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Home My WebLink AboutORD 3337• • • ORDIN~NCE NO. 3337 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1981-82 TO ESTABLISH CAPITAL IMPROVEMENT PROJECT NO. 81-93 "PALO ALTO HOUSING CORPORATION ( PAHC) ACQUISITION OF AND MORTGAGE REVENUE BOND (MRB) INITIAL DEVELOP- I•1ENT FCC FOR THE BIRCH-GRANT SITE" WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 22, 1981, did adopt a budget for f~acal year 1981-82; and WHEREAS, the City of Palo Alto wishes to enter into a prornissorr note with PAHC, whereby the City of Palo Alto will loan PAHC Three Hundred Thirty ThoLJsand Dollars {$330,000} for acquisition of the Birch-Grant site and One Hundred Thirty Thousand Five Hundred Dollars ($130,500) to secure a MRB mortgage reservation; NOW, THP.REPOR8, the Coun~il of the City of P3lo Alto does ORDAIN as follows: SEC'l'ION 1. Capital Improvement Project ~o. 81-93 :L~> E:stablished for "PAHC Acquisition of and MRB Initial 8evclvpm0nt £-'ee for the Birch Grant s~.te. II SECTION 2. The sum of Four. Hundred Sixty 'rh'-':'..:2;1r.d Five Hu nde~d Dollars ($460,500~ is appropriated to Capital Improvement Project No. 81-Y3 "PAHC Acquisition of and MRB Initial Dev<O;L)pment Fee for the Birch-Grant Site: and the Reserve for Capital Projects is correspond ingly decreased. SECTION 3. An Pxch~nge of funds does not constitute a significant environmental impact. An Environmental Impact Assessment has already been done for the proposed development of this sit'.'~ and this document addresses the potential impacts from the development. The EIA was approved by the Architectural Review Board 0f February 18, 1982. SECTION 4. This ordinance shall become effective immediately a~ provided ln Section 12 of Article III ot the Charter aP.d Sect ion 2.04.375 of the Palo Alto Municipal Code. INTRODUCED AND PASSED: March 8, 1982 AYES: Bechtel, Cobb, Eyerly, Fazzino, Fletcher, Klein, Levy, Renzel, Witherspoon NOES: None ABSTENTIONS: None ABSEUT: None APPROVED AS TO FORM: ~~*- __!2-~~~~a? .~/{~ Director of Planning and Community Environment ' ,'.-:! . ' ~:~> f-:;kt4.?-7 ,_.., '-711· 1-;77/'~--~ Director of Budget and i../" Resource Management . , .·• ~ . ~ ... ,. • • ' .• . .. $460,500 ATTACHMENT •c• PROMISSORY NOTE OF THE PALO ALTO HOUSING CORPORATION SECURED BY DEED OF TRUST (ACQUISITION OF AND REVENUE BOND INITIAL DEVELOPMENT FEE FOR THE BIRCH-GRA~ SITE) Palo Alto, California , 1902 At such time as provided in this docum-ent, the undersigned Palo Alto Housing Corpora.tion, a California non-profit corporation ( "Bor rower"), promises to pay to the City of Palo Alto or order (RCity"), for value received, the sum of Four Hundred Sixty Thousand Five Hund~ed Dollars ($460r500), on the ter~s and conditionz set forth in t),is Note. This Note shall be secured by a deed of trust ent~·~d into simul~an eously with this Note, affecting real property as descri~d in the Deed of Trust ("Property"). Pa,ymertts shall be delivered to the Office G-f the City Controller, 230 Hamilton Avenue, P.O. Box 10250, Palo Alto, California 94303. Th~ terms, covenants and conditions of this Note are as follows: .. ;,' ; , .. • • 4. Each payment shall be credited first 1...'ln intt•T"(•:H tlwn dllt' .m.t the !:e::·iainder on principal, and interest shall thereupon c~.:h3c.:> up,m t tw principal so credited. 5. Should interest not be pa.id annually, the whole SUII of prin- cipal and interest shall r,ot become immediately due,, The interest not paid shall thereafte1.· ,~eai':' like interest .as the P·rincip,\1, but !Such unpaid interest so compounded shall not exceed an ammmt equal to simple interest on lhe unpaid principal at the maximum rate permitted by la.w. Principal and interest a.re payable in lawful money of the United States. Borrower reserves the right to prepay, at any time, all or any part of the principal amount of this Note without the payment of penalties or prem i 1..~.,,::;.. 6. If suit is instit•Jted by City to recover on this note, Bor- rower agrees to pay all costs of collection, including reasonable attorney 1 s fees and court costs. 7. The City's failure to f!':i!€rcise any of its. rights hereunder sh311 n~t constitute a waiver thereof. 8. The P·coperty purchased, and units financed, with the proceeds of this Note shall be utilized by Borrower for the provision of low and mod•erate incom~ housing, at least seve·nty-f i ve percent ( 7 5%) of the total units of which shall be sold or conveyed to persons meeting the income restrictions of the Count}' of Santa Clara's Mortgage Revenue Bond Pr-ogram., In car·t"ying out the provisions of this cond.ition, Bor rower shall atte18pt to identify purchasers with 'the greatest need for housing. · 9. ·Total ~.rii~s · in¢lude ~ot only 'units provided on the Property but·also.\.lpon proper.t:.y p~rchased with Couunity Developaent Bloek Grant funds of ~he .cit~·~ri~ of the Co~nty:of Santa ~larap ·· 10.. Bor.t·owe~ sh~ll fncluQe . in ·any· con,,eyance !of all or part of the Property {an~, in· any. ,se.cu.~itJ de~ice using/ tt)e> R~Qpertv ta secure payment. of t}le price Of. $UCh conveyAACe) ··t-esal¢' C()'llen~nts and. r0S~ric t ions consistent with Of."d inance 'do. . . . of ."t'he City of Pld.o A.l tu +'& determined );>y the. City Manager who~~ <ieclsion shall be fin&l~· · . · .L 1 l. BorroWer shall·maintain nonprofit corpor.te status as defined. by Corpc>r,ations Code 5060 ,H as aended,' throughout the rapayaent period set fottb' .in .. t;Uis •. Note. Borrowei" ·sha.:t,l not be considered an agent or ~mployee of City:· for a~y· .Purpose. .. . ' ·. ', ,· .--li 12. Borrower shall hold City harmlGss fro• all d~agea arising out of. any injury to any person or property oc~llrrin9 in, on or about . the Property. ,nd any development occurring tber~on,. except tt\at City shall be liable to BG.rrower f.or .dua.ge· resulting f"~• tl'!.e. ~cts or Ollis sions of City or its. authorized representat,ives. City st411 hold Bor rower harmless .. for. all. damages aris~ng out of such injury. A pat"tY • ~ obligation un4er thia paraqraptr shall be 1 iaited· .to tbe sua that ez ceeds the. amount 'of li\ntsur~nce proceeds ~r :if. any, received by t.h.e. party being indemnified. ~ · . ·· · -2- • ... • 13. Borrower at its sole co~t shall maintain public 1 iability, personal injury and property damage1. insurance with a singl~ coftl!lined limit of not less than Five Hund'red Thousand Dollars ($500,000), insur ing against all liability of Borrower and its a'.1thorized representa~ tives arising out of or in connec.:tion with Borrower's purchase and use of the residential facility described herein. Such insuran.ce •hall insure pe~formance by Borrower of the in~emnity provisions of the pre ceding paragraph. Both Ci-ty and Borrower shall be named as additional insureds, and the pol icy or policies shall contain cross-1 iabi 1 i ty endorsements. 14. All rights granted hereunder are personal to Borrower 1 and are not assignable or transferable absent prior w~itten c<"Jnsent by City, and attempte·J assignment thereof shal). be void~ Borrower shall notify eachholder of a lien or encumbr-ance on the Property ln writing, no less than thirty (30) dc.iys prior to imposition of any junior lien or er.cumbrance. 15. The City Manager of City or his designee from time to time may in~pect the Property and consult with Borro~~r fer the purpose of determining compliance with the terms of this Note. The right of rea sonable access for such purpoiES is hereby granted to City. 16. This. note aJ'ld said deed of trust may be subordinated to sub sequent encumbt:ances upon all or a por.tion of the Property with the prior writt,n' consent of the City Manager and the City Attorney of th' City of Palo Alto subject to such terms and conditi.·;.l as they aay d-=~• advisa~le. Con$ent t;o .one. such transaction shall not be d~aed a" waiver of the right ti) reqi~i:re cons4:1nt to future; or successive' tt'an@~· actions. · · · 17 .• Borrower shall' have the right and privilege with the .·wri~t.ten conaen~ of. City of subd,i~i~ing ,the Property intCJ lQts, lots and· blacks, condom1ni\ll0s, street• or alleys, ,afld' ·the trustee ·na111ed ira the d~d of trust shall join in such subdivision pla't" ' Saiq ttustee shall further, wi'th, 'the consent of city, f'tOil ,tiae to tiwu~ .. and .as ·.often as requested ·· by Borrow~r after improv~aents h•ve been coJipleteC!, release fro• the 1 i,en of th~ trust ~eed, any o~ such tracts or un.l ts l'!)C)n · receipt of a sUll'l of mqney equal "tp the .,prop<>rt.ionate sha,re .of th.f! lndebteaness batt·ed llpoo the n'urab4u;. of units,. so r~leased compa~ed to total units construe-· teet by :f!tprt~~r_.· The accrued inter'est on. ~ny payments mad~ ~o.r partial rele'ases sh~ll.be paid at the tillle such refease is procured. Ill 'deter,.. ' mining the quantity. of. land· contained· in any·: tr.act to be released, one half of .the ·adjoining streets and alleys shall be included in such coll putati._,n, togeth~r with a proportionate $hare of, any co..ori area o~ unused port~on of the .entire Property. Cit}' and e.uch tru~t~e; shall cooperate wit.h Borrower to as$ure compliance with all statutes and req•\lations of the State of Californi4 govex::ning condoainiua develop ment. · .The· ~xecu,tion of a partial release by the .trustee s.ball be con .... elusive-ev!dence that the necessary payment therefor nas been aade on account of this Not$ and of the.performar.ce'of all conditions ease"tial to its validi~y.;· < · ·· , · · ·· -3- I ' ~ .. -• • 18. Upon breaGh by Borrower of any of the terms of this Note or the deed of trust c~ecuted herewith, City may, in its discretion, de clare the principal balance of t:his Note immediately due a.nd payable. APPROVED AS TO AUD!T AND ACCOUNTH~G: C: ity cori:'ti"oller APPROVED AS TO FORM: C i"ty Attorney AP?ROVED: CTty Manager oi'~ector ·of P lannfng ana .. : 1 •. · • . Community ~hvironment · "ReaL Estate oivl~ion. o{rec'c.or of B.u<lget and Resource Management \ I PALO ALTO HOUSING CORPORATION, a California Nonprofit Corporation By: Tftle .·I'