Loading...
HomeMy WebLinkAbout4.9 Regional Street Residential Project Community Benefit Program Agreement (PLPA-2021-00035)STAFF REPORT CITY COUNCIL Page 1 of 5 Agenda Item 4.9 DATE:December 7, 2021 TO:Honorable Mayor and City Councilmembers FROM:Linda Smith, City Manager SUBJECT:Regional Street Residential Project Community Benefit Program Agreement (PLPA-2021-00035)Prepared by:Kristie Wheeler, Assistant Community Development Directorand Hazel L. Wetherford, Economic Development Director EXECUTIVE SUMMARY:The City Council will consider approval of a Community Benefit Program Agreement with Eden Housing’s controlled affiliate Corona/Ely Ranch, Inc. for the development of a 113-unit affordable housing project on a 1.33-acre site located at 6541-6543 Regional Street west of the West Dublin/Pleasanton BART Station within the Downtown Dublin Specific Plan Transit-Oriented District. A Community Benefit Program Agreement is required to allocate units from the Downtown Dublin Specific Plan Development Pool. The Site Development Review Permit for the project was approved by the Planning Commission on November 23, 2021, and that approval is contingent upon approval of a Community Benefit Program Agreement by the City Council. STAFF RECOMMENDATION:Adopt the Resolution Approving the Community Benefit Program Agreement Between the City of Dublin and Corona/Ely Ranch, Inc. FINANCIAL IMPACT:Funding to support construction of the proposed affordable housing project include a Local Housing Trust Fund (LHTF) grant awarded to the project in the amount of $3,333,333 from the California Department of Housing and Community Development (HCD). Matching funds requiredby the grant include the 1.33-acre site, valued at approximately $5 million, plus $5 million from the Alameda County Measure A-1 Bond Fund. 200 Page 2 of 5 DESCRIPTION:BackgroundEden Housing proposes to develop a 1.33-acre site that is currently occupied by a one-story commercial building. The site is located at the corner of Regional Street and the future extension of St. Patrick Way west of the West Dublin/ Pleasanton BART station at 6541-6543 Regional Streetas shown in Figure 1. The property is bound by commercial uses and I-580 to the south, the future 499-unit Avalon West project (formerly the St. Patrick Way Residential project) to the east, the future extension of St. Patrick Way and commercial uses to the north, and Regional Street and commercial uses to the west.Figure 1. Location Map The project site is located in the Transit-Oriented District of the Downtown Dublin Specific Plan (DDSP) as shown in Figure 2. SUBJECT PROPERTY 201 Page 3 of 5 Figure 2. Transit-Oriented District/Vicinity Map The DDSP identifies a pool of 2,500 residential units that may be constructed in the DDSP area. As part of the proposed project, the applicant is required to enter into a Community Benefit Program Agreement (CBA) in exchange for using units from the Development Pool. The CBA is subject to review and approval by the City Council. Since the establishment of the pool, 783 units have been constructed, 799 units have been approved, and 114 units have been reserved. There are 804units remaining in this pool as shown in Table 1 below.Table 1. DDSP Residential Development PoolProjectAddress Units StatusTotal Units in Development Pool 2,500Connolly Station 7550 St. Patrick Way 309 Constructed Aster (Bay West) 7544 Dublin Blvd. 313 Constructed Valor Crossing (Eden) 6707 Golden Gate Dr. 66 Constructed The Perch (Trumark Homes)7144 Regional St. 60 ConstructedAvesta Development 7601 Amador Valley Blvd. 35 ConstructedSt. Patrick Way 6700 St. Patrick Way 499 Approved 2018*Amador Station (BRIDGE Housing)Golden Gate Drive 300 Approved August 2021 Regional Street (proposed project) 6543 Regional Street 114 Reserved July 2020 Total Reserved Units 1,696Remaining Units 804*Building permit currently under review and expected to be issued before the end of the year.On July 21, 2020, in conjunction with authorizing the City Manager to submit a LHTF grant application to HCD for the proposed project, the City Council reserved up to 114 residential units 202 Page 4 of 5 from the DDSP Development Pool and directed Staff to issue a Letter of Intent to Eden Housing to provide matching funds that were required to receive the grant. The matching funds identified in the grant application include the 1.33-acre site, valued at approximately $5 million, plus $5 million from the Alameda County Measure A-1 Bond.The City Council directed Staff to proceed with processing the project entitlements for consideration by the Planning Commission and prepare a Community Benefit Program Agreement for the City Council to consider.Upon submittal of the Site Development Review Permit application, Eden Housing reduced the number of units to 113. On November 23, 2021, the Planning Commission approved the Site Development Review Permit, pending approval of the Community Benefit Program Agreement by the City Council. The Planning Commission Staff Report is included as Attachment 3. ProposalEden Housing is seeking 113 units from the residential development pool. In exchange for this allocation, Eden has agreed to provide the following benefit to the City, which was outlined in the July 21, 2020 City Council Staff Report (Attachment 4), and is memorialized in the Community Benefit Program Agreement under consideration by the City Council: 100% of the project units (with the exception of a manager’s units) would be affordable to households earning no more than 60% of area median income (AMI), with 30% of the project units affordable to households earning no more than 30% of AMI.The City Council Resolution approving the Community Benefit Program Agreement is included as Attachment 1 and the Community Benefit Program Agreement is included as Attachment 2. STRATEGIC PLAN INITIATIVE:Strategy 3: Create More Affordable Housing OpportunitiesObjective A: Facilitate production of affordable housing for lower-income seniors, workforce, andspecial needs households by leveraging the Alameda County Measure A-1 Bond fundsand the City’s Affordable Housing Fund. 203 Page 5 of 5 NOTICING REQUIREMENTS/PUBLIC OUTREACH:Two City-led Community Meetings were held on October 12 and October 13, 2021, to provide Dublin residents with information about the proposed Regional Street residential project. Sixresidents attended the meeting on October 12 and two residents attended the meeting on October 13. Three members of the applicant team attended each meeting. Staff provided a presentation that included an overview of the new Community Meeting concept, the City’s development review process, and the proposed project. Questions were asked about the age requirement for seniors, the total amount remaining in the City’s Affordable Housing Fund, the construction schedule, Alameda County’s specific income limits for low and very low-income households, and how to stay current with the project as it progresses through the entitlements process.A Planning Application sign was posted on the project site and the project was also included on the City’s development projects webpage. A copy of this Staff Report has been provided to the Applicant. ATTACHMENTS:1) Resolution Approving a Community Benefit Program Agreement between the City of Dublin and Corona/Ely Ranch, Inc.2) Exhibit A to the Resolution – Community Benefit Program Agreement 3) November 23, 2021 Planning Commission Staff Report (without attachments)4) April 20, 2021 City Council Staff Report (without attachments) 204 Attachment 1 RESOLUTION NO. XX-21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING A COMMUNITY BENEFIT PROGRAM AGREEMENT BETWEEN THE CITY OF DUBLIN AND CORONA/ELY RANCH, INC. WHEREAS,the Applicant, Corona/Ely Ranch, Inc. (Eden Housing’s controlled affiliate) is seeking to develop a 1.33-acre site located at 6541-6543 Regional Street west of the West Dublin/Pleasanton BART Station within the Downtown Dublin Specific Plan Transit-Oriented District. The proposed project consists of 113 units of affordable senior housing intended for independent living; and WHEREAS,the 113 residential units are permitted in the Transit-Oriented District of the Downtown Dublin Specific Plan; and WHEREAS,on November 23, 2021 the Planning Commission adopted Resolution No. 21-11 approving the Site Development Review Permit for the proposed project subject to approval of a Community Benefit Program Agreement by the City Council; and WHEREAS,Eden Housing is seeking 113 units from the Downtown Dublin Specific Plan Development Pool. In exchange for this allocation, Eden Housing will contribute community benefits in the form of a 100% affordable senior housing project (excluding one property manager’s unit) that would be affordable to households earning no more than 60% of area median income (AMI), with 30% of the project units affordable to households earning no more than 30% of AMI; and WHEREAS, the effective date of the Community Benefit Program Agreement (“Agreement”) shall be the date upon which City Council approves the Agreement; and WHEREAS,the term of the Agreement shall commence on the effective date and shall extend until the earlier of the following: 1) the Applicant has provided the community benefit to the City as provided in Section 3 of the Agreement; 2) any of the project approvals expire; or 3) two years after the effective date plus any extensions granted pursuant to Section 4.1 of the Agreement provided the Applicant has at the time of such extension applied for a building permit. This term and any extensions granted shall apply to the Site Development Review Permit. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby approves the Community Benefit Program Agreement between the City of Dublin and Corona/Ely Ranch, Inc. as attached as Exhibit A to this Resolution. BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to execute the Agreement and gives the City Manager authority to execute any minor amendments to the Agreement, as needed, to carry out the intent of this Resolution. PASSED, APPROVED AND ADOPTED this 7th day of December 2021, by the following vote: 205 AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 206 CITY OF DUBLIN COMMUNITY BENEFIT PROGRAM AGREEMENT  Corona/Ely Ranch, Inc., 6541‐6543 Regional Street  This Community Benefit Program Agreement (“Agreement”) is entered into on December 7, 2021,  by and between the City of Dublin, a municipal corporation (“City”) and Corona/Ely Ranch, Inc., a  California nonprofit public benefit corporation (“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 No. 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 1,320,220 square feet of non‐residential development, 150 hotel rooms and 2,500 residential dwelling units (collectively “the Excess Capacity”) apportioned between the three districts in the Specific Plan Area.  The 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 Benefit Program and enter into a Community Benefit Program Agreement with the City. D.Developer proposes to develop certain property at 6541‐6543 Regional Street within the Specific Plan Area (“the Property”), which is within the Transit Oriented District of the Specific Plan Area, and as part of its proposal desires to develop 113 units of affordable senior and/or special needs housing (inclusive of one manager’s unit) on approximately a 1.33‐acre site (“the Project”).  In exchange for requesting residential units from the Downtown Dublin Specific Plan Development Pool to enable development of the Project, Developer proposes 100 percent of the residential units (excluding the manager’s unit which would be unrestricted) would be affordable to households earning no more than 60 percent of area median income, with 30 percent of the residential units affordable to households earning no more than 30 percent of area median income (“the Community Benefit”). E.Developer will need to submit for a Site Development Review for the Property, which approval, if granted, together with any approvals or permits now or hereafter issued with respect to the Project are referred to as the “Project Approvals.” Attachment 2 207 F. 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 Development.    G. The Project is located within the Specific Plan area, which was the subject of an Environmental  Impact Report (EIR), State Clearinghouse No. 20100022005. The Downtown Dublin Specific Plan  Final EIR was certified by City Council Resolution No. 08‐11 dated February 1, 2011, and updated  with addendums adopted by the City in Resolution No. 50‐14, Resolution No. 126‐19 and  Resolution No. 79‐20 (“Specific Plan EIR”). Pursuant to the California Environmental Quality Act  (CEQA) Guidelines Section 15168, the Community Benefit Program Agreement is within the scope  of the Project analyzed in the Specific Plan EIR and no further CEQA review or document is  required. This Community Program Benefit Agreement does not impede, impair or otherwise seek  to truncate or limit the City discretion in considering any future Project Approvals for conducting  any future CEQA review as required by applicable law.  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 (“Effective Date”) shall be the date  upon which City Council approves the Agreement.    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, 2) any of the Project Approvals  expire, or 3) two years after the Effective Date plus any extensions granted pursuant to  Section 4.1 provided the Developer has at the time of such extension applied for a  building permit. This term and any extensions granted shall apply to the Site Development  Review permit.  3. Community Benefit to Be Provided by Developer.  208   3.1 Affordable Housing Project. Developer shall provide the following Community Benefit to  the City: the development of an affordable housing project with 113 units of affordable  senior and/or special needs housing (inclusive of one manager’s unit) with 100 percent of  the project units being affordable to households earning no more than 60 percent area  median income, with 30 percent of the project units affordable to households earning no  more than 30 percent of area median income. The manager’s unit will be unrestricted.    3.2 Treatment of Affordable Unit Credits Created by Development. The Parties agree that any  “affordable unit credits” created by virtue of the construction of affordable housing shall  accrue to City. In furtherance of this Agreement, Developer shall take reasonable efforts  to create the “affordable unit credits” pursuant to Section 8.68.060 of the Dublin  Municipal Code and any such credits shall be deemed immediately transferred to City  once they have been created.    4. Residential Allocations; Reservation of Excess Development Capacity.    4.1 Residential Allocations. As of the Effective Date, City shall grant 113 Residential  Allocations out of the Development Pool established by the Downtown Dublin Specific  Plan for the development of the Project. The term “Residential Allocation” as used in the  Agreement means an allocation of the right to construct residential units from the  Development Pool established by the Downtown Dublin Specific Plan. Once granted, the  Residential Allocations for the Project shall extend until two (2) years from the Effective  Date. The City Manager may, in his or her sole discretion, extend the Residential  Allocation Term to a date determined by the City provided the Developer has at the time  of such extension applied for a building permit.    4.2 Reservation of Excess Capacity. During the term of the Agreement, and so long as each of  the Project Approvals remain in effect, City shall reserve 113 units from the Downtown  Dublin Specific Plan Development Pool for Developer’s use.  If Developer fails to provide  the Community Benefit during the term of this Agreement, 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.    4.3 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 4.1 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.  209   5. Amendment or Cancellation.    5.1 Amendment by Mutual Consent. This Agreement may be amended in writing from time  to time by mutual consent of the parties.    6. 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, unless a Party’s  consideration materially fails as a result.    7. 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.    8. 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  its rights and obligations under this Agreement, so long as said transfer would not result in  development of the Property in excess of the FAR permitted by the Project Approvals. Affiliates  of Developer, including ventures in which Developer is the development partner but not the  majority owner, will not be considered Transferees for these purposes.  No such transfer, sale or  assignment of Developer’s rights, interests and obligations hereunder shall occur without prior  written approval by the City Manager.  The City Manager shall not unreasonably withhold  approval of any transfer and the sole criterion shall be that the proposed Transferee possesses  the financial ability to satisfy the obligations of Developer pursuant to Sections 3.1 and 3.2 of this  Agreement. Developer shall submit to the City Manager any notice of Developer’s intent to  transfer, sell or assign its interest, which shall include documentation that the Transferee satisfies  the criterion. Within five (5) business days after Developer submits its notice, the City Manager  may request any commercially reasonable documents, certifications and other information  necessary to determine whether the criterion is met, and the City Manager’s failure to request  such additional information shall constitute a determination that no such further information is  needed. The City Manager will make a written determination on any transfer, sale or assignment  210 on or before the later of: 1) five (5) days after Developer’s submission of additional information if  requested by the City Manager, or ten (10) calendar days after Developer’s notice of the proposed  transfer, and the City Manager’s failure to object in writing to the transfer, sale or assignment  within such time period shall constitute approval of the transfer.  9. Notices.  All notices required to be given to City under this Agreement shall be in writing and shall be  addressed as follows:  City of Dublin  Attn: City Manager  100 Civic Plaza  Dublin, CA 94568  Phone: (925) 833‐6650  Fax: (925) 833‐6651  Email: city.manager@dublin.ca.gov    All notices required to be given to Developer under this Agreement shall be in writing and shall  be addressed as follows:    Corona/Ely Ranch, Inc.  Attn: Senior Vice President of Real Estate  22645 Grand Street  Hayward, CA 94541‐5031  Phone: (510) 582‐1460  Email: aosgood@edenhousing.org    10. Agreement is Entire Understanding.    This Agreement constitutes the entire understanding and agreement of the parties.    11. Legal Authority.  Each individual executing this Agreement 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.  12. No Third Party Beneficiaries.  This Agreement is made and entered into for the sole benefit of the Parties and their successors  and assigns. No other persons shall have any right of action based upon any provision of this  Agreement.  IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as  of the date and year first above written.  211   CITY OF DUBLIN    By: ______________________________         Linda Smith, City Manager      Attest:    _________________________________  Marsha Moore, City Clerk      Approved as to form    __________________________________  John D. Bakker, City Attorney  CORONA/ELY RANCH, INC.,  a California nonprofit public benefit corporation      By: ___________________________            Linda Mandolini, President       5007598.1   212 STAFF REPORT Planning Commission Page 1 of 13 DATE: November 23, 2021 TO: Planning Commission SUBJECT: Regional Street Residential Project (PLPA-2021-00035) Prepared by: Carla Violet, Contract Planner EXECUTIVE SUMMARY: The Planning Commission will consider a Site Development Review Permit for a 1.33-acre site located at 6541-6543 Regional Street west of the West Dublin/Pleasanton BART Station within the Downtown Dublin Specific Plan Transit-Oriented District. The proposed project is a 113- unit affordable senior housing development intended for independent living, and includes indoor and outdoor amenity spaces, property management offices, and a surface parking lot. The Planning Commission will also consider an exemption from the requirements of the California Environmental Quality Act (CEQA). STAFF RECOMMENDATION: Disclose ex-parte contacts, conduct the public hearing, deliberate and adopt a Resolution approving a Site Development Review Permit for the Regional Street Residential project at 6541-6543 Regional Street in Downtown Dublin. DESCRIPTION: Eden Housing is proposing to develop a 1.33-acre site that is currently occupied by a one-story commercial building. The site is located at the corner of Regional Street and the future extension of St. Patrick Way west of the West Dublin/ Pleasanton BART station at 6541-6543 Regional Street as shown in Figure 1. The property is bound by commercial uses and I-580 to the south, the future 499-unit Avalon West project (formerly the St. Patrick Way Residential project) to the east, the future extension of St. Patrick Way and commercial uses to the north, and Regional Street and commercial uses to the west. Attachment 3 213 Page 2 of 13 Figure 1. Location Map The project site is located in the Transit-Oriented District of the Downtown Dublin Specific Plan (DDSP) as shown in Figure 2. Figure 2. Transit-Oriented District/Vicinity Map The DDSP identifies a pool of 2,500 residential units that may be constructed in the DDSP area. As part of the proposed project, the applicant is required to enter into a Community Benefit Agreement (CBA) in exchange for using units from the pool. The CBA is subject to review and approval by the City Council. Since the establishment of the pool, 783 units have been constructed. There are 804 units remaining in this pool as shown in Table 1 below. SUBJECT PROPERTY 214 Page 3 of 13 Table 1. DDSP Residential Development Pool Project Address Units Status Total Units in Development Pool 2,500 Connolly Station 7550 St. Patrick Way 309 Approved 2012 – complete Aster (Bay West) 7544 Dublin Blvd. 313 Approved 2013 – complete Valor Crossing (Eden) 6707 Golden Gate Dr. 66 Approved 2013 – complete Trumark Homes 7144 Regional St. 60 Approved 2015 – complete Avesta Development 7601 Amador Valley Blvd. 35 Approved 2016 – complete St. Patrick Way 6700 St. Patrick Way 499 Approved 2018 Amador Station (BRIDGE Housing) Golden Gate Drive 300 Approved August 2021 Regional Street (proposed project) 6543 Regional St. 114 Reserved July 2020 Total Reserved Units 1,696 Remaining Units 804 Background Land Transfer Pursuant to Bay View Group Development Community Benefit Agreement On May 1, 2018, the City Council approved a CBA between the City and Bayview Development Group, Inc. for a 499-unit residential project at 6700 Golden Gate Drive (the St. Patrick Way Residential Project). The CBA outlined what Bayview Development Group would contribute to the City in exchange for receiving residential units from the DDSP Development Pool, including the dedication to the City or its designee of the subject 1.33-acre property located at 6541-6543 Regional Street. The City Council approved an amendment to the CBA in April 2020 extending the term of the agreement and assigning it to Crystal Bay Development, LLC. Staff selected Eden Housing as the City’s third-party designee for the transfer of the subject property. On March 16, 2021, the City Council authorized the City Manager to enter into an Option Agreement with Eden Housing’s controlled affiliate Corona/Ely Ranch, Inc. for the subject property. The Option Agreement ensured the City’s interest in developing the subject property with affordable housing by requiring a Memorandum of Option be recorded against the property concurrently with the grant deed transfer from Crystal Bay to Corona/Ely Ranch. The Option Agreement gives the City an exclusive right and option to purchase the property from Corona/Ely Ranch if: a) they fail to enter into a mutually acceptable Affordable Housing Assistance Agreement within the time periods set forth in the contract; b) they attempt to transfer the property before recording a Regulatory Agreement; or c) construction financing for the project does not close within three years. Local Housing Trust Fund Grant On July 21, 2020, the City Council authorized the City Manager to submit a Local Housing 215 Page 4 of 13 Trust Fund (LHTF) grant application to the California Department of Housing and Community Development (HCD) for the purpose of funding an affordable housing project on the subject 1.33-acre property. In conjunction with this authorization, the City Council reserved up to 114 residential units from the DDSP Development Pool and directed Staff to issue a Letter of Intent to Eden Housing to provide matching funds that were required to receive the grant. The matching funds identified in the grant application include the 1.33-acre site, valued at approximately $5 million, plus $5 million from the Alameda County Measure A- 1 Bond. Prior to submitting the grant application, Staff worked with Eden Housing on a preliminary proposal to develop between 70 and 114 units of affordable housing with a projected total development cost of between $46 million and $74 million. On February 10, 2021, the City received notification that a LHTF grant in the amount of $3,333,333 had been awarded to the project. Alameda County Measure A-1 Bond Funds Alameda County Measure A-1 was passed in November 2016 and will fund three programs related to homeownership and two programs related to rental housing. Of the total amount allocated to the Rental Housing Development Fund, the City’s Net Base Allocation is $7,948,319. Cities have until December 31, 2021, to commit funds to specific projects. “Commitment” is defined as a City Council action to allocate funds to a project. Funds not committed before the deadline will be moved to the Regional Pool in which the city is located on January 1, 2022. The City Council committed $2.9 million of the City’s Net Base Allocation to the BRIDGE Housing proposal on Golden Gate Drive on March 16, 2021. On October 5, 2021, the City Council authorized commitment of $5,048,319 in Alameda County Measure A-1 Bond funds to Eden Housing to assist with development of the affordable rental housing project on Regional Street. Proposed Project Eden Housing proposes to develop a 1.33-acre property located at 6541-6543 Regional Street with 113 affordable rental units to serve very low- and low-income seniors. The project would include 55 studios, 57 one-bedrooms, and one unrestricted two-bedroom manager's unit. The studios and one-bedroom units would be restricted to senior households earning between 20 to 50 percent of Alameda County area median income (AMI). Site Development Review Permit The DDSP contains allowed uses, development standards, and design guidelines for all projects within its boundaries. The development standards contained in the DDSP are purposefully permissive to allow flexibility in project design and implementation. The proposed project would meet the development standards of the Transit-Oriented District (DDSP Section 4.2). An overview of those standards and a comparison to the proposed project 216 Page 5 of 13 is provided in Table 2 below. Table 2. Overview of DDSP Development Regulations Development Regulation Standard Proposed Density Range 30 to 85 units per acre (108-306 units) 84.9 units per acre (113 units) Building Height 8 floors/ 90 feet 5 floors/60 feet Setbacks: St. Patrick Way 5 feet min. 15 feet max. (80% of bldg. façade) 6 feet Regional Street 5 feet min. 6 feet Parking: Residential 1.5 spaces per unit 0.5 stall per unit (57 spaces) 1 Guest Parking Up to 15% of required parking 0 1 Recent changes in State Density Bonus Law allow qualifying projects, as a matter of right, to obtain lower parking requirements than what would otherwise be required by local government standards. See Parking section below for additional information. Site Layout and Circulation The proposed building would be sited on the north side of the parcel oriented along the future extension of St. Patrick Way. Refer to the site plan in Figure 3 below. Vehicular access to the project site would be from the Regional Street cul-de-sac. The entry to the surface parking lot would be through a 20-foot-vehicular double gate providing access for residents and guests. All amenities, including the lobby, mail room, manager’s office, laundry room, fitness room and community room would be located on the ground level along the St. Patrick Way frontage. Two drop-off parking spaces are also proposed along St. Patrick Way. 217 Page 6 of 13 Figure 3. Site Plan Architecture and Materials The architectural concept for the residential development is a contemporary five-story building with four stories of wooden construction over one-story of concrete construction. The exterior finishes include a variety of contemporary building materials including, fiber cement lap siding, textured concrete base, metal laser cut railing panels, perforated metal window surrounds, and steel canopies. The building’s massing is broken up by the stepping back and projecting forward of varying sections to appear more like a group of four smaller buildings. The building’s articulation is further accented by the perforated metal window surrounds and various color and material changes that create visual interest at different levels (see Figures 4 and 5 below). The sections of the building are separated from one another through the use of varied colors of horizontal bands of cementitious panels. The building elevation along St. Patrick Way is highlighted with decorative balconies for individual residential units on the ground floor and three outdoor terraces on the upper floors that create additional visual interest. Building perspectives and elevations are included in Attachment 2, Sheets A001-A002 and A301-A302, respectively. 218 Page 7 of 13 Figure 4. Partial North Elevation from Corner of Regional Street and St. Patrick Way Figure 5. Proposed Entry along St. Patrick Way 219 Page 8 of 13 Landscape Design Project landscaping is designed to enhance the building’s architecture. The landscape is also functionally designed to buffer the proposed building in key locations such as along the east property line to be shared with the future Avalon West project. The DDSP encourages the use of landscaping on all sides of buildings, along streets, walkways, driveways and private outdoor spaces. A combination of trees, shrubs and groundcovers are also encouraged which may be provided in planters, pots or in the ground. The DDSP supports the inclusion of shade trees along walkways and near buildings. These encouraged features are included in the proposed design. The ground floor common area proposed along the easterly portion of the site would be the primary outdoor activity area with four distinct areas linked by a loop pedestrian path. The first is an outdoor lounge/event space, which would be an extension of the indoor community room with moveable tables/chairs, self-seating elements, and art panels mounted on the perimeter fences as focal elements. This courtyard area can also serve as a space for outdoor dining or fitness groups. The other three areas include a sports court, garden area, and pet relief zone (see Figure 7 below). In addition to the ground level courtyard, the building would have four outdoor terraces with a unique theme and plant palette. They include an orchid garden at level 2, a scent garden at level 3, a perennial garden at level 4, and an edible garden at level 5. The conceptual landscape plan is included in Attachment 2, Sheet L-4, with details on Sheets L-1 through L-7. Figure 7. Landscape Plan 220 Page 9 of 13 Parking With the passage of Assembly Bill 2345 (State Density Bonus Law), an affordable housing project located within ½ mile of an accessible major transit stop is entitled to a reduced parking requirement of .5 space per residential unit. As noted in Table 2 above, the DDSP requires 1.5 spaces per residential unit and up to 15% of the required parking for guest spaces. The project proposes a total of 57 spaces in a surface level parking lot at the rear of the project site for the residential units and guest parking (.5 spaces per unit). Public Art The City’s public art requirement does not apply to 100% low-income housing projects. If the affordability levels of the project were to increase, public art would be required pursuant to Dublin Municipal Code Chapter 8.58 Public Art Program Contribution. Consistency with General Plan, Specific Plan and Zoning Ordinance The project is consistent with the General Plan land use designation of Downtown Dublin – Transit-Oriented District and the DDSP. The DDSP was written as a comprehensive plan for future development in the Downtown area. The Specific Plan contains the allowed uses, development standards, and design guidelines with which all projects within the boundaries must be in compliance. The proposed project, with the allocation of residential units from the Development Pool as described above, is consistent with the DDSP and the City’s Zoning Ordinance. The proposed project has been designed to be compatible with surrounding residential and commercial properties, while encouraging the appropriate integration to activate this key area of Downtown Dublin. In addition, the proposed project will contribute to the implementation of the vision of the DDSP and the housing opportunities offered in the DDSP area. Downtown Dublin Specific Plan Guiding Principles A set of guiding principles are included to help prioritize the direction and development strategy for Downtown Dublin as a whole (DDSP Section 3.3). The purpose of the guiding principles is to define a framework for future land uses, development standards and design guidelines. In addition, guiding principles for Downtown Dublin as a whole, have been identified for the Transit‐Oriented District: • Promote transit‐oriented development to create a distinctive and active district; • Identify opportunity sites for future development that incorporate mixed‐use and provide public and/or private plazas and outdoor gathering areas at strategic locations; and • Encourage underground and/or above ground parking structures. 221 Page 10 of 13 Downtown Dublin Specific Plan Vision The established vision of the DDSP is to make Downtown Dublin “a vibrant and dynamic commercial and mixed-use center that provides a wide array of opportunities for shopping, services, dining, working, living and entertainment in a pedestrian-friendly and aesthetically pleasing setting that attracts both local and regional residents.” The development of the subject property is an important incremental improvement to advance this vision. The proposed project also supports the narrower vision for the Transit-Oriented District which is “to encourage the development of the area with land uses that support and complement transit uses, particularly the West Dublin BART Station. These uses include high-density multi- family residential and those that are generally more urban that the surrounding area.” In addition, a pedestrian-scale, walkable environment is encouraged through the development of plazas and connectively within the District and areas outside the District. The proposed project with its site design will further the vision of the Transit-Oriented District. Downtown Dublin Specific Plan Design Guidelines The DDSP establishes design guidelines for development within the plan area (DDSP Section 4.4). The proposed project meets the key design guidelines of the DDSP (DDSP Section 4.4), including: • Using high-quality building materials and treating all building facades that are visible from the public realm with similar architectural elements, materials, and colors; • Incorporating treatments into the building design to ensure articulation and visual interest by utilizing techniques such as changing direction of the wall or façade, altering the height of the rooflines, providing projecting elements such as canopies, balconies, trellises, and breaking up large surfaces with logical changes in materials, texture, or colors; • Use of bold colors as accent features only and maximizing the use of muted or soft colors; • For residential uses, porches, balconies, and courtyards and providing ground-floor access to both individual and common building entrances; and • Finishing materials and color used on all building facades should be complementary to cone another and appropriate for the architectural style and character of the building. Review by Applicable Departments and Agencies The Building Division, Fire Prevention Bureau, Public Works Department, and Dublin San Ramon Services District reviewed the project and provided Conditions of Approval where appropriate to ensure that the project is established in compliance with all local ordinances and regulations. Conditions of Approval from these departments and agencies have been included in the attached Resolution (Attachment 1). 222 Page 11 of 13 ENVIRONMENTAL DETERMINATION: On February 1, 2011, the City Council approved the DDSP to guide development within the 284-acre Downtown Dublin area and create a vibrant and dynamic mixed-use center (Resolution No. 09-11). Pursuant to the requirements of CEQA, a Final Environmental Impact Report (EIR) (State Clearinghouse No. 2010022005) was prepared for the DDSP and certified by the City Council on February 1, 2011 (Resolution No. 08-11). On May 6, 2014, the City Council adopted Resolution No. 49-14 adopting an Addendum to the DDSP EIR for changes to the DDSP. The changes included increasing the number of residential units permitted in the DDSP area by 1,200 units and decreasing the amount of commercial square footage permitted by 773,000 square feet, creating minimum density thresholds for the Transit-Oriented and Retails Districts, and restricting residential development on the west side of San Ramon Road in the Retail District. On December 3, 2019, the City Council adopted Resolution No. 126-19 adopting an Addendum to the DDSP EIR for changes to the DDSP. The changes included an amendment to the General Plan and DDSP to allow an increase in the allowable commercial floor area ratio in the Transit-Oriented and Retail Districts to 2.5 and 2.0, respectively, combining the new residential dwelling unit allocation into one pool for all three districts, and amending the parking standards in the Village Parkway and Transit-Oriented Districts. On July 21, 2020, the City Council adopted Resolution No. 79-20 adopting an Addendum to the DDSP EIR for changes to the DDSP to implement the Downtown Dublin Preferred Vision approved by City Council on November 5, 2019. The changes included a new street grid of both public and private streets in the Retail District, siting of the Town Square, combining the remaining allocation of new non-residential square footage from Transit-Oriented and Retail Districts into one pool for the two areas, adding lodging as a permitted use in the Retail District, and modifying the design guidelines in “The Core” area of the Retail District to encourage walkable and pedestrian-friendly development. The DDSP EIR and subsequent Addendums analyzed the construction of approximately 2.2 million square feet of non-residential development and 2,500 residential dwelling units, included within the DDSP. Approval of the proposed 113-unit residential project would be within the development threshold of the 2,500 residential dwelling units allocated for the DDSP. In addition, the proposed project would conform with the development regulations and design guidelines established in the DDSP as discussed above. As provided in Government Code Section 21166 and Section 15162 of the CEQA Guidelines, when an EIR has been prepared for a project (DDSP EIR), no new environmental document 223 Page 12 of 13 shall be prepared for the proposed project, unless the Planning Commission makes one of the following determinations under Section 15162(a): 1. Substantial changes are proposed in the project which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 2. Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or 3. New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the EIR was adopted, shows any of the following: a. The project will have one or more significant effects not discussed in the previous EIR; b. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measures or alternative; or c. Mitigation measures which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure. The City conducted a review to determine if the proposed project met any of the standards requiring the preparation of supplemental environmental review under CEQA and concluded that the project is within the scope of development analyzed by the DDSP EIR and subsequent Addendums. The circumstances under which the project is to be undertaken have not substantially changed since the DDSP EIR and subsequent Addendums were prepared and will not substantially change with approval of the project. The DDSP EIR adequately described the impacts of the project for the purposes of CEQA, and no mitigation measures or new alternatives are required other than those previously disclosed and analyzed in the DDSP EIR and subsequent Addendums. Approval of the project will not create any site-specific operations giving rise to environmental effects different from those examined by the DDSP EIR or requiring the preparation of an Initial Study. The proposed project is subject to the DDSP Mitigation Monitoring and Reporting Program. Consequently, pursuant to CEQA Guidelines Section 15182, the project impacts are covered by the DDSP EIR and its Addendums and no further environmental review is required for this project. 224 Page 13 of 13 Furthermore, the proposed project is exempt from further environmental review pursuant to Government Code Section 65457 and CEQA Guidelines Section 15182(c)(Residential Projects Implementing Specific Plans), which states: "Eligibility. Where a public agency has prepared an EIR on a specific plan after January 1, 1980, a residential project undertaken pursuant to and in conformity to that specific plan is exempt from CEQA if the project meets the requirements of this section….If after the adoption of the specific plan, an event described in Section 15162 occurs, the exemption in this subdivision shall not apply until the city or county which adopted the specific plan completes a subsequent EIR or a supplement to an EIR on the specific plan.” As identified in CEQA Guidelines Section 15162 and described above, supplemental environmental review is required only when there are new or substantially more severe significant environmental impacts which require major revisions to the EIR due to project changes, substantial changes with respect to circumstances under which the project is undertaken or new information of substantial importance. Therefore, no further environmental review is required. NOTICING REQUIREMENTS/PUBLIC OUTREACH: Two City-led Community Meetings were held on October 12 and October 13, 2021, to provide Dublin residents with information about the proposed Regional Street residential project. Six residents attended the meeting on October 12 and two residents attended the meeting on October 13. Three members of the applicant team attended each meeting. Staff provided a presentation that included an overview of the new Community Meeting concept, the City’s development review process, and the proposed project. Questions were asked about the age requirement for seniors, the total amount remaining in the City’s Affordable Housing Fund, the construction schedule, Alameda County’s specific income limits for low and very low- income households, and how to stay current with the project as it progresses through the entitlements process. In accordance with State law, a public notice was mailed to all property owners and occupants within 300 feet of the proposed project to advertise the project and the upcoming public hearing. A public notice also was published in the East Bay Times and posted at several locations throughout the City. A Planning Application sign was posted on the project site and the project was also included on the City’s development projects webpage. A copy of this Staff Report has been provided to the Applicant. ATTACHMENTS: 1) Planning Commission Resolution Approving Site Development Review Permit 2) Exhibit A to Resolution - Project Plans 225 Page 1 of 4 STAFF REPORT CITY COUNCIL DATE: July 21, 2020 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SUBJECT: Local Housing Trust Fund Program Prepared by: Jim Bergdoll, Senior Planner and Kristie Wheeler, Assistant Community Development Director EXECUTIVE SUMMARY: The City Council will consider adoption of a Resolution authorizing the City Manager to submit an application and receive up to $3,333,333 in grant funds from the State of California’s Local Housing Trust Fund (LHTF) Program. The purpose of the LHTF Program is to provide matching funds to local and regional housing trust funds dedicated to the creation, rehabilitation, or preservation of affordable housing, transitional housing and emergency shelters. These grant funds will be used to help fund a 100 percent affordable rental housing project proposed at 6541 Regional Street. The City Council will also consider reserving up to 114 units from the Downtown Dublin Specific Plan Development Pool for this affordable housing project. STAFF RECOMMENDATION: Adopt a Resolution Authorizing Application for, and Receipt of, Local Housing Trust Fund Program Funds; authorize the reservation of up to 114 residential units from the Downtown Dublin Specific Plan Development Pool and preparation of a Community Benefit Agreement; and direct Staff to issue a Letter of Intent to Eden Housing to provide funding for an affordable rental housing project at 6541 Regional Street. FINANCIAL IMPACT: The Local Housing Trust Fund Program requires a minimum one-to-one match from eligible local housing trust funds and awards maximum points for applications proposing a three-to-one match. Staff proposes to commit land (valued at approximately $5 million) plus approximately $5 million from the Alameda County A-1 Bond or the City’s Affordable Housing Fund as matching funds for a three-to-one match. Additionally, Staff time is required to prepare the grant application and administer the receipt and disbursement of the grant funds. DESCRIPTION: Attachment 4 226 Page 2 of 4 The Local Housing Trust Fund (LHTF) Program is funded by the Veterans and Affordable Housing Bond Act of 2018 (Proposition 1) and administered by the California Department of Housing and Community Development (HCD). HCD will allocate up to $300 million of the bond proceeds over a number of years. The purpose of the LHTF Program is to provide matching funds to local and regional housing trust funds dedicated to the creation, rehabilitation, or preservation of affordable housing, transitional housing, and emergency shelters. A Notice of Funding Availability (NOFA) was released on April 30, 2020, for approximately $57 million in funds from the LHTF Program with an application deadline of August 3, 2020. The program provides grants of up to $5 million. Grants are awarded on a competitive basis using a number of criteria to rate application submittals. Amongst other requirements, the City Council must adopt a Resolution authorizing the City Manager to submit an application and receive grant funds from the LHTF Program (Attachment 1). In addition, the application must identify an eligible project, provide matching funds and make a commitment to housing affordability. Staff is proposing to request a grant of $3,333,333 as further discussed below. Eligible Project Staff proposes to submit a grant application for a proposed affordable housing project on a 1.3-acre site located at 6541 Regional Street. This site will be acquired by the City for affordable housing through an approved Community Benefit Agreement (CBA) associated with the adjacent St. Patrick Way Residential Project. Staff has been working with Eden Housing (Eden) over the past two years on potential affordable housing proposals for this site. Eden has prepared a preliminary proposal to develop between 70 and 114 units of affordable senior and/or special needs housing with a projected total development cost of between $46 million and $74 million (Attachment 2). Commitment of Housing Affordability Eden’s proposal for the Regional Street site would meet the required LHTF Program affordability criteria. One hundred percent of the project units would be affordable to households earning no more than 60 percent of area median income (AMI), with 30 percent of the project units affordable to households earning no more than 30 percent of AMI. Matching Funds for Project The LHTF Program requires a minimum one-to-one local match of funds and maximum points are awarded to applications that include a three-to-one match. Staff is proposing a three-to-one match which includes the 1.3-acre site that the City will acquire through the CBA (valued at approximately $5 million) plus approximately $5 million either from the Alameda County A-1 Bond (leaving approximately $3 million in A-1 Bond money available to allocate to another affordable project in the future) or the City’s Affordable Housing Fund. Dublin’s Affordable Housing Fund currently has sufficient funds that could be pledged for the match, but grant applicants receive extra points for using a “non-residential source” such as the A-1 Bond funds. The total match of approximately $10 million equals three times the $3,333,333 grant request in the proposed LHTF Program application. The requested amount is based on the project need and the opportunity to leverage the local funds to maximize the competitiveness of the application. 227 Page 3 of 4 Downtown Dublin Specific Plan Development Pool The Downtown Dublin Specific Plan identifies the number of residential units that can be constructed within the Specific Plan area and has established a pool of these units. A developer must request City Council authorization to reserve units from the pool and provide a benefit to the community for use of the 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. Eden has prepared a preliminary proposal to develop between 70 and 114 units of affordable senior and/or special needs housing and is requesting authorization for an allocation of up to 114 units from the Downtown Dublin Specific Plan Development Pool. In order to construct the project, a Community Benefit Agreement and Site Development Review Permit will be required. Eden and Staff have discussed the terms of the community benefit, as follows: • Eden would receive an allocation of up to 114 units from the Downtown Dublin Specific Plan Development Pool. In exchange for the allocation of development capacity, 100 percent of the project units would be affordable to households earning no more than 60 percent of AMI, with 30 percent of the project units affordable to households earning no more than 30 percent of AMI. • The term of the reserved units obtained from the Development Pool is two years from City approval of project entitlements, which in this case will be a Site Development Review Permit, unless that timeframe is extended by the City. City Council authorization to prepare the Community Benefit Agreement does not imply any endorsement of the project. Eden will need to submit a Site Development Review Permit application for complete review. This application will be reviewed concurrently with preparation of the Community Benefit Agreement. Letter of Intent Staff proposes to issue a Letter of Intent (Attachment 3) to Eden Housing to provide the project site and approximately $5 million for the proposed affordable housing project identified in the LHTF Program application. The Letter of Intent will increase the competitiveness of the City’s application by providing “tie-breaker” points, if needed. Through the Letter of Intent, the City is committing to the development of an affordable housing project on the Regional Street site in partnership with Eden Housing, contingent on the project securing all the necessary financing and permits to build the project. Eden has successfully developed four other affordable housing projects in Dublin over the past 15 years and has established a solid working relationship with the City over those years. ENVIRONMENTAL REVIEW: 228 Page 4 of 4 The Resolution authorizing the City Manager to submit an application and receive grant funds from the LHTF Program is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 as the application does not meet CEQA’s definition of a “project” and would not result in either a direct physical change, or a reasonably foreseeable indirect physical change in the environment. STRATEGIC PLAN ALIGNMENT: Strategy 3: Create More Affordable Housing Opportunities Objective A: Facilitate production of affordable housing for lower income seniors, workforce and special needs households by leveraging the Alameda County Measure A-1 Bond funds and the City’s Affordable Housing Fund. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Resolution Authorizing Application for, and Receipt of, Local Housing Trust Fund Program Funds 2. Project Description 3. Letter of Intent 229