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Resolution No. 6957 10 RESOLUTION NO. 6957 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS APPROVING A SALE AGREEMENT AND ESCROW INSTRUCTIONS WITH OLSON URBAN HOUSING, LLC FOR THE SALE OF CITY OWNED PROPERTY AT 5732 LINCOLN AVENUE TO IMPLEMENT AN AFFORDABLE HOUSING PROJECT AND FINDING THE PROJECT EXEMPT FROM THE CALIFORNIA ENVIROMENTAL QUALITY ACT WHEREAS, the City of Cypress ("City") owns real property located at 5732 Lincoln Avenue, in the City of Cypress, County of Orange, State of California, Assessor's Parcel Number 244-472-09 ("Property"); and WHEREAS, Olson Urban Housing (Developer") intends to construct a townhouse- style condominium project, which will consist of twenty (20) three-story units, fifteen of which will be market-rate units and five (5) units of which will be affordable to Low-Income families with appropriate amenities including, but not limited to landscaped common areas, parking and recreational areas; and WHEREAS, in 2003, the former Cypress Redevelopment Agency ("Agency"), in accordance with California law, acquired the Property for affordable housing purposes using Low and Moderate Income Housing Funds ("Housing Funds"); and WHEREAS, in 2011, the California Legislature enacted, and the California Supreme Court, upheld legislation requiring that all redevelopment agencies in the State of California be dissolved as of February 1, 2012, after which the City elected to serve as the housing successor to the dissolved Agency and, on October 14, 2013, the City Council approved the transfer of title to the Property from the Agency to the City; and WHEREAS, pursuant to SB 341 adopted in 2013, the City was required to develop the Property for affordable housing purposes within five years from acquiring it from the Agency, or by October 14, 2018, which timeline, in accordance with SB 341, and Health & Safety Code section 33334.16, was extended by the City Council for another five years to October 14, 2023; and WHEREAS, on June 12, 2023 the City Council passed a resolution declaring the property surplus and authorized the release of a Notice of Availability; and WHEREAS, a Notice of Availability was sent on June 14, 2023, to State listed housing sponsors. During the required 60-day period, three affordable housing entities expressed interest in the property; however, only the Developer provided required information requested by the City during the negotiation period; and WHEREAS, the transfer of the Property by the City to Developer is made in compliance with the Surplus Land Act at California Government Code Sections 54220 et. seq. and the applicable regulations, which applies to the disposition of surplus real estate by governmental agencies. Pursuant to Government Code Section 54222.5, the proposed Sale Agreement and Escrow Instructions between the City and Developer ("Agreement") requires Developer to restrict the sale of not less than 25 percent of the total number of units developed on the Site for Qualified Purchasers at an affordable housing cost, as defined in Health and Safety Code Section 50052.5; and WHEREAS, the Agreement contains all the provisions, terms and obligations required by State and local law, and the Developer represents that it possesses the qualifications and financial resources necessary to construct the Project at the sole cost and expense of the Developer; and WHEREAS, Developer will submit the necessary entitlement applications for the City's consideration to allow the design and construction of a for-sale residential project upon the Site, as set forth in the Agreement; and 11 WHEREAS, pursuant to the terms and conditions of the Agreement, the Developer will construct the improvements on the Property at the sole cost and expense of the Developer; and WHEREAS, the Property has a land use and zoning designation of "commercial mixed-use" which is consistent with the proposed project. Pursuant to the Class 32 "in- fill" categorical exemption (CEQA Guideline Section 15332), this Project is exempt from environmental review, because the project is defined as an in-fill development project, located on no more than five acres, has no native vegetation or watercourses present on site, can be adequately served by all required utilities and public services, and the existing street network has adequate capacity to accommodate the anticipated traffic from the proposed Project. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Recitals. The recitals set forth above are true and correct and incorporated herein by this reference. SECTION 2. The City Council hereby approves the Agreement in substantially the form as presented to the City Council, effectuating the City's disposition of the Property to the Developer and the development of the Project by the Developer. SECTION 3. The City Council hereby authorizes and directs the City Manager of the City, or designee, (i) to take all actions and to execute any and all documents, instruments and agreements necessary or desirable on behalf of the City, as approved by the City Manager of the City and the City Attorney, including, without limitation, the Agreement, the grant deed transferring the Property to the Developer, and the agreement containing covenants and other covenants to be imposed on the Property in order to effectuate the terms and conditions of the Agreement; (ii) to effectuate all other actions approved by this Resolution, including, without limitation, approving changes, implementations or revisions to documents, instruments and agreements as determined necessary by the City Manager, or designee; and (iii) to administer the City's obligations, responsibilities, and duties to be performed pursuant to this Resolution and all documents, instruments and agreements required by and for the sale and transfer of the Property to the Developer. SECTION 4. Pursuant to the Class 32 "in-fill" categorical exemption (CEQA Guideline Section 15332), this Project is exempt from environmental review, because the project is defined as an in-fill development project, located on no more than five acres, has no native vegetation or watercourses present on site, can be adequately served by all required utilities and public services, and the existing street network has adequate capacity to accommodate the anticipated traffic from the proposed Project. SECTION 5. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, then 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 Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. SECTION 6.The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. PASSED, APPROVED AND ADOPTED by the City Council of the City of Cypress at a regular meeting held on the 25th day of March, 2024. M , OR OF THE 9 " OF RESS 12 ATTEST: 4,I) CITY L,,ERK OF THE C Y OF CYPRESS STATE OF CALIFORNIA) COUNTY OF ORANGE ) SS I, Alisha Farnell, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the 25th day of March, 2024; by the following roll call vote: AYES: 4 COUNCIL MEMBERS: Burke, Mallari, Peat and Minikus NOES: 0 COUNCIL MEMBERS: None ABSTAIN: 1 COUNCIL MEMBERS: Marquez CITY C RK OF THE CI Y OF CYPRESS