2017-02 RESOLUTION NO. 2017-02
A RESOLUTION OF THE CITY OF GRAND TERRACE AS
SUCCESSOR AGENCY TO THE COMMUNITY
REDEVELOPMENT AGENCY APPROVING A LOW AND
MODERATE INCOME SENIOR HOUSING RESIDUAL
RECEIPTS SECURITY AGREEMENT AS AN ENFORCEABLE
OBLIGATION
WHEREAS, the City of Grand Terrace ("City") entered into a Ground Lease, dated
September 22, 2005, a Regulatory Agreement, dated October 27, 2005, an Assignment and
Assumption Agreement dated January 17, 2006, and a First Amendment to the Ground Lease,
dated August 1, 2008, with the former Community Redevelopment Agency of the City of Grand
Terrace ("Agency") and the Corporation for Better Housing a non-profit affordable development
corporation("Corporation") for the development of a senior housing development; and
WHEREAS, the Agency also entered into a Low and Moderate Income Senior Housing
Residual Receipts Security Agreement ("Security Agreement") with the City on February 24,
2009; and
WHEREAS, the City and Agency entered into these agreements to effectuate the
Redevelopment Plan and Housing Element; and
WHEREAS, under this set of agreements the City leased land to Corporation in
consideration of one dollar($1.00) annual rent and receipt of residual receipt payments; and
WHEREAS,the Security Agreement the Agency agreed to secure to the City the amounts
owed to City so that low and moderate income housing could continue to be provided by
Corporation in the Redevelopment Project Area and redevelopment goals cold be met; and
WHEREAS, without the Security Agreement, the provision of low and moderate income
housing is jeopardized in addition to affecting third party rights.
WHEREAS,AB xl 26 required the dissolution of all redevelopment agencies in the state;
and
WHEREAS, on January 10, 2012, the City adopted Resolution 2012-01 electing to serve
as the Successor Agency to the Grand Terrace Community Redevelopment Agency ("Successor
Agency")pursuant to HSC Section 34176; and
WHEREAS, the Successor Agency finds that the Security Agreement is part of a set of
agreements for the provision of housing, was properly authorized in compliance with
Community Redevelopment Law, and serves a legitimate redevelopment purposes; and
S.A. RESOLUTION NO. 2017-02 PAGE 1 OF 6 JANUARY 10, 2017
WHEREAS, the Successor Agency finds that the Security Agreement is an enforceable
obligation and annual payments of$300,000 should be repaid to the City, subject to approval by
the Oversight Board and the Department of Finance; and
WHEREAS, the Department of Finance, on their Determination Letter dated October 19,
2012, stated that the agreements between the City and former Redevelopment Agency may take
effect after a Finding of Completion is issued and that the Oversight Board makes a finding that
the amount was for legitimate redevelopment purposes;
WHEREAS, the Successor Agency received its Finding of Completion from the
Department of Finance on May 9, 2013; and
WHEREAS, the City of Grand Terrace as Successor Agency to the Community
Redevelopment Agency has met on January 10, 2017 and duly considered the annual $300,000
Residual Receipt repayment to the City.
NOW THEREFORE, THE CITY OF GRAND TERRACE AS SUCCESSOR AGENCY
TO THE COMMUNITY REDEVELOPMENT AGENCY DOES RESOLVE, DETERMINE,
FIND AND ORDER AS FOLLOWS:
SECTION 1. The City as Successor Agency finds that the above recitations are true and
correct and, accordingly, are incorporated as a material part of this Resolution.
SECTION 2. The City as Successor Agency finds that the annual $300,000 Residual
Receipt Repayment is true and correct and, accordingly, is hereby considered an enforceable
obligation.
SECTION 3. Pursuant to HSC Section 34177, the Low and Moderate Income Senior
Housing Residual Receipts Security Agreement, incorporated herein as Attachment A, is hereby
approved as an enforceable obligation in substantially the same form as shown in Attachment A
by the Successor Agency.
SECTION 4. The Executive Director is hereby directed to take all necessary and
appropriate acts to submit the Low and Moderate Income Senior Housing Residual Receipts
Security Agreement to the California Department of Finance, State Controller's Office, San
Bernardino County Auditor-Controller, and any other agency by February 1, 2017. The
Executive Director is further authorized to perform all acts necessary and appropriate which may
be required by the California Health & Safety Code. This includes, but is not limited to the
requirements set forth by the California Department of Finance, the San Bernardino County
Auditor-Controller, or any other applicable agency.
SECTION 5. The City Clerk certify to the adoption of this Resolution.
PASSED APPROVED AND ADOPTED this loth day of January, 2017 by the following vote:
S.A. RESOLUTION NO. 2017-02 PAGE 2 OF 6 JANUARY 10, 2017
AYES: Agency Members Reinarz, Hussey, Wilson, Vice-Chair Robles, Chair McNaboe
NOES: None
ABSENT: None
ABSTAIN: None
7Darc)(t,Mc �e, C air
ATTEST:
Pat4e-egTa� ,. ity Cle
S.A. RESOLUTION NO. 2017-02 PAGE 3 OF 6 JANUARY 10, 2017
Attachment A
SUCESSOR AGENCY TO THE
COMMUNITY REDEVELOPMENT AGENCY `
OF THE CITY OF GRAND TERRACE
Low and Moderate Income Senior Housing Residual Receipts Security Agreement
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LOW AND-MODERATE INCOME:SENIOR HOUSING
RESIDUAL RECEIPTS SECURITY.AGREEMENT
THIS RESIDUAL RECEIPTS SECURITY AGREEMENT("Agreement")is entered into,
by and between the.City of Grand Terrace, a public body, corporate and politic, (hereinafter the
"City") and the City of Grand Terrace Community Redevelopment Agency, a public body,
corporate politic, (hereinafter the"Agency").
RECITALS
A. In order to effectuate and further-the goals and objectives of the- City, in
implementing the Housing Element of its General-Plan and the Agency in implementing its
-Redevelopment Plan, the City, Agency and Corporation. for Better. Housing, a non-profit
affordable development corporation (hereinafter "CBH'). have heretofore entered into, a
Regulatory Agreement, dated.October 27, 2005, a.Ground.Lease,.dated--September 22; 2005, a
First Amendment to Ground Lease, dated August 1, 2008 and an Assignment and Assumption
Agreement, dated January 17, 2006, in order-to..provide a low and moderate income multi-family
residential rental housing facility-to be located on property owned.by the City (hereinafter the
,Site )" .
B. Pursuant to the Regulatory.Agreement and the Ground Lease, the City. has leased
- -the Site to CBH- in .exchange for a rental payment and the payment of Residual Receipts, as
defined in said Regulatory Agreement.
C. As .consideration for. the .performance of- the City's obligations .under the.
Regulatory Agreement and Ground Lease on behalf of the Agency with:respect to the Agency's
obligation-to provide low and moderate income housing pursuant to its Redevelopment-Plan, the
City and Agency desire to enter into this Agreement-to secure the annual.payment to.the City of
sufficient ResidualReceipts to compensate the=City for its performance under said Regulatory
Agreement and Ground Lease.
NOW THEREFORE,CITY AND AGENCY MUTUALLY AGREE AS -
FOLLOWS:
SECTION 1. The foregoing Recitals-are true and correct and made a part hereof.
.SECTION I Term.The Term.of this Agreement(the"Term")shall commence as of the date-of
the approval,but shall provide for payments as provided herein commencing as of the.date of
the Regulatory Agreement.
SECTION 3. Remittance. The Agency hereby agrees to pay to the City annually_not to exceed
$300,000 as security for the City's receipt of Residual Receipts.
SECTION 4.. All Residual Receipts received by the City from CBH, or its successors,.pursuant
to the Regulatory.Agreement, shall be credited to the Agency in calculating the annual payment
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S.A. RESOLUTION NO. 2017-02 PAGE 5 OF 6 JANUARY 10,2017
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y the Agency. In- no case-shall the Agency's obligation to the City. exceed $300,000. As
indicated herein, this.obligation to the City shall' commence upon the effective date of the
Regulatory Agreement. To,the extent any sums are due and owing as of the date.of the execution `
of this Agreement,the Parties hereto may agree.to reduce or waive such obligation.
Date: February24,2009 CITY.OF GRAND-TERRACE
By:
Maryett erre,Mayor
Dated: February24 ,2009 CITY OF GRAND TERRACE
REDEVELOP AGENCY
By.
Marye Ferre,Mayor
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