AgdaPkt 2011-03-07 - Laserfiche WebLink

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The Agency is acquiring the Property using funds from its Low- and Moderate - Housing Fund and intends to use the Property to advance redevelopment purposes of increasing, improving and preserving the community's supply of affordable housing. If purchased, the community will be engaged in a discussion about the future use of this site including affordable housing, open space, parks, or a combination of options. Recent developments related to the California budget have raised the possibility that the State of California may act to dissolve redevelopment agencies within the next weeks or months. In the event the State does act to dissolve redevelopment agencies, it is possible that the City or another successor entity may be required to liquidate Agency property to pay off Agency debts on an accelerated timeframe. Section 33220 of the Community Redevelopment Law explicitly allows a city to assist a redevelopment agency in the planning, undertaking, construction, or operation of redevelopment projects, including through the acquisition of land from the agency. Under the proposed Assignment and Assumption of Purchase and Sale and Funding Agreement, the City would assist the Agency in fulfilling its redevelopment purposes of increasing, improving and preserving the community's supply of affordable housing by assuming the Agency's rights and obligations under the Purchase and Sale Agreement. Instead of the Agency taking title to the Property, the City would become the Buyer under the Purchase and Sale Agreement and, upon closing, the owner of the Property, thereby allowing the City to pursue the Agency's redevelopment and affordable housing objectives for the Property and the surrounding Docktown area. The proposed Agreement provides for the Agency to make the deposits into escrow required of the Buyer under the Purchase and Sale Agreement and further provides for the Agency to pay or reimburse the City for up to $320,000 in due diligence costs associated with the transaction. In the event that the City desires to use all or a portion of the Property for other than affordable housing purposes, the proposed Agreement provides for the City to repay the Housing Fund or a successor housing fund of the City, in the event that the Agency is no longer in existence, on a pro rata basis for the portion of the Property not used for affordable housing purposes. Because no project is currently contemplated and future physical improvements to the Property are speculative, review under the California Environmental Quality Act is not required at this time. However, the proposed Agreement requires that such review be undertaken, to the extent required by CEQA, prior to commencement of development activity on the Property. The attached resolutions authorize the City Manager and Agency Chair and City Clerk and Agency Secretary to execute the Assignment and Assumption of Purchase and Sale and Funding Agreement. S: \STAFF REPORTS \Redacted Assignment and Assumption of Purchase and Sale and Funding Agreem 1548 Maple St.doc Page 2