HomeMy WebLinkAbout1997-05-08; Housing Commission; Resolution 97-005t
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HOUSING COMMISSION RESOLUTION NO. 97-005
A RESOLUTION OF THE HOUSING COMMISSION OF
THE CITY OF CARLSBAD, CALIFORNIA TO
RECOMMEND TO THE CITY COUNCIL THE APPROVAL
OF AN OPTION TO ALLOW THE LAUREL TREE
DEVELOPMENT TEAM/MAAC PROJECT TO RECEIVE
PAYMENTS OF APPROXIMATELY $3.4 MILLION FROM
THE PRIVATE DEVELOPERS PARTICIPATING IN THE
COMBINED INCLUSIONARY HOUSING PROJECT
KNOWN AS THE LAUREL TREE APARTMENT PROJECT
IN ORDER TO ACQUIRE PROPERTY AND CONTINUE
EFFORTS TO OBTAIN PROJECT FINANCING AND TO
RELEASE THE DEVELOPERS (KAIZA AND LENNAR)
FROM FURTHER INCLUSIONARY HOUSING
0 BLlG AT10 NS.
WHEREAS, the Housing and Redevelopment Commission has
previously approved a financial commitment of $700,000 of redevelopment
housing set-aside and Housing Trust funds to the Laurel Tree Apartment project
conditioned upon the project receiving the necessary land use approvals and other
financing; and
WHEREAS, the Laurel Tree Apartment project has previously
received necessary local entitlements from the City of Carlsbad; and
WHEREAS, the Laurel Tree Apartment project has previously
received necessary land use approvals from the California Coastal Commission;
and
WHEREAS, the Laurel Tree Development Team has made three
unsuccessful attempts to obtain needed financing through the Low-Income
Housing Tax Credit Program to finance the subject project; and
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HC Resolution No. 97-005
Page 2
WHEREAS, the purchase option on the land identified for the subject
project is due to expire on May 28, 1997 and the MAAC Project needs to
maintain site control to make an additional application for Low-Income Housing
Tax Credits for the affordable apartment project; and
WHEREAS, the Laurel Tree Development Team is committed to an
aggressive effort to obtain the project financing and begin construction on the
Laurel Tree Apartment Project but needs assistance from the City of Carlsbad to
allow for immediate purchase of the property for the subject project through the
use of a portion of the $3.4 million committed to the project from the private
developer participants known as Kaiza Poinsettia Corporation and Lennar Inc.; and
WHEREAS, the Laurel Tree Development Team has agreed to
exercise the existing purchase option on the site selected for the Laurel Tree
Apartment Project and then transfer title to the property to the City of Carlsbad as
a condition of the financial assistance agreement between the City and the Laurel
Tree Development Team and lease the property back from the City for the
purposes of project development and operations; and
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HC Resolution No. 97-005
Page 3
WHEREAS, the Housing Commission believes that the City should
assist the Laurel Tree Development Team to ensure site control by receiving
payments via letter of credit financial commitments or through other acceptable
means, in the amount of $3.4 million, from Kaiza and Lennar and to utilize a
portion of the funds to immediately exercise the option to purchase the Laurel
Tree Site and transfer the remainder of the funds to the City for eventual use in
project construction and permanent financing; and
WHEREAS, if the Laurel Tree Development Team’s pursuit of tax
credit financing is again unsuccessful, the Team has agreed to proceed with the
actions necessary to develop the Laurel Tree for-sale condominium project, which
will include no less than 135 units of affordable housing.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing
Commission of the City of Carlsbad, California, as follows:
1. The above recitations are true and correct.
2. The Housing Commission hereby recommends that the City Council
release Kaiza and Lennar from further inclusionary housing obligations
once they provide their payments in the amount of $3.4 million to the
Laurel Tree Project to allow for the immediate purchase of the site for
the Laurel Tree Apartment project and to establish a fund for
construction and permanent financing for the project.
3. The Housing Commission recommends to the City Council that the City
Manager, or his designee, upon consultation with the City Attorney be
authorized to execute documents required for the City of Carlsbad to
release the subject developers from their lnclusionary Housing Obligation
immediately upon action from the developers to provide their financial
commitment to the Laurel Tree Project .
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HC Resolution No. 97-005
Page 4
4. The Housing Commission recommends to the City Council that the City
Manager, or his designee, upon consultation with the City Attorney be
authorized to execute documents required for the City of Carlsbad to
assume ownership of the property for the Laurel Tree Project, upon
purchase by the MAAC Project, and to accept the remaining funds from
the developers (Kaiza and Lennar) to establish a construction and
permanent financing fund for the Laurel Tree Project.
5. The Housing Commission recommends to the City Council that if the
Laurel Tree Development Team finds that tax credit financing is not
available to the Laurel Tree Apartment Project that the MAAC Project be
permitted to proceed with the actions necessary to process the Laurel
Tree for-sale condominium project, which will include no less than 135
affordable housing units, utilizing the existing site and financing
commitments previously approved, including the developer payments
from Kaiza and Lennar.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the
Housing Commission of the City of Carlsbad, California, held on the 8th day of
May, 1997, by the following vote, to wit:
AYES: Schlehuber, Wellman, Scarpelli, Escobedo, Rose, Latas,
Walker, Noble
NOES: None
ABSENT: Calverley
ABSTAIN: None n
I MICHAEL SCHKEHUBER, Chairperson
Housing Commission
ATTEST:
EVAN E. BECKER
Housing and Redevelopment Director