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HomeMy Public PortalAbout12. Resolution 2009-009IN THE CITY COUNCIL OF THE CITY OF LIVERMORE STATE OF CALIFORNIA A RESOLUTION AUTHORIZING EXECUTION OF ACCELERATED COOPERATION AND REPAYMENT AGREEMENT WITH THE REDEVELOPMENT AGENCY OF THE CITY OF LIVERMORE FOR A LOAN OF RESIDENTIAL DEVELOPMENT LOAN PROGRAM RDLP FUNDS TO BE USED BY THE REDEVELOPMENT AGENCY TO REFINANCE A PORTION OF THE EXISTING LOAN FOR THE LIVERMORE VILLAGE PROJECT FROM THE CITY TO THE AGENCY DATED AUGUST 4 2008 On May 13 2005 the City loaned Livermore Village I LLC Developer of Livermore Village Developer 8000000 as a bridge loan for acquisition of the property located at 20092111 Railroad Avenue Livermore APN 098028901208 Property On May 12 2008 the Developer agreed to sell its interest in the Property to the City for 10100000 The City purchased the Property which was fully entitled for development as a key redevelopment mixed use project meeting the goals of the Downtown Specific Plan and as entitled would provide that at least 10 of the housing units created will be affordable to lower income households As of May 12 2008 the Citys Affordable Housing funds in the project totaled 12437874 including principal and interest accrued under the Promissory Note between Developer and City Pursuant to Health and Safety Code 33220 on August 4 2008 the City transferred title to the Property to the Agency and Agency agreed to and executed a Cooperation and Repayment agreement to reimburse the City the costs of the Propertys acquisition in an effort to revitalize this area of the downtown and in an effort to provide for more affordable housing in the downtown In the August 4 2008 Agreement the Agency agreed to reimburse to the City the cost of the property which amount was 10969743 including principal in the amount of 10100000 and interest in the amount of 869743 Since August 4 2008 the Agencys loan obligation has accrued an additional 60047 in interest resulting in a total obligation as of January 12 2009 of 11029790 In 2007 the City was awarded State of California Residential Development Loan Program RDLP funds for site acquisition and predevelopment expenses for the Livermore Village project The City now desires to loan the RDLP funds to the Agency and the Agency desires to accept these funds to replace a portion of the Housing Trust funds F611 that are currently being loaned to the Agency for this purpose The Agency desires to refinance the Cooperation and Repayment Agreement executed August 4 2008 using RDLP funds To that end the City desires to loan and the Agency desires to accept up to 5000000 in RDLP funds which the Agency will then use to satisfy a portion of the principal and accrued interest of the obligation stated in the August 4 2008 Cooperation and Repayment Agreement 1 RESOLUTION NO 2009009 The Redevelopment Agency intends to enter into a Disposition and Development Agreement with a developer to construct amixeduse development consisting of retail space a variety of housing types and potentially a regional performing arts theater NOW THEREFORE BE IT RESOLVED by the Livermore City Council that the City Manager is authorized on behalf of the City of Livermore to enter into an Accelerated Cooperation and Repayment Agreement with the Redevelopment Agency of the City of Livermore to loan the Agency of up to 5000000 in RDLP funds to refinance a portion of the 10100000 loan provided to the Agency on August 4 2008 for site acquisition and predevelopment expenses associated with the Livermore Village project BE IT FUTHER RESOLVED that the City Manager is authorized to sign the Notice of Affordability Restriction on Transfer of Property and Declaration of Covenants and Restrictions on behalf of the City to obligate the development of the Project or any other project developed on the Property to provide at least 28 units of ownership housing affordable to lowincome households and 56 units of ownership housing affordable to moderateincome households BE IT FURTHER RESOLVED that the City Manager is authorized to sign all documents as may be necessary to assist the Redevelopment Agency of the City of Livermore purchase the property at 20092111 Railroad Avenue On the motion of Vice Mayor Marchand seconded by Councilmember Horner the foregoing resolution was passed and adopted on the 12t day of January 2009 by the following vote AYES Councilmembers Horner Leider Williams Vice Mayor Marchand Mayor Kamena NOES None ABSENT None ABSTAIN None ATTEST DATE it INTERIM CITY CLERK SUSAN GIBBS DATE January 13 2009 APPROVED AS TO FORM ASSISTANT CITY ATTORNEY JASON ALCALA 2 RESOLUTION NO 2009009