Loading...
HomeMy WebLinkAbout8.3 Bay West Development f • 19 O`er STAFF REPORT CITY CLERK 0.j CITY COUNCIL File #' IIQa-4 5 DATE: September 2, 2014 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: Authorization of Units from the Development Pool and Related Community Benefit Agreement Deal Points with Bay West Development Prepared by Lori Taylor, Economic Development Director and Public Information Officer EXECUTIVE SUMMARY: Bay West Development seeks units from the Downtown Dublin Specific Plan Development Pool in order to develop an already approved project on the former Crown Chevrolet site. Staff will present the negotiated deal points to be included in the Community Benefit Agreement and is requesting authorization from the City Council to proceed in its preparation. FINANCIAL IMPACT: None. RECOMMENDATION: Staff recommends that the City Council authorize preparation of a Community Benefit Agreement that includes the negotiated deal points summarized in this report. } - _ Submitted y - Reviewed By Economic Development Director/ Assistant City Manager Public Information Officer DESCRIPTION: Bay West Development, a commercial and mixed use development company, has optioned the rights to develop the approved mixed-use project on the former Crown Chevrolet site at the corner of Dublin Blvd. and Golden Gate Drive. The parcel includes two sites — a 4.97-acre site to the north and a 1.37-acre site south of St. Patrick Way. This strategic Downtown location includes a residential mixed-use project with site development review approval to develop 314 apartment units on the north 4.97-acre site, along with approximately 17,000 of retail space on the first floor facing towards Dublin Blvd. On the southern 1.37-acre piece, an affordable housing project for veterans and their families would Page 1 of 3 ITEM NO. 8.3 { provide up to 72 units. Eden Housing, a local non - profit housing developer and a partner on two other affordable projects — Wicklow Square and Emerald Vista — is prepared to develop the site upon selection of a new development partner and will manage over the long term. The development of veteran's housing is a key City Council Strategic Initiative. Previous to this request, the City Council approved a Community Benefit Agreement and Development Agreement (CBA/DBA) with Diamond Heights Investments IV, LLC (known as the Kingsmill Group) in January 2013. Among other things, the CBA/DA provided Kingsmill with units from the Downtown Dublin Specific Plan Development Pool to facilitate the project. Kingsmill did not obtain fee title following negotiations with the property owner and the property owner has now optioned the property to Bay West Development. The property's Site Development Review is still in effect as determined by the Community Development Director. The developer needs units from the Downtown Dublin Specific Plan Development Pool in order to proceed with this project. Projects within the Downtown Dublin Specific Plan (DDSP) require a Community Benefit Agreement between the Developer and the City. The Specific Plan identifies the number of residential units that may be constructed in the Plan area and establishes a pool of these units. A developer must request City Council authorization to pull units from this pool and must provide a benefit to the community for the use of these units. A Community Benefit Agreement is required to ensure that a benefit is provided and establishes a timeframe in which the developer must construct the units. The units are returned to the pool at the end of the established timeframe if not constructed. Bay West Development and City staff have met on several occasions to discuss the terms of the proposed Community Benefit Agreement. Key components, such as the total number of residential units, amount of commercial space and architectural look, remain consistent with the earlier project. The developer has stated it may work with Staff to upgrade the quality of the external finishes, but without changing the approved look of the project. Staff is seeking the City Council's support for the negotiated deal points between City staff and Bay West Development. Proposed Community Benefit Agreement Terms Following are the proposed negotiated deal terms with Bay West Development: • Bay West Development would receive an allocation of 314 units from the Downtown Dublin Specific Plan's Development Pool to construct the project which will include 17,000 sf of ground floor commercial development. • Under the City's Inclusionary Zoning Regulations, the project proposed by Bay West Development would require the construction of 39 units of affordable housing (12.5 %). This requirement would be satisfied, in part, by land dedication (Parcel B, 1.37 acres) to the City or an affordable housing developer, Eden Housing. The City Council would waive portions of the Inclusionary Zoning Regulations relating to Section 8.68.040 of the Dublin Zoning Code. This waiver would alleviate portions of the land dedication requirement including the requirement to pay development impact fees and construct off - site improvements for the project associated with the land dedication. Page 2 of 3 • The City or affordable builder (Eden) would have the ability to construct up to 72 affordable units on the site. The City will allocate up to 72 residential units from the Development Pool for Parcel B. • The transfer of the ownership of Parcel B to the City or affordable housing developer will serve as the Community Benefit required to be provided in exchange for the allocation of units from the Development Pool. • Excess affordable housing credits (created by building a project in excess of the 39 units required) would be controlled by the owner of the affordable housing site (City or Eden Housing). The value created by these credits may be sold to help off -set the costs of the off -site work that Eden or the City is likely to incur. • The term of the units obtained from the Development Pool is two years from the City approval of project entitlements, unless extended by the City. To summarize, Staff is recommending that the City Council authorize Staff to prepare and process a Community Benefit Agreement as described in this staff report. Should the City Council authorize Staff to move forward, a Community Benefit Agreement will be formalized and will be brought to the City Council for consideration. NOTICING REQUIREMENTS /PUBLIC OUTREACH: Not applicable. ATTACHMENTS: None. Page 3 of 3