HomeMy WebLinkAbout0105.091January 3, 1991
HONORABLE CITY COUNCIL
Palo Alto, California
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'3 D T9' !2Bk" lYPUJ = P~YHENT OP rmms TO PABC APAlt'l'lJ£NTS. INC.
Xeabers ot the council:
ago,rt in Iri.e
Tbi6 report requests that Council authorize the payment ot $2~1
.illion dollars of Rousing Reserve funds, for the purchase of 630
Los Robles Avenue, to PARe Apartments, Inc. instead of the Palo
Alto Housing Corporation (PARC); and approve the attached BUdqet
~t ordinance to allow for payme.nt cf the Bloney to PA.'iC
Aparbaents I Inc ~
hcl!;aroup4
On November 5, 1990, Council approved fundinq of $2.1 million from
the Residential-Miscellaneous account of the Housing Reserve Fund
to the PARe for its purchasE or a 33-unit townhouse complex at 630
Los Robles Avenue to be used tor very low .. low I and. moderate illCClme
housinq {CMR:559:0). on Novewber 19, 1990, council adopted Budget
Amencment Ordinance No. 3998 authorizing payment ot the $2:.1
.illion to the PARe in escrow toward the ~rchase of 6)0 Los Robles
Avenue and authorized the City Manager to execute any documents
n6~essary to co.plate the fundjng process.
IMC; ya ~ rue Apart:P..nt... InC!.
PARe baa inform2d staff that on t.he advice
nonprofit corporation has been orqanized
apartaent co.plex at 630 Los Robles Avenue.
CMR: 105:91
of its attorney, a new
to take title to the
The new orqanization,
. ,
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PAHC Apart.ents, Ine.~ has the same Board of Oirectors and staft as
PARe, but broader purposes as stated in its articles of incorpora
tion. Therefore, UJ'\liJce FAMC, it can purchase. a market rate
project at 6)0 Los Robles Avenue without risk of jeopardizing its
nonprofit atatuB. PAHC's articles aay not be written broadly
enough to suppott the corporation purchasing a market rate project
without putting its nonprofit status at risk. Hovever, PARe will
operate the project after it is purchased. The attached Budqet
Amendment Ordinance amends ordinance No. 399B to authorize payment
to P~HC Apartments. Inc. in escrow instead of PARCo
Staff recomaends that council: 1J authorize the payment in escrow
of the $2.1 million to PARC Apartments.. Inc.; 2) approve PAHC
Apartments, Inc. as the Borrower named in the related Promissory
Mote and Deed of Trust; and 3J adopt the attached Budget Amendment
Ordinance to allow for the payment to PARC Apartments, Inc. instead
of PARCo
Respectfully submitted,
~~~~ ",
JANET FREELAND
Real Property Agent
E':J:j f!GJ.v.",,, of;
EllILY HARRI SON
Director of Finance
, . ~L.O.:J __
WILLI ~ANER
City nager
Related staff Report: CMR:S59:0
CC: Palo Alto Housing Corporation
CMR:l0S:91 2
ORDINAllCE NO.
ORDI~~CE OF THE COl~CIL OF THE CITY OF PALO ALTO
AMENDING CITY ORDINANC;; NO. 3998 TO AUTHORIZE THE LOAN f'OR THE
PURCHASE OF 630 LOS ROBI.ES AVENUE TO BE MADE TO
PAHC APARTMEnTS ... INC. RATHER THAN
THE PALO ALTO HOUSING CORPORATION
WHEREAS, the city council on November 19, 1990 did adopt Palo
Alto Ordinance No. 3998, authorizing the payment of $2.1 million to
the Palo Alto Housinq Corporation (PARe) in escrow for its purchase
of the 3J-unit apartment complex located at 630 Los Robles Avenue~
to provide for ver:j low, lew... and moderate income hous.ing (the
·propertyG)i and
WHEREAS ... the PARe has since informed the City of Palo Alto
that a naw non-profit corporation has been established to purchase
the Property; and
WHEREAS, the new-ly formed organization i6 known as PAHC
Apartments t Inc. with the same Board of Directors and staff as PARe
but havinq broader objectives stated in its articles of incorpo
ration to enable it to purchase the Property; and
WHEREAS, th~ Council now desires to amend ordinance No. 3998
to authorize the payment in escrow to PARe Apartments, Inc. rather
than PARe, intending that PAHe Apartments, Inc. will also be named
as the Borrower in the Promissory Note and Deed of Trust under
which the loan ~ill be made;
NOW, THEREFORE, the Council of the city of Palo Alto does
ORDAIN as follows:
SECTION 1. Section 3 cf Ordinance No. 3998 is hereby amended
to read as follows:
The sum of Two Million One Hundred Thousand Dollars ($2,100.000) is
hereby apprcpriated to the Residential Account General Expenses
Account for payment to PA."IC Apartments, Inc., in escrow for
purchase of the Property, and the Residential Account is corre
spondingly reduced. However, such payment to PAHe Apartments, Inc~
is subject to the City's review and approv3.l of the Phase I
qeotechnical investigation report on the Property and PAHC's
notification to the City of any Changes in the transaction vhich
would materially affect the costs associated with the purchase of
tile Property.
SEctION 2. sections 1, 2, 4, 5 and ~ of Ordinance No. 3996
remain as approved by council on November 19, 1990.
o
SECTION 3 ~ The Council of the City of Palo Alto hereby finds
that the enactment of this ordinance is not a project under the
Calitornia Environmental ~~alityAct and, there!or~, no environmen
tal impact assessment is necess~ry.
SECTION 4.
Municipal Code,
adoption.
As provided in Section 2.04.375 of the Palo Alto
this ordin~nce shall become effective upon
INT~"cED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
City Cleric ==----------Mayor
APPROVED AS TO F'ORM:
Asst. C1ty Attorney
APPROVED:
City Manager
oIrector of Flnance 90-1. 21
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