HomeMy WebLinkAboutAGENDA REPORT 2009 0610 CC SPC ITEM 04ACITY OF MOORPARK, CALIFORNIA
City Council Meeting
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MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: David C. Moe II, Redevelopment Managercrm'c�-
By: Jessica Sandifer, Management Analyst
DATE: June 9, 2009 (Special CC Meeting of 6/1 /09)
ITEM 4.A.
SUBJECT: Consider Grant Deed for 396, 406, and 436 Charles Street to
Moorpark20, L.P.
BACKGROUND / DISCUSSION
On December 27, 2007, the Agency entered into an Exclusive Negotiation Agreement
( "ENA ") with the Area Housing Authority of the County of Ventura ( "AHA ") to develop a
conceptual plan for an affordable housing project at 396, 406 and 436 Charles Street.
The ENA resulted in a proposed project consisting of 21 units with a podium style
building and assigned covered parking underneath the building. The project would be
100% affordable and have a mixture of one, two and three bedroom units, ranging in
size from 870 -1100 square feet.
The original plan was to entitle the project by October 2009 and submit an application
for the second round of the 2009 9% tax credits. However, on April 8, 2009, the
California Tax Credit Allocation Committee ( "TCAC ") issued a memorandum stating
there would only be one 9% tax credit funding round this year. The deadline to submit a
preliminary application was June 9, 2009. All projects selected to proceed beyond the
preliminary deadline will need to be entitled by August 17, 2009, to receive a tax credit
reservation. TCAC mentioned the reason for the single funding round in 2009 was to
align with the American Recovery and Reinvestment Act of 2009 to give California
access to the national pool of credits.
Typically, when a Disposition and Development Agreement (DDA) is approved with the
Redevelopment Agency, property ownership transfers upon completion of the
entitlement process. However, with the TCAC deadline being moved up, there was not
enough time to complete execution of the DDA and the entitlement process.
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Honorable City Council
June 10, 2009
Page 2 of 2
DISCUSSION
In order to receive maximum points on the Tax Credit Application, the Area Housing
Authority needs to be able to show ownership or site control of the project site. The
solution was to create a limited partnership between the City of Moorpark, the Area
Housing Authority of the County of Ventura (AHA -VC) and the Santa Barbara Housing
Assistance Corporation. The creation of the Limited Partnership between the three
entities allows the City to maintain ownership of the site, as a General and Limited
Partner, while allowing the AHA-VC to show site control for the purposes of the
application.
On June 9, 2009, the City of Moorpark entered into the Limited Partnership, entitled
Moorpark20, L.P. ( "Partnership "), with the Area Housing Authority of the County of
Ventura and the Santa Barbara Housing Assistance Corporation. To complete the
partnership, the 396, 406 and 436 Charles Street properties need to be deeded to the
partnership.
If the City Council does not approve the proposed entitlements or if tax credits are not
awarded by December 31, 2010, the property will be returned to the City from the
partnership. In addition, the property will have a reversionary clause in favor of the City
in the event at anytime in the future the property is not used for a 100% affordable
project.
FISCAL IMPACT
The inclusion of the property is the City of Moorpark's financial contribution to the
partnership.
STAFF RECOMMENDATION
Approve the granting of the deed for 396, 406, and 436 Charles Street to Moorpark20,
L.P., a California Limited Partnership and authorize City Manager to execute all
documents necessary for the transaction.
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