HomeMy WebLinkAbout2003-06-24; City Council; 17219; Purchase Affordable Housing Credits for Tabata9B# 17,219
MTG. 6/24/03
DEPT. HlRED
TITLE: APPLICATION TO PURCHASE AFFORDABLE
CREDITS IN THE VILLA LOMA HOUSING PROJECT FOR
THE TABATA SUBDIVISION
DEPT. HD.
CITY ATTY. &
CITY MGR. G9
RECOMMENDED ACTION:
ADOPT Council Resolution No. 2003-170 APPROVING a request by LMD CARLSBAD 25,
LLC, to purchase three (3) Affordable Housing Credits in the Villa Loma combined housing project in order
to satisfy the affordable housing obligation of the Tobata Subdivision project under the City’s lnclusionary
Housing Ordinance.
ITEM EXPLANATION:
The Tobata Subdivision was approved by the Carlsbad Planning Commission on January 17, 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 16 residential lots.
The applicant is requesting to purchase three (3) affordable housing credits in the Villa Lorna Project to
satisfy the project’s inclusionary 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 (16)
and developable area (5 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 3 credits will result in a
payment of $123,600 to the City’s Housing Trust Fund.
EXHIBITS:
1. City Council Resolution No. 2003-170 2. Draft Affordable Housing Agreement
DEPARTMENT CONTACT: Craig Ruiz (760) 434-281 7, cruiz@ci.carlsbad.ca.us
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CITY COUNCIL RESOLUTION NO. 2003-170
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING A REQUEST BY LMD
CARLSBAD 25, LLC, TO PURCHASE THREE AFFORDABLE
HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT IN
ORDER TO SATISFY THE AFFORDABLE HOUSING OBLIGATION
OF THE TABATA SUBDIVISION PROJECT UNDER THE CITY’S
INCLUSIONARY HOUSING ORDINANCE.
APPLICANT: TABATA SUBDIVISION
CASE NO: CT 00-13
WHEREAS, LMD CARLSBAD 25, LLC has received approval of Tentative Map CT 00-
13 for the development of a 16 unit residential development; and
WHEREAS, LMD CARLSBAD 25, LLC has requested approval from the City of
Zarlsbad City Council for the purchase of three affordable housing credits in the Villa Loma
lousing project to satisfy the inclusionary housing requirement of Tentative Map CT 00- 13; and
WHEREAS, the City Council did hold a public meeting to consider said request for the
iurchase of Affordable Housing Credits by LMD CARLSBAD 25, 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:
I. 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 June 24,
2003, the City Council finds that the off-site satisfaction of the inclusionary housing
requirement is in the public interest.
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CC Resolution No. 2003-170
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 LMD CARLSBAD 25, LLC to purchase three affordable housing
credits in the Villa Loma housing project in order to satisfy the affordable housing obligation
of the Tobata subdivision project under the City’s inclusionary housing ordinance.
5. That the City Council hereby authorizes the Community Development Director to
execute the A ffordable Housing Agreement in substantially the form presented to the City
Council as Exhibit 2 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.
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council
of the City of Carlsbad, California, held on the a~ day of June, 2003 by the following vote, to
wit:
AYES: Council Members Lewis, Kulchin, Hall, Packard
NOES: None
ABSENT: Council Member Finnila
ABSTAIN: None
ATTEST:
:SEAL)
c1C Resolution No. 2003-170
?age 3
4
Recording Requested 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
6‘h day of October, 2003, by and between the CITY OF CARLSBAD, a municipal corporation
(hereinafter referred to as the “City”), and LMD CARLSBAD 25, LLC, a California limited
liability company (hereinafter referred to as the “Developer”), is made with reference to the
following:
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 (CT 00- 13)
which provides conditional approval of the subdivision of sixteen residential lots residential
parcels (“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.
4900 provides that the Affordable Housing Obligation of three (3) units will be satisfied by the
purchase of affordable housing credits, as provided for in Chapter 21.85, Section 21 35.080.
NOW, THEREFORE, incorporating the foregoing Recitals and in consideration of the
mutual covenants contained herein, the parties agree as follows:
I. That the Recitals Are True And Correct.
2. THAT SATISFACTION OF DEVELOPER’S AFFORDABLE HOUSING
REQUIREMENT WILL BE BY THE PURCHASE OF AFFORDABLE
HOUSING CREDITS.
June 11,2002
(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. CT00-13 by reason of the approvals of the Tentative Map of CT
00-13, including Condition No. 11 listed in Planning Commission Resolution No. 4900 and any
other applicable approval.
(b) The Developer shall purchase three (3) Affordable Housing Credits for an amount
established by resolution of the City Council and as required by Condition No. 11 of Planning
Commission Resolution No. 4900. 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. 11 of Planning Commission Resolution No. 4900. 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. 00-13.
4. HOLD HARMLESS
Developer will indemnity and hold harmless (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
June 11,2002
TO THE DEVELOPER:
Lucas and Mercier Development
Attn: Mike Lake
630 Alta Vista Drive, Suite 203
Vista, CA 92084
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.
June 11,2002
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as
of the day and year first above written.
DEVELOPER CITY
LMD Carlsbad 25, LLC,
a California limited liability company
City of Carlsbad, a Municipal corporation
By: a California Corporation
Lucas & Mercier Development, Inc.
t
Community Development Director
By:
ory E. Harris, Secreta
If required by City, proper notarial acknowledgment of execution by Developer must be
attached. If a Corporation, Agreement must be signed by one corporate officer from each of the
following two groups.
*Group A. **Group B.
Chairman, Secretary,
President, or Assistant Secretary,
Vice-president CFO or Assistant Treasurer
Otherwise, the corporation
secretary under corporate seal empowering the officer(s) signing to bind the corporation.
attach a resolution certified by the secretary or assistant
APPROVED AS TO FORM:
RONALD R. BALL, City Attorney
By:
June 11,2002
ATTACHMENT A
LEGAL DESCRIPTION OF SUBJECT PROPERTY
LOTS 1 THROUGH 16, INCLUSIVE, OF CARLSBAD TRACT NO. 00-13,
IN THE ClTY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF
CALIFORNIA, AS SHOWN ON THE MAP THEREOF NO. 14440, FILED
IN THE OFFICE OF THE COUNTY RECORDER, SAN DIEGO COUNTY,
SEPTEMBER 17,2002.
CALIFORNIA ALL=PURPOSE ACKNOWLEDGMENT
State of California I
On October 1 0 I 2 0 0 3 before me, M.K. Stuckey, notary public
personally appeared Gregory E Harris & Donald W Fontana Date Name and Title d Oker (e.g , *Jane Doe, Mary Public")
Name@) of Signer(s)
!&&onally known to me
0 proved to me on the basis of satisfactory
evidence
to be the person(s) whose name(s) Gare
subscribed to the within instrument and
acknowledged to me
the same in
capacity(ies), and
signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNESS my hapd and official seal.
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document: Affordable Housing Agreement
Document Date: 10/10/03 Number of Pages: 6
Signer(s) Other Than Named Above:
Capacityties) Claimed by Signer
Signer's Name:
Individual
Partner - 0 Limited 0 General
Attorney-in-Fact
Trustee
0 Guardian or Consewator 0 Other:
Signer IS Representing: LMD Carlsbad 25 LLC
Corporate Officer - Titte(s): Secretary & VP
0 1999 Nalional Notary Associalion - 9350 De Solo Ave , PO Box 2402 - Chalsworlh. CA 9131 3-2402 - www naimalnolary org Prod No 5907 Reorder: Call Toll-Free 1-800-8766827
October 3,2003
TO: CITY CLERK @ FROM: Management Analyst, Housing and Redevelopment Department
LMD CARLSBAD 25 AFFORDABLE HOUSING AGREEMENT
Attached is an Affordable Housing Agreement for the LMD Carlsbad 25 housing development.
The Affordable Housing Agreement has been signed by the Assistant City Attorney and the
Community Development Director and is now ready to be recorded with the County Recorder’s
office.
LMD Carlsbad 25 is requesting that their title company, First American Title Company, be
allowed to pick up the document and deliver it to the County Recorder. Therefore, at your
earliest convenience, please contact Scott Parks of First American Title Company at 619-768-
4045 to arrange for pick-up. Once I receive a copy of the recorded document, I will provide you
with a copy.
If you have any questions about the above information, please call me at extension 2817.
CRAIG RUlZ
CR:cr