Resolution Number 19-07-16-02RESOLUTION NO. 19-07-16-02
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
J CAPISTRANO APPROVING THE ISSUANCE BY THE CALIFORNIA
STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY OF
MULTIFAMILY HOUSING REVENUE BONDS FOR THE GROVES
APARTMENTS AND FINDING SUCH ACTION STATUTORILY EXEMPT
FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT
TO GOVERNMENT CODE SECTION 65583.2
WHEREAS, the California Statewide Communities Development Authority (the
"Authority") is authorized pursuant to the provisions of California Government Code Section
6500 et seq. and the terms of an Amended and Restated Joint Exercise of Powers
Agreement, dated as of June 1, 1988 (the "Agreement'), among certain local agencies
throughout the State of California, including the City of San Juan Capistrano (the "City"), to
issue revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of the California
Health and Safety Code for the purpose of financing multifamily rental housing projects; and
WHEREAS, SJC Groves LP or a partnership of which C&C Development Co., LLC
(the "Developer") or a related person to the Developer is the general partner, has requested
that the Authority adopt a plan of financing providing for the issuance of exempt facility bonds
for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue
Code of 1986 (the "Code") in one or more series issued from time to time, including bonds
issued to refund such exempt facility bonds in one or more series from time to time, and at
no time to exceed $25,000,000 in outstanding aggregate principal amount (the "Bonds"), to
finance or refinance the acquisition, construction and development of a 75 -unit senior
multifamily rental housing project located at the Northwest corner of Camino Capistrano and
Junipero Serra Road (APN 121-050-21), San Juan Capistrano, California. (the "Project");
and
WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, private
activity bonds are required to be approved by the "applicable elected representative" of the
governmental units on whose behalf such bonds are expected to be issued and by a
governmental unit having jurisdiction over the entire area in which any facility financed by
such bonds is to be located, after a public hearing held following reasonable public notice;
and
WHEREAS, the members of this City Council (this "City Council") are the applicable
elected representatives of the City of San Juan Capistrano (the "City"); and
WHEREAS, there has been published, at least 7 days prior to the date hereof, in a
newspaper of general circulation within the City, a notice that a public hearing regarding the
Bonds would be held on a date specified in such notice; and
WHEREAS, such public hearing was conducted on such date, at which time an
opportunity was provided to interested parties to present arguments both for and against the
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issuance of the Bonds; and
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WHEREAS, the Authority is also requesting that the City Council approve the
issuance of any refunding bonds hereafter issued by the Authority for the purpose of
refinancing the Bonds which financed the Project (the "Refunding Bonds"), but only in i
such cases where federal tax laws would not require additional consideration or approval
by the City Council; and
WHEREAS, it is intended that this resolution shall constitute the approval of the
issuance of the Bonds required by Section 147(f) of the Code and Section 9 of the
Agreement; and
WHEREAS, pursuant to the California Environmental Quality Act (Public Resources
Code, § 21000 et seq.) and the State CEQA Guidelines (California Code of Regulations,
title 14, § 15000 et seq.) (collectively, "CEQA"), the City is the lead agency for the proposed
Project, and
WHEREAS, in accordance with CEQA, the City has determined that approval of the
Project, including approval of the Refunding Bonds, is statutorily exempt from further review
under the California Environmental Quality Act.
NOW, THEREFORE, BE IT RESOLVED BY THE City Council OF THE CITY OF
SAN JUAN CAPISTRANO AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. Compliance with the California Environmental Quality Act. Based
upon its review of the entire record before it, the City Council hereby finds and determines
that the proposed Project, including the Refunding Bonds, is statutorily exempt from CEQA
pursuant to Government Code section 65583.2. Specifically, according to Government
Code, section 65583.2(h), when sites are re -zoned to accommodate the Regional Housing
Needs Allocation ("RHNA") for low and very low income housing, future approval for
multifamily rental projects on those sites are considered a "use by right". Government Code,
section 65583.2(i) defines "use by right" to mean that the review shall not include any
discretionary local government action or approval that would constitute a "project" for
purposes of CEQA, and therefore, no CEQA compliance would be required. The City
Council hereby finds that those provisions of the Government Code apply here and exempt
the Project, including the Refunding Bonds, from further environmental review because:
a. On January 21, 2014, the City adopted Resolution No. 14-01-20-03, approving a
General Plan Amendment to amend the City's Housing Element. Within that
resolution, the 3.853 -acre Project site was redesignated to Very High Density
Residential (30 du/acre), and the site was identified as one available for affordable
housing.
b. Ordinance No. 1008, which was adopted on February 4, 2014, rezoned the 3.853 -
acre Project site from Office Commercial to Very High Density. This rezone
implemented the General Plan Amendment that was approved on January 21, 2014.
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The re -zoning ensured that the City's inventory of housing sites in its Housing
Element could accommodate all of the low and very low income RHNA allocation
-- that the City was assigned at the time.
c. As a result, the 3.853 -acre Project site falls within the provisions of Government
Code, section 65583.2(1) and the use must be considered a use "by right" under that
section.
d. No further environmental review is required.
Section 3. The City Council hereby approves the issuance of the Bonds and the
Refunding Bonds by the Authority. It is the purpose and intent of the City Council that this
resolution constitute approval of the Bonds forthe purposes of (a) Section 147(f) of the Code
and (b) Section 9 of the Agreement.
Section 4. The officers of the City are hereby authorized and directed, jointly and
severally, to do any and all things and to execute and deliver any and all documents that
they deem necessary or advisable in order to carry out, give effect to and comply with the
terms and intent of this resolution and the financing approved hereby.
Section 5. This resolution shall take effect immediately upon its passage.
Section 6. Notice of Exemption. The City Council hereby directs staff to prepare
and file a Notice of Exemption with the Orange County Clerk within five (5) working days of
the approval of this Resolution.
Section 7. Custodian of Records. The documents and materials that constitute
the record of proceedings on which this Resolution and the above findings are based are
located at the offices of the City Clerks, which is located at 32400 Paseo Adelanto, San Juan
Capistrano, CA 92675. The custodian for these records is the San Juan Capistrano City
Clerk.
PASSED, APPROVED, AND ADOPTED this 161" day of July 2019.
AR OTT, MAYOR
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
COUNTY OF SAN JUAN CAPISTRANO)
I, Maria Morris, appointed City Clerk of the City of San Juan Capistrano, do hereby certify
that the foregoing Resolution No. 19-07-16-02 was duly adopted by the
City Council of the City of San Juan Capistrano at a Regular meeting thereof, held the
16th day of July 2019, by the following vote:
VCIL MEMBERS: Reeve, Taylor, Farias, Bourne and Mayor Maryott
NCIL MEMBERS: None
NCIL MEMBERS one
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