HomeMy WebLinkAbout1998-07-28; City Council; 14792; Kelly Ranch Inclusionary Housing Requirement- "..
dTY OF CARLSBAD - AGENtA BILL
46# 14,792 DEPT. HD. TITLE: REQUEST TO APPROVE AN AFFORDABLE HOUSING
JITG. 71 281 98 AFFORDABLE APARTMENT UNITS NECESSARY TO
SDP 98-4
CITY MGR. FOR THE KELLY RANCH PROJECT IEPT. HIRED
SATISFY THE INCLUSIONARY HOUSING REQUIREMENT CITYATTY. @' AGREEMENT 'FOR THE DEVELOPMENT OF 132
RECOMMENDED ACTION:
That the City Council ADOPT Resolution No. 98-257 , to APPROVE the Affordable Housing
Agreement for the development of 132 Affordable Apartment Units necessary to satisfy the
lnclusionary Housing Requirement for the Kelly Ranch Project.
ITEM EXPLANATION:
The Kelly Land Company is proposing to construct up to 877 housing units for the Kelly Ranch Project.
The proposal includes 382 single family homes and a 495 unit apartment project. All of the single
family homes will be sold at "market rate" prices. The apartment project will be a mixed-income
development and will include 363 market rate units and 132 units affordable to low income households
(80% of the Area Median Income). The 132 affordable units will be disbursed throughout the apartment
project and include 1, 2 and 3 bedroom units to satisfy the inclusionary housing requirement for the
Kelly Ranch Project.
To date, the developer has received approval of a tentative map for the development of 144 single
family homes in Planning Area E (see map provided as Exhibit 3). Before the final map may record,
however, an Affordable Housing Agreement must be approved by the City Council, executed and then
recorded against the Kelly Ranch property. With the provision of additional security by the developer
(as explained below) and recordation of the attached Affordable Housing Agreement, market rate
building permits will be released for Planning Area E only. No additional Planning Areas will be
released for development until the Site Development Plan is approved for the affordable housing.
Affordable Housina Aareement
When an affordable housing agreement is presented to the City Council for approval, there is also a
corresponding approved Site Development Plan (SDP), or a SDP which has been recommended for
approval. The SDP provides the details of the Affordable Housing Project as related to unit floor plans,
bedroom size, design, parking, etc. In this particular instance, City staff has not completed its review of
the related Kelly Ranch SDP and, therefore, has not provided a formal recommendation for approval.
However, in order to allow the Kelly Land Company to proceed, staff agreed to process the Agreement
with the proposed SDP submitted by the Kelly Land Company. However, it should be noted that the
SDP must still continue through the formal staff review process for a complete identification of issues
and concerns. The SDP may need to ultimately be changed based on staffs complete review.
The Affordable Housing Agreement, together with the proposed SDP, includes information on how the
affordable housing is to be provided and the timing for its construction as related to market rate
development. The lnclusionary Housing Ordinance authorizes the Community Development Director to
execute affordable housing agreements. In the past, the Community Development Director has
executed only those agreements which set forth the basic requirements of the developer and are
consistent with the lnclusionary Housing Ordinance. Due to the fact that the proposed agreement
represents a change in policy, staff believes that City Council action is required to approve the subject
Agreement.
The draft Affordable Housing Agreement prepared by staff was not entirely acceptable to the
developer. However, since the developer was eager to obtain approval of an Agreement, it was
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forwarded to the Housing Commission for review as recommended by staff. The key terms
incorporated into the draft agreement are highlighted below. Issues related to the terms of the
Agreement raised by the developer and the public during the Commission meeting are also outlined
below.
Kev Terms of Aqreement
Total Units and Location. A total of 132 apartment units (out of 495 apartment units) in Planning Areas
D, G and H will be restricted and affordable to households with incomes not exceeding 80% of the Area
Median Income for 55 years.
Security. Because Planning Area E will be allowed to move forward, ahead of approval of the SDP for
the affordable housing, the developer must provide additional security to ensure satisfaction of the
affordable housing requirement (22 units) for Planning Area E. The security required is a $220,000
cash deposit or letter of credit and a grant deed executed for Planning Areas D, G and H. The security
is released upon approval of the required SDP for the affordable housing project.
Phasing. Upon approval of the affordable housing agreement by the City Council and provision of the
security noted above, building permits can be released for Planning Area E (144 units). Once the SDP
is approved, the apartment project site is graded, and the site is posted with signs indicating the
forthcoming apartment project, an additional 242 building permits can be released. After building
permits have been issued and the foundations for at least 132 apartment units are complete, inspected
and approved, another 346 building permits can be released. Finally, upon final Certificate of
Occupancy and rent restrictions on a total of 132 units, the remaining 145 building permits can be
released for market rate housing within Kelly Ranch.
Housinq Commission Review
On July 9, 1998, the Housing Commission received public input and reviewed and discussed the draft
Affordable Housing Agreement for Kelly Ranch. During the Commission meeting, there were three key
issues discussed as related to the Agreement - Phasing, Additional Security and Affordability.
Phasinq. The first issue discussed by the Commission was the developer's request that the subject
Agreement be amended to clarify language regarding the project's construction phasing and the timing
for provision of the affordable units. The Commission concurred with the developer's request and
recommended amendment of Exhibit B to the agreement as indicated in Exhibit 4. For information
purposes, Exhibit 4 to this report is a redlined version of the Affordable Housing Agreement which
indicates corrections or changes made to the agreement subsequent to review and action by the
Housing Commission. Exhibit 5 represents the final agreement which is recommended for approval by
the City Council.
Additional Security. The second issue was related to the provision of the additional security required for
Planning Area E. In the past, a development has received approval of their Affordable Housing
Agreement and the SDP for their affordable housing project before a portion of building permits for the
market rate development may be issued and construction may begin. In this instance, the developer is
requesting that the market rate development in Planning Area E (144 units) be permitted to commence
once the Affordable Housing Agreement is approved, but ahead of formal approval of the SDP. To
allow for this request, staff has recommended that the developer be required to provide additional
security in the form of a cash deposit or letter of credit in the amount of $220,000, and documentation
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to execute a grant deed for Planning Areas D, G and H within the Kelly Ranch Project. The security will
be held until the SDP is approved by the City Council for the proposed affordable housing project. At
the discretion of the City, the City may assume ownership of the land and obtain the cash, if the SDP is
not approved by June 1. 2000. If the SDP is approved by the Council, the security (cash and land) is
released upon approval.
The Developer does not agree with the security requirement. The developer has proposed that the
security be limited to $220,000 and the grant deed of land for Planning Area D only. The Developer
believes that Planning Area D and $220,000 are more than adequate security for the 22 units required
for Planning Area E. It is staffs position, however, that the developer's proposal is not adequate to
insure that the required number of affordable units (22 units) could be constructed. The Developer
requested consideration from the Housing Commission of the alternate security proposal noted above.
The Commission concurred with staffs recommendation on the required security and recommended no
changes to the Agreement on this issue.
Affordabilifv. The final issue of Commission discussion related to the level of affordability for the
apartment project and a desire to have lower levels of affordability (i.e. 60% or 70% of the Area Median
Income). The City's lnclusionary Housing Ordinance (Carlsbad Municipal Code Chapter 21.85)
requires that rent levels be restricted to a minimum of 80% of the Area Median Income. As a result of
testimony from a few Section 8 Rental Assistance participants regarding affordable housing in
Carlsbad, the Housing Commission requested that staff meet with the developer to 1) discuss the
potential for reducing the rent levels of a specified number of units within the proposed affordable
housing project in exchange for financial assistance from the City, and 2) to obtain agreement from the
developer to participate in the Section 8 Rental Assistance Program. The Commission agreed to allow
the Affordable Housing Agreement to move forward to the City Council without any recommendation on
reduced rents, or a requirement to participate in the Rental Assistance Program. However, the
Commission did request that staff meet with the developer in an effort to reach a favorable agreement.
If an agreement can be reached between staff and the applicant, the agreement will be returned to the
Housing Commission at a later date for a recommendation on any required financial assistance.
Housincl CommissionlStaff Recommendation
The Housing Commission took action at their July gth meeting to recommend approval of the attached
Affordable Housing Agreement, with the understanding that the final SDP would be returned to them at
a later date for review. It is staffs recommendation that the City Council take action to approve the
attached Affordable Housing Agreement (Exhibit 5) as recommended for approval by the Housing
Commission. No action is requested at this time on the proposed Site Development Plan.
FISCAL IMPACT:
The approval of the Affordable Housing Agreement will have no fiscal impact to the City.
EXHIBITS:
1. City Council Resolution No: 98-257
2. Housing Commission Resolution No. 98-010
3. Kelly Ranch Locator Map
4. Affordable Housing Agreement (Redlined)
5. Affordable Housing Agreement
6. Housing Commission Staff Report of July 9, 1998, with reduced Site Development Plan
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CITY COUNCIL RESOLUTION NO. 98-257
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, TO APPROVE THE AFFORDABLE
HOUSING AGREEMENT FOR THE DEVELOPMENT OF 132
AFFORDABLE APARThENT UNlTS NECESSARY TO SATISFY THE
MCLUSIONARY HOUSING REQUIREMENT FOR THE KELLY
RANCH PROJECT.
CASE NO: SDP 98-4
APPLICANT: KELLY LAND COMPANY & FTR DEVELOPMENT
WHEREAS, the City of Carlsbad has identified a need to provide housing which is af€ordable
to low income households in a variety of different forms; and
WHEREAS, a project known as the “Kelly Ranch Project” has applied, or will apply, for
approval to develop 877 housing units on property generally the south of the fiture extension of
Cannon Road, and west of El Camino Real; and
WHEREAS the development of 877 housing units will require the development of 132 homes
affordable to low income households as defined by Carlsbad Municipal Code Chapter 21.85; and
WHEREAS, Carlsbad Municipal Code Chapter 21.85 requires the developer of a residential
development to receive approval of an Affordable Housing Agreement which details how the
requirements of the Inclusionary Housing ordinance shall be met; and
WHEREAS, on July 9, 1998, the Housing Commission did hold a public meeting to consider a
request to approve the Wordable Housing Agreement for the Kelly Ranch Project; and
WHEREAS, at said public m&g, upon hearing and considering all testimony, if any, of all
persons desiring to be heard, said Housing Commission considered all factors relating to said request
and voted to approve said agreement; and
WHEREAS, on July 28, 1998, the City Council did hold a public meeting to consider a request
to approve the Affordable Housing Agreement for the Kelly Ranch Project; and
WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all
mns desiring to be heard, said Council considered all factors relating to said request:
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of
Jarlsbad, California, as follows:
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4.
5.
The above recitations are hue and correct.
The request for approval of the Affordable Housing Agreement for the KeUy Ranch
Project was recommended for approval by the Housing Commission of the City of
Carlsbad on July 9, 1998 as recorded in Housing Commission Resolution No. 98-010.
The Affordable Housing Agreement has been determined to be consistent with the
goals and objectives of the City of Carlsbad's Housing Element and Consolidated Plan,
the Inclusionary Housing Ordinance, and the Carlsbad General Plan.
The request for approval of the Affordable Housing Agreement for the Kelly Ranch
Project will satisfy the requirements of the City's Inclusionary Housing Ordinance, as dehed in Carlsbad Municipal Code Chapter 21.85, for the development 877 housing
units, of which a minimum 132 units will be affordable to low income households.
That based on the information provided within the City Council Staff Report and the
testimony presented during the public meeting of the City Council, the City Council
hereby APPROVES the Affordable Housing Agreement for the Kelly Ranch Project
between the City of Carlsbad, Kelly Land Company and F'TR Development as required
for the of 877 housing units, of which a mioimum 132 units will be affordable to low
income households.
That the City Council hereby authorizes the Community Development Director to
execute the AtTordable Housing Agreement, in substantially the form presented to the
City Council on July 28, 1998, and subject to review and approval by the City
Attorney.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council
of the City of Carlsbad, Califomia, held on the 28* day of July, 1998 by the following vote, to wit:
AYES: Council Members Lewis, Finnila, Nygaard, and Hall
NOES: None
ABSENT: Council Member Kulchin
ABSTAIN:
A'ITEST:
A :/> "J
I. * c-
ALETHA L. RAUTENKRhZ, CITY CLERK '
(SEAL)
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- Exhibit 2
HOUSING COMMISSION RESOLUTION NO. 98410
THAT THE HOUSING COMMISSION RECOMMEND TO THE
CITY COUNCIL APPROVAL OF AN AFFORDABLE HOUSING
AGREEMENT FOR THE DEVELOPMENT OF 132
AFFORDABLE APARTMENT UNITS NECESSARY TO SATISFY
THE INCLUSIONARY HOUSING REQUIREMENT FOR THE
KELLY RANCH DEVELOPMENT.
APPLICANT: KELLY LAND COMPANY AND PTR
CASE NO.: SDP 98-04
DEVELOPMENT
WHEREAS, the developer of the Kelly Ranch Development has proposed to construct 132
apartment units affordable to lower income households as a means to satisfy their affordable housing
obligation as permitted by Carlsbad Municipal Code Section 21.85 of the City’s Inclusionary Housing
Ordinance; and
WHEREAS, the Affordable Housing Agreement for the developer’s proposal to construct said
units has been submitted to the City of Carlsbad’s Housing Commission for review and consideration;
and
WHEREAS, said Housing Commission did, on the gib day of July, 1998, hold a public meeting
to consider the Affordable Housing Agreement for said proposal to construct 132 affordable apartment
units; and
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 proposal to
construct said affordable housing units
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 Affordable Housing Agreement is consistent with the goals and objectives of the
City of Carlsbad‘s Housing Element and Consolidated Plan, the Inclusiomy Housing
ordinance, and the Carlsbad General Plan.
3. The Affordable Housing Agreement provides a total of 132, one, two and three
bedroom affordable apartment units. The project, therefore, has the ability to
effectively Serve the City’s housing needs and priorities as expressed in the Housing
Element and the Consolidated Plan.
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and testimony presented during the public meeting of the Housing Commission on July
9, 1998, the Housing Commission ADOPTED Resolution No. 98-010, recommending
APPROVAL to the City of an Affordable Housing Agreement for the potential
development of 132 affordable apartment units in order to satis@ the requirements of
the inclusionaty housing requirement for the Kelly Ranch Development.
5. That the Housing Commission recommends tha! the City Manager or his designee be
authod by the City Council to execute the Affordable Housing Agreement as
presented by the applicant to the Commission on July 9, 1998, and subject to review
and approval by the City Attorney.
General CQndition:
1. That Attachment C of the Affordable Housing Agreement be amended as
proposed by the Developer.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Commission of
the City of Carisbad California, held on the 9' day of July, 1998, by the following vote, to wit:
AYES: Chairperson Dunn-Wehnan, Commissioners: Calverley, Latas, Noble, Rose
and Walker.
NOES: None.
ABSENT: Commissioners: Escobedo and Scarpelli.
ABSTAW: None.
KATHLEEN DUNN-WELLMAN, CHAIRPERSON
CARLSBAD HOUSING COMMISSION
DEBBIE. FOUNTAIN
HOUSING AND REDEVELOPMENT DlRECTOR
HC RESO. NO. 98-010
PAGE 2
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\? \ Exhibit 3
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EXHIBIT 4
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Carlsbad
Ann: City Clerk
City Clerk's Office
Carlsbad, California 92008
I200 Carlsbad Village Drive
ABOVE SPACE FOR RECORDER'S USE
AFFORDABLE HOUSING AGREEMENT
IMPOSING RESTRICTIONS ON REAL PROPERTY
This AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS
ON REAL PROPERTY ("Agreement"), entered into this day of ,1998
(the "Effective Date"), by and between the CITY OF CARLSBAD, a Municipal Corporation
(hereinafter referred to as the "City"), KELLY LAND COMPANY, a Delaware corporation
(hereinafter referred to as "Kelly"), and PTR DEVELOPMENT SERVICES
INCORPORATED, a Delaware corporation (which is affiliated with Security Capital Pacific
Trust, a Maryland real estate investment trust) (hereinafter referred to as "PTR"), is made with
reference to the following:
A. Kelly is the record owner of certain real property located in the City of
Carlsbad, California (the "Kelly Ranch") described in "Exhibit A," which is attached hereto
and incorporated herein by this reference. The Kelly Ranch consists of several planning areas,
also designated in "Exhibit A," As used herein, the term "Planning Area" shall refer, as
indicated, to one or more of such planning areas so designated on "Exhibit A," The various
Planning Areas as shown on "Exhibit A" either are, or will become, separate legal parcels in
accordance with the applicable legal requirements of the State of California and the City.
B. Upon their creation as separate legal parcels, Kelly intends to convey or cause
conveyance of record title to Planning Areas K and L, respectively, to other persons pursuant
to contractual commitments not related to this Agreement. Any further development activity
with respect to either Planning Area K or Planning Area L will be the responsibility of the
respective transferee. All of the Planning Areas of the Kelly Ranch, other than Planning
Areas K and L, are herein referred to collectively as the "Kelly Ranch Project." Kelly is the
developer of the Kelly Ranch Project.
C. The parties anticipate that the total number of dwelling units for the Kelly
Ranch Project will not exceed eight hundred seventy-seven (877). In order to satisfy the
affordable housing requirements for the entire Kelly Ranch Project, it is the intent of the
parties that a combined inclusionmy project (the "Combined Project") be developed on
Planning Areas D, G and H, for the development of Affordable Units (as hereinafter defined)
in relation to unrestricted units ("Market Units") in the Kelly Ranch Project (including the
Combined Project) according to the chart set forth in "Exhibit B" . The parties acknowledge
that the Affordable Units in the Combined Project will satisfy the inclusionary housing
requirements for the Kelly Ranch Project, so long as the aggregate number of dwelling units
does not exceed eight hundred seventy-seven (877) for the Kelly Ranch Project.
D. Kelly has filed a separate application for tentative subdivision map and site
plan with respect to Planning Area E. As of the Effective Date, Planning Area E is the subject
of certain development approvals received from the City including without limitation: the
Tentative Subdivision Map (C.T. 96-07), Planned Unit Development Permit (PUD 97-04),
Hillside Development Permit (HDP 96-13) and Coastal Development Permit (CDP 96-13),
approved by Resolution No. 96-68, adopted by the City on April 7,1998.
E. Kelly has filed a separate application for a General Plan Amendment, rezoning
and a master tentative map (the "Master Tentative Map") with respect to Planning Areas D, F,
G, H, I and J, as well as K and L. Planning Areas K and L are being processed merely to
create them as legal parcels, with the Master Tentative Map intended to note that further
mapping of parcels K and L, respectively, will be required prior to any development of them.
Kelly has also filed a proposed amendment to the Zone 8 Local Facilities Management Plan.
In addition, Kelly and PTR have filed or intend to file a separate application for approval of a
site development plan with respect to Planning Area J, a planned development permit with
respect to Planning Area I and a site development plan for Planning Areas D, G and H.
F. Kelly and PTR have entered into that certain Purchase Agreement dated , 1998 (the "Purchase Agreement"), whereby Kelly has agreed to sell
Planning Areas D, G, H, I and J to PTR subject to the terms and conditions set forth therein.
Among other things, said terms require that PTR take Title to all the Master Tentative Map
land, but that concurrently with recordation of the final map for such land (i) PTR will Deed
Planning Area F to Kelly, and (ii) PTR will Deed Planning Areas K and L to the Kelly Family
Trust and to Wayne Callaghan, respectively.
G. It is anticipated that the Combined Project will be developed by PTR within
Planning Areas D, G and H (the "Security Property").
H. The City issued an approval for Planning Area E subject to certain conditions
of approval, including a requirement that Kelly enter into an Affordable Housing Agreement
in which Kelly causes to be provided at least twenty-two (22) units affordable to low income
households (the "Planning Area E Inclusionary Requirement").
NOW, THEREFORE, in consideration of the mutual covenants and promises of the
parties herein contained, it is mutually agreed by and between the undersigned parties as
follows:
1. Satisfaction of Affordable Housing Oblieation and Conditions of Auuroval. In order to
satisfy the Conditions of Approval for CT 96-07 and the requirements of the City’s Inclusionary
Housing Ordinance, Carlsbad Municipal Code Chapter 21.85, the developers of Kelly Ranch
shall provide a minimum of one hundred thirty-two (132) units which shall be restricted and
affordable to lower income households according to the schedule and terms contained herein.
This Agreement is an Affordable Housing Agreement pursuant to Section 21.85.030(b)(5) of
Chapter 21.85 of the Carlsbad Municipal Code. Developer shall submit this Agreement to the
City and this Agreement shall be recorded concurrently with the recordation of the final map for
Planning Area E. I
2. Inclusionary Reauirements for Planning Area E. Prior to the recordation of the
Affordable Housing Agreement, Kelly has voluntarily agreed to provide additional security to
insure the construction of the Affordable Units required for -Planning Area E. The I
additional security will include (1) a cash deposit or letter of credit in the amount of $220,000,
(2) The recordation of a deed restriction, in a form acceptable to the City of Carlsbad, upon
S4ll;tgesPlanning Areas D, G and H which will limit development to that which can satisfy the I
affordable housing requirement for the Kelly Ranch Project, and (3) executed and acknowledged
grant deeds from Kelly and PTR to the City for Planning Areas D, G, and H, suficient to convey
title to the City (the “Security Grant Deeds”). The City shall hold the Security Grant Deeds as
additional security for the Developer’s construction of the Affordable Units required for Planning
Area E and shall not accept the grant4 deeds or record them in the Official Records of the County
of San Diego unless it so elects in t6e event the Developer fails to obtain Site Development Plan
approval for the Combined Project prior to June 1,2000, as required pursuant to Section
2.1 below. The acceptance and recordation of the Security Grant Deeds shall be solely at the
discretion of the City. The additional security is not an In-Lieu contribution as defined by
Chapter 21.85 of the Carlsbad Municipal Code. Subsequent to the recordation of this
Agreement, the developer of Planning Area E shall be entitled to construct up to a maximum of
one hundred forty-five (145) Market Units.
2.1 Satisfaction of the Inclusionarv Reauirements for Plannine. Area E Upon City
approval of a Site Development Plan for the Combined Project, as defined in Section 4.1 below,
City inspection and final approval of the grading of J”P1anning Areas D, G and H, and the I
installation by Kelly of one or more signs on the subject property acceptable to the City
identifying the future apartment project to the satisfaction of the City, the additional security
obligations described in paragraph 2 above shall be released by the City. In the event that the
Site Development Plan for the Combined Project is not approved prior to July 1,2000, the City
may cause Kelly to forfeit the seettfleicdeposit - and at the discretion of the City, the City may I
record the Security Grant Deeds, or extend the deadline and require the developer to continue
efforts to obtain approval of a Site Development Plan in the City’s sole discretion.
3. Inclusionarv Reauirements for Planning Areas A, D, G, H. I and J
3.1 Conveyance to PTR. In order to satisfy the Inclusionary Ordinance with respect
to the balance of the entire Kelly Ranch Project, and subject to the terms and conditions set forth
in the Purchase Agreement, Kelly shall convey the Security Property to PTR for development of
the Combined Project. When the obligations set forth below have been satisfied with respect to
the Combined Project, the Combined Project shall be deemed to satisfy the Inclusionary
Ordinance and all inclusionary housing requirements for the remainder of the Kelly Ranch
Project.
4. Terms Governing Provision of Affordable Units.
4.1 Number of Affordable Units. The Combined Project shall include up to four
hundred ninety-five (495) rental housing units, a minimum of one hundred thirty-two (132) of
which shall be rent-restricted and affordable to lower income households as required and defined
by Chapter 21.85 of the Carlsbad Municipal Code (the “Affordable Units”), and as shown in
“Exhibit B”. The requirement for one hundred thirty-two (132) Affordable Units is based on
fifteen percent (15%) of eight hundred seventy-seven (877) aggregate dwelling units (including
the Affordable Units) for the entire Kelly Ranch Project. The maximum number of dwelling
units for the entire Kelly Ranch Project shall not exceed eight hundred seventy-seven (877). The
maximum number of Market Units shall not exceed seven hundred forty-five (745). If the total
number of housing units increases or decreases within the Kellv Ranch Proiect, the minimum
number of affordable housing units shall increase or decrease accordingly, but shall never be less
than 15% of the total number of housing units. This agreement shall be amended to reflect any
changes to the total number of housing units and applicable affordable housing requirement.
Amendments to this agreement to reflect changes in the total number of housing units and the
minimum number of affordable units may be executed by the Community Development Director,
subiect to the review and approval of the City Attorney.
4.2 Location of Affordable Units. The Combined Project shall be located in Planning
Areas D, G and H. Specific Affordable Units within the Combined Project shall be distributed
throughout the Combined Project, and shall be as provided as designated in an approved Site
Development Plan. Modifications to the location and timing of the Affordable Units shall be
subject to the prior written approval of the -Community
Development, with a recommendation from the Housing and Redevelopment Director. I
4.3 Size and Bedroom Count. The Affordable Units in the Combined Project shall
have the number of bedrooms and square footage as shown in “Exhibit C”.
4.4 Affordability Reauirements. The Affordable Units shall be available to
households with incomes not exceeding 80% of the median income for San Diego County,
adjusted for actual household size. Monthly Rents of the Affordable Units shall not exceed
1/12th of 30% of 80% of median income for San Diego County, adjusted for assumed household
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size appropriate for the unit. For purposes of this Agreement, “Rent” shall include a utility
allowance as established and adopted by the City of Carlsbad Housing Authority , as well as all
monthly payments made by the tenant to the lessor in connection with use and occupancy of a
housing unit and land and facilities associated therewith, including and separately charged fees,
utility charges, or service charges assessed by the lessor and payable by the tenant. Median
income figures shall be those published annually by the United States Department of Housing
and Urban Development. Assumed household size figures shall be provided to Developer upon
request to the City of Carlsbad Housing and Redevelopment Department. With respect to each
Affordable Unit, the affordability requirements of this Section 4.4 shall continue for fifty-five
(55) years from the date of issuance of a Certificate of Occupancy by the City for such unit or
another comparable unit based upon substitution provisions pursuant to the Regulatory
Agreement. The affordability requirements of this Section 4.4 shall be set forth in the
Regulatory Agreement between the Developer or its successor and the City, provided for in
Section 5 below, which shall supersede this Agreement upon recordation of the Regulatory
Agreement.
4.5 Schedule for Developing Affordable Units.
4.5.1 Prior to recordation of this agreement, Kelly shall provide the additional
security as described in Section 2 of this Agreement.
4.5.2 Concurrent with the recordation of the first map for Kelly Ranch, this
agreement shall be executed and recorded against the Kelly Ranch Project.
4.5.3 Prior to the Construction of any units within any Planning Area, other than
Planning Area E, the developer of the Combined Project shall have received approval for a Site
Development Plan for the Combined Project. The Site Development Plan shall designate the
location, size and phasing of construction of the Affordable Units.
4.5.4 The Affordable Units shall be developed in accordance with the approved
Site Development Plan for the Combined Project and as more fully detailed in Exhibit B of this
agreement. The release of building permits for all units within the Kelly Ranch Project shall be
in accordance with Exhibit B of this Agreement. Subject to tentative receipt of all necessary City
and other public agency approvals, PTR intends to complete the Combined Project by Jikembe
October -3 1,2001Q. -
4.5.5 The first 22 units completed within the Combined Project shall be
designated Affordable Units to satisfy the a”e inclusionan housing requirement of Vd-laga
Planning Area E.
5. City Approval of Documents The following documents, in form and substance
acceptable to the City, shall be used in connection with the rental of Affordable Units. Such
documents shall be prepared by the PTR and shall be submitted to the Housing and
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Redevelopment Director for review and approval no later than the start of construction of the
Affordable Units.
5.1 A marketing plan consistent with the terms of this Agreement, establishing the
process for seeking, selecting and determining the eligibility of tenants of the Affordable Units.
5.2 Form of Rental Agreement.
5.3 A Property Management Plan.
5.4 A Form of Regulatory Agreement between PTR and City (the "Regulatory
Agreement"), following the format designated by City and provided to PTR.
5.5 Any of the documents identified in section 5 may be revised by PTR from time to
time with the prior written approval of the Housing and Redevelopment Director.
6. Reauest for Bond Issuance Particiuation Upon receipt of a written request from PTR,
the City may consider to make all necessary applications for the issuance of revenue bonds
pursuant to Health and Safety Code Section 52075, a. %
7. Rental Terms. The Affordable Units shall be rent-restricted as described in "Exhibit D'
for a period of fifty-five (55) years commencing on the date the certificate of occupancy is issued
for the first Affordable Unit. The Schedule of Maximum Eligible Tenant Incomes and
Affordable Rents (the "Schedule") attached hereto and incorporated herein as "Exhibit D" sets
forth the City's requirements for maximum household income of Tenants of the Affordable Units
("Eligible Tenants") and the methodology for calculation of the rents of Affordable Units which
will be affordable to each of the Eligible Tenants (the "Affordable Rents"). The Affordable
Rents will vary depending on the number of bedrooms in the Affordable Unit, and the applicable
information from "Exhibit D' as the same varies from time to time. The Schedule also includes
initial estimates of Eligible Tenant actual incomes and the corresponding Affordable Rents. The
final Schedule shall be established prior to lease up based on the San Diego County Area Median
Income and the cost factors applicable at the time. The final Schedule shall be submitted by PTR
and approved by the City's Housing and Redevelopment Director.
8. Reporting and Compliance Monitoring. PTR shall submit an annual report to the City as
required under the Regulatory Agreement, identifying which units are Affordable Units, the
monthly rent, vacancy information for each Affordable Unit, and monthly income of the tenants
of each Affordable Unit for the prior year, together with such other information as reasonably
required by the City to verify compliance with this Agreement.
9. Release of Subiect Prouertv From Agreement. The covenants and conditions herein
contained shall apply to and bind the heirs, executors, administrators, successors, transferees and
assignees of all the parties having or acquiring any right, title or interest in or to any part of the
c
Subject Property, and shall run with and burden the Subject Property, excluding Planning Area
E- until terminated in accordance with the provisions hereof. Prior to the issuance of building
permits, Developer shall expressly make the conditions and covenants contained in this
Agreement a part of any deed or other instrument conveying any interest in the Subject Properly,
excluding Planning Area E. Notwithstanding anything to the contrary set forth in this Agreement,
individual purchasers of single-family units pursuant to an approved public report in compliance
with the California Subdivided Lands Act, and mortgage lenders holding deeds of trust on such
individual units after sale to such purchasers, shall not be subject to the terms of this Agreement;
and the terms of this Agreement shall be of no further force or effect with respect to such
completed unit on the date of the recordation of a deed to the individual purchaser. Upon final
inspection and issuance of a certificate of occupancy for 132 Affordable Units, all Planning
Areas, with the exception of Planning Areas D, G and H, shall be released from the burdens of
this Agreement. The burdens of this agreement shall remain in full force and effect and recorded
against Planning Areas D, G and H for the 55 year duration of this agreement.
10 Default. Failure of Kelly or PTR to cure any default in either Kelly's or PTRs obligations
under the terms of this Agreement within ninety (90) days after the delivery of a notice of default
from the City (or where the default is of the nature which cannot be cured within such ninety (90)
day period, the failure of Kelly or PTR to commence to cure such default within the ninety (90)
day period or Kelly's or PTR's failure to proceed diligently to complete the cure of such a default
within 180 days) will constitute a breach of the Agreement and the requirements of the Carlsbad
Municipal Code chapter 21.85 and the City may exercise any and all remedies available to it with
respect to Kelly's and PTRs failure to satisfy the Conditions of Approval and chapter 21. 85 of
the Carlsbad Municipal Code, including, but not limited to, the withholding of building permits
for the market rate units within Kelly Ranch..
1 1. Auuointment of Other Agencies. At its sole discretion, the City may designate, appoint
or contract with any other public agency, for-profit or non-profit organization to perform the
City's obligations under this Agreement.
12. Hold Harmless. Kelly and PTR will each indemnify and hold harmless (without limit as
to amount) the City 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, judgments 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 to PTRs construction of the Combined Project, and shall
protect and defend Indemnitees, and any of them with respect thereto; provided, however, that
this section shall not be applicable to matters involving any gross negligence or willful
misconduct on the part of any Indemnitee.
The foregoing obligation shall be covered by appropriate insurance policies for the
Combined Project naming Indemnitees as additional named insureds with aggregate limits of not
less than five million dollars ($5,000,000) purchased by PTR at its sole expense from an
insurance company duly licensed to engage in the business of issuing such insurance in the State,
with a current Best's Key Rating of not less than A-V, such insurance to be evidenced by an
endorsement which so provides and delivered to the City Clerk prior to the issuance of the first
building permit for the Combined Project.
14 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, California 92008-2389
TO KELLY:
Kelly Land Company
Attn: D. L. Clemens
c/o Hillman Properties West, Inc.
201 1 Palomar Airport Road, Suite 206
Carlsbad, California 92008
with copies to:
Sheppard, Mullin, Richter & Hampton LLP
Attn: Christopher B. Neils, Esquire
501 West Broadway, 19th Floor
San Diego, California 92101-3598
PTR DEVELOPMENT SERVICES INCORPORATED
Attn: Kevin M. Hampton, Vice President
25B Technology Drive, Suite 210
Irvine, California 9261 8
Security Capital Pacific Trust
Attn: Pam Porter
7670 South Chester Street
Englewood, CO 80112
Mayer, Brown & Platt
Attn: Mark Mears, Esquire
190 South La Salle Street
Chicago, Illinois 60603-3441
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. Such notice shall be deemed
effective upon delivery, if personally delivered, two (2) business days after mailing in
accordance with the requirements set forth above.
15. 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.
16. Duration of Agreement; Effect on PTR. This Agreement shall terminate upon the earlier
of 55 years from the date of this Agreement and/or the granting of a written release by the
Community Development Director. This Agreement, and any section, subsection, or covenant
contained herein, may be amended only upon the written consent of Kelly, PTR and the
Community Development Director.
17. Permitted Delavs. Performance by any party of its obligations under this Agreement
shall be excused during any period of delay caused at any time by reason of acts of God or civil
commotion, riots, strikes, picketing or other labor disputes, shortage of materials or supplies,
damage to work in progress by reason of fire, floods, earthquake or other casualty, restrictions
imposed or mandated by governmental or quasi-governmental entities, enactment of conflicting
laws, litigation, acts or neglect of the other parties, or any other cause beyond the reasonable
control of a party, but not including failure to obtain financing. Each party shall promptly notify
the other parties of any delay hereunder as soon as possible after the same has been ascertained.
The term of this Agreement and the time deadlines for such performance shall be extended by the
period of any such delay.
18. Right to Transfer. Kelly shall have the right to sell, mortgage, hypothecate, assign or
transfer ("Transfer") the Kelly Ranch Project in whole or in part to any person, partnership, joint
venture, firm or corporation including, without limitation, PTR ("Transferee") at any time during
the term of this Agreement. Kelly and PTR shall also have the right to Transfer their respective
rights under this Agreement as they pertain to the Combined Project, the Kelly Ranch Project, or
any portion thereof. It is understood and agreed by the parties that portions of the Kelly Ranch
Project may be subdivided after the date of this Agreement. One or more of such subdivided
parcels may be Transferred to persons for development by them in reliance upon the provisions
of this Agreement. The obligations of Kelly and any such Transferees are several and not joint.
19. Recording of Agreement. The parties hereto shall cause this Agreement to be recorded
against the Kelly Ranch Project, which is the burdened land and the benefitted land, in the
official Records of the County of San Diego.
-940 - - -
20. 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.
-1043 - - -
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the day and year first above written.
KELLY: CITY:
KELLY LAND COMPANY, CITY OF CARLSBAD,
a Delaware A Municipal Corporation
corporation
BY
BY Martin Orenyak Its Community Development Director
PTR: APPROVED AS TO FORM
PTR DEVELOPMENT SERVICES
INCORPORATED, a Delaware
corporation RONALD R. BALL
City Attorney
BY Its
“EXHIBIT B”
KELLY RANCH - BUILDING PERMIT PHASING PLAN
KELLY RAN
Action Required/
Phasing
leceive Approval of Affordable
Jsg. Agreement by City Council &
wovide agreed upon security for 22
tffordable housing units for Village - >.
site Development Plan approved by
:ity Council for Affordable
{ousing Project (132 units).
tillages D, G & H must be graded.
n addition, one or more signs must
)e installed on the site, which are
tcceptahle to the City, to identify
he future apartment project.
ill building permits issued and
'oundations complete, inspected
md approved for 132 apartment
mits.
'inal Certificate of Occupancy
nust be issued for at least 132
.ental units and rent restricted at the
CI
Exhibit B
I - BUILDING PERMIT PHASING PLAN
# of Building
Permits & Type
Released
144
market rate
building permits
110
market rate
building permits
(SF and/or MF)
and
132 e#tAtMe
building permits
within mixed
income MPF
project. At leist
27% of the MF
proiect must be
affordable units.
-
and
Building Permits
for clubhouse in
MF project
346 -
building permits
within mixed
ncome MF proiect
must be affordable units. -
145
market rate
% of Total
Permits for
Proiect
16%
13%
and
15%
40%
17%
Comments
Allowed to proceed without
formally approved Site
Development Plan for
affordable project. SDP,
however, must be deemed
supportable by Staff.
At this point, the total market
rate permits allowed to be
issued would be 254 or 29% of
the total number of units
projected; these permits can be
used to construct single family
or multi-family units a{ the
discretion of the developer/
builder. The total # of building
permits for housing,
units).
At this point, there could be a
total of 600 market rate units
represents 68% of
of units w/in the
These units will be a
combination of
family rental project is a
mixed income (495 units)
project which includes 132
affordable units.
The fwse132 rental mils must
be designated for affordable
housing purposes. Thode need
affordable rates. building permits
-16-l-6 - - -
not be the first 132 uniis. As
I 22
EXHIBIT 5
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Carlsbad
City Clerk's Office
Attn: City Clerk
1200 Carlsbad Village Drive
Carlsbad, California 92008
ABOVE SPACE FOR RECORDER'S USE
AFFORDABLE HOUSING AGREEMENT
IMPOSING RESTRICTIONS ON REAL PROPERTY
This AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS
ON REAL PROPERTY ("Agreement"), entered into this day of , 1998
(the "Effective Date"), by and between the CITY OF CARLSBAD, a Municipal Corporation
(hereinafter referred to as the "City"), KELLY LAND COMPANY, a Delaware corporation
(hereinafter referred to as "Kelly"), and PTR DEVELOPMENT SERVICES
INCORPORATED, a Delaware corporation (which is affiliated with Security Capital Pacific
Trust, a Maryland real estate investment trust) (hereinafter referred to as "PTR"), is made with
reference to the following:
A. Kelly is the record owner of certain real properly located in the City of
Carlsbad, California (the "Kelly Ranch") described in "Exhibit A," which is attached hereto
and incorporated herein by this reference. The Kelly Ranch consists of several planning areas,
also designated in "Exhibit A," As used herein, the term "Planning Area" shall refer, as
indicated, to one or more of such planning areas so designated on "Exhibit A," The various
Planning Areas as shown on "Exhibit A" either are, or will become, separate legal parcels in
accordance with the applicable legal requirements of the State of California and the City.
B. Upon their creation as separate legal parcels, Kelly intends to convey or cause
conveyance of record title to Planning Areas K and L, respectively, to other persons pursuant
to contractual commitments not related to this Agreement. Any further development activity
with respect to either Planning Area K or Planning Area L will be the responsibility of the
respective transferee. All of the Planning Areas of the Kelly Ranch, other than Planning
Areas K and L, are herein referred to collectively as the "Kelly Ranch Project." Kelly is the
developer of the Kelly Ranch Project.
C. The parties anticipate that the total number of dwelling units for the Kelly
Ranch Project will not exceed eight hundred seventy-seven (877). In order to satisfy the
affordable housing requirements for the entire Kelly Ranch Project, it is the intent of the
parties that a combined inclusionary project (the "Combined Project") be developed on
I 23
Planning Areas D, G and H, for the development of Affordable Units (as hereinafter defined)
in relation to unrestricted units ("Market Units") in the Kelly Ranch Project (including the
Combined Project) according to the chart set forth in "Exhibit B" . The parties acknowledge
that the Affordable Units in the Combined Project will satisfy the inclusionary housing
requirements for the Kelly Ranch Project, so long as the aggregate number of dwelling units
does not exceed eight hundred seventy-seven (877) for the Kelly Ranch Project.
D. Kelly has filed a separate application for tentative subdivision map and site
plan with respect to Planning Area E. As of the Effective Date, Planning Area E is the subject
of certain development approvals received from the City including without limitation: the
Tentative Subdivision Map (C.T. 96-07), Planned Unit Development Permit (PUD 97-04),
Hillside Development Permit (HDP 96-13) and Coastal Development Permit (CDP 96-13),
approved by Resolution No. 96-68, adopted by the City on April 7,1998.
and a
G, H,
E. Kelly has filed a separate application for a General Plan Amendment, rezoning
master tentative map (the "Master Tentative Map") with respect to Planning Areas D, F,
I and J, as well as K and L. Planning Areas K and L are being processed merely to
create them as legal parcels, with the Master Tentative Map intended to note that further
mapping of parcels K and L, respectively, will be required prior to any development of them.
Kelly has also filed a proposed amendment to the Zone 8 Local Facilities Management Plan.
In addition, Kelly and PTR have filed or intend to file a separate application for approval of a
site development plan with respect to Planning Area J, a planned development permit with
respect to Planning Area I and a site development plan for Planning Areas D, G and H.
F. Kelly and PTR have entered into that certain Purchase Agreement dated
, 1998 (the "Purchase Agreement"), whereby Kelly has agreed to sell
Planning Areas D, G, H, I and J to PTR subject to the terms and conditions set forth therein.
Among other things, said terms require that PTR take Title to all the Master Tentative Map
land, but that concurrently with recordation of the final map for such land (i) PTR will Deed
Planning Area F to Kelly, and (ii) PTR will Deed Planning Areas K and L to the Kelly Family
Trust and to Wayne Callaghan, respectively.
G. It is anticipated that the Combined Project will be developed by PTR within
Planning Areas D, G and H (the "Security Property").
H. The City issued an approval for Planning Area E subject to certain conditions
of approval, including a requirement that Kelly enter into an Affordable Housing Agreement
in which Kelly causes to be provided at least twenty-two (22) units affordable to low income
households (the "Planning Area E Inclusionary Requirement").
NOW, THEREFORE, in consideration of the mutual covenants and promises of the
parties herein contained, it is mutually agreed by and between the undersigned parties as
follows:
.-
1. Satisfaction of Affordable Housing Obligation and Conditions of Approval. In order to
satisfy the Conditions of Approval for CT 96-07 and the requirements of the City’s Inclusionary
Housing Ordinance, Carlsbad Municipal Code Chapter 21.85, the developers of Kelly Ranch
shall provide a minimum of one hundred thirty-two (1 32) units which shall be restricted and
affordable to lower income households according to the schedule and terms contained herein.
This Agreement is an Affordable Housing Agreement pursuant to Section 21.85.030(b)(5) of
Chapter 21.85 of the Carlsbad Municipal Code. Developer shall submit this Agreement to the
City and this Agreement shall be recorded concurrently with the recordation of the final map for
Planning Area E.
2. Inclusionarv Reauirements for Planning Area E. Prior to the recordation of the
Affordable Housing Agreement, Kelly has voluntarily agreed to provide additional security to
insure the construction of the Affordable Units required for Planning Area E. The additional
security will include (1) a cash deposit or letter of credit in the amount of $220,000, (2) The
recordation of a deed restriction, in a form acceptable to the City of Carlsbad, upon Planning
Areas D, G and H which will limit development to that which can satisfy the affordable housing
requirement for the Kelly Ranch Project, and (3) executed and acknowledged grant deeds from
Kelly and PTR to the City for Planning Areas D, G, and H, sufficient to convey title to the City
(the “Security Grant Deeds”). The City shall hold the Security Grant Deeds as additional
Security for the Developer’s construction of the Affordable Units required for Planning Area E
and shall not accept the grant deeds or record them in the Official Records of the County of San
Diego unless it so elects in the event the Developer fails to obtain Site Development Plan
approval for the Combined Project prior to June 1,2000, as required pursuant to Section
2.1 below. The acceptance and recordation of the Security Grant Deeds shall be solely at the
discretion of the City. The additional security is not an In-Lieu contribution as defined by
Chapter 21.85 of the Carlsbad Municipal Code. Subsequent to the recordation of this
Agreement, the developer of Planning Area E shall be entitled to construct up to a maximum of
one hundred forty-five (145) Market Units.
2.1 Satisfaction of the Inclusionarv Requirements for Planning Area E Upon City
approval of a Site Development Plan for the Combined Project, as defined in Section 4.1 below,
City inspection and final approval of the grading of Planning Areas D, G and H, and the
installation by Kelly of one or more signs on the subject property acceptable to the City
identifying the future apartment project to the satisfaction of the City, the additional security
obligations described in paragraph 2 above shall be released by the City. In the event that the
Site Development Plan for the Combined Project is not approved prior to July 1,2000, the City
may cause Kelly to forfeit the cash deposit and at the discretion of the City, the City may record
the Security Grant Deeds, or extend the deadline and require the developer to continue efforts to
obtain approval of a Site Development Plan in the City’s sole discretion.
-33 - - - I 25
3. Inclusionarv Reauirements for Planning Areas A, D, G, H. I and J
3.1 Conveyance to PTR. In order to satisfy the Inclusionary Ordinance with respect
to the balance of the entire Kelly Ranch Project, and subject to the terms and conditions set forth
in the Purchase Agreement, Kelly shall convey the Security Property to PTR for development of
the Combined Project. When the obligations set forth below have been satisfied with respect to
the Combined Project, the Combined Project shall be deemed to satisfy the Inclusionary
Ordinance and all inclusionaq housing requirements for the remainder of the Kelly Ranch
Project.
4. Terms Governing Provision of Affordable Units.
4.1 Number of Affordable Units. The Combined Project shall include up to four
hundred ninety-five (495) rental housing units, a minimum of one hundred thirty-two (132) of
which shall be rent-restricted and affordable to lower income households as required and defined
by Chapter 21.85 of the Carlsbad Municipal Code (the “Affordable Units”), and as shown in
“Exhibit B”. The requirement for one hundred thirty-two (1 32) Affordable Units is based on
fifteen percent (1 5%) of eight hundred seventy-seven (877) aggregate dwelling units (including
the Affordable Units) for the entire Kelly Ranch Project. The maximum number of dwelling
units for the entire Kelly Ranch Project shall not exceed eight hundred seventy-seven (877). The
maximum number of Market Units shall not exceed seven hundred forty-five (745). If the total
number of housing units increases or decreases within the Kelly Ranch Project, the minimum
number of affordable housing units shall increase or decrease accordingly, but shall never be less
than 15% of the total number of housing units. This agreement shall be amended to reflect any
changes to the total number of housing units and applicable affordable housing requirement.
Amendments to this agreement to reflect changes in the total number of housing units and the
minimum number of affordable units may be executed by the Community Development Director,
subject to the review and approval of the City Attorney.
4.2 Location of Affordable Units. The Combined Project shall be located in Planning
Areas D, G and H. Specific Affordable Units within the Combined Project shall be distributed
throughout the Combined Project, and shall be as provided as designated in an approved Site
Development Plan. Modifications to the location and timing of the Affordable Units shall be
subject to the prior written approval of the Community Development, with a recommendation
from the Housing and Redevelopment Director.
4.3 Size and Bedroom Count. The Affordable Units in the Combined Project shall
have the number of bedrooms and square footage as shown in “Exhibit C”.
4.4 Affordability Reauirements. The Affordable Units shall be available to
households with incomes not exceeding 80% of the median income for San Diego County,
adjusted for actual household size. Monthly Rents of the Affordable Units shall not exceed
1/12th of 30% of 80% of median income for San Diego County, adjusted for assumed household
size appropriate for the unit. For purposes of this Agreement, “Rent” shall include a utility
allowance as established and adopted by the City of Carlsbad Housing Authority, as well as all
monthly payments made by the tenant to the lessor in connection with use and occupancy of a
housing unit and land and facilities associated therewith, including and separately charged fees,
utility charges, or service charges assessed by the lessor and payable by the tenant. Median
income figures shall be those published annually by the United States Department of Housing
and Urban Development. Assumed household size figures shall be provided to Developer upon
request to the City of Carlsbad Housing and Redevelopment Department. With respect to each
Affordable Unit, the affordability requirements of this Section 4.4 shall continue for fifty-five
(55) years from the date of issuance of a Certificate of Occupancy by the City for such unit or
another comparable unit based upon substitution provisions pursuant to the Regulatory
Agreement. The affordability requirements of this Section 4.4 shall be set forth in the
Regulatory Agreement between the Developer or its successor and the City, provided for in
Section 5 below, which shall supersede this Agreement upon recordation of the Regulatory
Agreement.
4.5 Schedule for Develouing Affordable Units.
4.5.1 Prior to recordation of this agreement, Kelly shall provide the additional
security as described in Section 2 of this Agreement.
4.5.2 Concurrent with the recordation of the first map for Kelly Ranch, this
agreement shall be executed and recorded against the Kelly Ranch Project.
4.5.3 Prior to the Construction of any units within any Planning Area, other than
Planning Area E, the developer of the Combined Project shall have received approval for a Site
Development Plan for the Combined Project. The Site Development Plan shall designate the
location, size and phasing of construction of the Affordable Units.
4.5.4 The Affordable Units shall be developed in accordance with the approved
Site Development Plan for the Combined Project and as more fully detailed in Exhibit B of this
agreement. The release of building permits for all units within the Kelly Ranch Project shall be
in accordance with Exhibit B of this Agreement. Subject to tentative receipt of all necessary City
and other public agency approvals, PTR intends to complete the Combined Project by October
31,2001.
4.5.5 The first 22 units completed within the Combined Project shall be
designated Affordable Units to satisfy the inclusionary housing requirement of Planning Area
E.
5. Citv Approval of Documents The following documents, in form and substance
acceptable to the City, shall be used in connection with the rental of Affordable Units. Such
documents shall be prepared by the PTR and shall be submitted to the Housing and
-53 - - - 21
Redevelopment Director for review and approval no later than the start of construction of the
Affordable Units.
5.1 A marketing plan consistent with the terms of this Agreement, establishing the
process for seeking, selecting and determining the eligibility of tenants of the Affordable Units,
5.2 Form of Rental Agreement.
5.3 A Property Management Plan.
5.4 A Form of Regulatory Agreement between PTR and City (the "Regulatory
Agreement"), following the format designated by City and provided to PTR.
5.5 Any of the documents identified in section 5 may be revised by PTR from time to
time with the prior written approval of the Housing and Redevelopment Director.
6. Reauest for Bond Issuance Particiuation Upon receipt of a written request from PTR,
the City may consider to make all necessary applications for the issuance of revenue bonds
pursuant to Health and Safety Code Section 52075, a. &&
7. Rental Terms. The Affordable Units shall be rent-restricted as described in "Exhibit D
for a period of fifty-five (55) years commencing on the date the certificate of occupancy is issued
for the first Affordable Unit. The Schedule of Maximum Eligible Tenant Incomes and
Affordable Rents (the "Schedule") attached hereto and incorporated herein as "Exhibit D" sets
forth the City's requirements for maximum household income of Tenants of the Affordable Units
("Eligible Tenants") and the methodology for calculation of the rents of Affordable Units which
will be affordable to each of the Eligible Tenants (the "Affordable Rents"). The Affordable
Rents will vary depending on the number of bedrooms in the Affordable Unit, and the applicable
information from "Exhibit D as the same varies from time to time. The Schedule also includes
initial estimates of Eligible Tenant actual incomes and the corresponding Affordable Rents. The
final Schedule shall be established prior to lease up based on the San Diego County Area Median
Income and the cost factors applicable at the time. The final Schedule shall be submitted by PTR
and approved by the City's Housing and Redevelopment Director.
8. p. PTR shall submit an annual report to the City as
required under the Regulatory Agreement, identifying which units are Affordable Units, the
monthly rent, vacancy information for each Affordable Unit, and monthly income of the tenants
of each Affordable Unit for the prior year, together with such other information as reasonably
required by the City to verify compliance with this Agreement.
9. Release of Subiect Prouertv From Agreement. The covenants and conditions herein
contained shall apply to and bind the heirs, executors, administrators, successors, transferees and
assignees of all the parties having or acquiring any right, title or interest in or to any part of the
-63 - - -
Subject Property, and shall run with and burden the Subject Property, excluding Planning Area
E, until terminated in accordance with the provisions hereof. Prior to the issuance of building
permits, Developer shall expressly make the conditions and covenants contained in this
Agreement a part of any deed or other instrument conveying any interest in the Subject Property,
excluding Planning Area E. Notwithstanding anything to the contrary set forth in this Agreement,
individual purchasers of single-family units pursuant to an approved public report in compliance
with the California Subdivided Lands Act, and mortgage lenders holding deeds of trust on such
individual units after sale to such purchasers, shall not be subject to the terms of this Agreement;
and the terms of this Agreement shall be of no further force or effect with respect to such
completed unit on the date of the recordation of a deed to the individual purchaser. Upon final
inspection and issuance of a certificate of occupancy for 132 Affordable Units, all Planning
Areas, with the exception of Planning Areas D, G and H, shall be released from the burdens of
this Agreement. The burdens of this agreement shall remain in full force and effect and recorded
against Planning Areas D, G and H for the 55 year duration of this agreement.
10 Default. Failure of Kelly or PTR to cure any default in either Kelly's or PTR's obligations
under the terms of this Agreement within ninety (90) days after the delivery of a notice of default
from the City (or where the default is of the nature which cannot be cured within such ninety (90)
day period, the failure of Kelly or PTR to commence to cure such default within the ninety (90)
day period or Kelly's or PTR's failure to proceed diligently to complete the cure of such a default
within 180 days) will constitute a breach of the Agreement and the requirements of the Carlsbad
Municipal Code chapter 21.85 and the City may exercise any and all remedies available to it with
respect to Kelly's and PTR's failure to satisfy the Conditions of Approval and chapter 21. 85 of
the Carlsbad Municipal Code, including, but not limited to, the withholding of building permits
for the market rate units within Kelly Ranch..
11. Auuointment of Other Agencies. At its sole discretion, the City may designate, appoint
or contract with any other public agency, for-profit or non-profit organization to perform the
City's obligations under this Agreement.
12. Hold Harmless. Kelly and PTR will each indemnify and hold harmless (without limit as
to amount) the City 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, judgments 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 to PTR's construction of the Combined Project, and shall
protect and defend Indemnitees, and any of them with respect thereto; provided, however, that
this section shall not be applicable to matters involving any gross negligence or willful
misconduct on the part of any Indemnitee.
The foregoing obligation shall be covered by appropriate insurance policies for the
Combined Project naming Indemnitees as additional named insureds with aggregate limits of not
-73 - - -
less than five million dollars ($5,000,000) purchased by PTR at its sole expense from an
insurance company duly licensed to engage in the business of issuing such insurance in the State,
with a current Best's Key Rating of not less than A-V, such insurance to be evidenced by an
endorsement which so provides and delivered to the City Clerk prior to the issuance of the first
building permit for the Combined Project.
14 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, California 92008-2389
TO KELLY:
Kelly Land Company
Attn: D. L. Clemens
c/o Hillman Properties West, Inc.
201 1 Palomar Airport Road, Suite 206
Carlsbad, California 92008
with copies to:
Sheppard, Mullin, Richter & Hampton LLP
Attn: Christopher B. Neils, Esquire
501 West Broadway, 19th Floor
San Diego, California 92101-3598
PTR DEVELOPMENT SERVICES INCORPORATED
Attn: Kevin M. Hampton, Vice President
25B Technology Drive, Suite 210
Irvine, California 92618
Security Capital Pacific Trust
Attn: Pam Porter
7670 South Chester Street
Englewood, CO 801 12
Mayer, Brown & Platt
Attn: Mark Mears, Esquire
-83 - - -
190 South La Salle Street
Chicago, Illinois 60603-3441
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. Such notice shall be deemed
effective upon delivery, if personally delivered, two (2) business days after mailing in
accordance with the requirements set forth above.
15. 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.
16. Duration of Agreement: Effect on PTR. This Agreement shall terminate upon the earlier
of 55 years from the date of this Agreement andor the granting of a written release by the
Community Development Director. This Agreement, and any section, subsection, or covenant
contained herein, may be amended only upon the written consent of Kelly, PTR and the
Community Development Director.
17. Permitted Delays. Performance by any party of its obligations under this Agreement
shall be excused during any period of delay caused at any time by reason of acts of God or civil
commotion, riots, strikes, picketing or other labor disputes, shortage of materials or supplies,
damage to work in progress by reason of fire, floods, earthquake or other casualty, restrictions
imposed or mandated by governmental or quasi-governmental entities, enactment of conflicting
laws, litigation, acts or neglect of the other parties, or any other cause beyond the reasonable
control of a party, but not including failure to obtain financing. Each party shall promptly notify
the other parties of any delay hereunder as soon as possible after the same has been ascertained.
The term of this Agreement and the time deadlines for such performance shall be extended by the
period of any such delay.
18. Right to Transfer. Kelly shall have the right to sell, mortgage, hypothecate, assign or
transfer ("Transfer") the Kelly Ranch Project in whole or in part to any person, partnership, joint
venture, firm or corporation including, without limitation, PTR ("Transferee") at any time during
the term of this Agreement. Kelly and PTR shall also have the right to Transfer their respective
rights under this Agreement as they pertain to the Combined Project, the Kelly Ranch Project, or
any portion thereof. It is understood and agreed by the parties that portions of the Kelly Ranch
Project may be subdivided after the date of this Agreement. One or more of such subdivided
parcels may be Transferred to persons for development by them in reliance upon the provisions
of this Agreement. The obligations of Kelly and any such Transferees are several and not joint.
19. Recordine of Agreement. The parties hereto shall cause this Agreement to be recorded
against the Kelly Ranch Project, which is the burdened land and the benefitted land, in the
official Records of the County of San Diego.
-93 - - -
20. 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, the parties hereto have caused this Agreement to be executed
as of the day and year first above written.
KELLY CITY:
KELLY LAND COMPANY, CITY OF CARLSBAD,
a Delaware A Municipal Corporation
corporation
BY
BY Martin Orenyak Its Community Development Director
PTR: APPROVED AS TO FORM
PTR DEVELOPMENT SERVICES
INCORPORATED, a Delaware
corporation RONALD R. BALL
City Attorney
BY Its
-103 - - - I 32-
STATE OF CALIFORNIA 1
COUNTY OF
) ss.
1
On , 199-, before me, , personally appeared
and , personally known to
me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s)
idare subscribed to the within instrument and acknowledged to me that he/she/they executed
the same in hisker/their authorized capacity(ies), and that by hishedtheir signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
WITNESS my hand and official seal.
Notary Public in and for said State
(SEAL)
STATE OF CALIFORNIA )
COUNTY OF
) ss.
)
On , 199-, before me, , personally appeared
and , personally known to
me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s)
idare subscribed to the within instrument and acknowledged to me that he/she/they executed
the same in hishedtheir authorized capacity(ies), and that by hisher/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
WITNESS my hand and official seal.
Notary Public in and for said State
(SEAL)
-1 - 118 - - I 33
“EXHIBIT A”
DESCRIPTION OF KELLY RANCH
-1244 - - - I
34’
"EXHIBIT B"
KELLY RANCH - BUILDING PERMIT PHASING PLAN
I 35
Exhibit B
KELLY RAR
Action Requiredl
Phasing
teceive Approval of Affordable Hsg.
igreement by City Council &
xovide agreed upon security for 22
Lffordable housing units for Village >.
Site Development Plan approved by
3ty Council for Affordable Housing
'roject (132 units). Villages D, G &
3 must be graded. In addition, one or
nore signs must be installed on the
:ite, which are acceptable to the City,
o identify the future apartment
xoject.
ill building permits issued and
bundations complete, inspected and
lpproved for 132 apartment units.
3nal Certificate of Occupancy must
)e issued for at least 132 rental units
md rent restricted at the affordable
'ates.
Permits & Type
Released
144
narket rate building
permits
110
market rate
building permits
(SF and/or MF)
and
132
building permits
within mixed
At least 27% of the
ncome MF project,
MF oroiect must be
affordable units.
and
Building Permits
for clubhouse in
MF project
346
building permits
within mixed
income MF project
must be affordable
units.
145
market rate
building permits
Permits for
Project
16%
13%
and
15%
40%
17%
LAN
Comments
Allowed to proceed without
formally approved Site
Development Plan for
affordable project. SDP,
however, must be deemed
supportable by Staff.
At this point, the total market
rate permits allowed to be
issued would be 254 or 29% of
the total number of units
projected; these permits can be
used to construct single family
or multi-family units at the
builder. The total # of building
discretion of the developer1
the affordable, would be 386 or
permits for housing, including
44% of the total # of housing
units projected (877 units).
At this point, there could be a
total of 600 market rate units
under construction which
represents 68% of the total # of
units w/in the project. These
units will be a combination of
single family and multi-family.
The multi-family rental project
is a mixed income (495 units)
project which includes 132
affordable units.
The 132 rental units must be
designated for affordable
housing purposes. Those need
not be the first 132 units.
"EXHIBIT C"
AFFORDABLE UNITS
SIZE AND BEDROOM COUNT
I 31
"EXHIBIT D"
SCHEDULE OF MAXIMUM ELIGIBLE
TENANT INCOMES AND AFFORDABLE RENTS
[ATTACH CITY SCHEDULE]
-174-8 - - - I
30
Rxhibit 6 @
DATE:
SUBJECT:
JULY 9,1998
SDP 98-4 KELLY RANCH AFFORDABLE HOUSING PROJECT -
REQUEST FOR RECOMMENDATION OF APPROVAL TO THE CITY
COUNCIL OF AN AFFORDABLE HOUSING AGREEMENT FOR THE
DEVELOPMENT OF 132 AFFORDABLE APARTMENT UNITS
NECESSARY TO SATISFY THE INCLUSIONARY HOUSING
REQUIFEMENT FOR THE KELLY RANCH DEVELOPMENT.
I. RECOMMENDATION
That the Housing Commission ADOPT Resolution No. 98-010, recommending APPROVAL
to the City Council of an Affordable Housing Agreement for the development of 132
affordable apartment units in order to satisfy the requirements of the inclusionary housing
requirement for the Kelly Ranch Development.
11. PROJECT BACKGROUND
The Kelly Ranch Development is currently processing applications for the development of up
to 877 housing units. For planning purposes, Kelly Ranch is divided into 12 Planning Areas
(Planning Areas A-K). Planning Areas A, D, E, G, H, I and J are proposed for residential
development and are the subject of this affordable housing agreement. Planning Areas B, C,
F, L, and K are a combination of open space (B & C), future commercial development (F) or
future residential development (L & K) and will be required to satisfy their respective
inclusionary housing requirements at such time as they develop.
Pursuant to the City's Inclusionary Housing Ordinance, 15% of the base dwelling units in the
Development must be provided for lower income households. The Affordable Housing
Agreement (Exhibit B) for Kelly Ranch establishes the phasing and development of the
inclusionary housing for the Development pursuant to Chapter 21.85 of the City of Carlsbad
Zoning Ordinance. Approval of a site development plan will be required to ensure consistency
with the applicable affordable housing agreement and provides the inclusionary housing for
the entire Development.
SDP 98-4 - KELLY RANCH AFFORDABLE HOUSWG PROJECT
JULY 9, 1998
Kelly Ranch will allow for the development of up to 877 residential units. Of the 877 units,
there will be 382 single family homes and a 495 unit apartment project. All of the single family
homes will be sold at "market rate." Planning Areas D, G and H will contain the 495 unit
apartment project. The 132 affordable units will be dispersed throughout the apartment project.
For purposes of the Affordable Housing Agreement, the apartment project is a Combined
Affordable Housing Project as defined by Chapter 21.85 of the Carlsbad Municipal Code. The
Combined Project will satisfy the affordable housing requirement for Planning Areas A, D, E, G,
H, I, and J.
Generally, when an affordable housing agreement is before the Commission, there will also be a
recommendation for the corresponding Site Development Plan. In this particular instance, City
staff has not completed its review of the proposed Site Development Plan. The Commission has
been provided with the applicant's most recent application submittal. However, there are several
issues related to site design, architecture, and density that are still to he resolved. It is very likely
that the project will be revised at a later date. Therefore, the Site Development Plan will be
returned to the Commission for future review and comment.
111. PROJECT DESCRIPTION
A. Location
The Kelly Ranch Apartment Project will be located at the northeast comer of the future
intersection of Cannon Road and Faraday Road. The project is to be located on Lots 161-174, as
shown on the proposed Tentative Map CT 97-16.
B. Unit Mix
The proposed apartment project consists of 363 market rate units and 132 affordable units. The
affordable units will be dispersed throughout the apartment project. The affordable units will be
a mixture of one, two and three bedrooms. A minimum of 14 of the three bedroom units will be
restricted to affordable rent levels. The size of the apartment units are as follows:
Bedroom Size Storage Area. ,' ' , Patio,Area, Living Area ,
Square Footage ,, Square Footage ~ ' Squaik Footage ., , ,, . ., ,.
1 Bedroom 6- 140 0-73 580-767
2 Bedroom
20 50 1340 3 Bedroom
7-103 0-1 15 984-11254
SDP 98-4 - KELLY RANCH AFFORDABLE HOUSING PROJECT
JULY 9, 1998
PAGE 3
C. Other Features and Amenities
IV.
V.
VI.
The project will feature a 5,400 square foot recreation building, two swimming pools a tennis
court and 1024 parking spaces. In addition, each individual unit will include a washer and dryer
located on the patio or balcony area.
DEVELOPMENT TEAM
The affordable housing developer is Security Capital Pacific Trust. The developer is a real estate
investment trust that develops and manages apartment projects throughout the Western United
States. The developer has recently purchased several properties within the City of Carlsbad
which they now manage.
SITE
A. Site Control
The site is currently owned by Kelly Land Company. With the recordation of the final map for
the project, Kelly Land Company will sell the different planning areas to various builders and
developers. It is anticipated that Shea Homes will develop Planning Areas E and J, while
Security Capital will develop Planning Areas D, G, H and I.
C. Site Characteristics
The affordable units will be located within Planning Areas D, G and H in the Kelly Ranch
Development. The subject property is vacant and is bordered by Agua Hedionda Lagoon to the
north, mobile homes to the east, residential development to the south and the Carlsbad Ranch
Master Plan to the west. As part of the Kelly Ranch Development, Cannon Road will be
extended from its current termination east of Interstate 5 to El Camino Real. Faraday Road will
also be constructed as part of this development.
AFFORDABILITY
A. Rent and Income Levels
The 132 affordable units will be restricted and affordable to households with incomes not
exceeding 80% of the area median (AMI). Security Capital is seeking to finance the project in
part through the use of private placement bonds.
SDP 98-4 - KELLY RANCH AFFORDABLE HOUSING PROJECT
JULY 9, 1998
PAGE 4
B. Target Population
The affordable units will be targeted to lower-income families. With a growing number of
lower-income jobs in Carlsbad, there is a significant demand for affordable housing for families
which will improve the jobshousing balance.
C. Terms of Affordability
The Affordable Housing Agreement will be executed with the developer to ensure the
affordability for the project’s useful life or 55 years, as required by the City’s Inclusionary
Housing Ordinance.
D. Housing ElementiConsolidated Plan Consistency
The proposed affordable housing supports several Housing Element Goals and Objectives,
including Objective 3.5 (Lower Income New Construction), Objective 3.6 (Inclusionary
Housing), Objective 3.2 (Larger Units) and Goal 4 (Jobs-Housing Balance). The City of
Carlsbad’s Consolidated Plan identifies housing opportunities for large, lower-income renter
families as a top ranking priority. The proposed project meets the priorities, goals and objectives
of the City for affordable housing.
VII. CONSTRUCTION PHASING
As with all combined affordable housing projects to date, construction of the
development will be phased. A Phasing Schedule is contained within the Affordable
Housing Agreement as Exhibit B. Approval of the Affordable Housing Agreement will
allow for the recordation of the final map and the development of 144 (16% of the total
project) single family homes for Village E. Once the Site Development Plan is formally
approved by the City Council, the entire apartment project site has been graded, and the
site posted with signs indicating the forthcoming apartment project, 242 (28%) building
permits will be issued. Of these permits, 110 will be for market rate units and 132 will be
for the affordable units. Next, once all building permits have been issued, building
foundations complete, inspected and approved for the 132 affordable units, 346 (40%)
market rate building permits may be issued. Finally, once final certificate of occupancy
permits have been issued for all 132 affordable units, the final 145 (17%) market rate
building permits may he issued.
The construction phasing noted above allows for the developer to proceed with
construction of a reasonable number of the market rate homes before construction must
begin on the affordable housing units. Staff believes that the phasing plan set forth within
the agreement is also consistent with the inclusionary housing ordinance which requires
concurrent construction of the affordable housing units.
SDP 98-4 - KELLY RANCH AFFORDABLE HOUSING PROJECT
JULY 9,1998
PAGE 5
VIII. ENTITLEMENTS
The Kelly Ranch project is currently processing several applications for the development. The
City Council has previously approved the tentative map for Planning Area E and the final map is
currently under review by City Staff. The final map will not be approved until such time as the
Affordable Housing Agreement is approved and executed. The tentative map and related
applications for the remainder of the project are currently under review by City staff. The
pending applications will all require approval by both the Planning Commission and City
Council at a future date. The site development plan, which includes elevations and floor plans
for the affordable housing project will be brought back tu the Housing Commission at a later
date for additional review.
IX. ON-GOING REOUIREMENTS OF THE CITY
The City will monitor the development of the project and its on-going management. A
Regulatory Agreement with Security Capital will be required regarding affordability
requirements and the management of the project. The developer will be required to file an
annual report with the Housing and Redevelopment Department regarding compliance with the
Agreement.
X. SUMMARY AND RECOMMENDATIONS
It is the role of the Housing Commission to make recommendations to the Planning Commission
and City Council based on several considerations with respect tu affordable housing projects.
These are:
The proposal’s effectiveness in serving the City’s needs and priorities as expressed
in the Housing Element of the General Plan and the HUD Consolidated Plan.
The proposal’s consistency with the City’s affordable housing policies and
ordinances as expressed in the Housing Element, Inclusionaty Housing Ordinance,
Density Bonus Ordinance, etc.
The proposal’s development and operating feasibility, emphasizing the development
team capacity, financing sources and the role of the City in providing financial
assistance or incentives.
As indicated above, the Housing Commission is requested to make a recommendation on the Affordable
Housing Agreement only. The site development plan will be returned to the Commission for further
review and consideration. However, based upon the conceptual plans that have been provided, it appears
that the proposed affordable housing project will serve the needs and priorities set forth within the City’s
Housing Element, Consolidated Plan, and the City’s affordable housing policies and ordinances. Kelly
SDP 98-4 - KELLY RANCH AFFORDABLE HOUSING PROJECT
KJLY 9, 1998
PAGE 6
Ranch has selected a developer which has experience in developing and managing apartment
projects and has the necessary resources to finance the project. At this time, there is no request
for financial assistance from the City.
Staff is recommending approval of the proposed affordable housing agreement, as presented, to
satisfy the inclusionary housing obligation of the Kelly Ranch Project. As required by the
Inclusionary Housing Ordinance, the developer and the City must enter into an Affordable
Housing Agreement prior to recordation of a final map for development within the Kelly Ranch
Project. As mentioned previously, the Affordable Housing Agreement presented for review and a
recommendation of approval by the Housing Commission records specific requirements of the
Inclusionary Ordinance, including unit type, affordability levels and construction timing.
In summary, staff is recommending that the Housing Commission approve a recommendation to
the Planning Commission and City Council to approve the Affordable Housing Agreement for
the Kelly Ranch Project, in substantially the form presented at this time.
XII. EXHIBITS
1. Housing Commission Resolution No. 98-010
2. Draft Affordable Housing Agreement
3. Reduced Plan Exhibits
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
HOUSING COMMISSION RESOLUTION NO. 98-010
THAT THE HOUSING COMMISSION RECOMMEND TO THE
CITY COUNCIL APPROVAL OF AN AFFORDABLE HOUSING
AGREEMENT FOR THE DEVELOPMENT OF 132
AFFORDABLE APARTMENT UNITS NECESSARY TO
SATISFY THE INCLUSIONARY HOUSING REQUIREMENT
FOR THE KELLY RANCH DEVELOPMENT.
APPLICANT: KELLY LAND COMPANY AND PTR
DEVELOPMENT
CASE NO.: SDP 98-04
WHEREAS, the developer of the Kelly Ranch Development has proposed to construct 132
apartment units affordable to lower income households as a means to satisfy their affordable housing
obligation as permitted by Carlsbad Municipal Code Section 21.85 of the City's Inclusionary Housing
Ordinance; and
WHEREAS, the Affordable Housing Agreement for the developer's proposal to construct said
units has been submitted to the City of Carlsbad's Housing Commission for review and consideration;
and
WHEREAS, said Housing Commission did, on the 9" day of July, 1998, hold a public meeting
to consider the Affordable Housing Agreement for said proposal to construct 132 affordable apartment
units; and
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 proposal to
construct said affordable housing units.
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 Affordable Housing Agreement is consistent with the goals and objectives of the
City of Carlsbad's Housing Element and Consolidated Plan, the Inclusionary Housing
Ordinance, and the Carlsbad General Plan.
..
1
2
3
4
5
6
7
0
9
10
11
12
13
14
15
16
17
10
19
20
21
22
23
24
25
26
27
20
The Affordable Housing Agreement provides a total of 132, one, two and three
bedroom affordable apartment units. The project, therefore, has the ability to
effectively serve the City's housing needs and priorities as expressed in the Housing
Element and the Consolidated Plan.
That based on the information provided within the Housing Commission Staff Report
and testimony presented during the public meeting of the Housing Commission on
July 9, 1998, the Housing Commission ADOPTED Resolution No. 98-010,
recommending APPROVAL to the City of an Affordable Housing Agreement for the
potential development of 132 affordable apartment units in order to satisfy the
requirements of the inclusionary housing requirement for the Kelly Ranch
Development.
That the Housing Commission recommends that the City Manager or his designee be
authorized by the City Council to execute the Affordable Housing Agreement as
presented by the applicant to the Commission on July 9, 1998, and subject to review
and approval by the City Attorney.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Commission of
the City of Carlsbad, California, held on the 9' day of July, 1998, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
KATHLEEN DUNN-WELLMAN, CHAIRPERSON
CARLSBAD HOUSING COMMISSION
DEBBIE. FOUNTAIN
HOUSING AND REDEVELOPMENT DIRECTOR
HC RESO. NO. 98-010
PAGE 2
"EXHIBIT D"
SCHEDULE OF MAXIMUM ELIGIBLE
TENANT INCOMES AND AFFORDABLE RENTS
[ATTACH CITY SCHEDULE]
-16 -
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pay Patchett - Kelly Ranch Affordable “lsing Agreement - Page 1
To:
From: Debbie Fountain
Date: 712am IO:~~AM Subject: Kelly Ranch Affordable Housing Agreement
In response to some of the questions raised during the Council briefings yesterday on the Kelly Ranch
Affordable Housing Agreement, here is some additional information related to the project:
1. The size of Planning Areas D, G and H are as follows: D.27 gross acres and 7.4 net acres; G=21.3
gross acres and 15.6 net acres; H=14.6 gross acres and 9.9 net acres. The total gross acres is 62.9 with
net acres (developable acres) equal to 32.9.
that area with only $10,000 per unit would not be enough to get the units done. The City would still have to
2. Planning Area D alone would probably be adequate to accommodate a 50 unit apt project. However,
kick in some money or go elsewhere to find the additional $$. Wlth Planning Areas D, G and H as well as
$10k a unit (for 22 units), we could get the project done without having to find $ elsewhere because we
could sell off the excess land to raise $.
3. The current zoning for the property is PC which does not regulate housing type. The General Plan
designation of RM limits the # of units per acre but not type. At this time, Planning’s position is that the attached apartment product type proposed for Planning Areas D, G and H would be acceptable as long as
they are within the acceptable density.
4. The application for the Kelly Ranch SDP is currently under review by the Planning Department. An EIR
still needs to be completed for the project and processed. It is anticipated that the EIR process won’t be
complete until approximately November of this year. The project would then be required to go to Planning
Commission, etc. Consequently, final action on the SDP will probably occur sometime after the first of the
new year (1999), approximately 6 months away.
5. According to Engineering, Planning Area E is conditioned to provide full street improvements (4 lanes,
to provide the improvements from El Camino Real to Frost Street in year 1 and then from Frost Street to
medians, signals, etc) for Cannon Road for the entire frontage of Planning Area E. They were conditioned
for Planning Area E. the west end of Planning Area E in year 2. There were no other conditions related to street improvements
6. The Phasing Plan (Chart - Exhibit B to Agreement) is being corrected and will be presented tonight for
revision approval. We left out the words “27% of the MF project must be affordable units” in the 2nd box of
the third tier of plan.
I think this answers the various questions that were raised during the briefings, which I was unable to
answer at the time. If any additional information is required, please let me know. Thanks!!
Ray Patchett
cc: Lloyd Hubbs. Marty Orenyak, Michael Holzmiller
"RITE IT - DO.N'T SAY 4T!
Date Auvust 24 19 98
To Pile QReply Wanted
From Isabelle Paulsen ON0 Reply Necerrarv
On this date, Kathleen Shoup responded to my inquiry by
agreement coming from Craig Ruiz, Housing ti Redevelopment. stating that there would most likely not be a fully signed
Kathleen stated that Karen said that the agreement needed
to be amended and that Lee said to file this document.