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HomeMy WebLinkAbout2002-11-12; City Council; 16969; Affordable Credits For Buerger SubdivisionCITY OF CARLSBAD - AGENDA BILL LB# 16.969 DEPT. H& - TITLE: APPLICATION TO PURCHASE AFFORDABLE CREDITS IN THE VILLA LOMA HOUSING PROJECT FOR ITG. 11-12-02 CITY ATTY. @- THE BUERGER SUBDIVISION IEPT. HlRED CITY MGR. RECOMMENDED ACTION: ADOPT Council Resolution No. 2002-330 APPROVING a request by Aviara Pointe LLC, to purchase two (2) Affordable Housing Credits in the Villa Loma combined housing project in order to satisfy the affordable housing obligation of the Buerger Subdivision project under the City’s lnclusionary Housing Ordinance. - ITEM EXPLANATION: The Buerger Subdivision was approved by the Carlsbad City Council on April 3, 2001, allowing for the subdivision of an approximately 5 acre parcel of land located on the east side of Blackrail Road and north of Aviara Parkway. The subdivision will result in 12 residential lots and one open space lot. Approximately one (1) acre of the site is constrained by a major 150’ wide SDG&E power line easement that traverses the property at the western end, a transmission tower located within the easement, and .054 acres of 25%+ Although the site has been formerly occupied by flower fields and horticultural plantings (birds of paradise), slopes. The site has been previously cultivated for horticultural operations and occupied by greenhouses. the horticultural operations have been terminated, and the site is currently occupied by two remaining structures and non-native vegetation. The applicant is requesting to purchase two (2) affordable housing credits in the Villa Lorna Project to satisfy the project’s inclusionaty housing obligation. The City Council is the approval body for the purchase of affordable housing credits. The project is a small subdivision both in terms of the number of units (12) and developable area (3.9 acres). Due to the small size of the project, it would be difficult to physically and financially integrate the required affordable housing units within the market rate subdivision. Therefore, the developer has submitted a request to purchase housing credits rather than construct affordable units within their development. The City Council has adopted Policies 57 & 58 that govern the sale of affordable housing credits. The policies examine the feasibility of an on-site proposal, the advantages and disadvantages of an off-site proposal, and whether the off-site project advances the City’s housing goals and strategies. In reviewing the applicant’s request, the Affordable Housing Policy Team (staff) has utilized the criteria contained in the noted policies and has made a recommendation to the City Council to approve the purchase of the credits. FISCAL IMPACT: The Affordable Housing Credit is currently $41,200 per unit. The purchase of 2 credits will result in a payment of $82,400 to the City’s Housing Trust Fund. EXHIBITS: 1. City Council Resolution No. 2002-330 2. Applicant’s Request to Purchase Credits 3. Draft Affordable Housing Agreement 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 CITY COUNCIL RESOLUTION NO. 2002-330 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A REQUEST BY AVIARA POINTE, LLC, TO PURCHASE TWO AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT IN ORDER TO SATISFY THE AFFORDABLE HOUSING OBLIGATION OF THE BUERGER SUBDIVISION PROJECT UNDER THE CITY'S INCLUSIONARY HOUSING ORDINANCE. APPLICANT: BUERGER SUBDIVISION CASE NO: SDP 99-10 WHEREAS, Aviara Pointe LLC has received approval of Tentative Map CT 99-10 for the levelopment of a 12 unit residential development; and WHEREAS, Aviara Pointe LLC has requested approval from the City of Carlsbad City 2ouncil for the purchase of two affordable housing credits in the Villa Loma housing project to iatisfy the inclusionary housing requirement of Tentative Map CT 99-10; and WHEREAS, the City Council did hold a public meeting to consider said request for the Iurchase of Affordable Housing Credits by Aviara Pointe LLC; and WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of 111 persons desiring to be heard, said Council considered all factors relating to the application and 'equest to purchase Affordable Housing Credits: NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of hlsbad, California, as follows: 1. That the above recitations are true and correct. 2. The project is consistent with the goals and objectives of the City of Carlsbad's Housing Element, the Inclusionary Housing Ordinance, and the Carlsbad General Plan. 3. Based upon the analysis contained within the City Council Staff Report dated November 12, 2002, the City Council finds that the off-site satisfaction of the inclusionary housing requirement is in the public interest. 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 CC Resolution No. 2002-330 Page 2 4. That based on the information provided within the City Council Staff Report and testimony presented during the public meeting of the City Council, the City Council hereby APPROVES a request by Aviara Pointe LLC to purchase two affordable housing credits in the Villa Loma housing project in order to satisfy the affordable housing obligation of the Carlsbad Promenade project under the City’s inclusionary housing ordinance. 5. That the City Council hereby authorizes the Community Development Director to execute the Affordable Housing Agreement in substantially the form presented to the City Council as Exhibit 3 of the City Council Staff Report and to execute such other documents, or take other actions as may be necessary or appropriate to assist the developer in acquiring the Affordable Housing Credits. Ill Ill 1 2 3 4 5 6 I 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 21 28 PASSED, APPROVED, AND ADOPTED at a regular meeting of the City council )f the City of Carlsbad, California, held on the E' day of November, 2002 by the following vote, o wit: ABSENT: None ABSTAIN: None SEAL) 3C Resolution No. 2002-330 'age 3 PLANNING SYSTEMS LAND BROKERAGE RESIDENTIAL/ COMMERCIAL SCHOOL FACILITIES ENVIRONMENTAL MITIGATION PLANNING SYSTEMS November 21, 2000 Mr. Craig D. Ruiz Management Analyst City Of Carlsbad Housing and Redevelopment Dept. 2965 Roosevelt St., Suite E3 Carlsbad, CA 92008 RE: CT 99-10, CDP 99-17, HDP 99-08, LCPA 99-03, ZC 99-05 Dear Mr. Ruiz: This letter serves as a request by the Buerger Charitable Remainder Trust to purchase off-site affordable housing credits in the existing Villa Loma development to satisfy the inlcusionary housing obligations of the Buerger subdivision. The Buerger subdivision is 12 single family detached units along Black Rail Road in LFMP Zone 20. Our calculation shows that we would be requesting to purchase 1.8 credits from the Villa Lorna development. If you have additional questions, please give me a call at 760-931-0780 xt 107. Sincerely, qT Dennis Cu i gham Planning Systems Land Brokerage , Inc. c: Bill and Anita Buerger Eric Weitzen Dick Reital 1530 FARADAY AVENUE SUITE 100 CARISBAD, CA 92008 (760) 931-0780 * FAX (760) 931-5744 * planningsystems@nctimes.nel 9 d CT 99-10 11/21/00 3 PLANNING SYSTEMS LAND BROKERAGE SCHOOL FACILITIES ENVIRONMENTALMITIGATION PLANNING RESIDENTIAL I COMMERCIAL Buerger Property Off-Site and Combined Inclusionary Housing Project Assessment - Worksheet 1. Feasibilitv of the on-Site Proposal a. Significant Feasibility Issues The on-site affordable project is not sufficient in size to be a viable apartment project. The small scale of the affordable housing project also makes it unlikely that the project will generate interest from specialized funding sources. b. Difficult to Integrate Disparities will be substantial between the low-income rental apartment units restricted rent rates and the proposed higher end single family detached homes which will range in prices from $425,000 - $725,000. c. Capacity to Deliver The applicant is not experienced in the development of affordable housing. Affordable housing developers have advised the applicant it is unlikely that this size of product will generate interest from funding sources. 2. R TI 1 'v v nta a. Feasibility and Cost Effectiveness Villa Loma is built and has proven its feasibility - no assistance is required. 1530 FARADAY AVENUE SUITE 100 CARLSBAD, CA 92008 (760) 931-0780 * FAX (760) 931-5744 * planningsystems@nctimes.net /A ~ 11/21/00 CT 99-10 2 5. Prouosed Off-Site Projed DescriDtion The Villa Lorna project is a 344 unit apartment development in which all units are restricted and affordable to households with incomes not exceeding 60% of the San Diego County Median. Participation in Villa Loma Apartments by the applicant would be in the form of a purchase of Affordable Housing Credits (Credits) under terms established by City .~ ~ ~ ,Council ~. ~~ Policies Numbered 57 and 58. ~~ ~~ If the ~~ applicant is afforded the ~ ~ oppoitunity to purchase Credits, €lie Buerger property tentative map would ~ require the purchase of 1.8 credits to satisfy its Inclusionary ~ 'housing requirement. 6. Description of On-Site Proied Constrain@ Specific constraints exist which would affect an on-site affordable project's feasibility. These include the uneconomical small scale of the affordable project and a significant product type difference between the affordable rental units and the proposed single - family market units * that will be developed on-site. 11/21/00 CT 99-10 3 Buerger Properly Off-Site and Combined Inclusionary Housing Project Assessment - Worksheet 1. Feasibilitv of the on-Site Prouosal .a. Significant .. Feasibility Issues ~~ ~~ ~ ~. ~. .~. ~ .~ . The on-site affordable project is not sufficient in size to be a viable .. apartment project. ~~~ ~ ~~~ The small scale of the affordable housing project also makes it unlikely that the project will generate interest from specialized funding sources. b. Difficult to Integrate Disparities will be substantial between the low-income rental apartment units restricted rent rates and the proposed higher end single family detached homes which will range in prices from $425,000 - $725,000. c Capacity to Deliver The applicant is not experienced in the development of affordable housing. Affordable housing developers have advised the applicant it is unlikely that this size of product will generate interest from funding sources. 2. Relative Advantaees and Disadvantaves of the Off-Site Prouosal a. Feasibility and Cost Effectiveness Villa Loma is built and has proven its feasibility - no assistance is required. 8 CT 99-10 11/21/00 4 The applicant’s participation in Villa Loma would permit the intended recovery of the City investment provided to the project through utilizing excess units. The funds could then be used to provide additional affordable housing. Conversely, the developer’s on-site project would create the demand for additional new subsidy. b. Locations Advantages The Villa Loma development is located within close proximity of jobs, public transportation, schools, library, parks, business centers, and shopping. . ~. .~ . .~ ~~ ~~~ . - .~ ~ Villa Loma is a self -contained affordable development in a n areas designated for higher density. .~ . ~ c. Capacity to Deliver The Villa Loma project is an existing project, developed and managed by a highly experienced and specialized affordable housing developer. d. Multiple Developer Obligations Villa Loma project was originally established as a Combined Project, specifically to address this purpose. 3, AdvancinP HousinP Goals and Strategy General Plan Housing Element Villa Loma provides a large quantity of and diversity of affordable housing stock with its 34.4 units, including a generous supply of different size units to meet various housing needs. Inclusionary Housing Ordinance Policies Consistent with the City and Public interest to use existing excess affordable units before supporting additional new construction. In conjunction with the combined Villa Loma project, the Buerger property will provide for 15% of the total units for affordab 9 11/21/00 CT 99-10 5 units. The project also complies with the Inclusionary requirements as contained in the General Plan Housing Element. Growth Management Zone, Ord. No. NS-257 Guidelines Villa Loma is coordinated with surrounding properties by providing direct access to a major Circulation Element Roadway, El Camino Real, as well as circulation and pedestrian access to public facilities. Recordine Reauested by: City of Carlsbad When Recorded Mail to: City of Carlsbad City Clerk‘s Office Attn: City Clerk 1200 Carlsbad Village Drive Carlsbad, California 92008 (Space above for Recorder’s Use) AFFORDABLE HOUSING AGREEMENT THIS AFFORDABLE HOUSING AGREEMENT (“Agreement”) is entered into this -day of as the “City”), and Aviara Pointe LLC, a California limited liability company (hereinafter referred to as the “Developer”), is made with reference to the following: -. 200-, by and between the CITY OF CARLSBAD, a municipal corporation (hereinafter referred to RECITALS A. Developer is the owner of certain real property in the City of Carlsbad, County of San Diego, State of California, described in “Attachment A”, which is attached hereto and incorporated herein by this reference, and which is the subject of a ”). Tentative Map (CT99-lo), Coastal Development Permit (CDP99-17), Hillside Development Permit (HDP99-08), Local Coastal Plan Amendment (LCPA 99-03), and Zone Change (ZCA99-05) which provides conditional approval of the construction of twelve (12) single family residential units(“Project). B. Chapter 21.85 of the Carlsbad Municipal Code requires that this Affordable Housing Agreement shall be entered into between the City and the Developer as a means of satisfying the Developer’s affordable housing obligation (“Affordable Housing Obligation”), as such is defined under Chapter 21.85 of the Carlsbad Municipal Code. Planning Commission Resolution No. 4913 provides that the Affordable Housing Obligation of two (2) units will be satisfied by the purchase of affordable housing credits, as provided for in Chapter 21.85, Section 21.85.080. NOW, THEREFORE, incorporating the foregoing Recitals and in consideration of the mutual covenants contained herein, the parties agree as follows: 1. That the Recitals Are True And Correct. 2. THAT SATISFACTION OF DEVELOPER’S AFFORDABLE HOUSING REOUIREMENT WILL BE BY THE PURCHASE OF AFFORDABLE HOUSING CREDITS. (a) Performance under this Agreement satisfies the Developer’s obligation for affordable housing under Chapter 21.85 of the Carlsbad Municipal Code as applied to the land covered by Carlsbad Tract No. CT99-10 by reason of the approvals of the Tentative Map of CT CT99-10, including Condition No. 10 listed in Planning Commission Resolution No.4913, and any other applicable approval. (b) The Developer shall purchase two (2) Affordable Housing Credits for an amount established by resolution of the City Council and as required by Condition No. 10 of Planning Commission Resolution No. 4913. The fee shall be paid prior to the Developer receiving any building permits for the project. 3. REMEDIES Failure by the Developer to perform in accordance with this Agreement will constitute failure to satisfy the requirements of Chapter 21.85 of the Carlsbad Municipal Code and Condition No. 10 of Planning Commission Resolution No. 4913. Such failure will allow the City to exercise any and all remedies available to it including but not limited to withholding the issuance of building permits for the lots shown on Carlsbad Tract No. CT99-10. 4. HOLD HARMLESS Developer will indemnity and hold hannless (without limit as to amount) 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 attorneys’ fees and expenses) sustained or incurred because of or by reason of any and all claims, demands, suits, or actions, obtained, allegedly caused by, arising out of or pertaining in any manner to Developer’s actions or defaults pursuant to this Agreement, and shall protect and defend Indemnitees, and any of them with respect thereto. 5. NOTICES All notices required pursuant to this Agreement shall be in writing and may be given by personal delivery or by registered or certified mail, return receipt requested to the party to receive such notice at the address set forth below: TO THE CITY: City of Carlsbad Housing and Redevelopment Department Attn: Housing & Redevelopment Director 2965 Roosevelt Street, Suite B Carlsbad. California 92008-2389 TO THE DEVELOPER. Rajeev Bhatia, Managing Member Aviara Pointe, LLC 3665 Ruffin Road, #230 San Diego, CA 92123 Any party may change the address to which notices are to be sent by notifying the other parties of the new address, in the manner set forth above. 6. ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the parties and no modification hereof shall be binding unless reduced to writing and signed by the parties hereto. 7. DURATION OF AGREEMENT This Agreement shall terminate and become null and void upon the payment of the Affordable Housing Credits, or the repeal, termination, or modification of any applicable ordinance which act would render the Affordable Housing Obligation unnecessary or unenforceable. 8. SUCCESSORS This Agreement shall benefit and bind the Developer and any successive owners Of Affordable Housing Lots. 9. SEVERABILITY In the event any provision contained in this Agreement is to be held invalid, void or unenforceable by any court of competent jurisdiction, the remaining provisions of this Agreement shall nevertheless, be and remain in full force and effect. WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as of the day and year first above written. DEVELOPER CITY By: Aviara Pointe, LLC, a California limited liability company City of Carlsbad, a Municipal corporatiou of the State of California By: By: Name Rajeev Bhatia Sandra L. Holder Title Managing Member Community Development Director If required by City, proper notarial acknowledgment of execution by Developer must be attached. Ifa Comoration, Agreement must be signed by one corporate officer from each of the following two goups. *Group A. Chairman, President, or Vice-president **Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM RONALD R. BALL, City Attorney Assis.tant City Attorney I3 ATTACHMENT A LEGAL DESCRIPTION OF SUBJECT PROPERTY Lots - through-, inclusive, of La Costa Meadows Unit No. -, Map -, in the City of Carlsbad, County of San Diego, State of California.