2010-027 - Approval of a Disposition and Development Agreement

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E. The Agency currently owns certain real property ("Agency Parcels") located within the City of Santa Ana ("City"), which property is also partially located within the geographic boundaries (the "Project Area"') of the Merged Project ("Merged Project"), and is attempting to acquire other real property that is currently owned by third parties ("Additional Properties") (the Agency Parcels and Additional Properties are collectively referred to as the "Site"); and F. Santa Ana Station District, LLC, a California limited liability company ("Developer"), has proposed to acquire the Site from the Agency, to construct on the Site affordable rental housing that will be available to and occupied by persons and families of very low income and extremely low income, affordable for-sale housing that will be available to and occupied by persons and families of moderate income, and market rate for-sale housing that will be available to all buyers (collectively, the "Developer Project"); and G. In order to carry out and implement the Redevelopment Plan for the Merged Project and the affordable housing requirements thereof, the Agency proposes to enter into a Disposition and Development Agreement ("Agreement") with the Developer, pursuant to which the Agency would convey the Site to the Developer and the Developer would agree to construct the Project in accordance with the requirements of the Agreement, restrict occupancy of the rental housing to persons and families of very low income and extremely low income, and restrict occupancy of a portion of the for-sale housing to persons and families of moderate income, all as more particularly set forth in the Agreement; and H. Pursuant and subject to the terms of the Agreement, the Agency will provide the following financial assistance to the Developer Project: (i) loans to the Developer in the amount of Ten Million Eight Hundred Thousand Dollars $10,800,000) for Phase R-1 (as defined in the Agreement) of the Developer Project and Four Million Seven Hundred Seventy Thousand Dollars ($4,770,000) for Phase R-2 (as defined in the Agreement) of the Developer Project (collectively, the "Agency Loan- Rental Component"); (ii) a loan to the Developer in the amount of One Million Five Hundred Thousand ($1 ,500,000) for Phase FS (as defined in the Agreement) of the Developer Project (Agency Loan -Phase FS) and (iii) a loan to each qualified Moderate Income Homebuyer of an Affordable For-Sale Unit (as defined in the Agreement) in the amount of up to Thirty Thousand Dollars ($30,000) to be deposited by the Agency into the applicable escrow for each Homebuyer of an Affordable For-Sale Unit and disbursed by the escrow agent to the Developer upon each Homebuyer closing and purchase of an Affordable For-Sale Unit (each, a "Homebuyer Assistance Loan"); and, Resolution No. 2010-027 Page 2 of 6