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HomeMy WebLinkAbout2003-03-03 Ordinance 4780ORDINANCE NO. 4780 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2002-03 TO PROVIDE AN APPROPRIATION OF $750,000 FROM THE RESIDENTIAL HOUSING IN-LIEU FUND FOR A LOAN TO THE OPPORTUNITY CENTER PROJECT WHEREAS, pursuant to the prov~s~ons of Section 12 of Article III of the Charter of the City of Palo Alto; the Council on June 19, 2002 did adopt a budget for fiscal year 2002-03; and WHEREAS, the development of very low and low-income subsidized rental housing units implements the housing objectives stated in the City of Palo Alto's Comprehensive Plan and Consolidated Plan and is a Council "Top Five" priority; and WHEREAS, the Community Working Group, Inc. (CWG) holds fee title to 33 and 39 Encina Avenue, and the Housing Authority of the County of Santa Clara holds the right of possession to the parcel at 45 Encina Avenue, and these two entities (acting jointly as developers) are pursuing the development of 89 units of subsidized rental housing for very low and low income households over a service center for homeless persons and families the Opportunity Center Project on this site; and WHEREAS, on July 22, 2002, the City entered into an interim predevelopment funding agreement under which the City provided the developers with a loan of $1,280,000 for certain predevelopment and site acquisition costs for the Opportunity Center Project: and WHEREAS, the developers have completed the architectural design of the project, obtained Planning and Transportation Commission approval on January 29, 2003 of the Planned Community zone change, obtained almost five million dollars in financing commitments and are prepared to submit an application for the State's Multifamily Housing Program (MHP) , which is due by March 18, 2003; and WHEREAS, the developers must have commitments of all local government funding, including funding from the City of Palo Alto, to have a competitive MHP application and such funding commitment can be documented by an adopted Budget Amendment Ordinance; and WHEREAS, the City has determined that an additional loan amount of $750,000 for housing unit construction costs is needed to make the project feasible and that the City funds shall be provided as a deferred payment loan pursuant to the terms of loan and regulatory agreements to be later approved by Council, after all other required funding has been awarded and is firmly committed: and Whereas, $1,655,052 is available in the Residential Housing In-Lieu Fund; and Whereas, the appropriation of funds requested from the Residential Housing In-Lieu Fund is for a one-time cost and no future year ongoing costs are anticipated; and Whereas, City Council authorization is needed to amend the 2002-03 budget as hereinafter set forth. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. The sum of $750,000 is hereby appropriated to non- salary expenses in the Residential Housing In-Lieu fund to be transferred to the Opportunity Center Project as a loan for the affordable housing proj ect. No transfer shall occur except per execution of loan agreements prepared in a form approved by the City Attorney. SECTION 2. A note receivable of $750,000 will be established on behalf of the Opportunity Center Project, upon execution of the aforesaid loan agreements. SECTION 3. This transaction will reduce the Residential Housing In-Lieu Fund reserve from $1,655,052 to $905,052. SECTION 4. As specified in Section 2.28.080 (a) of the Palo Alto Muriicipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 5. As provided in Section 2. 04 . 3.5 0 of the Palo Al to Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: March 3, 2003 AYES: Beecham, Burch, Freeman, Kishimoto, Kleinberg, Lytle, Mossar, Ojakian NOES: ABSTENTIONS: NOT PARTICIPATING: Morton \ "I certify (or ~eclare) under penalty of perjury that the foregoing is true correct." APPROVED: Dir eto of Planning and Community Environment ~tfp.--£2 . CitYanager It. A ~. "::J+ol1""