Resolution 2025-XX Page 1 of 2
RESOLUTION NO. 2025-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FREMONT
AUTHORIZING THE CITY MANAGER TO EXECUTE AN
ACQUISITION LOAN AGREEMENT FOR $9,500,000 WITH PACIFIC
WEST COMMUNITIES, INC., AND APPROPRIATING $ 12 MILLION
FROM FUND 196 (AFFORDABLE HOUSING FUND) FOR
DEVELOPMENT OF 45021 WARM SPRINGS BOULEVARD AND
MAKING FINDINGS OF CEQA EXEMPTION
WHEREAS, on March 19, 2024, the City Council adopted Resolution No. 2024-09 approving a construction loan in the amount of $12 million, in the form of a 55-year loan at a rate of 3% simple interest, for the 240-unit affordable housing project proposed by The Pacific Companies and Maracor Development (TPC/Maracor) at 45021 Warm Springs Boulevard; and
WHEREAS, TPC/Maracor has requested approval for $9.5 million of the funding award to be used for property acquisition, with the remaining $2.5 million to be used for construction; and
WHEREAS, the City’s Notice of Funding Availability (NOFA) Guidelines allow for the use of affordable housing funds for acquisition, as well as construction, of affordable housing; and
WHEREAS, TPC/Maracor entered into a Purchase and Sale Agreement (PSA) for the property that has been amended and the purchase deadline extended until March 25, 2025, but the Seller is unwilling to extend the closing date much further; and
WHEREAS, the developer must have site control, either by ownership or via a valid PSA, to apply for additional funding through the California Debt Limit Allocation Committee (CDLAC) in May 2025; and
WHEREAS, the developer would acquire the property under the name of an affiliate entity, Pacific West Communities, Inc.; and
WHEREAS, the City’s acquisition loan will be evidenced by a loan agreement and promissory note and will be secured by the land in addition to assignment of plans and specifications and an Option to acquire the property if the project turns out to be infeasible; and
WHEREAS, on March 19, 2024, the City Council appropriated $12 million from the Affordable Housing In-Lieu Fee Fund (Fund 196) for construction of the 240-unit project at 40251 Warm Springs Boulevard; and
WHEREAS, City staff did not include expenditure of funding for this project for FY 24-25 and City staff recommends that City Council re-appropriate $12 million from Fund 196 to this fiscal year; and
Resolution 2025-XX Page 2 of 2
WHEREAS, the City will enter into a loan agreement for $9.5 million for acquisition and the remaining loan commitment of $2.5 million will be added to the City loan agreement before construction commences.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF FREMONT HEREBY:
SECTION 1. Authorizes the City Manager or designee to: (a) execute an Acquisition Loan for $9,500,000 with Pacific West Communities, Inc. and take such other actions as required to provide the loan, and (b) add $2,500,000 to the City loan agreement before construction commences; and
SECTION 2. Appropriates $12,000,000 from Fund 196 (Affordable Housing Development Fund) for Pacific West Communities, Inc. development at 45021 Warm Springs Boulevard; and
SECTION 3. Finds this action to be exempt from the California Environmental Quality Act (CEQA) pursuant to, without limitation, CEQA Guidelines Section 15061(b)(3) and/or 15378(b)(2), (4) and/or (5), and Section 15262 Feasibility and Planning Studies, each as a separate and independent basis, in that it is a governmental fiscal or administrative or fiscal action will have no potential to impact the environment, directly or indirectly.
ADOPTED , 2025, by the City Council of the City of Fremont by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney