City Council

5.4 Affordable Housing: Appropriate Successor Agency Funds, Authorize a Leasehold Disposition\nand Development Agreement, and Application to the Homekey+ Program for Rehabilitation and\nConversion of the Palomar Motel into Permanent Supportive Housing\nReport Number: 25-0055\nLocation: 1160 Walnut Avenue\nDepartment: Housing and Homeless Services\nG.C. § 84308 Regulations Apply: No\nEnvironmental Notice: The Project qualifies for a Categorical Exemption pursuant to the\nCalifornia Environmental Quality Act State Guidelines Section 15301 (Existing Facilities) and\nSection 15061(b)(3).\nRECOMMENDED ACTION:\nAdopt resolutions: A) (1) Authorizing the City Manager or designee to enter into all necessary\nagreements for the Palomar Motel project, including a Leasehold Disposition and Development\nAgreement and a long-term ground lease for a nominal sum, with Wakeland Housing and\nDevelopment Corporation, or an affiliate (Wakeland); (2) authorizing the Housing Authority\nacting in its capacity as Successor Housing Entity to the Redevelopment Agency of the City of\nChula Vista to issue a $3 million loan as a local contribution for the Palomar Motel project; (3)\namending fiscal year 2024-25 budget; and (4) amending the 2024-25 and Capital Improvement\nbudget (4/5 Vote Required); and B) Authorizing the City to jointly apply to and participate in the\nHomekey+ Program, with Wakeland, for the rehabilitation of the Palomar Motel project.