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HomeMy WebLinkAbout2008-08-12; City Council; 19544; The Roosevelt Gardens Affordable Housing ProjectCITY OF CARLSBAD - AGENDA BILL AB# 19,544 MTG. 08/12/08 DEPT. HRED REQUEST TO PURCHASE AFFORDABLE HOUSING CREDITS IN THE ROOSEVELT GARDENS AFFORDABLE HOUSING PROJECT DEPT. HEAD/ CITYATTY. CITYMGR.^ 5 Otf^J .( \O^^y RECOMMENDED ACTION: 2008-233 APPROVING a request from Luke Development toADOPT Resolution purchase three (3) Affordable Housing Credits in the Roosevelt Gardens Condominium affordable housing project in order to satisfy the affordable housing obligation of the Trails End housing development in the northwest quadrant under the City's Inclusionary Housing Ordinance. ITEM EXPLANATION: On December 20, 2005, the City Council agreed to designate the Roosevelt Garden Condominium development as a Combined Affordable Housing Project under the City's Inclusionary Housing Program. It will provide 11 units of housing affordable to very low income households. These units represent "housing credits" that may be purchased by future housing developers in the northwest quadrant of the City to satisfy their Inclusionary Housing obligations. At the discretion of the City Council, the credits may be sold at a price set by the Council. The current credit price for the subject units is $140,000 and there are 7 credits available for purchase. The Trails End development is proposed as a 14 unit duplex project on the northwest corner of Carlsbad Village Drive and Donna Drive. The project is eligible to purchase credits in the Roosevelt Gardens Condominium Affordable Housing Project because it is located in the northwest quadrant of the City, and is a relatively small development from an affordable housing perspective. Because of the small size of the project and the difficulty in obtaining financing, Luke Development has elected to pursue the purchase of affordable housing credits rather than constructing units on the site of their market rate units. The City Council has adopted Policies 57 & 58 that govern the sale of affordable housing credits. The policies require the examination of 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. The Affordable Housing Policy Team (staff) has reviewed the above request and utilized the criteria contained in the policies in making their recommendation to approve the purchase of the credits for the noted projects. The Planning Commission has also reviewed the request and recommended approval of the purchase of credits. FISCAL IMPACT: The Affordable Housing Credit for the Roosevelt Gardens Condominiums is currently $140,000 per unit. The purchase of 3 credits will result in a payment of approximately $420,000 to the Village Redevelopment Agency Low and Moderate Income Housing Fund. These funds will be used to assist in the development of affordable housing in the City. FOR C/TV CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED ^D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D EXHIBITS: 9flflR 2331. City Council Resolution No. _I______approving the purchase of credits by Luke Development. 2. Affordable Housing Agreement with Luke Development. DEPARTMENT CONTACT: Frank Boensch, (760) 434-2818, fboen@ci.carlsbad.ca.us \ CITY COUNCIL RESOLUTION NO. 2008-233 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A REQUEST BY LUKE DEVELOPMENT TO PURCHASE THREE AFFORDABLE HOUSING CREDITS IN THE ROOSEVELT GARDENS HOUSING PROJECT IN ORDER TO SATISFY THE AFFORDABLE HOUSING OBLIGATION OF THE TRAILS END PROJECT UNDER THE CITY'S INCLUSIONARY HOUSING ORDINANCE. APPLICANT: LUKE DEVELOPMENT CASE NO: CT 04-14 WHEREAS, Luke Development has received approval of Tentative Maps CT 04-14 for the development of a 14 unit residential developments; and WHEREAS, Luke Development has requested approval from the City of Carlsbad City 12 Council for the purchase of three affordable housing credits in the Roosevelt Gardens housing 13 project to satisfy the inclusionary housing requirement of Tentative Map CT 04-14; and 14 WHEREAS, the City Council did hold a public meeting to consider said request for the purchase of Affordable Housing Credits by Luke Development; and WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of 17 all persons desiring to be heard, said Council considered all factors relating to the application and 18 request to purchase Affordable Housing Credits: 19 NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of 20 Carlsbad, California, as follows: 22 1 - That the above recitations are true and correct. 23 2. The projects are consistent with the goals and objectives of the City of Carlsbad's 24 Housing Element, the Inclusionary Housing Ordinance, and the Carlsbad General Plan. 3. Based upon the analysis contained within the related City Council Staff Report, the City Council finds that the off-site satisfaction of the inclusionary housing requirement is in 27 the public interest. 28 4. That based on the information provided within the City Council Staff Report and 4 testimony presented during the public meeting of the City Council, the City Council hereby 5 APPROVES a request by Luke Development to purchase three affordable housing credits in 6 the Roosevelt Gardens housing project in order to satisfy the affordable housing obligation of 7 the Trails End development (CT 04-14) 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 1 Council as Exhibit 2 of the City Council Staff Report and to execute such other documents, or 12 take other actions as may be necessary or appropriate to assist the developer in acquiring the 13 Affordable Housing Credits, subject to review and final approval by the City Attorney. 14 /// 15 16 17 18 19 20 21 22 23 /// 24 25 /// 26 27 /// 28 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 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 12th day of August, 2008, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall and Packard. NOES: None. ABSENT: Council Member Nygaard. IS, Mayor ATTEST: 1 ORRALNE M. WOOD, City Clerk 0 ^ Recording Requested bv: 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^f^day of ^ . by and between the CITY OF CARLSBAD, a municipal corporation (hereinafter referred to as the "City"), and Luke Development, a Limited Liability Corporation (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 04-14). which provides conditional approval of the construction of 14 multilevel twin homes ("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. 6329 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 21.85.080. NOW, THEREFORE, incorporating the foregoing Recitals and in consideration of the mutual covenants contained herein, the parties agree as follows: 1 . The Recitals Are True And Correct. 2. THAT SATISFACTION OF DEVELOPER'S AFFORDABLE HOUSING REQUIREMENT WILL BE BY THE PURCHASE OF AFFORDABLE HOUSING CREDITS. (a) Performance under this Agreement satisfies the Developers' obligation for affordable housing under Chapter 21.85 of the Carlsbad Municipal Code as applied to the land covered by Carlsbad Tract No. 04-14 by reason of the approvals of the Tentative Map of CT 04-14. including Condition No. 2 listed in Planning Commission Resolution No. 6329. and a Planned Unit Development (PUD 04-12). 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. 2 of Planning Commission Resolution No. 6329. The fee shall be paid prior to the Developer receiving any building permits for the project. Approved 3/1/07 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. 2 of Planning Commission Resolution No. 6329. 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. 04-14. 4. HOLD HARMLESS Developer will indemnify 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 Developers' 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 registed 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: Luke Development. LLC Attn. Chris Coseo 18790 Heritage Drive Poway, CA 92064 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. Approved 3/1/07 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. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as of the day and year first above written. DEVELOPER_LUKE DEVELOPMENT, LLC LABy: Name Title By: Name Title CITY City of Carlsbad, a municipal corporation By: Sandra L. Holder Community Development Director 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. Chairman, President, or Vice-President ** Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must 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 Approved 3/1/07 STATE OF CALIFORNIA ) ) ss. COUNTY OF <5am>eMO) w _O , 2008, before me. V I C-^t V # t C_ , a Notary Public, personally appeared O)n&,(S^oph*>r' CLC&C.O who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certified under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hancLand official seal. 1^^ Comm)^ *T««20 Notary Pubfe - CoMomto / / -// l\Saa^ tan 0*90 Court*My Comm. Exptw Aua 7. Wt Signature [seal] o. CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of 6^Ln U On AuauuU-gM, £LQQ^ before me, J Date ' personally appeared V Here Insert Name aiW Title of the L> Name(s) of Signer(s) BARBARA J.NEOROS Commission #1528315 Notary Public - CcHttamta Son Diego County MyComm Expires Nov 23.2008 Place Notary Seal Above who proved to me on the basis of satisfactory evidence to be the person(e) whose name(e) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in -bts/her/tneif authorized capacity^es), and that by bts/her/tbeir signature^) on the instrument the person(s), or the entity upon behalf of which the person(8)racted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature tJ^^AfjJ/O Q. ignature Notary Public OPTIONAL 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: _ Document Date: 44rQuL£l Number of Pages:. Signer(s) Other Than Named Above: apacity(ies) Claimed by Signer(s) Signer's Nafi Q Individual D Corporate Officer — Titlei D Partner — D Limited D General D Attorney in Fact D Trustee D Guardian or Conservator D Other: Signer Is Representing: Signer's Name: D Individual D Corporate Officer — Title(s): D Partner — D Limited D General D Attorney in Fact ustee D GuarataB4ir Conservator D Other: • Signer Is Representing:. RIGHT THUMBPRINT OF SIGNER Top of thumb here ©2007 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 • wvw.NationalNotary.org Item #5907 Reorder: Call Toll-Free 1 -800-876-6827 ATTACHMENT A LEGAL DESCRIPTION OF SUBJECT PROPERTY THAT PORTION OF LOT 7 OF SECTION 32, TOWNSHIP 11 SOUTH, RANGE 4 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 7; THENCE ALONG THE WEST LINE OF SAID LOT 7, SOUTH 1°32'19" WEST 360.00 FEET; THENCE ALONG THE STRAIGHT LINE DRAWN THROUGH THE NORTHWEST CORNER OF LOT 6 OF FALCON HILL UNIT NO. 3, ACCORDING TO MAP THEREOF NO. 5520, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, SOUTH 88°43'21" EAST 264.90 FEET; THENCE NORTH 36°59'11" EAST 208.57 FEET TO THE BEGINNING OF A TANGENT 892.00 FOOT RADIUS CURVE CONCAVE SOUTHEASTERLY; THENCE NORTHEASTERLY ALONG SAID CURVE 266.77 FEET THROUGH AN ANGLE OF 17°08'07" TO THE NORTH LINE OF SAID LOT 7; THENCE NORTH 88°41'14" WEST 570.54 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THOSE PORTIONS DESCRIBED AS FOLLOWS: EXCEPTION PARCEL A: ALL OF THAT PORTION OF LOT 7, OF SECTION 32, TOWNSHIP 11 SOUTH, RANGE 4 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY APPROVED, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 7, BEING ALSO THE SOUTHWEST CORNER OF THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SAID SECTION 32; THENCE SOUTH 89°11'20" EAST, ALONG THE NORTH LINE OF SAID LOT 7, A DISTANCE OF 353.62 FEET TO THE TRUE POINT OF BEGINNING OF THAT PORTION TO BE DESCRIBED. THENCE FROM SAID TRUE POINT OF BEGINNING SOUTH 24°15'57" EAST, A DISTANCE OF 156.94 FEET TO THE SOUTHEASTERLY BOUNDARY OF GRANTOR'S PROPERTY BEING A POINT ON AN 892.00 FOOT RADIUS CIRCULAR CURVE, CONCAVE SOUTHEASTERLY (FROM SAID POINT THE CENTER OF SAID CURVE BEARS SOUTH 49°33'44" EAST); THENCE NORTHEASTERLY ALONG SAID CURVE, AND SAID GRANTOR'S BOUNDARY, AN ARC DISTANCE OF 206.00 FEET, THROUGH AN ANGLE OF 13°13'54", TO THE NORTH LINE OF SAID LOT 7; THENCE NORTH 89°11'20" WEST, ALONG THE NORTH LINE OF SAID LOT 7, A DISTANCE OF 214.98 FEET TO THE TRUE POINT OF BEGINNING OF THE PORTION DESCRIBED. EXCEPTION PARCEL B: ALL OF THAT PORTION OF LOT 7, OF SECTION 32, TOWNSHIP 11 SOUTH, RANGE 4 WEST, SAN BERNARDINO MERIDIAN IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY APPROVED, DESCRIBED AS FOLLOWS; BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 7, BEING ALSO THE SOUTHWEST CORNER OF THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SAID SECTION 32; THENCE SOUTH 89°11'20" EAST ALONG THE NORTH LINE OF SAID LOT 7 A DISTANCE OF 303.94 FEET TO THE TRUE PONT OF BEGINNING; THENCE FROM SAID TRUE POINT OF BEGINNING SOUTH 24°15'57" EAST A DISTANCE OF 200.85 FEET TO THE SOUTHEASTERLY BOUNDARY OF GRANTOR'S PROPERTY, BEING A POINT ON THE ARC OF AN 892 FOOT RADIUS CURVE, CONCAVE SOUTHEASTERLY, (FROM SAID POINT THE Approved 3/1/07 CENTER OF SAID CURVE BEARS SOUTH 52°48'16" EAST); THENCE NORTHEASTERLY ALONG SAID 892 FOOT RADIUS CURVE, THROUGH AN ANGLE OF 3°14'32" FOR AN ARC DISTANCE OF 50.48 FEET; THENCE NORTH 24°15'57" WEST A DISTANCE OF 156.94 FEET; THENCE NORTH 89°11 '20" WEST A DISTANCE OF 49.68 FEET TO THE TRUE POINT OF BEGINNING. (APN: 156-090-41) Approved 3/1/07