be reappraised to adjust the salesprice and solicit the City's participation in subsidizing the additional site preparation costs. The DDAhad to be amended to memorialize the new agreement amongst both parties and adjust the schedule ofperformance, the scope of development, and the project budget.On January 19, 2021, the FHA approved Resolution HA202102 approving the First Amendment to theDDA. The amended DDA also required the Developer to apply for alternative affordable housingfinancing and gave the FHA the right to review and approve plans and specifications for the projectbefore submittal. The final agreedupon purchase price for the property was $1,500,000 minus a creditof $400,000 for the required soil engineering work. The FHA will update the property's market valuebefore finalizing the project financing.The Second Amendment to the DDA extended the term of the agreement to February 10, 2023, to allowthe Developer to finalize financing for the project’s construction and obtain all planning approvals. AThird Amendment to the DDA was approved in March 2023 to allow an extension to the DDA to expireon August 1, 2023, to allow the Developer to finalize additional financing. While the developer isfinalizing the financial efforts, multiple delays, including a backlog of work with the underwriter, will notallow them to close escrow by August 1, 2023. A Fourth Amendment of the DDA was granted on August15, 2023, to give the developer additional time to complete underwriting for the project. The City andDeveloper need additional time to negotiate final deal terms that have been raised by the Constructionfinancers. Staff expects these deal terms to be completed no later than the second week of September15, 2023. The Fifth Amendment is therefore requested to amend closing to an outside date ofNovember 1, 2023. This extension ensures sufficient time to resolve all construction and bond financingissues related to the project. Construction completion is scheduled for November 2025.FINANCIAL IMPACTThe Developer will pay the FHA an estimated Purchase Price of $1,500,000 minus the $400,000 creditfor the soil engineering work. The net proceeds will be deposited into the FHA's LowMod IncomeHousing Fund (Fund 152 Object Code 2111).PUBLIC CONTACT/ADVISORY BODY RECOMMENDATIONN/AALTERNATIVE ACTIONThe Fairfield Housing Authority may choose not to approve the Fifth Amendment to the DDA. However,this would require staff to put the property back on the market, attempt to secure another housingdeveloper, and extend the development of the property further out.STAFF CONTACTLaTanya Terrones, Sr. Project Manager(707) 428[email protected] WITH City Attorney's Office
ATTACHMENTS:
Description
Proposed Resolution
Proposed Fifth Amendment to the Disposition and Development Agreement REVIEWERS:
Reviewer Action Date
Beavers, Esther Approved 8/31/2023 7:54 AM
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FAIRFIELD HOUSING AUTHORITY
RESOLUTION NO. HA2023-06
RESOLUTION OF THE FAIRFIELD HOUSING AUTHORITY APPROVING THE FIFTH AMENDMENT
TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BY AND AMONG THE FAIRFIELD
HOUSING AUTHORITY, IH PARKSIDE FAIRFIELD LLC, AFFORDABLE HOUSING ALLIANCE II,
INCORPORATION, AND SUTTON PLACE DEVELOPMENT CORPORATION FOR LAND LOCATED AT 1600 WOOLNER AVENUE, FAIRFIELD, CA
WHEREAS, the City of Fairfield approved the formation of the Fairfield Housing Authority (FHA) in November 1968 under Resolution HA68-01 to transact business and exercise its powers in its area of operation; and
WHEREAS, the Fairfield Redevelopment Agency purchased land from the City located at 1600 Woolner Avenue (Property); and
WHEREAS, on February 4, 2020, the FHA adopted Resolution HA2020 -02 approving the Disposition and Development Agreement (DDA) by and among the FHA, Affordable Housing Alliance II, Inc., and Sutton Place Development Corp., dated February 10, 2020, for the sale of the Property to Affordable Housing Alliance II, Inc., and Sutton Place Development Corp. to develop a mixed-income housing project; and
WHEREAS, on January 19, 2021, the FHA adopted Resolution HA2021-02 approving the First Amendment to the DDA by and among the FHA, IH Parkside Fairfield LLC, Affordable Housing Alliance II, Inc., and Sutton Place Development Corp. (collectively, “Developer”), extending the close of escrow to February 10, 2022, and subjecting the sales price to the latest market appraised value at the time of close. The appraised value and purchase price at the time of that resolution was $1,500,000 minus a credit of $400,000 for required soil engineering work; and
WHEREAS, On February 15, 2022, the FHA approved Resolution HA2022-01 approving the Second Amendment to the DDA, extending the close of escrow date to February 10, 2023; and
WHEREAS, on March 7, 2023, the FHA approved Resolution HA2023-01 approving the Third Amendment to the DDA extending the close of escrow to August 1, 2023; and
WHEREAS, on August 15, 2023, the FHA approved Resolution HA2023-05 approving the Fourth Amendment to the DDA extending the terms of the DDA to September 1, 2023; and
WHEREAS, the contemplated residential development is being undertaken pursuant to the Heart of Fairfield Specific Plan (Specific Plan), for which an Environmental Impact Report (EIR) was certified by the City Council on May 2, 2017; and
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RES. NO. 2023-06
WHEREAS, disposition of the Property and the proposed development is in conformance with the Specific Plan, and none of the events described in Section 15162 of the California Environmental Quality Act (CEQA) Guidelines have occurred; and
WHEREAS, the FHA and the Developer have negotiated a Fifth Amendment to the DDA to, among other things, extend the term of the D DA to November 1, 2023, allow more time to close Escrow and adjust performance milestones .
NOW, THEREFORE, THE FAIRFIELD HOUSING AUTHORITY HEREBY RESOLVES:
Section 1. The foregoing recitals are true and correct and are a substantive part of this resolution.
Section 2. The executive director is hereby authorized to execute and deliver, for and in the name of the FHA, the Fifth Amendment in substantially the form attached hereto and incorporated herein by reference with such non-substantive changes therein as the executive director may approve (such approval to be conclusively evidenced by the execution and delivery thereof).
Section 3. The officers and staff of the FHA are hereby aut horized, jointly, and severally, to do all things they may deem necessary or proper to effectuate the purposes of this resolution.
Section 4. The FHA's approval of this resolution and execution of the Fifth Amendment is exempt from environmental review under the CEQA, namely Section 15182 of the CEQA Guidelines and Section 65457 of the Government Code.
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RES. NO. 2023-06
PASSED AND ADOPTED this 5th day of September, 2023, by the following vote:
AYES: COMMISSIONERS: MOY / BERTANI / CARR /PANDURO / TONNESEN/ VACCARO / WILLIAMS__
NOES: COMMISSIONERS:
ABSENT: COMMISSIONERS:
ABSTAIN: COMMISSIONERS:
CHAIR
ATTEST:
____________________________
SECRETARY
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FIFTH AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT
This FIFTH AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT (“Fifth Amendment”) is dated September 5, 2023, and is entered into by and among the FAIRFIELD HOUSING AUTHORITY, a public entity (the “FHA”), and AFFORDABLE HOUSING ALLIANCE II, INC., a Colorado nonprofit corporation, (“Integrity”) and SUTTON PLACE DEVELOPMENT CORP, a California corporation (“Sutton”) and IH PARKSIDE FAIRFIELD (“Parkside). Integrity and Sutton are herein collectively, and jointly and severally referred to as, the “Developer.” FHA and Developer are sometimes individually referred to herein as “Party” and collectively as “Parties.”
RECITALS
A. The Parties entered into a Disposition and Development Agreement dated February 10, 2020 and amended it by a First Amendment to Disposition and Development Agreement dated January 25, 2021 (“DDA”), a Second Amendment to the Disposition and Development Agreement dated February 15, 2022, a Third Amendment to the Disposition and Development Agreement dated March 31, 2023, and a Fourth Amendment to the Disposition and Development Agreement dated August 15, 2023 in which the FHA agreed to sell certain real property (“Property”) to Developer upon satisfaction of certain conditions, and which requires Developer to timely develop a project on the Property.
B. The Parties desire to further amend the DDA.
NOW, THEREFORE, in consideration of the foregoing recitals, the mutual agreements/amendments herein, and other consideration, the sufficiency of which is hereby acknowledged, the Parties hereby agree as follows.
AGREEMENT/AMENDMENTS
1. Supplemental Escrow Instructions. Upon the execution of this Fifth Amendment, the parties shall deliver a copy of this executed Fifth Amendment to Escrow Holder, and this Fifth Amendment shall then constitute additional supplemental escrow instructions of the Parties to Escrow Holder.
2. Extension of Closing Deadline. Section 2.2 of the DDA is hereby amended to read, “Escrow shall close (the “Close of Escrow”) on or before November 1, 2023.” Additionally, the deadline for the Close of Escrow in the Item 9 of the Schedule of Performance (Exhibit “C” to the DDA), is hereby changed to November 1, 2023.
3. Time of Essence. Time is of the essence of every provision hereof in which time is a factor.
4. Effect on DDA. All terms and conditions of the DDA that are not expressly modified by this Fifth Amendment shall remain unmodified, in full force and effect and binding on the Parties.
5. Conflict. In the event of a conflict between the terms and conditions of this Fifth Amendment and the terms and conditions of the DDA, the terms and conditions of this Fifth Amendment shall control.
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6. Counterparts. This Fifth Amendment may be signed in counterparts (including facsimile or electronic counterparts), each of which shall be deemed an original, and all such counterparts, when taken together, shall constitute one agreement.
7. Governing Law. The laws of the State of California shall govern the interpretation and enforcement of this Fifth Amendment, without application of conflicts or choice of laws principles. Jurisdiction for this Fifth Amendment shall be the Solano County Superior Court.
8. Interpretation. The terms, provisions, conditions, covenants, restrictions and agreements contained in this Fifth Amendment shall not be construed in favor of or against any Party but shall be construed as if each Party prepared this Fifth Amendment.
9. Entire Agreement. The DDA, as amended by this Fifth Amendment, represents the entire understanding between the Parties as to the subject matter of the DDA, as so amended.
The Parties have signed and entered into this Fifth Amendment as of the date first set forth above.
DEVELOPER:
AFFORDABLE HOUSING ALLIANCE
II, INC.
By:
Philip Wood
President
SUTTON PLACE DEVELOPMENT CORP
By:
Patrick Morrill President
FHA:
FAIRFIELD HOUSING AUTHORITY
By:
Executive Director
APPROVED AS TO FORM:
David Lim
City Attorney
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