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HomeMy WebLinkAbout23098 Resolution No. 23098 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS CAPACITY AS THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY, CONSENTING TO A CHANGE IN OWNERSHIP AND APPROVING AN ESTOPPEL CERTIFICATE WITH TAHQUITZ ASSOCIATES, LP, AND A SUBORDINATION AGREEMENT WITH BERKADIA COMMERCIAL MORTGAGE LLC, FOR THE TAHQUITZ COURT APARTMENTS AT 2800, 2890, 2900 AND 2990 EAST TAHQUITZ CANYON WAY. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS CAPACITY AS THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY FINDS AS FOLLOWS: A. The Community Redevelopment Agency of the City of Palm Springs (the "Agency") has established an affordable housing setaside fund in accordance with Section 33000 et. seq. of the California Health and Safety Code. B. AB 1X 26 was signed by the Governor of California on June 29, 2011, making certain changes to the Redevelopment Law, including adding Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section 34170) to Division 24 of the California Health and Safety Code, suspending most redevelopment agency activities and, among other things, prohibiting redevelopment agencies from incurring indebtedness or entering into or modifying contracts. C. Effective February 1, 2012, all existing redevelopment agencies and redevelopment agency components of community development agencies were dissolved; however, except for those provisions of the Redevelopment Law that are repealed, restricted, or revised pursuant to AB XI 26, all authority, rights, powers, duties and obligations previously vested with the former redevelopment agencies under the Redevelopment Law, are vested in the successor agencies. D. At a meeting of January 4, 2012, the City of Palm Springs took action to designate itself as the Successor Agency and the Housing Successor Agency to the Community Redevelopment Agency, as provided in California Health and Safety Code §§ 34173 and 34176. E. Pursuant to Cal. Health & Safety Code §34176, the City expressed its intention to retain the housing assets and functions previously performed by the Palm Springs Community Redevelopment Agency and assume all rights, powers, assets, liabilities, duties, and obligations associated with the housing activities of the Palm Springs Community Redevelopment Agency. Resolution No. 23098 Page 2 F. In November, 2008, the Agency approved the sale of the project to Tahquitz Associates, LP ("Tahquitz"), with apartment owner Dalton Hydro of Utah as the majority owner (limited partner) and LINC Housing, the seller, as the 501(c)(3) minority general partner; subject to the existing covenants. G. Tahquitz has requested City consent to the addition of a new Limited Partner, Rocky Mountain Engineering, to the Partnership; the party has had a financial interest in the project since Tahquitz acquired the project from the prior owners in 2008, but were not part of the ownership of the property. H. The City has reviewed the qualifications of Rocky Mountain Engineering and determined them to be qualified to be admitted to the Partnership as a Limited Partner. I. Berkadia Commercial Mortgage, LLC, the project lender, has requested a new Subordination Agreement with the City, and an Estoppel Agreement between the City and Tahquitz. J. The owners still agree to continue to restrict, though an existing Regulatory Agreement, the rents on 100% of the existing units (107) to levels affordable to families with incomes no more than 60% of Area Median Income (AMI) for a the remaining term. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS CAPACITY AS THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY RESOLVES AND APPROVES AS FOLLOWS: SECTION 1. The above findings are true and correct and are adopted findings of the City Council of the City of Palm Springs acting solely in its capacity as the successor agency to the Palm Springs Community Redevelopment Agency. SECTION 2. The City Council of the City of Palm Springs, California, acting solely in its capacity as the successor agency to the Palm Springs Community Redevelopment Agency hereby consents to Rocky Mountain Engineering's admission as a Limited Partner to Tahquitz Associates, LP. SECTION 3. An Estoppel Agreement by and between the City of Palm Springs and Tahquitz Associates, PL, is hereby approved. SECTION 4. A Subordination Agreement by and between the City of Palm Springs and Berkadia Commercial Mortgage, LLC, is hereby approved. SECTION 5. The City Manager is hereby authorized and directed, on behalf of the City, to execute all documents, including applications or letters of intent or commitment, related to the Project and the purposes of this Resolution. Resolution No. 23098 Page 3 SECTION 6. In retaining the responsibilities of the Palm Springs Community Redevelopment Agency as provided in California Health and Safety Code §§ 34173 and 34176, the City Council expressly determines, recognizes, reaffirms, and ratifies the statutory limitation on the City and the City Council's liability in retaining the responsibilities of the Palm Springs Community Redevelopment Agency under AB 1X26. Nothing in this Resolution shall be construed as a commitment, obligation, or debt of the City or any resources, funds, or assets of the City to fund the City's service as the successor agency to the Palm Springs Community Redevelopment Agency as provided in this Resolution. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 15TH DAY OF FEBRUARY, 2012. DAVID H. READY ANAGER ATTEST: MES THOMPSON, CITY CLERK CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 23098 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on the 15TH day of February, 2012, by the following vote: AYES: Councilmember Hutcheson, Councilmember Lewin, Councilmember Mills, Mayor Pro Tern Foat, and Mayor Pougnet. NOES: None. ABSENT: None. ABSTAIN: None. AMES THOMPSON, CITY CLERK City of Palm Springs, California 90/12 f Z o1z,