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- 1 - CITY OF MODESTO REDEVELOPMENT SUCCESSOR AGENCY AGENDA City of Modesto Special Redevelopment Successor Agency Meeting Tenth Street Place Second Floor, Room 2001 1010 Tenth Street Modesto, California Tuesday December 15, 2015 at 5:30 p.m. Roll Call - Agency Members Ah You, Grewal, Kenoyer, Madrigal, Ridenour, Zoslocki, Mayor Marsh PUBLIC COMMENT PERIOD Three minute time limit per speaker Only interested persons in the audience may present these matters. Under State law, Agency Members may respond to matters being presented under this item only as follows: a. Briefly respond to statements made or questions raised. b. Ask a question for clarification. c. Provide a reference to staff or other resources for factual information. d. Request staff to report back at a subsequent meeting. e. Finally, an Agency Member or the Council itself may take action to direct staff to place a matter of business on a future agenda. CONSENT ITEMS – ROLL CALL VOTE REQUIRED: 1 and 2 Information concerning the consent items listed below has been forwarded to each Agency Member prior to this meeting for study. Unless some member of the audience or Agency Member has a question concerning an item and asks that it be withdrawn from the consent list, the Agency approves the items at one time. The action taken by the Agency in approving consent items is set forth in the explanation of this individual item. Any and all of the following agenda items are subject to action by the Modesto City Council. ---PAGE BREAK--- - 2 - This Agenda is on file at the Modesto-Stanislaus Library Reference Room, 1500 I Street, Modesto, in the City Clerk’s Office, Sixth Floor, 10th Street Place, and is available on the City’s Web site at www.modestogov.com. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk (209) 577-5396. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. CONSENT ITEMS An item may be removed from consent and discussed at the request of an audience member or Commissioner. CONSENT 1. Consider approving the minutes from the Redevelopment Successor Agency of August11, 2015. (Not Applicable) Staff Recommendations: • Motion approving the minutes from the Redevelopment Successor Agency of August 11, 2015. Clerk; Stephanie Lopez, 577-5397, [EMAIL REDACTED] CONSENT 2. Consider approving a 2-year extension to the Second Amended and Restated Disposition and Development Agreement with EAH Inc., a nonprofit housing corporation, to allow time for negotiation and transfer of a City-owned parcel on 9th street to EAH Inc. for the construction of 74 affordable multifamily units. (Funding Source: Redevelopment Successor Agency Housing Set-Aside) Staff Recommendations: • Resolution approving a 2-year extension to the Second Amended and Restated Disposition and Development Agreement with EAH Inc., a nonprofit housing corporation, to allow time for negotiation and transfer of a City-owned parcel on 9th street to EAH Inc. for the construction of 74 affordable multifamily units, and authorizing the Executive Director, or his designee, to execute all documents necessary to carry out the obligations of the City, and the City as the Successor Housing Agency.. Community & Economic Development; Carol Averell, 577-5310, [EMAIL REDACTED] MATTERS TOO LATE FOR THE AGENDA These may be presented by members of the Agency and staff upon determination by a majority vote that an emergency exists, as defined by State law, or by a 2/3 vote that there is a need to take immediate action, and that the need for action came to the City’s attention after the agenda was posted. ADJOURNMENT Posted pursuant to Government Code Section 54954.2 on the bulletin board at Tenth Street Place on at by date time signature ---PAGE BREAK--- - 1 - CITY OF MODESTO REDEVELOPMENT SUCCESSOR AGENCY MINUTES City of Modesto Special Redevelopment Successor Agency Meeting Tenth Street Place Chambers, Basement Level 1010 Tenth Street Modesto, California Tuesday August 11, 2015 at 5:30 p.m. Roll Call – Present: Agency Members Cogdill, Gunderson, Kenoyer, Lopez, Madrigal, Zoslocki, Chairperson Marsh Absent: None PUBLIC COMMENT PERIOD CONSENT ITEMS – ROLL CALL VOTE REQUIRED: 1 and 2 ACTION CONSENT ITEMS 1-2: (Lopez/Madrigal; unan.) CONSENT ITEMS An item may be removed from consent and discussed at the request of an audience member or Commissioner. CONSENT 1. Consider approving the minutes from the Redevelopment Successor Agency of September 23, 2014. (Not Applicable) Staff Recommendations: • Motion approving the minutes from the Redevelopment Successor Agency of September 23, 2014. Clerk; Stephanie Lopez, 577-5397, [EMAIL REDACTED] #1 ---PAGE BREAK--- - 2 - ACTION: Motion ( Lopez/Madrigal; 7/0) approving the minutes from the Redevelopment Successor Agency of September 23, 2014. CONSENT 2. Consider authorizing and directing the Executive Director, or his designee, to submit the Redevelopment Agency of Modesto ballot with a “Yes” vote for the formation of a Community Benefit District (CBD) in Downtown Modesto. (Funding Source: Redevelopment Property Tax Trust Fund – Fund 1910) Staff Recommendations: • Resolution authorizing and directing the Executive Director, or his designee, to submit the Redevelopment agency of Modesto ballot with a “Yes” vote for the formation of a Community Benefit District (CBD) in Downtown Modesto. Community & Economic Development; Laurie Smith, 577-5347, [EMAIL REDACTED] ACTION: Resolution 01-2015 ( Lopez/Madrigal; 7/0) authorizing and directing the Executive Director, or his designee, to submit the Redevelopment agency of Modesto ballot with a “Yes” vote for the formation of a Community Benefit District (CBD) in Downtown Modesto. MATTERS TOO LATE FOR THE AGENDA None. ADJOURNMENT This meeting was adjourned at 7:30 p.m. STEPHANIE LOPEZ, Agency Secretary #1 ---PAGE BREAK--- CITY OF MODESTO REDEVELOPMENT SUCCESSOR AGENCY AGENDA REPORT DATE OF MEETING: December 15, 2015 Date: December 2, 2015 TO: Chair & Agency Members THROUGH: James N. Holgersson, Executive Director FROM: Birdsill, Assistant Executive Director SUBJECT: 2-Year Extension to Second Amended and Restated Disposition and Development Agreement with EAH Inc., a nonprofit housing corporation CONTACT: Carol Averell, Housing and Urban Development Supervisor [EMAIL REDACTED] , [PHONE REDACTED] DESCRIPTION: Consider approving a 2-year extension to the Second Amended and Restated Disposition and Development Agreement with EAH Inc., a nonprofit housing corporation, to allow time for negotiation and transfer of a City-owned parcel on 9th street to EAH Inc. for the construction of 74 affordable multifamily units. (Fund: Redevelopment Successor Agency Housing Set-Aside) STRATEGIC PLAN ELEMENT: This item is in alignment with the City of Modesto FY 2015-18 Strategic Plan, Commitment # 3 - Great Safe Neighborhoods. BACKGROUND: On April 28, 2009, the former Redevelopment Agency of the City of Modesto (Agency) and EAH, Inc., a nonprofit housing corporation (Developer), entered into an Agreement to Negotiate Exclusively, in which the Agency provided the Developer with a pre-construction loan in the initial amount of $200,000. On June 2, 2009, the Agency and Developer entered into a Disposition and Development Agreement (DDA) outlining the initial terms for either conveyance by fee title or ground lease of a parcel on 9th Street and Carver Road (Site). The Site was intended for development of an affordable rental housing project (Project), with approximately 150 units. On July 12, 2009, the Agency and Developer entered into an Amended and Restated DDA, clarifying that the Developer would purchase the Site for development of the Project. On February 22, 2011, the Agency and Developer entered into a Second Amended and Restated DDA. This amendment allowed the City to convey a portion of the Site to the Developer for Phase I of the Project consisting of 76 units, improvements and amenities. This #2 ---PAGE BREAK--- Redevelopment Successor Agency, December 15, 2015 Extension of Second Amended DDA with EAH, Inc., a nonprofit housing corporation Page 2 of 3 amendment also granted the Developer an option to purchase the balance of the Site, within two years of close of escrow or conveyance of Phase I of the Project, to develop Phase II of the Project consisting of 74 units. In December 2013, Phase I of the Project, consisting of 76 affordable housing units, a community center and other project amenities, was completed. On June 29, 2915, Developer responded to the City’s request for proposals and requested funding for Phase II of the Project. On September 8, 2015 the City Council, by Resolution No. 2015-345, awarded $260,000 in HOME Investment Partnership Program (HOME) funds and up to $883,694 of future HOME funds to Phase II of the Project. DISCUSSION: On August 31, 2015, the City received a letter from the Developer requesting to begin discussions to formalize a DDA for Phase II of the Project including financing and construction of the 74 units. Staff and City legal counsel recently met with the Developer to discuss Phase II of the Project. In order to move forward with Phase II of the Project, the Developer needs additional time to secure the financing for Phase II. This is crucial as the City’s HOME funds cannot be committed to Phase II until all other funding sources have been secured. A two-year extension to the Amended and Restated DDA will benefit the City, the Developer and the residents that will benefit from the 74 units developed with Phase II of the Project. The Developer did an excellent job developing Phase I of the Project; construction was completed ahead of schedule and on budget. Phase I was very successful and the units were fully leased and occupied immediately after its completion. There are currently 732 families on the waiting list. The waiting list has been closed to new applicant families for approximately four weeks. FISCAL IMPACT: The requested 2-year extension does not obligate the City to the expenditure of any funds. On September 8, 2015, the City Council authorized $260,000 in HOME funds and up to $883,694 in future HOME funds to the Project. Before these funds can be expended, a HOME Agreement will be negotiated with the Developer and brought before the City Council for review and approval. There is no impact to the General Fund. RECOMMENDED ACTION: Staff Recommendations: Resolution approving a 2-year extension to the Second Amended and Restated Disposition and Development Agreement with EAH Inc., a nonprofit housing corporation, to allow time for negotiation and transfer of a City-owned parcel on 9th street to EAH Inc. for the construction of 74 affordable multifamily units, and authorizing the Executive Director, or his designee, to execute all documents necessary to carry out the obligations of the City, and the City as the ---PAGE BREAK--- Redevelopment Successor Agency, December 15, 2015 Extension of Second Amended DDA with EAH, Inc., a nonprofit housing corporation Page 3 of 3 Successor Housing Agency. Approved by: Birdsill Assistant Executive Director James N. Holgersson Executive Director Attachments: 1. Second Amended and Restated Disposition and Development Agreement 2. Resolution cc: EAH, Inc., a nonprofit housing corporation ---PAGE BREAK--- 1 2015-- CITY OF MODESTO REDEVELOPMENT SUCCESSOR AGENCY RESOLUTION NO. 2015- RESOLUTION APPROVING A 2-YEAR EXTENSION TO THE SECOND AMENDED AND RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT WITH EAH INC., A NON PROFIT HOUSING CORPORATION, TO ALLOW TIME FOR NEGOTIATION AND TRANSFER OF A CITY-OWNED PARCEL ON 9TH STREET TO EAH INC, FOR THE CONSTRUCTION OF 74 AFFORDABLE MULTIFAMILY UNITS, AND AUTHORIZING THE EXECUTIVE DIRECTOR, OR HIS DESIGNEE, TO EXECUTE ALL DOCUMENTS NECESSARY TO CARRYOUT THE OBLIGATIONS OF THE CITY, AND THE CITY AS THE SUCCESSOR HOUSING AGENCY. WHEREAS, on April 28, 2009, the Redevelopment Agency of the City of Modesto (Agency) and EAH, Inc., a nonprofit housing corporation (Developer), entered into an Agreement to Negotiate Exclusively, in which the Agency provided the Developer with a pre-construction loan in the initial amount of $200,000, and WHEREAS, on June 2, 2009, the Agency and Developer entered into a Disposition and Development Agreement (DDA) outlining the initial terms for either conveyance by fee title or ground lease of a parcel on 9th Street and Carver Road (Site), and WHEREAS, the Site was intended for development of an approximately 150 unit affordable rental housing project (Project), and WHEREAS, on July 12, 2009, the Agency and Developer entered into an Amended and Restated DDA, clarifying that the Developer would purchase the Site for development of the Project, and WHEREAS, on February 22, 2011, the Agency and Developer entered into a Second Amended and Restated DDA, and #2 ---PAGE BREAK--- 2 2015-- WHEREAS, in December 2013, Phase I of the Project, consisting of 76 affordable housing units, a community center and other project amenities, was completed, and WHEREAS, on June 29, 2015, Developer responded to the City’s request for proposals and requested funding for Phase II of the Project, and WHEREAS, on September 8, 2015 the City Council, by Resolution No. 2015-345, awarded $260,000 in HOME Investment Partnership Program (HOME) funds and up to $883,694 of future HOME funds to Phase II of the Project, and WHEREAS, on August 31, 2015, the City received a letter from the Developer requesting to begin discussions to formalize a DDA for Phase II of the Project including financing and construction of the 74 units, and WHEREAS, staff and City legal counsel recently met with the Developer to discuss Phase II of the Project, and WHEREAS, in order to move forward with Phase II of the Project, the Developer needs additional time to secure the financing for Phase II, and WHEREAS, the City’s HOME funds cannot be committed to Phase II until all other funding sources have been secured, and WHEREAS, a two-year extension to the Amended and Restated DDA will benefit the City, the Developer and the residents that will benefit from the 74 units developed with Phase II of the Project. NOW, THEREFORE, BE IT RESOLVED by the City of Modesto Redevelopment Successor Agency that it hereby approves a 2-year extension to the Second Amended and Restated Disposition and Development Agreement with EAH Inc., #2 ---PAGE BREAK--- 3 2015-- a nonprofit housing corporation, for the construction of 74 affordable multifamily units, and authorizes the Executive Director, or his designee, to execute all documents necessary to carry out the obligations of the City, and the City as the Successor Housing Agency. The foregoing resolution was introduced at a regular meeting of the City of Modesto Redevelopment Successor Agency held on the 15th day of December, 2015, by Agency member who moved its adoption, which motion being duly seconded by Agency member was upon roll call carried and the resolution adopted by the following vote: AYES: Agency members: NOES: Agency members: ABSENT: Agency members: ATTEST: STEPHANIE LOPEZ, Agency Clerk (SEAL) APPROVED AS TO FORM: ADAM U. 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