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HomeMy WebLinkAbout2015-258 I RESOLUTION NO. 2015-258 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT 3 AGENCY OF THE CITY OF SAN BERNARDINO APPROVING AN INSTALLMENT 4 PAYMENT PLAN WITH THE CALIFORNIA DEPARTMENT OF FINANCE FOR THE AMOUNT PAYABLE PURSUANT TO THE LOW- AND MODERATE-INCOME 5 HOUSING FUND DUE DILIGENCE REVIEW CONSISTENT WITH CALIFORNIA HEALTH AND SAFETY CODE § 34179.7 AND APPROVING CERTAIN RELATED 6 ACTIONS 7 WHEREAS, pursuant to Health and Safety Code (the "HSC") § 34172 (a)(1), the 8 Redevelopment Agency of the City of San Bernardino was dissolved on February 1, 2012; and 9 WHEREAS, consistent with the provisions of the HSC, the Mayor and Common Council 10 of the City of San Bernardino previously elected to serve in the capacity of the Successor Agency to 11 the Redevelopment Agency of the City of San Bernardino (the"Successor Agency"); and 12 WHEREAS, the Oversight Board for the Successor Agency (the "Oversight Board") has 13 been established pursuant to HSC § 34179 to assist in the wind-down of the dissolved 14 redevelopment agency; and 15 WHEREAS, consistent with HSC § 34179.6, the Oversight Board approved its Resolution 16 No. SBOB/2012-19 approving the Successor Agency's Low- and Moderate Income (the "LMIHF") 17 Due Diligence Review(the "DDR"), which is a special accounting of LMIHF assets; and 18 WHEREAS, subsequent to Oversight Board approval, the LMIHF DDR was submitted to 19 the California Department of Finance (the "DOF") for its review; and 20 WHEREAS, consistent with HSC § 34179.6, any uncommitted tax increment derived 21 LMIHF identified within an LMIHF DDR is paid to the County Auditor-Controller for later 22 distribution to the taxing entities; and 23 WHEREAS, subsequent to submitting the LMIHF DDR, Successor Agency and DOF 24 representatives participated in discussions and information exchanges, including a meet and confer 25 conference to discuss the LMIHF DDR; and 26 WHEREAS, on January 11, 2013, February 15, 2013, February 21, 2013, March 21, 2014 27 and November 2015, the DOF issued its determination letters with respect to the amount of LMIHF 28 1 I needed to be paid to the County Auditor-Controller, which ranged from $14,041,882 on January 11, 2 2013 to $1,231,423 during November 2015; and 3 WHEREAS, notwithstanding the Successor Agency's best efforts to convince DOF that 4 the actual amount due to the County Auditor-Controller per the LMIHF DDR should be $218,594, 5 DOF does not agree with the Successor Agency's documentation supporting its recommendation 6 and thus requires a payment of$1,231,423; and 7 WHEREAS, the HSC requires that the DOF determined LMIHF DDR payment amount be 8 tendered to the County Auditor-Controller prior to December 31, 2015 to enable the Successor 9 Agency to qualify for a Finding of Completion, which in turn will enable the Successor Agency to 10 receive an approval of its Long-Range Property Management Plan and enable the Successor Agency 11 to expend its unused tax allocation bond proceeds; and 12 WHEREAS, consistent with HSC § 34179.7 (added on September 22, 2015 by SB 107, 13 Chapter 325, Statutes of 2015) the Successor Agency may enter into a written installment payment 14 plan agreement with DOF to satisfy the financial obligation with respect to the amount due per the 15 LMIHF DDR; and 16 WHEREAS, it is recommended that the Successor Agency approve the LMIHF DDR 17 installment payment plan structure described within Exhibit "A", attached hereto and authorize the 18 City Manager/Executive Director to execute of behalf of the Successor Agency a written installment 19 plan agreement in a form acceptable to DOF consistent with the LMIHF DDR installment payment 20 plan structure described within Exhibit"A"; and 21 WHEREAS, this Resolution has been reviewed with respect to applicability of the 22 California Environmental Quality Act ("CEQA"), the State CEQA Guidelines (California Code of 23 Regulations, Title 14, §§ 15000 et seq., hereafter the "Guidelines"), and the City's environmental 24 guidelines; and 25 WHEREAS, this Resolution is not a "project" for purposes of CEQA, as that term is 26 defined by Guidelines § 15378, because this Resolution is an organizational or administrative 27 activity that will not result in a direct or indirect physical change in the environment, per § 15378(b) 28 (5) of the Guidelines; and 2 I WHEREAS, all of the prerequisites with respect to the approval of this Resolution have 2 been met. 3 NOW, THEREFORE, by be it resolved by the Successor Agency to the Redevelopment 4 Agency of the City of San Bernardino, as follows: 5 Section 1. The foregoing recitals are true and correct and are a substantive part of this 6 Resolution. 7 Section 2. The Successor Agency's LMIHF DDR installment payment plan structure 8 described within Exhibit"A", which is attached hereto as Exhibit"A", is approved. 9 Section 3. The City Manager, as Executive Director of the Successor Agency, or 10 designee, is hereby authorized and directed to: i) execute of behalf of the Successor Agency a 11 written installment plan agreement in a form acceptable to DOF consistent with the LMIHF DDR 12 installment payment plan structure described within Exhibit"A"; and ii)take such necessary actions 13 and execute such documents as are necessary to effectuate the intent of this Resolution, inclusive of 14 authorizing ministerial revisions to the LMIHF DDR installment payment plan structure. 15 Section 4. This Resolution is not a "project" for purposes of CEQA, as that term is 16 defined by Guidelines § 15378, because this Resolution is an organizational or administrative 17 activity that will not result in a direct or indirect physical change in the environment, per § 15378(b) 18 (5) of the Guidelines. 19 Section 5. This Resolution shall take effect upon its adoption and execution in the 20 manner as required by the City Charter. 21 22 23 24 25 26 27 28 3 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT 2 AGENCY OF THE CITY OF SAN BERNARDINO APPROVING AN INSTALLMENT 3 PAYMENT PLAN WITH THE CALIFORNIA DEPARTMENT OF FINANCE FOR THE AMOUNT PAYABLE PURSUANT TO THE LOW- AND MODERATE-INCOME 4 HOUSING FUND DUE DILIGENCE REVIEW CONSISTENT WITH CALIFORNIA HEALTH AND SAFETY CODE § 34179.7 AND APPROVING CERTAIN RELATED 5 ACTIONS 6 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Successor Agency 8 to the Redevelopment Agency of the City of San Bernardino, at a special meeting thereof, held on 9 the 23`d day of November, 2015, by the following vote, to wit: 10 Council Members Ayes Nays Abstain Absent 11 MARQUEZ x 12 BARRIOS x 13 VALDIVIA x 14 SHORETT x 15 NICKEL x 16 JOHNSON x MULVIHILL x 17 18 19 Georgeagh Hanna, City erk 20 The foregoing Resolution is hereby approved this�j' day of November, 2015. 21 r 22 23 R. Carey Davi , Chairman Successor Ag ncy to the 24 Redevelopment Agency of the 25 City of San Bernardino Approved as to Form: 26 Gary D. Saenz, City Attorney 27 By: 28 4 2015-258 1 EXHIBIT "A" 2 3 SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 4 LMIHF DDR INSTALLMENT PAYMENT PLAN STRUCTURE 5 1. In its November 23, 2015 letter to the Successor Agency, DOF indicated that the 6 Successor Agency's Low- and Moderate Income Housing Fund ("LMIHF' Due Diligence Review (' DDR") payment obligation is $1,231,423. 7 2. SB 107 allows Successor Agency's and DOF to enter into an "Installment Payment Plan" 8 for amounts owed by successor agencies with respect to either their Other Funds or 9 Accounts ("OFA") or LMIHF DDRs. 10 3. DDR payments are made to the County Auditor-Controller ("CAC"). Once the payments are received by the CAC they are distributed to the taxing entities using the General 11 Tax Levy formula. 12 4. The Successor Agency proposes to enter into an Installment Payment Plan agreement 13 with DOF committing to use the land sales proceeds derived from fifteen LMIHF real property parcels ("LMIHF Parcels") primarily located along 5th Street just east of I-215. 14 As the attached list confirms, the estimated current value of the LMIHF Parcels is 15 $3,081,899. 16 5. The LMIHF Parcels will be transferred to City as Successor Housing Agency ("SHA") within the next several weeks. Thereafter, the LMIHF Parcels will be made available for 17 sale. Once the sale or sales are consummated, the first land sales proceeds up to 18 $1,231,423 will be applied to the LMIHF DDR payment obligation. Any balance will be deposited in the SHAs LMIHF for use on future affordable housing activities. It is 19 anticipate that the amount due with respect to the LMIHF DDR may be paid within approximately two years. 20 21 22 23 24 25 26 27 28 5 I LMIHF Property along W 5th Street 2 Site# APN Address Land Lot Size Price Estimated Improvements (sf) per sf Current Value 3 1 0134-054-24 W 5th Street Vacant 33,750 $16.23 $547,762.50 2 0134-054-25 796 W 5th Street Closed Gas Station 18,462 $16.23 $299,638.26 4 3 0134-054-26 770W5 th Street Vacant 24,375 $16.23 $395,606.25 5 4 0134-061-21 W 5th Street Vacant 6,150 $16.23 $99,814.50 5 0134-061-22 W 5th Street Vacant 5,850 $16.23 $94,945.50 6 6 0134-061-25 W 5th Street Vacant 4,050 $16.23 $65,731.50 7 7 0134-061-30 696 W 5th Street Vacant 8,100 $16.23 $131,463.00 8 0134-093-05 745 W 5th Street Vacant 28,921 $16.23 $469,387.83 8 9 0134-093-06 W 5th Street Vacant 3,231 $16.23 $52,439.13 9 10 0134-101-02 673 W 5th Street Vacant 7,500 $16.23 $121,725.00 11 0134-101-03 673 W 5th Street Vacant 6,000 $16.23 $97,380.00 10 12 0134-101-04 W 5th Street Vacant 7,500 $16.23 $121,725.00 13 0134-101-05 W 5th Street Vacant 10,500 $16.23 $170,415.00 11 14 0134-101-06 W 5th Street Vacant 7,500 $16.23 $121,725.00 12 15 0134-101-28 495 N G Street Vacant 18,000 $16.23 $292,140.00 TOTAL $3,081,898.47 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 1 2 3 4 5 6 7 8 9 10 s z 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7