RESOLUTION R2022-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NAPA, STATE OF CALIFORNIA, (A) AUTHORIZING THE CITY MANAGER TO EXECUTE A PURCHASE AND SALE AGREEMENT FOR THE PROPERTY LOCATED AT 3875 JEFFERSON STREET FOR THE FUTURE DEVELOPMENT OF AFFORDABLE HOUSING; (B) DETERMINING THAT THE ACTIONS AUTHORIZED BY THIS RESOLUTION ARE EXEMPT FROM CEQA; AND (C) APPROVING AN ASSOCIATED EXPENDITURE BUDGET INCREASE IN THE TRANSIENT OCCUPANCY SPECIAL TAX FOR AFFORDABLE AND WORKFORCE HOUSING IN THE AMOUNT OF $2,700,000 AS DOCUMENTED IN BUDGET AMENDMENT NO. 410 WHEREAS, the Napa Valley Lutheran Church, a California nonprofit corporation (“Seller”) owns a parcel at 3875 Jefferson Street in Napa (APN 038-370-008-000) (the “Property”); and WHEREAS, the Seller listed the Property for sale at a price of $2.5 million; and WHEREAS, the Property is zoned as low-density residential; and WHEREAS, the City of Napa, like much of California, faces a housing affordability crisis for both rental and homeownership opportunities, and the Napa City Council has identified the creation of affordable housing opportunities as a priority; and WHEREAS, the City of Napa has a Transient Occupancy Special Tax Fund for the specific purpose of funding the development or rehabilitation of affordable housing for households up to 120% of Area Median Income; and WHEREAS, City desires to purchase the Property for the purposes of later transferring it to an affordable housing developer for the construction of housing for affordable to households who earn up to 120% of Area Median Income; and WHEREAS, the California Surplus Lands Act, California Government Code Section 54220 et seq. (the “SLA”) requires the City to declare land either “surplus land” or “exempt surplus land,” as supported by written findings, before it may take any action to dispose of it consistent with City’s policies or procedures; and WHEREAS, pursuant to Government Code Section 54221 (f)(1)(A), the City can declare property as “exempt surplus land.” exempt from further compliance with the requirements of the SLA if the City transfers the surplus land for the development of affordable housing in accordance with the affordability requirements set forth in Government Code Section 37364; and WHEREAS, Government Code Section 37364 authorizes cities to sell, convey, or otherwise dispose of the real property at less than fair market value, or purchase an interest in the real property, to provide affordable housing under whatever terms and conditions the city deems best suited to the provision of such housing provided that not less than 40 percent of the total number of housing units developed are affordable to households whose incomes are equal to, or less than, 75 percent of the maximum income of lower income households, and at least half of which shall be affordable to very low income households, and that the housing units are restricted by a regulatory agreement requiring that the housing units remain affordable for at least 30 years; and WHEREAS, the City’s intention is to transfer the Property to an affordable housing developer in accordance with the requirements of Health and Safety Code Section 37364 and therefore declare the Property as “exempt surplus land.” NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Napa, as follows:
The City Council finds that the facts set forth in the recitals to this Resolution are true and correct, and establish the factual basis for the City Council’s adoption of this resolution.
The City Council hereby determines that the actions authorized by this resolution are exempt from CEQA pursuant to CEQA Guidelines Section 15332, which exempts infill development projects on no more than five acres of land substantially surrounded by urban uses.
The City Council hereby authorizes the City Manager to negotiate and execute a Purchase and Sale Agreement ("PSA") with the Seller subject to the following conditions:
The purchase price for the Property shall be the lesser of (i) Two Million Five Hundred Thousand No/100 Dollars ($2,500,000.00) or (ii) the appraised value of the Property (“Purchase Price”). The City will complete the appraisal during the Due Diligence Period.
The City shall have forty-five (45) days from the effective date of the PSA (the “Due Diligence Period”) to review all space planning, construction plans, and zoning for City’s intended use and make any and all inspections, investigations, tests and surveys of the Property as the City Manager deems necessary or desirable including, without limitation, studies relating to environmental conditions of the Property, existing tenant(s) and lease(s), and the cost and timing of relocating existing tenant(s) in accordance with the California Relocation Assistance Act (Gov. Code §§ 7260 et seq.) (“Relocation Law”), and any other matters City determines relate to the Property. City may terminate the PSA and receive a refund of the Deposit at any time prior to expiration of the Due Diligence Period.
Close of Escrow for the Property shall be the later of fifteen (15) days from (i) the expiration of the Due Diligence Period or (ii) the relocation of all tenant(s) from the Property in accordance with Relocation Law. The Seller shall deliver the Property to the City vacant at the Close of Escrow. Accordingly, escrow shall not close until all tenant(s) have been relocated and Seller can deliver the Property vacant.
The City shall fund relocation costs in accordance with State and Federal relocation law.
Real property taxes and assessments (if applicable) shall be prorated between the City and the Seller at closing. Seller shall pay any required documentary transfer taxes and real estate commissions. The City shall pay for all title insurance desired by City and all costs and expenses required to relocate any tenant(s) in compliance with Relocation Law. The City and Seller shall equally share the escrow fees and recording fees. Each party will be responsible for and bear all of its own costs and expenses incurred in connection with the proposed purchase and sale, including without limitation, all accounting, legal and other fees and expenses.
The City Council hereby authorizes a budget adjustment of $2,700,000 as referenced in Budget Amendment No. 410 attached hereto and incorporated herein as EXHIBIT A, in the Transient Occupancy Special Tax for Affordable and Workforce Housing Fund to fund the acquisition of the Property and associated due diligence costs.
This resolution shall be effective immediately upon adoption.
I HEREBY CERTIFY that this resolution was PASSED AND ADOPTED at a regular meeting of the City Council of the City of Napa held on October 4, 2022 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: ________________________
Tiffany Carranza
City Clerk
Approved as to form:
Michael W. Barrett
City Attorney
ATTACHMENT 1
R2022-__ Page PAGE 3 of NUMPAGES 3 October 4, 2022
ATTACHMENT __
R2017-__ Page PAGE 1 of NUMPAGES 4 Type approved date of resolution here