RESOLUTION NO. ____- 22
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL
APPROVING AN AMENDED AND RESTATED PREDEVELOPMENT LOAN
AGREEMENT BETWEEN THE CITY OF PLEASANT HILL AND SATELLITE AFFORDABLE HOUSING ASSOCIATES TO CONTRIBUTE $736,000 TOWARD THE
CHOICE IN AGING SENIOR AFFORDABLE HOUSING DEVELOPMENT
WHEREAS, by adoption of Resolution No. 03-12 on January 9, 2012, the City of Pleasant Hill (“City”) elected to retain all housing assets and functions previously performed by the Pleasant Hill Redevelopment Agency (“Redevelopment Agency”) and transferred all housing related rights, powers, duties and obligations of the Redevelopment Agency to the City as the “Successor Housing Entity” to the Redevelopment Agency pursuant to California Health and Safety Code (“HSC”) Section 34176; and
WHEREAS, following dissolution of the Redevelopment Agency, any funds transferred to the Successor Housing Entity, together with any funds generated from former Redevelopment Agency housing assets, are to be maintained in a separate Low and Moderate Income Housing Asset Fund (“LMIHAF”) subject to the requirements of HSC Section 34176.1; and WHEREAS, Choice in Aging, a California non-profit corporation (“CiA”) owns that certain real property located at 490 Golf Club Road, Pleasant Hill, California (A.P.N. 153-030- 004-3) (the “Site”) that CiA desires to be developed with (a) a senior housing project consisting of approximately eight-two (82) multi-family rental units, of which not less than thirty (30) shall be affordable to extremely low income households (the “Housing Project”) and (b) a commercial project consisting of commercial office, health care, health care services, clinic and conference space dedicated to serving the senior community (the “Commercial Project”); and WHEREAS, the City previously entered into that certain Predevelopment Loan Agreement (the “Original Loan Agreement”) dated November 14, 2016 with Rehabilitation Services of Northern California, a California nonprofit corporation (predecessor by name change to CiA) pursuant to which the City agreed to advance to CiA an amount not to exceed Two Hundred ThirtySix Thousand Dollars ($236,000.00) (the "Original Loan"), to pay a portion of predevelopment costs for the Housing Project subject to the terms and conditions set forth in the Original Loan Agreement; and
WHEREAS, in furtherance of the development of the Housing Project, CiA entered into that certain “Amended and Restated Memorandum of Understanding by and between Satellite Affordable Housing Associates (“SAHA”) and CiA dated as of July 30, 2020 (the “MOU”), pursuant to which CiA and SAHA agreed that SAHA would have lead responsibility for development of the Housing Project, as well as limited responsibility for the Commercial Project; and
WHEREAS, the MOU anticipates that SAHA will establish a limited partnership in which SAHA or an affiliate of SAHA will serve as general partner (the “Partnership”) for purposes of securing low income housing tax credit financing for the development of the Housing Project, and that the Partnership will ground lease a portion of the Site (the “Housing Site”) from CiA; and 2 WHEREAS, the MOU further declares that CiA will assign and SAHA will assume the Original Loan, and SAHA will pursue the Housing Project in a manner consistent with the Original Loan. In furtherance of the MOU, substantially concurrently herewith, CiA and SAHA entered into an Assignment and Assumption Agreement pursuant to which CiA assigned and SAHA assumed all the rights and responsibilities of the Original Loan Agreement; and WHEREAS, in furtherance of the Housing Project and consistent with the terms of the MOU, CiA and SAHA additionally entered into that certain Option to Ground Lease dated as of August 25, 2020 (the “Option”) pursuant to which CiA granted to SAHA an option to ground lease the Housing Site, pursuant to certain terms and conditions as more specifically set forth in the Option; and
WHEREAS, SAHA has continued to pursue the development of the Housing Project in a manner consistent with the terms of the Original Loan Agreement and the MOU; and WHEREAS, on February 4, 2020, the City Council made a preliminary commitment to provide SAHA with an additional Five Hundred Thousand Dollars ($500,000.00) in predevelopment funds (the “Additional Predevelopment Funds”) for costs associated with the Housing Project; and
WHEREAS, City and SAHA desire to enter into an Amended and Restated Predevelopment Loan Agreement (“Amended Loan Agreement”) to increase the Original Loan to include the Additional Predevelopment Funds, to provide the terms pursuant to which the Additional Predevelopment Funds will be disbursed, to amend the number of units that will be affordable for extremely low income households from twenty-seven to thirty, and to amend the security to be provided by SAHA to secure the loan to reflect those property and related interests that are held by SAHA, rather than the interest in real property held by CiA; and WHEREAS, on January 25, 2021, the City Council adopted Resolution No. 8-21 adopting the Final Mitigated Negative Declaration (“MND”) prepared for the 490 Golf Club Road project, referred to here as the Housing Project, adopting environmental findings pursuant to the California Environmental Quality Act (Public Resources Code Sections 21000 et seq.) (“CEQA”), and approving a Mitigation Monitoring and Reporting Program.
WHEREAS, pursuant to CEQA, when taking subsequent discretionary actions in furtherance of a project for which an MND has been adopted, the lead agency is required to review any changed circumstances to determine whether any of the circumstances under Public Resources Code section 21166 and State CEQA Guidelines Section 15162 require additional environmental review; and WHEREAS, staff evaluated the proposed project in light of the standards for subsequent environmental review outlined in Public Resources Code section 21166 and State CEQA Guidelines section 15162 and concluded that the MND fully analyzed and mitigated, where feasible, all potentially significant environmental impacts, if any, that would result from the Amended Loan Agreement, and therefore, no subsequent environmental impact report (“EIR”) or mitigated negative declaration is required; and
3 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pleasant Hill:
Section 1. The foregoing recitals are true and correct and constitute a substantive part of this Resolution.
Section 2. As the decision-making body for the Amended Loan Agreement, the City Council has reviewed and considered the MND, any oral or written comments received, and the administrative record prior to making any decision on the Amended Loan Agreement. City Council finds that the MND contains a complete and accurate reporting of all of the environmental impacts associated with 490 Golf Club Project aka Housing Project and the Amended Loan Agreement.
Section 3. Findings on the Necessity for a Subsequent or Supplemental Environmental Impact Report. Based on the substantial evidence set forth in the record, including but not limited to, the MND and all related information presented to the City Council, the Council finds that, pursuant to State CEQA section 15162, no further environmental review is required Section 4. The City Council further finds that the preparation of a subsequent or supplemental EIR is not required for the Amended Loan Agreement as it:
A. will not result in substantial changes that would require major revisions of the MND due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and
B. will not result in substantial changes with respect to the circumstances under which the Amended Loan Agreement that would require major revisions of the MND due to the involvement of new significant environmental effects or a substantial increase in the severity of the previously identified significant effects; and
C. does not present new information of substantial importance that was not known and could not have been known with the exercise of reasonable diligence at the time the MND documents were adopted.
Section 5. The City Council hereby approves the Amended Loan Agreement incorporated as Exhibit A to this resolution.
Section 6. The City Manager and/or their designee is authorized to take all actions necessary to effectuate the implementation of the Amended Loan Agreement. 4 ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting held on the day of 21st day of March, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
MICHAEL G. HARRIS, OD, Mayor
ATTEST:
DANIELLE K. HABR, City Clerk
EXHIBIT A
AMENDED AND RESTATED PREDEVELOPMENT LOAN AGREEMENT
BETWEEN THE CITY OF PLEASANT HILL AND
SATELLITE AFFORDABLE HOUSING ASSOCIATES
[to be attached]