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HomeMy WebLinkAbout4.8 SB343 Community Benefit Agreement 10-07-14 SB 343 Senate Bill 343 mandates supplemental materials that have been received by the City Clerk's office that relate to an agenda item after the agenda packets have been distributed to the City Council be available to the public. The attached documents were received in the City Clerk's office after distribution of the October 7, 2014 City Council meeting agenda packet. Item 4.8 RESOLUTION NO. -14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING A COMMUNITY BENEFIT AGREEMENT BETWEEN THE CITY OF DUBLIN AND BAY-WEST-DEVELOPMENT PARTNERS IV,BWD DUBLIN LLC FOR A MIXED-USE RESIDENTIAL & RETAIL PROJECT WHEREAS, a request has been made by VBWD Dublin LLC ("Applicant") to enter into a Community Benefit Agreement with the City of Dublin for the property known as the former Crown Chevrolet site, comprised of APNs 941-1500-015-09 and 941-1500-032-02, a 6.34-acre site; and WHEREAS, the project is located within the Downtown Dublin Specific Plan area; and WHEREAS, the Applicant is proposing to construct 314 residential units with 17,000 square feet of commercial/retail space on a 4.9-acre site and a 72-unit affordable housing project with preference for households with military veterans on a 1.37-acre site within the Downtown Dublin Specific Plan area; and WHEREAS, the project is located within the Downtown Dublin Specific Plan area, which was the subject of an Environmental Impact Report (EIR), State Clearinghouse number 20100022005. The Downtown Dublin Specific Plan Final EIR was certified by City Council Resolution No. 08-11 dated February 1, 2011. Pursuant to the California Environmental Quality Act (CEQA) Guidelines section 15168, the Community Benefit Agreement is within the scope of the project analyzed in the Specific Plan EIR and no further CEQA review or document is required. A Community Benefit Agreement to allocate residential development is authorized under the DDSP. The environmental impacts of the residential development authorized by such an allocation were analyzed in the Specific Plan EIR. There is no substantial evidence in the record that any of the conditions triggering supplemental environmental review under CEQA Guidelines section 15162 exists. NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Dublin approves, and authorizes the City Manager to execute, the Community Benefit Agreement, attached hereto as Attachment 1 to Exhibit A, and titled "Community Benefit Agreement between the City of Dublin and ,BWD Dublin LLC." BE IT RESOLVED that the City Council hereby finds that the proposal by the Applicant to dedicate land (Parcel B) for the development of a 72-unit residential rental project primarily for veterans and low income households is an alternate method of complying with the Inclusionary Zoning Regulations for the 314-unit project on Parcel A that is consistent with the purposes of the Inclusionary Zoning Regulations the reasons that follow: 1. The associated Community Benefit Agreement will ensure that the dedicated land is developed with an affordable housing project that is consistent with the purposes of the Inclusionary Zoning Regulations (Chapter 8.68 of the Municipal Code). 2. The nominal price at which Parcel B will be transferred will facilitate the development of the affordable housing project. Accordingly, the City Council hereby waives the requirements of the Inclusionary Zoning Regulations as they would otherwise apply to the proposed 314-unit project on Parcel A. PASSED, APPROVED AND ADOPTED this 7th day of October, 2014 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk 2337869.1 CITY OF DUBLIN COMMUNITY BENEFIT PROGRAM AGREEMENT WITH ' - ' - BWD DUBLIN LLC This Community Benefit Program Agreement ("Agreement") is entered into on this 7th day of October 2014, by and between the City of Dublin, a municipal corporation ("City") and BWD Dublin LLC, a California limited liability company ("Developer"). City and Developer are, from time-to-time, individually referred to in this Agreement as a "Party," and are collectively referred to as "Parties." RECITALS A. On February 1, 2011, the City adopted Resolution 9-11 establishing a "Downtown Dublin Specific Plan" (the "Specific Plan"), which sets forth a comprehensive set of guiding principles, standards, and design guidelines for the implementation of future development in Downtown Dublin ("the Specific Plan Area"). B. The Specific Plan regulates the density of development allowed in the Specific Plan Area by establishing a "Base Floor Area Ratio (FAR)" for development in each of the three districts within the Specific Plan Area. C. The Specific Plan also establishes a pool of additional development potential, in the form of 2,262,540 square feet of non-residential development and 2,500 residential dwelling units (collectively the "Excess Capacity" or the "Development Pool") apportioned between the three districts in the Specific Plan Area. The Development Pool can be used by developers that wish to develop a project that exceeds the Base FAR up to a defined "Maximum FAR" and by developers that wish to develop residential dwelling units. Developers wishing to utilize said Excess Capacity must participate in the Community Development Program and enter into a Community Benefit Program Agreement with the City. D. Developer desires to develop certain real property consisting of approximately 6.43 acres of land, located in the City of Dublin, County of Alameda, State of California, which is more particularly described in Exhibit A attached hereto and incorporated by reference, and which real property is hereafter called the "Property." As shown in detail on Exhibit A, the Property is comprised of two separate but adjacent parcels: (i) "Parcel A," which consists of approximately 4.97 acres, and (ii) "Parcel B," which consists of approximately 1.37 acres. E. Developer seeks units from the Development Pool in order to construct a mixed-use project on Parcel A and Parcel B, which are the former 2324877.3 Bay West Community Benefit Agreement Page 1 of 10 Crown Chevrolet site at the corner of Dublin Boulevard and Golden Gate Drive. Developer proposes development in two separate but related project components: (i) The development of Parcel A with 314 market-rate residential rental units and approximately 17,000 square feet of general commercial uses on the first floor of the residential structure(s) along Dublin Boulevard frontage; and (ii) The development of Parcel B with approximately 72 units of affordable rental housing (collectively the "Project"). F. Developer anticipates that upon or in anticipation of receiving entitlements, it will transfer Developer's interest in Parcel B to the City or to Eden Housing Inc. a California non-profit public benefit corporation (or its controlled affiliate, or similar affordable housing provider) ("Eden" or the "Affordable Housing Developer"). G. In addition to satisfying the Project's obligations under the City's Inclusionary Zoning Regulations, the transfer of the ownership of Parcel B to the City or to Eden will serve as the Community Benefit required in exchange for the allocation of units from the Development Pool. H. City approved a Site Development Review (Planning Commission Resolution No. 13-07), premised upon the City Council's previous approval of a now-expired Community Benefit Program Agreement that this agreement replaces, which approval, together with any approvals or permits now or hereafter issued with respect to the Project are referred to as the "Project Approvals." I. The City and Developer have reached agreement with respect to the Community Benefit and desire to express herein a Community Benefit Program Agreement clearly setting forth the Community Benefit to be provided by the Developer, and the scope and nature of excess development capacity to be granted to Developer in exchange for said Community Benefit. J. The Project is located within the Downtown Specific Plan area, which was the subject of an Environmental Impact Report (EIR), State Clearinghouse number 20100022005. The Downtown Dublin Specific Plan Final EIR was certified by City Council Resolution NO. 08-11 dated February 1, 2011. Pursuant to the California Environmental Quality Act (CEQA) Guidelines section 15168, the Community Benefit Agreement is within the scope of the Project analyzed in the Specific Plan EIR and no further CEQA review or document is required. A Community Benefit Agreement to allocate residential development is authorized under the Downtown Dublin Specific Plan. The environmental impacts of the residential development authorized by such allocation were analyzed in the Specific Plan EIR. There is no substantial evidence in the record that any of the conditions triggering supplemental environmental review under CEQA Guidelines section 15162 exist. 2324877.3 Bay West Community Benefit Agreement Page 2 of 10 NOW, THEREFORE, with reference to the foregoing recitals and in consideration of the mutual promises, obligations and covenants herein contained, City and Developer agree as follows: AGREEMENT 1. Relationship of City and Developer. It is understood that this Agreement is a contract that has been negotiated and voluntarily entered into by the City and Developer and that the Developer is not an agent of the City. The City and Developer hereby renounce the existence of any form of joint venture or partnership between them, and agree that nothing contained herein or in any document executed in connection herewith shall be construed as making the City and Developer joint venturers or partners. 2. Effective Date and Term. 2.1 Effective Date. The effective date of this Agreement shall be the October 7, 2014. 2.2 Term. The term of this Agreement shall commence on the Effective Date and shall extend until the earlier of the following: 1) the Developer has provided the Community Benefit to the City as provided in Section 3 of this Agreement or 2) the Residential Allocation Term (as defined in Section 3.6) expires without any building permits having been issued . 3. Community Benefit to Be Provided By Developer; Affordable Housing. 3.1 General. Developer shall provide the following Community Benefit to the City: the Developer will transfer ownership of Parcel B to the City or to the Affordable Housing Developer (the "Community Benefit"). The Developer shall provide the Community Benefit no later than the time of issuance of the first building permit for the Project. In no event shall the City be required to issue a building permit unless the Community Benefit has been provided to the City. 3.2 Compliance with Inclusionary Zoning Regulations for Development on Parcel A. Chapter 8.68 of the Dublin Municipal Code, known as the Inclusionary Zoning Regulations ("the Regulations"), requires that residential projects with 20 or more units contain 12.5% affordable units as defined. Forty percent of a development's obligation may be satisfied through the payment of a fee in lieu of construction, and the remainder of the obligation (7.5% of the units in the project) must be satisfied through the on-site or off-site production of the units, land dedication, or the use of credits. Under the Regulations, if Developer constructs the maximum number of units on Parcel A contemplated by this Agreement, its affordable housing requirement would be 39 units. Developer in- 2324877.3 Bay West Community Benefit Agreement Page 3 of 10 tends to fully satisfy its obligations by way of the nominal-price sale of land required by this Section 3. The City agrees that this nominal-price sale shall be deemed to satisfy Developer's affordable housing obligations under the Inclusionary Zoning Regulations for the development of up to 314 units on Parcel A. More specifically, pursuant to section 8.68.040.0 of the Dublin Municipal Code, the Developer's affordable unit obligation with respect to the residential development of up to 314 market-rate units proposed on Parcel A will be satisfied by virtue of the proposed nominal-price sale. Any development on Parcel A in excess of 314 units will be subject to the requirements of Chapter 8.68 of the Dublin Municipal Code. The City Council has separately made the findings required by Section 8.68.040.0 or has waived such requirements in whole or part under Section 8.68.040 E. 3.3 Treatment of Affordable Unit Credits Created by Development on Parcel B. The parties agree that any "affordable unit credits" created by virtue of the construction of affordable housing on Parcel B will be controlled by the owner of the affordable housing site (the City or the Affordable Housing Developer). The value created by these credits may be sold to help off-set the costs of the off-site work that the City or the Affordable Housing Developer is likely to incur. 3.4 Community Benefit From Affordable Housing. City recognizes that Developer's sale of Parcel B for a nominal price to Eden for the use described above is a qualifying "Community Benefit" under the Specific Plan, as it will assist Eden, or its successor, to pursue successfully the development of affordable rental housing units primarily for veterans and low income households on Parcel B. The Dublin community and the Specific Plan Area will benefit significantly from the provision of such affordable housing, as set forth in greater detail in the Dublin General Plan's Housing Element. No other Community Benefit payments or requirements shall be imposed on Developer in exchange for the residential allocations. 3.5 Grant of Residential Allocations. As of the Effective Date, as defined in Section 2.1, and for the term specified in Section 2.2, City shall grant the following Residential Allocations out of the Residential Allocation Pool established by the Specific Plan. City may make the right to construct residential units under the Project Approvals conditional upon the nominal sale of Parcel B. The term "Residential Allocation" as used in the Agreement means an allocation of the right to construct residential units from the Residential Allocation Pool established by the Specific Plan. Upon the transfer of ownership described in section 3.1, the City shall grant the following Residential Allocations: 2324877.3 Bay West Community Benefit Agreement Page 4 of 10 3.5.1 Parcel A. Parcel A shall receive an allocation of the residential units proposed thereon in the Project Approvals, not to exceed 314. 3.5.2 Parcel B. shall receive an allocation of residential units proposed thereon in the Project Approvals, not to exceed 72. 3.6 Residential Allocation Term. Once granted, the "Residential Allocations" provided by the Community Benefit provisions of this Agreement shall extend until two (2) years from the Effective Date ("the Residential Allocation Term"). It is acknowledged that Developer shall not have a right to the Residential Allocations until such time as it has transferred Parcel B in accordance with Section 3. Notwithstanding the foregoing, if a building permit for a residential structure has been issued by City, and if the construction of a structure related to residential uses has been commenced on Parcel A and/or Parcel B within said two-year Residential Allocation Term, then the Residential Allocation Term for the development on the particular parcel for which the permit was issued shall be extended for the life of the building permit and any extensions thereto. This section 3.6 shall survive termination of the Agreement. 2324877.3 Bay West Community Benefit Agreement Page 5 of 10 3.7 Reservation of Excess Capacity. During the Residential Allocation Term, and only so long as each of the Project Approvals remain in effect, City shall reserve 386 units for Developer's use. If Developer fails to provide the Community Benefit during the term of this Agreement, or if Developer provides the Community Benefit but fails to obtain building permits for all or a portion of the units within the Residential Allocation Term, the Excess Capacity reserved for Developer shall revert to the pool maintained by the City and will be available to other developers on a "first come, first served" basis. 3.8 Limitation on City's Obligation. This Agreement shall not be construed to require the City to issue any Project Approval to the Developer. City is solely required to reserve the Excess Capacity identified in Section 3.6 of this Agreement. Other than this obligation, nothing in this Agreement shall prevent the City from denying or conditionally approving any subsequent land use permit or authorization for the Project. All of City's applicable ordinances, resolutions, rules, regulations and official policies shall apply to the Project including, but not limited to, those governing the permitted uses of the Property, design and construction of the Project, density and intensity of use of the Project, and the maximum height, bulk and size of proposed buildings within the Project. 4. Amendment or Cancellation. 4.1 Amendment by Mutual Consent. This Agreement may be amended in writing from time to time by mutual consent of the parties. 5. Severability. The unenforceability, invalidity or illegality of any provisions, covenant, condition or term of this Agreement shall not render the other provisions unenforceable, invalid or illegal. 6. Attorneys' Fees and Costs. If the City or Developer initiates any action at law or in equity to enforce or interpret the terms and conditions of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs in addition to any other relief to which it may otherwise be entitled. If any person or entity not a party to this Agreement initiates an action at law or in equity to challenge the validity of any provision of this Agreement, the parties shall cooperate in defending such action. Developer shall bear its own costs of defense as a real party in interest in any such action, and shall reimburse the City for all reasonable court costs and attorneys' fees expended by the City in defense of any such action or other proceeding. 2324877.3 Bay West Community Benefit Agreement Page 6 of 10 7. Assignment. Developer may wish to sell, transfer or assign all or portions of the Property to other developers (each such other developer is referred to as a "Transferee"). In connection with any such sale, transfer or assignment to a Transferee, Developer may sell, transfer or assign to such Transferee some or all of the Excess Capacity reserved under this Agreement, so long as said transfer would not result in development of the Property in excess of the Maximum FAR. No such transfer, sale or assignment of Developer's rights, interests and obligations hereunder shall occur without prior written approval by the City, which shall not be unreasonably withheld or delayed. The City Manager shall consider and decide on any transfer, sale or assignment within ten (10) days after Developer's notice, provided all necessary documents, certifications and other information are provided to the City Manager to enable the City Manager to determine whether the obligations incurred by Developer pursuant to this Agreement will be fully satisfied, if the proposed sale,transfer or assignment is approved. 8. Notices. All notices required to be given to City under this Agreement shall be in writing and shall be addressed as follows: City Manager City of Dublin 100 Civic Plaza Dublin, CA 94568 FAX No. (925) 833-6651 All notices required to be given to Developer under this Agreement shall be in writing and shall be addressed as follows: BWD Dublin LLC 2 Henry Adams Street, Suite 450 San Francisco, CA 94103 Fax: 415-552-7760 2324877.3 Bay West Community Benefit Agreement Page 7 of 10 9. Agreement is Entire Understanding. This Agreement constitutes the entire understanding and agreement of the parties, with respect to the subject matter hereof. 10. Legal Authority. Each individual executing this Agreement on behalf of Developer hereby represents and warrants that he or she has full power and authority under the entity's governing documents to execute and deliver this Agreement in the name of and on behalf of the company and to cause the entity to perform its obligations under this Agreement. [EXECUTION PAGE IMMEDIATELY FOLLOWS] 2324877.3 Bay West Community Benefit Agreement Page 8 of 10 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year first above written. CITY OF DUBLIN BAY WEST DEVELOPMENT PARTNERS IVBWD DUBLIN; LLC By: Christopher L. Foss, City Manager By: Its: Attest: Caroline Soto, City Clerk Approved as to form John Bakker, City Attorney 2324877.3 Bay West Community Benefit Agreement Page 9 of 10 .�.� .. EXHIBIT A (Attach site description) 2324877.3 Bay West Community Benefit Agreement Page 10 of 10