RESOLUTION NO. R-2024-03
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA, APPROVING A PUT OPTION
AGREEMENT WITH CALIFORNIA LAND ACQUISITION
FUND HOLDING IV LLC FOR THE PURCHASE OF 325
BAKER STREET FOR AN AFFORDABLE HOUSING
DEVELOPMENT ALONG BAKER STREET
A. Recitals.
(i.) On February 6, 2023, the City issued a Request for Proposals (RFP) for an Affordable Housing Development on Baker Street and on April 3, 2023 the Evaluation Committee reviewed and scored the proposals received. The Evaluation Committee agreed that Mercy Housing would be the best qualified developer to construct and operate a high-quality affordable housing development along Baker Street; (ii.) On April 19, 2023 the Planning and Economic Development Ad Hoc Committee reviewed the proposals and the recommendation of the Evaluation Committee. The Ad Hoc Committee also agreed to recommend Mercy Housing as the top selected proposal to the City Council. on June 6, 2023, the City Council agreed to authorize the City Administrator to enter into a Land Purchase Option Agreement with Mercy Housing California for development and operation of a high-density affordable housing development on Baker Street;
(iii.) Mercy Housing California plans to design, construct and administer an affordable housing development for families and families moving out of homeless on the property located at 323, 307, 312, and 314 Baker Street in the City of Placentia; (iv.) The development will include approximately 68 units of affordable housing, with a mix of 1, 2, and 3 bedrooms ranging from 30% to 60% AMI, 20 of the units to be set-aside for formerly homeless households, and potentially a Phase II Plan for approximately 40 units, which includes the property at 325 Baker Street (APN 339-382- 20);
(v.) The property owner of 325 Baker Street agrees to sell the property to Mercy Housing California and Mercy Housing wishes to purchase the property and apply for additional funding in an effort to construct a larger development along Baker Street. (vi.) If Mercy Housing California determines it is not feasible to construct and expand the Affordable Development at 325 Baker Street after four (4) years, Mercy shall have the option to require the City to purchase the Property, subject to the terms set forth in the attached Agreement (Exhibit "A");
(vii.) All other legal prerequisites to the adoption of this Resolution have occurred.
B. Resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
(1.) In all respects as set forth in the Recitals, Part A., of this Resolution. (2.) The Put Option Agreement attached hereto as Exhibit "A" is approved and the City Administrator is authorized to execute the Land Purchase Option Agreement. (3.) The City Administrator, or his designee, hereby is authorized and directed to take all actions necessary and appropriate to carry out this Resolution. (4.) The Mayor shall sign this resolution, and the Clerk shall attest and certify to the passage and adoption thereof.
(5.) The City Council declares that, should any provision, section, paragraph, sentence or word of this resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction, or by reason of any preemptive or inconsistent legislation, the remaining provisions, sections, paragraphs, sentences and words of this resolution shall remain in full force and effect.
PASSED AND ADOPTED this 23rd day of January 2024.
Jeremy Yamaguchi, Mayor
ATTEST:
Robert McKinnell, City Clerk
STATE OF CALIFORNIA
CITY OF PLACENTIA
I, Robert McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing resolution was adopted at a regular meeting of the City Council of the City of Placentia held on the 23rd day of January 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Robert McKinnell, City Clerk
APPROVED AS TO FORM:
Christian L. Bettenhausen, City Attorney
Exhibit A: Put Option Agreement