HomeMy WebLinkAbout2019-12-17; City Council; ; An amendment to the conditions of the Tentative Tract Map and the Site Development Plan to purchase one inclusionary housing credit for an eight-unit, residential air-spaCAReview rX
~ CITY COUNCIL
~ Staff Report
Meeting Date:
To:
From:
Staff Contact:
Subject:
Project Name:
Project No.:
Dec. 17,2019
Mayor and City Council
Scott Chadwick, City Manager
Shannon Harker, Associate Planner
shannon.harker@carlsbadca.gov or 760-602-4621
An amendment to the conditions of the Tentative Tract Map and the Site
Development Plan to purchase one inclusionary housing credit for an
eight-unit, residential air-space condominium project located at 2646
State Street.
The Seaglass
AMEND 2019-0006/AMEND 2019-0009 (DEV2017-0236)
Recommended Action
That the City Council hold a public hearing and adopt a resolution approving Amendment No.
AMEND 2019-0006 and Amendment No. AMEND 2019-0009, amendments to Tentative Tract
Map No. CT 2018-0004 and Site Development Plan No. SDP 2018-0021, to satisfy the
inclusionary housing requirement with the purchase of one inclusionary housing credit for an
eight-unit, residential air-space condominium project located at 2646 State Street.
Executive Summary
The applicant, Prophet Solutions, is seeking approval of an amendment to the conditions of
approval for Tentative Tract Map No. CT 2018-0004 and Site Development Plan No. SDP 2018-
0021 for the Seaglass project, an eight-unit townhouse-style condominium development
located at 2646 State Street.
On April 17, 2019, pursuant to Planning Commission Resolution No. 7330 (Exhibit 5), the
Planning Commission recommended approval of the eight-unit condominium project to the City
Council with the condition to purchase one affordable housing credit from Tavarua, an existing
affordable housing apartment complex for seniors located at 3574 Harding Street, and within
the boundaries of the Village and Barrio Master Plan and the Northwest Quadrant of the city.
On June 25, 2019, the City Council approved the project (5-0) with the condition that the
inclusionary housing requirement be satisfied onsite by deed-restricting one dwelling unit as
affordable to lower-income households. City Council Resolution No. 2019-109, included as
Exhibit 3, specifies that Conditions Nos. 4 and 5 of City Council Resolution No. 2019-109
supersede Condition No. 23 of Planning Commission Resolution No. 7330. The applicant agreed
to these conditions at the June 25, 2019 City Council public hearing.
Dec. 17, 2019 Item #19 Page 1 of 62
In lieu of providing the inclusionary unit onsite, the applicant is now requesting (Exhibit 6) to
· revert back to the original Planning Commission condition to purchase one inclusionary housing
credit from the Tavarua senior apartment building.
Discussion
Background/Request:
Pursuant to Section 21.85.070 of the Carlsbad Municipal Code (CMC), the City Council may
approve alternatives to the construction of new inclusionary units onsite if it is determined that
construction would be infeasible or present unreasonable hardship in light of factors such as
project size, site constraints, market competition, price and product disparity, developer
capability, and financial subsidies available. Alternatives include, but are not limited to,
acquisition and rehabilitation of affordable units, conversion of existing market rate units to
affordable units, construction of special needs housing projects or programs and the
contribution to a special needs housing project.
Pursuant to CMC Section 21.85.080, an affordable housing requirement may be satisfied with
offsite construction when it can be demonstrated by a developer that the goals of the
lnclusionary Housing ordinance and the Housing Element would be better served by allowing
the inclusionary requirements to be satisfied offsite, but within the same city quadrant in which
the market-rate units are located. The resulting linked inclusionary housing project site is
considered a combined inclusionary housing project. It is at the sole discretion of City Council
to authorize the residential sites which form a combined inclusionary housing project. In
addition to the factors considered when determining whether construction onsite would be
infeasible or present an unreasonable hardship, are whether the offsite option offers greater
feasibility and cost effectiveness.
Pursuant to CMC Section 21.85.090, inclusionary units created which exceed the final
requirement for a project may, subject to City Council approval in the affordable housing
agreement, be utilized by the developer to satisfy other inclusionary requirements for which it
is obligated or market the units to other developers as a combined project, subject to the
requirements of CMC Section 21.85.080.
At the June 25, 2019, City Council hearing, Council Member Schumacher inquired as to the
feasibility of satisfying the inclusionary housing requirement onsite via deed-restricting one of
the eight market rate units as affordable to lower income households in lieu of purchasing an
inclusionary housing credit from the Tavarua senior affordable housing development. To help
subsidize the cost to the developer to provide the inclusionary unit onsite, financial assistance
from the city's Housing Trust Fund, which currently has a ba lance of $17,700,000, was
discussed as an option. At the time of the City Council hearing, it was unknown how much
financial assistance would be needed to assist the developer. Council Member Schumacher
made a motion to approve the project with the condition that the inclusionary housing unit be
provided onsite. The applicant agreed to the condition. The City Council unanimously approved
the project, as amended, requiring the inclusionary unit to be provided onsite.
Dec. 17, 2019 Item #19 Page 2 of 62
Subsequent to the City Council meeting, staff met with the applicant to discuss the cost to
construct the inclusionary unit onsite and the amount that would be needed from the Housing
Trust Fund to help subsidize the construction of the project. The applicant has indicated that
without a significant subsidy from the Housing Trust Fund (i.e., in excess of $1,000,000}, the
project would not be financially viable. The applicant is therefore requesting to revert back to
the original condition included in Planning Commission Resolution No. 7330 to purchase an
inclusionary housing credit from the Tavarua senior affordable housing development.
Pursuant to City Council Resolution No. 475, the SO-unit Tavarua senior affordable housing
apartment project was approved by the City Council as a combined inclusionary housing
development for housing credit sales purposes on August 11, 2009. The City Council approved
$3,750,000 in financing, also known as a residual receipts loan, to assist the developer with the
acquisition and development of the Tavarua senior affordable housing development. The city's
loan amount of $3,750,000 will be repaid over time through payments from residual receipts.
Any funds received from the purchase of inclusionary housing credits are deposited into the
Housing Trust Fund. These funds are in addition to the repayment funds received from residual
receipts. These additional funds are then used to financially assist the city with the
development of additional, new affordable housing units. Credits remain available to be
purchased from the Tavarua senior affordable housing development.
Please see Exhibit 6 for the applicant's justification, analysis and detailed proforma for each of
the options considered to satisfy the inclusionary housing requirement. A summary of the
options considered by the applicant is also provided below.
Option 1: Restrict Unit H for Affordable Housing Compliance
To be affordable to a low income purchaser (a household whose income is no more than 80
percent of the county median income), the maximum sale price of a one-bedroom unit is
estimated to be $250,000. Assuming this maximum sale price for the one-bedroom inclusionary
unit, the applicant has estimated that designating the smallest unit as an inclusionary unit
would result in a gap of $1,327,250. Therefore, in order to achieve the optimum 14% return
on-investment (ROI), the applicant would need to request a subsidy of $1,327,250 from the
Housing Trust Fund. The city's Housing Policy Team discussed this option and determined the
signific�nt subsidy could not be supported and does not warrant consideration by the Housing
Commission. In addition, a 14% ROI is considered to be an acceptable industry standard rate of
return. Anything less than 14% may jeopardize project financing.
Option 2: Redesign and Reduce Unit H to 1,100 Square Feet
Unit H is designed as a 2,215-square-foot, three-story, one-bedroom unit with an office. Under
this scenario, the size of Unit H would decrease to 1,100 square feet and adjacent Unit G would
increase by 1,100 square feet. Assuming a maximum sale price of $250,000 for the inclusionary
unit, the applicant has estimated a gap of $748,250. Therefore, in order to achieve the
optimum 14% ROI, the applicant would need to request a subsidy of $748,250 from the
Housing Trust Fund. The city's Housing Policy Team discussed this option and determined the
significant subsidy could not be supported and does not warrant consideration by the Housing
Commission.
Dec. 17, 2019 Item #19 Page 3 of 62
Option 3: Purchase Condominium Offsite and Convert to lnclusionary Unit
.The applicant has provided two examples of properties that could be purchased and converted
to inclusionary housing units. One unit is located within the boundaries of the Village and one
unit is located outside of the Village, by Hosp Grove. While the purchase of the unit outside of
the boundaries of the Village is feasible, the applicant strongly opposes this option due to the
time it could take to purchase the unit and fully implement this option. Selection ofthe unit
located in the Village results in a similar subsidy as Option No. 2. In addition, the Housing Policy
Team, as well as the City Council has indicated a preference for providing the unit within the
Village.
Option 4: Purchase an lnclusionary Housing Credit from Tavarua
Due to time constraints and the financial hardship created as a result of either providing the
inclusionary unit onsite or purchasing a unit offsite, the applicant requests City Council approval
to purchase an inclusionary housing credit from Tavarua. The Housing Policy Team supports this
request since there is a preference to satisfy the inclusionary housing requirement in the
Village. Further, a subsidy in excess of $1,000,000 from the Housing Trust Fund to provide the
inclusionary unit onsite could not be supported by staff. The current credit purchase price of an
inclusionary housing credit for the Tavarua project is $84,000.
Fiscal Analysis
If approved, an inclusionary housing fee in the sum of $84,000 will be paid by the applicant
prior to issuance of the building permit. The fee will be deposited into the city's Housing Trust
Fund.
Next Steps
The City Council's action on this item is final.
Environmental Evaluation (CEQA)
Pursuant to Section 15061(b )(3) of the CEQA Guidelines, the City Planner has determined that
the project is not subject to the California Environmental Quality Act (CEQA). The request to
amend the project conditions to allow for the purchase of an inclusionary housing credit will .
not have a significant effect on the environment.
Public Notification and Outreach
The project is not subject to City Council Policy No. 84 -Development Project Public
Involvement Policy, since the project involves an amendment to a project condition.
Exhibits
1. City Council Resolution.
2. Location Map.
3. City Council Resolution No. 2019-109.
4. City Council minutes for The Seaglass project dated June 25, 2019.
5. Planning Commission Resolution No. 7330.
6. Justification letter prepared by applicant, Prophet Solutions, dated Nov. 12, 2019.
Dec. 17, 2019 Item #19 Page 4 of 62
RESOLUTION NO. 2019-266
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING AMENDMENT NO. AMEND 2019-0006 AND
AMENDMENT NO. AMEND 2019-009, AMENDMENTS TO TENTATIVE TRACT
MAP NO. CT 2018-0004 AND SITE DEVELOPMENT PLAN NO. SDP 2018-0021,
TO SATISFY THE INCLUSIONARY REQUIREMENT WITH THE PURCHASE OF
ONE INCLUSIONARY HOUSING CREDIT FROM TAVARUA FOR AN EIGHT-UNIT,
RESIDENTIAL AIR-SPACE CONDOMINIUM PROJECT LOCATED AT 2646 STATE
STREET.
CASE NAME: THE SEAGLASS
CASE NO.: AMEND 2019-0006/AMEND 2019-0009 (DEV2017-0236)
WHEREAS, the Planning Commission did, on April 17, 2019, hold a duly noticed public hearing as
prescribed by law to consider Tentative Tract Map No. CT 2018-0004 and Site Development Plan No. SDP
2018-0021, as referenced in Planning Commission Resolution No. 7330; and the Planning Commission
adopted Planning Commission Resolution No. 7330 recommending to the City Council that it be approved;
and
WHEREAS, Condition No. 23 of Planning Commission Resolution No. 7330 recommended the
purchase of one inclusionary housing credit from Tavarua, an existing SO-unit senior inclusionary housing
apartment building located within the Northwest Quadrant of the city and the boundaries of the Village
and Barrio Master Plan; and
WHEREAS the City Council did, on June 25, 2019, hold a duly noticed public hearing to consider said
Tentative Tract Map and Site Development Plan; and
WHEREAS pursuant to Condition Nos. 3, 4 and 5 of City Council Resolution No. 2019-109, the City
Council imposed conditions superseding Condition No. 23 of Planning Commission Resolution No. 7330,
requiring the inclusionary housing requirement be satisfied onsite by deed-restricting one of the eight
condominium units as affordable to lower-income households and the applicant agreed to the conditions;
and
WHEREAS, on Sep. 26, 2019, citing financial hardship associated with providing the inclusionary
housing unit onsite, the applicant for The Seaglass project filed AMEND 2019-0006 and AMEND 2019-0009,
amendments to Tentative Tract Map No. CT 2018-0004 and Site Development Plan No. SDP 2018-0021, to
request City Council approval for the purchase of one inclusionary housing credit from the Tavarua senior
inclusionary housing development in-lieu of deed-restricting one unit onsite as affordable to lower-income
households; and
Dec. 17, 2019 Item #19 Page 5 of 62
WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any,
of all persons desiring to be heard, the City Council considered all factors relating to the amendments to
the Tentative Tract Map and Site Development Plan.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That Condition Nos. 3, 4, and 5 of City Council Resolution No. 2019-109 are superseded by
Condition No. 3 below.
3. Prior to issuance of the building permit, the Developer shall purchase one (1) inclusionary
housing credit from the Tavarua senior affordable apartments located in the Northwest Quadrant of the
city. The individual credit shall be the amount in effect at the time, as established by City Council Resolution,
from time to time.
4. This action is final the date this resolution is adopted by the City Council. The Provisions of
Chapter 1.16 of the Carlsbad Municipal Code, "Time Limits for Judicial Review" shall apply:
"NOTICE"
The time within which judicial review of this decision must be sought is governed by Code of Civil Procedure,
Section 1094.6, which has been made applicable in the City of Carlsbad by Carlsbad Municipal Code Chapter
1.16. Any petition or other paper seeking review must be filed in the appropriate court not later than the
ninetieth day following the date on which this decision becomes final; however, if within ten days after the
decision becomes final a request for the record is filed with a deposit in an amount sufficient to cover the
estimated cost or preparation of such record, the time within which such petition may be filed in court is
extended to not later than the thirtieth day following the date on which the record is either personally
delivered or mailed to the party, or his attorney of record, if he has one. A written request for the
preparation of the record of the proceedings shall be filed with the City Clerk, City of Carlsbad, 1200
Carlsbad Village Drive, Carlsbad, CA 92008.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad
on the 17th day of December 2019, by the following vote, to wit:
AYES: Hall, Blackburn, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
Dec. 17, 2019 Item #19 Page 6 of 62
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Dec. 17, 2019 Item #19 Page 7 of 62
RESOLUTION NO. 2019-109
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A TENTATIVE TRACT MAP AND SITE
DEVELOPMENT PLAN TO CONSTRUCT AN EIGHT-UNIT, RESIDENTIAL AIR-
SPACE CONDOMINIUM PROJECT ON A 0.25-ACRE SITE LOCATED AT 2646
STREET IN THE VILLAGE CENTER (VC) DISTRICT OF THE VILLAGE AND
BARRIO MASTER PLAN AND WITHIN LOCAL FACILITIES MANAGEMENT
ZONE 1.
CASE NAME: THE SEAGLASS
CASE NO.: CT 2018-0004/SDP 2018-0021 (DEV2017-0236)
WHEREAS, the City Council of the City of Carlsbad, California has determined that pursuant to
the provisions of the Municipal Code, the Planning Commission did, on April 17, 2019, hold a duly
noticed public hearing as prescribed by law to consider Tentative Tract Map No. CT 2018-0004 and Site
Development Plan No. SOP 2018-0021, as referenced in Planning Commission Resolution No. 7330; and
the Planning Commission adopted Planning Commission Resolution No. 7330 recommending to the
City Council that it be approved; and
WHEREAS the City Council of the City of Carlsbad, held a duly noticed public hearing to consider
said Tentative Tract Map and Site Development Plan; and
WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if
any, of all persons desiring to be heard, the City Council considered all factors relating to the Tentative
Tract Map and Site Development Plan.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That the recommendation of the Planning Commission for the approval of Tentative
Tract Map No. CT 2018-0004 and Site Development Plan No. SOP 2018-0021, is approved, and that,
with exception to Condition No. 23 of Planning Commission Resolution No. 7330, the findings and
conditions of the Planning Commission contained in Planning Commission Resolution No. 7330 on file
with the City Clerk and incorporated herein by reference, are the findings and conditions of the City
Council.
3. That Condition No. 23 of Planning Commission Resolution No. 7330 is superseded by
Condition Nos. 4 and 5 below.
Exhibit 3
Dec. 17, 2019 Item #19 Page 9 of 62
4. Prior to the approval of the final map for any phase of this project, or where a map is
not being processed, prior to the issuance of building permits for any lots or units, the Developer shall
enter into an Affordable Housing Agreement with the city to provide and deed restrict one (1) dwelling
unit as affordable to lower-income households, in accordance with the requirements and process set
forth in Chapter 21.85 of the Carlsbad Municipal Code. The draft Affordable Housing Agreement shall
be submitted to the City Planner no later than 60 days prior to the request to final the map. The
recorded Affordable Housing Agreement shall be binding on all future owners and successors in
interest.
5. Developer shall construct one (1) inclusionary unit concurrent with the project's market
rate units, unless both the final decision-making authority of the city and the Developer agree within
an Affordable Housing Agreement to an alternate schedule for development.
6. This action is final the date this resolution is adopted by the City Council. The Provisions
of Chapter 1.16 ofthe Carlsbad Municipal Code, "Time Limits for Judicial Review" shall apply:
"NOTICE"
The time within which judicial review of this decision must be sought is governed by Code of Civil
Procedure, Section 1094.6, which has been made applicable in the City of Carlsbad by Carlsbad
Municipal Code Chapter 1.16. Any petition or other paper seeking review must be filed in the
appropriate court not later than the ninetieth day following the date on which this decision becomes
final; however, if within ten days after the decision becomes final a request for the record is filed with
a deposit in an amount sufficient to cover the estimated cost or preparation of such record, the time
within which such petition may be filed in court is extended to not later than the thirtieth day following
the date on which the record is either personally delivered or mailed to the party, or his attorney of
record, if he has one. A written request for the preparation of the record of the proceedings shall be
filed with the City Clerk, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, CA 92008.
Dec. 17, 2019 Item #19 Page 10 of 62
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 25th day of June, 2019, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher, Hamilton.
None.
None.
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Dec. 17, 2019 Item #19 Page 11 of 62
PLANNING COMMISSION RESOLUTION NO. 7330
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL OF A TENTATIVE
TRACT MAP AND SITE DEVELOPMENT PLAN TO CONSTRUCT AN EIGHT-
UNIT, RESIDENTIAL AIR-SPACE CONDOMINIUM PROJECT ON A 0.25-ACRE
SITE LOCATED AT 2646 STATE STREET IN THE VILLAGE CENTER (VC)
DISTRICT OF THE VILLAGE AND BARRIO MASTER PLAN AND WITHIN
LOCAL FACILITIES MANAGEMENT ZONE 1.
CASE NAME: THE SEAGLASS
CASE NO.: CT 2018-0004/SDP 2018-0021 (DEV2017-0236)
Exhibit 5
WHEREAS, 2646 Sea Glass, LLC, "Oeveloper/Owner," has filed a verified application with the City
of Carlsbad regarding property described as
The Southwesterly 175 feet of the Northwesterly half of Lot 25 of Seaside Lands, in the
City of Carlsbad, County of San Diego, State of California, according to Map thereof No.
1722, filed in the Office of the County Recorder of San Diego County, July 28, 1921
("the Property"); and
WHEREAS, said verified application constitutes a request for a Tentative Tract Map and Site
Development Plan as shown on Exhibit(s) "A" -"X" dated April 17, 2019, on file in the Planning Division
. CT 2018-0004/SDP 2018-0021 -THE SEAGLASS, as provided by Chapters 20.12, 21.06, and 21.35 of the
Carlsbad Municipal Code; and
WHEREAS, the Planning Commission did, on April 17, 2019, hold a duly noticed public hearing as
prescribed by law to consider said request; and
WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if
any, of persons desiring to be heard, said Commission considered all factors relating to the Tentative Tract
Map and Site Development Plan.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Planning Commission of the City of Carlsbad
as follows:
A)
B)
Findings:
That the foregoing recitations are true and correct.
That based on the evidence presented at the public hearing, the Commission
RECOMMENDS APPROVAL of CT 2018-0004/SDP 2018-0021-THE SEAGLASS, based on
the following findings and subject to the following conditions:
Dec. 17, 2019 Item #19 Page 13 of 62
Tentative Tract Map CT 2018-0004
1. That the proposed map and the proposed design and improvement of the subdivision as
conditioned, is consistent with and satisfies all requirements of the General Plan, any applicable
specific plans, Titles 20 and 21 of the Carlsbad Municipal Code, and the State Subdivision Map Act,
and will not cause serious public health problems, in that the proposed one-lot tentative tract
map for an eight-unit residential air-space condominium subdivision is consistent with the
General Plan as described below and satisfies all minimum requirements of the Village and
Barrio Master Plan {VBMP), as well as Titles 20 and 21 of the Carlsbad Municipal Code (CMC)
with respect to the use, public facilities, access, parking and setbacks, as discussed below and
in the project staff report dated April 17, 2019.
2. That the proposed project is compatible with the surrounding future land uses since surrounding
properties are developed, are currently designated as Village-Barrio {VB) in the General Plan
and located in the Village Center (VC) or Village General (VG) Districts of the VBMP. The subject
property, located in the VC District, is bordered to the north by a recreational vehicle
community, to the south by a graphic design office, to the west by a hair salon and a restaurant,
and to the east by a parking lot for a property management office. The adjacent properties to
the north, south, and west are also located within the VC District of the VBMP. The property to
the east is located within the Village General (VG) District of the VBMP. Residential uses located
on State Street and north of Beech Avenue are permitted by right in the VC District. Given the
variety of existing uses within the vicinity of the project site, which include four-story residential
developments and two restaurants, as well as the wide variety of uses permitted in the
surrounding VC and VG districts, the proposed eight-unit residential air-space condominium
project is compatible with existing and future land uses.
3. That the site is physically suitable for the type and density of the development since the site is
adequate in size and shape to accommodate residential development at the density proposed, in
that the VC District within the VBMP allows residential development at a density range of 28 to
35 dwelling units per acre. Based on a net acreage of 0.25 acres, the proposed eight-unit
residential condominium project has a density of 32 dwelling units per acre. As the proposed
project falls within the allowable density range and meets all required development standards,
the project site can accommodate the proposed density.
4. That the design of the subdivision or the type of improvements will not conflict with easements
of record or easements established by court judgment, or acquired by the public at large, for
access through or use of property within the proposed subdivision, in that the project has been
designed and conditioned such that there are nq conflicts with established easements.
5. That the property is not subject to a contract entered into pursuant to the Land Conservation Act
of 1965 (Williamson Act).
6. That the design of the subdivision provides, to the extent feasible, for future passive or natural
heating or cooling opportunities in the subdivision, in that structures have been designed to
include operable windows where practicable and balconies to maximize exposure of each unit ·
to natural light and ventilation from nearby coastal breezes.
7. That the Planning Commission has considered, in connection with the housing proposed by this
subdivision, the housing needs of the region, and balanced those housing needs against the public
service needs of the city and available fiscal and environmental resources in that the project is
PC RESO NO. 7330 -2-Dec. 17, 2019 Item #19 Page 14 of 62
conditioned to require the applicant to purchase one (1) affordable housing credit from the
Tavarua senior affordable apartments located in the Northwest Quadrant of the city.
8. That the design of the subdivision and improvements are not likely to cause substantial
environmental damage nor substantially and avoidably injure fish or wildlife or their habitat, in
that the previously-developed lot is devoid of sensitive vegetation and any natural water
features. Therefore, the proposed project does not impact any fish, wildlife or habitat.
9. That the discharge of waste from the subdivision will not result in violation of existing California
Regional Wc!ter Quality Control Board requirements, in that the project has been designed in
accordance with the Best Management Practices for water quality protection in accordance
with the City's sewer and drainage standards and the project is conditioned to comply with the
National Pollutant Discharge Elimination System (NPDES) requirements.
Site Development Plan SDP 2018-0021
10. That the proposed development or use is consistent with the General Plan and any applicable
master plan or specific plan, complies with all applicable provisions of Chapter 21.06 of the
Carlsbad Municipal Code, and all other applicable provisions of this code, in that the proposed
one-lot tentative tract map for an eight-unit residential air-space condominium subdivision is
consistent with the General Plan as described below and satisfies the minimum requirements
of the Village and Barrio Master Plan, and Titles 20 and 21 of the CMC with respect to public
facilities, access and parking, as discussed below and in the project staff report dated April 17,
2019.
11. That the requested development or use is properly related to the site, surroundings and
environmental settings, will not be detrimental to existing development or uses or to
development or uses specifically permitted in the area in which the proposed development or use
is to be located, and will not adversely impact the site, surroundings or traffic circulation, in that
the project consists of the demolition of an existing single-family home and the construction of
an eight-unit residential air-space condominium project on a 0.25-acre infill site located at 2646
State Street, within the VC District of the VBMP. Residential uses located on State Street and
north of Beech .Avenue are permitted by right in the VC District. The adjacent properties to the
north, south and west are located within the VC District of the VBMP. The property to the east
is located within the VG District of the VBMP. Given the variety of uses allowed in the
surrounding VC and VG districts, as well as the existing four-story residential development to
the southwest, the proposed eight-unit, four-story residential air-space condominium project
is compatible with existing and future land uses. The eight-unit residential air-space
condominium project will not adversely impact the site, surroundings, or traffic circulation in
that the existing surrounding streets have adequate capacity to accommodate the 64 Average
Daily Trips (ADT) generated by the project. The project complies with all minimum development
standards of the VC District and the VBMP, and the project is adequately parked on-site and
does not result in any significant environmental impacts.
12. That the site for the intended development or use is adequate in size and shape to accommodate
the use, in that the VC District within the VBMP allows residential development at a density
range of 28 to 35 dwelling units per acre. Based on a net acreage of 0.25 acres, the proposed
eight-unit residential condominium project has a density of 32 dwelling units per acre. As the
. proposed project falls within the allowable density range and meets all required development
standard~, the project will accommodate the proposed density.
PC RESO NO. 7330 -3-Dec. 17, 2019 Item #19 Page 15 of 62
13. That all yards, setbacks, walls, fences, landscaping, and other features necessary to adjust the
requested development or use to existing or permitted future development or use in the
neighborhood will be provided and maintained, in that as demonstrated in the project staff
report, the eight-unit residential air-space condominium project complies with all development
standards (i.e. setbacks, lot coverage, parking, and height restrictions) of the VC District and the
VBMP. Landscaping along the perimeter of the property, including the areas along State Street,
will be provided consistent with the requirements of the city's Landscape Manual. In addition
to the above, privacy fences will be provided or maintained.
14. That the street systems serving the proposed development or use is adequate to properly handle
all traffic generated by the proposed use, in that the eight-unit residential air-space
condominium project will take access from State Street, which is identified as a Village Street,
and is designed to adequately handle the 64 Average Daily Trips (ADT) generated by the project.
State Street is improved with pavement, curb, gutter and sidewalks. The project will
reconstruct portions of the curb, gutter and sidewalk along the project frontage due to the
modification of the driveway.
City Council Policy No. 43, Allocation for Excess Dwelling Units
15. That the project location and density are compatible with the existing adjacent residential
neighborhoods and/or nearby existing or planned uses in that the surrounding properties are
developed, are currently designated as VB in the General Plan and located in the VC or VG
Districts of the Village and Barrio Master Plan. The subject property, located in the VC District,
is bordered to the north by a recreational vehicle community, to the south by a graphic design
office, to the east by a parking lot for a property management office, and to the west by a hair
salon and a restaurant. The adjacent properties to the north, south and west are located within
the VC District of the VBMP. The property to the east is located within the VG District of the
VBMP. Given the variety of uses allowed in the surrounding VC and VG districts, the proposed
eight-unit air-space condominium project is compatible with existing and future land uses.
16. That the project location and density are in accordance with the applicable provisions of the .
General Plan and any other applicable planning document, in that the VC District within the
VBMP allows residential development at a density range of 28 to 35 dwelling units per acre.
Based on a net acreage of 0.25 acres, the proposed eight-unit residential condominium units
have a density of 32 dwelling units per acre. As the proposed project falls within the allowable
density range and meets all required development standards, the project is consistent with the
General Plan and VBMP.
17. That there are an adequate number of units in the Excess Dwelling Unit Bank in the Village to
allocate seven (7) units (net unit increase on-site). Per the city's Quadrant Dwelling Unit Report
dated February 28, 2019, less recent allocations, 567 units remain available for allocation in the
Village.
General
18. The Planning Commission finds that the project, as conditioned herein, is in conformance with
the Elements of the city's General Plan, and the development standards of the Village and Barrio
Master Plan, based on the facts set forth in the staff report dated April 17, 2019 including, but
not limited to the following:
PC RESO NO. 7330 -4-Dec. 17, 2019 Item #19 Page 16 of 62
a. Land Use -The proposal to construct eight (8) residential condominiums would enhance the
vitality of the Village by providing new residential land uses near the downtown core area.
The project reinforces the pedestrian orientation desired for the downtown area by
providing residents an opportunity to walk to shopping, restaurants, recreation, and mass
transit functions. The project's proximity to existing bus routes and mass transit helps
further the goal of providing new economic development near transportation corridors.
Overall, the residential project would contribute toward the revitalization of the Village area.
b. Mobility-The proposed project has been designed to meet circulation requirements, which
include maintaining or enhancing frontage improvements consisting of sidewalks and
landscaping. In addition, the applicant is required to pay traffic impact fees prior to the
issuance of building permits that would go toward future road improvements. The proposed
project is located approximately one-quarter mile from the Carlsbad Village train station,
which provides rail and bus service throughout the day. The project's proximity to the transit
station would provide residents with the opportunity to commute to major job centers,
thereby reducing vehicle miles trav.eled (VMTs) and their carbon footprint. Furthermore, the
project supports walkability and mobility by locating the project near existing goods and
services within the Village.
c. Noise -The proposed project is consistent with the Noise Element of the General Plan in
that the building's design, with the windows closed, mechanical ventilation and a minimum
STC rating of 30 for the windows, complies with the requirements of the noise analysis
report (Veneklasen Associates, dated April 15, 2018) and adequately attenuates the interior
noise levels for the new condominiums to 45 dB(a) CNEL or less (i.e., interior average noise
level). The project is conditioned to provide mechanical ventilation and windows with a
minimum STC rating of 30.
d. Housing -As eight (8) units are proposed, notless than 15 percent of the total units or one
(1) unit shall be constructed and restricted both as to occupancy and affordability to lower-
income households. Pursuant to CMC Section 21.85.070, when new construction is
determined to be infeasible or present a hardship, alternatives to the construction of a unit
onsite include a contribution to a special needs housing project or program. On February
13, 2018, the city's Housing Policy Team recommended approval of the applicant's request
to purchase one (1) affordable housing credit from the Tavarua senior affordable
apartments . located in the Northwest Quadrant of the city. The project has been
conditioned to purchase one (1) affordable housing credit prior to issuance of the building
permit.
e. Public Safety-The proposed structural improvements would be required to meet all seismic
design standards. The Fire Department has approved an Alternative Materials and Method
Request (AM&M) which includes an upgraded fire sprinkler system in-lieu of providing a
Fire Department turn-around onsite. Therefore, the proposed project is consistent with the
applicable fire safety requirements. The project would be required to develop and
implement a program of "best management practices" for the elimination and reduction of
pollutants which enter into and/or are transported within storm drainage facilities. The
project has been conditioned to pay all applicable public facilities fees for Zone 1.
f. VC District Standards -The project as designed is consistent with the development
standards for the VC District, the VBMP Design Guidelines and all other applicable
regulations set forth in the VBMP as discussed in the project staff report and Attachment 4.
PC RESO NO. 7330 -5-Dec. 17, 2019 Item #19 Page 17 of 62
The project is not requesting any deviations to the development standards and all required
parking is located on-site.
19. The project is consistent with the Citywide Facilities and Improvements Plan, the Local Facilities
Management Plan for Zone 1 and all city public facility policies and ordinances. The project
includes elements or has been conditioned to construct or provide funding to ensure that all
facilities and improvements regarding sewer collection and treatment; water; drainage;
circulation; fire; schools; parks and other recreational facilities; libraries; government
administrative facilities; and open space, related to the project will be installed to serve new
development prior to or concurrent with need. Specifically,
a. The project has been conditioned to provide proof from the Carlsbad Unified School
District that the project has satisfied its obligation for school facilities.
b. Park-in-lieu fees are required by Carlsbad Municipal Code Chapter 20.44, and will be
collected prior to issuance of building permit.
c. The Public Facility fee is required to be paid by Council Policy No. 17 and will be collected
prior to the issuance of building permit.
d. The Local Facilities Management fee for Zone 1 is required by Carlsbad Municipal Code
Section 21.90.050 and will be collected prior to issuance of building permit.
20. The project has been conditioned to pay any increase in public facility fee, or new construction
tax, or development fees, and has agreed to abide by any additional requirements established by
a Local Facilities Management Plan prepared pursuant to Chapter 21.90 of the Carlsbad Municipal
Code. This will ensure continued availability of public facilities and will mitigate any cumulative
impacts created by the project.
21. This project has been conditioned to comply with any requirement approved as part of the Local
Facilities Management Plan for Zone 1.
22. That all necessary public facilities required by the Growth Management Ordinance will be
constructed or are guaranteed to be constructed concurrently with the need for them created by
this project and in compliance with adopted city standards.
23. That the project is consistent with the city's Landscape Manual and Water Efficient Landscape
Ordinance {Carlsbad Municipal Code Chapter 18.50).
24. The Planning Commission has reviewed each of the exactions imposed on the Developer
contained in this resolution, and hereby finds, in this case, that the exa_ctions are imposed to
mitigate impacts caused by or reasonably related to the project, and the extent and the degree
of the exaction is in rough proportionality to the impact caused by the project.
Conditions:
NOTE: Unless otherwise specified herein, all conditions shall be satisfied prior to the issuance of a
grading or building permit, or approval of the Final Map, whichever occurs first.
1. If any of the following conditions fail to occur, or if they are, by their terms, to be implemented
and maintained over time, if any of such conditions fail to be so implemented and maintained
PC RESO NO. 7330 -6-Dec. 17, 2019 Item #19 Page 18 of 62
according to their terms, the city shall have the right to revoke or modify all approvals herein
granted; deny or further condition issuance of all future building permits; deny, revoke, or further
condition all certificates of occupancy issued under the authority of approvals herein granted;
record a notice of violation on the property title; institute and prosecute litigation to compel their
compliance with said conditions or seek damages for their violation. No vested rights are gained
by Developer or a successor in interest by the city's approval of this Tentative Tract Map and Site
Development Plan.
2. Staff is authorized and directed to make, or require the Developer to make, all corrections and
modifications to the Tentative Tract Map and Site Development Plan documents, as necessary
to make them internally consistent and in conformity with the final action on the project.
Development shall occur substantially as shown on the approved Exhibits. Any proposed
development, different from this approval, shall require an amendment to this approval.
3. Developer shall comply with all applicable provisions of federal, state, and local laws and
regulations in effect at the time of building permit issuance.
4. If any condition for construction of any public improvements or facilities, or the payment of any
fees in-lieu thereof, imposed by this approval or imposed by law on this Project are challenged,
this approval shall be suspended as provided in Government Code Section 66020. If any such
condition is determined to be invalid, this approval shall be invalid unless the City Council
determines that the project without the condition complies with all requirements of law.
5. Developer/Operator shall and does hereby agree to indemnify, protect, defend, and hold
harmless the City of Carlsbad, its Council members, officers, employees, agents, and
representatives, from and against any and all liabilities, losses, damages, demands, claims and
costs, including court costs and attorney's fees incurred by the city arising, directly or indirectly,
from (a) city's approval and issuance of this Tentative Tract Map and Site Development Plan, (bl
city's approval or issuance of any permit or action, whether discretionary or nondiscretionary, in
connection with the use contemplated herein, and (c) Developer/Operator's installation and
operation of the facility permitted hereby, including without limitation, any and all liabilities
arising from the emission by the facility of electromagnetic fields or other energy waves or
emissions. This obligation survives until all legal proceedings have been concluded and continues
even if the city's approval is not validated.
6. Prior to submittal of the building plans, improvement plans, grading plans, or final map, whichever
occurs first, developer shall submit to the City Planner, a 24" x 36" copy of the Tentative Map,
conceptual grading plar1 and preliminary utility plan reflecting the conditions approved by the final
decision-making body. The copy shall be submitted to the City Planner, reviewed and, if found
acceptable, signed by the city's project planner and project engineer. If no changes were required,
the approved exhibits shall fulfill this condition.
7. Prior to the issuance of a building permit, the Developer shall provide proof to the Building
Division from the Carlsbad Unified School District that this project has satisfied its obligation to
provide school facilities.
8. This project shall comply with all conditions and mitigation measures which are required as part
of the Zone 1 Local Facilities Management Plan and any amendments made to that Plan prior to
the issuance of building permits.
PC RESO NO. 7330 -7-Dec. 17, 2019 Item #19 Page 19 of 62
9. This approval shall become null and void if building permits are not issued for this project within
24 months from the date of project approval.
10. Building permits will not be issued for this project unless the local agency providing water and
sewer services to the project provides written certification to the city that adequate water service
and sewer facilities, respectively, are available to the project at the time of the application for the
building _permit, and that water and sewer capacity and facilities will continue to be available until
the time of occupancy. A note to this effect shall be placed on the Final Map.
11. Developer shall pay the Citywide Public Facilities Fee imposed by City Council Policy #17, the
License Tax on new construction imposed by Carlsbad Municipal Code Section 5.09.030, and CFD
#1 special tax (if applicable), subject to any credits authorized by Carlsbad Municipal Code Section
5.09.040. Developer shall also pay any applicable Local Facilities Management Plan fee for Zone
1, pursuant to Chapter 21.90. All such taxes/fees shall be paid at issuance of building permit. If
the taxes/fees are not paid, this approval will not be consistent with the General Plan and shall
become void.
12. Prior to the issuance of the approval of the Final Map, Developer shall submit to the city a Notice
of Restriction executed by the owner of the real property to be developed. Said notice is to be
filed in the office of the County Recorder, subject to the satisfaction of the City Planner, notifying
all interested parties and successors in interest that the City of Carlsbad has issued a(n) Tentative
Tract Map and Site Development Plan by Resolution(s) No. 7330 on the property. Said Notice of
Restriction shall note the property description, location of the file containing complete project
details and all conditions of approval as well as any conditions or restrictions specified for
inclusion in the Notice of Restriction. The City Planner has the authority to execute and record an
amendment to the notice which modifies or terminates said notice upon a showing of good cause
by the Developer or successor in interest.
13. The project is subject to the Prescriptive Compliance Option (PCO) of the City of Carlsbad's
Landscape Manual. Developer shall construct and install all landscaping and irrigation as shown
on the PCO plan approved as part of this project and on file in the Planning Division. Prior to
issuance of a building permit, Developer shall submit an application pursuant to the landscape
plancheck process on file in the Planning Division; however, no landscape plans are required, and
Developer shall only be responsible to pay the landscape inspection fee, with said application. The
approved PCO plan will be utilized by the city as part of the project's final inspection process.
14. Developer shall establish a homeowner's association and corresponding covenants, conditions
and restrictions {CC&Rs). Said CC&Rs shall be submitted to and approved by the City Planner prior
to final map approval. Prior to issuance of a building permit, the Developer shall provide the
Planning Division with a recorded copy of the official CC&Rs that have been approved by the
Department of Real Estate and the City Planner. At a minimum, the CC&Rs shall contain the
following provisions:
a. General Enforcement by the City: The City shall have the right, but not the obligation, to
enforce those Protective Covenants set forth in this Declaration in favor of, or in which the
City has an interest.
b. Notice and Amendment: A copy of any proposed amendment shall be provided to the City in
advance. If the proposed amendment affects the City, City shall have the right to disapprove.
A copy of the final approved amendment shall be transmitted to City within 30 days for the
official record.
PC RESO NO . 7330 -8-Dec. 17, 2019 Item #19 Page 20 of 62
c. Failure of Association to Maintain Common Area Lots and Easements: In the event that the
Association fails to maintain the "Common Area Lots and/or the Association's Easements" as
provided in Article ___ _, Section _____ the City shall have the right, but not the
duty, to perform the necessary maintenance. If the City elects to perform such maintenance,
the City shall give written notice to the Association, with a copy thereof to the Owners in the
Project, setting forth with particularity the maintenance which the City finds to be required
and requesting the same be carried out by the Association within a period of thirty (30) days
from the giving of such notice. In the event that the Association fails to carry out such
maintenance of the Common Area Lots and/or Association's Easements within the period
specified by the City's notice, the City shall be entitled to cause such work to be completed
and shall be entitled to reimbursement with respect thereto from the Owners as provided
herein.
d. Special Assessments Levied by the City: In the event the City has performed the necessary
maintenance to either Common Area Lots and/or Association's Easements, the City shall
submit a written invoice to the Association for all costs incurred by the City to perform such
maintenance of the Common Area Lots and or Association's Easements. The City shall provide
a copy of such_ invoice to each Owner in the Project, together with a statement that if the
Association fails to pay such invoice in full within the time specified, the City will pursue
collection against the Owners in the Project pursuant to the provisions of this Section. Said
invoice shall be due and payable by the Association within twenty (20) days of receipt by the
Association. If the Association shall fail to pay such invoice in full within the period specified,
payment shall be deemed delinquent and shall be subject to a late charge in an amount equal
to six.percent {6%) of.the amount of the invoice. Thereafter the City may pursue collection
from the Association by means of any remedies available at law or in equity. Without limiting
the generality of the foregoing, in addition to all other rights and remedies available to the
City, the City may levy a special assessment against the Owners of each Lot in the Project for
an equal pro rata share of the invoice, plus the late charge. Such special assessment shall
constitute a charge on the land and shall be a continuing lien upon each Lot against which the
special assessment is levied. Each Owner in the Project hereby vests the City with the right
and power to levy such special assessment, to impose a lien upon their respective Lot and to
bring all legal actions and/or to pursue lien foreclosure procedures against any Owner and
his/her respective Lot for purposes of collecting such special assessment in accordance with
the procedures set forth in Article ____ of this Declaration.
e. Landscape . Maintenance Responsibilities: The HOAs and individual lot or unit owner
landscape maintenance responsibilities shall be as set forth in Exhibit ____ _
f. Balconies, trellis, and decks: The individual lot or unit owner allowances and prohibitions
regarding balconies, trellis, and decks shall be as set forth in Exhibit ___ _
15. This project is being approved as a condominium permit for residential ownership purposes. If
any of the residential units in the project are rented, the minimum time increment for such rental
shall be not less than 31 days. The CC&Rs for the project shall include this requirement. Should
the City Council adopt an ordinance that would permit rental of the units for less than 31 days,
this condition shall be null and .void.
16. Prior to issuance of building permits, the Developer shall submit to the City Planner a recorded
copy of the Condominium Plan filed with the Department of Real Estate which is in conformance
with the City-approved documents and exhibits.
PC RESO NO. 7330 -9-Dec. 17, 2019 Item #19 Page 21 of 62
17. All roof appurtenances, including _air conditioners, shall be architecturally integrated and
concealed from view and the sound buffered from adjacent properties and streets, in substance
as provided in Building Department Policy No. 80-6, to the satisfaction of the Directors of
Community Development and Planning. If it is determined that the air conditioning equipment
is visible, a parapet screen shall be installed around the units prior to issuance of occupancy, to
the satisfaction of the City Planner.
18. If satisfaction of the school facility requirement involves a Mello-Roos Community Facilities
District or other financing mechanism which is inconsistent with City Council Policy No. 38, by
allowing a pass-through of the taxes or fees to individual home buyers, then in addition to any
other disclosure required by law or Council policy, the Developer shall disclose to future owners
in the project, to the maximum extent possible, the existence of the tax or fee, and that the school
district is the taxing agency responsible for the financing mechanism. The form of notice is subject
to the approval of the City Planner and shall at least include a handout and a sign inside the sales
facility, or inside each unit, stating the fact of a potential pass-through of fees or taxes exists and
where complete information regarding those fees or taxes can be obtained.
19. Developer shall display a current Zoning and Land Use Map, or an alternative, suitable to the City
Planner, in the sales office or inside each unit, at all times. All sales maps that are distributed or
made available to the public shall include but not be limited to trails, future and existing schools,
parks, and streets.
20. Developer shall post a sign in the sales office, or inside each unit, in a prominent location that
discloses which special districts and school district provide service to the project. Said sign shall
remain posted until all of the units are sold.
21. No outdoor storage of materials shall occur onsite unless required by the Fire Chief. When so
required, the Developer shall submit and obtain approval of the Fire Chief and the City Planner of
an Outdoor Storage Plan, and thereafter comply with the approved plan.
22. Developer shall submit and obtain City Planner approval of an exterior lighting plan including
parking areas. All lighting shall be designed to reflect downward and avoid any impacts on
adjacent homes or property.
23. Prior to issuance of the building permit, the Developer shall purchase one (1) inclusionary
housing credit from the Tavarua senior affordable apartments located in the Northwest
Quadrant of the city. The individual credit shall be the amount in effect at the time, as
established by City Council Resolution from time to time.
24. Mechanical ventilation for each unit and windows with a minimum STC rating of 30 shall be
shown on the plans submitted for building permit since windows are required to be closed to
· meet the maximum 45 dB(a) CNEL interior noise level.
Engineering
General
25. Prior to hauling dirt or construction materials to or from any proposed construction site within
this project, developer shall apply for and obtain approval from, the'city engineer for the proposed
haul route.
PC RESO NO. 7330 -10-Dec. 17, 2019 Item #19 Page 22 of 62
26. This project is approved upon the express condition that building permits will not be issued for
the development of the subject property, unless the district engineer has determined that
adequate water and sewer facilities are available at the time of permit issuance and will continue
to be available until time of occupancy.
27. Developer shall submit to the city engineer an acceptable instrument, via CC&Rs and/or other
recorded document, addressing the maintenance, repair, and replacement of shared private
improvements within this subdivision, including but not limited to private driveway, utilities,
landscaping, lighting, enhanced paving, low impact design features and storm drain facilities
located therein and to distribute the costs of such maintenance in an equitable manner among
the owners of the properties within this subdivision.
28. · Developer shall include rain gutters on the building plans subject to the city engineer's review and
a ppr.oval. Developer shall install rain gutters in accordance with said plans.
29. Developer shall prepare, submit and process for city engineer approval a final map to subdivide
this project. There shall be one Final Map recorded for this project. Developer shall pay the city
standard map review plan check fees.
30. Developer shall install sight distance corridors at all street intersections and driveways in
accordance with City Engineering Standards. The property owner shall maintain this condition.
Fees/ Agreements
31. Developer shall cause property owner to execute and submit to the city engineer for recordation,
the city's standard form Geologic Failure Hold Harmless Agreement.
32. Developer shall cause property owner to execute and submit to the city engineer for recordation
the city's standard form Drainage Hold Harmless Agreement.
Grading
33. Based upon a review of the proposed grading and the grading quantities shown on the tentative
map, a grading permit for this project is required. Developer shall prepare and submit plans and
technical studies/reports as required by city engineer, post security and pay all applicable grading
plan review and permit fees per the city's latest fee schedule.
34. Prior to approval of the grading plan, the applicant shall submit a Construction Plan to the city
engineer for review and approval. Said Plan may be required to include, but not be limited to,
identifying the location of the construction trailer, material staging, material deliveries,
bathroom facilities, parking of construction vehicles, employee parking, construction fencing
and gates, obtaining any necessary permission for off-site encroachment, addressing
pedestrian safety, a'nd identifying time restrictions for various construction activities. All
material staging, construction trailers, bathroom facilities, etc. shall be located outside the
public right-of-way unless otherwise approved by the city engineer or the Construction
Management & Inspection engineering manager.
Storm Water Quality
PC RESO NO. 7330 -11-Dec. 17, 2019 Item #19 Page 23 of 62
35. Developer shall comply with the city's Stormwater Regulations, latest version, and shall
implement best management practices at all times. Best management practices include but are
not limited to pollution control practices or devices, erosion control to prevent silt runoff during
construction, general housekeeping practices, pollution prevention and educational practices,
maintenance procedures, and other management practices or devices to prevent or reduce the
discharge of pollutants to stormwater, receiving water or stormwater conveyance system to the
maximum extent practicable. Developer shall notify prospective owners and tenants of the above
requirements.
36. Developer shall complete and submit to the city engineer a Determination of Project's SWPPP
Tier Level and Construction Threat Level Form pursuant to City Engineering Standards. Developer
shall also submit the appropriate Tier Level Storm Water Compliance form and appropriate Tier
Level Storm Water Pollution Prevention Plan (SWPPP) to the satisfaction of the city engineer.
Developer shall pay all applicable SWPPP plan review and inspection fees per the city's latest fee
schedule.
37. Developer is responsible to ensure that all final design plans (grading plans, improvement plans,
landscape plans, building plans, etc.) incorporate all source control, site design, pollutant control
BMP and appljcable hydromodification measures.
38. Developer shall complete the City of Carlsbad Standard Stormwater Requirement Checklist Form.
Developer is responsible to ensure that an final design plans, grading plans, and building plans
incorporate applicable best management practices (BMPs). These BMPs include site design,
source control and Low Impact Design (LID) measures including, but not limited to, minimizing
the use of impervious area (paving), routing run-offfrom impervious area to pervious/landscape
areas, preventing illicit discharges into the storm drain and adding storm drain stenciling or
signage all to the satisfaction of the city engineer.
Dedications/Improvements
39. Developer shall cause owner to dedicate to the city an easement for public pedestrian access
purposes as shown on the tentative map. The offer shall be made by a certificate on the final map
or separate recorded document. All land so offered shall be free and clear of all liens and
encumbrances and without cost to the city. Streets that are already public are not required to be
rededicated. Additional easements may be required at final design to the satisfaction of the city
engineer.
40. Developer shall cause owner to dedicate to Carlsbad Municipal Water District an easement for
water purposes as shown on the tentative map. The offer shall be made by a certificate on the
final map or separate recorded document. All land so offered shall be free and clear of all liens
and encumbrances and without cost to the city. Streets that are already public are not required
to be rededicated. Additional easements may be required at final design to the satisfaction of the
city engineer.
41. Developer shall design the private drainage systems, as shown on the tentative map to the
satisfaction of the city engineer. All private drainage systems (12" diameter storm drain and
larger) shall be inspected by the city. Developer shall pay the standard improvement plan check
and inspection fees for private drainage systems.
42. Prior to any work in city right-of-way or public easements, developer shall apply for and obtain
a right-of-way permit to the satisfaction of the city engineer.
PC RESO NO. 7330 -12-Dec. 17, 2019 Item #19 Page 24 of 62
43. Developer shall prepare and process public improvement plans and, prior to city engineer
approval of said plans, shall execute a city standard Subdivision Improvement Agreement to
install and shall post security in accordance with C.M.C. Section 20.16.070 for public
improvements shown on the tentative map. Said improvements shall be installed to city standards
to the satisfaction of the city engineer. These improvements include, but are not limited to:
a. Frontage improvements along State Street including curb, gutter, sidewalk and street
light.
b. Water service and meter.
c. Sewer manhole and lateral.
d. Fire service lateral.
Developer shall pay the standard improvement plan check and inspection fees. Improvements
listed above shall be constructed within 36 months of approval of the subdivision or development
improvement agreement or such other time .as provided in said agreement.
44. Developer shall ensure utility transformers or raised water backflow preventers that serve this ·
development are located outside the right-of-way as shown on the tentative map and to the
satisfaction of the city engineer. These facilities shall be constructed within the property.
Non-Mapping Notes
45. Add the following notes to the final map as non-mapping data:
a. Developer has executed a city standard (SUBDIVISION/DEVELOPMENT) Improvement
Agreement and has posted security in accordance with C.M.C. Section 20.16.070 to install
public improvements shown on the tentative map. These improvements include, but are
not limited to:
i. Frontage improvements along State Street including curb, gutter, sidewalk and
street light.
ii. Water service and meter.
iii. Sewer manhole and lateral.
iv. Fire service ·lateral.
b. Building permits will not be issued for development of the subject property unless the
appropriate agency determines that sewer and water facilities are available.
c. Geotechnical Caution: The owner of this property on behalf of itself and all of its
successors in interest has agreed to hold harmless and indemnify the City of Carlsbad
from any action that may arise through any geological failure, ground water seepage or
land subsidence and subsequent damage that may occur on, or adjacent to, this
subdivision due to its construction, operation or maintenance.
PC RESO NO. 7330 -13-Dec. 17, 2019 Item #19 Page 25 of 62
Utilities
46.
d. No structure, fence, wall, tree, shrub, sign, or other object may be placed or permitted to
encroach within the area identified as a sight distance corridor as defined by City of
Carlsbad Engineering Standards or line-of-sight per Caltrans standards.
e. The owner of this property on behalf of itself and all of its successors in interest has
agreed to hold harmless and indemnify the City of Carlsbad from any action that may
arise through any diversion of waters, the alteration of the normal flow of surface waters
or drainage, or the concentration of surface waters or drainage from the drainage system
or other improvements identified in the city approved development plans; or by the
design, construction or maintenance of the drainage system or other improvements
identified in the city approved development plans.
f. There are no public park or recreational facilities to be located in whole or in part within
this subdivision. The subdivider is therefore obligated to pay park-in-lieu fees in
accordance with section 20.44.050 of the Carlsbad Municipal Code and has either paid all
of said park in-lieu fees or agreed to pay all of said park-in-lieu fees in accordance with
section 20.16.070 of the Carlsbad Municipal Code.
Developer shall meet with the fire marshal to determine if fire protection measures (fire flows,
fire hydrant locations, building sprinklers) are required to serve the project. Fire hydrants, if
proposed, shall be considered public improvements and shall be served by public water mains to
the satisfaction of the district engineer.
47. Developer shall install potable water and/or recycled water services and meters at locations
approved by the district engineer. The locations of said services shall be reflected on public
improvement plans.
48. The developer shall agree to install sewer laterals and clean-outs at locations approved by the city
engineer. The locations of sewer laterals shall be reflected on public improvement plans.
49. The developer shall design and agree to construct public water, sewer, and recycled water
facilities substantially as shown on the tentative map to the satisfactjon of the district engineer
and city engineer.
50. The potable water service for this project shall be master-metered which shall be located within
a water easement subject to approval by the district engineer. Developer shall install private
sub-meters as necessary for all proposed units .in the building. Final meter design, backflow
preventer, size and manufacturer shall be provided to the satisfaction of the district engineer
and shown on the grading plans.
Code Reminders
51. Developer shall pay planned local area drainage fees in accordance with Section 15.08.020 of the
City of Carlsbad Municipal Code to the satisfaction of the city engineer.
52. Developer shall pay traffic impact and sewer impact fees based on Section 18.42 and Section
13.10 of the City of Carlsbad Municipal Code, respectively. The Average Daily Trips (ADT) and floor
area contained in the staff report and shown on the tentative map are for planning purposes only.
PC RESO NO. 7330 -14-Dec. 17, 2019 Item #19 Page 26 of 62
53. Subdivider shall comply with Section 20.16.040(d) of the Carlsbad Municipal Code regarding the
undergrounding of existing overhead utilities.
54. Developer shall pay park-in-lieu fees in accordance with Section 20.44 of the City of Carlsbad
Municipal Code to the satisfaction of the City Engineer.
55. Prior to the ·issuance of a building permit, Developer shall pay a Public Facility fee as required by
Council Policy No. 17.
56. Prior to the issuance of a building permit, Developer shall pay the Local Facilities Management
fee for Zone 1 as required by Carlsbad Municipal Code Section 21.90.050.
57. Developer shall pay a landscape inspection fee as required by Section 20.08.050 of the Carlsbad
Municipal Code.
58. Approval of this request shall not excuse compliance with all applicable sections of the Zoning
Ordinance and all other applicable city ordinances in effect at time of building permit issuance,
except as otherwise specifically provided herein.
59. Premise identification (addresse~) shall be provided consistent with Carlsbad Municipal Code
Section 18.04.320.
60. Developer acknowledges new forthcoming requirements related to the city's Climate Action
Plan (CAP) will likely impact development requirements of this project, and may be different
than what is proposed on the project plans or in the project's CAP Checklist. Developer
acknowledges the new CAP requirements are related to energy efficiency, photovoltaic, electric
vehicle charging, water heating and traffic demand management requirements, as set forth in
City Council Ordinance Nos. CS-347, CS-348, CS-349 and CS-350 and City Council Resolution No.
2019-024, are ava·ilable on the city's website. CAP requirements may impact, but are not limited
to, site design and local building code requirements. If incorporating new CAP requirements
results in substantial modifications to the project, then prior to issuance of development
permits, Developer may be required to submit and receive approval of a Consistency
Determination or Amendment for this project through the Planning Division. Once adopted as
part ofTitle 18 and in effect, compliance with the new CAP requirements must be demonstrated
on or with the construction plans prior to issuance of the applicable development permits.
NO. 7330 -15-Dec. 17, 2019 Item #19 Page 27 of 62
of consideration. The attached, Scenarios 1 thru 4, were taken seriously and, in so doing, we analyzed each in
order to reach an amount required from the Trust Fund to subsidize the Deficiency Loss. (See attached). Time
related factors are significant. The basic problem ls the need for a significant subsidy to overcome the economics
of such a small project as it relates to an actual Affordable Housing Unit on-site or off.
Summary:
All of the potential alternatives that were investigated appear to have significant "Deficiency Loss Impact" burdens
and/or would require a significant subsidy from the Housing Trust Fund. Scenario 3, purchasing a property offsite,
presents time related complications for the project in addition to Trust Fund approvals. The various options are
presented for the Council's consideration.
Conclusion:
Applicant requests the City Council's to support the purchase of an$ 84,000 Affordable Housing credit as originally
supported by the Carlsbad Housing Policy Team and the Planning Commission {Exhibit 4).
Pursuant to the criteria based within the CMC Code Section 21.85.070: ... "when new construction is determined to
be infeasible or present a hardship, alternatives to the construction of a unit onsite include a contribution to a
special needs housing project or program." Tpzz=_
i:::. Boone .
Project Manager/ Representative
Applicant for 2646 Sea Glass, LLC
For Prophet Solutions, Inc.
5845 Avenida Encinas, Suite 138
Carlsbad, CA 92008
(858) 334-9490 cell / {760) 999-2146 office
.,H 1:; .\,niid.1 F.1wi11;i ,, Snik 1:1H. C1rl-..h;1d . C.\ qj1HJX . (71;0) qqil-'.ll I.ti
l .i( t·11"'v ~1(),i.,, 1 .\. B. < ·-x. < ·!.1
Dec. 17, 2019 Item #19 Page 30 of 62
Dec. 17, 2019Item #19 Page 31 of 62
Scenario's
for
Consideration
(1 thru 4)
Dec. 17, 2019 Item #19 Page 32 of 62
Scenario 1 Revised 11,12.1~
Restrict Unit H for Affordable Housing Compliance
Summary
The current.design calls for eight (S) townhome units; each similar and stacked one againstthe other.
All units are four (4) stories in layout. The end Unit H is the smallest of the eight (8) at 2,215sf. It i:S a one
car garage with a simple one (1) studio layoµt. If thi~ ur:iit is chosen to satisfy the restrict/on for an on-
site Affordable Housing residence then the economic impact has been sumrriariied.
First, theorfgilial ,;Baseline•r Project Proforma (Currently viewed as a 14% RQI} was shared .with the
Director Debbie Fountain and Associate Planner.Shannon Harker (See Exhibi~ 2). It was then adjusted to . . .
current Market Sales Returns anticipated from the recent sale from the "Railyard Lofts Project" at2689
State St, Carlsbad .{See Exhibit 1).
Applying the m13rke~ing values from Exhibit 1 allo"'(s for projected sale on this project of$ 743/sf, we.
have used $750/sffor thi$ purpose. Unit H is 2,215sfof saleable living area. lfthis unit were restricted
theh it would leave 16;285sf to be sold at mari<etvalue. the apparent retail market value of Unit His
therefore $1.,661,25(). When.the loss from getting market value out of Unit H the Development Profoma
drops to 4% forthe project;.
According to information from DirettorDebpie Fountain, a restrictec;l Affordable Studio and/or One
Bedroom can only, at today's poHcy approval; be sold for a maximum of$ 250,000. (See Exhibit3). The
differential between the two (Market vs Restricted) forn:is the Deficiency loss to the Applicant.
ln this case,
Deficiencv Loss
, Market Vqive....;. Restricted Affordable. Rate = $1;661,250 -$250,000 = $ 1,420,545. Adjusting fort he
$84;000 riot spentfor Affbtddble Housing Cr~dit = $1,327;250 (net)
Conclusion:
A significant financial impact to the project and Applicant. Without finan:dal subsidy from the Trust
Fund, the Project performijnce drops to an unacceptabte ROI of 4%. The Trust Fµnd TRANSFER would
need to be significant in order to support the Applicant's effort with the ori-site utilization of Uhit H as
the Affordable Housing obtigation.
Dec. 17, 2019 Item #19 Page 33 of 62
Scenario 1 -Restrict Unit H "as is" PROJECT SUMMARY 11.7.19
SeaGlass Corrected
Main Structure (Livable -Sell} 118600 sf 1 Developer Proforma 2446 State St Carlsbad
PROFORMA Three Story 8 Unit Condominium over @ grade Garage
Owner {Cost to Date)
Land Acquisition IS 2 S00 000
Architect Design Eng. Fees I S 400 000
CM Expense (entitlement} $ 90,000
$ 2,990,000
Permits I Entitlement Fees/ Special Inspection
ALLOWANCE I~ 36otooo I
Entitlement $ 360,000
Direct Construction Cost I ~340 sr I Schematic Budget $ 6,325,000
Construction s 6 325 000 $340
Main Building $ 9,675,000
Other Misc Develooer Costs
Affordable Housing Credit (Purchase) Purchase Cost $ 84,000
Legal (CC&R's, Condo mapping, etc) $ 165,000
Marketing/ Sales/ Commissions 5.00% $ 483,750
Wrap Insurance Coverage Owner $ 120,000
Financing (Syndication/Investor) 8.00% $ 774,000
Contingency {Construction/ Sales/ Marketing Fluctuations 9.00% $ 883,500
(Lot Siie) 18600 sf Development Budget $ 12,185,250 $655
Original PROJECTED SALE PROJECTED Gross Revenue from Sales
Price Eauitv ROI
Break Even (Unit A• Unit H) 18600 sf $655 st $12,185,250 no gain 0
Proiected Market Sales Price 18600 sf $750 st $13,950,000 $1,764,750 14%
18600 sf Projected Rroforma $13,9sct,ooo $1,764,750 14%
Revised PROJECTED SALES (Scenario 1) PROJECTED Gross Revenue from Sales
Unit H • Affordable Restricted (1 Bedrm) 1 Is $250,000 sf $250,000 {*)
Unit H • Market Value 2215 sf $750 sf -$1,661,250
Recover Affordable Housing Credit Savings $84,000
sf .Profoma Result with Scenario 1 -$1,.327,250 -$1~,~12~500 -111%
Trust Fund TRANSFER Required to Replace Deficiency Loss $1,327,250
Basi~ Re-establi~hed $13,.950,000 $1, 764,,750 14%
{*) Note: Affordable Housing Restricted Sales price {See Exhibit 3 • Affordable Cap per Housing Polley Team)
Dec. 17, 2019 Item #19 Page 34 of 62
Scenario 2 Revise<;ltl.12.:1;9
Re-Design and Reduce Unit H to 110Qsf
Summary
The current design calls for eight (8) town home units, each similar aOdstacked one against the other. All units_are
four (4) stories in layout. Tile end Unit His the smallest of the eight (8) at.2,2issf. It is a one (1) car garage with a
simple one (i) studio layo1.,1t. Unit H coulcfbe re-designed as a two (2) story ?tudio. The first level would be ttie
existing one (1) tar garage but the.2nd level, accessed by internal stairway, would form the new stnallerstudio. This
srhaUer Unit H configuration would be. the restricted Affordable Housing Unit. The re-design reduces.the sLze to
llOOsf. The 3rd and 4th floors would he incorporated into the size of the adjacent Unit G (2333Sf plus 2333sf =
3448:Sf).
Again, the.original ''Baseline" Project Proforma {See Exhibit2) was projected as 14% ROI with perceived future
sale:s at $750/sf. This Project Proforma was shared with the Director Debbie Fo.untain and Associate Planner
Shannon Harker. The Proforma was confirmed.by the recent sale atthe "Railyard lofts Project;' a_t 26_89 State St,
Carlsbad (See Exhibit 1), .
Applying the marketTng value_s from Exhibit 1 would aliow for projected sales on this proJect at$ 743/sfLwe have
usep $750/sf fbrthis purpose. The re-design reducesthe·size of Unit H from 2;21ssf to 1,1oosfofsaleab!e lfving
area. The apparent retail.market yafue istherefore established as: 1,100sf x$7SO/sf= $825,000 {Part A).
However, there appears to be a secondary financial impact. the enlarge~erit ofUnrt G from 2,3~3sfto 3A48sf
shouldn't be igrio~ed. It is believed that the increl;lsed size {50% la~ger th~n a.II otthe other units) will result in a.
rec,luced pool of potential buyers. the size will also lead to a reduction in the units "Sales per SF Value). The i;nger
Un it G will fall frqm $ 750/sf to possibly $675/sf. The apparent market value loss, therefore, from thissecondarily ·
impacted; ·
3,430sf x {$750/sf-$675/sf = $75/sf drop in\ralue) = $257,250 (Part B)
The combined financial impact= Part A+ Part.B = $825,000+ $257,250= $1,082,250
According to informatlon from Pirector Debbie Fountain, a restricted Affordable. Studio and/or One Bedroom is
unaffected by size. ASti.tdio and/ or One Bedroom, therefore; still only be sold for a maximum of$ 250,000 (See
Exhibit 3). The differential between the two (Market vs Restricted) the11Jorms the Deficf~ncy loss t~ the Appli~nt.
Deficiency Loss
Marke_tVafue -Restrfcte(j Affordable Rate=$ 1,082,250 -$250;000.= $ 832250. Adjusting for the $B4;ooo not
sp¢ntfor Affp"rr)able Housing cr~dit =. $748,250 (net)
Conclusion:
A significant financial impact to the project.and Applicant. Without financial subsidy from theTru!;t Fund, the
Project perfon:nani:edropsto an un~cceptable ROI of 8%. While this Scenario improves the Deficiency Loss.from
Sce_nario 1, it still leave,s the n~ed for a significant Trust Fl)ndTRANSFER to underwrite theproJect's,contemplated
14%ROJ,
Dec. 17, 2019 Item #19 Page 35 of 62
Scenario 2 -Re-Design
Main Structure (Livable -Sell} 11s600 sf 1
PROJECT SUMMARY
SeaGlass
Developer Proforma 2446 State St
11./.19
Corrected
Carlsbad
PROFORMA Three Story 8 Unit Condominium over@ grade Garage
Owner (Cost to .Date}
Land Acquisition
Architect Design Eng. Fees
CM Expense (entitlement)
Permits/ Entitlement Fees J Special Inspection
Direct Construction Cost
ALLOWANCE
2 500 000
400 000
$ 90,000
$
I s 360.000 I
Entitlement $
2,990,000
360,000
.__ .... S .... 34 ... 0 ___ s __ f_.! Schemotlc Bvdget $ 6,325,000
Construction 6.32s.ooo 1
Other Misc Develo er Costs
Affordable Housin Credit Purchase
Legal {CC&R's, Condo mapping, etc)
Marketing/ Sales/ Commissions
Wrap Insurance Coverage Owner
Financing (Syndication/Investor)
Contingency (Constructoin /Sales/ Marketing Fluctuations
Purchase Cost
5.00%
8.00%
9.00%
Main Building 9,675,000
$ 84,000
$ 165,000
$ 483,750
$ 120,000
$ 774,000
$ 883,500
(Lot Size )I 18600 sf I Development Budget I s 12,1ss.2so I
Original PROJECTED SALE PROJECTED Gross Revenue from Sales
Price Eauitv
Break Even (Unit A -Unit Hl 18600 sf $655 sf $12,185,250 no2ain
Projected Sales Market Price 18600 sf $750 sf $13,950,000 $1,764,750
18600 sf Basis Comparative $13,950,000 $1,764 750
Revised PROJECTED SALES (Scenario 1) PROJECTED Gross Revenue from Sales
Unit H • Downsize Affordable (Studio) 1100 sf (formerly 2215sf) $227 sf $250,000 (*)
Unit G • Enlarged from Unit H reduction 3430 sf (formerly 2330sf) $675 sf $2,315,250 (U)
Unit A thru Unit F • Balance 14070 sf $750 sf $10,552,500
Recover Affordable Housing Credit Savings $84,000
18600 sf Proforma Result with Scenario z $13,201,750 $1,016,500
Trust Fund TRANSFER Required to Replace Deficiency Loss $748,250
Basis Re-'establish.ed SlZ,453,500 $1,702,750
(*) Note; ·Affordob/e Hovsing Restricted Soles price (See Exhibit 3 • Affordoble Cop per Hovsing Po/icy Teom)
("*) Note: Loss of Market prlce/sffrom enlarging over 3000s/
$340
$655
ROI
0
14%
14%
8%
14%
Dec. 17, 2019 Item #19 Page 36 of 62
Scenario 3 Revised 11.12,19
Purchase an O:ff-site property for Affordable Housing RESTRICTION
Summary
The purpose, t,erein, was to identify a group of potential .off site properties as candidates for outright
purchase and then substituting the 30yr Affor~a.ble Housing Restriction on itas an op.tion to satisfy th·e
Affordable Hoµsing requirementfor the Sea Glass project.
Two (2) Option examples are provided: OPTION 1-Property within the ViJlage (Locai); and,
OPTION 2-ProfJerty outside of the limits ofthe Village (local}.
Note: This analysis is limited to the acquisition ofa 2 bedroom un(t. tiopefully, not greaterthan ten (J;0)
years·old .. The asset must, theoretically, s1,1staih an additional 3byr life to allow fora reasonable long
term asset until the restriction expires~ While a 40yr o.ld condominium mightbe acquired, at this time,
the asset would.deteriorate rapidly in value, possibly below the Affordable Housing safes value limits or
require excessive renovation just to l<eep it within a minimal restricted mc:irket value, 'file have utilized
these older µnits for lack ofMarket availability of other more mocjemeconomical choices.
IMPORTANT QUALIFICATION
As City Council Member Cori Schumacher pointed out during the May.25th council meeting, "Time is
money'1 to a dev.eloper. The biggest and financially devastating impact, if either a Scenario 3 .OPTION
are selected; is the unknown time required for a property to.be identified, escrowed. a1mroved by
Housing,.supported by the City Council and finalize with an executed Housing Agreement thatthen
formatiy,encumbers the property. I. would hope, ifthis Scenario is chosen, that the City Cou~cil would
cpnsiderthe impact of additionai projectconstruct;ion delays; I wq~ld as.I.< thatthE.; Conditions Of
Approval (COA) allow for the approval and release for construction of the Grading and Bui!dihg permits
in ari expedit~d. fashion. This would minimize the impact of a foreseen. 6 month delay in the overall
approval and implementation ofan offsite purchase agreement with th.e City. Restating in the COA that
the satisfaction of .the AftordqQJe Hoi.,sin(J requirement be concfitioned on Final Ocr::upancy rpther.tha1.1
prior to the issuance of the proje,ts initial Grading and Building permits.
Dec. 17, 2019 Item #19 Page 39 of 62
Scenario 3 Revis~d 11.7.19
List of Properties Considered
Village (LckalJ
Objective -Select a representable panel ofproperties, within the local Village Ar~a, that were market
. priced and sold. UtiHze·orie.ofthen-ras an example of a future actual acqµisition that ~ould be offere_d
for an Affordable 30yr restrictive sale in lieu of an on-site option. All are two (2) bedroom configurations
used for analysis.
1. Subject 1-2685 State Street condominium
Facts: ~;.D~isf.Jwo (2) bedroom. Sotd $1,400,000. $ 69'.2/sf.
Comparable condominium.to Sea Glass and within the same specific neighborhood.
2. Subject2-737 Grand Avenue condominium (SELECTED}
Fact: 1,!i47sf. Two (2} bedroom. Sold $1,:159,000. $ 749/sf
Comparable condominium but inferior Villr:1ge positioning·c!nd smaller thari Sea_ Glass.
OutsideVillage (local)
o'bjective-Sele.ct a representable panel of properties, outside of the local Village Area, Properties were
iimited to 10yr or' less. Almost all northwest quadrant prpperties, whil.e; cheaper, were built 45 years ago
and would not be acceptable for a 30yr life restriction. It is assumed that the Applic:ailt ca 11. either re-sell
at the restricted Affordable qip or hol.d long term. Signif1ca nt renovation to .a unitdo~s not satisfy .a
longterm hqld if thee>verall property is not tnodetnized for an·additional 30yr existence.
3.· Subject 3 '-2344-Hosp Way, Unit326 (SELECTED)
Fact: 1,06Ssf. Two (2} bedroom. For Sale $369,000. $345/sf
NorthwestQu.adrant of C~r1$l:iad (prqx. To Mall). Older than 40yrbut renovation of property is
an unknown to maintain the property value. This is.a more traditic;mal condominium
configuration with 2 car garage.
4. Subjec;t 4-2312. Hosp Vl/ay, LJnit 154 condom1riium
Fact: $56sf .. Two (2} bedroom. Sold $380,000. $443/sf
located. on the lagoon border with single garage and assigned carport.
5'. Subject 5~331 Olive Avenue, Uni.t 101 condominitJm
F:act; 1,606sf. Two (2) bedroom. Sold $985,000. $613/sf
located on the l~goon border with garage
Dec. 17, 2019 Item #19 Page 40 of 62
Scenario 3 Revised 11.12.19
OPTION 1 Property within Village {Local)
OPTIONl
737 Grand Avenue, Carlsbaq (Subject2); 1547sf; SOlD S 1~159,000 $749isf
Deficiency Loss:
Market Purchase-RestrictedAffordabfe.Rate :cc: $1,159,000 -$ 350,000 = $ sog;ooo (loss). Adjusting for
the $84,000 not spent on an Affordable Housing (Credit) and the$ 45,000 mis~. expense to$t{i.e.
commission arid legal; etc)= -$.809,000 + $ 84,000-$ 6!:i,000:;: -$ 790,00d (net lo~s).
Note: This does not. ta!<e·into. consideration· sales.commissions and other costs associated with either.the
purchase or r~sale of a property;. ft also doesn't take .into account the potential ·project time if the· COA.are not
modified as requested. to comply by Occupancy vs Issuance of any constructfon permits;
Conclusion:
A significant finaneia.Hmpactto the project and Applicant. Without financial ~ub~idy from the Trust
Fund; .the Project performance drops to an 1.mc1cceptable 8%, ~OJ.. . . .
Dec. 17, 2019 Item #19 Page 46 of 62
Scenario 3 -Purchase Offsite Designated Property PROJECT SUMMARY 11.7 19
SeaGlass corrected
Main Structure (Livable -Sell) I 18600 sf 1 Developer Proforma 2446 State St Carlsbad
PROFORMA Three Story 8 Unit Condominium over@ grade Garage
Owner (Cost to Date}
Land Acquisition IS 2 500000
Architect Design Eng. Fees IS 400 000
CM Expense (entitlement) $ 90,000
$ 2,990,000
Permits / Entitlement Fees/ Special Inspection
AllOWANCE Is 3601000 I
Entitlement $ 360,000 ·
Direct Construction Cost I ~340 sf I Schematic Budget $ 6,325,000
Construction s 6 325 000 $340
Main Building $ 9,675,000
Other Misc Developer Costs
Affordable Housinl! Credit (Purchase) /CREDIT) $ 84,000
Legal (CC&R's, Condo mapping, etc) $ 165,000
Marketing/ Sales/ Commissions 5.00% $ 483,750
Wrap Insurance Coverage Owner $ 120,000
Financing (Syndication/Investor) 8.00% $ 774,000
Contingency (Constructoln /Sales/ Marketing Fluctuations 9.00% $ 883,500
(Lot Size) 18600 sf Development Budget $ 12,185,250 $655
Original PROJECTED SALE PROJECTED Gross Revenue from Sales
Price Eauitv ROI
e E Inf 1-\-. ) 8600 s 5 sf $12,185,2 0 1i, 0
Proiected Market Pricim? 18600 sf $750 sf $13,950,000 $1,764,750 14%
1 :t;u ·~• I ·r 11 -or .~ s1 ; sa nuo Sl. •--0
I> h • I lo ii l'R JE -111 C":, :v1In..11 1m 'ii
737 Grand Avenue {Purchase) 1547 sf 2 Bedroom config $749 psf -$1,159,000
Affordable Housing Restrictive Re-sale (Recover) 1 LS 2 Bedroom config $350,000 fixed $350,000 (•)
o ~ I 1gal, HOA, Prop Mgmt nd Future Sales (6%) -$65,000
Recover Affordable Housing Credit Savings $84,000
I 110 ., ill w C ti a {Viii !) c,1 ~, ,1 ,0 S! :iO 8
Trust Fund TRANSFER Rectuired to Replace Deficiency Loss $790,Q00
Basis Re:-establlsh.ed $13,950,00() $1,764,750 14% ,..... 11■■■ • • ■I .. ,■■ 11:1...&....._ I■ · ,a1,■•.rur■_., ti ,I: L•r -,. ... ,■r• • 4 1•···•'•• , .. --,· Im·-·"" , ... .. '""'" ~ ••:<"._
( I t : Affi r ble Hou in tri t d S /es rice (5 e E hib·t -A orda /eC er ous Ii Team)
Dec. 17, 2019 Item #19 Page 48 of 62
Scenario 3 .Revised 11'7_19
OPTION 2 Property outside of Village (Local)
(Note: Northwest Quadrant of t:arlsbad -prox. To Mall}
0PTION2
2344 Hosp Way, #326, Carlsbad; 1065sf;
Deficiency Loss:
On Market for$ 359,000 $346/sf
Market Purchase -ResttictedAfford.able Rate = $ 369;000 -$ 350,000 = $ i9,000 (loss); The cost to
purchase an$ 84,000 Affordat:ile Housing Credit is crediteclbut is offset by the additional $65,000 in
mis!'.:. cost (i.e. co.mmission and l~gal, etc)= -$i9,000 + $$4,b0b -$65,000 = $>o (neµtralj;
Conclusion: NO Trust Fund money is required to supplement this Scenario. But the biggest impcictfor
the Appiicant ;~ the time to process thru Housing with an Agreement a~d then City Coundlfor overall
approval. IF it is made a condition of Occuptuicy rather thcin permit issuance in the COA this woufd
mitigate the ma/ oritr, of the impact.
Note: This d_oes no.t ta.Ice Jnto consideration ·sales .commission~ and other costs. associated with either the
purchase or resale of :the property, There is a significant risk that the actual. property illustrated will not be
.available nor able .to be . .:icquired with the required lengthy escrow. There may be significarit addition a I time.
:required to locate a comparable substitute. ·-rhese properties are 45 years old and are clearly outdated. The
funds not spent on the acti.lat purchase of a credit will be required to renovate the outdated features. The 30yr
RESTRICTION also will have an impact on the potential resale value. ti early this unit at $369,QOO unrestricted
an_d is more vaiuable than on~ that has a cap fc:ir resale of $350,000 for 30 year~, · ·
Conclusion:
While this establishes-s scenario that could r~sult .in "no use of trust fund" monies_ It clearly /s of higher
risk the Applicant. The h.ighest risk and pot~ntial aqpitional cost impact is the delay time r!:!q uired for
.acquisition, ~pproyal and Hoµsing Agreement execution. It is imperative, ifthis is scenario is·seiected
by the City Council, that serious'c<msideration be given to fhe relief offLilfilling the transaction and
approval obligations :within the COA to allow the pro1ect to move forward. ·
Dec. 17, 2019 Item #19 Page 49 of 62
Sce nario 3 -Purchase Offsite Designated Property PROJECT SUMMARY 11.7.19
SeaGlass
Main Structure (Livable~ Sell) !18600 sf 1 Developer Proforma 2446 State St Carlsbad
PROFORMA Three Story 8 Unit Condominium over@ grade Garage
Owner (Cost to Date)
Land Acquisition I$ 2 500.000
Architect Design Eng. Fees IS 400 000
CM Expense (entitlement) $ 90,000
$ Permits I Entitlement Fees/ Special Inspection
2,990,000
AlLOWANC( Is 3601000 I
Entitlement $ 360,000
Direct Construction Cost I ~340 sf I Schematic Budget $ 6,325,000
Construction s 6 325 000 I $340
Main Building $ 9,675,000
Other Misc Developer Costs
Affordable Housine Credit (Purchase) Purchase Cost $ 84,000
Legal (CC&R's, Condo mapping, etc} $ 165,000
Marketing/ Sales / Commissions 5.00% $ 483,750
Wrap Insurance Coverage Owner $ 120,000
Financing (Syndication/Investor) 8.00% $ 774,000
Contingency (Constructoin /Sales/ Marketing Fluctuations 9.00% $ 883 500
(Lot Size) 18600 sf Development Budget $ 12,185,250 $655
Original PROJECTED SALE PROJECTED Gross Revenue from Sales
Price Eouitv ROI
Break Even (Unit A• Unit HI 18600 sf $655 sf $12,185,250 no1t;iln 0
Proiected Market Sales Price 18600 sf $750 sf $13,950,000 $1,764,750 14%
_.,;o.,O ,f J ··o". ,1~; ,O ... J,; 4, "'"· %
Cln1i.in~, 1U :,UJI E ' di 12E L 'Ill I 'R' I '( ,:;ro !OJ tr ,n s s
2344 Hosp Way, Unit 326 (Purchase) 1065 sf 2 Bedroom config $346 psf -$369,000
Affordable Housing Restrictive Re-sale (Recover) 1 LS 2 Bedroom config $350,000 fixed $350,000 (*)
Cost: Legal, HOA, Prop Mgmt and future Sales (6%) -$65,000
Recover Affordable Housing Credit Savings $84,000
1 LS ·profoma Result With Scenario 3 {Outside) $13,950,000 -o4, ..iu 'II
Trust Fund TRANSFER Reauired to Replace Deficiencv Loss $0
Basis Re-.established $0 -s12.1as.2so 14%
~r,,,._..,,r, ;11111••--. • 11:..~1• , ... _ .. , ··~-·~· .nml':lfilr~ j."i"•••'-~ 11111:...,, ••••• .,.., . ... "' ,n., •• , ,.,.--,,• . •-:.,,, ,.,,, ... 11•~-• l•I
( at: ,ffordp I ousing Restricted Soles price (See Exhi it 3 -A a a le Cop per Housing Policy Team)
Dec. 17, 2019 Item #19 Page 51 of 62
Scena,tio 4
Purchase· of :an A.ffo.rdable Housing ·cr~dit ·within Tavar.ua Apartments
The proje~ .design .has been analyzedin as marty configurations.as PE<l«;tkal .over the lc1st s~v,eral
months. Urifortunately, a significa·ht brealdhru to find a T/re~som;1ble" soiutt6n-both on and .dff site wa,s
nofbeHeve~fto beJound. As cap. be .. _$een, sfmpiyrn_co(p_oratlhgc!il affor~~ble 1.1nit_into the-c1men:t
processed.desigh~did notresoJt in' any "Scenar101;:_tliaBeemed practical.. ·
We beiie.ve that a reasonable ·and 'since r.e. -effort has beerrput ·forth to find ·an pn-slte· or even a 'n'off-sfte
:-solution tha.t could prove firianciafly resp~ns_ip!e and, supgor:tab.le. Agai11, w_e, .a_sl~~h~t
.Pursuantto C.MC-See;tion .iU;15,07Q,.
'WJ,en .new tonstructian is def:ermihed:to_.be infeasible Drprei;ent a hard~hipj aitem.atives to the
r:onstruction of a .unit onsii:e "ii1~lt,1de·in:ontnb~tian tQ a _sper;;,;11 needs:hquslhg project:,,, program''-; . . . .
Onfepr_µ<)ry _13~ 2.018, the cjty'.'s H?lisJn~ P.ollcy Tea!1') retomrrended approval o{the:'ap-pfic~nf s_r:eq_ues_t
{S.ae Exhibit 4tto1pur:d1ase ori_e (1) af:ford~ble-liou~nng-credit. fro.rh'the'Tavar.ha seniCJr affor~able
,apartments lotated in th_e NorthW~sfQ.u~dt~rit of tbe city. . --. .. .
y,Fe ~sk tha_t thiS:"o!Jginal reqliiren:ieht be aP, proved arid re[n.staJed by·th_e Cit_v (::ou·ncil "?nd made --~
c:on~\tfon for-the proj_ect!$ appn::ivat · ·
Eonclusiom
Purthase,ohe {1) credit for$,84,000 to satisfy·the Afforda;ol~ Housing Criteria,
Dec. 17, 2019 Item #19 Page 52 of 62
Frotj,:.Oebbje.Fountai.hJmailto:Debb!e.Fo.uiitairt@carfsb~dca,go_v.l
Sant: Tµe:scJav, F.~bru~ry 13, zo;i.i 3i~o PM
~~Jed::, t\E:, ~artsbad-!ett~r
TheCify cif.C:irlsbad's·l-fousln,g Policy. Tea,m me:ttliis·aff;emoon ·and agree_d tp supp_ort a.recomniendation
to the.·Planning_Commlsslon and Cfty Council to ap)lrove ·the ptir;cli.asf:? of one (llafford~ble housing·
creplt toryciyr.pr:-oposed ·projec€•flt 2646'St.ateStre~ifo-satisfy the t11cJuslohary Housing requfretnenf$
for the preiposed project. Thl.s sfaffii!cofotnendation 1~ bijsedon you(-prop_os~lto bt.tilP:·8.IUXLII"\" condos
Pll tne ptoperty.at2646·State·St~etand Ul'ilferthe co'nditio'n1.hat nd.stanqtirf;f modifitations-are
r.equired tq apprc;i.y~·the,pr£:!ie.~t. If there ·are any changes to yo-~r' proposal, this·recommerrdatlon may
· neep t~be reconsidered.·lf yo'i:1 p1.trsue fh~.proj~cta:;prese.ritei;i,this ~aff recomfu~ndation,wil.1 .be
pr~s.erj't~d JC! Pl~nning tornniission and· C:·lty Coum,il for their con~IderatJori for approval. .
Plea·se note that tl\e-dir:rerit·cr~dit'pritle forthe Tavat'uaAffi;>pdabfe· R~n~I Devel_Qpme,nf is $·~4,00();
~~ich is .the qn!y, proJec;r:ayatlabh~ for you to purcha~e ~redits lo the r,forthwert·c;fuadranf. The credtt is
putc:hased at u,-~ :t_irne ~fhui!c!i11g pehni~, an_iiyou·wili pay (if approve~) th_dfredit price noted in tile
development fee schedul!? at th~·tlme: you pt.ill bulldlng permits and pay.th~ .other oevelopme11t fees ..
'This annu~.1 cfediteriq~·lncrea:se~.b.y C:Pi ea,c;f:l Yf!ar, sq~eperu;ling Qr) the CPI this credlt,purcf\ase pf.ice
mav ·irtct.ease bytl)e tim!!:_vou purchase it.
Thanks for yQ·ur :patience-as we p'rticessed Y,4;1ur reques~. l'fyov have .~ny questiqns~ please l.~t me ·know,
bebble Fountain
interim. Community & Eco11omic. Dev~lopmerit Oirector
Ho.u_s.ing.& Nelghbqrhood ~ervi~es: ~lr.~c;for
City bf ta rlsba~
1635. Faraday Avenue
Garlsbad,-Ca. 920~6
(?obj.434-2782
('inO) 11-34,-2935
Debbie. fQurita1ri@carlsbadca'.'gov
Dec. 17, 2019 Item #19 Page 53 of 62
Exhibit's
for
Consideration
(1 thru 4)
Dec. 17, 2019 Item #19 Page 54 of 62
Exhibit 1
Marketing Comparable Prop.erty
1. Railyard Lofts
2689 State St,, Carlsbad
MLS Usting: #l80019677
Dec. 17, 2019 Item #19 Page 55 of 62
Exhibit 2
Original Project Proforma
1. Proforma: Adjusted dated 8.29.19 for Market Rates per Exhibit1
Dec. 17, 2019 Item #19 Page 57 of 62
Exhibit3
AFFORDABLE HOUSING
· 1. Studio/ O'ne (1} BedroOm $ 250,000 30 yr Restricted Cap
2. Two (2) Bed.room $ 350,000 30yr Restricted Cap
Note: Quotes from August 25, 2019 meeting with Housing Director Debbie Fountain
Dec. 17, 2019 Item #19 Page 59 of 62
L;o.w lncq_me (&:()%) Sal~s Price· & Mortgage cal~til~tpr "(2017-l
·stµdio. one·Bdr 11iz~j~~~ Thr~e Bqr FourBdr
l,.pah.f\mouht '$ (J59,465) $· . {1.90,380) $ $. (1284;~•18) -~--(~34,6'.l.2)
Annutal lnte_rest:Rat~ :5 .. 00% :~.00°% 5 .. 00% $.qo% .. &,00%
#·of Pqymeiits (Months). 360 360 .360 360 360
lVlo_nthly· M~rt. P;,1ymerrt I ·$.856 .. 04 t ''t;o_r22.oo I $1,.183.02 I $1_.529~~.0 I ,$,i,796,59,
Ann1;1af i;i¢bt service $ .(10,273) $' {12,264} $ {14,19~) $ (1~;35~) $ (21,559)
Gross Anriua!Jhcom~ (&O%AMI) $' _f?.0,9f50 $ Ei~,200 $ ·e9;5bp' '$ .. :ie-,aoo "$' 90;250
"35o/o 3.5% 35% 3.5% 36% ...
Mx~ Aff~rd~bl_e Housing' P.aynwnf $: 1,486,04 $': 1,697.50 ~ 1,91.0.42·. $ 2,292.50 .$ 2.~~2=,?9.;
Maxrmu·m Loan Pmt.(P&i) $-856,04 L,022,Qo ~-1·.1aa:<)2 1·s29,-so 1:,7961i9 -.. , . t• ·.
Qualified Loan Amount $, (1'q9,465) $_ (j9Q,38:0} (220;'974) c2B4;e1e1 (3.34,Ef72)
IV!cµcimum Afforclapf' $r:t,ies Prree lj 1_71;965 $ 2QS,38() l 24,01~74 $ -3O9i9'f.~ $ 3~4j672
(lq.~.n. am-ount + So/o" 0f MV)
~st:. Mijr~¢t Vijfue Sale$:Price . $ ~50,000 $· 300,090 :P.-400 000 -$ 5.00;900 $ 600,0bO
$· 12,$00 t5,000 '· t •. $ ·2~ •. 00.0 $. ao;ooo BwerDownpayment (50"/o of-MV) l .$ 20!000
Est. '.;'\ffordable .$ales Fir-i.~ $ 1,2s>o9-$ 205 500 -~ 240;400. $ 3fO 000 $ _354·700 ., .. . ·-~ I. •·
Total HOQsing Costs:
MQnthlY lo~n payment (f ~ I) · $ 856 $· 1,022 $ 1,1S3 $ 1,5.3"0 :$ 1,797 ·' .240-~ ·.-310 $ taxes/mo.{1 .2% of. Aff Priee) $ 17.2 $ 2oe $: 365
PMI $ 40 ~ 40 $ 46 .. $ ''-$ .
HOA i 3,50 $ 35.0 $ 350 $ 350 $ 550
Utiji~y,Allow~noe $· 68 $ 80 ,$ 91 $ fd3-_$ 12~
Toia! Hou$.ihg· c~sts $. 1,486 $ 1,.698 "$ M~10 ··$ 2,293 :$ 2;f;i3,2
Assurtied-HH Size:. ·· 1 person ·tpersons 3 ·j:ietspos .. 5• pets,ons' 7. persons
Dec. 17, 2019 Item #19 Page 60 of 62
Exhibit 4
Original Email from Housing (Director Fountain)
1. c;ity of Carlsbad Housing Policy Team email, dated 2;i3.18, iri support of th~ findings for
hardship and the re.commendation for CREDIT purchase {}fa Tavarua Affordable
Apartment un1tfor $ 84,000.
-------~-·-······--····-·· ..
Dec. 17, 2019 Item #19 Page 61 of 62
Frorm oebbje. Foilritarri [mailtti:Debb1e.Fouritai{1@tarlsb~dca,go_il
~ent: Tµes,;lay., F,eb~µa_r:y 13~ 2o;ri 3i!-o Pfy.1 ·
$ubJ~ 8E:-Ca.rlsbad.tett¢r
· T~e Cffy cif,Carlsblid!s-Ho·usin,g PCllttv Te~m mett6·1s·atte~,:roorrai'id agree.d to supp,ort a recqmroendatioo
to. the-Planning Cotnroi~slon arid'City Council tQ ap~ro~e·tM purtlias~ pf orie (l')affordiibl~;i',ousfng
cre.dlt for your. -P~POS~(f project-.ilt 2646'5~te Stref;!t•ro.satisfy the Jnciush:mary Housing retolrem~nts
for the pfopo~ed project, Thi~ sfaff~commendation I~ bgi_sed on your-proposal to b~i1d:ftux1.111 condb$
r;in the property .at 2.646 State 'Street and u1rt:(etthe. co'ndltld!'I t,hat no .$tanqar~ inodiijc;atioii~ -a~
rnquired tq appr9Y~ the:proj~~t. If there·ate. citiychariges t() yotir' propo$al, this·reqrmmendation may
n~~d tQ. be.refonsid~re.d. lfyi::i~ pursue the.projec;hs present~~, this 'staff recomm~ndafiort.will be
pr~s.ertl!!d ~9 Pl.anning Commissfo11 and: c·1w CounGil to~ their co~slder.atlon fi>r Itpproval.
Pl~ase nofo that ttte ~utr;!nt Crt?dit'.pr.ir.e forthe l)\lafua Aff'.otdabfe R~nfcl[. bevel,o,pmert Is $,4)0001.
which is: . .the :9rilv. proje~rayaflabl!! for you t:o purtha~e ctadi.fS. ln the. Nortl'iwest'l'.:(uadrant:. Th_e credit is
putcha~ed atfl1ifi:_111ie ~f l>ui!tjing permit, a1\d youwili pay (if a1>prove~J thi• .ciedrt price. noted in'the
deyelopment:f ee schedlill? at ttie·tlme y()u pull hu!ldlhg permits and pay, fhe other development fee~..
·t~i~ annual credft P.rice_·ine)'ec!se~.bycplei:l.dJ y~a;r:, ~-!;l~pen~ingqn the CPJ th.ls ~t¢'diq1ur~n:ase pi:ice
rriay·iricteas~"by-t~e tim~:you -purchase it. . . .
Thanks for yo)ir patience-as we processed v.our request. If Vo~ ti ave .~nyquestiQris; pleilse)et melnow.
Debbie Fount~in
!nt~r.im c:.ommuhity & Econoniic oe~elopment Director
HQ.u~ing ~ Nelghbqr,hood ~ervic:es Ql~ctot
City 'of C~rlsbad
1635 Faraday Averiue
Gar!sbacl, Ca, 920~6
(760\.434-278$:
l 1.60)4.~4-293s.
Debbie .f61,mtain !§1_'!:-a·r1sbadc~r:golf
' Dec. 17, 2019 Item #19 Page 62 of 62
AFFIDAVIT OF MAILING
NOTICE OF PUBLIC HEARING
TO: CITY CLERK
DATE OF PUBLIC HEARING: __ \_2-........ \_\-:,;--'-) _l, _________ _
SUBJECT: J:V\..£> ~~
LOCATION: \MD CvWlt\-;?.,roQ vi\\.~~.
DATE NOTICES MAILED TO PROPERTY OWNERS: _\'2,---+/ ...... 5'-+)_\~------
NUMBER MAILED: _\~J~r:5"-___ _
I declare under penalty of perjury under the laws of the State of California that I am
employed by the City of Carlsbad and the foregoing is true and correct.
CITY CLERK'S OFFICE
(Date)
SENT TO FOR PUBLICATION VIA E-MAIL TO: 0 Union Tribune
~ Coast News
PUBLICATION DATE: Union Tribune --------------
Coast News ---------------
I declare under penalty of perjury under the laws of the State of California that I am
employed by the City of Carlsbad in the City Clerk's Office and the foregoing is true and
correct.
Date: \ L)\---\ \ l \ --~~--------\_,~
(Signature)
Attachments: 1) Mailing Labels
2) Notice w/ attachments
PEACOCK AND PEACOCK
403 PARKWOOD LN
ENCINITAS CA 92024
ONE RAILYARD LOFTS LLC
PO BOX 7050
RANCHO SANTA FE CA 92067
WEINBERGER LAWRANCE AND
LAURIE
211 MAPLE AVE
SEA CLIFF NY 11579
CANTABRANA 2005 TRUST
2639 STATE ST
CARLSBAD CA 92008
ERE PROPERTIES LLC
1054 LA SOMBRA DR
SAN MARCOS CA 92078
2659 STATE PARTNERS LLC
375 VIA LINDA DEL SUR
ENCINITAS CA 92024
ARTUKOVIC FAMILY TRUST
1815 IVY RD
OCEANSIDE CA 92054
ILG RAYMOND P AND OLENA
591 CAMINO DE LA REINA
STE 300
SAN DIEGO CA 92108
ELLER TOM AND REBECCA L
2509 STATE ST
CARLSBAD CA 92008
MARSHALL WILLIAM J AND DAWN
2503 STATE ST
CARLSBAD CA 92008
HARRISON KEITH AND SARA
PO BOX 231594
ENCINITAS CA 92023
WILSON CORY A AND SUSAN J
TRUST
3411 W RIVER DR
MEQUON WI 53097
VENSTROM FAMILY TRUST
2933 LANCASTER RD
CARLSBAD CA 92010
SPEERT ELLEN FAMILY TRUST
2633 STATE ST
CARLSBAD CA 92008
CARLSBAD STATE STREET LLC
2739 STATE ST
CARLSBAD CA 92008
SCHROEDER THOMAS S LIVING
TRUST
3518 CALLE GAVANZO
CARLSBAD CA 92009
ARMY AND NAVY ACADEMY
CARLSBAD CAL
PO BOX 3000
CARLSBAD CA 92018
MARSON MARKE
2513 STATE ST
CARLSBAD CA 92008
POVAR PAULETTE H LIVING TRUST
2507 STATE ST
CARLSBAD CA 92008
HEFFNER ERIC AND DIANNA
2521 STATE ST
CARLSBAD CA 92008
SAN DIEGO G.",S A.l>lD ELECTRIC CO
PUBLIC AGENCY
C~RLSBAD CA 92008
BRASHER BLAKE E AND DEBBIE G
883 W GOODRICH PL
PALATINE IL 60067
NORTH SAN DIEGO COUNTY
TRANSIT D
2647 STATE ST
CARLSBAD CA 92008
J KS G EDWARDS FAMILY TRUST
3980 ADAMS ST
CARLSBAD CA 92008
TH STATE STREET LLC
PO BOX 7050
RANCHO SANTA FE CA 92067
NORTH S.7\.N DIEGO COUNTY
TR.",NSIT D
PUBLIC .",GENCY
CARLSB~D C~ 92008
BRADLEY NEIL AND KATRINA F
TRUST
2517 STATE ST
CARLSBAD CA 92008
LYLE FAMILY TRUST
2511 STATE ST
CARLSBAD CA 92008
SALTON FAMILY TRUST
2505 STATE ST
CARLSBAD CA 92008
SWEENEY FAMILY TRUST
2525 STATE ST
CARLSBAD CA 92008
JAMTAAS KRISTOFER AND JOAN B
2529 STATE ST
CARLSBAD CA 92008
SASSCER RYAN J
2541 STATE ST
CARLSBAD CA 92008
PADILLA FAMILY TRUST
6708 CAMPHOR PL
CARLSBAD CA 92011
INGLE ERICA LAND DANIEL R
REVOC T
2547 STATE ST
CARLSBAD CA 92008
MACHADO ELIZABETH
2535 STATE ST
CARLSBAD CA 92008
BLACK LINDA
2523 STATE ST
CARLSBAD CA 92008
FIK CHRISTOPHER LAND TORIE N
2593 STATE ST
CARLSBAD CA 92008
WRIGHT SARA J
2599 STATE ST
CARLSBAD CA 92008
MCDONOGH KACIE E 2012 TRUST
ETAL
2565 STATE ST
CARLSBAD CA 92008
LUSSENDEN JEFFREY AND KELLY
2577 STATE ST
CARLSBAD CA 92008
TOUGH STEVEN D AND SHARON
2533 STATE ST
CARLSBAD CA 92008
DELHOMME JOSHUA
2545 STATE ST
CARLSBAD CA 92008
LOT 31 TRUST
2555 STATE ST
CARLSBAD CA 92008
NAVEIRA FAMILY REVOC LIVING
TRUS
2543 STATE ST
CARLSBAD CA 92008
BELTRAN ANTONIO
2531 STATE ST
, CARLSBAD CA 92008
NEWMAN JANET L
2589 STATE ST
CARLSBAD CA 92008
FERNANDEZ HENRY J JR
2595 STATE ST
, CARLSBAD CA 92008
CATLAGIRONE CHRISTOPHER D AND
, HIKA
PO BOX 234100
ENCINITAS CA 92023
HAWKES WILLIAM D JR
2569 STATE ST
CARLSBAD CA 92008
CARPENTER THERESA
2581 STATE ST
CARLSBAD CA 92008
CLAWSON MITCHELL AND
JACQUELYNE
2537 STATE ST
CARLSBAD CA 92008
DAVIS MARC RAND HEATHER M
2549 STATE ST
CARLSBAD CA 92008
STEWART FAMILY TRUST
2551 STATE ST
CARLSBAD CA 92008
SKINNER GEORGE AND CAROL P
2539 STATE ST
CARLSBAD CA 92008
LUKAS RIMAS T
. 2527 STATE ST
CARLSBAD CA 92008
JANSEN JAMES H
2591 STATE ST
CARLSBAD CA 92008
BASTA NICHOLAS AND ROSE
. 2597 STATE ST
CARLSBAD CA 92008
HOLT FAMILY TRUST
2561 STATE ST
, CARLSBAD CA 92008
GREY BRIAN AND ANDREE
2573 STATE ST
, CARLSBAD CA 92008
MANEEN MATTHEW J
2585 STATE ST
CARLSBAD CA 92008
BILLANTE FAMILY LIVING TRUST
2583 STATE ST
CARLSBAD CA 92008
YATES MATT C
2571 STATE ST
CARLSBAD CA 92008
HESFORD DARRELL AND DEANNA J
2559 STATE ST
CARLSBAD CA 92008
SMITH EDMUND AND EDITH TRUST
3271 WESTWOOD DR
CARLSBAD CA 92008
OWNER NAME UNAVAILABLE
2747 ROOSEVELT ST
CARLSBAD CA 92008
'TREJO FAMILY TRUST
3383 ADAMS ST
CARLSBAD CA 92008
HUSTON FAMILY TRUST
PO BOX 547
CARLSBAD CA 92018
CSTATE LLC
2244 S SANTA FE AVE
STE B2
VISTA CA 92084
HESS AND HARTMAN TRUST
28348 ROADSIDE DR
STE 204
AGOURA HILLS CA 91301
SYCKS FAMILY TRUST
539 LAGUNA DR
CARLSBAD CA 92008
SELLERS JASON T AND MELISSA K
2579 STATE ST
CARLSBAD CA 92008
KC URBAN RENEWAL GROUP INC
PO BOX 339
CARLSBAD CA 92018
!TAYLOR MORRISON OF CALIFORNIA
LL
100 SPECTRUM CENTER DR
STE 1450
I IRVINE CA 92618
BLACKBURN 2000 TRUST
, 202 RAINBOW LN
iOCEANSIDE CA 92054
BEECHTREE OFFICE BUILDING
PARTNE
j 2653 ROOSEVELT ST
STE D
'CARLSBAD CA 92008
I 2646 SEA GLASS LLC
• 2646 STATE ST
'CARLSBAD CA 92008
2621 ROOSEVELT LLC
PO BOX 1707
, , FALLBROOK CA 92088
i
CABO ANNA M TRUST
: PO BOX 583
PAUMA VALLEY CA 92061
! PATERSON KENT R
5315 AVENIDA ENCINAS
STE 130
CARLSBAD CA 92008
WOODD TERRI G TRUST
I 541 LAGUNA DR
• CARLSBAD CA 92008
NORDBURG JUDITH A LIVING
TRUST
6901 E 1ST ST
STE 1006
SCOTTSDALE AZ 85251
GOETZ MARY
2563 STATE ST
CARLSBAD CA 92008
SEAGROVE HOMEOWNERS
ASSOCIATION
25531 COMMER CENTRE DR
' STE 100
LAKE FOREST CA 92630
STRAESSER RALPH A AND CJ
FIELDS R
1518 AVOCADO RD
•OCEANSIDE CA 92054
EISLER FAMILY TRUST
6631 LITTLER DR
SAN DIEGO CA 92119
CHAMBERLAIN MICHAEL A AND
KIMBERLY
2653 ROOSEVELT ST
CARLSBAD CA 92008
JONES RICHARD TRUST
2608 STATE ST
CARLSBAD CA 92008
REMAINDER KHOSROW SC
UNITRUST T
1409 S SALTAIR AVE
STE 202
LOS ANGELES CA 90025
2569 ROOSEVELT LLC
PO BOX 448
CORONA DEL MAR CA 92625
BLANTON COOPER AND MARYE
49155 RANCHO POINTE
LA QUINTA CA 92253
HEATER JAMES AND DEBORAH
2241 2ND AVE NW
CALGARY AB 2TN OHl
CANADA
GLAZE CHARLOTTE M
555 LAGUNA DR
CARLSBAD CA 92008
565 LAGUNA LLC
6904 DOVER CT
HIGHLAND CA 92346
TEMPLETON TRACY S
577 LAGUNA DR
CARLSBAD CA 92008
EARDLEY MARGARET
583 LAGUNA DR
CARLSBAD CA 92008
SOUMBASAKIS JOHN
23 TENNESSEE
IRVINE CA 92606
B WR 16 LLC
2922 DAIMLER ST
SANTA ANA CA 92705
JOHNSON FAMILY TRUST
4513 COVE DR
APT 12
CARLSBAD CA 92008
ROOSEVELT CARLSBAD LP
1707 E HIGHLAND AVE
STE 100
PHOENIX AZ 85016
JACKSON FAMILY LIVING TRUST
5511 STROHM AVE
NORTH HOLLYWOOD CA 91601
FARES LIVING TRUST
551 LAGUNA DR
CARLSBAD CA 92008
,EDNOFF DAVID WAND JANICE P
REVOC
557 LAGUNA DR
CARLSBAD CA 92008
I DUSOLD FAMILY REVOC LIVING
I TRUST
38686 FLORENCE ST
BEAUMONT CA 92223
, HERRING RICHARD W
i 579 LAGUNA DR
CARLSBAD CA 92008
I OLLIVIER MIKE AND LORIE TRUST
! 2479 W FIR AVE
FRESNO CA 93711
GHARABIKLOU FARHAD AND RENEE
j M REV
, 595 LAGUNA DR
CARLSBAD CA 92008
1 I CARLSBAD LAND PARTNERS LLC
i 264 PACIFIC AVE
I SOLANA BEACH CA 92075
WULLENJOHN CHARLES AND I
I LORRAINE
1259 DISCOVERY ST
SAN MARCOS CA 92078
MADISON SQUARE CONDOMINIUMS
LLC
PO BOX 669
POWAY CA 92074
JARMOLOWICZ JEANMARIE AND
EDWARDS
46 PERRY HENDERSON DR
FRAMINGHAM MA 01701
WESTFALL JEREMY SAND TAMARA
D
PO BOX 18167
PHOENIX AZ 85005
YEE JEFFREY AND DONNA
1071 LA REINA DR
SAN MARCOS CA 92078
HORNER CARLA A
571 LAGUNA DR
CARLSBAD CA 92008
BUSSEY KATHRYN I REVOC LIVING
TR
581 LAGUNA DR
CARLSBAD CA 92008
PORCHIA FAMILY REVOC TRUST
591 LAGUNA DR
1 CARLSBAD CA 92008
NUDEL DENIS
597 LAGUNA DR
; CARLSBAD CA 92008
MAR VISTA TRUST
, PO BOX 1481
: CARLSBAD CA 92018
TREJO FAMILY TRUST
, 2687 MADISON ST
CARLSBAD CA 92008
1 BARLOW KAREN J TRUST
5315 AVENIDA ENCINAS
STE 130
CARLSBAD CA 92008
KATZ STANS
PO BOX 235481
ENCINITAS CA 92023
SEVILLE HOLDINGS LLC
1630 VALDES DR
LA JOLLA CA 92037
SOTO SOLEDAD M TRUST
2615 MADISON ST
CARLSBAD CA 92008
LLEWELLYN RYAN
2562 ROOSEVELT ST
CARLSBAD CA 92008
ROBBINS KAREN C
2568 ROOSEVELT ST
CARLSBAD CA 92008
STAVRON BEVERLY A
2574 ROOSEVELT ST
CARLSBAD CA 92008
BOLAND JENNIFER
2576 ROOSEVELT ST
CARLSBAD CA 92008
TASTE AND SEA VACATIONS LLC
605 LAGUNA DR
CARLSBAD CA 92008
FRANKLIN FAMILY TRUST
2712 MADISON ST
CARLSBAD CA 92008
STROTHER 1996 TRUST
3811 MARGARET WAY
CARLSBAD CA 92008
KUDREN FAMILY REVOC TRUST
2660 MADISON ST
CARLSBAD CA 92008
APODACA JOE P AND FRANCES L
FAMILY
327 HILL DR
VISTA CA 92083
SHEA PATRICK O AND SUE J 0
.2605 MADISON ST
CARLSBAD CA 92008
!ALCANTAR MARTIN V AND MARIA I
2560 ROOSEVELT ST
CARLSBAD CA 92008
. LOPEZ LUISA
2570 ROOSEVELT ST
CARLSBAD CA 92008
DWYER CHRISTA
2580 ROOSEVELT ST
CARLSBAD CA 92008
I ERGIN H s
. PO BOX 218
CARLSBAD CA 92018
OWNER NAME UNAVAILABLE
2650 ROOSEVELT ST
CARLSBAD CA 92008
I BALAKER VICTOR AND ANGELA
3811 ALDER AVE
CARLSBAD CA 92008
HIMATHONGKHAM VARA TRUST
2672 MADISON ST
j CARLSBAD CA 92008
MORISON SOMOR K
2664 MADISON ST
CARLSBAD CA 92008
BROWAR MS FAMILY TRUST
4411 MORENA BLVD
STE 250
SAN DIEGO CA 92117
VASQUEZ ANGELINA
2564 ROOSEVELT ST
CARLSBAD CA 92008
RECINOS PEDRO E AND MYRNA Y
2566 ROOSEVELT ST
CARLSBAD CA 92008
PAGE THOMAS
2572 ROOSEVELT ST
CARLSBAD CA 92008
SCHEXNAYDER JEANIE
2578 ROOSEVELT ST
CARLSBAD CA 92008
SD C PROPERTIES LLC
2155 RAMONA LN
VISTA CA 92084
WILSON JANE RESIDENCE TRUST
2710 MADISON ST
CARLSBAD CA 92008
· FARLEY TIMOTHY R
PO BOX 1622
CARLSBAD CA 92018
STROTTO JUANITA M
2678 MADISON ST
CARLSBAD CA 92008
' DESILVA FAMILY TRUST
2668 MADISON ST
CARLSBAD CA 92008
BLEICH FAMILY TRUST
13176 W SKINNER DR
PEORIA AZ 85383
BEAZLEY BRENT AND DENISE
FAMILY TR
16633 VENTURA BLVD
STE 1030
ENCINO CA 91436
VINE CHURCH
7040 AVENIDA ENCINAS
STE 104-3
CARLSBAD CA 92011
OWNER NAME UNAVAILABLE
3425 SEACREST DR
CARLSBAD CA 92008
NORTH SAN DIEGO COUNTY
TRANSIT D
399 CARLSBAD VILLAGE DR
CARLSBAD CA 92008
-157 PRINTED -
* DUPLICATE OWNERS REMOVED
PLEASE NOTE THERE IS 1
INTERNATIONAL LABEL ON PAGE 4
OF THESE LABELS
OSTRIE FAMILY INC
PO BOX 8
RANCHO SANTA FE CA 92067
NORTH COUNTY TRANSIT DISTRICT
.p.u
PUBLIC ."£ENCY
C~RLSBAD CA 92008
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN to you, because your interest may be affected, that the City Council of the City
of Carlsbad will hold a Public Hearing at the Council Chamber, 1200 Carlsbad Village Drive, Carlsbad,
California, at 6:00 p.m. on Tuesday, Dec. 17, 2019 to consider an amendment to the conditions of the
Tentative Tract Map and the Site Development Plan to purchase one inclusionary housing credit for an
eight-unit, residential air-space condominium project located at 2646 State Street, and more particularly
described as:
The Southwesterly 175 feet of the Northwesterly half of Lot 25 of Seaside Lands, in the
City of Carlsbad, County of San Diego, State of California, according to Map thereof No.
1722, filed in the Office of the County Recorder of San Diego County, July 28, 1921
Whereas, on June 25, 2019, the City Council voted 5-0 to approve the Tentative Tract Map and Site
Development Plan for the Seaglass project, an eight-unit townhouse-style condominium development
located at 2646 State Street, with the condition that the inclusionary housing requirement be satisfied
onsite by deed-restricting one dwelling unit as affordable to lower-income households. Whereas, the
applicant has submitted a request to amend the project conditions to allow for the purchase of an
inclusionary housing credit. Pursuant to Section 15061{b)(3) of the CEQA Guidelines, the City Planner
has determined that the project is not subject to the California Environmental Quality Act (CEQA). The
request to amend the project conditions to allow for the purchase of an inclusionary housing credit will
not have a significant effect on the environment.
Those persons wishing to speak on this proposal are cordially invited to attend the public hearing. Copies
of the staff report will be available on and after December 12, 2019. If you have any questions, please
contact Shannon Harker in the Planning Division at 760-602-4621 or Shannon.Harker@carlsbadca.gov.
If you challenge the Amendments in court, you may be limited to raising only those issues you or someone
else raised at the public hearing described in this notice or in written correspondence delivered to the City
of Carlsbad, Attn: City Clerk's Office, 1200 Carlsbad Village Drive, Carlsbad, CA 92008, at or prior to the
public hearing.
CASE FILE:
CASE NAME:
PUBLISH:
AMEND 2019-0006/AMEND 2019-0009 {DEV2017-0236)
THE SEAGLASS
December 6, 2019
CITY OF CARLSBAD
CITY COUNCIL
Exhibit 2
NOT TO SCALE
SITE MAP
The Seaglass
AMEND 2019-0006 / AMEND 2019-0009
(DEV2017-0236)
AMEND 2019-0006/AMEND 2019-0009
The Seaglass
City Council, Item #19
December 17, 2019
Staff: Shannon Harker, CED
Item Consideration
Project applicant is seeking approval of
amendments to the discretionary permits for an
eight-unit condominium project to allow the
inclusionary housing requirement to be satisfied
through the purchase of one inclusionary housing
credit at the Tavaura development, instead of
satisfying the inclusionary requirement onsite.
Background
Planning Commission, April 17, 2019
•Recommended approval of 8-unit
condominium development at
2646 State Street
•Conditioned to purchase one
affordable housing credit from
Tavarua senior affordable housing
project on Harding Street.
Background- Cont’d
City Council, June 25, 2019
Approved project with
condition to satisfy the
affordable housing
requirement onsite by
deed-restricting one unit as
affordable to lower-income
households
Onsite Options Explored by Applicant
Option 1
Restrict smallest unit in project as an inclusionary unit
Option 2
Redesign floor plan of two units to further reduce size of
smallest unit.
Both options require significant subsidy from the
Housing Trust Fund (up to $1.3 million)
Housing Policy Team does not support Options 1 and 2
CMC Section 21.85.070
City Council may approve alternatives to constructing
inclusionary unit onsite if it is determined to be infeasible
or presents unreasonable hardship.
Alternatives include, but are not limited to:
•Acquisition and rehabilitation of an affordable unit
•Conversion of existing market rate unit to affordable unit
•Contribution to a special needs affordable housing
project
Offsite Options Explored by Applicant
Option 3
Purchase condominium offsite in NW quadrant and
convert to an inclusionary unit.
Option not supported by the applicant due to time
it would take to implement
Least expensive unit is located outside of the
boundaries of the VBMP and not favored by staff or
the Housing Policy Team
Offsite Options Explored by Applicant-
Cont’dOption 4 (Applicant Request)
Purchase inclusionary housing
credit from the Tavaura project
•Affordable apartments for seniors
•Special needs population at a lower
affordability rate than would be
provided for Seaglass.
•Located within Village and Barrio
Master plan and the NW Quadrant
•Credit purchase is supported by
Housing Policy Team
•$84,000 per credit
Recommendation
ADOPT a Resolution APPROVING Amendment No.
AMEND 2019-0006 and Amendment No.AMEND
2019-0009,amendments to Tentative Tract Map No.
CT 2018-0004 and Site Development Plan SDP 2018-
0021,to satisfy the inclusionary housing
requirement with the purchase of one inclusionary
housing credit for an eight-unit,residential air-space
condominium project located at 2646 State Street.
Village and Barrio Affordable Housing
Status (2002-present)Number of units
Approved on-site 139
Under construction 18
Built 83
TOTAL 240
Village and Barrio Affordable Housing
Project Total, all units Total, affordable units Approval date Status
Harding Veterans Housing 26 26 2017Approved
Oak Veterans Housing 24 24 2017Approved
Jefferson Luxury Apts 11 2 2018Approved
Seaglass 8 1 2019Approved
Pacific Wind 87 86 2017Approved
Village by the Sea 65 11 2002Built
Laguna Pointe 21 3 2002Built
Roosevelt Grdens 11 11 2007Built
Tavarua 50 50 2011Built
State St Townhomes 47 6 2014Built
Beachwalk at Roosevelt 16 2 2016Built
State St. Mixed Use 30 14 2 2015Under construction
Carlsbad Village Lofts 106 16 2017Under construction
TOTALS 486 240
Village and Barrio Financial Assistance
Year Project Name Affordable
Units
HTF Assistance Subsidy/unit Note
2003 Laguna Point 3 $70,000/unit Funding source: Redevelopment Agency
Low and Moderate Income Hosing Fund
2008 Roosevelt Gardens 11 $142,000/unit Funding includes from CDBG and HOME;
Total financial contribution is $1,561,920
2009 Tavarua 50 $3,750,000 $75,000/unit 2016 CC approved housing credit fee
$84K/unit
2013 Carol/Harding (Pacific Wind)44 $7,408,000 $168,364/unit Based on acquisition of existing units
only; approved project for 87 units new
construction lacks sufficient funding
2014 Solutions for Change (Chestnut)16 $2,436,000
(+$454,000 CDBG
grant)
$152,250/unit
(HTF only)
Also rec’d $454K CDBG grant for
$180,625/unit subsidy overall; seeking
other funding
2017 Oak and Harding Veterans
Housing (Windsor Pointe)
50 $4,250,000 $85,000/unit Seeking additional funding
Other
1999 Tyler Court Acquisition 75 1,000,000 $13,333/unit $5M purchase; other funding sources:
LMIHF (Redev) $1.6M HOME $200K,
Redev Bonds $1.28M; Gen Fund Loan
$949K