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2011030711.1 - Redevelopment Agency joint AgreementSOW o< MEETING DATE: 03/7/11 ITEM NO: X0 8 GASO COUNCIL / AGENCY AGENDA REPORT DATE: MARCH 4, 2011 TO: MAYOR AND TOWN COUNCIL/ CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: GREG LARSON, TOWN MANAGER/EXECUTIVE DIRECTOR SUBJECT: TOWN OF LOS GATOS AND LOS GATOS REDEVELOPMENT AGENCY JOINT AGREEMENT RECOMMENDATION 1. Adopt Resolutions by Town of Los Gatos Town Council and by Los Gatos Redevelopment Agency Board of Directors approving the Cooperation Agreement for the Central Los Gatos Redevelopment Proj cet Area. 2. Authorize Town Manager to execute the Cooperation Agreement for the Central Los Gatos Redevelopment Project Area on behalf of the Town of Los Gatos. 3. Authorize Executive Director of the Los Gatos Redevelopment Agency to execute Cooperation Agreement for the Central Los Gatos Redevelopment Project Area on behalf of the Town of Los Gatos. 4. Approve budget adjustment not to exceed $6.2 million of low and moderate housing improvements, including reimbursement for eligible past and future project expenditures; related loan receivable /revenue in the Town's GFAR Capital Projects fund; and related loan payable /expenditure accounts in the Town's Redevelopment Agency Low and Moderate Housing Funds and as provided for under the Cooperation Agreement dated January 22, 1990 and the Cooperation Agreement for the Central Los Gatos Redevelopment Project Area on behalf of the Town of Los Gatos approved herein. PREPARED BY : STEVE CO AY, FINANCE DIRECTOR Reviewed by: Assistant Town Manager /Deputy Director Clerk Administrator /Secretary Fina Community Development Town Attorney /General Counsel CAUsem\pjacobs\Desktop\3 -7 -I1 TC Report RDA TOWN ACTION HOUSING.doc PAGE 2 MARCH 4, 2011 MAYOR AND TOWN COUNCIL/ CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: TOWN OF LOS GATOS AND LOS GATOS REDEVELOPMENT AGENCY JOINT AGREEMENT BACKGROUND Through a variety of public documents and public actions, the Los Gatos Town Council and Los Gatos Redevelopment Agency Board of Directors have long planned and committed the use of current Redevelopment Agency funds and reserves, as well as anticipated Redevelopment Agency revenues and resources, for a variety of public improvements needed to fulfill the Agency Plan to provide low and moderate housing and other related benefits for the Central Los Gatos Redevelopment Project Area. These prior Council and Agency Board directions and actions include not only the Redevelopment Agency Plan and the Agency Implementation Plan, but also the Capital Improvement Plan and Program, annual Operating and Capital Budgets, the recently updated General Plan, Civic Center Master Plan, Economic Vitality Strategy, Affordable Housing Strategy, Downtown Parking Plan, and the 2011 Council Strategic Goals. The Governor and State Legislature recently amlounced intentions to eliminate redevelopment funding for local jurisdictions except as required to retire existing debt and obligations, possibly including the prohibition on any further use of redevelopment funds. While the legality of the State's proposed actions are questionable, the intention of this Cooperation Agreement is to protect funded and committed low and moderate housing projects previously approved by the Town and Agency in the Redevelopment Project Area. Similar actions were previously taken by the Town Council and the Agency Board in relation to non - housing related projects and opportrmities ANALYSIS The Los Gatos Redevelopment Agency currently has reserves and anticipated revenues through June 30, 2011, net of existing debt obligations up to $6.2 million. These previously anticipated, planned, budgeted and committed reserves and resources have been obligated by the Town Council and Redevelopment Agency Board of Directors for a variety of redevelopment purposes and plans, including: 1. Development of affordable housing on the Town -owned property at 224 Main St. the Central Los Gatos Redevelopment Project Area, totaling up to $2 million; 2. Development of affordable housing on the Town -owned Dittos Lane property in the Central Los .Gatos Redevelopment Project Area, totaling up to $4 million; Acquisition of property and development of affordable housing in Los Gatos (e.g., County - owned property in Los Gatos on Knowles Ave., property within the Central Los Gatos Redevelopment Project Area currently for sale, etc.), totaling up to $5 million; 4. Partnership with Senior Housing Solutions for creation of senior housing in Los Gatos, totaling up to $1 million; PAGE 3 MARCH 4, 2011 MAYOR AND TOWN COUNCIL/ CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: TOWN OF LOS GATOS AND LOS GATOS REDEVELOPMENT AGENCY JOINT AGREEMENT 5. Partnerships for the conversion of existing residential developments dedicated to affordable housing totaling up to $2 million; and, 6. Grants to the Santa Clara County Housing Trust for the development of affordable housing within Los Gatos, totaling up to $2 million. The funding for these projects through this agreement is necessitated by declining General Fund and other tax revenues that could otherwise be considered for fimding some or all of these projects. These projects total over $16 million and are specified directly or indirectly in the adopted Los Gatos Redevelopment Agency five -Year Implementation Plan, General Plan Housing Element, Affordable Housing Strategy and Capital hnprovement Program. The proposed agreement between the Town of Los Gatos and the Los Gatos Redevelopment Agency, to be approved simultaneously by the Town Council and the Agency Board of Directors, would authorize the Town to proceed with the planned improvements subject to the funding available by the Redevelopment Agency, currently estimated to be approximately $6.2 million. The Town, through the Community Development Department, is the entity that typically oversees and implements Redevelopment Agency improvement affordable housing projects. The final scope, schedule, and priority of the individual projects will be subject to subsequent CEQA review, staff analysis and preparation, and Council direction as specified in the proposed agreement. CONCLUSION Staff recommends Town Council and Redevelopment Agency adopt the Recommendations set forth above. ENVIRONMENTAL ASSESSMENT Ptusuant to State CEQA Guidelines Section 15378(b)(4), approval of the Agreement is not a project subject to the California Environmental Quality Act ( "CEQA "). CEQA shall be completed prior to the commencement of any Public Improvement Project listed in the Improvement Plan contained in Exhibit A of the Cooperation Agreement. FISCAL IMPACT Sufficient fiords are expected to be available in the Town's Redevelopment Agency Low and Moderate Housing Funds to provide funding for up to $6.2 million for all plamed improvements and future expenditures in the Central Los Gatos Redevelopment Project Area as detailed in the Exhibit A of the Town's Cooperation Agreement. PAGE 4 MARCH 4, 2011 MAYOR AND TOWN COUNCIL/ CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: TOWN OF LOS GATOS AND LOS GATOS REDEVELOPMENT AGENCY JOINT AGREEMENT Attachments: 1. Cooperation Agreement for the Central Los Gatos Redevelopment Project Area on behalf of the Town of Los Gatos 2. Redevelopment Agency Resolution approving the Agreement 3. Town of Los Gatos Resolution approving the Agreement AFFORDABLE HOUSING COOPERATION AGREEMENT FOR THE CENTRAL LOS GATOS REDEVELOPMENT PROJECT AREA This Affordable Housing Cooperation Agreement (the "Agreement ") is for purposes of funding affordable housing projects and programs to be developed and /or administered by the Town of Los Gatos (the "Town "), and is entered into as of March 7, 2011 by and between the Town and the Redevelopment Agency of the Town of Los Gatos (the "Agency "), on the basis of the following facts, understandings and intentions of the parties: RECITALS A. Pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et sue.; the "Redevelopment Law "), the Town has adopted and the Agency is responsible for implementing the Redevelopment Plan (the "Redevelopment Plan ") for the Central Los Gatos Project Area (the "Project Area "). B. To assist in implementing the Redevelopment Plan, the Agency has adopted a five (5) -year implementation plan (the "Implementation Plan ") pursuant to Section 33490 of the Redevelopment Law. C Pursuant to Health and Safety Code Sections 33334.2 and 33334.3, the Agency has the obligation to establish a Low and Moderate Income Housing Fund (the "Housing Fund ") and to expend monies in the Housing Fund for the purposes of increasing, improving, and preserving the community's supply of housing available at affordable housing cost to low and moderate income households, lower income households, very low income households, and extremely low income households. D. Pursuant to Health and Safety Code Section 33125, the Agency has authority to execute contracts necessary or convenient to the exercise of its powers. E. Pursuant to Health and Safety Code Section 33220(e), the Town is authorized to enter into this Agreement to assist the Agency in performing powers and obligations under the Redevelopent Law. F. The Agency desires to contract with the Town to provide Housing Funds to the Town for use by the Town to increase, improve, and preserve the supply of affordable housing in the Project Area or within the territorial jurisdiction of the Town, consistent with the Redevelopment Plan, the Implementation Plan, and the Housing Element of the General Plan of the Town of Los Gatos (the "Housing Element "). G. The Agency and the Town desire that the Agency will provide Housing Fund monies to the Town for the Town to utilize to finance Housing Fund - eligible activities to increase, improve, and preserve the supply of affordable housing within the Project Area and the territorial jurisdiction of the Town, consistent with the Redevelopment Plan, the Implementation Plan, and the Housing Element, as they currently exist or as they may be amended from time to time. 1 11 51%04\952329.1 ATTACHMENT 1 H. The Agency and the Town have set forth in Exhibit A , attached to and incorporated in this Agreement by this reference, a list of potential projects and programs that the Town may undertake utilizing funds provided pursuant to this Agreement. Exhibit A in its entirety is referred to in this Agreement as the "Affordable Housing Plan" and the projects and programs listed in the Affordable Housing Plan from time to time are referred to individually as an "Affordable Housing Project" or "Affordable Housing Program ", as applicable, and collectively as the "Affordable Housing Projects and Programs." The Affordable Housing Plan set forth in Exhibit A includes the currently estimated costs of implementing the Affordable Housing Projects and Programs. The Affordable Housing Plan set forth in Exhibit A is subject to modification as provided in Section 2.2. I. The Affordable Housing Projects and Programs are consistent with the Redevelopment Plan and the Implementation Plan. Implementation of the Affordable Housing Projects and Programs will benefit the Project Area and will assist in the elimination of blight in the Project Area and the provision of affordable housing in the community. The Agency's and Town's use of funds as provided in this Agreement is authorized by the Redevelopment Law, and the Agency and Town Council have made all findings required under the Redevelopment Law for such use. J. Pursuant to State CEQA Guidelines Section 15378(b)(4), approval of the Agreement is not a project subject to the California Environmental Quality Act ("CEQA'), because this Agreement consists of the creation of a governmental funding mechanism for various affordable housing projects and programs, but does not commit funds to any specific project or program, in that environmental review required by CEQA shall be completed prior to the commencement of any Affordable Housing Project or Affordable Housing Program listed in the Affordable Housing Plan contained in Exhibit A . K. By approving and entering into this Agreement, the Agency has pledged a portion of the tax increment revenue from the Project Area to fund the Affordable Housing Plan. The obligations set forth in this Agreement are contractual obligations that, if breached, will subject the parties to damages or other liabilities or remedies. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Town and the Agency agree as follows: ARTICLE 1 AGENCY GRANT Section 1.1 Agency Grant Subject to the terms and conditions of this Agreement, the Agency hereby grants to the Town, and the Town hereby accepts from the Agency, a grant (the "Grant ") in an amount equal to the amount generated by the sources described in Section 1.2, for use by the Town to complete the Affordable Housing Plan as further provided in Article 2. I+a 1151 \04\952329.1 Section 1.2 Grant Source The sources of the Grant from the Agency to the Town consist of: (a) All funds currently held by the Agency in the Housing Fund and not previously encumbered by binding contract for other activities, projects, or programs (the "Available Funds "); and (b) All program income received from any source by the Agency or Successor that is required by the Redevelopment Law in effect as of the date of this Agreement to be deposited in the Housing Fund, including, without limitation, land sale proceeds, lease revenues, loan repayments, repayment of funds suspended pursuant to Health and Safety Code Section 33334.2(k) or borrowed from the Housing Fund pursuant to Health and Safety Code Section 33690(c) or 33690.5(c), and amounts paid to eliminate a deficit in Housing Fund deposits pursuant to the plan described in Health and Safety Code Section 33334.6(g) (the 'Program Income "). As used in this Agreement, "tax increment revenue" means and includes taxes allocated to, or made available to, or otherwise received by the Agency or a Successor pursuant to Health and Safety Code Section 33670 et seg. or other provision of the Redevelopment Law, or pursuant to any applicable constitutional provision, statute, or other provision of law now existing or adopted in the future to pay the debts and obligations of the Agency. As used in this Agreement, "Successor" includes any lawful successor of the Agency, and /or any lawful successor to any powers and rights of the Agency, pursuant to any applicable constitutional provision, statute or other provision of law now existing or adopted in the future. Section 1.3 Payment Procedure The Agency shall pay the Available Funds to the Town within ten (10) days of the date of this Agreement. The Agency shall pay the Program Income to the Town within ten (10) days after receipt of any such funds. Until needed to fund an Affordable Housing Project or Affordable Housing Program, the Town shall invest all Grant funds received from the Agency in the Local Agency Investment Fund or other comparable investment vehicle, and shall apply all .interest earned thereon toward the cost of the Affordable Housing Projects and Programs. Any Grant funds held by or for the benefit of the Town at the earlier of (a) completion of and payment for all of the Affordable Housing Projects and Programs or (b) the Plan Effectiveness Deadline (as defined in Section 2.1) shall be promptly reimbursed by the Town to the Agency, and may thereafter be used by the Agency free of any obligation under this Agreement. Section 1.4 Indebtedness of the Aaencv The obligation of the Agency to pay the Grant funds from the sources set forth in Section 1.2 to the Town pursuant to this Agreement shall constitute an indebtedness of the Agency incurred in carrying out the Redevelopment Plan and a pledge of tax increment revenue received by the Agency or Successor from the Project Area to repay such indebtedness under the provisions of Article XVI, Section 16 of the Constitution of the State of California, the Redevelopment 3 1151 \04 \952329.1 Law, and the Redevelopment Plan, or under any applicable constitutional provision, statute, or other provision of law now existing or adopted in the future. Section 1.5 Subordination The parties agree that the obligation of the Agency to make payments pursuant to this Agreement is subordinate to any obligation of the Agency to utilize Housing Fund monies to pay debt service on tax increment bonds, or any other loans or agreements, heretofore or hereafter issued and secured by a pledge of and a lien upon tax increment revenue generated by the Agency in the Project Area and required by Redevelopment Law to be deposited in the Agency's Housing Fund. ARTICLE 2 AFFORDABLE HOUSING PROJECTS AND PROGRAMS Section 2.1 Use of Grant The Town shall use the Grant exclusively for the purposes of increasing, improving, and preserving the community's supply of housing available at affordable housing cost to low and moderate income households, lower income households, and very low income households, in accordance with the requirements of the Redevelopment Law and the terms and conditions of this Agreement. The Town may use the Grant to pay any costs which are eligible Housing Fund costs pursuant to Health and Safety Code Section 33334.2 et sea. including without limitation eligible costs of the Affordable Housing Projects and Programs shown in the Affordable Housing Plan and reasonable staff, consultant and other administrative costs in connection therewith. The Town shall expend the Grant funds and undertake the Affordable Housing Plan in accordance with all applicable laws and regulations, including without limitation, laws and regulations related to the permissible uses of Housing Fund monies, monitoring of housing assisted with Housing Funds, statutorily - required findings by the Agency Board and Town Council, where applicable, prior to expenditures of Housing Funds, payment of prevailing wages (to the extent applicable), non - discrimination, and all applicable requirements of the Redevelopment Law. The Town shall use the Grant funds for the various Affordable Housing Projects and Programs by not later than the deadline for effectiveness of the Redevelopment Plan (the "Plan Effectiveness Deadline "), as set forth in the Redevelopment Plan. Section 2.2 Consultation; Modification of Improvement Plan The Agency and the Town shall confer periodically to establish priorities and timing for funding and completion of the various Affordable Housing Projects and Programs, to review the scope and design of each Affordable Housing Project and Program, and to determine any mutually acceptable modifications in the cost estimates and budgets for the various Affordable Housing Projects and Programs. The Town and Agency may modify the Affordable Housing Plan from time to time: to provide for the use of additional ederai, state and local funds; to account for unexpected revenues, whether greater or lesser; to modify, add, or delete an Affordable Housing Project or Program from the Affordable Housing Plan; to modify the cost estimate for individual Affordable Housing Projects and Programs; to maintain consistency with the Town's General Plan or the Redevelopment Plan; or to take into consideration unforeseen circumstances, including without limitation circumstances that may come to light as a result of subsequent environmental review C! 1151A04V952329.1 required by CEQA, as further described in Section 2.3. The Affordable Housing Plan may be modified by the Town Manager on behalf of the Town and the Executive Director on behalf of the Agency; provided, however, that any addition of any Affordable Housing Project or Program to the Affordable Housing Plan shall be conditioned upon the making of all required Redevelopment Law findings and CEQA findings by the Town Council and the Agency Board in their policy discretion. Section 2.3 CEQA Review Prior to the approval, use of Grant funds, and commencement of construction of any Affordable Housing Project or the implementation of any Affordable Housing Program (other than preliminary feasibility work that is exempt from the requirements of CEQA), all necessary environmental review required by CEQA shall be completed. All Affordable Housing Projects and Programs to be funded with Grant funds from the Agency pursuant to this Agreement must be consistent with CEQA. This Agreement in no way limits the discretion of the Planning Commission, the Agency, and Town Council in completing environmental review of the Affordable Housing Projects. Section 2.4 Ongoing Town Obligations The Town shall be responsible for ongoing administration of the Housing Funds comprising the Grant, including any required monitoring of Affordable Housing Projects and Programs and required reporting to the State of California. The Agency's grant and the Town's acceptance of the Grant shall not imply any ownership or responsibility for the Affordable Housing Projects and Programs by the Agency, and the Town shall retain any and all responsibility and liability for them. ' Section 2.5 Indemnitv The Town shall indemnify, defend, and hold the Agency, its officers, agents, and employees, harmless against all claims, demands, damages, losses, costs, expenses, including without limitation, attorneys' fees and costs of litigation, or liabilities made against them which arise out of, or in connection with the Affordable Housing Projects and Programs; provided, however, that this indemnity shall not extend to any claim arising solely from the Agency's negligence or the Agency's negligent failure to perform its obligations under this Agreement. ARTICLE 3 GENERAL PROVISIONS Section 3.1 Non - Liability of Officials No member, official, employee or agent of the Agency shall be personally liable to the Town, or any successor in interest, in the event of any default or breach by the Agency for any amount which may become due to the Town or successor or on any obligation under the terms of this Agreement. No member, official, employee or agent of the Town shall be personally liable to Agency, or any successor in interest, in the event of any default or breach by the Town for any amount which may become due to the Agency or successor or on any obligation under the terms of this Agreement. Section 3.2 Actions of the Parties Except as otherwise provided in this Agreement, whenever this Agreement calls for or permits a party's approval, consent, or 5 1151 \04 \952329.1 waiver, the written approval, consent, or waiver of the Agency's Executive Director and the Town's Town Manager (or their respective designees) shall constitute the approval, consent, or waiver of the Agency and the Town, respectively, without further authorization required from the governing board of the party; provided, however, that the person vested with such authority may seek such further advice or authorization from the applicable governing board when shelhe deems it appropriate. Section 3.3 Nondiscrimination (a) In Performance of Agreement The Town and its contractors, subcontractors, agents, and employees shall not, because of the race, color, creed, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income, age, or disability of any person, refuse to hire or employ the person, or refuse to select the person for a training program leading to employment, or bar or discharge the person from employment or from a training program leading to employment, or discriminate against the person in compensation or in terms, conditions or privileges of employment with respect to performance of this Agreement. (b) With Respect to Use of the Affordable Housing Protects The Town covenants by and for itself and its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income, age, or disability in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Affordable Housing Projects and programs. Section 3.4 No Third Party Beneficiaries No person or entity other than the Agency, the Town and their permitted successors and assigns, shall have any right of action under this Agreement. Section 3.5 State Law This Agreement, and the rights and obligations of the parties hereto, shall be construed and enforced in accordance with the laws of the State of California. Section 3.6 Records The Town shall maintain complete and accurate financial accounts, documents and records with respect to the performance of its obligations under this Agreement, and shall make same available to the Agency's authorized agents for copying and auditing upon reasonable prior notice. Such accounts, documents and records shall be retained by the Town for the longer of two (2) years following completion of the applicable Affordable Housing Project or whatever retention period the Town has designated for such documents. Section 3.7 Inspection of Documents During the regular office hours and upon reasonable prior notice, the Town and the Agency, by their duly authorized representatives, shall have the right to inspect and make copies of any books, records or reports of the other party pertaining to this Agreement. 0 1151 %04\952329.1 Section 3.8 Additional Acts The parties each agree to take such other and additional actions and execute and deliver such other and additional documents as may be reasonably requested by the other party for purposes of consummating the transactions contemplated in this Agreement. Section 3.9 Litigation Regarding Agreement Validity In the event litigation is initiated attacking the validity of this Agreement, each party shall in good faith defend and seek to uphold the Agreement. Section 3.10 Validity of Agreement If any provisions of this Agreement, or the application thereof to any person, party, transaction, or circumstance, is held invalid, the remainder of this Agreement, or the application of such provision to other persons, parties, transactions, or circumstances, shall not be affected thereby. Section 3.11 Entire Agreement; Modification and Amendment This Agreement contains all of the agreements and understandings of the parties pertaining to the subject matter contained herein and supersedes all prior or contemporaneous agreements, representations and understandings of the parties. Except as otherwise provided in Section 2.2, this Agreement cannot be amended or modified except by written agreement of the parties. Section 3.12 Defaults and Remedies If either party breaches any other material provision of this Agreement, the other party shall first notify the breaching party in writing of the purported breach or failure, giving the breaching party thirty (30) days from receipt of such notice to cure or, if cure cannot be accomplished within thirty (30) days, to commence to cure such breach, failure, or act. In the event the breaching party does not then so cure within such thirty (30) days, or if the breach or failure is of such a nature that it cannot be cured within thirty (30) days, the breaching party fails to commence to cure within such thirty (30) days and thereafter diligently complete such cure within a reasonable time thereafter but in no event later than one hundred twenty (120) days, then the non - breaching party shall be afforded all of its rights at law or in equity, by taking all or any of the following remedies: (a) terminating in writing this Agreement (provided, however, that the indemnification provisions of this Agreement shall survive such termination); and (b) prosecuting an action for damages or specific performance. Section 3.13 Attorneys' Fees In any action which a party brings to enforce its rights hereunder, the unsuccessful party shall pay all costs incurred by the prevailing party, including reasonable attorneys' fees. Section 3.14 Binding Upon Successors This Agreement shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors in interest and assigns of each of the parties to this Agreement, whether by agreement or operation of law, and including, without limitation, any Successor to the Agency. Any reference in this Agreement to a specifically named party shall be deemed to apply to any successor, heir, administrator, executor or assign of such party who has acquired an interest in compliance with the terms of this Agreement, or under law. 1151 \04\952329.1 7 Section 3.15 Time Of The Essence Time is of the essence in the performance of all duties and obligations under this Agreement. IN WITNESS WHEREOF, this Agreement has been executed as of the date set forth in the opening paragraph of this Agreement. REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS Approved as to Form Judith J. Propp, Agency Counsel Greg Larson, Executive Director TOWN OF LOS GATOS Approved as to Form Judith J. Propp, Town Attorney 1151 \04 \952329.1 Greg Larson, Town Manager E:3 EXHIBIT A IMPROVEMENT PLAN The Improvement Plan consists of the acquisition and improvement of land for, design, construction, and related activities to complete the following Public Improvement Projects: Development of affordable housing on the Town -owned property at 224 Main St. the Central Los Gatos Redevelopment Project Area, totaling up to $2million; Development of affordable housing on the Town -owned Dittos Lane property in the Central Los Gatos Redevelopment Project Area, totaling up to $4 million; Acquisition of property and development of affordable housing in Los Gatos (e.g., County - owned property in Los Gatos on Knowles Ave:, property within the Central Los Gatos Redevelopment Project Area currently for sale, etc.), totaling up to $5 million; Partnership with Senior Housing Solutions for creation of senior housing in Los Gatos, totaling up to $1 million; Partnerships for the conversion of existing residential developments dedicated to affordable housing totaling up to $2 million; and Grants to the Santa Clara County Housing Trust for the development of affordable housing within Los Gatos, totaling up to $2 million. THIS PAGE INTENTIONALLY LEFT BLANK RESOLUTION NO. 2011- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE LOS GATOS REDEVELOPMENT AGENCY APPROVING AN AFFORDABLE HOUSING COOPERATION AGREEMENT AND MAKING CERTAIN FINDINGS RELATED THERETO The Redevelopment Agency of the Town of Los Gatos resolves as follows: WHEREAS, the Town Council ( "Town Council ") of the Town of Los Gatos (Town ") has adopted and amended, from time to time, the Los Gatos Redevelopment Agency Plan ( "Redevelopment Plan ") for the Central Los Gatos Redevelopment Project Area ( "Project Area "); and WHEREAS, the Redevelopment Agency of the Town of Los Gatos ( "Agency ") is engaged in various activities in its efforts to remove the blighting conditions that still remain in the Project Area and to provide affordable housing that will be of benefit to the Project Area; and WHEREAS, in keeping with the goals of the Agency to eliminate blight and to provide affordable housing in accordance with the Redevelopment Plan, the Agency's current Implementation Plan ( "Implementation Plan"), and the Housing Element of the Town's General Plan (the "Housing Element "), the Town and the Agency have been working cooperatively regarding the development of affordable housing and the creation of affordable housing programs of benefit to the Project Area; and WHEREAS, due to the complexity of the affordable housing projects and programs and the varying funding sources, the Town and the Agency desire to enter into an Affordable Housing Cooperation Agreement (the "Agreement ", a copy of which is on file with the Town Clerk and Agency Secretary), through which the Agency will pay for, and the Town will conduct, projects and programs to increase, improve, and preserve the supply of affordable housing within the Project Area and the territorial jurisdiction of the Town, to be funded by the Agency's Low and Moderate Income Housing Fund (the "Housing Fund "); and WHEREAS, implementation of the Agreement will assist the Agency and the Town to accomplish the stated goals in the Redevelopment Plan, the Agency's current hmplementation Plan, and the Housing Element, as fiuther described in the staff report accompanying this Resolution (the "Staff Report"); and WHEREAS, under the California Redevelopment Law (Health and Safety Code Section 33000 et seq.; the "Law ") before the Agency can expend money from its Housing Fund outside the Project Area, the Agency and the Town Council must make specified findings pursuant to Health and Safety Code Section 33334.2(g); and WHEREAS, in connection with specific projects or programs, the Agency and the Town Council, as necessary, will consider and adopt other findings required for expenditures of Housing Funds, such as the subordination finding pursuant to Health and Safety Code Section 33334.14(a) and the leveraging finding pursuant to Health and Safety Code Section 33334.30); and 1151 k01 \952779.1 Page 1 of 4 ATTACHMENT 2 WHEREAS, pursuant to State CEQA Guidelines Section 15378(b)(4), approval of the Agreement is not a project subject to the California Environmental Quality Act ("CEQA"), because the Agreement consists of the creation of a governmental funding mechanism for various affordable housing projects and programs, but does not commit funds to any specific affordable housing project or program, in that environmental review required by CEQA shall be completed prior to the commencement of any affordable housing project or program listed in the Agreement; and WHEREAS, the Staff Report, the Redevelopment Plan, the report to Town Council accompanying the Redevelopment Plan, the Implementation Plan, and the Housing Element provide additional inforn7ation upon which the findings and actions set forth in this Resolution are based. NOW, THEREFORE BE IT RESOLVED by the Redevelopment Agency of the Town of Los Gatos as follows: Section 1 All of the above recitals are true and correct and incorporated herein. Section 2 In compliance with Section 33334.2(g) of the Law, the Agency hereby finds that assistance to the affordable housing projects and programs described in the Agreement and located outside the Project Area will be of benefit to the Project Area, based on the following: 1. The Project Area is part of a housing market area that includes the entire Town. The provision of affordable housing outside the Project Area will expand the overall supply of affordable housing in the housing market area, thus reducing overall housing costs in the housing market area, which includes the Project Area. 2. The provision of affordable housing within the housing market area that includes the Project Area will provide affordable housing for employees who work in the Project Area, thus helping to encourage businesses to locate in the Project Area and contributing to the removal of blight in the Project Area. 3. The provision of affordable housing within the housing market area that includes the Project Area will provide relocation and replacement housing resources for any future projects within the Project Area that may require currently unanticipated displacement of households. This finding is farther based on the facts and analysis in the Staff Report incorporated in this Resolution, as well as the findings and analysis contained in the Redevelopment Plan, the report to Town Council accompanying the Redevelopment Plan, the Implementation Plan, and the Housing Element. Section 3 The Agency agrees to make the expenditures as called for in the Agreement for the affordable housing projects and programs listed in the Agreement, subject to completion of any environmental review required by CEQA prior to the commencement of any project or program listed in the Agreement. Page 2 of 4 115 1 \01 \952779.1 Section 4 The Agency hereby approves the Agreement and authorizes the Agency Executive Director to enter into and execute the Agreement on behalf of the Agency for the funding and completion of the projects and programs listed in the Agreement, substantially in the form on file with the Agency Secretary and the Town Clerk, with such revisions as are reasonably determined necessary by the Agency signatory, such determination to be conclusively deemed to have been made by the execution of the Agreement by the Agency signatory. Section 5 The Agency hereby approves and appropriates (to the extent not already appropriated) the amounts necessary to fund the Agency's obligations under the Agreement as a lawful expenditure of Agency funds under the Law. The Agency's current fiscal year budget is hereby amended to the extent necessary to implement the foregoing appropriation. Section 6 The Agency Executive Director is hereby authorized and directed to file a Notice of Exemption with respect to the Agreement in accordance with the applicable provisions of CEQA. Section 7 The Agency Executive Director is hereby authorized to take such further actions and execute such other documents ds may be necessary or appropriate to carry out the Agency's obligations pursuant to this Resolution and the Agreement. Section 8 The Agency Secretary shall certify to the adoption of this Resolution. Section 9 This Resolution shall take effect immediately upon adoption. Page 3 of 4 1151 \01 \952779.1 PASSED AND ADOPTED at a regular meeting of the Board of Directors of the Los Gatos Redevelopment Agency, California held on the 7 th day of March, 2011, by the following vote: DIRECTORS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: JOE PIRZYNSKI CHAIR OF THE BOARD OF DIRECTORS OF THE LOS GATOS REDEVELOPMENT AGENCY LOS GATOS, CALIFORNIA ATTEST: SECRETARY ADMINISTRATOR OF THE BOARD OF THE LOS GATOS REDEVELOPMENT AGENCY LOS GATOS, CALIFORNIA Page 4 of 4 1151101 \952779.1 RESOLUTION NO. 2011- A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING AN AFFORDABLE HOUSING COOPERATION AGREEMENT AND MAKING CERTAIN FINDINGS RELATED THERETO The Town Council of the Town of Los Gatos resolves as follows: WHEREAS, the Town Council ( "Town Council ") of the Town of Los Gatos (Town ") has adopted and amended, from time to time, the Los Gatos Redevelopment Agency Plan ( "Redevelopment Plan") for the Central Los Gatos Redevelopment Project Area ( "Project Area "); and WHEREAS, the Redevelopment Agency of the Town of Los Gatos ( "Agency ") is engaged in various activities in its efforts to remove the blighting conditions that still remain in the Project Area and to provide affordable housing that will be of benefit to the Project Area; and WHEREAS, in keeping with the goals of the Agency to eliminate blight and to provide affordable housing in accordance with the Redevelopment Plan, the Agency's current Implementation Plan (`Implementation Plan "), and the Housing Element of the Town's General Plan (the "Housing Element'), the Town and the Agency have been working cooperatively regarding the development of affordable housing and the creation of affordable housing programs of benefit to the Project Area; and WHEREAS, due to the complexity of the affordable housing projects and programs and the varying funding sources, the Town and the Agency desire to enter into an Affordable Housing Cooperation Agreement (the "Agreement ", a copy of which is on file with the Town Clerk and Agency Secretary), through which the Agency will pay for, and the Town will conduct, projects and programs to increase, improve, and preserve the supply of affordable housing within the Project Area and the territorial jurisdiction of the Town, to be funded by the Agency's Low and Moderate Income Housing Fund (the "Housing Fund "); and WHEREAS, implementation of the Agreement will assist the Agency and the Town to accomplish the stated goals in the Redevelopment Plan, the Agency's current Implementation Plan, and the Housing Element, as farther described in the staff report accompanying this Resolution (the "Staff Report"); and WHEREAS, under the California Redevelopment Law (Health and Safety Code Section 33000 et seq.; the "Law ") before the Agency can expend money from its Housing Fund outside the Project Area, the Agency and the Town Council must make specified findings pursuant to Health and Safety Code Section 33334.2(g); and WHEREAS, in connection with specific projects or programs, the Agency and the Town Council, as necessary, will consider and adopt other findings required for expenditures of Housing Funds, such as the subordination finding pursuant to Health and Safety Code Section 33334.14(a) and the leveraging finding pursuant to Health and Safety Code Section 33334.30); and Page 1 of 3 ATTACHMENT 3 1151 \01 \952882.1 WHEREAS, pursuant to State CEQA Guidelines Section 15378(b)(4), approval of the Agreement is not a project subject to the California Environmental Quality Act ("CEQA!'), because the Agreement consists of the creation of a governmental funding mechanism for various affordable housing projects and programs, but does not conunit funds to any specific affordable housing project or program, in that environmental review required by CEQA shall be completed prior to the commencement of any affordable housing project or program listed in the Agreement; and WHEREAS, the Staff Report, the Redevelopment Plan, the report to Town Council accompanying the Redevelopment Plan, the Implementation Plan, and the Housing Element provide additional information upon which the findings and actions set forth in this Resolution are based. NOW, THEREFORE BE IT RESOLVED by the Town Council of the Town of Los Gatos as follows: Section 1 All of the above recitals are true and correct and incorporated herein. Section 2 In compliance with Section 33334.2(g) of the Law, the Town Council hereby finds that assistance to the affordable housing projects and programs described in the Agreement and located outside the Project Area will be of benefit to the Project Area, based on the following: I. The Project Area is part of a housing market area that includes the entire Town. The provision of affordable housing outside the Project Area will expand the overall supply of affordable housing in the housing market area, thus reducing overall housing costs in the housing market area, which includes the Project Area. 2. The provision of affordable housing within the housing market area that includes the Project Area will provide affordable housing for employees who work in the Project Area, thus helping to encourage businesses to locate in the Project Area and contributing to the removal of blight in the Project Area. 3. The provision of affordable housing within the housing market area that includes the Project Area will provide relocation and replacement housing resources for any future projects within the Project Area that may require currently unanticipated displacement of households. This finding is further based on the facts and analysis in the Staff Report incorporated in this Resolution, as well as the findings and analysis contained in the Redevelopment Plan, the report to Town Council accompanying the Redevelopment Plan, the hmplementation Plan, and the Housing Element. Section 3 The Town Council consents to the Agency expenditures as called for in the Agreement for the affordable housing projects and programs listed in the Agreement, subject to completion of any environmental review required by CEQA prior to the commiencement of any project or program listed in the Agreement. Page 2 of 3 1151 \01 \952882.1 Section 4 The Town Council hereby approves the Agreement and authorizes the Town Manager to enter into and execute the Agreement on behalf of the Town for the funding and completion of the projects and programs listed in the Agreement, substantially in the form on file with the Agency Secretary and the Town Clerk, with such revisions as are reasonably determined necessary by the Town signatory, such determination to be conclusively deemed to have been made by the execution of the Agreement by the Town signatory. Section 5 The Town Manager is hereby authorized and directed to file a Notice of Exemption with respect to the Agreement in accordance with the applicable provisions of CEQA. Section 6 The Town Manager is hereby authorized to take such further actions and execute such other documents as may be necessary or appropriate to carry out the Town's obligations pursuant to this Resolution and the Agreement. Section 7 The Town Clerk shall certify to the adoption of this Resolution. Section 8 This Resolution shall take effect immediately upon adoption. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos at regular meeting on the 7 th day of March, 2011, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: JOE PIRZYNSKI MAYOR OF THE TOWN OF LOS. GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR LOS GATOS, CALIFORNIA Page 3 of 3 1151 \01 \952882.1 THIS PAGE INTENTIONALLY DEFT BLANK