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Home My WebLink About17-15 - Resolutions - To Approve An Amendment To Development RESOLUTION NO. 17-15 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, RECOMMENDING ADOPTION OF AN ORDINANCE AUTHORIZING THE CITY OF RANCHO CUCAMONGA TO APPROVE AN AMENDMENT TO DEVELOPMENT AGREEMENT DRC2014-00610 BETWEEN THE CITY OF RANCHO CUCAMONGA AND 7418 ARCHIBALD, LLC, TO REMOVE A STATEMENT PROVIDING FOR SUBORDINATION OF THE DEVELOPMENT AGREEMENT TO DEEDS OF TRUST OR LIENS SECURING FINANCING OF THE PROJECT, AND ANCILLARY MODIFICATIONS, FOR THE PURPOSE OF PROVIDING A SENIOR HOUSING PROJECT IN ACCORDANCE WITH THE SENIOR HOUSING OVERLAY ZONING DISTRICT (SHOZD), INCLUDING DEVIATING FROM CERTAIN DEVELOPMENT STANDARDS, FOR THE DEVELOPMENT OF A 24,641 SQUARE FOOT, 60-UNIT SENIOR APARTMENT COMPLEX ON 2.25 ACRES OF LAND LOCATED ON THE WEST SIDE OF ARCHIBALD AVENUE, SOUTH OF BASE LINE ROAD, AS PROVIDED FOR IN SECTION 65864 OF THE CALIFORNIA GOVERNMENT CODE, FOR REAL PROPERTY DESCRIBED HEREIN, AND MAKING FINDINGS IN SUPPORT THEREOF, APN: 0208-031-58 AND 0208-031-59. A. Recitals. 1. The applicant, 7418 Archibald, LLC; filed an application for Development Agreement Amendment DRC2017-00101, as described in the title of this Resolution. Hereinafter in this Resolution, the subject Development Agreement is referred to as "the application." 2. On the 13th day of May 2015, the Planning Commission adopted Resolution No. 15- 35 recommending the City Council approve Development Agreement DRC2014-00610 for the purpose of providing a senior housing project in accordance with the Senior Housing Overlay Zoning District (SHOZD), including deviating from certain development standards, for the development of a 24,641 square foot, 60-unit, senior apartment complex on 2.25 acres of land located on the west side of Archibald Avenue, south of Base Line Road. 3. On the 3rd day of June 2015, the City Council approved Development Agreement DRC2014-00610. 4. On the 17th day of June 2015, the City Council adopted Ordinance No. 876 for Development Agreement DRC2014-00610. 5. On the 24th day of August 2016, the Planning Commission adopted Resolution No. 16- 47 recommending the City Council approve for Development Agreement Amendment DRC2016- 00667 to allow for a reduction in the percentage of tax credit financing and to modify unit affordability for the purpose of providing a senior housing project in accordance with the Senior Housing Overlay Zoning District (SHOZD). 6. On the 21st day of September 2016, the City Council approved Development Agreement Amendment DRC2016-00667. PLANNING COMMISSION RESOLUTION NO. 17-15 DRC2017-00101 — 7418 ARCHIBALD, LLC February 22, 2017 Page 2 7. On the 3rd day of October 2016, the City Council adopted Ordinance No. 896 for Development Agreement Amendment DRC2016-00667 to allow fora reduction in the percentage of tax credit financing and to modify unit affordability. 8. The purpose of this Amendment is to modify the Development Agreement to remove the last sentenced of Section 24 as it pertains to subordination of the Development Agreement to deeds and of trust or liens securing financing of the project. 9. On the 22nd day of February 2017, the Planning Commission of the City of Rancho Cucamonga conducted a noticed public hearing on the application and concluded said hearing on that date. 10. The subject property of the Development Agreement Amendment is legally described herein. 11. A true and correct copy of the proposed Development Agreement Amendment is attached as Attachment "A" to this Resolution. 12. All legal prerequisites prior to the adoption of this Resolution have occurred. B. Resolution. NOW, THEREFORE, it is hereby found, determined, and resolved by the Planning Commission of the City of Rancho Cucamonga as follows: 1. This Commission hereby specifically finds that all of the facts set forth in the Recitals, Part A, of this Resolution are true and correct. 2. This Commission 'hereby specifically finds that the Development Agreement Amendment and each and every term and provision contained therein conforms to the General Plan of the City of Rancho Cucamonga based on the following findings: a. The proposed Development Agreement Amendment is consistent with the objectives, policies, and general land uses specified in the General Plan and any applicable Specific Plans; and b. The proposed Development Agreement Amendment is compatible and in conformity with public convenience, general welfare, and good land use and zoning practice; and c. The proposed Development Agreement Amendment will not be detrimental to the health, safety, and general welfare of the City; and d. The proposed Development Agreement Amendment will not adversely affect the orderly development of property or the preservation of property values. 3. Pursuant to the California Environmental Quality Act (CEQA) and the City's local CEQA Guidelines, the City adopted a Mitigated Negative Declaration on June 3, 2015, in connection with the City's approval of Development Agreement DRC2014-00610. Pursuant to CEQA Guidelines Section 15162, no subsequent or supplemental EIR or Negative Declaration is required in connection with subsequent discretionary approvals of the same project. The PLANNING COMMISSION RESOLUTION NO. 17-15 DRC2017-00101 — 7418 ARCHIBALD, LLC February 22, 2017 Page 3 proposed Development Agreement Amendment deletes the last sentence of Section 24 (See Attachment A, page 8)where the City had agreed that the terms of the agreement are subordinate to any such financing instrument and that the City shall execute from time to time any and all documentation reasonably requested by Developer or Lender to effect such subordination. Accordingly, no substantial changes are proposed to the project that indicate new or more severe impacts on the environment; no substantial changes have occurred in the circumstances under which the project was previously reviewed that indicates new or more severe environmental impacts; no new important information shows the project will have new or more severe impacts than previously considered; and no additional mitigation measures are now feasible to reduce impacts or different mitigation measures can be imposed to substantially reduce impacts. On June 3, 2015, the City adopted a Mitigated Negative Declaration regarding the proposed development of a 24,641 square foot, 60-unit, senior apartment complex on 2.25 acres of land located on the west side of Archibald Avenue, south of Base Line Road. Accordingly, there have been no substantial changes to the project or the circumstances surrounding the project which would create new or more severe impacts than those evaluated in the previous Mitigated Negative Declaration. Staff further finds that the project will not have one or more significant effects not discussed in the previous Mitigated Negative Declaration, not have more severe effects than previously analyzed, and that additional or different mitigation measures are not required to reduce the impacts of the project to a level of less-than-significant. 4. This Commission hereby recommends approval of the Development Agreement Amendment attached hereto as Attachment"A" with the special condition which follows: a. The final draft of the Development Agreement Amendment shall be reviewed and accepted by the City Attorney prior to approval by City Council. 5. The Secretary to this Commission shall certify to the adoption of this Resolution. APPROVED AND ADOPTED THIS 22ND DAY OF FEBRUARY 2017. PLANNING COMMISSION OF THE CITY OF RANCHO CUCAMONGA BY: Francisco Oax. a, Chairman / / e,��ATTEST: ' Candyce Burnett, S-cretary I, Candyce Burnett, Secretary of the Planning Commission of the City of Rancho Cucamonga, do hereby certify that the foregoing Resolution was duly and regularly introduced, passed, and adopted by the Planning Commission of the City of Rancho Cucamonga, at a regular meeting of the Planning Commission held on the 22nd day of February 2017, by the following vote-to-wit: PLANNING COMMISSION RESOLUTION NO. 17-15 DRC2017-00101 —7418 ARCHIBALD, LLC February 22, 2017 Page 4 AYES: COMMISSIONERS: MACIAS, MUNOZ, OAXACA, WIMBERLY NOES: COMMISSIONERS: NONE ABSENT: COMMISSIONERS: FLETCHER ABSTAIN: COMMISSIONERS: NONE DRAFT RECORDING REQUESTED BY, AND WHEN RECORDED MAIL TO: City of Rancho Cucamonga P.O. Box 807 Rancho Cucamonga, CA 91729 Attn: City Clerk SPACE ABOVE THIS LINE FOR RECORDER'S USE Exempt from Recording Fee per Government Code 6103 SECOND AMENDMENT TO DEVELOPMENT AGREEMENT DRC 2014-00610 SENIOR CITIZENS' HOUSING BY AND BETWEEN THE CITY OF RANCHO CUCAMONGA AND 7418 ARCHIBALD LLC (CO 15-122) f�G REso n/1 . /7-/S ATTACHMENT A -1- 11231-0001\2039716v 1.doc 4850-6866-5410v.1 4900000-001905 SECOND AMENDMENT TO DEVELOPMENT AGREEMENT DRC 2014-00610 SENIOR CITIZENS' HOUSING BY AND BETWEEN THE CITY OF RANCHO CUCAMONGA AND 7418 ARCHIBALD LLC (CO 15-122) THIS SECOND AMENDMENT TO DEVELOPMENT AGREEMENT ("Second Amendment") is made and entered into as of March 15, 2017, by and between 7418 ARCHIBALD, LLC, a California limited liability company("Developer") and the CITY OF RANCHO CUCAMONGA, a municipal corporation organized and existing under the laws of the State of California("CITY"). RECITALS A. On June 17, 2015 the City Council adopted Ordinance 876 approving a Development Agreement ("Development Agreement") with the Developer, recorded on July 21, 2016 with a document number of 2016-0292138, which provided for the development of 59 affordable senior housing units with one manager's unit located at 7418 Archibald Avenue which consists of two parcels of land totaling 2.25 acres in the City of Rancho Cucamonga. B. In October, 2016, said Development Agreement was amended by a First Amendment to Development Agreement (the"First Amendment"). Said Development Agreement, as so amended, is hereinafter referred to as the "Development Agreement". C. Developer and City now desire to further amend the Development Agreement to remove one sentence therein that provided for subordination of the Development Agreement to deeds of trust or liens securing financing for the project. D. Capitalized terms used, but not defined, in this Second Amendment shall have the meaning set forth in the Development Agreement. AMENDMENT 1. Section 24.d. of the Development Agreement is hereby amended and restated and replaced in its entirety with the following: "d. Acquire and succeed to the interest of Developer by virtue of any foreclosure sale, whether the foreclosure sale is conducted pursuant to a court order or pursuant to a power of sale contained in a trust deed or a deed in lieu of foreclosure (`Foreclosure Remedy') and assign its rights as Developer to a subsequent purchaser following a Foreclosure Remedy such that such subsequent purchaser would acquire and succeed as Developer under the Development Agreement." 2. The last sentence of Section 24 of the Development Agreement is hereby deleted. 3. Rental Restrictions following Foreclosure Remedy by First Lienholder. -2- 1 123 1-000 1\2039716v 1.doc 4850-6866-5410v.1 4900000-001905 a. In connection with the construction financing for the Project, Developer is executing a deed of trust in favor of Bank of America, N.A., a national banking association ("Initial First Lienholder") securing a construction loan to Developer ("Construction Loan"), which shall be an encumbrance against the Site ("Initial First Lien"). Initial First Lienholder shall, upon the satisfaction of certain terms and conditions set forth in that certain Loan Purchase Agreement among Developer, Initial First Lienholder and California Community Reinvestment Corporation ("CCRC"), assign its rights under the Initial First Lien to CCRC. As used herein, "First Lienholder" shall mean each of(i) the Initial First Lienholder and its successors and assigns as the holder of the note secured by the First Lien, including, but not limited to, CCRC, and (ii) any holder of any new mortgage debt which is extended in whole or in part to refinance or replace all or any part of the Initial First Lien, so long as such new mortgage debt has a principal amount not in excess of the maximum amount of the Construction Loan secured by the Initial First Lien plus customary protective advances. b. From and after the exercise of a Foreclosure Remedy by First Lienholder, the rental restrictions set forth in Section 8 of the Development Agreement (as amended by the First Amendment) shall automatically be amended and restated and replaced with the following: "8. Rental Restrictions. During the Qualified Project Period, all units in the Project (other than one unrestricted manager's unit) shall be rented, leased or held available for Qualified Tenants whose annual income does not exceed eighty percent(80%) of Area Median Income (`Eighty Percent Income Qualified Tenants') at affordable rents as published by the California Tax Credit Allocation Committee for each year for a specific year for Eighty Percent Income Qualified Tenants." -3- 11231-0001\2039716v1.doc 4850-6866-5410v.1 4900000-001905 IN WITNESS WHEREOF, this Agreement has been executed by the parties. DEVELOPER: CITY: 7418 ARCHIBALD LLC, CITY OF RANCHO CUCAMONGA, a California limited liability company a municipal corporation By: Orange Housing Development Corporation, By: a California nonprofit corporation, its Print Name: member Mayor By: Eunice Bobert Chief Executive Officer By: C&C Development Co., LLC, ATTEST: a California limited liability company, its member By: Janice C. Reynolds, City Clerk Todd R. Cottle, its member By: The Cottle Family Trust Dated APPROVED AS TO FORM: 3/8/1987, its member RICHARDS, WATSON & GERSHON By: Barry A. Cottle, Trustee By: James Markman, City Attorney -4- 1 123 1-0001\2039716v 1.doc 4850-6866-5410v.1 4900000-001905 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached,and not the truthfulness, accuracy,or validity of that document. State of California ) County of Orange ) On , before me, (insert name and title of the officer) Notary Public,personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and.correct. WITNESS my hand and official seal. Signature (Seal) -5- 11231-0001\2039716v 1.doc 4850-68 66-5410v.1 4900000-001905 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy,or validity of that document. State of California ) County of Orange ) On , before me, (insert name and title of the officer) Notary Public,personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) • -6- 11231-0001\203 9716v 1.doc 4850-6866-5410v.1 4900000-001905