RESOLUTION NO. ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING AN AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT AND AN AFFORDABLE HOUSING AND LOAN AGREEMENT (HOME FUNDS), BOTH BY AND BETWEEN THE CITY OF FULLERTON AND META DEVELOPMENT, LLC.
WHEREAS, the City of Fullerton (“City”) is a California municipal corporation organized and existing pursuant to and under the general laws of the State of California; and WHEREAS, City is the owner of certain real property comprising approximately 2.25 acres and located at 1600 West Commonwealth Avenue, in the City of Fullerton (“Site”); WHEREAS, the Site was acquired with funds from the following sources: (i) Redevelopment Agency funds, (ii) Capital Projects (funded by the Sanitation Charge Fund), (iii) Water, and (iv) Sewer; and WHEREAS, in June 2020, City declared the Site as surplus and notified the State Housing and Community Development Department and all housing developers of this action; and WHEREAS, the City received numerous responses and in March 2021, the City Council released to the top six developers a Request for Proposals (RFP) for development of affordable housing on the Site; and WHEREAS, the City Council reviewed five proposals for the Site and selected Meta Housing Corporation (“Meta”) as the developer; and WHEREAS, City staff have negotiated an Affordable Housing and Property Disposition Agreement, including attachments thereto (collectively, the "AHPDA"), with Meta Development, LLC, a California limited liability company (“Developer”), an entity established by Meta, which provides for (i) City to (a) sell the Site to Developer for a purchase price of $10,700,000, which is the fair market value of the Site, and (b) provide to Developer a seller-carryback loan in the amount of the purchase price, and a loan from City’s 2010 taxable tax allocation housing bonds in the amount of up to $717,738, to assist Developer with the costs Developer incurs to develop the “Project” (defined below), and (ii) Developer to develop on the Site a sixty-five (65) unit affordable housing rental development project to be known as Pointe Common, with sixty-four (64) of the units to be restricted for rental to and occupancy by income-eligible households at an affordable rent for a period of fifty-five (55) years (the “Project”); and WHEREAS, City staff have also negotiated an Affordable Housing and Loan Agreement (HOME Funds), including attachments thereto (collectively, the "HOME Loan Agreement"), with Developer, which provides for City to provide to Developer a loan of HOME funds in the amount of up to $1,000,000 to assist Developer with the costs Developer incurs to develop the five (5) units in the Project to be designated as HOME units; and WHEREAS, City staff retained Keyser Marston Associates to prepare a financial gap analysis for the Project (the “KMA Analysis”). The KMA Analysis concludes that the warranted financial assistance for the Project is $12,417,738, as requested by the Developer and that the Developer’s development cost estimates are reasonable given the current inflationary environment, entitlement status and type of construction; and WHEREAS, City staff has presented the draft AHPDA, draft HOME Loan Agreement, and the KMA Analysis to the City Council for consideration; and WHEREAS, on the 1st day of August, 2023, the City Council held a public hearing on the proposed AHPDA and HOME Loan Agreement, at which time the City Council reviewed and evaluated all of the information, testimony and evidence presented, including but not limited to the draft AHPDA, the draft HOME Loan Agreement, the staff report, the KMA Analysis, and the oral and written testimony received from persons wishing to appear and be heard.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FULLERTON HEREBY RESOLVES AS FOLLOWS:
1. Based on all of the information, testimony, and evidence presented at the public hearing, including but not limited to the draft AHPDA and draft HOME Loan Agreement, the KMA Analysis, the information and evidence set forth in the staff report, and the oral and written testimony received, the City Council finds and determines as follows:
a. That the AHPDA and HOME Loan Agreement are in the best interests of the citizens of the City of Fullerton. b. That the City's disposition of the Site to the Developer and the development of the Site pursuant to the AHPDA and HOME Loan Agreement will provide housing for income-eligible households. c. That the consideration the Developer will pay for the Site is not less than the fair market value of the Site.
2. That each of the AHPDA and HOME Loan Agreement by and between City and Developer, copies of which are on file with the City Clerk, are hereby approved.
3. The City Council authorizes and directs the City Manager and special counsel to the City to make final modifications to the AHPDA and HOME Loan Agreement that are consistent with the substantive terms of the AHPDA and HOME Loan Agreement approved hereby, and authorizes and directs the City Manager to thereafter sign the AHPDA and HOME Loan Agreement on behalf of the City (provided, the HOME Loan Agreement may not be signed until such time as the Developer has obtained binding commitments for all financing required for the Project, as contemplated by the HOME Loan Agreement), and to take such other and further actions as may be necessary and proper to carry out the terms of the AHPDA and HOME Loan Agreement and the purpose of this Resolution, including but not limited to signing such other and further documents, including the documents attached as exhibits to the AHPDA and HOME Loan Agreement, and any documents required to effect the sale and transfer of the Site to the Developer pursuant to the terms of the AHPDA.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Fullerton held this 1st day of August, 2023. _________________________________
CITY OF FULLERTON, MAYOR
ATTEST:
_________________________________
CITY CLERK
CITY OF FULLERTON
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF FULLERTON )
I, Lucinda M. Williams, City Clerk of the City of Fullerton, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Fullerton at a regular meeting of the City Council of the City of Fullerton on the 1st day of August, 2023, and carried by the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
CITY CLERK
CITY OF FULLERTON
882/036753-0123
19451484.1 a07/27/23
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882/036753-0123
19451484.1 a07/27/23
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