HomeMy WebLinkAboutReso 150-13 Afford House Agmt Amend RESOLUTION NO. 150 - 13
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING FIRST AMENDMENT TO AFFORDABLE HOUSING AGREEMENT FOR THE
CONSTRUCTION OF INCLUSIONARY UNITS AND THE PAYMENT OF FEES IN-LIEU OF
CONSTRUCTING CERTAIN AFFORDABLE OWNERSHIP UNITS
WHEREAS, pursuant to the requirements of the Inclusionary Zoning Regulations of the
City of Dublin Zoning Ordinance (the "Ordinance"), on January 10, 2012, the City of Dublin (the
"City") and Standard Pacific Corp, Inc. ("Standard Pacific"), entered into an Affordable Housing
Agreement for the Construction of Inclusionary Units (the "Agreement") for the construction of
106 residential units known as the Fallon Crossing Project ("Project"), including the construction
of thirteen (13) Inclusionary Units on certain property it owned; and
WHEREAS, under the Agreement, Standard Pacific's Inclusionary Zoning obligation was
to provide thirteen (13) Inclusionary Units, allocated as follows: construction of two (2) very low-
income units, two (2) low-income units, and four (4) moderate-income units; and pay fees in-lieu
of constructing the remaining five (5) Inclusionary Units; and
WHEREAS, Standard Pacific paid fees in-lieu of constructing five (5) Inclusionary Units
on January 11, 2012, in the amount of$519,440; and
WHEREAS, Standard Pacific has proposed to amend the Agreement to provide that it
will satisfy its obligations through payment of fees in-lieu of constructing the remaining eight (8)
Inclusionary Units; and
WHEREAS, Section 8.68.040.E of the Dublin Zoning Ordinance allows the City Council,
at its discretion, to waive, wholly or partially, the requirements of the Inclusionary Zoning
Regulations and approve an alternate method of compliance if the applicant demonstrates, and
the City Council finds, that such alternate methods meet the purposes of the Inclusionary Zoning
Chapter; and
WHEREAS, the purpose of the Inclusionary Zoning Regulations are to enhance the
public welfare and assure that further housing development contributes to the attainment of the
City's housing goals by increasing the production of residential units affordable by households of
very-low, low and moderate-income and assure that the limited remaining developable land in
the City's planning area is utilized in a manner consistent with the City's housing policies and
needs; and
WHEREAS, the City Council hereby finds that the proposal by Standard Pacific to pay
fees in-lieu of constructing the remaining eight (8) Inclusionary Units is an alternate method of
complying with, and is consistent with the purposes of, the Inclusionary Zoning Regulations for
the reasons that follow and hereby waives the requirement that 7.5% of the units in the project
be affordable:
Page 1 of 3
1. If the Developer were to be required to produce the Inclusionary Units, it would
prove difficult because of currently prevailing market conditions for the developer
to sell the units at prices that approach the current maximum affordable price,
since the market prices for units with deed restrictions are less than the affordable
prices. Such a requirement would place an unfair burden on the Developer that is
not consistent with the purpose of the Regulations.
2. If the Developer were required to produce the Inclusionary Units, the future buyers
of those units would have difficulty reselling the units, for the foreseeable future,
because of the likely-to-be small difference between the affordable price and the
market price for similar units without deed restrictions. Such circumstances would
be inconsistent with the purposes of the Regulations.
3. Buyers who wish to re-sell their home to market are required to verify and assure
the prospective buyer meets inclusionary requirements, plus attend workshops
and cover all costs associated with qualification and sale. Again, because of the
minimal price distinction between market rate and affordable units, these
requirements would make it difficult for the Developer to find appropriate buyers
for the Inclusionary Units;
4. Furthermore, the location of the Project is not in close proximity to shopping,
transportation, and other amenities that are important factors for the buyers of
affordable units. Therefore, the units that would be produced with the in-lieu fees
are likely to be more suitable for potential buyers than would be affordable units
within the Project.
WHEREAS, the Project has been found to be Categorically Exempt from the California
Environmental Quality Act (CEQA); and
WHEREAS, a Staff Report setting forth in further detail the background and terms of the
proposed Amended and Restated Agreement has been submitted to the City Council for
consideration of this request.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby approve the First Amendment to the Affordable Housing Agreement for the Construction
of Inclusionary Units and the Payment of Fees In-Lieu of Constructing Certain Affordable
Ownership Units between the City of Dublin and Standard Pacific Corp, Inc., as described in
Exhibit A ("Amendment").
BE IT FURTHER RESOLVED that the City Manager is authorized and directed to
execute the Amendment and such other documents, and to take such other and further action,
as necessary and appropriate to carry out the Intent of this Resolution.
BE IT FURTHER RESOLVED that the Community Development Director is authorized
and directed to modify the approved Planned Development Zoning and Site Development
Review by administrative action to maintain consistency between the Amendment approved
Planned Development Zoning and Site Development Review.
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PASSED, APPROVED AND ADOPTED this 17th day of September 2013, by the
following vote:
AYES: Councilmembers Biddle, Gupta, Hart, Haubert, and Mayor Sbranti
NOES: None
ABSENT: None
ABSTAIN: None
\ri(
Mayor
ATTEST:
City Clerk
Reso No. 150-13,Adopted 9-17-13, Item 4.2 Page 3 of 3
RECORDING REQUESTED BY:
CITY OF DUBLIN
When Recorded Mail To:
City Clerk
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Fee Waived per GC 27383
Space above this line for Recorder's use
FIRST AMENDMENT TO
AFFORDABLE HOUSING AGREEMENT FOR THE CONSTRUCTION OF
INCLUSIONARY UNITS AND THE PAYMENT OF FEES IN-LIEU OF
CONSTRUCTING CERTAIN AFFORDABLE OWNERSHIP UNITS
PA 04-16, Standard Pacific Corp., a Delaware Corporation
(Fallon Crossing Project)
This First Amendment("Amendment")to the Affordable Housing Agreement, dated
January 10, 2012, for the Fallon Crossing Project("Agreement") is entered into this 17th
day of September, 2013 ("Effective Date")by and between the City of Dublin, a municipal
corporation(the"City"), and Standard Pacific Corp., a Delaware corporation(the
"Developer").
Recitals
1. Developer is the owner of portions of real property, consisting of
approximately 67.7 acres of land, located in the City of Dublin, County of Alameda, State of
California, generally located northeast of the Tassajara Road and Fallon Road intersection,
and more particularly described in Exhibit 1 attached hereto and incorporated into this
Agreement by reference(the"Property").
2. Chapter 8.68 of the Dublin Zoning Ordinance("Ordinance")requires
developers of residential projects consisting of 20 units or more to set aside 12.5%of the
units in the project as Inclusionary Units and to execute and record an affordable housing
agreement against the project property prior to the issuance of building permits.
3. Developer had entered into the Agreement so as to document its means of
complying with the Ordinance. In particular,the Agreement provided that Developer would
satisfy its obligation to produce 13 affordable units on the property by:
—1— Amendment to Affordable Housing Agreement
Fallon Crossing
a. Paying fees in-lieu of construction to satisfy the obligations for 5 units.
b. Constructing 8 inclusionary units, 2 very low-income units, 2 low-
income units, and 4 moderate-income units.
4. On September 17, 2013,the City Council approved the Developer's proposed
alternate method of complying with the Ordinance.
5. The purpose of this Amendment is to set forth the manner by which Developer
will satisfy its inclusionary housing obligations for Inclusionary Units pursuant to the
Ordinance.
NOW, THEREFORE,in satisfaction of the requirements of Chapter 8.68 of the
Dublin Municipal Code, and in consideration of the City's approval of the project, Developer
and City for themselves and their respective successors and assigns hereby amend the
Agreement as follows:
Section 1. Paragraph 2 of the Agreement is amended to read as follows:
"3. Developer's Compliance with Affordable Housing Obligation.
Developer will satisfy its obligation by paying in-lieu fees for thirteen(13)units.
Section 2. Paragraph 3 of the Agreement is amended to read as follows:
"3. In-Lieu Fees.Developer will satisfy its obligation for eight(8)
Inclusionary Units by paying fees in-lieu of constructing said units. Accordingly,
Developer will pay $107,000 per unit, a total of$856,000 to fulfill the obligation to
construct Inclusionary Units required by the Ordinance. The entirety of the fees shall
have been paid prior to the issuance of any further city approvals for the project, such
as occupancy authorizations or building permits, and in no event later than October
18, 2013. Developer and City both acknowledge that as of the date of execution of
the First Amendment to the Agreement, the Developer had previously satisfied the
obligation to pay fees in-lieu of five(5)units on January 11, 2012 when the City
received payments totaling $519,440 (or$103,888 per unit)."
Section 3. Paragraphs 4 and 5 of the Agreement are deleted in their entirety.
Section 4. Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be an original and all of which together shall constitute one
agreement.
Section S. Severability. If any provision of this Agreement is held invalid,
illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and
enforceability of the remaining provisions shall not be affected or impaired thereby.
—2— Amendment to Affordable Housing Agreement
Fallon Crossing
Section 6. Entire Agreement. The Agreement,together with Exhibits and this
Amendment contain the entire understanding between the parties relating to the transaction
contemplated hereby, and all prior or contemporaneous agreements, understandings,
representations and statements, oral or written, are merged herein and shall be of no further
force or effect. No provision of this Agreement may be amended, waived, or added except
by an instrument in writing signed by the Parties hereto. The exhibits attached hereto are
incorporated herein by this reference.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed as of the date and year first above written.
CITY OF DUBLIN
By:
City Manager
Attest:
City Clerk
STANDARD PACIFIC CORP.,
a Delaware corporation
By:
Name:
Its:
2115383.1
—3— Amendment to Affordable Housing Agreement
Fallon Crossing