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HomeMy WebLinkAboutR61-Economic Development CITY OF SAN BERNARDINO 0 R I 61 NA L ECONOMIC DEVELOPMENT AGENCY FROM: Emil A. Marzullo Interim Executive Director SUBJECT: TELACU Housing - San Bernardino IV, Inc. - Amendment No. I to the 2008 HOME Funds Loan and Grant Development Agreement (IVDA Redevelopment Project Area) DATE: June 11,2009 SvnoDsis of Previous Commission/Council/Committee Action(s): On June 4, 2009, Redevelopment Committee Members Johnson, Baxter and Brinker unanimously voted to recommend that the Mayor and Common Council and/or the Community Development Commission consider this action for approval. Recommended Motion(s): Open/Close Joint Puhlic Hearing (Mavor and Common Council) Resolution of the Mayor and Common Council of the City of San Bernardino approving an amendment to the City's 2005-2010 Consolidated Plan and the 2008-2009 Action Plan and allocating $902,476 in Federal HOME and CHDO Grant Funds to TELACU Housing - San Bernardino IV, Inc., a California non-profit public benefit corporation ("Developer") (lVDA Redevelopment Project Area) (Communitv Develonment Commission) Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute Amendment No. I to the 2008 HOME Funds Loan and Grant Development Agreement by and between the Agency and TELACU Housing - San Bernardino IV, Inc., a California non-profit public benefit corporation ("Developer") (lVDA Redevelopment Project Area) Contact Person(s): Project Area(s): Musibau Arogundade IVDA Redevelopment Project Area Phone: (909) 663-1044 Ward(s): 4th Supporting Data Attached: o Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s) Funding Requirements: Amount: $ $902,476 Source: HOME and CHDO Grant Program Funds Fiscal Year 2008-2009 Budget Budget Authority: '"'"""'.ws;~~~ . uss eJesus< 'interim Administrative Services Director 'co';;;;i'~sio;;7c'o;;;;cifNo'iCs:.m--_..m--mJ;?e:.'S--O.mmmmm~.O'O--9...=m'~'~'.:=r..mT"'eL5e'7~'9:'3~ Signature: Emil A. Marzullo, Interim Executive Director P\Agendas\Comm Dev CommissionlCDC 2009\07-06-09 rELACU Senior Housing IV - Amendment No I SRdoc COMMISSION MEETING AGENDA Meeting Date: 07/06/2009 Agenda Item Numher: _p-{gf ECONOMIC DEVELOPMENT AGENCY STAFF REPORT TELACU HOUSING - SAN BERNARDINO IV, INC. - AMENDMENT NO. I TO THE 2008 HOME FUNDS LOAN AND GRANT DEVELOPMENT AGREEMENT (IVDA REDEVELOPMENT PROJECT AREA) BACKGROUND: TELACU Housing - San Bernardino IV, Inc. ("TELACU"), is a non-profit community development corporation founded in the late 1960's to promote community and economic development activity. For the past 20 years, TELACU has participated in the U.S. Department of Housing and Urban Development ("HUD") Section 202 Program ("Program"). TELACU has developed senior housing throughout many communities in California such as Baldwin Park, EI Monte, Alhambra and Monterey Park. The Program provides grants to qualified non-profits to finance the construction and management of affordable rental housing for seniors. TELACU presently has three senior housing projects through the Program, with two located in downtown San Bernardino ("City") and one on East Commercial Road east of Waterman Avenue (225 units). In November 2006, TELACU applied for a HUD Section 202 Grant ("202 Grant") and received an award notification for $12.97 million (approximately $12.2 million of these funds can be used for construction costs only). This amount includes an additional $929,393 ofHUD funds received through an amendment process in March 2008 to construct and operate 90 units for seniors 62 years of age and older on the property located on the southeast corner of Highland and Central Avenues consisting of approximately 3.4 acres (the "Site"). Please see the aerial map ofthe site attached as Exhibit "A." The Site will be developed with a 90-unit, three-story senior citizen housing complex with a community center of which 89 of the units will be one-bedroom with a living room, kitchen, and bathroom containing approximately 540 square feet. There will also be a two-bedroom manager's unit on the premises ("Project"). The Project will contain plush and ample landscaping around the building with a water fountain at the corner of Highland and Central Avenues. It will also contain a common multi-purpose kitchen, library, laundry room, storage space, an attractive lobby/foyer and offices. The Site Plan prepared by Gregory Villanueva Architects is attached as Exhibit "B." CURRENT ISSUE: The original Project budget was estimated at $15.5 million. The budget includes land costs, construction costs, development and architectural fees, and off-site improvements, which are not covered by the 202 Grant. Through several consultation meetings with the City Engineer, it was understood that as a condition of development approval, TELACU will be required to mitigate the on- and off-site drainage and off-site traffic signal issues affecting the Site at a cost of approximately $2.2 million. The City would contribute $200,000 from the 2007-2012 budgeted CIP for the off-site improvements. On February 19, 2008, the Mayor and Common Council of the City of San Bernardino ("Council") and the Community Development Commission of the City of San Bernardino ("Commission") approved the $3.2 million HOME Funds loan with a forgiveness provision for the Project in the 2008 HOME Funds ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:\AgendasIComm Dev Commission\CDC 2009\07-06-09 TELACU Senior Housing IV - Amendment No 1 SR,doc COMMISSION MEETING AGENDA Meeting Date: 07/06/2009 A2enda Item Nnmber: ~(" Economic Development Agency Staff Report TELACU IV Senior Housing Amendment No.1 Page 2 Loan and Grant Development Agreement ("2008 Loan and Grant Agreement"). Since the approval of the 2008 Loan and Grant Agreement, the Developer has completed site investigations and has been made aware by the City that utilities would be required to be relocated from Highland Avenue to Central Avenue and be installed underground; and the City's impact and permit fee increase went into effect in January 2009, all at an additional cost estimated at $2,868,244. The original Project estimated cost was $15.5 million. The estimated new Project cost is $17,294,444. In order to meet this funding gap, the Developer is allocating $136,375 in deferred Developer fees for the Project and requested an additional $1,829,393 in HUD Section 202 funds leaving a gap of $902,476. This is the same dollar amount of additional funds that the Developer is requesting from the Agency and the subject of Amendment No. 1 to the 2008 Loan and Grant Agreement. Please refer to the revised budget table attached as Exhibit "C." In order to accommodate this Project proposal, Agency Staff must prepare an Amendment to the City's 2005-2010 Consolidated Plan and 2008-2009 Annual Action Plan to reflect the change in the HOME Program Project amount. In compliance with the City's approved Citizens Participation Plan and CDBGIHOME regulation under 24 CFR 570.302 and 24 CFR 91.105, on June 5, 2009, and on July 3, 2009, the required public notice of this Amendment to the 2005-2010 Consolidated Plan and the 2008- 2009 Action Plan was published in the San Bernardino County Sun, inviting and requesting citizens to provide written and/or oral comments with regards to this Amendment at this meeting. Separately, on February 18, 2009, the Planning Commission approved the Development Code Amendment No. 08-01 and Conditional Use Permit No. 08-28, to move the Project forward to development. On April 20, 2009, the Mayor and Common Council approved the Planning Commission's recommendation to approve the Development Code Amendment by amending Chapter 19.06 of the Development Code relative to Senior Housing and Congregate care housing. ENVIRONMENT AL IMPACT: The Project is exempt from the National Environmental Policy Act ("NEPA") under 24 CFR 58.35 and the California Environmental Quality Act ("CEQA"), pursuant to Section 15332, in-fill development, and no further environmental document is required pursuant to Section 15168 of the CEQA guidelines. FISCAL IMPACT: The $902,476 obligation will be funded from the Agency's general HOME and CHDO Grant Program Funds approved in the 2008-2009 Budget and as shall be authorized by this proposed action. RECOMMENDATION: That the Mayor and Common Council and the Community Development Commission adopt the attached Resolutions. ~ Emil A. Marzullo, Interim Executive Director P:\Agcndas\Comm Dev Commissioll\CDC 2009\07-06-09 TELACU Senior Housing IV _ Amendment No.1 SR.doc COMMISSION MEETING AGENDA Meeting Date: 07/06/2009 Agenda Item Number: fLCll JUL -13-2DEJ9 12: 42 FRClI"'1: TO: 96632294 P.l 2009-263 1 WHEREAS, on March 3, 2008, the Community Development Commission of the City of 2 San Bernardino ("Commission") approved the 2008 HOME Funds Loan and Grant Development i 3 Agreement ("HOME Agreement") between Ihe Agency and the Developer; and 4 WHEREAS. the Agency deems that the senior housing development undertaken by the 5 Developer herein is consistent with and supportive of the Agency's Housing Program and HOME 6 Program Regulations; and 7 WHEREAS. the Agency deems it desirable to enter into this Amendment 10 the HOME 8 Agreement ("Amendment No. I") with the Developer to provide an additional $902,476 in Federal 9 HOME and CHDO funds to pay for the increase in reYl.lired City development impact fees and the 10 costs associated with City required under-grounding and relocation of overhead utilities; and 11 WHEREAS, the Council desires to amend the Consolidated Plans and allocate $902,476 of 12 Federal HOME and CIIDO Grants to the Developer; and 13 WHEREAS, Ihe Project is exempt from the National Environmental Policy Act ("NEPA") 14 under 24 CFR 58.35 and the California Environmental Quality Act ("CEQA"). pursuant to Section 15 15332, in-fill development. 16 NOW, THEREFORE, IT IS HEREBY RESOLVED. DETERMINED AND ORDERED BY 17 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA},; BERNARDINO, AS 18 FOLLOWS: 19 Section 1. The Council hereby approves the amendment to both the (i) 2005-2010 20 Consolidated Plan and the (ii) 2008-2009 Action Plan of the City. Such amendment is with respect 21 to the allocation of an additional amount not to exceed $902,476 in Federal HOME and CHDO 22 Program Funds to the Developcr. Such allocation of funds is subject to approval of the 23 Amcndmcnt No. I to the HOME Agrecmcnt as may bc approved by the Community Development 24 Commission of the City of San Bernardino ("Commission") together with such amendment to the 25 (i) 2005-2010 Consulidated Plan and the (ii) 2008-2009 Action Plan and the Amendment No.1 to 26 the HOME Agre~ment as resented to the Commission and as attached to this Resolutio~ AI the Joint Public hearing of the Councilan Ol11mlSSlon conducted on this date, oral and 27 28\ written comments were considered before the adoption of this Resolution. 2 P \Ag~nda;;\Resoll1l."ns\Reso\.111.ln<;\2(,:.J9\07.06-09 IFLACl' IV Arlcndmem:-;o 1 \K'C' R~o doc I .. ...- .. 1 WHEREAS, on March 3, 2008, the Community Development Commission of the City of 2 San Bernardino ("Commission") approved the 2008 HOME Funds Loan and Grant Development 3 Agreement ("HOME Agreement") between the Agency and the Developer; and 4 WHEREAS, the Agency deems that the senior housing development undertaken by the 5 Developer herein is consistent with and supportive of the Agency's Housing Program and HOME 6 Program Regulations; and 7 WHEREAS, the Agency deems it desirable to enter into this Amendment to the HOME 8 Agreement ("Amendment No. I") with the Developer to provide an additional $902,476 in Federal 9 HOME and CHDO funds to pay for the increase in required City development impact fees and the 10 costs associated with City required under-grounding and relocation of overhead utilities; and 11 WHEREAS, the Council desires to amend the Consolidated Plans and allocate $902,476 of 12 Federal HOME and CHDO Grants to the Developer; and 13 WHEREAS, the Project is exempt from the National Environmental Policy Act ("NEPA") 14 under 24 CFR 58.35 and the California Environmental Quality Act ("CEQA"), pursuant to Section 15 15332, in-fill development. 16 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY 17 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS 18 FOLLOWS: 19 Section 1. The Council hereby approves the amendment to both the (i) 2005-2010 20 Consolidated Plan and the (ii) 2008-2009 Action Plan of the City. Such amendment is with respect 21 to the allocation of an additional amount not to exceed $902,476 in Federal HOME and CHDO 22 Program Funds to the Developer. Such allocation of funds is subject to approval of the 23 Amendment No. I to the HOME Agreement as may be approved by the Community Development 24 Commission of the City of San Bernardino ("Commission") together with such amendment to the 25 (i) 2005-2010 Consolidated Plan and the (ii) 2008-2009 Action Plan and the Amendment No. I to 26 the HOME Agreem . 27 o he Council and Commission conducted on this date, oral and 28 written comments were considered before the adoption of this Resolution. 2 P:\Agendas\Rcsolulions\Resollllions\2009\07_06_09 TELACU IV Amendment No, ] MCC ReSQ,doe 1 2 3 4 5 6 7 8 RESOLUTION NO. /.::.:-, ,:~ r~ "'0v (/ V' 1/ \, I :-"'"":l "- " 1(, \ ' 'I \' I ( ; '. 'I: -"". \ ", ", I' I,.." ~..~ l ."............ .\, 11'1' "__~J -,~,->' ,...J RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AN AMENDMENT TO THE CITY'S 2005-2010 CONSOLIDATED PLAN AND THE 2008-2009 ACTION PLAN AND ALLOCATING $902,476 IN FEDERAL HOME AND CHDO GRANT FUNDS TO TELACU HOUSING - SAN BERNARDINO IV, INC., A CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION ("DEVELOPER") (IVDA REDEVELOPMENT PROJECT AREA) WHEREAS, the City of San Bernardino (the "City") is an entitlement jurisdiction and 9 annually receives certain federal funds under the HOME Investment Partnership Act (the "HOME 10 Program") from the United States Department of Housing and Urban Development ("BUD"), in 11 order to carry out eligible affordable housing activities within the City in accordance with the 12 HOME Program Regulations set forth in Title 24 Code of Federal Regulations Part 92, et seq. (24 13 CFR Part 92); and 14 WHEREAS, on May IS, 2008, the Mayor and Common Council of the City of San 15 Bernardino ("Council") approved the City's 2005-2010 Consolidated Plan and the 2008-2009 16 Action Plan; and 17 WHEREAS, III compliance with the City's approved Citizens Participation Plan and 18 CDBG/HOME regulation under 24 CFR 570.302 and 24 CFR 91.105, on June 5, 2009 and, July 3, 19 2009, the required public notice of this amendment to the 2005-2010 Consolidated Plan and the 20 2008-2009 Action Plan was published in the San Bernardino County Sun newspaper, inviting and 21 requesting citizens to provide written and or oral comments with regards to this amendment at this 22 meeting, and as of this date, Agency Staff has not received any oral or written comments regarding 23 this amendment; and 24 WHEREAS, TELACU Housing - San Bernardino IV, Inc., a California non-profit 25 public benefit corporation ("Developer"), is a regional and locally certified, approved and 26 experienced non-profit housing organization that obtained approval from the United States 27 Department of Housing and Urban Development ("HUD") Section 202 Grant ("HUD Grant") for 28 the construction and operation of a 90-unit senior housing facility (the "Project"); and I P:\AgcndasIRCIoOI1IIioll$\Rcwlulions\2009\01..{)6...Q9 TELACU IV Amendmenl No. I MCC Reso.doc 7-6-0 f{ 6/ 1 WHEREAS, on March 3, 2008, the Community Development Commission of the City of 2 San Bernardino ("Commission") approved the 2008 HOME Funds Loan and Grant Development 3 Agreement ("HOME Agreement") between the Agency and the Developer; and 4 WHEREAS, the Agency deems that the senior housing development undertaken by the 5 Developer herein is consistent with and supportive of the Agency's Housing Program and HOME 6 Program Regulations; and 7 WHEREAS, the Agency deems it desirable to enter into this Amendment to the HOME 8 Agreement ("Amendment No. I") with the Developer to provide an additional $902,476 in Federal 9 HOME and CHDO funds to pay for the increase in required City development impact fees and the 10 costs associated with City required under-grounding and relocation of overhead utilities; and .11 WHEREAS, the Council desires to amend the Consolidated Plans and allocate $902,476 of 12 Federal HOME and CHDO Grants to the Developer; and 13 WHEREAS, the Project is exempt from the National Environmental Policy Act ("NEPA") 14 under 24 CFR 58.35 and the California Environmental Quality Act ("CEQA"), pursuant to Section 15 15332, in-fill development. 16 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY 17 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS 18 FOLLOWS: 19 Section 1. The Council hereby approves the amendment to both the (i) 2005-2010 20 Consolidated Plan and the (ii) 2008-2009 Action Plan of the City. Such amendment is with respect 21 to the allocation of an additional amount not to exceed $902,476 in Federal HOME and CHDO 22 Program Funds to the Developer. Such allocation of funds is subject to approval of the 23 Amendment No. I to the HOME Agreement as may be approved by the Community Development 24 Commission of the City of San Bernardino ("Commission") together with such amendment to the 25 (i) 2005-2010 Consolidated Plan and the (ii) 2008-2009 Action Plan and the Amendment No. I to 26 the HOME Agreement as presented to the Commission and as attached to this Resolution" \ tzr,r4c.ttliAltt:lJ7" '--,: Htflf 'oy' +L.'.J ,..... f.c,.c.#-,,-- ",...orJ-. . ~~rl- ,.,...,-<&.I>( 27 At the Joint Public hearing of the Council and Commission conducted on this date, oral and 28 written comments were considered before the adoption of this Resolution. 2 P \Agcndas\Resolulions\Resolulions\2009\07-06-09 TELACU IV Amendment "'0 I Mec Rc:sodoc 1 Section 2. The Commission makes a finding that the Project is exempt from NEPA 2 under 24 CFR 58.35 and CEQA, pursuant to Section 15332 of the CEQA guidelines, constitutes an 3 in-fill development, and no further environmental document is required pursuant to Section 15168 4 of the CEQA guidelines. 5 Section 3. This Resolution shall take effect upon its adoption and execution in the 6 manner as required by the City Charter. 7 /1/ 8 1// 9 1// 10 /1/ .11 1// 12 1// 13 1// 14 /1/ 15 1// 16 1// 17 1// 18 1// 19 1// 20 1// 21 1// 22 1// 23 1// 24 1// 25 1// 26 1// 27 1// 28 1// 3 P\Al!cnda5\Resolutions\Resolulions\2009\07_06_09 TELACL' IV Amendment No.1 Mec Reso.doc 1 2 3 4 5 6 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AN AMENDMENT TO THE CITY'S 2005-2010 CONSOLIDATED PLAN AND THE 2008-2009 ACTION PLAN AND ALLOCATING $902,476 IN FEDERAL HOME AND CHDO GRANT FUNDS TO TELACU HOUSING - SAN BERNARDINO IV, INC., A CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION ("DEVELOPER") (IVDA REDEVELOPMENT PROJECT AREA) I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 7 Common Council of the City of San Bernardino at a 8 thereof, held on the 9 Council Members: 10 ESTRADA 11 BAXTER 12 BRlNKER 13 SHORETT 14 KELLEY 15 JOHNSON 16 MC CAMMACK 17 18 19 meeting day of ,2009, by the following vote to wit: Aves Navs Abstain Absent Rachel G. Clark, City Clerk 21 20 The foregoing Resolution is hereby approved this 22 23 24 25 Appro 26 By:_ 27 28 day of ,2009. C 11 --( A .oCT 0 ~ /-1"i .p f) NO T J I G.-f'J. Patrick J. Morris, Mayor City of San Bernardino P:\Ago:ndas" ATTACHMENT 1 AMENDMENT NO.1 TO THE 2008 HOME FUNDS LOAN AND GRANT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND TELACU HOUSING - SAN BERNARDINO IV, INC. This Amendment No. I to the 2008 HOME Funds Loan and Grant Agreement (this "Amendment No. I") is entered into on July 6, 2009, by and between the Redevelopment Agency of the City of San Bernardino (the "Agency"), a public body, corporate and politic, and TELACU Housing- San Bernardino IV, Inc., a California nonprofit public benefit corporation (the "Developer"), and is entered into in consideration of the facts set forth in the following Recital paragraphs: -RECIT ALS- A. The Developer and the Agency have previously entered into an agreement entitled "2008 HOME Funds Loan and Grant Development Agreement", dated as of March 17, 2008 (the "HOME Agreement"). B. As of the effective date of this Amendment No.1, the Developer received from the United States Department of Housing and Urban Development ("HUD") Section 202 Capital Advance Program Funding for the Project in the amount of $11,226,200, a rental assistance contract in the amount of $434,900 and a budget contract in the amount of $1,304,700. The Developer has also secured an additional $1,829,393 in HUD 202 Amendment money to cover portions of the Project cost. C The Agency is desirous of assisting the Developer in the construction of the Project and has previously provided $1,300,000 in HOME Loan pursuant to the HOME Agreement for the acquisition of the Site with the loan repayment amounts then being utilized to provide certain additional grant funds in addition to $1,900,000 in grant for a total grant of $3,200,000 pursuant to the HOME Agreement for off-site and adjacent public improvements within street rights-of-way, including street roadways, sidewalks, curb and gutter, street lighting, undergrounding of overhead utilities and installation of signal lights ("Off-Site Improvements") and exterior amenities upgrades. However, due to increases in the City of San Bernardino development impact fees and permit fees, applicable to the City required under-grounding and relocation of overhead utilities, the Developer has requested additional assistance in the amount of $902,476 under this Amendment No. I for a total of $4,102,476 in Agency Federal HOME Funds, to cover the increase in City development impact fees and permit fees and costs associated with City required under-grounding and relocation of overhead utilities. D. The Agency has determined that the development of the Site pursuant to the HOME Agreement and this Amendment No. I and the fulfillment generally of the purposes of the HOME Agreement are in the vital and best interests of the City and the Agency. P:\Agendas\Agenda AnaehmenUlAgenda AttKhmentslAgenda Anachmcnl5\Agmm_Amc:nd 2009\01-01:Hl9 TELACU IV.. Amendment No. 110 HOME Agreement,do<: I NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND CONDITIONS CONTAINED HEREIN, THE AGENCY AND THE DEVELOPER AGREE AS FOLLOWS: Section 1. References to the HOME Al!reement: Defined Terms. (a) Unless the context of the usage of a term or phrase in this Amendment No. I may otherwise require, the meaning of words and phrases as contained in this Amendment No. I, which are indicated by an initially capitalized letter, shall be the same as set forth in the HOME Agreement. (b) The information contained in the Recitals as set forth in this Amendment No. I is true and correct in all respects. Section 2. Specific Amendments to the 2008 HOME A!!reement. (a) The HOME Agreement is hereby amended by this Amendment No. I in the manner as indicated in this Section 2 and which changes and amendments shall be effective from and after the date of approval of this Amendment No. I by the Developer and the Agency and execution hereof by the parties. (b) Section 402 of the HOME Agreement is hereby amended by substituting the following chart in place of that as is presently provided in the HOME Agreement: Construction and Permanent Financing: Amount of Section 202 Capital Advance Amount of Section 202 Amendment money Amount of deferred Developer fees Amount of Agency HOME Grant Total Development Cost $11,226,200 $ 1,829,393 $ 136,375 $ 4,102.476 $17,294,444 (c) The term "Agency Grant" as defined and as used in the HOME Agreement shall be in an amount equal to $4, I 02,4 76 pursuant to this Amendment No. I. (d) Section 404 of the HOME Agreement is amended by adding the word "City development impact and permit fees and cost associated with City required under-grounding and relocation of overhead utilities" into the penultimate sentence of said Section. Section 3. Effect of Amendment No.1. Except as modified or amended by this Amendment No. I, all of the provisions of the HOME Agreement shall remain in full force and effect following the effective date of this Amendment No. I. /II 1/1 /II /II /II 1/1 2 P:\AgendaslAgenda AttachmentslAgenda AttachmenlSlAgenda AnachmenlslAgrrnts-Amend 2009\07_06-09 TELACl: IV _ Amendment No. 110 HOME Agreementdoc: IN WITNESS WHEREOF, the parties hereto have accepted and made and executed this Amendment No. I upon the terms and conditions and with the provisions as set forth above and as of the date fust written above. AGENCY Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic Date: By: Emil A. Marzullo, Interim Executive Director Approved as to Form and Legal Content: By: (/~~~ Agency 0 el DEVELOPER TELACU Housing - San Bernardino IV. Ipc.!:: :.:.::... a California nonprofit public benefit coq,Oiticlo:n.....:-..:.....:... ..~.::.., ':::. .:. . . . ',' . ............ ..~\.\.:..:....:.:..:....:....:............ $CI' ",'" ~, Date: By: Title: 3 P:'.Agendas\.'\\!enda Attachmenn\Agenda Attachmcms\Agenda Attachmcnts\Agnnts_Amcnd 2009\07-06-09 TELACL' IV _ Arr,cndmcnt No.1 to HOME AgTeemcnldoc 1 2 3 4 5 6 7 8 RESOLUTION NO. t(Q)[P RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE AMENDMENT NO.1 TO THE 2008 HOME FUNDS LOAN AND GRANT DEVELOPMENT AGREEMENT BY AND BETWEEN THE AGENCY AND TELACU HOUSING - SAN BERNARDINO IV, INC., A CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION (IVDA REDEVELOPMENT PROJECT AREA) WHEREAS, rELACU Housing - San Bernardino IV, Inc., a California non-profit public 9 benefit corporation ("Developer"), is a regional and locally certified, approved and experienced non- to profit housing organization that obtained approval from the United States Department of Housing 11 and Urban Development ("HUD") Section 202 Grant ('"HUD Grant") for the construction and 13 12 operation of a 90-unit senior housing facility (the "Project"); and WHEREAS, on March 3, 2008, the Community Development Commission of the City of 14 San Bernardino ("Commission") approved the 2008 HOME Funds Loan and Grant Development 15 Agreement ("HOME Agreement") between the Agency and the Developer; and 16 17 Developer herein is consistent with and supportive of the Agency's Housing Program and HOME WHEREAS, the Agency deems that the senior housing development undertaken by the 18 Program Regulations; and 19 WHEREAS, the Agency deems it desirable to enter into Amendment No. I to the HOME 20 Agreement ("Amendment No. I") on the form as attached hereto as Exhibit "A"with the Developer 21 to provide an additional $902,476 in Federal HOME and CHDO funds to pay for the increase in 22 required City development impact fees and the costs associated with City required under-grounding 24 23 and relocation of overhead utilities; and WHEREAS, the Project is exempt from the National Environmental Policy Act ("NEPA") 25 under 24 CFR 58.35 and the California Environmental Quality Act ("CEQA"), pursuant to Section 26 15332, in-fill development, and no further environmental document is required pursuant to Section 27 15168 of the CEQA guidelines. 28 / / / I P\Agendas'Resolutions'Resollllions\2009\07_06-09 TELACV IV Amendment No I COC Resodoc 1 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY 2 OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS: 3 Section 1. The Commission authorizes an additional appropriation in an amount not to 4 exceed $902,476 from the Federal HOME and CHDO Program Funds budgeted in the Agency's 5 fiscal year 2008-2009 budget for the Developer and the Interim Executive Director of the 6 Redevelopment Agency of the City of San Bernardino ("Agency") or designee, are authorized to 7 execute Amendment No. I and execute any such other documents as may be necessary to implement 8 the HOME Agreement and Amendment No. I and to make any necessary non-substantive changes 9 as may be approved by Agency Counsel, provided such changes do not increase the Agency's 10 financial contribution to the Project. '11 Section 2. The Commission makes a finding that the Project is exempt from NEPA 12 under 24 CFR 58.35 and CEQA, pursuant to Section 15332 of the CEQA Guidelines, constitutes an 13 in-fill development, and no further environmental document is required pursuant to Section 15168 14 of the CEQA guidelines, and the Commission further authorizes and directs that the necessary 15 Notices of Determination and Exemption be filed with HUD and the County Clerk. 16 17 11/ 18 / / / 19 / / / Section 3. The Resolution shall become effective immediately upon its adoption. 2 PlAgendas\Resolulions\Resolutions\2009\07_06_09 TELACU IV Amendment 1'00 1 CDC Reso.doc 1 2 3 4 5 6 7 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE AMENDMENT NO.1 TO THE 2008 HOME FUNDS LOAN AND GRANT DEVELOPMENT AGREEMENT BY AND BETWEEN THE AGENCY AND TELACU HOUSING - SAN BERNARDINO IV, INC., A CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION (IVDA REDEVELOPMENT PROJECT AREA) I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 8 Development Commission of the City of San Bernardino at a ,2009, by the following vote to wit: The foregoing Resolution is hereby approved this 21 22 23 24 20 meeting Navs Abstain Absent -,-- Secretary day of ,2009. Patrick J. Morris, Chairperson Community Development Commission of the City of San Bernardino 25 Approved as to Form: ~: By: ( f::!r~ Agency ou~~ 28 3 P\Agendas\Resolutions\Resolutions\2()()QI07_06_09 TELACl: IV Amendment No.1 Coe Reso.doc AMENDMENT NO.1 TO THE 2008 HOME FUNDS LOAN AND GRANT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND TELACU HOUSING - SAN BERNARDINO IV, INC. This Amendment No. I to the 2008 HOME Funds Loan and Grant Agreement (this "Amendment No. I") is entered into on July 6, 2009, by and between the Redevelopment Agency of the City of San Bernardino (the "Agency"), a public body, corporate and politic, and TELACU Housing- San Bernardino IV, Inc., a California nonprofit public benefit corporation (the "Developer"), and is entered into in consideration of the facts set forth in the following Recital paragraphs: -RECITALS- A. The Developer and the Agency have previously entered into an agreement entitled "2008 HOME Funds Loan and Grant Development Agreement", dated as of March 17, 2008 (the "HOME Agreement"). B. As of the effective date of this Amendment No. I, the Developer received from the United States Department of Housing and Urban Development ("HUD") Section 202 Capital Advance Program Funding for the Project in the amount of $11,226,200, a rental assistance contract in the amount of $434,900 and a budget contract in the amount of $1,304,700. The Developer has also secured an additional $1,829,393 in HUD 202 Amendment money to cover portions of the Project cost. C The Agency is desirous of assisting the Developer in the construction of the Project and has previously provided $1,300,000 in HOME Loan pursuant to the HOME Agreement for the acquisition of the Site with the loan repayment amounts then being utilized to provide certain additional grant funds in addition to $1,900,000 in grant for a total grant of $3,200,000 pursuant to the HOME Agreement for off-site and adjacent public improvements within street rights-of-way, including street roadways, sidewalks, curb and gutter, street lighting, undergrounding of overhead utilities and installation of signal lights ("Off-Site Improvements") and exterior amenities upgrades. However, due to increases in the City of San Bernardino development impact fees and permit fees, applicable to the City required under-grounding and relocation of overhead utilities, the Developer has requested additional assistance in the amount of $902,476 under this Amendment No. I for a total of $4, I 02,476 in Agency Federal HOME Funds, to cover the increase in City development impact fees and permit fees and costs associated with City required under-grounding and relocation of overhead utilities. D. The Agency has determined that the development of the Site pursuant to the HOME Agreement and this Amendment No. I and the fulfillment generally of the purposes of the HOME Agreement are in the vital and best interests of the City and the Agency. I P\Ageooas\Agenda Attachments\Agenda AttachmentslAgenda Anachments\Agrmts-Amend 2009\07-06-09TELACU IV _ Amendment No 110 HOME Agrecmenldoc NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND CONDITIONS CONTAINED HEREIN, THE AGENCY AND THE DEVELOPER AGREE AS FOLLOWS: Section 1. References to the HOME A2reement: Defined Terms, (a) Unless the context of the usage of a term or phrase in this Amendment No. I may otherwise require, the meaning of words and phrases as contained in this Amendment No. I, which are indicated by an initially capitalized letter, shall be the same as set forth in the HOME Agreement. (b) The information contained in the Recitals as set forth in this Amendment No. I is true and correct in all respects. Section 2. Snecific Amendments to the 2008 HOME A2reement. (a) The HOME Agreement is hereby amended by this Amendment No. I in the manner as indicated in this Section 2 and which changes and amendments shall be effective from and after the date of approval of this Amendment No. I by the Developer and the Agency and execution hereof by the parties. (b) Section 402 of the HOME Agreement is hereby amended by substituting the following chart in place of that as is presently provided in the HOME Agreement: Construction and Permanent Financing: Amount of Section 202 Capital Advance Amount of Section 202 Amendment money Amount of deferred Developer fees Amount of Agency HOME Grant Total Development Cost $11,226,200 $ 1,829,393 $ 136,375 $ 4.102.476 $17,294,444 (c) The term "Agency Grant" as defined and as used in the HOME Agreement shall be in an amount equal to $4,102,476 pursuant to this Amendment No.1. (d) Section 404 of the HOME Agreement is amended by adding the word "City development impact and permit fees and cost associated with City required under-grounding and relocation of overhead utilities" into the penultimate sentence of said Section. Section 3. Effect of Amendment No.!. Except as modified or amended by this Amendment No. I, all of the provisions of the HOME Agreement shall remain in full force and effect following the effective date of this Amendment No. I. //1 /1/ /1/ /1/ /1/ /1/ 2 P:\Agendas\Agenda AltachmenlslAgenda AttachmentslAgenda AnachmentslAgrmn-Amend 2009\01-06-09 TELACU IV _ Amendment No. 110 HOME Agreemenldoc IN WITNESS WHEREOF, the parties hereto have accepted and made and executed this Amendment No. I upon the terms and conditions and with the provisions as set forth above and as of the date first written above. AGENCY Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic Date: By: Emil A. Marzullo, Interim Executive Director Approved as to Form and Legal Content: By: C/~~~J- Agency ou el DEVELOPER TELACU Housing - San Bernardino IV, Inc., a California nonprofit public benefit corporation Date: By: Title: 3 P\AgendaslAgenda Attachments\..o\genda Allachmcnl!i\Agenda Attachmcnts'Agrmts-Amend 2009\07.06_09 TELACU IV _ Amendment No 110 HOME Agreement doc