HomeMy WebLinkAbout1997-08-14; Housing Commission; ; MAR VISTA AT LA COSTAThe City of Carlsbad Housing & Redei--e/opment Department
A REPORT TO THE HOLJSIN6 COMMISSION
DATE:
SUBJECT:
AUGUST 14, 1997
Staff Craig D. Ruiz
Management Analyst
Item No. 1
MAR VISTA AT LA COSTA -APPLICATION TO PURCHASE
AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA
HOUSING PROJECT
I. RECOMMENDATION
That the Housing Commission ADOPT Resolution No. 97-009, recommending that the City
Council APPROVE a request by TRC Development Corporation to purchase 2.55 Affordable
Housing Credits in the Villa Loma housing project in order to satisfy the affordable housing
obligation of the Mar Vista at La Costa project under the City's Inclusionary Housing
Ordinance.
II. BACKGROUND
TRC Development is currently processing an application for tentative map (CT 97-08) to
develop 17 single family homes on approximately 2.5 acres. The project is designed around three
cull-de-sac streets and includes home sites with a minimum parcel of 3,500 square feet. The
development of 17 homes will require the developer to provide 2.55 units of housing affordable
to lower income households as required by the City's Inclusionary Housing Ordinance.
It is the applicant's position that there are significant constraints on the site which would make it
difficult to provide the affordable housing units on-site. Therefore, the applicant is requesting to
purchase Affordable Housing Credits ("credits") in the Villa Loma project in lieu of on-site
construction. The City's Inclusionary Housing Ordinance permits off-site satisfaction of an
inclusionary requirement through participation in a Combined Inclusionary Housing Project
("Combined Project") if the City Council determines that it is in the public interest. Purchase of
credits in the Villa Loma project constitutes participation in a Combined Project.
Policies Regarding Off-Site Projects and Purchase of Affordable Housing Credits
The City Council has adopted two policies which deal with off-site or Combined Projects and the
sale of Affordable Housing Credits. Council Policy 57 was developed to
MAR VISTA AT LA COST A
AUGUST 14, 1997
PAGE2
establish the criteria to 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. This policy requires review of the request and an action
recommendation from the Combined Project Review Committee consisting of the
Housing and Redevelopment Director, City Manager, Financial Management Director,
Community Development Director, Planning Director and City Attorney. The Mayor is
an ex-officio member of the Committee. This Committee has reviewed the subject
request and is recommending approval.
Council Policy 58 was established to determine the price of credits and the mechanism to
satisfy a developers obligation under the City's Inclusionary Housing Ordinance. Based
upon this policy, the current cost to purchase a housing credit in the Villa Loma project is
$32,220 per unit. The Mar Vista Project, therefore, will be required to pay to the City of
Carlsbad a total of $82,161, if approved.
RECOMMENDATION
The Council Policies require staff to evaluate the request for off-site satisfaction of the
inclusionary housing obligation and the purchase of credits based upon three primary
criteria. The criteria includes: 1) feasibility of on-site proposal; 2) relative
advantages/disadvantages of an off-site proposal; and 3) the advancement of housing
goals and strategies. The following is a summary of staffs analysis of the criteria for the
project.
Feasibility of On-site Proposal
• The small scale of the developable area, and the physical constraints caused
by the large slope areas effectively precludes all types of on-site affordable
housing projects. Also, the small scale of the affordable housing project
makes the development economically unfeasible due the significant financial
subsidy which would be required for the project. Further, the small scale of
the affordable housing project makes it unlikely that the project will generate
interest from funding sources.
Relative Advantages/Disadvantages of an Off-site Proposal
• The participation in the off-site project will allow the City to recover the costs
associated with the development of excess affordable housing units.
• The Villa Loma project has locational advantages over the on-site project in
terms of direct access to jobs, public transportation, schools, parks as well as
other amenities and services due to the being located directly on a major
thoroughfare.
MAR VISTA AT LA COSTA
AUGUST 14, 1997
PAGE3
Advancing Housing Goals and Strategies
• The recovery of the City's investment in the Villa Loma Project will provide
for additional financial resources which are needed to further affordable
housing development in the community.
Based upon the analysis of the above criteria, 1t 1s staffs opm1on that adequate
justification has been provided to make the finding that the off-site satisfaction of the
inclusionary housing requirement is in the public interest. Therefore, staff is
recommending that the request to purchase credits be recommended for approval by the
Housing Commission.
EXHIBITS
1. Housing Commission Resolution No. 97-009
2. Applicant Request to Purchase Credits
3. Draft Affordable Housing Agreement
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HOUSING COMMISSION RESOLUTION NO. 97-009
A RESOLUTION OF THE HOUSING COMMISSION
OF THE CITY OF CARLSBAD, CALIFORNIA, TO
RECOMMEND THAT THE CITY COUNCIL
APPROVE A REQUEST BY TRC DEVELOPMENT
CORPORATION TO PURCHASE 2.55
AFFORDABLE HOUSING CREDITS IN THE VILLA
LOMA HOUSING PROJECT IN ORDER TO
SATISFY THE AFFORDABLE HOUSING
OBLIGATION OF THE MAR VISTA AT LA COSTA
PROJECT UNDER THE CITY'S INCLUSIONARY
HOUSING ORDINANCE.
APPLICANT: TRC DEVELOPMENT
CASE NO: CT 97-08/PUD 07-05
WHEREAS, TRC Development has made application for Tentative Map CT 97-
12 08 and Planned Unit Development PUD 97-05 with the City of Carlsbad for the
13 development of a 17 unit residential subdivision;
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WHEREAS, the subdivision of land for 17 residential units requires the developer
to provide 2.55 units of housing affordable to lower income households as required by
Carlsbad Municipal Code Section 21.85 of the City's lnclusionary Housing Ordinance;
WHEREAS, the Villa Loma housing project 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 obligation;
WHEREAS, TRC Development has requested to purchase Affordable Housing
Credits as a means to satisfy their affordable housing obligations as permitted by
Carlsbad Municipal Code Section 21.85 of the City's Inclusionary Housing Ordinance
and consistent with City Council Policies 57 and 58;
WHEREAS, the request to purchase Affordable Housing Credits has been
submitted to the City of Carlsbad's Housing Commission for review and consideration;
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WHEREAS, said Housing Commission did, on the 14th day of August, 1997, hold
a public meeting to consider said request for the purchase of Affordable Housing Credits
by TRC Development;
WHEREAS, at said public meeting, upon hearing and considering all testimony,
if any, of all persons desiring to be heard, said Commission considered all factors relating
to the application and request to purchase Affordable Housing Credits;
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission
of the City of Carlsbad, California, as follows:
1 . The above recitations are true and correct.
2. The project is consistent with the goals and objectives of the City of
Carlsbad's Housing Element and Comprehensive Housing Affordability
Strategy, the Inclusionary Housing Ordinance, and the Carlsbad General Plan.
3. Based upon the analysis contained within the Housing Commission Staff
Report, the Housing Commission finds that the off-site satisfaction of the
inclusionary housing requirement is in the public interest.
4. That based on the information provided within the Housing Commission Staff
Report and testimony presented during the public meeting of the Housing
Commission on August 14, 1997 the Commission recommends that the City
Council APPROVE a request by TRC Development Corporation to purchase
2.55 affordable housing credits in the Villa Loma housing project in order to
satisfy the affordable housing obligation of the Mar Vista at La Costa project
under the city's inclusionary housing ordinance.
5. That the Housing Commission recommends that the City Manager or his
designee is authorized to execute the Affordable Housing Agreement in
substantially the form presented in the Exhibit 3 for the Housing Commission
Staff Report and to execute such other documents, or take other actions as may
be necessary or appropriate to assist the developer in acquiring the Affordable
Housing Credits.
28 HC RESO. NO. 97-009
PAGE2
General Conditions:
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2 1. Within sixty (60) days of the City Council approval of Developer's request to
purchase Affordable Housing Credits, and prior to receiving Final Map approval,
Developer shall execute this Agreement and pay to the City the sum of$ 76,755 as its
payment for two and fifty-five one-hundredths (2.55) Credits. Execution of this
Agreement by the parties and payment of the sum of$ 76,755 to the City by the
Developer shall fully satisfy the Developer's affordable housing obligation pursuant
to Chapter 21.85 of the Carlsbad Municipal Code and the above-referenced conditions
of approval. Upon execution of this Agreement and receipt of the above payment
from developer, City will record an appropriate release of the developer's obligation.
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8 PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing
9 Commission of the City of Carlsbad, California, held on the 14th day of August, 1997, by
10 the following vote, to wit:
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AYES:
NOES:
ABSENT:
ABSTAIN:
Vice-Chairperson Wellman, Commissioners: Calverley, Escobedo,
Latas, Rose, Scarpelli & Walker.
None.
Chairperson Schlehuber & Commissioner Noble.
None.
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CARLSBAD HOUSING COMMISSION
Ll l,l;o ~
DEBBIE FOUNTAIN
Acting Housing and Redevelopment Director
BC RESO. NO. 97-009
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-Avalon Hoines
July 16, 1997
Evan Becker
Director, Housing and Redevelopment
CITY OF CARLSBAD
2965 Roosevelt, Suite B
Carlsbad, CA. 92008
EXHIBIT 2
Via Facsimile and U.S. :Mail
(760) 720-2037
SUBJECT: MAR.VISTA AT LA COSTA PHASE I & II-AFFORDABLE HOUSING REQUIRE1\4ENTS
Tentative Tract 97-08 (17 lots) and Tentative Parcel Map 97-05 (4 lots)
North West corner of El Fuerte Street and Unicornio Ave.
Dear Evan:
To meet the City of Carlsbad's inclusionary housing requirements of 2.55 units on Marvis ta I, TM
97-08 I have enclosed a completed OCIHPA worksheet to provide evidence of meeting the criteria
to apply for and obtain affordable housing credits pursuant to Policy 57 & 58 of the City's
Housing Ordinance (CMC Chapter 21.85). This policy allows housing tracts in the Southwest
Quadrant of the city to apply for and purchase affordable housing credits from the 344 unit
affordable housing project known as Villa Loma.
It is my understanding that Marvista II, Tentative Parcel map 97-05 consisting of 4 units qualifies
to pay in-lieu fees for the 4 units as the tentative parcel map has less than 7 units. The City of
Carlsbad's planning department is processing Marvista I & II as two different projects and their
inclusionary housing obligations should be considered separately.
The Planing Department cannot complete there review of this project until there is a consensus
that the above project qualifies for the purchase of affordable housing credits. Please inform me
as quickly as possible on the status of credits available for purchase for these projects and the time
required to process and approve this application. To assist you I have included 8 ½ X 11 copies
of the tentative maps.
26440 La Alameda, Suite 370 Mission Viejo, CA. 92691 -Tel: (714) 582-4111 -Fax: (714) 582-4115
Evan Becker
July 16, 1997
. Page 2
I you have any questions or need additional information do hesitate to call me. Please sign the
enclosed copy of this letter as a receipt that you have received this letter. I have enclosed a self
addressed envelope with postage to expedite this process.
Thank you for your diligent assistance in this matter.
Sincerely,
A val on Homes
Scott B. Redsun
President
cc: Debbie Fountain
Dennis Turner -Planning Department
Received by: Date
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OFF-SITE AND COMBINED INCLUSIONARY HOUSING PROJECT
ASSESSMENT WORKSHEET
l. Applicant Name and Address:
BACKGROU!v1J
TRC Development Corporation
Dba: A val on Homes
26440 La Alameda, Suite 370
Mission Viejo, CA 92691
(714) 582-4 l ll
2. Off-site or Combined Project Name:
344 unit affordable housing project known as Villa Loma
3. Description of Project with lnclusionary Housing Obligation:
Marvista I & II is a small infill project located at the northwest comer of El Fuerte Street and
Unicomio A venue. The project consists of 5 previously graded lots totaling approximately 3. l 3
acres. The project will provide 17 units and 4 units respectively of single family housing ranging
in size from 1,800 to 2,050 square feet, with a minimum lot size of 3,500 square feet. There are
four small cul-de-sacs with 4 to 6 unit in each cul-de-sac.
4. Proposed On-site Project Description (if any): None
5. Proposed Off-site Project Description:
344 unit affordable housing project known as Villa Loma. Marvista at La Costa I will be required
to purchase 2.55 credits and Marvista at La Costa II qualifies for in-lieu fees as the tentative parcel
map has less than 7 units.
6. Description of On~site Project Constraints:
The project of 3+ acres offers very little opportunity to provide on-site affordable housing. The
project is surrounded by existing housing and fully developed street system. There are 4 private
cul-de-sacs with 4 to 6 units in each one. A private park will be provided to the residences of
Marvista I & IL A homeowners association will maintain the private park, slopes and front yards.
Attachment "l" to Council Pilicy Statement No. 57
PRQjECT DESCRIPTION/EXPLANATiON
PROJECT NAME: Marvista
APPLICANT NAME: TRC Development Corporation
Please descr_ibe fully the proposed project. Include any details necessary to adequately
explain the scope and/or operation of the proposed project. You may also include any
background information and supporting statements regarding the reasons for, or
appropriateness of, the application. Use an addendum sheet if necessary.
Description/Explanation:
Located in the La Costa region of Carlsbad, Marvista will be a small enclave of 17 single family
homes, with a minium lot size of 3,500 square feet. Marvista is designed around 3 small cull-du-
sac streets, 32 feet in width. There will be no more than 6 homes on any one cull-du-sac offering
their residence a quite friendly atmosphere. Marvista will offer its residences a common area park
featuring a shuffle board court and a picnic area for both active and passive usage. In addition,
residences will be provided front yard landscaping which will be maintained by the Marvista
Homeowners Association. This Homeowners will also be responsible for the maintenance of
common area landscaping, slope landscaping and private streets.
Marvista will offer two floor plans ranging is size from 1,870 to 2,020 square feet, with each floor
plan offering up to 4 bedrooms and 2.5 baths. We have developed 3 distinctive architectural styles
for Marvista. Both floor plans wil! offer a California Cottage elevation which is accented by front
porches, wood siding and window shutters. In addition to the California Cottage style, Plan one
will offer an elevation reflecting the Beach Bungalow style of architecture which is denoted by
shingle siding and ro.ck accents. The second elevation for Plan 2 is accented by shutters and rock
accents reflecting the California Spanish style of architecture.
Marvista will also include 4 additional homes which is being developed on a lot not contiguous to
this project. They are separated by one lot, these 4 units will be offer the same amenities as the 17
units.
Currently, the land to be developed' consists of four .6 acre lots which have previously been
graded in super pad condition. The surrounding area consists of a wide variety of residential
developments which include condominiums, townhomes, small lot single family homes and single
family homes on large lots. Marvista will blend in will the existing community and offer the
residences of Carlsbad uniquely designed moderately priced single family homes.
Rev. 4/91 ProjDesc.frm
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EXHIBIT 3
AFFORDABLE HOUSING AGREEMENT
This AFFORDABLE HOUSING MITIGATION AGREEMENT, entered into
this _____ day of _________ , 19 ___ , by and between the
CITY OF CARLSBAD, a Municipal Corporation (hereinafter referred
to as the "City"), and TRC Development Corporation, (hereinafter
ref erred to as the "Developer") , is made with reference to the
following:
A. Developer is the owner and developer of property
generally located at the northwest corner of Unicornio Street and
El Fuerte Street and Local Facilities Management Zone 6 in the"
City of Carlsbad, in the County of San Diego, California
(hereinafter referred to as the "subject property").. The
subject property is more particularly described in Exhibit "A",
which is attached hereto and is incorporated herein by this
reference.
B. Developer wishes to construct 17 single family homes
upon the subject property. The Planning Commission has approved
Carlsbad Tract/Parcel Map CT 97-08,and Planned Development 97-05.
The Planning Commission issued these approvals subject to
conditions of discretionary approval.
C. The Developer was conditioned with the ability to
satisfy its affordable housing obligation in accordance with
Chapter 21. 85 of the Carlsbad Municipal Code by purchasing two
and fifty-£ i ve one-hundredths ( 2. 55) Affordable Housing Credi ts
(Credits) in the Villa Loma affordable housing project.
D. Pursuant to the above-referenced conditions of
approval, and in accordance with City Council Policies 57 and 58,
the Developer has received approval from the City Council by
Resolution No. 97-dated , 1997, to purchase Credits ---
in the off-site project known as Villa Loma. The City controls
and has available these Credi ts in Villa Lorna and the project
meets the requirements of a Combined Inclusionary Housing Project
as defined in Chapter 21. 85 of the Carlsbad Municipal Code.
Purchasing Credits according to the terms of this Agreement
satisfies the developer's affordable housing obligation in
accordance with Chapter 21.85 of the Carlsbad Municipal Code and
the developer's conditions of approval.
NOW, THEREFORE, it is mutually agreed by and between the·
undersigned parties as follows:
1. SATISFACTION OF AFFORDABLE HOUSING OBLIGATION AND
CONDITIONS OF TENTATIVE MAP APPROVAL THROUGH THE
PURCHASE OF AFFORDABLE HOUSING CREDITS
Within sixty (60) days of the City Council approval of
Developer's request to purchase Affordable Housing Credi ts, and
prior to receiving Final Map approval, Developer shall execute
this Agreement and pay to the City the sum of$ 82,161 as its
payment for two and fifty-five one-hundredths ( 2. 55) Credi ts.
Execution of this Agreement by the parties and payment of the sum
of$ 82,161 to the City by the Developer shall fully satisfy the
Developer's affordable housing obligation pursuant to Chapter
21. 85 of the Carlsbad Municipal Code and the above-referenced
conditions of approval. Upon execution of this Agreement and
receipt of the above payment from developer, City will record an
appropriate release of the developer's obligation.
Failure of the Developer to perform according to the
terms of this Agreement will be a failure to satisfy the
Tentative Map Conditions with respect to the subject property and
Chapter 21.85 of the Carlsbad Municipal Code; and the City may
exercise any and all remedies available to it with respect to the
Developer's failure to satisfy the Tentative Map Conditions
including but not limited to withholding the issue of building
permits for the subject property.
2. CITY ACKNOWLEDGES DEVELOPER PAYMENT.
By executing this Agreement, City acknowledges receipt
of Developer's payment under the terms of this Agreement.
3. DEVELOPER WAIVES RIGHTS TO OTHER METHODS OF SATISFYING
AFFORDABLE HOUSING OBLIGATION.
By executing this Agreement, developer waives any and
all rights to other means of satisfying the affordable housing
obligations required by Chapter 21.85 of the Carlsbad Municipal
Code and the conditions of approval.
4. HOLD HARMLESS.
The undersigned developer (hereinafter referred to as
"Indemnitor"), for and in consideration of the City of Carlsbad's
approval of this Agreement, and for other good and valuable
consideration, the receipt and sufficiency whereof is hereby
acknowledged by Indemnitor, does hereby covenant, undertake and
agree that it will indemnify and hold harmless (without limit as
to amount) the City of Carlsbad 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 expense) sustained or incurred because of or by
reason of any and all claims, demands, suits, actions, judgements
and executions for damages of any and every kind and by whomever
and whenever made or obtained, allegedly caused by, arising out
of or relating in any manner to this Agreement, and to protect
and defend Indemnitees, and any of them with respect thereto.
5. NOTICES.
All notices required pursuant to this Agreement shall be in
writing and may be given by personal delivery or by registered or
certified mail, return receipt requested, to the party to receive
such notice at the addresses set forth below:
TO THE CITY OF CARLSBAD:
City of Carlsbad
Housing and Redevelopment Department
Attn: Housing and Redevelopment Director
2965 Roosevelt Street, Suite B
Carlsbad, CA 92008-2389
TO THE DEVELOPER:
TRC Development Corporation
26440 La Alemeda, Suite 370
Mission Viejo, California 92691
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. INTEGRATED 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
when the City has received the payment described in Paragraph 1,
except as to the indemnity and hold harmless provisions setforth
in Paragraph 4.
8. SEVERABILITY.
In the event any limitation, condition, restriction,:
covenant, or provision contained in this Agreement is to be held
invalid, void or unenforceable by any court of competent
jurisdiction, the remaining portions of this Agreement shall
nevertheless, be and remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed as of the day and year first above
written.
DEVELOPER
TRC De~elopment Corporation
By:
Signature
Print Name
Title:
CITY OF CARLSBAD
A Municipal Corporation
By:
MARTIN ORENYAK
Community Development
A~PROVED AS TO FORM:
RONALD R. BALL
City Attorney
Dir
EXHIBIT "A"
PROPERTY DESCRIPTION
Lot 518, 519, 520, 521 of La Costa Meadows Unit No. 3
in the City of Carlsbad, County of San Diego, State of
California, according to map thereof No. 7076, filed in
the office of the County Recorder of San Diego, October
6, 1971.
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CITY OF CARLSBAD
Development Coordinating Committee
September 8, 1997
Changes to Conditions of Approval for
CT 97-08/PUD 97-05
MARVISTA AT LA COSTA
To Planning Commission Resolution 4175, ADD Conditions (and adjust existing numbers
accordingly):
15. Due to the length of the driveway aprons associated with Lots 3, 4, 6, 10, 14, and 15, the
CC&Rs shall prohibit the parking of all vehicles on these driveway aprons. This
limitation does not pertain to the remaining lots of the project, where driveway aprons
equal or exceed 20 feet in length.
23. Prior to issuance of building permits, the Developer shall record an A vigation Easement
for the property to the County of San Diego and file a copy of the recorded document
with the Planning Director.
To Planning Commission Resolution 4175, MODIFY Condition (add boldface):
12. The Developer shall establish a homeowner's association and corresponding covenants,
conditions and restrictions. Said CC&Rs shall be submitted to and approved by the
Planning Director prior to final parcel map approval. Prior to issuance of a building
permit the Developer shall provide the Planning Department with a recorded copy of the
official CC&Rs that have been approved by the Department of Real Estate and the
Planning Director. • Said CC&Rs may not be amended without the amendment being
submitted to and approved by both the Planning Director and the City Attorney. At
a minimum, the CC&Rs shall contain the following provisions: [continue balance of
condition unchanged]
35. If a soils engineer does not approve, in writing, the proposed lot drainage, rRain
gutters must be provided to convey roof drainage to an approved drainage course or
street to the satisfaction of the City Engineer.
To Planning Commission Resolution 4175, DELETE Conditions (and adjust existing
numbers accordingly):
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19. Prior to occupancy of any units, the Developer shall construct a directory sign at the
entrance to the project. The design of this sign shall be approved by the Planning
Director.
21. Prior fo 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 Planning Director and the City Attorney
(see Noise Form #2 on file in the Planning Department).
58. The Developer shall give all notices of the condominium conversion to all tenants as
required by the Subdivision Map Act and the Carlsbad Municipal Code.
-:D-1. ~ • --4 .°"\ ~
Dennis A. Turner
Principal Planner
Distribution:
Scott Redsun
Ken Quon
File
Secretary