HomeMy WebLinkAbout2002-02-04 Ordinance 4735ORDINANCE NO. 4735
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 2001-02 TO
PROVIDE AN APPROPRIATION OF $1,960,000 FROM THE
COMMERCIAL HOUSING IN-LIEU FUND FOR A LOAN TO THE OAK
COURT AFFORDABLE HOUSING PROJECT AND $143,000 FROM THE
RESIDENTIAL HOUSING IN-LIEU FUND FOR VARIOUS EXPENSES
RELATED TO CITY'S OPTION TO ACQUIRE THE HOUSING SITE
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 11,
2001 did adopt a budget for fiscal year 2001-02; 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
WHEREAS, on April 10, 2000, the City entered into a
Development Agreement under which the City obtained a fully-paid
three year option to acquire the 1.23 acre site (Housing Site)
located on the north side of Channing Avenue between Bryant and
Ramona Streets for affordable rental housingi and
WHEREAS, under the provisions of the Development Agreement,
the City is required to reimburse the legal owner of the Housing
Site for certain property holding costs, primarily real property
taxes, incurred after the first year of the option; and
WHEREAS, on June II, 2001, Council selected the Palo Al to
Housing Corporation (PAHC) as the developer of the Housing Site
after a competitive request for proposal process; and
WHEREAS, PAHC, proceeding in a diligent and expeditious
manner, has designed the housing, secured Ci ty planning
entitlements, obtained financing commitments and intends to submit
an application for an allocation to the federal Low Income Housing
Tax Credit (LIHTC) program in March of 2002; and
WHEREAS, a required component of the LIHTC application is a
commitment of all local funding, including funding from the City of
Palo Alto, and such funding commitment can be documented for the tax
credit program application by an adopted Budget Amendment Ordinance;
and
WHEREAS, the City and PAHC have agreed that a loan in the
amount of $1,960,000 for construction and development 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 a
Disposition and Development Agreement to be approved by Council; and
WHEREAS, an existing Coast live oak tree must be removed
and/or relocated and replanted off the Housing Site to accommodate
construction as permitted by the conditions of approval for the
housing project, and the City has committed in the request for
proposal process to pay site clearance costs; and
WHEREAS, sufficient funds are available within the Residential
Housing In-Lieu Fund and the Commercial Housing In-Lieu Fund; and
WHEREAS, the appropriation of funds requested from the
Commercial and Residential Housing In-Lieu Funds is for a one-time
cost and no future year ongoing costs are anticipated; and
WHEREAS, City Council authorization is needed to amend the
2001-02 budget as hereinafter set forth.
NOW, THEREFORE, the Council of the Ci ty of Palo Alto does
ORDAIN as follows:
SECTION 1. The sum of $1,960,000 is hereby appropriated to
non-salary expenses in the Commercial Housing In-Lieu fund to be
transferred to the Oak Court Apartments, LLP as a loan for the
affordable housing project.
SECTION 2. A note receivable of $1,960,000 is thus established
on behalf of Oak Court Apartments, LLP.
SECTION 3. This transaction will reduce the Commercial Housing
In-Lieu Fund reserve from $1,979,814 to $19,814.
SECTION 4. The sum of $143,000 is hereby appropriated to non-
salary expenses in the Residential Housing In-Lieu fund, and is
authorized for the cost of moving an oak tree from the Housing Site
and for expenses associated with the property holding costs,
primarily real property taxes on the Housing Site.
SECTION 5. This transaction will reduce the Residential
Housing In-Lieu Fund reserve from $1,462,625 to $1,319,625.
SECTION 6. As specified in Section 2.28.080 (a) of the Palo
A1 to Municipal Code, a two-thirds vote of the City Council is
required to adopt this ordinance.
SECTION 7. The proposed use and development of the Oak Court
Apartments was evaluated as part of the certified Environmental
Impact Report (EIR) for the South of Forest Area (SOFA) Plan. An
Addendum to the certified EIR was prepared to clarify and confirm
conclusions on site-specific issues that had been addressed in the
EIR, The Architectural Review Board/Historic Resources Board has
considered the Addendum to the EIR as part of its review and
approval of the project.
SECTION 8" As provided in Section 2.04,350 of the Palo Alto
Municipal Code, this ordinance shall become effective upon adoption.
INTRODUCED AND PASSED: February 4, 2002
AYES: Beecham, Burch, Freeman, Kishimoto, Kleinberg, Lytle,
Mossar, Ojakian
NOES:
ABSTENTIONS: Morton
ABSENT:
ATTEST:
~~,~ City Clerk
APPROVED AS TO FORM:
~6J.~
Senior Asst, City Attorney
THIS DOCUMENT IS CEImFIED 10 BE AN'" '~~7.:=?i
ORO. INANCE DULY PASSED BY THE COUN~ <;::~
OfTHECITVOFPALOALTOAND , ,,~'
fH.F.f.:·:Ar fER POSTED 1M ~~UNCIL .'.,. ~
CH 't,'3!:RS ON ~~~ (Wt1H1N1I
fJ!'Y',. ~)f.ITS PASSAGE)
~
'I :'/ (or doclare) under penaltr
0; , . \' that the foregoing is true
¥;:." ~Q1:b, .. ~
Oate & Place " . ifmatl.lre
"~: i. \1
APPROVED:
Mayor
c~
Dlr7ctor
serpices
/'f
Administrative
of Planning
Environment
and