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