HomeMy WebLinkAbout1998-07-07; City Council; Resolution 98-228- I/
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CITY COUNCIL RESOLUTION NO. 98- 2 2 8
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, TO APPROVE A LOAN
AGREEMENT, PROMISSORY NOTE, DEED OF TRUST
AND SECURITY AGREEMENT, REGULATORY
AGREEMENT AND DECLARATION OF RESTRICTIVE
COVENANTS AND MORTGAGE LOAN RIDER
BETWEEN THE CITY OF CARLSBAD AND THE
CARLSBAD LAUREL TREE APARTMENTS, L.P., IN THE
AMOUNT OF $700,000 TO ASSIST THE CONSTRUCTION
OF 138 APARTMENT UNITS AFFORDABLE TO LOW
INCOME HOUSEHOLDS, AND TO APPROVE A
REDEVELOPMENT HOUSING EUND ADMINISTRATION
AGREEMENT BETWEEN THE CITY OF CARLSBAD AM)
THE CARLSBAD REDEVELOPMENT AGENCY TO
ALLOW FOR TRANSFER OF FUNDS AND
ADMJNSTRATION OF THE LOAN BY THE CITY OF
CARLSBAD
APPLICANT: CARLSBAD LAUREL TREE APARTMENTS L.P
WHEREAS, the City of Carlsbad has identified a need to provide housing which is affordable
to low income households in a variety of different forms; and
WHEREAS, a project known as “Laurel Tree Apartments” has been approved for construction
which will provide 138 apartment units affordable to low and very-low income households on property
generally the west side of the future Laurel Tree Road, south of Palomar mort Road and north of
Flame Tree Road; and
WHEREAS, on May 2 1, 1996, the City Council authorized the expenditure of $200,000 to
assist in the development of the Laurel Tree Apartments Project; and
WHEREAS, on June 28, 1994, the Redevelopment Agency of the City of Carlsbad authorized
the expenditure of $500,000 from the Low and Moderate Income Housing Fund to assist in the
development of the Laurel Tree Apartment Project; and
WHEREAS, the Redevelopment Agency of the City of Carlsbad found that the expenditures
of monies fiom the Carlsbad Redevelopment Agency’s Low and Moderate Income Housing Fund for
the purposes of providing financial assistance to a new rental housing construction project affordable to 1 very low income households outside the Redevelopment Project Area, in which such finds are
28 generated, are and will be of benefit to the respective Project Area; and
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II
WHEREAS, the Redevelopment Agency of the City of Carlsbad has approved the
Redevelopment Housing Fund Administration Agreement which authorizes the transfer of
$500,000 from the Agency’s Low and Moderate lncome Housing Fund to the City of Carlsbad for the
purpose of allowing the City to administer a loan to the Laurel Tree Apartment Project on behalf of the
Agency; and
WHEREAS, the affordability level and the unit mix of the proposed project are consistent with
the City of Carlsbad’s Housing Element objectives, Consolidated Plan, and Inclusionary Housing
Ordinance; and
WHEREAS, the City Council did hold a public meeting to consider a request to approve loan
and related documents for City financial assistance for the construction of the Laurel Tree Project; and;
WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all
persons designing to be heard, said Council considered all factors relating to said request:
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
1. The above recitations are true and correct.
2. The request for City financial assistance in the amount of $500,000 was previously
approved by the Redevelopment Agency of the City of Carlsbad on June 28, 1994 as
recorded in Housing and Redevelopment Commission Resolution No. 241, and
financial assistance in the amount of $200,000 was previously approved by the City
Council on May 21, 1996 as recorded in City Council Resolution No. 96-332. The
financial assistance has been determined to be consistent with the goals and objectives
of the City of Carlsbad’s Housing Element and Consolidated Plan, the Inclusionary
Housing Ordinance, and the Carlsbad General Plan.
3. The requests for City financial assistance will assist the developer to construct a total
of 138 apartment units affordable to low and very-low income families. The project,
therefore, has the ability to effectively serve the City’s housing needs and priorities as
expressed in the Housing Element and the Consolidated Plan.
4. That the expenditures of monies from the Carlsbad Redevelopment Agency’s Low and
Moderate Income Housing Fund for the purposes of providing financial assistance to a
new rental housing construction project affordable to very low income households
outside the Redevelopment Project Area, in which such fhds are generated, are and
will be of benefit to the respective Project Area
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5. That based on the information provided within the City Council Staff Report, the
testimony presented during the public meeting of the City Council, the City Council
hereby APPROVES the Loan Agreement, Promissory Note, Deed of Trust and
Security Agreement, Regulatory Agreement and Declaration of Restrictive Covenants,
and Mortgage Loan Rider between the City of Carlsbad and Carlsbad Laurel Tree
Apartments, L.P., in the amount of $700,000 to assist the construction of 138
apartment units affordable to low and very-low income households.
6. That the City Council hereby APPROVES the Redevelopment Housing Fund
Administration Agreement between the City of Carlsbad and the Carlsbad
Redevelopment Agency to &ow a transfer of $500,000 from the Agency’s Low and
Moderate Income Housing Fund to the City to fund a portion of said loan and to allow
the City to administer the loan.
7. That the City Council recommends that the City Manager or his designee be
authorized to execute all documents related to provision of the City assistance,
including but not limited to a Loan Agreement, Promissory Note, Deed of Trust and
Security Agreement, Regulatory Agreement and Declaration of Restrictive Covenants,
Mortgage Loan Rider and Redevelopment Housing Fund Administration Agreement
Loan Agreement, Note, and Deed of Trust, in substantially the form presented to the
City Council on July 7 , , 1998 and subject to review and approval by the City
Attorney.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of
the City of Carisbad, California, held on the 7th day of July , 1998 by the following vote,
to wit:
AYES: Council Members Lewis, Finnila, Kulchin and Hall
NOES: None
ABSENT: Council Member Nygaard
ABSTAIN: None
ATTEST:
UW, 9 b ),&j /3
ALETHA L. RAUTENKRANZ, CITY CLERK\
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