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HomeMy WebLinkAbout1997-11-18; City Council; 14439; Villa Loma Housing ProjectC CITY OF CARLSBAD - AGMDA BILL AB# JcJ.Y39 wfl TITLE. APPLICATION TO PURCHASE -- DEPT. HD. &@ MTG. +r&- ci-7 AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT DEPT. H/RED I RECOMMENDED ACTION: ADOPT Resolution 930 &b? as recommended by the Housing Commission, APPROVING a request by TRC Development Corporation to purchase 2.55 Affordable Housing Credits in the Villa Loma housing project in order to satisfy the affordable housing obligation of the Mar Vista at La Costa project under the City’s lnclusionary Housing Ordinance. ITEM EXPLANATION: The Marvista at La Costa project is a 17 unit, single family, planned unit development. The tentative map and planned unit development applications have been approved by the Planning Commission. The applicant is requesting to purchase affordable housing credits in the Villa Loma Project to satisfy the project’s 2.55 unit inclusionary housing obligation. The City Council is the approval body for the purchase of affordable housing credits. The Mat-vista project has two potential options in satisfying its’ inclusionary housing obligation. The project could potentially construct on-site affordable units or purchase credits. The project is a small subdivision both in terms of the number of units (17) and net developable area (two acres). The limited size of the development makes constructing on-site units extremely difficult and costly. Because of the physical constraints of the project site, the applicant has elected to pursue the purchase of affordable housing credits. The City Council has adopted Policies 57 & 58 that govern the sale of affordable housing credits. The policies examine the feasibility of an on-site proposal, the advantages and disadvantages of an off-site proposal, and whether the off-site project advances the City’s housing goals and strategies. In reviewing the applicant’s request, the Housing Commission utilized the criteria contained in the policies in making their recommendation. It is the Housing Commission’s recommendation the project be allowed to purchase credits in the Villa Loma project. FISCAL IMPACT: The Affordable Housing Credit is currently $32,220 per unit. The purchase of 2.55 credits will result in a payment of $82,160 to the City’s Housing Trust Fund. I EXHIBITS: 1 .City Council Resolution No. 93 -&?9 2.Staff Report to the Housing Commission dated, August 14, 1997 w/attachments 3.Housing Commission Minutes from meeting of August 14, 1997 I . II - 1 1 CITY COUNCIL RESOLUTION NO. 97-689 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A REQUEST BY TRC DEVELOPMENT CORPORATION TO PURCHASE 2.55 AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT IN ORDER TO SATISFY THE AFFORDABLE HOUSING OBLIGATION OF THE MAR VISTA AT LA COSTA PROJECT UNDER THE CITY’S INCLUSIONARY HOUSING ORDINANCE. 7 8 APPLICANT: TRC Development CASE NO: CT 97-08, PUD 97-05 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, TRC Development has received approval of Tentative Map CT 97-08 and PUD 97-05 for the development of a 17 unit residential development; WHEREAS, TRC Development has received a reconimendation of approval from the Housing Commission that the City Council approve the purchase of 2.55 affordable housing credits in the Villa Loma housing project to satisfy the inclusionary housing requirement of Tentative Map CT 97-08 and PUD 97-05; WHEREAS, the City Council did hold a public meeting to consider said request for the purchase of Affordable Housing Credits by TRC Development; WHEREAS, as said public meeting, upon hearing and considering all testimony, if any, of all persons designing to be heard, said Council considered all factors relating to the application and request to purchase Affordable Housing Credits: NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. The project is consistent with the goals and objectives of the City of Carlsbad’s Housing Element and Comprehensive Housing Affordability, Strategy, the Inclusionary Housing Ordinance, and the Carlsbad General Plan. 3. Based upon the analysis contained within the City Council Staff Report and Housing Commission Staff Report, the City Council finds that the off-site satisfaction of the inclusionary housing requirement is in the public interest. Jill l//l /I// /Ill 2 . II 6 7 8 9 10 11 12 13 - 4. That based on the information provided within the City Council Staff Report and the Housing Commission Staff Report and testimony presented during the public meeting of the City Council, the City Council hereby APPROVES a request by TRC Development Corporation to purchase 2.55 affordable housing credits in the Villa Loma housing project in order to satisfy the affordable housing obligation of the Mar Vista at La Costa project under the city’s inclusionary housing ordinance. 5. That the City Council hereby authorizes the City Manager or his designee to execute the Affordable Housing Agreement in substantially the form presented to the City Council as Exhibit 3 of the Housing Commission Staff Report and to execute such other documents, or take other actions as may be necessary or appropriate to assist the developer in acquiring the Affordable Housing Credits. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, held on the 18th day of November , 1997 by the following vote, to wit: AyES: Council Members Lewis, Finnila, Nygaard, Kulchin, and Hall NOES: None 14 ABSENT: None 15 ABSTAIN: None 16 17 18 19 20 21 22 23 24 25 26 27 ATTEST: 0bt.L 2(? ALETHA L. FUUTENKRANZ, City Cler WW CC RESO # 97-689 PAGE 2 28 II 2 3 - EXCY61T 2 TO CC AB - 71re City of Carfsbad Housing & Redevelopment DepaHment A REPORT TO THE HOUSING COMMISSION Item No. 1 Staj? Craig D. Ruiz L Management Analyst DATE: AUGUST 14,1997 SUBJECT: MAR VISTA AT LA COSTA - APPLICATION TO PURCHASE AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT I. RECOMMENDATION That the Housing Commission ADOPT Resolution No. 97-009, recommending that the City Council APPROVE a request by TRC Development Corporation to purchase 2.55 Affordable Housing Credits in the Villa Loma housing project in order to satisfy the affordable housing obligation of the Mar Vista at La Costa project under the City’s Inclusionary Housing Ordinance. II. BACKGROUND TRC Development is currently processing an application for tentative map (CT 97-08) to develop 17 single family homes on approximately 2.5 acres. The project is designed around three cull-de-sac streets and includes home sites with a minimum parcel of 3,500 square feet. The development of 17 homes will require the developer to provide 2.55 units of housing affordable to lower income households as required by the City’s Inclusionary Housing Ordinance. It is the applicant’s position that there are significant constraints on the site which would make it difficult to provide the affordable housing units on-site. Therefore, the applicant is requesting to purchase Affordable Housing Credits (“credits”) in the Villa Loma project in lieu of on-site construction. The City’s Inclusionary Housing Ordinance permits off-site satisfaction of an inclusionary requirement through participation in a Combined Inclusionary Housing Project (“Combined Project”) if the City Council determines that it is in the public interest. Purchase of credits in the Villa Loma project constitutes participation in a Combined Project. Policies Reeardiw Off-Site Proiects and Purchase of Affordable Housing Credits The City Council has adopted two policies which deal with off-site or Combined Projects and the sale of Affordable Housing Credits. Council Policy 57 was developed to 4 h MAR VISTA AT LA COSTA AUGUST 14,1997 PAGE 2 establish the criteria to be utilized in order to make the necessary finding that off-site satisfaction of an inclusionary housing requirement, when proposed through a Combined Project, is in the public interest. This policy requires review of the request and an action recommendation from the Combined Project Review Committee consisting of the Housing and Redevelopment Director, City Manager, Financial Management Director, Community Development Director, Planning Director and City Attorney. The Mayor is an ex-officio member of the Committee. This Committee has reviewed the subject request and is recommending approval. Council Policy 58 was established to determine the price of credits and the mechanism to satisfy a developers obligation under the City’s Inclusionary Housing Ordinance. Based upon this policy, the current cost to purchase a housing credit in the Villa Loma project is $32,220 per unit. The Mar Vista Project, therefore, will be required to pay to the City of Carlsbad a total of $82,161, if approved. . RECOMMENDATION The Council Policies require staff to evaluate the request for off-site satisfaction of the inclusionary housing obligation and the purchase of credits based upon three primary criteria. The criteria includes: 1) feasibility of on-site proposal; 2) relative advantages/disadvantages of an off-site proposal; and 3) the advancement of housing goals and strategies. The following is a summary of staffs analysis of the criteria for the project. Feasibility of On-site ProDosal l The small scale of the developable area, and the physical constraints caused by the large slope areas effectively precludes all types of on-site affordable housing projects. Also, the small scale of the affordable housing project makes the development economically unfeasible due the significant financial subsidy which would be required for the project. Further, the small scale of the affordable housing project makes it unlikely that the project will generate interest from funding sources. Relative Advantages/Disadvantages of an Off-site Proposal l The participation in the off-site project will allow the City to recover the costs associated with the development of excess affordable housing units. l The Villa Loma project has locational advantages over the on-site project in terms of direct access to jobs, public transportation, schools, parks as well as other amenities and services due to the being located directly on a major thoroughfare. MAR VISTA AT LA COSTA AUGUST 14,1997 PAGE 3 Advanciw Housiw Goals and Strateties l The recovery of the City’s investment in the Villa Loma Project will provide for additional financial resources which are needed to further affordable housing development in the community. Based upon the analysis of the above criteria, it is staffs opinion that adequate justification has been provided to make the finding that the off-site satisfaction of the inclusionary housing requirement is in the public interest. Therefore, staff is recommending that the request to purchase credits be recommended for approval by the Housing Commission. EXHIBITS 1. Housing Commission Resolution No. 97-009 2. Applicant Request to Purchase Credits 3. Draft Affordable Housing Agreement cr 6 1 2 3 4 5 6 7 6 9 10 11 12 13 14 15 16 17 16 19 20 21 22 23 24 25 26 27 28 HOUSING COMMISSION RESOLUTION NO. 97-009 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, TO RECOMMEND THAT THE CITY COUNCIL APPROVE A REQUEST BY TRC DEVELOPMENT CORPORATION TO PURCHASE 2.55 AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT IN ORDER TO SATISFY THE AFFORDABLE HOUSING OBLIGATION OF THE MAR VISTA AT LA COSTA PROJECT UNDER THE CITY’S INCLUSIONARY HOUSING ORDINANCE. APPLICANT: TRC DEVELOPMENT CASE NO: CT 97-OWI’UD 07-05 WHEREAS, TRC Development has made application for Tentative Map CT 97- 08 and Planned Unit Development PUD 97-05 with the City of Carlsbad for the development of a 17 unit residential subdivision; WHEREAS, the subdivision of land for 17 residential units requires the developer to provide 2.55 units of housing affordable to lower income households as required by Carlsbad Municipal Code Section 2 1.85 of the City’s Inclusionary Housing Ordinance; WHEREAS, the Villa Loma housing project was conceived and developed with City participation based on the creation of 184 excess affordable housing units which would be available to satisfy other developers inclusionary housing obligation; WHEREAS, TRC Development has requested to purchase Affordable Housing Credits as a means to satisfy their affordable housing obligations as permitted by Carlsbad Municipal Code Section 2 1.85 of the City’s Inclusionary Housing Ordinance and consistent with City Council Policies 57 and 58; WHEREAS, the request to purchase Affordable Housing Credits has been submitted to the City of Carlsbad’s Housing Commission for review and consideration; 7 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 la 19 20 21 22 23 24 25 26 27 28 WHEREAS, said Housing Commission did, on the 141h day of August, 1997, hold a public meeting to consider said request for the purchase of Affordable Housing Credits by TRC Development; WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all persons desiring to be heard, said Commission considered all factors relating to the application and request to purchase Affordable Housing Credits; NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1. The above recitations are true and correct. 2. The project is consistent with the goals and objectives of the City of Carlsbad’s Housing Element and Comprehensive Housing Affordability Strategy, the Inclusionary Housing Ordinance, and the Carlsbad General Plan. 3. Based upon the analysis contained within the Housing Commission Staff Report, the Housing Commission finds that the off-site satisfaction of the inclusionary housing requirement is in the public interest. 4. That based on the information provided within the Housing Commission Staff Report and testimony presented during the public meeting of the Housing Commission on August 14, 1997 the Commission recommends that the City Council APPROVE a request by TRC Development Corporation to purchase 2.55 affordable housing credits in the Villa Loma housing project in order to satisfy the affordable housing obligation of the Mar Vista at La Costa project under the city’s inclusionary housing ordinance. 5. That the Housing Commission recommends that the City Manager or his designee is authorized to execute the Affordable Housing Agreement in substantially the form presented in the Exhibit 3 for the Housing Commission Staff Report and to execute such other documents, or take other actions as may be necessary or appropriate to assist the developer in acquiring the Affordable Housing Credits. HC RESO. NO. 97-009 PAGE 2 : /General Conditions: I. Within sixty (60) days of the City Council approval of Developer’s request to purchase Affordable Housing Credits, and prior to receiving Final Map approval, Developer shall execute this Agreement and pay to the City the sum of $ 82,161 as its payment for two and fifty-five one-hundredths (2.55) Credits. Execution of this Agreement by the parties and payment of the sum of $ 82,161 to the City by the Developer shall fully satisfy the Developer’s affordable housing obligation pursuant to Chapter 2 1.85 of the Carlsbad Municipal Code and the above-referenced conditions of approval. Upon execution of this Agreement and receipt of the above payment from developer, City will record an appropriate release of the developer’s obligation. a II 9 PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Commission of the City of Carlsbad, California, held on the 14* day of August, 1997, by 10 the following vote, to wit: 11 AYES: 12 13 14 15 16 17 la NOES: ABSENT: MICHAEL SCHLEHUBER, Chairperson Housing Commission DEBBIE FOUNTAIN Housing and Redevelopment Director 19 20 21 22 23 24 25 26 27 28 C EXHIBIT 2 Avalon Homes July 16, 1997 Via Facsimile and U.S. Mail (760) 720-2037 Evan Becker Director, Housing and Redevelopment CITY OF CARUBAD 2965 Roosevelt, Suite B Carlsbad, CA. 92008 &JBJECT: MARVI~TAATLACOSTA PHASE I &II-AFFORDABLE HOUSINGREQUIREMENTS ,J Tentative Tract 97-08 (17 lots) and Tentative Parcel Map 97-03 (4 lots) North West corner of El Fuerte Street and Unicornio Ave. Dear Evan: To meet the City of Carlsbad’s inclusionary housing requirements of 2.55 units on Marvista I, TM 97-08 I have enclosed a completed OCIHPA worksheet to provide evidence of meeting the criteria to apply for and obtain affordable housing credits pursuant to Policy 57 & 58 of the City’s Housing Ordinance (CMC Chapter 21.85). This policy allows housing tracts in the Southwest Quadrant of the city to apply for and purchase affordable housing credits from the 344 unit affordable housing project known as Villa Loma. It is my understanding that Mar-vista II, Tentative Parcel map 97-05 consisting of 4 units qualifies to pay in-lieu fees for the 4 units as the tentative parcel map has less than 7 units. The City of Carlsbad’s planning department is processing Marvista I & II as two different projects and their inclusionary housing obligations should be considered separately. The Planing Department cannot complete there review of this project until there is a consensus that the above project qualifies for the purchase of affordable housing credits. Please inform me as quickly as possible on the status of credits available for purchase for these projects and the time required to process and approve this application. To assist you I have included 8 I/t X 11 copies of the tentative maps. 26440 La Alameda. Suite 370 Mission Viejo, CA. 92691 - Tel: (714) 582-4111 - Fax: (714) 582-4115 C Evan Becker July 16, 1997 Page 2 I you have any questions or need additional information do hesitate to caIl me. enclosed copy of this letter as a receipt that you have received this letter. Please sign the I have enclosed a self addressed envelope with postage to expedite this process. Thank you for your diligent assistance in this matter. SincereIy, Avalon Homes Scott B. Redsun President cc: Debbie Fountain Dennis Turner - Planning Department Received by: Date OFF-SITE AND COMBINED INCL USIONAR Y HOUSING PROJECT ASSESSMENT WORKSHEET BA CKGROUND 1. Applicant Name and Address: TRC Development Corporation Dba: Avalon Homes 26440 La Alameda, Suite 370 Mission Viejo, CA 92691 (714) W-4111 2. Off-site or Combined Project Name: 344 unit affordable housing project known as Villa Loma 3. Description of Project with Inclusionary Housing Obligation: Marvista I & II is a small infill project located at the northwest comer of El Fuerte Street and Unicomio Avenue. The project consists of 5 previously graded lots totaling approximately 3.13 acres. The project will provide 17 units and 4 units respectively of single family housing ranging in size from 1,800 to 2,050 square fee4 with a minimum lot size of 3,500 square feet. There are four small cul-de-sacs with 4 to 6 unit in each cul-de-sac. 4. Proposed On-site Project Description (if any): None 5. Proposed Off-site Project Description: 344 unit affordable housing project known as Villa Loma. Marvista at La Costa I will be required to purchase 2.55 credits and Marvista at La Costa II qualifies for in-lieu fees as the tentative parcel map has less than 7 units. 6. Description of On-site Project Constraints: The project of 3C acres offers very little opportunity to provide on-site affordable housing. The project is surrounded by existing housing and fully developed street system. There are 4 private cul-de-sacs with 4 to 6 units in each one. A private park will be provided to the residences of Marvista I & II. A homeowners association will maintain the private park, slopes and front yards. Attachment “I” to Council Pilicy Statement No. 57 PROJECT NAME: Marvista APPLICANT NAME: PROJECT DESCl%IPilON/EXPLANATiON TRC DeveloDment Corporation Please descrjbe fully the proposed project. Include any details necessary to adequately explain the scope and/or operation of the proposed project. You may also include any background information arid supporting statements regarding the reasons for, or appropriateness of, the application. Use an addendum sheet if necessary. . Description/Explanation: , . . Located in the La Costa region of Carlsbad, Marvista will be a small enclave of 17 single family ,’ homes, with a minium lot size of 3,500 square feet. Marvista is designed around 3 small cull-du- sac streets, 32 feet in width. There will be no more than 6 homes on any one cull-du-sac offering their residence a quite friendly atmosphere. Marvista will offer its residences a common area park featuring a shuffle board court and a picnic area for both active and passive usage. In addition, residences will be provided front yard landscaping which will be maintained by the Marvista Homeowners Association, This Homeowners will also be responsible for the maintenance of common area landscaping, slope landscaping and private streets. Mar-vista will offer two floor plans ranging is siie from 1,870 to 2,020 square feet, with each floor plan offering up to 4 bedrooms and 2.5 baths. We have developed 3 distinctive architectural styles for Mat-vista. Both floor plans will offer a California Cottage elevation which is accented by front porches, wood siding and window shutters. In addition to the California Cottage style, Plan one will offer an elevation reflecting the Beach Bungalow style of architecture which is denoted by shingle siding and rock accents. The second elevation for Plan 2 is accented by shutters and rock accents reflecting the California Spanish style of architecture. * Marvista will also include 4 additional homes which is being developed on a lot not contiguous to this project. They are separated by one lot, these 4 units will be offer the same amenities as the 17 units. Currently, the land to be developed consists of four .6 acre lots which have previously been graded in super pad condition. The surrounding area consists of a wide variety of residential developments which include condominiums, townhomes, small lot single family homes and single family homes on large lots. Marvista will blend in will the existing community and offer the residences of Carlsbad uniquely designed moderately priced single family homes. Rev. 4191 ProjDescfrm /3 x _. > tie9 \3 * . I ,: I I I I I I / I 6 4 AFFORDABLE HOUSING AGREEMENT This AFFORDABLE HOUSING MITIGATION AGREEMENT, entered into this day of I 19 I by and between the CITY OF CARLSBAD, a Municipal Corporation (hereinafter referred to as the "City"), and TRC Development Corporation, (hereinafter referred to as the "Developer"), is made with reference to the following: A. Developer is the owner and developer of property generally located at the northwest corner of Unicornio Street and El Fuerte Street and Local Facilities Management Zone 6 in the" City of Carlsbad, in the County of San Diego, California (hereinafter referred to as the "subject property").. The subject property is more particularly described in Exhibit "A", which is attached hereto and is incorporated herein by this reference. B. Developer wishes to construct upon the subject property. The Planning 17 single family homes Commission has approved Carlsbad Tract/Parcel Map CT 97-08,and Planned Development 97-05. The Planning Commission issued these approvals subject to conditions of discretionary approval. C. The Developer was conditioned with the ability to satisfy its affordable housing obligation in accordance with Chapter 21.85 of the Carlsbad Municipal Code by purchasing two and fifty-five one-hundredths (2.55) Affordable Housing Credits (Credits) in the Villa Loma affordable housing project. D. Pursuant to the above-referenced conditions of approval, and in accordance with City Council Policies 57 and 58, . C the Developer has received approval from the City Council by Resolution No. 97- , dated I 1997, to purchase Credits in the off-site project known as Villa Loma. The City controls and has available these Credits in Villa Loma and the project meets the requirements of a Combined Inclusionary Housing Project as defined in Chapter 21.85 of the Carlsbad Municipal Code. Purchasing Credits according to the terms of this Agreement satisfies the developer's affordable housing obligation in accordance with Chapter 21.85 of the Carlsbad Municipal Code and the developer's conditions of approval. NOW, THEREFORE, it is mutually agreed by and between the' undersigned parties as follows: 1. SATISFACTION OF AFFORDABLE HOUSING OBLIGATION AND CONDITIONS OF TENTATIVE MAP APPROVAL THROUGH THE PURCHASE OF AFFORDABLE HOUSING CREDITS Within sixty (60) days of the City Council approval of Developer's request to purchase Affordable Housing Credits, and prior to receiving Final Map approval, Developer shall execute this Agreement and pay to the City the sum of $ 82,161 as its payment for two and fifty-five one-hundredths (2.55) Credits. Execution of this Agreement by the parties and payment of the sum of $ 82,161 to the City by the Developer shall fully satisfy the Developer's affordable housing obligation pursuant to Chapter 21.85 of the Carlsbad Municipal Code and the above-referenced conditions of approval. Upon execution of this Agreement and receipt of the above payment from developer, City will record an appropriate release of the developer's obligation. Failure of the Developer to perform according to the terms of this Agreement will be a failure to satisfy the 17 Tentative Map Conditions with respect to the subject property and Chapter 21.85 of the Carlsbad Municipal Code; and the City may exercise any and all remedies available to it with respect to the Developer's failure to satisfy the Tentative Map Conditions including but not limited to withholding the issue of building permits for the subject property. 2. CITY ACKNOWLEDGES DEVELOPER PAYMENT. By executing this Agreement, City acknowledges receipt of Developer's payment under the terms of this Agreement. 3. DEVELOPER WAIVES RIGHTS TO OTHER METHODS OF SATISFYING AFFORDABLE HOUSING OBLIGATION. ,I By executing this Agreement, developer waives any and all rights to other means of satisfying the affordable housing obligations required by Chapter 21.85 of the Carlsbad Municipal Code and the conditions of approval. 4. HOLD HARMLESS. The undersigned developer (hereinafter referred to as "Indemnitor") , for and in consideration of the City of Carlsbad's approval of this Agreement, and for other good and valuable consideration, the receipt and sufficiency whereof is hereby acknowledged by Indemnitor, does hereby covenant, undertake and agree that it will indemnify and hold harmless (without limit as to amount) the City of Carlsbad and its elected officials, officers, employees and agents in their official capacity (hereinafter collectively referred to as "Indemnitees"), and any of them, from and against all loss, all risk of loss and all damage (including expense) sustained or incurred because of or by reason of any and all claims, demands, suits, actions, judgements 43 . C - and executions for damages of any and every kind and by whomever and whenever made or obtained, allegedly caused by, arising out of or relating in any manner to this Agreement, and to protect and defend Indemnitees, and any of them with respect thereto. 5. NOTICES. All notices required pursuant to this Agreement shall be in writing and may be given by personal delivery or by registered or certified mail, return receipt requested, to the party to receive such notice at the addresses set forth below: TO THE CITY OF CARLSBAD: City of Carlsbad Housing and Redevelopment Department Attn: Housing and Redevelopment Director 2965 Roosevelt Street, Suite B Carlsbad, CA 92008-2389 TO THE DEVELOPER: TRC Development Corporation 26440 La Alemeda, Suite 370 Mission Viejo, California 92691 Any party may change the address to which notices are to be sent by notifying the other parties of the new address, in the manner set forth above. 6. INTEGRATED AGREEMENT. This Agreement constitutes the entire agreement between the parties and no modification hereof shall be binding unless reduced to writing and signed by the parties,hereto. 7. DURATION OF AGREEMENT. This Agreement shall terminate and become null and void when the City has received the payment described in Paragraph 1, except as to the indemnity and hold harmless provisions setforth in Paragraph 4. 8. SEVERABILITY. In the event any limitation, condition, restriction,.' covenant, or provision contained in this Agreement is to be held invalid, void or unenforceable by any court of competent jurisdiction, the remaining portions of this Agreement shall nevertheless, be and remain in full force and effect. IN WITNESS WHEREOF, Agreement to be executed written. the parties hereto have caused this as of the day and year first above DEVELOPER CITY OF CARLSBAD TRC Development Corporation A Municipal Corporation By: Signature By: MARTIN ORENYAK Community Development Dir APPROVED AS TO FORM: Print Name Title: - RONALD R. BALL City Attorney , EXHIBIT “A” PROPERTY DESCRIPTION Lot 518, 519, 520, 521 of La Costa Meadows Unit No. 3 in the City of Carlsbad, County of San Diego, State of California, according to map thereof No. 7076, filed in the office of the County Recorder of San Diego, October 6, 1971. . . . -Vlll- s ’ . .---- --4 - EXHIBIT 3 TO CC AB Minutes of: Time of Meeting: Date of Meeting: Place of Meeting: HOUSING COMMISSION 6:00 P.M. AUGUST 14, 1997 CITY COUNCIL CHAMBERS CALL TO ORDER: Vice Chairperson Wellman called the Regular Meeting to order at 6:03 p.m. PLEDGE OF ALLEGIANCE: The pledge of allegiance was led by Commissioner Walker. ROLL CALL: Present: Vice Chairperson Wellman, Commissioners Calverley, Escobedo, Latas, Rose, Scarpelli, and Walker Absent: Chairperson Schlehuber and Commissioner Noble Staff Present: Debbie Fountain, Acting Housing and Redevelopment Director Craig Ruiz, Management Analyst APPROVAL OF MINUTES: ACTION: Motion by Commissioner Rose, and duly seconded, to approve the Minutes ofthe Regular Meeting of July 10, 1997, as submitted. VOTE: 6-O- 1 AYES: Escobedo, Latas, Rose, Scarpelli, Walker, Wellman NOES: None ABSTAIN: Calverley ACTION: Motion by Commissioner Scarpelli, and duly seconded, to approve the Minutes of the Special Meeting of July 10, 1997, as submitted. VOTE: AYES: NOES: ABSTAIN: 6-O- 1 Escobedo, Latas, Rose, Scarpelli, Walker, Wellman None Calverley COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA: There were no comments from the audience. NEW BUSINESS: 1. MAR VISTA AT LA COSTA - Application to purchase affordable housing credits in the Villa Loma housing project. Craig Ruiz reviewed the background of the request and stated that this Mar Vista project is different from the other Mar Vista project in the City (a 49-unit project near Poinsettia Park). The project being presented is a request to purchase excess affordable housing credits in the Villa Loma Project. There are 16 1 credits remaining from Villa Loma belonging to the City; and Mr. Ruiz explained that the Inclusionary requirement for these 17 single-family homes will result in 2.55 units. If this project is ultimately approved and the City Council approves the payment of the credits, $82,16 1 will go into the Housing Trust Fund. - . - HOUSING COMMISSION MINUTES August 14, 1997 Page 2 Mr. Ruiz explained Council Policy 57 and its three criteria: (1) feasibility of the on-site proposal; (2) relative advantages/disadvantages of an off-site proposal; and (3) advancing the goals and strategies of the City’s Housing policies. Mr. Ruiz discussed the project in relation to each of these criteria pointing out the physical constraints of the site (a sloped area being 20 percent of the site resulting in a two-acre net buildable area for the 17 units) and said that the economics of building on-site would take a substantial outlay by the developer or City contribution. The Council Policy 57 Committee viewed these three criteria and unanimously recommended that the credit option be available for this development; therefore Staff is recommending the Housing Commission approve the purchase of the credits by making a recommendation to the City Council. Vice Chairperson Wellman asked if there were any questions of Mr. Ruiz. Commissioner Walker asked if Villa Loma is the only possible area where credits can be applied. Mr. Ruiz replied that today, yes; and possibly Laurel Tree in the future. Commissioner Walker asked if the $32,220 per unit cost was a developer cost or Villa Loma cost. Mr. Ruiz responded that this is a per unit cost to the City and that the City started out with a base year of $28,000 for each unit. He added that every year there is an accruing interest, and the credit is to recover the City’s actual investment plus interest over time. Commissioner Walker asked if it would cost the developer more to develop these 2.55 units on-site. Mr. Ruiz responded that the developer has not proposed an on-site option and said that most likely a 2.55 unit project would definitely cost more than $32,220 per unit. Mr. Ruiz added that the cost is based on the Villa Loma units to recover the City’s investment. Commissioner Calverley mentioned that of the 161 units available for purchase at Villa Loma, a large number are set aside in reserve just in case Laurel Tree doesn’t make it. Mr. Ruiz responded that technically there are 135 units being held for Laurel Tree; however, Laurel Tree is in escrow now and by the end of the month Staff expects those units to be released. Vice Chairperson Wellman opened the public testimony and issued the invitation to speak. Scott Redsun, President, Avalon Homes/TRC Development, 26440 La Alameda, Suite 370, Mission Viejo, CA, 92691, addressed the Commission and described the project as four individual lots at about .6 acres with 20 percent taken up by slope. The surrounding area is a mixture of three- to four-story condos, some high-density detached houses, some townhomes, some condos. Further down the street there are older, very large single-family homes. Mr. Redsun stated that the project has tremendous constraints and TRC’s expertise is in high-density detached housing and in-fill sites. TRC has worked diligently with the City and with the City guidelines and code restraints to effectively utilize this site as efficiently as possible. The options for affordable housing are to sell the units under the guidelines, to create granny flats, or to put in a two-unit apartment complex. Addressing each of these issues, Mr. Redsun stated that land bases and land prices of today do not allow on a small site the ability to create off-site areas. The footprint of the homes are too small to create a separate unit above or a granny flat, and have to be created over a two-car garage. Mr. Redsun said they would have to build a one-unit granny flat with a single bedroom house, which is not a viable solution in today’s market. This is going to be moderately-priced housing with square footage ranging from 1,800 to 2,000 square feet. The City’s Planning Department will concur that the developer is “stretching the envelope” as much HOUSING COMMISSION MINUTES August 14,1997 Page 3 as possible to provide moderately-priced housing, Mr. Redsun said. Given the constraints of the site, Mr. Redsun said TRC is here to ask for the credits, which is the best way to utilize the site and the policies of the City. Vice Chairperson Wellman asked if there were questions of Mr. Redsun. Commissioner Scarpelli asked if the four lots would be subdivided into 17 lots. Mr. Redsun responded that they are re-subdividing into 17 lots, in what is called a PUD with a homeowner’s association, and a small tot lot. Vice Chairperson Wellman asked if TRC is exercising a density bonus with the development of the lots. Mr. Redsun responded negatively. There being no other persons desiring to address the Commission on this topic, Vice Chairperson Wellman declared the public testimony closed and opened the item for discussion among the Commission members. Vice Chairperson Wellman and Commissioner Scarpelli commented that buying units in Villa Loma is the best choice for this project--the developer meets their requirement for the mandate of the affordable housing, Villa Loma has been built, and the units are there and available to be used. Commissioner Escobedo asked for clarification of the fourth paragraph of the project Description/Explanation, “Mat-vista will also include 4 additional homes which is being developed on a lot not contiguous to this project. ,They are separated by one lot...” Vice Chairperson Wellman asked the applicant to respond. Mr. Redsun replied that there are actually six vacant lots in a row on Unicomio. One lot on the comer TRC is purchasing, which is being processed. Because it is not contiguous, it has to be processed under a minor subdivision, which is a separate application and a separate process. Because it is under seven units it automatically meets the requirement of paying its percentage of credit. It is included in this description, which was used for submitting the application for the tentative map. Even though they are not contiguous, they are separate applications from the tentative map standpoint and from a processing standpoint. There will be four units that will be part of the same association and be tied together; but from a technical processing standpoint, they are considered separate and distinct houses. Vice Chairperson Wellman asked if there is existing housing in between. Mr. Redsun responded that there is a vacant lot which he could not get the landowner to sell. Commissioner Escobedo asked about the credits. Mr. Ruiz responded that when a project has over seven units, it has to go through the process discussed previously-- either to provide or purchase excess credits. The other project, because it is a separate application and less than seven units, can pay a fee by right. The developer has two distinct projects going in two separate paths; even though it’s the same builder, same design, same general vicinity, they have two different criteria. One is looked at as 17 units, the other as less than seven. ACTION: Motion by Commissioner Walker, and duly seconded, to adopt Resolution No. 97-009, recommending that the City Council approve a request by TRC Development Corporation to 25 . HOUSING COMMISSION MINUTES August 14, 1997 Page 4 VOTE: AYES: NOES: ABSTAIN: purchase 2.55 affordable housing credits in the Villa Loma Housing Project in order to satisfy the affordable housing obligation of the Mar Vista at La Costa Project under the City’s Inclusionary Housing Ordinance. 7-o-o Calverley, Escobedo, Latas, Rose, Scarpelli, Walker, Wellman None None 2. 2 OCEAN BLUFF - Application to purchase affordable housing credits in the Villa Loma housing project. reviewed the background of the request and stated that this project went through the same process as the t La Costa project just presented. Mr. Ruiz described the project as 92 single-family homes on a 3 l-acre mes will be on lots of between 7,500 and 13,000 square feet. The Inclusionary requirement on this project ith a credit price of $32,220 per unit. If approved by the City Council, a payment of $523,252 will go ousing Trust Fund. Mr. Ruiz stated is project was originally before the Commission in February 1996. To satisfy the Inclusionary proposed the 92 single-family homes and a 16-unit apartment complex. At that time, there was as done that showed the cost to build the project, and there was no mention of how the project was going to be d. When the project was approved by the City Council in April of 1996, they approved the Planning Commiss tion that said the developer had the option of building the 16-unit apartment complex or purchasing housing n approved Combined Project, if approved through the Combined Project Review process. The developer is no ting to purchase credits in the Villa Loma project. Per the developer’s request, the proposed affordable hou not feasible and the developer would like to purchase credit as opposed to the previous approvals they to construct the 16 units on site. Mr. Ruiz explained that Council Policy as discussed earlier, was also applied to this project. Mr. Ruiz stated that the small development of this 16-unit d nt makes it economically unfeasible due to the significant financial subsidy which would be required for the pr f about $55,000 a unit. Mr. Ruiz added that the year-old proforma is still relatively accurate. In addition, small pr have more difficulty generating interest from funding sources. Mr. Ruiz explained the advantages and disadvant the off-site proposal as being similar to what was heard with the previous project. Vice Chairperson Wellman asked if there were any questi Commissioner Calverley asked how the applicant had proven t as not feasible to build. Mr. Ruiz responded that this information is based upon the proforma an analysis. Staff believes that the purchase of credits is the best option for this project. Commissioner Scarpelli asked how the $500,000 in credits from this project Ms. Fountain responded that there are several projects that have money committed i.e., the Laurel Tree project, the Sambi project (a first-time homebuyer project). Any money coming in w e used on those existing projects; then future projects would be looked at. Ms. Fountain added that there are qui rejects on the horizon that will potentially ask for money; one being Poinsettia Properties, a log-unit apartmen 26