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HomeMy WebLinkAbout2021-10-12; City Council; ; Request to purchase two affordable housing credits and approval of an Affordable Housing Agreement to satisfy the inclusionary housing requirement for the Ocean View PoinMeeting Date: Oct. 12, 2021 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Mandy Mills, Housing & Homeless Services Director mandy.mills@carlsbadca.gov, 760-434-2907 Subject: Request to purchase two affordable housing credits and approval of an Affordable Housing Agreement to satisfy the inclusionary housing requirement for the Ocean View Point Project (CT 15-07) District: 2 Recommended Action Adopt a resolution authorizing the purchase of two affordable housing credits and approving an affordable housing agreement to satisfy the inclusionary housing requirement for the Ocean View Point Project. Executive Summary Rincon Homes is under contract to purchase and build a 13-unit project, known as Ocean View Point. The tentative map for the development was approved by the Planning Commission on June 19, 2019, and the project is required to provide two units affordable to low-income households. The project’s approval requires an affordable housing agreement to be executed before its final map is approved. (Planning Commission Resolution 7339, Exhibit 2) The home builder is seeking to satisfy its inclusionary housing requirement – a requirement intended to create affordable housing for lower-income families –by purchasing two affordable housing credits instead of building two affordable units on the site. The City Council’s approval is required for the purchase of affordable housing credits and the affordable housing agreement that implements them, in accordance with the requirements and process set forth in Chapter 21.85 of the Carlsbad Municipal Code. Discussion On June 19, 2019, the Planning Commission approved the development of a 13 large-lot subdivision on a 21.9-acre property at the southern end of Twain Avenue, next to the Spyglass Hills neighborhood (Exhibit 3). To meet the project’s inclusionary housing requirement, the project is eligible to request purchasing two affordable housing credits in the Tavarua Apartments development because it is also in the city’s Northwest Quadrant planning area. On July 26, 2016, the City Council agreed to designate the Tavarua Apartments as a combined affordable housing project under the city's Inclusionary Housing Program. It provided 50 units Oct. 12, 2021 Item #3 Page 1 of 53 of housing affordable to lower income households in excess of the inclusionary housing obligation for a market-rate housing developer. These 50 units represent housing credits that may be purchased by future housing developers in the Northwest Quadrant. At the discretion of the City Council, the credits may be purchased to satisfy a project’s inclusionary housing requirement at a price set by the City Council. The current per unit credit price for the Tavarua Apartments project is $98,123. The City Council has adopted policy statements nos. 57 and 58 (Exhibits 4 and 5) that govern the sale of affordable housing credits. The policies require the city to examine the feasibility of a proposal to build affordable housing units on the project site, the advantages and disadvantages of an off-site proposal, and whether the off-site project advances the city's housing goals and strategies. Because of the small size of the Ocean View Point project at 13 units, significant environmental constraints and the anticipated high homeowner’s association dues, the applicant has elected to pursue the purchase of two affordable housing credits rather than constructing two units on the site of the market rate development. The city’s Affordable Housing Policy Team has reviewed the request and, using the criteria in the City Council policies, recommend that the City Council approve the applicant’s request to purchase the credits for the project. A summary of the team’s analysis can be found in Exhibit 5. On Sept. 9, 2021, the Housing Commission took action to recommend that the City Council approve the applicant’s request to purchase two affordable housing credits to satisfy the project's inclusionary housing obligation (Exhibit 6). Three members of the Housing Commission did, however, wanted to express to the City Council their belief that the existing methodology of meeting the inclusionary requirements should be examined and changed to better reflect the variable cost of providing an affordable unit, depending on the market rate product type and price. Carlsbad Municipal Code Chapter 21.85 requires the developer of a project to receive approval of an affordable housing agreement that details how the requirements of the Inclusionary Housing Ordinance shall be met. The City Council is the final decision maker of agreements when there is a request to satisfy the requirement through alternative methods. The draft affordable housing agreement is included as an attachment to the City Council resolution (Exhibit 1). The price and timing of the credit purchase is directed through City Council Policy Statement No. 57. If approved by the City Council, the funds received from the purchase of two affordable housing credits will be deposited into the city’s Housing Trust Fund to assist in the development of future affordable housing projects as well as programs to provide housing assistance to low- income households. Payment for the two affordable housing credits must be received before the city can issue a building permit for the project. Oct. 12, 2021 Item #3 Page 2 of 53 Options Staff provide the following options for the City Council’s consideration: 1. Authorize the purchase of two affordable housing credits and approve the affordable housing agreement as presented. Pros • This option keeps the development project on track to meet the city’s conditions. • Increases funds in the Housing Trust Fund available for the creation of additional affordable housing units. Cons • Does not result in the near-term construction of new affordable units as funds would be reinvested in future projects. 2. Do not approve the affordable housing agreement as presented. Pros • The developer would have to its their inclusionary housing requirement in some other manner that could include the creation of new affordable units. Cons • The project would have to satisfy its inclusionary requirement is some other manner, which may cause the project to be financially infeasible, potentially jeopardizing its viability. Staff and the Housing Commission recommend Option one, approving the purchase request. Fiscal Analysis The Affordable Housing Credit price for the Tavarua Apartments is $98,123 per credit. The developer of Ocean View Point is required to purchase a total of two credits. This action would result in a payment of $196,246 to the city that would be deposited into the Housing Trust Fund. These funds will be used to assist in the development of future affordable housing projects as well as programs to provide housing assistance to low-income households, as appropriate. It should be noted that the developer and/or builder will pay the credit price in effect at the time that building permits are issued for the development. The affordable housing credit price for Tavarua Apartments has an annual escalator based on the Consumer Price Index. Therefore, it is possible that the developer may pay more than the credit price noted above depending upon any increases in the price of the credits that may take effect before the issuance of a building permit. Next Steps Staff will process the implementing affordable housing agreement with the developer. The resolution authorizes the City Manager, or designee, to execute and record all necessary documents. Environmental Evaluation The City Council adopted a mitigated negative declaration, mitigation monitoring and reporting program and addendum for this project on Aug. 20, 2019. No further environmental review is required under California Environmental Quality Act Guidelines Section 15162. Oct. 12, 2021 Item #3 Page 3 of 53 Public Notification and Outreach This item was noticed in keeping with the state's Ralph M. Brown Act and it was available for public viewing and review at least 72 hours before the scheduled meeting date. Exhibits 1. City Council resolution 2. Planning Commission Resolution 7339 3. Location map 4. City Council policy statement No. 57 5. City Council policy statement No. 58 6. City Council Policy Statement 57 criteria and analysis 7. Housing Commission Resolution 2021-006 Oct. 12, 2021 Item #3 Page 4 of 53 RESOLUTION NO. 2021-231 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE PURCHASE OF TWO AFFORDABLE HOUSING CREDITS AND APPROVAL OF AN AFFORDABLE HOUSING AGREEMENT TO SATISFY THE INCLUSIONARY HOUSING REQUIREMENT FOR THE OCEAN VIEW POINT PROJECT EXHIBIT 1 WHEREAS, Rincon Homes is under contract to build a thirteen-home subdivision, known as Ocean View Point, and is conditioned to provide two units affordable to low income households; and WHEREAS, the Planning Commission approved a Tentative Map for said development on June 19,2019;and WHEREAS, the home builder is seeking to satisfy the inclusionary housing requirement through the purchase of two affordable housing credits as opposed to building on site, and WHEREAS, Carlsbad Municipal Code Chapter 21.85 allows the city to determine that an alternative to the construction of new inclusionary units is acceptable when it can be demonstrated by a developer that the city's housing goals would be better served by an alternative method; and WHEREAS, affordable housing credits from the Tavarua Apartments project in the northwest quadrant are available to purchase for this project; and WHEREAS, the city's Affordable Housing Policy Team reviewed the request on July 28, 2021, to discuss the request and consider options, prior to presenting it to the Housing Commis~ion for their consideration and recommendation to the City Council; and WHEREAS, the Housing Commission considered the request, staff evaluation and recommendation, and the testimony of all persons desiring to be heard on the matter at a special meeting on Sept. 9, 2021, and recommended that the City Council approve the request to purchase two affordable housing credits to satisfy their inclusionary housing requirement; and WHEREAS, the Housing Commission makes recommendations to the City Council for projects that alternatively meet inclusionary housing requirements set forth in 21.85 of the Carlsbad Municipal Code;and WHEREAS, Carlsbad Municipal Code Chapter 21.85 requires the developer of a project to receive approval of an Affordable Housing Agreement which details how the requirements of the lnclusionary Housing Ordinance shall be met. The City Council is the final decision maker of agreements when there is a request to satisfy the requirement through alternative methods. Oct. 12, 2021 Item #3 Page 5 of 53 Recording Requested by: City of Carlsbad When Recorded Mail to: City of Carlsbad City Clerk's Office Attn: City Clerk 1200 Carlsbad Village Drive Carlsbad, California 92008 (Space above for Recorder’s Use) AFFORDABLE HOUSING AGREEMENT (Purchase of Credits) THIS AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into this ______ day of ___________, 2021, by and between the CITY OF CARLSBAD, a municipal corporation (“City”) and RREG Investments Series LLC Series I045. (“Developer”), a California Limited Liability Corporation, with reference to the following: RECITALS A.Developer is the owner of certain real property in the City of Carlsbad, County of SanDiego, State of California, described in “Exhibit A”, which is attached hereto and incorporated herein by this reference, and which is the subject of a Tentative Map (CT15-07), which provides conditional approval of the construction of thirteen (13) single family dwelling units (“Project”). B.Chapter 21.85 of the Carlsbad Municipal Code requires that this Agreement shall beentered into between the City and the Developer as a means of satisfying the Developer’s affordable housing obligation, as such is defined under Chapter 21.85 of the Carlsbad Municipal Code. Planning Commission Resolution No. 7339 provides that the Affordable Housing Obligation of two (2) units (“Affordable Housing Obligation”) will be satisfied by the construction of the affordable housing obligation on the project site and concurrent with the project’s market rate units. Subsequent to approval of the project by the Planning Commission on June 19, 2019 and City Council on August 20, 2019, the City Council considered and approved a request on October 12, 2021 from the new property owner and developer (RREG Investments Series LLC Series I045) to purchase two (2) affordable housing credits in a combined, off-site affordable housing development (Tavarua Affordable Development) within the northwest quadrant of the city, as provided for in Chapter 21.85, Section 21.85.080, as an alternative to construction of the affordable housing obligation on the site of the market rate units. NOW, THEREFORE, incorporating the foregoing Recitals and in consideration of the mutual covenants contained herein, the parties agree as follows: 1.The Recitals are true and correct. Attachment A Oct. 12, 2021 Item #3 Page 7 of 53 2. THAT SATISFACTION OF DEVELOPER’S AFFORDABLE HOUSING REQUIREMENT WILL BE BY THE PURCHASE OF AFFORDABLE HOUSING CREDITS. (a) Performance under this Agreement satisfies the Developers’ obligation for affordable housing under Chapter 21.85 of the Carlsbad Municipal Code as applied to the land covered by Carlsbad Tract No.15-07 (CT15-07) by reason of the approvals of the Tentative Map of CT 15-07, including Condition No. 15 of Planning Commission Resolution No. 7339, and any other applicable approval. (b) The Developer shall purchase two (2) affordable housing credits in the Tavarua Affordable Housing development (within the Northwest Quadrant of the City of Carlsbad), based on availability, for an amount established by resolution of the City Council and as required by Condition No. 15 of Planning Commission Resolution No. 7339 no later than two (2) years following City Council approval of this Agreement. The credit fee shall be paid prior to the Developer receiving any building permits for the project. The subject housing credits will be reserved for said Developer for no longer than (2) years following City Council approval of this Agreement. If the Developer does not purchase the subject credits within two (2) years of the date of this Agreement, the City shall make the credits available to one or more alternate developers and the Developer for this Agreement shall then be required to satisfy its inclusionary obligation through alternate methods as approved by the City. 3. REMEDIES Failure by the Developer to perform in accordance with this Agreement will constitute failure to satisfy the requirements of Chapter 21.85 of the Carlsbad Municipal Code and Condition No. 15 of Planning Commission Resolution No. 7339. Such failure will allow the City to exercise any and all remedies available to it including but not limited to withholding the issuance of building permits for the lots shown on Carlsbad Tract No. 15-07 (CT15-07). 4. HOLD HARMLESS Developer will indemnify and hold harmless (without limit as to amount) City and its elected officials, officers, employees and agents in their official capacity (hereinafter collectively referred to as “Indemnitees”), and any of them, from and against all loss, all risk of loss and all damage (including attorneys’ fees and expenses) sustained or incurred because of or by reason of any and all claims, demands, suits, or actions, obtained, allegedly caused by, arising out of or pertaining in any manner to Developer’s actions or defaults pursuant to this Agreement, and shall protect and defend Indemnitees, and any of them with respect thereto. This provision shall survive the term of this Agreement. 5. NOTICES All notices required pursuant to this Agreement shall be in writing and may be given by personal delivery or by registed or certified mail, return receipt requested to the party to receive such notice at the address set forth below: TO THE CITY: City of Carlsbad Housing & Homeless Services Department Attn: Housing & Homeless Services Director 1200 Carlsbad Village Drive Carlsbad, California 92008 Oct. 12, 2021 Item #3 Page 8 of 53 TO THE DEVELOPER: RREG Investments Series LLC Series I045 Attn: Cameron St. Clair, Principal 5315 Avenida Encinas, Suite 200 Carlsbad, Ca. 92008 Any party may change the address to which notices are to be sent by notifying the other parties of the new address, in the manner set forth above. 6. ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the parties and no modification hereof shall be binding unless reduced to writing and signed by the parties hereto. 7. DURATION OF AGREEMENT This Agreement shall terminate and become null and void upon the payment of the affordable housing credits, or the repeal, termination, or modification of any applicable ordinance which act would render the Affordable Housing Obligation unnecessary or unenforceable. 8. SUCCESSORS This Agreement shall benefit and bind the Developer and any successive owners of affordable housing lots. THE REMAINDER OF THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK Oct. 12, 2021 Item #3 Page 9 of 53 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY Lots 1 through 7, inclusive, of City of Carlsbad Tract No. CT 02-06, in the City of Carlsbad, County of San Diego, State of California, according to map thereof No. 16265, filed in the Office of the County Recorder of San Diego County on April 27, 2018. Oct. 12, 2021 Item #3 Page 11 of 53 PLANNING COMMISSION RESOLUTION NO. 7339 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL OF A TENTATIVE TRACT MAP, PLANNED DEVELOPMENT PERMIT, COASTAL DEVELOPMENT PERMIT, HILLSIDE DEVELOPMENT PERMIT, AND HABITAT MANAGEMENT PLAN PERMIT TO ALLOW FOR THE SUBDIVISION AND DEVELOPMENT OF 18 LOTS (13 SINGLE-FAMILY RESIDENTIAL, ONE PRIVATE STREET, AND FOUR OPEN SPACE), ALL OF WHICH IS CONTAINED WITHIN A 21.9-ACRE PREVIOUSLY SUBDIVIDED PROPERTY GENERALLY LOCATED SOUTH OF THE TERMINUS OF TWAIN AVENUE WITHIN THE MELLO II SEGMENT OF THE LOCAL COASTAL PROGRAM AND LOCAL FACILITIES MANAGEMENT ZONE 8. CASE NAME: OCEAN VIEW POINT CASE NO.: CT 15-07 /PUD 15-15/ CDP 15-53/HDP 15-03/ HMP 15-05 (DEV15043) WHEREAS, OCEAN VIEW-CARLSBAD, LLC, "Deve_loper/Owner," has filed a verified application with the City of Carlsbad regarding property described as Lots 1 through 7, inclusive, of City of Carlsbad Tract No. CT 02-06, in the City of Carlsbad, County of San Diego, State of California, according to map thereof No. 16265, filed in the Office of the County Recorder of San Diego County on April 27, 2018 ("the Property"); and WHEREAS, said verified application constitutes a request for a Tentative Tract Map, Planned Development Permit, Coastal Development Permit, Hillside Development Permit, and Habitat Management Plan Permit as shown on Exhibit(s) "A" -"M" dated June 19, 2019, on file in the Planning Division CT 15-07 /PUD 15-15/CDP 15-53/HDP 15-03/HMP 15-05 -OCEAN VIEW POINT, as provided by Chapters 20.12, 21.45, 21.95, 21.201 and 21.210 of the Carlsbad Municipal Code; and WHEREAS, the Planning Commission did, on June 19, 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, Planned Development Permit, Coastal Development Permit, Hillside Development Permit, and Habitat Management Plan Permit. Exhibit 2 Oct. 12, 2021 Item #3 Page 14 of 53 • NOW, THEREFORE, BE IT HEREBY RESOLVED by the Planning Commission of the City of Carlsbad as follows: A) That the foregoing recitations are true and correct. B) That based on the evidence presented at the public hearing, the Commission RECOMMENDS APPROVAL of CT 15-07/PUD 15-15/CDP 15-53/HDP 15-03/HMP 15-05- OCEAN VIEW POINT, based on the following findings and subject to the following conditions: Findings: Tentative Tract Map, CT 15-07 l. 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 project implements the goals and policies of the General Plan as discussed above; is consistent with all minimum requirements of Titles 20 and 21 governing lot size and configuration; and has been designed to comply with all applicable city regulations. 2. That the proposed project is compatible with the surrounding future land uses since surrounding properties are designated for residential development on the General Plan and are developed with single-family homes of a comparable density of 0-4 dwelling units per acre and lot sizes from 8,000 to 20,000 square feet. 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 all required minimum development standards and design criteria required by the applicable zoning ordinances are incorporated into the project design without the need for variances from development standards. 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 no 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 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 and that the proposed housing can be adequately served by the existing public services and no new facilities are required. 7. 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 PC RESO NO. 7339 -2-Oct. 12, 2021 Item #3 Page 15 of 53 that staff has conducted an environmental impact assessment to determine if the project could have any potentially significant impacts on the environment. The environmental impact assessment identified potentially significant impacts to both Biological Resources and Cultural Resources. Mitigation measures have been incorporated into the design of the project and the Mitigation Monitoring and Reporting Program (MMRP) such that all potentially significant impacts will be mitigated to below a level of significance. 8. That the discharge of waste from the subdivision will not result in violation of existing California Regional Water Quality Control Board requirements, in that the project will adhere to the city's Master Drainage Plan, Grading Ordinance, Storm Water Ordinance, BMP Design Manual and Jurisdictional Runoff Management Program (JRMP) to avoid increased urban runoff, pollutants, and soil erosion. Planned Development Permit, PUD 15-15 9. The proposed project is consistent with the general plan, and complies with all applicable provisions of this chapter, and all other applicable provisions of the Carlsbad Munieipal Code, in that the project density of 2.7 dwelling units per net acre for the 5.4-acre project area is consistent with the R-4 Residential General Plan Land Use designation (0-4 du/ac). Additionally, the project is consistent with all the minimum development and design standards applicable to the property as contained in Chapters 21.10 (One-Family Residential (R-1) Zone) and 21.45 (Planned Developments) of the Carlsbad Municipal Code. 10. The proposed project will not be detrimental to existing uses, or to uses specifically permitted in the area in which the proposed use is to be located, and will not adversely impact the site, surroundings, or traffic, in that the 13-unit single-family residential project is compatible with existing adjacent single-family development as permitted by the One-Family Residential (R-1) Zone and is proposed to be constructed at a density (2.7 du/ac) which falls within the range of the applicable R-4 Residential General Plan Land Use designation; and does not create any traffic circulation impacts as Twain Avenue is adequately designed to accommodate the 130 Average Daily Trips (ADT) being generated. 11. The project will not adversely affect the public health, safety, or general welfare, in that the 13- lot single-family residential subdivision has been designed to comply with all applicable development standards to ensure compatibility with surrounding single-family residential uses. 12. The project's design, including streets and site layout a) contributes to the community's overall aesthetic quality, b) includes the appropriate use of landscaping, and c) achieves continuity among all elements of the project, in that the proposed project is designed as a hillside large-lot single- family residential project that will complement the surrounding streets and development. Coastal Development Permit, CDP 15-53 13. That the proposed development is in conformance with the Certified Local Coastal Program (Mello II Segment) and all applicable policies, in that the project preserves 75 percent of the site as designated open space, provides measures adequate to mitigate impacts to onsite habitat, and includes erosion control measures that protect down slope coastal resources. 14. The proposal is in conformity with the public access and recreation policies of Chapter 3 of the Coastal Act in that the property is not located adjacent to a beach or water based recreational PC RESO NO. 7339 -3-Oct. 12, 2021 Item #3 Page 16 of 53 facilities but does however include a public trail link to the adjacent Veterans Memorial Park land. 15. The project is consistent with the provisions of the Coastal Resource Protection Overlay Zone (Chapter 21.203 of the Zoning Ordinance} in that the project will adhere to the city's Master Drainage Plan, Grading Ordinance, Storm Water Ordinance, BMP Design Manual and Jurisdictional Runoff Management Program (JRMP) to avoid increased urban runoff, pollutants, and soil erosion. Limited development, less than 10 percent, is proposed on natural steep slopes (~25 percent gradient). Habitat impacted by the project is being mitigated according to the mitigation standards of the Habitat Management Plan. In addition, the site is not located in an area prone to landslides, or susceptible to accelerated erosion, floods or liquefaction. Hillside Development Permit, HDP 15-02 16. That hillside conditions have been properly identified on the constraints map which show existing and proposed conditions and slope percentages. 17. That undevelopable areas of the project, i.e., slopes over 40 percent, have been properly identified on the constraints map. 18. That the development proposal is consistent with the intent, purpose, and requirements of the Hillside Ordinance, Chapter 21.95, in that the project is consistent with the land use and open space/conservation elements of the General Plan with 75 percent of the on-site habitat being restored and placed under a conservation easement and impacts to coastal sage scrub habitat being mitigated at a ratio of 2:1. A~ditionally, the project is designed to relate to the natural slope of the land stepping down gradually from the crest of the site at the terminus of Twain Avenue; the alteration of the natural hillsides will be developed in an environmentally sensitive manner to preserve steep slopes and wildlife habitat to the maximum extent practicable; and both mechanical and biological methods will be implemented to control potential erosion, including engineering the manufactured slopes to maximize slope stability; choosing appropriate plant materials for the manufact~red slopes to reduce the level of erosion of the slopes; implementing post-construction best management practices (BMPs) that will ensure run-off is appropriately treated to minimize the potential for erosion; and implementing construction-level BMPs to prevent any silt from entering any of the HMP open space conservation areas. 19. That the proposed development or grading will not occur in the undevelopable portions of the site pursuant to provisions of Section 21.53.230 of the Carlsbad Municipal Code, in that the site does not contain any beaches, permanent bodies of water, floodways, significant wetlands, significant riparian or woodland habitats, major power transmission easements, or railroad track beds. For those natural slopes with an inclination of greater than 40 percent located within the grading impact footprint, none of these slope areas include all of the following characteristics that would otherwise make them undevelopable: a) an elevation differential of greater than 15 feet; b) a minimum area of 10,000 square feet; and c) a slope that comprises a prominent landform feature. 20. The project design substantially conforms to the intent of the concepts illustrated in the Hillside Development Guidelines Manual, in that project grading is balanced onsite so there is no import or export of excess dirt; the grading design minimizes the volume of grading (4,333 cubic yards per acre) to an "acceptable" level (0 to 7,999 cubic yards per acre); none of the manufactured PC RESO NO. 7339 -4- Oct. 12, 2021 Item #3 Page 17 of 53 slopes exceed a height of 40 feet; manufactured slopes that are over 20 feet in height and 200 feet in length are contour graded to follow the general outline of the slopes below; all manufactured slopes are being landscaped in accordance with the City's Landscape Manual; and the fencing proposed along the top of the slope edge consists of an open type design (i.e., combination masonry wall (one to two feet tall) with clear glass on top) so as not to visually extend the height of the slope. 21. That the project design and lot configuration minimize disturbance of hillside lands, in that the significant slope and sensitive habitat areas are being preserved in open space to the maximum extent practicable. Habitat Management Plan Permit, HMP 15-05 22. That the Ocean View Point project parcel (APN 212-010-03 aka Kirgis) is shown in Figure 28 of the approved HMP as a "Standards Area," and is not a Hardline Area. 23. That authorization to impact sensitive habitats through the removal of 4.13 acres of coastal sage scrub (Habitat Group C) and 0.51 acres of disturbed land (Habitat Group F) was processed through the Wildlife Agencies by a Finding of Consistency, and is subject to continuous compliance with all provisions of the Habitat Management Plan for Natural Communities in the City of Carlsbad (HMP), the Citywide Incidental Take Permit issued for the HMP, the Implementing Agreement, the Terms and Conditions of the Incidental Take Permit, and the Biological Opinion. 24. That authorization to impact sensitive habitats is subject to continuous compliance with all mitigation measures as stated in the Mitigated Negative Declaration, Mitigation Monitoring and Report Program, and Addendum for Ocean View Point and is subject to all conditions contained in Planning Commission Resolutions No. 7337 for those other approvals, including but not limited to recordation of conservation easements over all conserved areas and management and monitoring in perpetuity by a qualified conservation entity. 25 . That authorization to impact sensitive habitats is subject to continuous compliance with the provisions of Volumes I, II and Ill of the Multiple Habitat Conservation Program and the Final Environmental Impact Statement/Environmental Impact Report for Threatened and Endangered Species Due to Urban Growth within the Multiple Habitat Conservation Program Planning Area (SCH No. 93121073). 26. That all impacts to habitat and all take of species will be incidental to otherwise lawful activities related to construction and operation of the Ocean View Point project. 27. That the project design as approved by the City of Carlsbad has avoided and minimized impacts to wildlife habitat and species of concern to the maximum extent practicable. Specifically, the project designates 75 percent of the site as open space preserve, provides measures adequate to mitigate impacts to onsite habitat, and includes erosion control measures that protect down slope coastal resources . 28. That adequate funding has been provided to address changed circumstances and adaptive management needs that may be reasonably anticipated in the future, consistent with the HMP Implementing Agreement. PC RESO NO. 7339 -5-Oct. 12, 2021 Item #3 Page 18 of 53 29. That the authorization to impact sensitive habitats as a result of the project will not appreciably reduce the likelihood of survival and recovery of the species in the wild due to compliance with all of the above stated requirements, as well as ongoing monitoring and reporting to the wildlife agencies and the public. 30. That the City Planner is authorized to sign the Take Permit. 31. The Planning Commission hereby finds that all development in Carlsbad benefits from the Habitat Management Plan, which is a comprehensive conservation plan and implementation program that will facilitate the preservation of biological diversity and provide for effective protection and conservation of wildlife and plant species while continuing to allow compatible development in accordance with Carlsbad's Growth Management Plan. Preservation of wildlife habitats and sensitive species is required by the Open Space and Conservation Element of the City's General Plan which provides for the realization of the social, economic, aesthetic and environmental benefits from the preservation of open space within an increasingly urban environment. Moreover, each new development will contribute to the need for additional regional infrastructure that, in turn, will adversely impact species and habitats. The In-Lieu Mitigation Fee imposed on all new development within the City is essential to fund implementation of the City's Habitat Management Plan. Pursuant to the HMP, the project has been conditioned to pay habitat in-lieu fees for impacts to 0.51 acres of disturbed land {Habitat Group F). California Environmental Quality Act 32. The Planning Commission of the City of Carlsbad does hereby find: General a. it has reviewed, analyzed, and considered the Mitigated Negative Declaration, Mitigation Monitoring and Report Program and Addendum for GPA 15-02/ZC 15-03/LCPA 15-05/CT 15-07 /PUD 15-15/CDP 15-53/HDP 15-03/HMP 15-05 -OCEAN VIEW POINT the environmental impacts therein identified for this project and any comments thereon prior to RECOMMENDING APPROVAL of the project; and b. the Mitigated Negative Declaration, Mitigation Monitoring and Report Program and Addendum has been prepared in accordance with requirements of the California Environmental Quality Act, the State Guidelines and the Environmental Protection Procedures of the City of Carlsbad; and c. it reflects the independent judgment of the Planning Commission of the City of Carlsbad; and d. based on the EIA and comments thereon, there is no substantial evidence the project will have a significant effect on the environment. 33. The Planning Commission finds that the project, as conditioned herein, is in conformance with the Elements of the City's General Plan, based on the facts set forth in the staff report dated June 19, 2019 including, but not limited to the following: a. Land Use & Community Design -Promote infill development that makes efficient use of limited land supply, while ensuring compatibility and integration with existing uses. PC RESO NO. 7339 -6- Oct. 12, 2021 Item #3 Page 19 of 53 b. C. d. e. Ensure that infill properties develop with uses and development intensities supporting a cohesive development pattern (Goal 2-G .3): The applicant is proposing to develop a vacant infill site with challenging topography and a 75 percent habitat preservation requirement. The residential lots are clustered in the area that minimizes impacts on the habitat with limited impact on the adjacent residential development. Land Use & Community Design -Protect the neighborhood atmosphere and identity of existing residential areas (Goal 2-G .5): The proposed lots, ranging in size from 10,353 square feet to 19,660 square feet, are generally consistent with the adjacent neighborhood, which range in size from 8,000 square feet to 20,000 square feet. Mobility -Keep Carlsbad moving with livable streets that provide a safe, balanced, cost- effective, multi-modal transportation system (vehicles, pedestrians, bikes, transit), accommodating the mobility needs of all community members, including children, the elderly and disabled (Goal 3-G.1); improve connectivity for residents, visitors and businesses (Goal 3-G.2); and provide inviting streetscapes that encourage walking and promote livable streets (Goal 3-G.3): The project, while gated, completes an otherwise unimproved non-landscaped project frontage along an existing cul-de-sac at the southern terminus of Twain Avenue and will also dedicate and install a pedestrian connection to the Citywide Trail System, which includes access to the nearby Veteran's Memorial Park and the Crossings at Carlsbad community golf course. A private street with gated entry is considered to be acceptable in this case because of the surrounding habitat, open space requirements and steep topography make it difficult, if not impossible to connect to Faraday Avenue below. Landscaped parkways and street trees will line the existing unimproved portion of Twain Avenue as well as the new private street. The circulation system has also been designed in conformance with the Land Development Engineering Division and Fire Department design standards for public streets, private streets and hillside condition~ and complies with all other applicable City of Carlsbad design standards. Open Space & Conservation -Protect environmentally sensitive lands, wildlife habitats, and rare, threatened or endangered plant and animal communities (Goal 4-G.3). Maintain and implement the city's Habitat Management Plan (HMP), including the requirement that all development projects comply with the HMP and related documents. Require assessments of biological resources prior to approval of any development on sites with sensitive habitat (Policy 4-P.9): The project site, which is identified as a "Standards Area" in the HMP, preserves seventy-five percent of the gross project area as Open Space. A Biological Technical Report (BTR) was prepared for the site and determined that there will be impacts to 4.13 acres of coastal sage scrub (Habitat Group C) and 0.51 acres of disturbed land (Habitat Group F). Impacts to Habitat Group C will be mitigated at a 2:1 ratio and impacts to Habitat Group F will be satisfied through payment of an in- lieu fee. Final design of the project was reached with extensive involvement and input by the Wildlife Agencies. An HMP Consistency Determination from the Wildlife Agencies was received on March 15, 2019 acknowledging the project's consistency with the HMP. Open Space & Conservation -Require developments to incorporate structural and non- structural best management practices (BMPs) to mitigate or reduce the projected increases in pollutant loads. Do not allow post-development runoff from a site that would cause or contribute to an exceedance of receiving water quality objectives or has not been PC RESO NO. 7339 -7-Oct. 12, 2021 Item #3 Page 20 of 53 reduced to the maximum extent practicable (Policy 4-P.58): The project will adhere to the city's Master Drainage Plan, Grading Ordinance, Storm Water Ordinance, BMP Design Manual and Jurisdictional Runoff Management Program (JRMP) to avoid increased urban runoff, pollutants, and soil erosion. -f. Open Space & Conservation -Coordinate the planning of park facilities and trails with other recreation-oriented land uses such as open space (Goal 4-G.8}; utilize greenways and trails to connect the city's open space network (Goal 4-G.11); and obtain an irrevocable offer to dedicate or a permanent easement for multi-use trails on privately owned property where feasible, and where. trails are proposed as part of the Carlsbad trail system (Policy 4-P.43): The proposed project will complete Trail Connection SD of the city's Trails Master Plan, thereby connecting the existing Spyglass Hills neighborhood and the proposed Ocean View Point development with Veteran's Memorial Park and The Crossings at Carlsbad community golf course. This segment will be a "Type 2 -Multi-Use Recreational Trail" that accommodates a broad range of trail users. The project is conditioned to require an irrevocable offer of dedication for a public trail easement through private property. g. Noise -Ensure that new development is compatible with the noise environment, by continuing to use potential noise exposure as a criterion in land use planning (Goal 5-G .2); The project will not result in exposure of persons to or generation of noise levels in excess of standards established in the City's General Plan or Noise Guidelines Manual in that the proposed residential subdivision is located outside the 60 dB(A) CNEL noise contour as indicated in the City of Carlsbad's General Plan Noise Element and Noise Guidelines Manual (Carlsbad Future Noise Exposure Contours Map, forecast year 2035). h. Noise -Use the noise policies in the McClellan-Palomar Airport Land Use Compatibility Plan (ALUCP) to determine acceptability of a land use within the airport's influence area (AIA) as depicted in the ALUCP (Policy 5-P.12}: The project site is located within Review Area 1 of the Airport Land Use Compatibility Plan for the McClellan-Palomar Airport (ALUCP), is within Safety Zone 6, is located outside of the 60-65 CNEL noise contour, and is within the Airport Overflight Notification Area. As stated in the ALUCP Table 111-2 (Safety Compatibility Criteria), residential development is a compatible use without limitations outside of the 60-65 CNEL noise contours and in Safety Zone 6. The requested land use change was also determined to be consistent with the ALUCP by the Airport Land Use Commission staff on October 25, 2016. Because the project is located within the Airport Overflight Notification Area, the project has been conditioned to record a notice informing future residents that the property is subject to overflight, sight and sound of aircraft operating from the airport. i. Public Safety -Encourage physical planning and community design practices that deter crime and promote safety (Policy 6-P.30): The project site is located within a five-minute response time of Fire Stations No. 3 and 5 and has been conditioned to comply with the fire code, including provisions for an automatic sprinkler system within each future dwelling unit. Additionally, a Conceptual Fire Protection Plan has been prepared for the project to demonstrate how it will conform to the policies and requirements of the Landscape Manual, particularly the Fire Policies and Fire Protection Requirements. The plan includes written and graphic illustrations of fire hydrant locations, GO-foot wide fire fuel modification zones covering both manufactured slope areas and native slope PC RESO NO. 7339 -8- Oct. 12, 2021 Item #3 Page 21 of 53 areas, emergency/maintenance access, and maintenance responsibility and schedule of frequency. j. Housing -Provide sufficient new, affordable housing opportunities in all quadrants of the city to meet the needs of current lower and moderate-income households and those with special needs, and a fair share proportion of future lower and moderate-income households (Goal 10-G.3): The project is conditioned to enter into an affordable housing agreement for the provision of two (2) affordable housing units. 34. The project is consistent with the Citywide Facilities and Improvements Plan, the Local Facilities Management Plan for Zone 8 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 8 is required by Carlsbad Municipal Code Section 21.90.050 and will be collected prior to issuance of building permit. 35. The project is consistent with the adopted Airport Land Use Compatibility Plan for the McClellan- Palomar Airport (ALUCP), dated March 4, 2010, in that: a. The proposed project is located outside the 60 dB CNEL noise contour. The ALUCP identifies all uses located outside the 60 dB(A) CNEL noise contour as compatible with airport uses; b. The proposed project is located within Safety Zone 6. The ALUCP identifies residential land uses located within Safety Zone 6 as compatible with airport uses; c. The proposed project is located within the Airport Overflight Notification Area but is outside the Avigation Easement Area. Accordingly, the project has been conditioned to record a notice informing future residents that the property is subject to overflight, sight and sound of aircraft operating from the airport; and d. The requested land use change was determined to be consistent with the Airport Land Use Compatibility Plan by the Airport Land Use Commission staff on October 25, 2016. 36. That the project is consistent with the City's Landscape Manual and Water Efficient Landscape Ordinance (Carlsbad Municipal Code Chapter 18.50). PC RESO NO. 7339 -9-Oct. 12, 2021 Item #3 Page 22 of 53 37. That the city has adopted a Citywide Trails Program and a segment of the trail network is associated with this project. 38. 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 exactions 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 grading permit, building permit or recordation of final map, whichever comes first; or pursuant to an approved construction schedule at the discretion of the appropriate division manager or official. 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 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, Planned Development Permit, Coastal Development Permit, Hillside Development Permit, and Habitat Management Plan Permit. 2. Staff is authorized and directed to make, or require the Developer to make, all corrections and modifications to the Tentative Tract Map, Planned Development Permit, Coastal Development Permit, Hillside Development Permit, and Habitat Management Plan Permit 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 shall implement, or cause the implementation of, the project Mitigated Negative Declaration, Mitigation Monitoring and Reporting Program, and Addendum for Ocean View Point -GPA 15-02/ZC 15-03/LCPA 15-05/CT 15-07 /PUD 15-15/CDP 15-53/HDP 15-03/HMP 15- 05. 6. 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, PC RESO NO. 7339 -10-Oct. 12, 2021 Item #3 Page 23 of 53 from (a) city's approval and issuance of this Tentative Tract Map, Planned Development Permit, Coastal Development Permit, Hillside Development Permit, and Habitat Management Plan Permit, (b) 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. 7. Prior to submittal ofthe 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 Tract Map, conceptual grading plan 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. 8. 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. 9. This project shall comply with all conditions and mitigation measures which are required as part of the Zone 8 Local Facilities Management Plan and any amendments made to that Plan prior to the issuance of building permits. 10. This approval is granted subject to the approval of the Mitigated Negative Declaration, Mitigation Monitoring and Reporting Program, and Addendum; GPA 15-02, ZC 15-03, and LCPA 15-05, and is subject to all conditions contained in Planning Commission Resolutions No. 7337 and 7338 for those other approvals incorporated herein by reference. 11. This approval shall become null and void if the final map is not approved for this project within 24 months from the date on which the California Coastal Commission votes to approve the project. 12. 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. 13. 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 8, 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. 14. 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 PC RESO NO. 7339 -11-Oct. 12, 2021 Item #3 Page 24 of 53 that the City of Carlsbad has issued a(n) Tentative Tract Map, Planned Development Permit, Coastal Development Permit, Hillside Development Permit, and Habitat Management Plan Permit by Resolution(s) No. 7339 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 mo9ifies or terminates said notice upon a showing of good cause by the Developer or successor in interest. 15. Prior to the approval of the final map for any phase of this project, the Developer shall enter into an Affordable Housing Agreement with the city to provide and deed restrict two (2) dwelling units (15 percent of the total dwelling units) as affordable to lower-income households for 55 years, 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. 16. Developer shall construct the required inclusionary units 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. 17. As a condition of this approval, applicant must comply with the requirements of all regulatory agencies having jurisdiction over the project and any mitigation requirements of the environmental documents for the project. Pursuant to Government Code section 65871 and Carlsbad Municipal Code Title 20, Chapter 20.04, section 20.04.140, applicant shall grant a conservation easement over all onsite and offsite mitigation areas and the onsite open space lot for the conservation, protection, and management of fish, wildlife, native plants and the habitat with the City's adopted Habitat Management Plan. 18. Developer shall dedicate, on the final map, an open space easement for those portions of Lots 1- 13, which are in slopes, coastal sage scrub and contain the 20-foot wide HMP Upland Habitat Buffer, to prohibit any encroachment or development, including but not limited to fences, walls, decks, storage buildings, pools, spas, stairways, and private (non-HOA maintained) landscaping, as shown on Planning Commission Exhibit(s) "A" -"N" dated June 19, 2019. 19. Prior to final map approval, or issuance of a grading permit or clearing of any habitat, whichever occurs first, the Developer shall take the following actions to the satisfaction of the City and resource agencies in relation to the onsite open space lot (Lot 14) and offsite mitigation areas which are being conserved for natural habitat in the conformance with the City's Habitat Management Plan: a. The Mitsuuchi Property (adjacent to the Batiquitos Lagoon Ecological Reserve) was purchased with federal Endangered Species Act Section 6 grant funding, allocated by the California Wildlife Conservation Board (WCB) with matching funding from the California Coastal Conservancy. The subgrant deed for this property states that the property cannot be used for mitigation. However, the subgrant agreement can be amended to allow mitigation at the discretion of the California Coastal Conservancy and the WCB. Prior to approval of this property being used to satisfy substantial restoration/restoration mitigation obligations of the Project, (i) the landowner/developer must provide documentation from the California Coastal Conservancy and WCB stating that the subgrant PC RESO NO. 7339 -12- Oct. 12, 2021 Item #3 Page 25 of 53 deed has been amended to allow Project-related mitigation on the Mitsuuchi property, and (ii) California Coastal Commission must approve the mitigation as a requirement · of the Coastal Development Permit. · b. Submit a final mitigation plan (conceptual restoration plan) for all onsite and offsite mitigation areas. This plan, including on-the-ground verification, must be approved by the city and resource agencies. c. Select a conservation entity for each offsite mitigation area and onsite open space lot, subject to approval by the City, that possesses qualification to manage these areas for conservation purposes. d. Submit a final a Preserve Management Plan for each offsite mitigation area and onsite open space lot, which will ensure adequate management of these areas in perpetuity. e. Submit a Property Analysis Record (PAR) or other method acceptable to the City for estimating the costs of management and monitoring of each offsite mitigation area and onsite open space lot in perpetuity in accordance with the requirements of the HMP. Although Emerald Pointe is already funded for long-term management, additional long- term funding for the mitigation area associated with the Ocean View Pointe project will be required to maintain this area to HMP standards. The Mitsuuchi property will also require additional management funding to insure the area is managed to HMP standards. f. Based on the results of the final PAR for each mitigation area/open space lot, fund non- wasting endowments in an amount sufficient for management and monitoring of the offsite mitigation areas and onsite open space lot in perpetuity based on the approved PAR/cost estimate. Separate funds must be established for each preserve (i.e., Ocean View Pointe, Shorepointe, Emerald Pointe, and Mitsuuchi). Long-term management funds for mitigation areas that already have an established endowment account can be paid into that existing account. g. Obtain approval of the United States Fish and Wildlife Service (USFWS), California Department of Fish and Wildlife (CDFW), and California Coastal Commission (CCC) for the restoration plan(s), preserve management plans, PARs, and endowments for all onsite and offsite mitigation areas/open space lot consistent with the most current Biological Resources Letter Report and Impact Analysis, or as otherwise approved by the City, USFW, CDFW, and CCC. h. Permanently protect all mitigation areas by establishing conservation easements, as defined in California Civil Code Section 815.1, over all offsite mitigation areas and the onsite open space lot for the conservation, protection, and management of native species and habitats consistent with the HMP and approved by the resource agencies and the city. Proof of recordation shall be provided to the jurisdictional city prior to land disturbance. 20. This project has been found to result in impacts to wildlife habitat or other lands, such as agricultural land, non-native grassland, and disturbed lands, which provide some benefits to wildlife, as documented in the city's Habitat Management Plan and the environmental analysis for this project. Developer is aware that the city has adopted an In-lieu Mitigation Fee consistent with Section E.6 of the Habitat Management Plan and City Council Resolution No. 2000-223 to fund mitigation for impacts to certain categories of vegetation and animal species. The Developer PC RESO NO. 7339 -13-Oct. 12, 2021 Item #3 Page 26 of 53 is further aware that the city has determined that all projects will be required to pay the fee in order to be found consistent with the Habitat Management Plan and the Open Space and . Conservation Element of the General Plan. Developer or Developer's successor(s) in interest shall pay the fee prior to recordation of a final map, or issuance of a grading permit or building permit, whichever occurs first. The applicant shall pay habitat in-lieu mitigation fees, consistent with the City's Habitat Management Plan (HMP) for impacts to 0.51 acres of disturbed land (Habitat Group F). If the In-lieu Mitigation Fee for this project is not paid, this project will not be consistent with the Habitat Management Plan and the General Plan and any and all approvals for this project shall become null and void. 21. The applicant shall submit to the City Planner a digital copy of the biology report exhibits in ESRI- Shapefile format registered to NAD 83 California State Plane Coordinate System Zone 6 {FIPS 406), US Survey Feet. The City Planner has the discretion to waive this condition based on factors such as the scope of the study and the format in which the exhibits were prepared. 22. Developer shall submit and obtain City Planner approval of a Final Landscape and Irrigation Plan showing conformance with the approved Preliminary Landscape Plan and the city's Landscape Manual. Developer shall construct and install all landscaping and irrigation as shown on the approved Final Plans. All landscaping shall be maintained in a healthy and thriving condition, free from weeds, trash, and debris. All irrigation systems shall be maintained to provide the optimum amount of water to the landscape for plant growth without causing soil erosion and runoff. 23. The first submittal of Final Landscape and Irrigation Plans shall be pursuant to the landscape plan check process on file in the Planning Division and accompanied by the project's building, improvement, and grading plans. 24. Street trees to be planted within the private street parkway shall be a minimum 24-inch box size. 25. 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. C. Notice and Amendment: A copy of any proposed amendment shall be provided to the city in advance. If the proposed amendment affects the city, the city shall have the right to disapprove. A copy of the final approved amendment shall be transmitted to the city within 30 days for the official record. 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 PC RESO NO. 7339 -14- Oct. 12, 2021 Item #3 Page 27 of 53 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 ____ . Brush management shall be performed once a year prior to fire season in accordance with the City of Carlsbad Landscape Manual. 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 ____ _ g. Aircraft Noise Disclosures: Disclosure shall be included that this property is subject to overflight, sight, and sound of aircraft operating from McClellan-Palomar Airport. h. Open Space Lots: The HOA open space lots within the development shall remain under the ownership and responsibility of the HOA for the purposes of open space, landscape and common recreation areas. Any encroachment or development for private benefit onto said lots shall be prohibited, including but not limited to private: fences, walls, decks, storage buildings, pools, spas, stairways, and landscaping, etc. i. Landscape Restrictions: No plant species listed as problematic and/or invasive by the California Invasive Plant Council (formerly the California Exotic Pest Plant Council) or PC RESO NO. 7339 -15-Oct. 12, 2021 Item #3 Page 28 of 53 State of California shall be employed or allowed to naturalize or persist on the site. No plant species listed as a "noxious weed" by the State of California or federal government shall be used in the property. No fire buffer impacts or vegetation thinning shall occur within the preserved open space (conservation easement) areas. j. Fire Restrictions: No exposed wood shall be allowed throughout the project, including gates, fences, decks, etc. Residences shall be constructed with a Class-A type roof, with no vents installed along the westerly side. Residences shall include interior fire sprinklers installed to the satisfaction of the Carlsbad Fire Department. Parking areas and driveways shall be sited and designed to allow for adequate fire department access. No fire buffer impacts or vegetation thinning shall occur within the preserved open space (conservation easement) areas. k. Lighting Restrictions: Project lighting in the back yards adjacent to the HMP Preserve areas shall be of the minimum necessary for safety and security and shall be shielded and directed to shine downward and not into the HMP Preserve. 26. Developer shall submit a street name list consistent with the city's street name policy subject to the City Planner's approval prior to final map approval. 27. Prior to occupancy of the first dwelling unit, the Developer shall provide all required passive and active recreational areas per the approved plans, including landscaping and recreational facilities. 28. Developer shall report, in writing, to the City Planner within 30 days, any address change from that which is shown on the permit application, any change in the telecommunications provider, or any transfer in ownership of the site. 29. 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 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. 30. Developer shall display a current Zoning and Land Use Map, or an alternative, suitable to the City Planner, in the sales office 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. 31. Developer shall post a sign in the sales office 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. 32. Prior to the recordation of the first final tract map or the issuance of building permits, whichever occurs first, the Developer shall prepare and record a Notice that this property is subject to overflight, sight and sound of aircraft operating from McClellan-Palomar Airport, in a form meeting the approval of the City Planner and the City Attorney (see Noise Form #2 on file in the Planning Division). PC RESO NO. 7339 -16- Oct. 12, 2021 Item #3 Page 29 of 53 33 . Developer shall post aircraft noise notification signs in all sales and/or rental offices associated with the new development. The number and locations of said signs shall be approved by the City Planner (see Noise Form #3 on file in the Planning Division). 34. Prior to the approval of a final map, the Developer shall pay to the city a Trail Plan Check fee and inspection fee in accordance with the current city fee schedule. 35. Prior to approval of the final map, the Developer shall provide an irrevocable offer of dedication to the City of Carlsbad for a trail easement for trail(s) shown on the Tentative Tract Map within Open Space Lot 14. Prior to the issuance of any building permits, the trail shall be constructed as a public trail for public use and accepted by the City of Carlsbad upon adoption of a Citywide Trails Program that includes provisions for maintenance and liability. Otherwise, prior to issuance of any building permits, the obligation for acceptance, construction, maintenance, and liability shall be the responsibility of the Homeowner's Association. 36. Developer shall provide the following note on the final map of the subdivision and final mylar of this development submitted to the city: A. "Chapter 21.90 of the Carlsbad Municipal Code established a Growth Management Control Point for each General Plan land use designation. Development cannot exceed the Growth Control Point except as provided by Chapter 21.90. The land use designation for this development is R-4 Residential, 0-4 dwelling units per non-constrained acre. Lots 1-13 and 15-18, as shown on the Tentative Tract Map, were used to calculate the intensity of development under the General Plan and Chapter 21.90. Subsequent redevelopment or resubdivision of any one of these lots must also include Lots 1-13 and 15-18, as shown on the Tentative Tract Map, under the General Plan and Chapter 21.90 of the Carlsbad Municipal Code." Parks and Recreation: 37. The public trail, including trail head amenities shall be constructed by the applicant and shall be the maintenance responsibility of the Homeowner's Associations. This trail is part of the Citywide Trail Network and shall be open to the public. 38. The applicant shall prepare and submit a trail plan for approval by the Parks and Recreation Department prior to construction. Construction shall be inspected to ensure conformity with the latest edition of the City of Carlsbad Engineering Standards, Trail Construction Standards and the approved plans. Engineering: General 39. 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. 7339 -17-Oct. 12, 2021 Item #3 Page 30 of 53 40. This project is approved upon the express condition that building permits will not be issued for the developr:nent 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. 41. 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 streets, utilities, sidewalks, landscaping, street lighting, raised median, enhanced paving, water quality treatment measures, low impact development features, storm drain facilities, etc. located therein and to distribute the costs of such maintenance in an equitable manner among the owners of the properties within this subdivision. The CC&R's shall also address the annual verification of the effective operation and maintenance of each structural treatment control BMP in accordance with the BMP maintenance agreement and the SWQMP. The annual verification shall be submitted to the enforcement official, in a format as approved by the city, prior to the start of the rainy season. The CC&R's shall include a dedication to the Homeowner's Association an easement for open space purposes as shown on the Tentative Tract Map. 42. 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. 43. 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. 44. Property owner shall maintain all landscaping (street trees, tree grates, shrubs, groundcover, etc.) and irrigation along the parkway frontage within the private street as shown on the Tentative Tract Map. Fees/ Agreements 45. 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. 46. Developer shall cause property owner to execute and submit to the City Engineer for recordation the city's standard form Drainage Hold Harmless Agreement. 47. Developer shall cause property owner to submit an executed copy to the City Engineer for recordation a city standard Permanent Stormwater Quality Best Management Practice Maintenance Agreement. 48. Developer shall cause property owner to apply for, execute, and submit, to the City Engineer for recordation, an Encroachment Agreement covering private retaining wall, enhanced pavement, sewer, raised median, vehicular gate and gate facilities located over proposed public right-of-way or easements as shown on the tentative map. Developer shall pay processing fees per the city's latest fee schedule. Grading 49. 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 PC RESO NO. 7339 -18- Oct. 12, 2021 Item #3 Page 31 of 53 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. 50. Supplemental grading plans are required for precise grading associated with this project. Developer shall prepare, and submit for approval, grading plans for the precise grading of the future residential buildings for this project subject to City Engineer approval. I 51. This project requires off site grading. No grading for private improvements shall occur outside the project unless developer obtains, records, and submits a recorded copy, to the City Engineer, a temporary grading, construction or slope easement or agreement from the owners of the affected properties. If developer is unable to obtain the temporary grading or slope easement, or agreement, no grading permit will be issued. In that case developer must either apply for and obtain an amendment of this approval or modify the plans so grading will not occur outside the project and apply for and obtain a finding of substantial conformance and/or consistency determination from both the City Engineer and City Planner. 52. 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, bathroom facilities, parking of construction vehicles, employee parking, construction fencing and gates, obtaining any necessary permission for off-site encroachment, addressing pedestrian safety, and 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 Construction Management & Inspection Engineering Manager. Storm Water Quality 53 . 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. 54. 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. 55. This project is subject to 'Priority Development Project' requirements. Developer shall prepare and process a Storm Water Quality Management Plan (SWQMP), subject to City Engineer approval, to comply with the Carlsbad BMP Design Manual latest version. The final SWQMP required by this condition shall be reviewed and approved by the City Engineer with final grading plans. Developer shall pay all applicable SWQMP plan review and inspection fees per the city's latest fee schedule. PC RESO NO. 7339 -19-Oct. 12, 2021 Item #3 Page 32 of 53 56. 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 applicable hydromodification measures. Dedications/Improvements 57. Developer shall cause owner to submit to the City Engineer for recordation a covenant of easement for private storm drain purposes as shown on the tentative map. The offer shall be made by a certificate on the final map or separate recorded document. Developer shall pay processing fees per the city's latest fee schedule. 58. Developer shall cause owner to submit to the City Engineer a request for the release of the existing covenant of easement for private drainage purposes created on map No. 16265. 59. Developer shall cause owner to make an Irrevocable Offer of Dedication to the city and/or other appropriate entities for public trail easement 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. Additional easements may be required at final design to the satisfaction ofthe City Engineer. 60. Developer shall cause owner to dedicate to the city and/or other appropriate entities easements for sewer and for general utility and access purposes as shown on the tentative map . The offer shall be made by 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. 61. Developer shall design the private streets, as shown on the tentative map to the satisfaction of the City Engineer. The structural section of all private streets shall conform to City of Carlsbad Standards based on R-value tests. All private streets shall be inspected by the city. Developer shall pay the standard improvement plan check and inspection fees for private streets. 62. 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. 63. Prior to any work in the 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. 64. 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. Sewer main, manholes and laterals within the proposed private street extension ofTwain Avenue. B. Reconstruction of the sewer main, manholes and laterals within the public right-of-way PC RESO NO. 7339 -20- Oct. 12, 2021 Item #3 Page 33 of 53 of existing Twain Avenue. C. Water main, fire hydrants, water services and meters within the proposed private street extension of Twain Avenue. D. Driveway approach, sidewalk and the reconstruction of the curb and gutter within the public right-of-way of existing Twain Avenue. E. D.G. trail and reconstruction of the existing trail within the proposed Irrevocable Offer of Dedication for public trial purposes. 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. Non-Mapping Notes 65. Add the following notes to the final map as non-mapping data: A. Developer has executed a city standard Subdivision 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: · 1) Sewer main, manholes and laterals within the proposed private street extension of Twain Avenue. 2) Reconstruction of the sewer main, manhole.s and laterals within the public right-of- way of existing Twain Avenue. 3) Water main, fire hydrants, water services and meters within the proposed private street extension of Twain Avenue. 4) Driveway approach, sidewalk and the reconstruction of the curb and gutter within the public right-of-way of existing Twain Avenue. 5) D.G. trail and reconstruction of the existing trail within the proposed Irrevocable Offer of Dedication for public trial purposes. 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. D. No structure, fence, wall, tree, shrub, sign, or other object may be placed or permitted to PC RESO NO. 7339 -21- Oct. 12, 2021 Item #3 Page 34 of 53 Utilities 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. 66. 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. 67. Developer shall design and agree to construct public facilities within public right-of-way or within minimum 20-foot wide easements granted to the district or the City of Carlsbad. At the discretion of the District or City Engineer, wider easements may be required for adequate maintenance, access and/or joint utility purposes. 68. 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. 69. 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. 70. The developer shall design and agree to construct public water, sewer, and recycled water facilities substantially as shown on the tentative map to the satisfaction of the District Engineer and City Engineer. Code Reminders: The project is subject to all applicable provisions of local ordinances, including but not limited to the following: 71. Developer shall pay planned local area drainage fees in accordance with Section 15.08.020 ofthe City of Carlsbad Municipal Code to the satisfaction of the City Engineer. PC RESO NO. 7339 -22- Oct. 12, 2021 Item #3 Page 35 of 53 72. 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. 73. Developer shall pay park-in-lieu fees to the city, prior to the approval of the final map as required by Chapter 20.44 of the Carlsbad Municipal Code. 74. Prior to the issuance of a building permit, Developer shall pay a Public Facility fee as required by Council Policy No. 17. 75. Prior to the issuance of a building permit, Developer shall pay the Local Facilities Management fee for Zone 8 as required by Carlsbad Municipal Code Section 21.90.050. 76. Developer shall pay a landscape plan check and inspection fee as required by Section 20.08.050 of the Carlsbad Municipal Code. 77. The project shall comply with the latest nonresidential disabled access requirements pursuant to Title 24 of the California Building Code. 78. Premise identification (addresses) shall be provided consistent with Carlsbad Municipal Code Section 17.04.060. 79. 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. 80. Any signs proposed for this development shall at a minimum be designed in conformance with the city's Sign Ordinance and shall require review and approval of the City Planner prior to installation of such signs. 81. New single-family residential developments containing one or more model home(s): A water efficient landscaping brochure shall be available for each group of adults visiting the model home. At a minimum, each brochure shall include information describing the water efficient features of the model's landscaping; resources for additional information regarding water efficiency in landscaping; contact information for the local water purveyor a.nd Planning Division; and a reference to the requirements of this landscape manual. A copy of the brochure shall be provided to the Planning Division prior to the city authorizing temporary occupancy as a model home. 82. An educational sign shall be placed in the front yard of each model home so that it is visible and readable from the roadway. The sign shall be white with black capital lettering at least two inches high and shall state "THIS MODEL HOME USES WATER EFFICIENT LANDSCAPING AND IRRIGATION". 83. 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 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 available on the city's website. CAP requirements may impact, but are not limited to, site design and local building PC RESO NO. 7339 -23-Oct. 12, 2021 Item #3 Page 36 of 53 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 Div.ision. Once adopted as part of Title 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. NOTICE Please take NOTICE that approval of your project includes the "imposition" of fees, dedications, reservations, or other exactions hereafter collectively referred to for convenience as "fees/exactions." You have 90 days from date of approval to protest imposition of these fees/exactions. If you protest them, you must follow the protest procedure set forth in Government Code Section 66020(a), and file the protest and any other required information with the City Manager for processing in accordance with Carlsbad Municipal Code Section 3.32.030. Failure to timely follow that procedure will bar any subsequent legal action to attack, review, set aside, void, or annul their imposition. You are hereby FURTHER NOTIFIED that your right to protest the specified fees/exactions DOES NOT APPLY to water and sewer connection fees and capacity charges, nor planning, zoning, grading, or other similar application processing or service fees in connection with this project; NOR DOES IT APPLY to any fees/exactions of which you have previously been given a NOTICE similar to this, or as to which the statute of limitations has previously otherwise expired. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Planning Commission of the City of Carlsbad, California, held on June 19, 2019, by the following vote, to wit: AYES: Chair Luna, Commissioners Geidner, Lafferty, Meenes, Merz, and Stine NOES: ABSENT: Commissioner Anderson G (JJtOABSTAIN: y Jffi1aJ CAROLYN LUNA,~ CARLSBAD PLANNING COMMISSION ATTEST: TERI DELCAMP ' Principal Planner PC RESO NO. 7339 -24-Oct. 12, 2021 Item #3 Page 37 of 53 Location Map Ocean View Point Oct. 12, 2021 Item #3 Page 38 of 53 r CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: Specific Subject: AFFORDABLE HOUSING Off-site and Combined Inclusionary Housing Projects Policy No. --"'-57'------­Date Issued August 8, 1995 Effective Date August 8. 19 9 5 Cancellation Date ------Supersedes No. ______ _ Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File. BACKGROUND The City's Inclusionary Housing Ordinance (CMC Chapter 21.85) establishes certain requirements under which residential developers must provide housing that is affordable to lower-income households as a condition of project approval and permit issuance. The Ordinance provides that inclusionary units "should be built on-site and, wherever reasonably possible, be distributed throughout the project site." The Ordinance also provides that "circumstances may arise ... in which the public interest would be served by allowing some or all of the inclusionary units associated with one project site to be produced and operated at an alternative site or sites." This alternative is described as a "Combined Inclusionary Housing Project" or "Combined Project". The Ordinance, in addressing Combined Projects, states that "it is the exclusive prerogative of the final decision making authority of the City to determine whether or not it is in the public interest to authorize the residential sites to form a Combined Inclusionary Housing Project. " PURPOSE It is the purpose of this policy to establish the criteria which will be utilized in order to make the necessary finding that off-site satisfaction of an inclusionary housing requirement, when proposed through a Combined Project, is in the public interest. POLICY The following criteria will be applied in order to make the necessary public interest finding. Each criteria is defined in terms of specific questions which, when affirmatively answered, would support an off-site option: Pagel of 4 EXHIBIT 4Oct. 12, 2021 Item #3 Page 39 of 53 CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: Specific Subject: AFFORDABLE HOUSING Off-site and Combined Inclusionary Housing Projects Policy No. --=57�----­Date Issued August 8, 1995 Effective Date August 8. 1995 Cancellation Date ------Supersedes No. ______ _ Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File. 1.Feasibility of the On-site Proposal.► Are there significant feasibility issues due to factors such as project size, site constraints, andcompetition from multiple projects that make an on-site option impractical?► Will an affordable housing product be difficult to integrate into the proposed marketdevelopment because of significant price and product type disparity?► Does the on-site development entity lack the capacity to deliver the proposed affordablehousing on-site?2.Relative Advantages/Disadvantages of the Off-site Proposal► Does the off-site option offer greater feasibility and cost effectiveness than the on-sitealternative, particularly regarding potential local public assistance and when applying theCity's Affordable Housing Financial Assistance Policy.► Does the off-site proposal have location advantages over the on-site alternative, such asproximity to jobs, schools, transportation, services; less impact on other existingdevelopments, etc.?► Does the off-site option offer a development entity with the capacity to deliver the proposedproject?► Does the off-site option satisfy multiple developer obligations that would be difficult to satisfywith multiple projects?Page 2 of 4 Oct. 12, 2021 Item #3 Page 40 of 53 CITY OF CARLSBAD COUNCIL POLICY STATEMENT Policy No. __ 5�7�----­Date Issued August 8. 1995 Effective Date August 8. 1995 Cancellation Date _____ _ Supersedes No. ______ _ General Subject: AFFORDABLE HOUSING Specific Subject: Off-site and Combined Inclusionary Housing Projects Copies to: City Council, City Manager, City Attorney, Departmlnt and Division Heads, Employee Bulletin Boards, Press, File. 3.Advancing Housing Goals► Does the off-site proposal advance and/or support City housing goals and policies asexpressed in the Housing Element, CHAS and Inclusionary Housing Ordinance?It is likely that off-site proposals will involve "mixed" results with the application of the above criteria. The "public interest" finding shall be made when a Combined Project Review Committee made up of the City Manager, City Attorney, Community Development Director, Financial Management Director, Planning Director, Housing & Redevelopment Director, and the Mayor (ex-officio), reaches consensus that a proposal substantially and affirmatively satisfies the above criteria and that this conclusion can be appropriately documented through the use of a Combined/Off-site Project Evaluation Assessment Worksheet. (Attachment 1). PROCEDURE 1.Projects with an inclusionary housing obligation will be processed according to the requirements ofthe Inclusionary Housing Ordinance.2.Project approvals must be conditioned with the option to propose an off-site method (i.e., CombinedProject) of satisfying the inclusionary obligation. A project proposing an off-site option may or maynot also propose an on-site option.3.Prior to final map or issuance of building permits, applicants must submit an Affordable HousingAgreement as described in the Inclusionary Housing Ordinance which specifically describes any off­site proposal.4.Off-site proposals in the form of a draft Affordable Housing Agreement will be reviewed by theCombined Project Review Committee and it will be determined if the necessary findings can be madeby staff.Page 3 of 4 Oct. 12, 2021 Item #3 Page 41 of 53 CITY OF CARLSBAD COUNCIL POLICY STATEMENT Policy No. -�5�7�----­Date Issued August 8, 1995 Effective Date August 8, 1995Cancellation Date _____ _ Supersedes No. ______ _ General Subject: AFFORDABLE HOUSING Specific Subject: Off-site and Combined Inclusionary Housing Projects Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File. 5.Staff's findings and recommendation, including the Combined/Off-site Project AssessmentWorksheet, will accompany the Affordable Housing Agreement to the Housing Commission foraction.6.Prior to final map or issuance of building permits, the proposed Affordable Housing Agreementwill be considered by City Council along with the recommendation of staff and HousingCommission.7.City Council will be the final decision making authority in determining whether an off-siteproposal is in the public interest and permitting this option.Page 4 of 4 Oct. 12, 2021 Item #3 Page 42 of 53 1. 2. 3. 4. 5. 6. OFF-SITE AND COMBINED INCLUSIONARY HOUSING PROJECT ASSESSMENT WORKSHEET BACK�ROUND Applicant Name and Address: Off-site or Combined Project Name: Description of Project with lnclusionary Housing Obligation: Proposed On-site Project Description (if any): Proposed Off-site Project Description: Description of On-site Project Constraints: Attachment "1" to Council Policy Statement No. 57 Oct. 12, 2021 Item #3 Page 43 of 53 1. -cc ASSESSMENT CRITERIA Feasibility of the On-site Proposal. a. Are there significant feasibility issues due to factors such as project size, site constraints, amount and availability of required subsidy, and competition from multiple projects thatmake an on-site option impractical? Brief Narrative: b.Will an affordable housing product be difficult to integrate into the proposed marketdevelopment because of significant price and product type disparity? Brief Narrative: C.Does the on-site development entity havethe capacity to deliver the proposedaffordable housing on-site? Brief Narrative: 2.Relative Advantages/Disadvantages of the Off-site Proposal. a.Does the off-site option offer greater feasibility and cost effectiveness than the on-sitealternative, particularly regarding potential local public assistance? WORKSHEET . . . ASSESSMENT·CONCLUSION . (Check appropriate box) . DOES NOT SUPPORT SUPPORTsOff.SfTE ·. Off..SITE PROPOSAL 2 wr;;oNCLUSIVE PROPOSAL Oct. 12, 2021 Item #3 Page 44 of 53 ''''. ASSESSMENT CRfTERIA Brief Narrative: b.Does the off-site proposal have location C. d. advantages over the on-site alternative, suchas proximity to jobs, schools, transportation,services; less impact on other existingdevelopments, etc.? Brief Narrative: Does the off-site option offer a development entity with the capacity to deliver the proposed project? Brief Narrative: Does the off-site option satisfy multiple developer obligations that would be difficult to satisfy with multiple projects? Brief Narrative: 3.Advancing Housing Goals and Strategv a.Does the off-site proposal advance and/orsupport City housing goals and policiesexpressed in the Housing Element, CHASand lnclusionary Housing Ordinance? Brief Narrative: SUMMARY WORKSHEET .. ASSESSMENT CONCLUSION (Check appropriate box) '· DOES NOT SUPPORT ..SUPPORTS Off'SITE <JFF..SITE PROPOSAL INCONCLUSIVE PROPOSAL DOES NOT SUPPORT SUPPO«TS.OFF-SFTE Off',SITE-PROPOSAL INCONCLUSIVE. PROPOSAL . . ·•·.··. 3 Oct. 12, 2021 Item #3 Page 45 of 53 Date Considered by Review Committee: Review Committee Action: Action: ar Oct. 12, 2021 Item #3 Page 46 of 53 CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: Specific Subject: AFFORDABLE HOUSING Sale of Affordable Housing Credits Page 1 of 4 Policy No. -�5=8 _____ _ Date Issued September 12, 1995 Effective Date Sept. 12. 1995Cancellation Date _____ _ Supersedes No. ______ _ Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File. PURPOSE To establish a policy to be followed by City Council and City staff in selling Affordable Housing Credits, controlled by the City, to developers who will use the Credits to satisfy obligations to provide affordable housing pursuant to the City's Inclusionary Housing Ordinance (CMC Chapter 21.85). BACKGROUND In the development of the 344-unit affordable housing project known as Villa Lorna in the Southwest Quadrant of the City, the developers and the City created a project which may be treated as a Combined Project as defined in the City's Inclusionary Housing Ordinance. With City Council approval, Combined Projects allow "some or all of the inclusionary units associated with one residential project site to be produced and operated at an alternative site". The "alternative site" becomes a Combined Project. Villa Loma was conceived and developed with City participation based on the creation of 184 excess affordable housing units which would be available to satisfy other developers' inclusionary housing obligations thus making it a potential Combined Project. City financial participation in the project was also based on the concept of recovering costs through the sale of the excess units. Furthermore, Villa Lorna was structured to give the City control of these units (Affordable Housing Credits or "Credits") and their sale to potential Combined Project participants. Therefore, it is necessary to establish a policy to guide the City in the effective implementation of these Affordable Housing Credit sales transactions. POLICY Two basic factors will be considered in a Credit sale transaction --the financial aspect, which is the Credit pricing --this determines cost to a purchaser and revenue to the City; and the affordable housing aspect, which is the use of this mechanism to satisfy a developer's obligation under the Inclusionary Housing Ordinance. Based on these considerations, the following will guide Credit sales: EXHIBIT 5 Oct. 12, 2021 Item #3 Page 47 of 53 CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: Specific Subject: AFFORDABLE HOUSING Sale of Affordable Housing Credits Page 2 of 4 Policy No. -�5=8 _____ _ Date Issued __ S=e=p�t�-�1=2_, �1�9�9=5-Effective Date Sept. 12, 1995Cancellation Date _____ _ Supersedes No. ______ _ Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File. ► Price. The Credit price will be determined according to the following formula which divides the localfinancial contribution provided to the Villa Loma project by the total number of Credits available.The local financial contribution consists of all City financial assistance provided to the project ( eitheras loans or expenditures for land including accrued interest on such amounts for the period of timethey are outstanding); and the local developer contribution to the project provided in order to satisfyan affordable housing obligation):Affordable Housing Credit Pricing Formula + Number of AffordableLocal Financial Contribution Housing Credits AvailableCity Contribution $4.2 Million* Developer Contribution (Aviara Land Associates) .9 TOT AL $5.1 Million *To be adjusted with the addition of interest.184 = Unit Price of Affordable Housing Credits (Rounded to nearest $1,000)* $28,000* ► Terms of Purchase and Sale. The commitment to purchase and sell Credits will be accomplishedthrough an Affordable Housing Agreement as required by the Inclusionary Housing Ordinance. ThisAgreement will contain the terms of the Credit sale and will acknowledge the satisfaction of anaffordable housing obligation through participation in a Combined Project (Villa Loma).Oct. 12, 2021 Item #3 Page 48 of 53 t CITY OF CARLSBAD COUNCIL POLICY STATEMENT Page 3 of 4 Policy No. ------"'5-"-8 _____ _ Date Issued Sept. 12. 1995Effective Date Sept. 12. 1995Cancellation Date _____ _ Supersedes No. ______ _ General Subject: AFFORDABLE HOUSING Specific Subject: Sale of Affordable Housing Credits Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File. ► Selection of Purchasers. The following procedure will apply to the selection of purchasers andallocation of Credits: 1.Project Review. Staff, through the Combined Project Review Committee (see Council PolicyNo. 57) will review all applications and approved projects with inclusionary requirements anddetermine which projects will be recommended to satisfy their obligations through thepurchase of Credits. If the number of acceptable projects have affordable housingrequirements which exceed the available number of Credits, projects will be ranked andallocated Credits accordingly. Projects will be reviewed and ranked using the followingcriteria:a)The immediacy of the need to satisfy an affordable housing obligation with respect tothe market rate project that is generating the obligation.b)The readiness and capacity of the developer to enter into an Affordable HousingAgreement and perform under its terms.c)The acceptability of the Combined Project as an off-site option in lieu of thesatisfaction of the affordable housing obligation on-site with respect to the project thatis generating the obligation (see Council Policy No. 57).2.Electing to Purchase Credits. Developers will be notified of staffs recommendation to permitthe purchase of Credits and given the opportunity to accept or reject this option.3.Reservation of Credits. Developers wishing to use the option of purchasing Credits must havetheir projects approved with conditions allowing this option. In addition to PlanningCommission approval, the recommendation of the Housing Commission will be required forthe Credit purchase option of satisfying the Inclusionary Housing Obligation. When a projectis approved (e.g., tentative map) with the Credit purchase condition, a reservation of theCredits is made for the project.Oct. 12, 2021 Item #3 Page 49 of 53 CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: Specific Subject: AFFORDABLE HOUSING Sale of Affordable Housing Credits Page 4 of 4 Policy No. -�5"'8'--------­Date Issued Sept. 12, 1995 Effective Date Sept. 12, 1995 Cancellation Date ------Supersedes No. ______ _ Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File. 4.Affordable Housing Agreement. Within sixty (60) days of the approval of the Credit purchasecondition, the developer must deliver to the Housing and Redevelopment Director a signedAffordable Housing Agreement in the form prescribed by the City with a non-refundabledeposit in an amount equal to 10% of the total Credit sale price. The Affordable HousingAgreement will be scheduled for City Council consideration and, if and when approved, willbe executed by the City. The Affordable Housing Agreement will require payment of thebalance of the purchase price upon execution and prior to final map or issuance of a buildingpermit. 5.Failure of Developer to Perform or Denial of Purchase Option. If the developer is unable toperform as required, or is denied the option of purchasing Credits, the Credits will be madeavailable to another project(s), subject to this process. 6.This policy is subject to all other requirements of the Inclusionary Housing Ordinance. Oct. 12, 2021 Item #3 Page 50 of 53 City Council Policy Statement No. 57 criteria and analysis Ocean View Point project affordable housing credits request Policy 57 criteria Analysis Feasibility issues on site The following issues impact the on-site feasibility: Size - the project allows for 13 large-lot, single-family homes, making it difficult to absorb the costs of two affordable rate homes. Environmental constraints - the environmental constraints call for ongoing mitigation and the loss of buildable land, making the cost of the project more expensive, including high homeowner’s association fees. Design and product type - The lots are large which translate to large single-family homes. Absorbing two low-income units on site is not financially feasible. Difficult to integrate Design and product type - The lots are large which translate to large single-family homes. Absorbing two low-income units on site is not financially feasible based on disparity of product type. Feasibility/cost effectiveness The unique site characteristics make two on-site affordable units infeasible. The funds received by the city from the purchase of two affordable housing credits will allow the city to invest in more meaningful affordable housing opportunities. Location advantages The location is not in close proximity to services that support low- income households. The funds received by the city from the purchase of two affordable housing credits will allow the city to invest in more appropriately located affordable housing opportunities. Capacity to deliver On site units would not have services provided. The funds received by the city from the purchase of two affordable housing credits will allow the city to invest in affordable housing opportunities that provide on- site services for residents. Advance housing goals The funds received by the city from the purchase of two affordable housing credits will allow the city to recoup the costs paid by the city for the existing Tavarua Apartment units and allow the city to re-invest dollars into additional affordable housing opportunities. Oct. 12, 2021 Item #3 Page 51 of 53 RESOLUTION NO. 2021-006. A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA RECOMMENDING THAT THE CITY COUNCIL APPROVE A REQUEST BY RINCON HOMES TO PURCHASE TWO AFFORDABLE HOUSING CREDITS IN THE TAVARUA APARTMENTS COMBINED HOUSING PROJECT IN ORDER TO SATISFY THE AFFORDABLE HOUSING OBLIGATION OF ITS HOUSING DEVELOPMENT UNDER THE CITY'S INCLUSIONARY HOUSING ORDINANCE WHEREAS, Rincon Homes is under contract to build a thirteen-home subdivision, known as Ocean View Pointe, and is conditioned to provide two units affordable units affordable to low income households; and WHEREAS, the City Council approved said development on Aug. 20, 2019; and WHEREAS, the home builder is seeking to satisfy the inclusionary housing requirement through the purchase of two affordable housing credits as opposed to building on site: and WHEREAS, credits in the northwest quadrant are available to purchase for this project; and WHEREAS, the city’s Affordable Housing Policy Team reviewed the request on July 28, 2021 to discuss the request and consider options, prior to presenting it to the Housing Commission for their consideration and recommendation to the City Council; and WHEREAS, the Housing Commission makes recommendations to the City Council for projects that alternatively meet affordable requirements set forth in 21.85 of the Carlsbad Municipal Code; and WHEREAS, the Housing Commission considered the request, staff evaluation and recommendation, and the testimony of all persons desiring to be heard on the matter at a special meeting on Sept. 9, 2021. NOW, THEREFORE, BE IT RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the request from Rincon Homes to alternatively satisfy the inclusionary housing requirement is consistent with the goals, objectives and programs of the City of Carlsbad's Housing Element, and City Council Policies 57 and 58 as currently adopted. 3. That, based on information provided in the Housing Commission staff report and considering testimony of all persons desiring to be heard at the Sept. 9, 2021 public meeting, the Housing Commission hereby recommends that the City Council approve Oct. 12, 2021 Item #3 Page 52 of 53 the assistance from the Rincon Homes to purchase two affordable housing credits to satisfy their inclusionary housing requirement. 4. That the Housing Commission recommend that the City Council consider amendments to policies implementing Chapter 21.85 of the Carlsbad Municipal Code to address market rate projects’ varying ability to contribute to the provision of affordable housing. PASSED, APPROVED AND ADOPTED at a Meeting of the Housing Commission of the City of Carlsbad on the 9th day of September 2021, by the following vote, to wit: AYES: COLE, EVANS AND NGUYEN-CLEARY NAYS: MANZANO ABSENT: CORTES-TORRES JOHN NGUYEN-CLEARY, CHAIRPERSON CARLSBAD HOUSING COMMISSION ATTEST: MANDY MILLS Director of Housing & Homeless Services Oct. 12, 2021 Item #3 Page 53 of 53