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HomeMy WebLinkAbout8.1 Willows Housing Agmt CITY CLERK File#D~ wOD -3D AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 3,2008 SUBJECT: ATTACHMENTS: RECOMMENDATI~ ~ Amendment to the Affordable Housing Agreement to convert 2 affordable units (Lots 3 and 33) to market rate in exchange for payment of in-lieu fees at the Willows at San Ramon Village Plaza (P A 02-063 & 06-034) Report Prepared by Marnie R. Nuccio, Senior Planner and Jeri Ram, AICP, Community Development Director 1) Resolution approving an amendment to the Affordable Housing Agreement for Willows at San Ramon Village Plaza to convert 2 affordable units (Lots 3 and 33) to market rate in exchange for payment of in-lieu fees in the amount of $178,824, with the amended Affordable Housing Agreement attached as Exhibit A. Applicant's Request Letter. Map depicting existing location of affordable units and proposed conversion of affordable units to market rate. 2) 3) 1) Adopt a Resolution approving an amendment to the Affordable Housing Agreement for the Willows at San Ramon Village Plaza to convert 2 affordable units (Lots 3 and 33) to market rate in exchange for payment of in-lieu fees in the amount of $178,824; Direct the City Manager to execute an amendment to the Affordable Housing Agreement; and, Direct the Community Development Director to amend the Development Plan for the Planned Development Zoning District in accordance with the Dublin Municipal Code. 2) 3) FINANCIAL STATEMENT: Braddock and Logan would pay in-lieu fees to the City in the amount of $178,824. COPY TO: Jeff Lawrence, Braddock & Logan Project Planner File Page 1 of3 G:\PA#\2006\06-034 Willows PD Amendment\AHA Amend #2\CCSR AHA Amend #2 06-03-08.doc ~.I 0' /'\ Iii) ~ f;,,_ _~ ITEM NO. DESCRIPTION: Background In May 2004, the City Council approved the redevelopment of the San Ramon Village Plaza Shopping Center which included demolition of a portion of the existing commercial building to allow for the construction of 56 townhouse units and the remodeling ofthe remaining 14,000! square foot commercial building. The project approvals included: 1) a General Plan Amendment; 2) a Planned Development Rezone; 3) a Mitigated Negative Declaration and Mitigation Monitoring Program; 4) Site Development Review; and, 4) a Vesting Tentative Map. The Project site is 4.62 acres and is located east of San Ramon Road between Alcosta Boulevard to the north and Bellina Street to the south; Interstate 680 is to the west. In July 2006, the City Council approved an amendment to the Planned Development Zoning District to modify the Phasing Plan for the project. The Phasing Plan, as originally adopted, required the commercial remodel and the construction of 42 residential units to be accomplished as part of Phase 1 of the project and the construction of the remaining 14 residential units as part of Phase 2. Braddock & Logan purchased the residential portion of the project from Bancor Properties and proceeded with development in advance of the commercial remodel project. Subsequently, Braddock and Logan was granted an amendment to the Phasing Plan to allow for the construction of the residential project to proceed separately from the commercial remodel. In October 2006, the City Council approved an amendment to the Affordable Housing Agreement to modify the location and phasing of affordable units within the residential portion of the project. Of the 7 required affordable units, 5 were approved to be relocated to larger units with upgraded features such as custom paint colors and security systems. Also, by relocating these 5 affordable units, they became available for purchase in earlier phases of the project. The City Council directed Staff to process an administrative amendment to the Development Plan for the Planned Development Zoning District identifying the revised location and phasing of the required affordable units as well as executing an amendment to the Affordable Housing Agreement to ensure the documents remained consistent with one another. Construction of the residential project was completed in January 2008; construction of the commercial remodel was completed in May 2008. On May 6, 2008, Braddock and Logan submitted a request for a second amendment to the Affordable Housing Agreement. The proposed amendment would convert 2 of the affordable units (Lots 3 and 33) to market rate units in exchange for payment of in-lieu fees in the amount of $178,824. ANALYSIS: In accordance with the Inclusionary Zoning Ordinance, Braddock and Logan is required to provide 12.5% of the total number of units as affordable. The project consists of 56 units of which 7 are required to be affordable. The Inclusionary Zoning Ordinance further provides that all affordable units shall be constructed unless an exception is granted by the City Council. Upon request by an Applicant, up to 40% of the required affordable units could be satisfied with the payment of in-lieu fees. If such exception had been requested and granted during the initial stages of the project, Braddock and Logan could have constructed 4 affordable units and paid in-lieu fees for the remaining 3 units. Braddock and Logan opted to construct all 7 affordable units and to date has sold 5 of those units. Despite diligent efforts to market and sell the remaining 2 affordable units, Braddock and Logan has been unable to do so. As a result, Braddock and Logan is requesting that the City Council consider granting an Page 2 of3 exception, as set forth in the Inclusionary Zoning Ordinance, to allow the remaining 2 units to be converted to market rate in exchange for payment of in-lieu fees in the amount of $178,824. If the City Council approves the request and amends the Affordable Housing Agreement, an amendment to the Development Plan for the Planned Development Zoning District is also needed in order to maintain consistency between the Affordable Housing Agreement and the Planned Development Zoning District. The Dublin Zoning Ordinance allows the Community Development Director to grant an amendment to an adopted Planning Development Zoning District as an administrative action upon finding that "... the amendment substantially complies with and does not materially change the provisions or intent of the adopted Planned Development Zoning District." CONCLUSION: Braddock and Logan is requesting an amendment to their Affordable Housing Agreement for the Willows at San Ramon Village Plaza to convert 2 affordable units (Lots 3 and 33) to market rate in exchange for payment of in-lieu fees in the amount of $178,824. RECOMMENDATION: Staff recommends that the City Council, 1) Adopt a Resolution approving an amendment to the Affordable Housing Agreement for the Willows at San Ramon Village Plaza to convert 2 affordable units (Lots 3 and 33) to market rate in exchange for payment of in-lieu fees in the amount of $178,824; 2) Direct the City Manager to execute an amendment to the Affordable Housing Agreement; and, 3) Direct the Community Development Director to amend the Development Plan for the Planned Development Zoning District in accordance with the Dublin Municipal Code. Page 3 of3 'i 7 RESOLUTION NO. - 08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING AN AMENDMENT TO THE AFFORDABLE HOUSING AGREEMENT FOR WILLOWS AT SAN RAMON VILLAGE PLAZA TO CONVERT 2 AFFORDABLE UNITS (LOTS 3 AND 33) TO MARKET RATE IN EXCHANGE FOR PAYMENT OF IN-LIEU FEES (PA 02-063 AND 06-034) WHEREAS, Braddock and Logan has requested an amendment to the Affordable Housing Agreement for Willows at San Ramon Village Plaza to convert 2 affordable units to market rate in exchange for payment of in-lieu fees; and WHEREAS, the City and Braddock and Logan are parties to an Affordable Housing Agreement for the Construction of Inclusionary Units, dated July 18, 2005 ("the Agreement"), wherein Braddock and Logan agreed to construct 7 affordable units pursuant to the requirements of Chapter 8.68 of the Dublin Municipal Code, the Inclusionary Zoning Regulations ("the Regulations"); and WHEREAS, the Agreement specified the location of the required 7 affordable units and the phases of the Project within which the affordable units must be completed; and WHEREAS, by an amendment dated October 3, 2006 ("the First Amendment"), the parties amended the Agreement to alter the location of 5 of the affordable units and consequently the phasing of the construction of the units; and WHEREAS, Braddock and Logan has now constructed all of the 7 affordable units it promised to construct, and has sold 5 of the 7 affordable units; WHEREAS, despite Braddock and Logan's diligent efforts they have been unable to sell the remaining 2 affordable units; and WHEREAS, under the Inclusionary Zoning Regulations, the minimum requirements would have allowed Braddock and Logan to construct 4 of 7 affordable units and pay fees in lieu of constructing 3 of the 7 affordable units to satisfy its obligations under the Regulations; and WHEREAS, given Braddock and Logan's diligent efforts to sell the remaining affordable units and the fact that Braddock and Logan could have, in the first instance, paid in-lieu fees to satisfy the remaining 2-unit obligation, the City is willing to agree to an amendment to the Agreement that permits developer to satisfy the remaining obligation by paying an in-lieu fee for the remaining 2 units; and WHEREAS, the Project has been found to be Categorically Exempt from the California Environmental Quality Act (CEQA); and WHEREAS, a Staff Report was submitted to the City Council for consideration of the request; and - 1 - JJ-e-vrrn. J 0 J:3 t08 nJ:1 ATTACHMENT 1 ~ G:\PA#\2006\06-034 Willows PD Amendment\AHA Amend #2\CC Reso 06.03.08.doc c?~7 WHEREAS, the City Council did use its independent judgment and considered all said reports, recommendations and testimony. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve an amendment to the Affordable Housing Agreement for the Willows at San Ramon Village Plaza to convert 2 affordable units (Lots 3 and 33) to market rate in exchange for payment of in- lieu fees in the amount of $178,824, directs the City Manager to execute an amendment to the Affordable Housing Agreement and directs the Community Development Director to amend the Development Plan for the Planned Development Zoning District in accordance with the Dublin Municipal Code. PASSED, APPROVED AND ADOPTED this 3rd day of June 2008, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk - 2 - G:\PA#\2006\06-034 Willows PD Amendment\AHA Amend #2\CC Reso 06.03.08.doc 2Df;1 AMENDMENT NO.2 TO AFFORDABLE HOUSING AGREEMENT FOR THE CONSTRUCTION OF INCLUSIONARY UNITS P A 02-063, Braddock & Logan, Group III, L.P., a California Limited Partnership San Ramon Village Plaza THIS SECOND AMENDMENT ("the Second Amendment") is entered into this 3rd day of June, 2008 by and between the City of Dublin ("the City") and Braddock & Logan, Group III, L.P., a California Limited Partnership ("the Developer"). The City and the Developer are referred to collectively as the Parties. RECITALS 1. The City and the Developer are parties to that certain Affordable Housing Agreement for the Construction of Inclusionary Units, dated July 18,2005 ("the Agreement"), wherein developer agreed to construct 7 inclusionary units pursuant to the requirements of Chapter 8.68 of the Dublin Municipal Code, the Inclusionary Zoning Regulations ("the Regulations"). 2. The Agreement specified the location of those 7 inclusionary units and the phases of the Project within which the inclusionary units must be completed. 3. By an amendment dated October 3,2006 ("the First Amendment"), the parties amended the Agreement to alter the location of 5 of the inclusionary units and consequently the phasing of the construction of the units. 4. Developer has now constructed all of the 7 inclusionary units it promised to construct, and has sold 5 of the 7 inclusionary units; but, despite its diligent efforts, Developer has been unable to sell the remaining 2 inclusionary units. 5. The minimum requirements of the City's Inclusionary Zoning Ordinance would have required the Developer to construct 4 of the 7 inclusionary units and to pay fees in lieu of constructing 3 of the 7 inclusionary units necessary to satisfy its obligations under the Regulations. 6. Given Developer's diligent efforts to sell the remaining inclusionary units and the fact that Developer could have, in the first instance, paid inclusionary fees to satisfy the remaining 2- unit obligation, the City is willing to agree to an amendment to the Agreement that permits developer to satisfy the remaining obligation by paying a fee in lieu of construction for the remaining 2 units. NOW, THEREFORE, Developer and City for themselves and their respective successors and assigns hereby agree as follows: A. Payment of Fees In Lieu of Construction to SatisfY Remaining Obligations. Notwithstanding anything to the contrary in the Agreement or the First Amendment, the parties 1 Amendment No.2 Affordable Housing Agreement PA 02-063, San Ramon Village Plaza DRAFT: May 22, 2008 EXHIBIT A TO ATTACHMENT 1 tt~1 hereby agree that Developer's remaining inclusionary housing obligation under the Agreement shall be deemed satisfied by its payment of fees in lieu of construction in accordance with this paragraph. Currently with its execution of this agreement, Developer has presented $178,824 to the City, which amount is equal to the fee in lieu of construction of 2 inclusionary units under Resolution No. 56-02. B. Satisfaction. The City acknowledges that Developer has satisfied all of its obligations under the Agreement, as amended, and that therefore pursuant to Section 6 of the Agreement the Agreement is terminated and no longer effective. Upon written request by Developer, the City Manager shall execute such documents as may be required by a title company to remove from the record title to the Property the previously recorded memoranda of agreement providing notice of the existence ofthe Agreement and the First Amendment. C. All other provisions of the Agreement shall remain in full force and effect. 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 Dated: By: City Manager Attest: City Clerk BRADDOCK & LOGAN, Group III, L.P., a California Limited Partnership By: Braddock & Logan III, Inc., Its General Partner Dated: By: Joe Raphel Its: President 2 Amendment No.2 Affordable Housing Agreement PA 02-063, San Ramon Village Plaza DRAFT: May 22, 2008 !?~7 EXHIBIT A Property Description Portions of Lots 1 and 3 as shown on Tract Map 7437 for condominium purposes, recorded September 27,2005 in Book 285 of Maps, pages 56-61 in the Office of the Alameda County Recorder and further known as Unit 3 of Lot 3 and Unit 33 of Lot 1. Assessor Parcel Numbers 941-2829-006 and 941-2829-007 (portions) 3 Amendment No.2 Affordable Housing Agreement PA 02-063, San Ramon Village Plaza DRAFT: May 22, 2008 c;, 1/ Jll~ BRADDOCK & LOGAN SERVICES, INC. BUILDERS - DEVELOPERS ESTABLISHED 1947 P. O. BOX 5300 DANVILLE. CALIFORNIA 94526-1076 TELEPHONE (925) 736-4000 FACSIMILE (925) 648-5700 May 6, 2008 J eri Ram Community Development Director City of Dublin 100 Civic Plaza Dublin, CA 94568 Re: Amendment to Willows Affordable A2reement Dear Jeri: Per our conversation, Braddock and Logan is requesting to remove Lot 3 and Lot 33 from the Affordable Agreement associated with the Braddock and Logan project known as the Willows. The Affordable Agreement had Braddock and Logan providing 12.5% of the total units as affordable. We have been successful in selling all of the affordable units but two, Lot 3 and Lot 33. These units have been completed for 18 months, and we have held seminars and worked with staff with no success. As such, Braddock and Logan would like to pay the In Lieu Fee on these two remaining units and convert them to market rate. Sincerely, Jeff Lawrence Vice President JL/n RECEIVED MAY 0 8 2008 DUBLIN PLANNING Attachment 2 .1 .!:/ .t' / i1 :: j I~ ':.. j /; If / ,f l// /.: :' .~; //1/ .1/ ! .t~: i/l . ;. .. ,f :I' ;; ,. {I ( i:' J; ) !, > ...... ...... ~ ~ =- 3 ~ = ...... w ;' i !; ; ! ;~' : " ' /1 ~. ,i' f ... :' F I!: {, I :1 I .1" .' /' j I ;'i f :: ,1"' / ,1=' ;' l: : :. .~~ " . .;- / ( :' !; ;. ------- -- ~ EXISTING LOCATION OF AFFORDABLE UNITS y ;: . PROPOSED CONVERSION OF AFFORDABLE UNITS TO MARKET RATE fi~ /.-- -'- t~~\\':\ ':\ ':\ \~\ ,> ~\ \\ ,> :\ \"\.) ::::::t' ,. .IN ' -.:' .:. ::::: =fli Iti ' --- ~ 1'0' . J1' ' ! ' / / ' .. / I ' I.. ;"\ - ..... l' A-'t-.. . I if / I .I; .I.', / ; /.,''/ I,:', ._.- 1- fl'" ~",' ; ~ ,!.y...../....;../. /",,"-1'>, COMlJ6!ciAL A"[~ -.Y .' I.~} , Ii', .. ,1 " ,(TO S{ R(CO~SI"udED sr on:sj: . Ii'l \t.', ';, '/' lLJ! I~.! '-': : ' I J , . , " L. ..._.~ lD :' . ~ ~ =lr. 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