RESOLUTION NO. _____
A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA APPROVING AN AGREEMENT BETWEEN THE CITY OF SANTA CLARA AND CHARITIES HOUSING DEVELPOMENT CORPORTATION AND AFFILIATES FOR THE CIVIC CENTER AFFORDABLE HOUSING PROJECT LOCATED AT 1601 CIVIC CENTER DRIVE, SANTA CLARA (APN: 224-49-006) BE IT RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
WHEREAS, in 1964, the City sold this site to the Community Methodist Church of Santa Clara and recorded an indenture limiting the use of approximately one third of the site as a setback for landscaping, gardening, and uncovered parking to be consistent with the City’s Civic Center plan; WHEREAS, removing the indenture will increase the development potential of the property and make affordable housing more feasible on this site; WHEREAS, on September 2, 2021, Charities Housing Development Corporation of Santa Clara County filed an application to redevelop the property at 1601 Civic Center Drive from office use to residential as a 100% affordable housing project. The proposed development would include 106 income restricted units and two manager units for a total of 108 units; WHEREAS, on November 15, 2022, the City Council adopted resolutions to adopt the Mitigated Negative Declaration (MND) and the Mitigation Monitoring and Reporting Program (MMRP) for the Civic Center Family Housing Project, to approve a General Plan Amendment from Community Commercial to High Density Residential, to approve a Rezone from General Office (OG) to Planned Development (PD) to allow a five-story affordable housing development, and to authorize the City Manager to negotiate and execute a density bonus agreement in a form approved by the City Attorney; WHEREAS, on May 16, 2023, the County of Santa Clara Board of Supervisors approved delegation of authority to the County Executive, or designee, to negotiate, execute, amend, or terminate all legal documents relating to one or more loans with Charities Housing Development Corporation of Santa Clara County or affiliate, in an amount not to exceed $12,100,000 for the development of 106 new affordable housing units, plus two manager's units for a housing project to be located at 1601 Civic Center drive in Santa Clara; WHEREAS, on May 16, 2023, the County of Santa Clara Board of Supervisors adopted a Resolution as a responsible agency for the Civic Center Multifamily Affordable Housing Development confirming that the Board has independently reviewed and considered the information contained in the environmental record for the project, and making required California Environmental Quality Act findings. adopted a resolution making California Environmental Quality Act findings for the Civic Center Project at 1600 Civic Center Drive, Santa Clara; WHEREAS, on June 27, 2023, the City Council approved a budget revision to reallocate $1,600,000 in Santana West Development Project Settlement funds from the 1601 Civic Center Drive project to the proposed Benton/Lawrence Family Interim housing project and replaced these funds by allocating $1,600,000 from housing impact fees collected in the City Affordable Housing Capital Fund; WHEREAS, on October 10, 2023, the City Council conducted a duly noticed public meeting, at which time all interested persons were invited to provide testimony and evidence, both in support of and in opposition to the proposed delegation of authority to enter into a Loan Agreement and release the land indenture; WHEREAS, the Project Documents, including the Loan Agreement, will help address the City’s housing needs at a broad range of income levels by providing the City with 108 housing units, of which 106 will be affordable to households with Area Median Income (AMI) levels ranging from 30% to 50% AMI; and, WHEREAS, implementation of the Project will require myriad permits, approvals, entitlements agreements, permits to enter, utility services, subdivision maps, building permits, and other authorizations in order to implement the Project, including but not limited to a Loan Agreement, Deed of Trust, Promissory Note, Affordable Housing Agreement and Regulatory Agreement (together, the “Project Documents”).
NOW THEREFORE, BE IT FURTHER RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
1. That the City Council hereby finds that the above Recitals are true and correct and by this reference makes them a part hereof;
2. That the City Council hereby approves and authorizes the City Manager to negotiate and execute a Loan Agreement with Charities Housing Development Corporation of Santa Clara County for a loan of up to $4,944,484 to support the construction of 106 affordable housing units and 2 manager units located at 1601 Civic Center Drive; to make modifications to the Loan Agreement and attachments consistent with the attached Term Sheet and as reviewed by the City Attorney for form and consistency; to execute all documents necessary (including Deeds of Trust, Promissory Notes, and Affordable Housing Agreements) to implement the Loan Agreement and close escrow and that this funding commitment shall be contingent upon National Environmental Policy Act (NEPA) clearance from HUD;
3. That the City Council hereby approves and authorizes the City Manager to execute documents that will release a recorded indenture that currently limits the site’s developable area;
4. Effective date. This resolution shall become effective immediately.
I HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED AND ADOPTED BY THE CITY OF SANTA CLARA, CALIFORNIA, AT A REGULAR MEETING THEREOF HELD ON THE ___ DAY OF _________, 2023, BY THE FOLLOWING VOTE:
AYES: COUNCILORS:
NOES: COUNCILORS:
ABSENT: COUNCILORS:
ABSTAINED: COUNCILORS:
ATTEST: ______________________________
Nora Pimentel, MMC
Assistant City Clerk
CITY OF SANTA CLARA
Attachments incorporated by reference:
1. Construction and Permanent Loan Term Sheet DRAFT - 1601 Civic Center Drive
2. Land Indenture Documents
Resolution/Charities Housing – 1601 Civic Center Drive Page 1 of 4 Rev: 7/27/2023