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Resolution Number 22-07-19-01RESOLUTION NO. 22-07-19-01 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT WITH THE CITY OF SAN JUAN CAPISTRANO AND JAMBOREE HOUSING CORPORATION FOR THE SALE OF CERTAIN REAL PROPERTY (PORTION OF APN 668- 101-23) AND DEVELOPMENT OF REAL PROPERTY (APN 668-101-23) WHEREAS, the City of San Juan Capistrano ("City") currently owns in fee that certain real property, APN 668-101-23, generally located at 32400 Paseo Adelanto in the City of San Juan Capistrano (the "real property"); and WHEREAS, on April 8, 2020, City and Jamboree Housing Corporation ("Developer") entered into that certain Exclusive Negotiation Agreement for the potential redevelopment of the real property to create affordable housing units and a new city hall. On March 16, 2021, City and Developer entered into that certain First Amended Exclusive Negotiation Agreement for additional time to assess the viability of the redevelopment; and WHEREAS, the City desires to sell a portion of the real property, which is legally described and depicted in Exhibit A (the "Property"), by entering into a Disposition and Development Agreement ("Agreement") with Developer attached as Exhibit B for purposes of developing an affordable housing project on the Property and a new city hall on the remainder of the real property (the "Project"); and WHEREAS, on February 15, 2022, the City Council found the Project statutorily exempt from further review pursuant to Government Code section 65583.2(h) and (i), which applies when sites are re -zoned to accommodate the Regional Housing Needs Assessment allocation for low and very low income housing, and results in the future approval for multifamily rental projects on those sites to be considered a "use by right," which is defined to mean that the review shall not include approval that would constitute a "project" for purposes of CEQA. This action to approve the Agreement and the sale of the Property is a follow-on action covered by the same exemption that is applicable to the Project; and WHEREAS, on June 21, 2022, the City adopted Resolution No. 22-06-21-02 declaring the City's intention to sell the Property and setting time for a public hearing to consider the sale of the Property; and 7/19/2022 WHEREAS, unless an exemption applies, California Government Code Section 54220, et seq. (the "Surplus Land Act") requires that prior to the disposal of any surplus land, a local agency must provide notice to, among others, affordable housing developers, and thereafter negotiate in good faith for ninety (90) days with any parties who submit a notice of interest; and WHEREAS, the Property is exempt from the Surplus Land Act because the Property is being disposed of by the City for the development of affordable housing in accordance with and pursuant to California Government Code Section 37364; and WHEREAS, the Agreement provides value, and binds Developer to construct accordance with the terms therein; and for the sale of the Property at fair market the Project in a timely manner, and in WHEREAS, Developer's proposed acquisition of the Property and subsequent construction and development of the real property is in the public interest and convenience of the City, the community, and the health, safety, and welfare of the City's taxpayers and residents, and will further the goals and objectives of the City's general plan by promoting and achieving development of low income housing and public facilities and services. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA DOES HEREBY RESOLVE AND FIND AS FOLLOWS: Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference. Section 2. Hearing. Pursuant to California Government Code Section 37423, a duly noticed public hearing was held by the City on July 19, 2022. Section 3. CEQA Compliance. The City Council hereby finds that the adoption of this Resolution approving the Agreement is covered by the same exemption that applied to the overall Project. Namely, that the Project — including this Resolution approving the Agreement — is statutorily exempt from further review pursuant to Government Code section 65583.2(h) and (i), which applies when sites are re -zoned to accommodate the Regional Housing Needs Assessment allocation for low and very low income housing, and results in the future approval for multifamily rental projects on those sites to be considered a "use by right," which is defined to mean that the review shall not include approval that would constitute a "project" for purposes of CEQA. A Notice of Exemption was filed on February 17, 2022. No actions were filed to challenge the CEQA determination within the applicable statute of limitations period and thus the CEQA determination for the Project is presumed valid. (Pub. Resources Code, section 21167.2.) 2 7/19/2022 Section 4. Surplus Land Act Compliance. The City Council hereby finds that the Property is "exempt surplus land" under Government Code Sections 54221(f)(1)(A) and 37364; the City can dispose of land at less than fair market value to provide affordable housing under whatever terms and conditions the City deems best suited to the provision of such housing provided that (1) the use is in the city's best interest; (2) not less than 80 percent of the area of any parcel of property disposed of shall be used for development of housing; (3) not less than 40 percent of the total number of those housing units developed on any parcel pursuant to this section shall be affordable to households whose incomes are equal to, or less than, 75 percent of the maximum income of lower income households, and at least half of which shall be affordable to very low income households; and (4) the dwelling units produced for low or moderate income shall be restricted by a regulatory agreement to remain continually affordable to those persons for not less than 30 years with a provision making the covenants and conditions of the agreement binding upon successors in interest of the housing sponsor. Here, the use of the Property for affordable housing is in the City's best interest because it is in conformance with the City's General Plan by promoting and achieving development of low income, will assist the City is meeting its regional housing needs assessment allocation, and will provide permanent supportive housing at affordable rates to members of the community. The Property will consist of approximately one and two-tenths (1.2) acres and will thereafter be utilized for development and operation of a fifty (50) unit Permanent Supportive Housing development containing twenty-four (24) units made available to Extremely Low Income (< 30%) and Very Low Income (<50%) households restricted by a regulatory agreement for at least fifty-five (55) years and consisting of approximately forty-five thousand square feet (45,401 sf) contained in three (3) stories. Section 5. Findings. The City Council intends to sell the Property to Developer and, based upon the Recitals and all other information and testimony provided, finds that the public interest and convenience require the sale of the Property to Developer. Section 6. Approval of Agreement- The City Council hereby finds that no protests were received, or the City Council hereby overrules the protests by a four -fifth vote of its members, and hereby approves the Agreement, in substantially the form attached to this Resolution as Exhibit "B," subject to any non -substantive revisions approved by the City Attorney and authorizes the Mayor to sign and enter into the Agreement and direct the City Manager to perform the obligations of the City pursuant to the Agreement. The City Manager is authorized and directed to take any additional action necessary to implement the intent of the City Council and this action. Section 7. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City declares that the City would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. 3 7/19/2022 Section 8. Certification. The City Clerk of the City of San Juan Capistrano shall -certify -to the -adoption -of -this -Resolution. Section 9. Effective Date. This Resolution shall become effective immediately upon its adoption. APPROVED AND ADOPTED THIS 19th of July 2022 DEREK REEVE, MAYOR STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY 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. 22-07-19-01 was duly adopted by the City Council of the City of San Juan Capistrano at a Regular meeting thereof, held the 19th day of July 2022, by the following vote: AYES: COUNCIL MEMBERS: Bourne, Taylor, Farias, Hart, and Mayor Reeve NO OUNCIL MEMBERS: None ABSE T: QPrNCIL MEMBERS: None N 4 7/19/2022 EXHIBIT "A" TO RESOLUTION NO. 22-07-19-01 LEGAL DESCRIPTION OF PROPERTY ASSESSOR PARCEL NUMBER 668-101-23 (PORTION OF) PARCEL 2 (PORTION OF) THAT PORTION OF LOT 60 OF TRACT NO. 103, AS SHOWN ON A MAP FILED IN BOOK 11, PAGES 29 THROUGH 33, INCLUSIVE, OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA, IN THE CITY OF SAN JUAN CAPISTRANO, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS DESCRIBED IN THAT CERTAIN QUITCLAIM DEED RECORD NOVEMBER 15, 2002 AS INSTRUMENT NO. 2002001029026 OF OFFICIAL RECORDS OF SAID COUNTY, AND MORE PARTICULARLY DESCRIBED AS BEING "PARCEL 2" OF RECORD OF SURVEY No. 2021-1079, FILED FEBRUARY 10, 2022 IN BOOK 324, PAGE 37 OF RECORDS OF SURVEY, RECORDS OF SAID COUNTY. 5 7/19/2022 EXHIBIT "B" TO RESOLU`IION NO. 22 -U/ -1y-01 DISPOSITION AND DEVELOPMENT AGREEMENT (City Hall — Paseo Adelanto Mixed Use Permanent Supportive Housing) [Incorporated by reference] 7/19/2022