Loading...
HomeMy WebLinkAbout2017-09-12; City Council; Resolution 2017-175RESOLUTION NO. 2017-175 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN AFFORDABLE HOUSING & DENSITY BONUS AGREEMENT BETWEEN THE CITY OF CARLSBAD AND CARLSBAD VILLAGE PARTNERS FOR THE CARLSBAD VILLAGE LOFTS DEVELOPMENT, AND AUTHORIZING THE HOUSING & NEIGHBORHOOD SERVICES DIRECTOR TO EXECUTE IT. EXHIBIT 1 WHEREAS, on February 28, 2017, the City Council approved a Major Review Permit (RP 16-05) and Minor Subdivision Map (MS 16-06) to allow for the demolition of an existing restaurant, and construction of a mixed use building, including ground floor retail and office uses, and 106 residential apartments, 16 of which shall be affordable to low income households, at 1044 Carlsbad Village Drive known as Carlsbad Village Lofts; and WHEREAS, pursuant to Chapter 21.86 of the Carlsbad Municipal Code, the project applicant requested a 35 percent density bonus and a zoning incentive (allowing for mixed use, including residential) which required the designation of a minimum of 20 percent of the base rental units with rents restricted at 60 percent of the San Diego County Area Median, adjusted for assumed household size; and WHEREAS, the City Council of the City of Carlsbad, California has determined that pursuant to Section 21.85.140 of Carlsbad Municipal Code Chapter 21.85 and Section 21.86.130 of Carlsbad Municipal Code Chapter 21.86 a combined Affordable Housing & Density Bonus Agreement is required between the City of Carlsbad and Carlsbad Village Partners to ensure that density bonus and inclusionary housing requirements are satisfied for the approved Carlsbad Village Lofts development; and WHEREAS, City staff has drafted and Carlsbad Village Partners has executed a combined Affordable Housing & Density Bonus Agreement providing for the required 20 percent low income affordable rental units on site which will be income and rent restricted for low income households; and WHEREAS, Carlsbad Village Partners has now submitted the executed combined Affordable Housing & Density Bonus Agreement for approval by the City Council. EXHIBIT 1 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the City Council does hereby approve the combined Affordable Housing & Density Bonus Agreement between the City of Carlsbad and Carlsbad Village Partners for the Carlsbad Village Lofts development as submitted to the City Council for approval on the date set forth below (Attachment 1). 3. That the City Council does hereby authorize the Housing and Neighborhood Services Director to execute the combined Affordable Housing & Density Bonus Agreement between the City of Carlsbad and Carlsbad Village Partners as submitted to the City Council for approval on the date set forth below, and to process the Agreement for recordation against the property for the Carlsbad Village Lofts development upon receipt of the final legal description for said property. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 12th day of September, 2017, by the following vote, to wit: AYES: NOES: ABSENT: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard. None. None. (SEAL) 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 DOC# 2017-0446115 11111111111111111111111111111111111111111111111 IIIII IIIII IIIII IIII IIII Sep 28, 2017 11 :31 AM OFFICIAL RECORDS Ernest J. Dronen burg, Jr., SAN DIEGO COUNTY RECORDER FEES $39 00 PAGES 9 (Space above for Recorder's Use) AFFORDABLE HOUSING & DENSITY BONUS AGREEMENT IMPOSING RESTRICTIONS ON REAL PROPERTY This AFFORDABLE HOUSING AND DENSITY BONUS AGREEMENT IMPOSING RESTRI TIONS ON REAL PROPERTY ("Agreement"), entered into this (~ [)th day of --=--c--.,._µ..,,__,_,__.....__, 2017, by and between the CITY OF CARLSBAD, a municipal corporation (" ity"), and CARLSBAD VILLAGE PARTNERS, LP, a California limited partnership ("Developer") is made with reference to the following: A. Developer is the owner of certain real property in the City of Carlsbad, in the County of San Diego, California ("Property") described in Exhibit "A", which is attached hereto and incorporated herein by this reference. B. Developer currently intends to construct a total of 106 residential apartment units on the Property ("Development"). The City has approved the Major Review Perm it (RP 16-05) and Minor Subdivision Permit (MS 16-06) for the Development. The City issued the approval subject to certain conditions of approval ("Conditions of Approval"), including a condition requiring fifteen (15%) percent of the units in the Development to be affordable housing as required by the City's lnclusionary Housing Ordinance, Carlsbad Municipal Code ("CMC") Chapter 21.85 and subject to Residential Density Bonus and Incentives and Concessions requirements set forth within CMC Chapter 21.86. C. Developer requested and received from City a thirty-five percent (35%) density bonus and incentives or concessions (approval of mixed used development to include residential), which is the maximum density bonus that may be received and approved for providing 20% of the development for housing affordable to lower income households, and is required by Section 21.86.020(A)(8) of CMC Chapter 21.86 to enter into this legally binding agreement to ensure that the density bonus requirements of CMC Chapter 21.86 are satisfied. D. Developer is required by the Conditions of Approval to enter into an Affordable Housing and Density Bonus Agreement as required and with the content specified by the City's Inclusionary Housing Ordinance (CMC Chapter 21.85) and in the Residential Density Bonus Ordinance (CMC Chapter 21.86). This Agreement is that Affordable Housing and Density Bonus Agreement pursuant to Section 21.85.140 ofCMC Chapter 21.85 and Section 21.86.130 CA 2/5/2013 of CMC Chapter 21.86, and shall be executed and recorded prior to the approval of any final map for the Property or the first building permit, whichever may occur first. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. Satisfaction of Affordable Housing and Density Bonus Obligation and Conditions of Approval. In order to satisfy the Conditions of Approval of Major Review Permit 16-05 and Minor Subdivision MS 16-06, and the requirements of the City's Inclusionary Housing Ordinance (CMC Chapter 21.85) and Residential Density Bonus and Incentives or Concessions (CMC Chapter 21.86), a total of sixteen (16) units of the Development shall be constructed for the purpose of providing housing to be affordable to lower-income households according to the schedule and terms contained herein ("Affordable Units"). A total of ninety (90) market rate units and at least sixteen (16) Affordable Units may be constructed with approval of this Agreement. The development was approved by the Carlsbad City Council with a financial incentive to allow for a mixed use development; a mixed-use product type is not a permitted use within the existing Village Master Plan and Design Manual. This financial incentive is appropriate because it results in cost reductions to the Development which enables the provision of affordable housing for low income households. 2. Terms Governing Provision of Affordable and Density Bonus Multi- Family Units. Provision of the Affordable Multi-family Units shall be governed by the following terms: 2.1 Size and Bedroom Count. The developer shall build 90 market rate units providing a mix of loft, 1, 2 and 3 bedroom rental apartments ranging in size from 714 square feet to 1,373 square feet. Affordable Units in the Development shall include 16 units and shall provide for 9 loft units ranging in size from 609 to 686 square feet, 5 one bedroom lofts ranging in size from 620 to 771 square feet, and 2 three bedroom units at 1,133 square feet. The affordable units shall be disbursed throughout the rental development. 2.2 Affordability Requirements. The Affordable Units (both density bonus and inclusionary units) shall be restricted to occupancy by households with incomes not exceeding 80% of the median income for San Diego County, adjusted for actual household size. Monthly rents of the Affordable Units shall not exceed 1/12 of 30% of 60% of the median household income for San Diego County, adjusted for assumed household size appropriate for the unit pursuant to the Regulatory Agreement. For purposes of this Agreement, "Rent" shall include a utility allowance as established and adopted by the City of Carlsbad Housing Authority, as well as all required monthly payments made by the tenant to the lessor in connection with use and occupancy of a housing unit and land and facilities associated therewith, including any separately charged fees, utility charges, or service charges assessed by the lessor and payable by the tenant (but not including fees or charges resulting from any default by the tenant or damage caused by the tenant, or fees or charges paid by the tenant to third party utilities or other providers). Median income figures shall be those published annually by the United States Department of Housing and Urban Development. Assumed household size figures shall be provided by the Developer and approved by the City of Carlsbad Housing and Neighborhood 2 CA 5/12/201 1 Services Department. With respect to each Affordable Unit, the affordability requirements of this Section 2.2 shall continue for 55 years from the date of issuance of a Certificate of Occupancy by the City for such unit. The affordability requirements of this Section 2.2 shall be continue for fifty-five (55) years from the date of issuance of a Certificate of Occupancy by the City for such unit or another comparable unit based upon substitution provisions pursuant to the Regulatory Agreement. The affordability requirements of this Section 2.2 shall be set forth in the Regulatory Agreement between the Developer or its successors and the City, provided for below, which shall supersede this Agreement upon recordation of the Regulatory Agreement. 2.3 Schedule for Developing Affordable Multi-family Units. Developer shall provide the Affordable Units concurrent with the Project's market rate units. 3. City Approval of Documents. The following documents, to be approved in writing by the City, shall be used in connection with the rental of Affordable Units. 3.1 A marketing plan consistent with the terms of this Agreement, establishing the process for seeking, selecting and determining the eligibility of tenants of the Affordable Units. 3.2 A form of Rental Agreement. 3 .3 A Property Management Plan. 3 .4 A form of regulatory agreement between the Developer and the City ("Regulatory Agreement"), following a format designated by the City. 4. Compliance Report. Following completion of construction of the Affordable Units, a Compliance Report meeting the requirements of CMC Section 21.85.140 of the Inclusionary Ordinance and requirements set forth in CMC Chapter 21.86, verifying compliance of all completed Affordable Units with the terms of this Agreement and certified as correct by a third-party, shall be submitted annually to the Housing and Neighborhood Services Director, commencing on the first Report Date that is twelve (12) months from the completion of construction of the Affordable Units. If similar reports on some or all of the Affordable Units are required for regulatory compliance with other financing programs, those reports may be deemed satisfactory for the purpose of this section by the Housing and Neighborhood Services Director, with respect to the Affordable Units covered by such reports, provided that copies of those reports are provided on an annual basis to the Housing and Neighborhood Services Director with a third party certification addressed to the City. 5. Release of Subject Property from Agreement. The covenants and conditions herein contained shall apply to and bind the Director and its heirs, executors, administrators, successors, transferees, and assignees having or acquiring any right, title or interest in or to any part of Property and shall run with and burden the Property until terminated in accordance with the provisions of Section 13 hereof. The Developer shall expressly make the conditions and covenants contained in this Agreement a part of any deed or other instrument conveying any interest in such property. The burdens of this Agreement, except for such burdens as may be 3 CA 5/12/2011 released as set forth above, shall remain in full force and effect and recorded against the Development for the 55-year duration of this Agreement. 6. Default. Failure of the Developer to cure any default in the Developer's obligations under the terms of this Agreement within ninety (90) days after the delivery of a notice of default from the City (or where the default is of the nature which cannot be cured within such ninety (90) day period, the failure of the Developer to commence to cure such default within the ninety (90) day period or the Developer's failure to proceed diligently to complete the cure of such a default within a reasonable time period but in no event greater than one-hundred eighty (180) days) will constitute a failure to satisfy the Conditions of Approval with respect to the Property and the requirements of Chapter 21.85 of the CMC. The City may exercise any and all remedies available to it with respect to the Developer's failure to satisfy the Conditions of Approval and Chapter 21.85 of the CMC, including but not limited to, the withholding of further building permits for the market rate units within the Development until such cure is completed. 7. Appointment of Other Agencies. At its sole discretion, City may designate, appoint or contract with any other public agency, for-profit or non-profit organization to perform the City's obligations under this Agreement. 8. 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, actions, judgments 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 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. 9. Insurance Requirements. Developer shall obtain, at its own expense, commercial general liability insurance for development of the Property naming Indemnitees as additional named insureds with aggregate limits of not less than five million dollars ($5,000,000), for bodily injury and death and property damage, including coverage for contractual liability and projects and completed operations, purchased by Developer or its successor or assigns from an insurance company duly licensed to engage in the business of issuing such insurance in the State, with a current Best's Key Rating of not less than A-:VII, such insurance to be evidenced by an endorsement which so provides and delivered to the Housing and Neighborhood Services Director prior to the issuance of any building permit for the Property. I 0. 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 addressed set forth below: 4 CA 5/12/2011 TO THE CITY OF CARLSBAD: Housing and Neighborhood Services Department Attn: Housing and Neighborhood Services Director 1200 Carlsbad Village Drive Carlsbad, California 92008 TO THE DEVELOPER: Carlsbad Village Partners, L.P. Attn: Gerry Ranglas and Scott Dale 3444 Camino del Rio N., Ste 202 San Diego, CA 92108 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. 11. 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. 12. Duration of Agreement. This Agreement shall remain in effect for fifty- five (55) years following the date certificates of occupancy have been issued for all Affordable Units. This Agreement, and any section, subsection, or covenant contained herein, may be amended only upon the written consent of the Developer and the Housing and Neighborhood Services Director. 13. First Right of Refusal to Purchase Development. The City shall have the first right of refusal to purchase any project containing affordable units offered for sale at the end of the minimum tenure of affordability. The first right ofrefusal to purchase the rental project shall be submitted in writing to the Housing and Neighborhood Services Director. Within 90 days of its receipt, the City shall indicate its intent to exercise the first right of refusal for the purpose of providing affordable housing. 14. Recording of Agreement. The parties hereto shall cause this Agreement to be recorded against the Property in the Official Records of the County of San Diego. 15. 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. 5 CA 5/12/2011 IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed as of the day and year first above written. DEVELOPER Carlsbad Village Partners, L.P., a California limited partnership By: Carlsbad Village Genpar, LLC, a California limited liability company, its General Partner By: R& V Management Corporation, a California corporatioR, its Mana er '\ ' CITY OF CARLSBAD BySuJL~ Debbie Fountain, Housing & Neighborhood Services Director (Chairman, president or vice-president and secretary, assistant secretary, CFO or assistant treasurer must sign for corporations. Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the office(s) signing to bind the corporation.) (If signed by an individual partner, the partnership must attach a statement of partnership authorizing the partner to execute this instrument.) (Proper notarial acknowledgment of execution by Developer must be attached.) APPROVED AS TO FORM Celia A. Brewer, City Attorney By:_l-+b..--,,:;...q,,..c>w-=------- Ron Kemp, Asst tant City Attorney Dated:_g~b_o--+-· /_r]~_ 6 CA 5/12/2011 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of ~A.-D S:..c· 6 J ) On 1( 2~ /cc, 17 before me, Ct'. tlviN'!)Gf'--, 1\/()}:,")/cy Raye Date C' D Here Insert Nar:e and Title of the Officer personally appeared .Xo,-r-~Lt:, G .lj. f?..AIYC:, l..11~ l Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the perso~ whose name(€})i,s-/are subscribed to the within instrument and acknowledged to me that ~they executed the same,,.iJ;L ~their authorized capacitV(ies0and that_)zy ~their signatur@n the instrument the persor$)) or the entity upon behalf of whicli1he persolQ.(§.))acted, executed the instrument. Place Notary Seal Above I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official ea Signature Cf·-,..,""' .. '---tf Signature of Notary Public ----------------OPTIONAL---------------- Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: _____________ Document Date: _______ _ Number of Pages: ___ Signer(s) Other Than Named Above: ____________ _ Capacity(ies) Claimed by Signer(s) Signer's Name: ____________ _ Signer's Name: ____________ _ • Corporate Officer -Title(s): ______ _ Corporate Officer -Title(s): ______ _ ! Partner -Limited I I General Partner -! Limited I General Individual ! Attorney in Fact Individual Attorney in Fact Trustee Guardian or Conservator Trustee Guardian or Conservator 'Other: _____________ _ Other: _____________ _ Signer Is Representing: _________ _ Signer Is Representing: _________ _ J{;,~'<¼,"g;,-g,-Q<,~~~~~-g,~~-Q<,~"§;:<,~~~~~-g,'§<;,"§<.,'Q<,~'( ©2014 National Notary Association • www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY ALL THAT PORTION OF TRACT 117 OF CARLSBAD LANDS, IN THE CITY OF CARLSBAD, IN THE COUNTY OF SAN DIEGO, ST A TE OF CALIFORNIA, ACCORDING TO THE MAP THEREOF NO. 1661, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MARCH 1, 1915. 7 CA 5/12/2011 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ,)ti/2 /)/e~O ) On tJ-19-1 7 ~ before me, ;[iZ!&IR 0-J Zl9/2FZ I /UulJ:lt?Y Pub/1,l .1") ! _ J, . Here /nse'l Name and'ritle of the Officer Date personally appeared "1./f Dl>ttlh f{l'CJ H;2 lit Ttll/ 2 Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person~ whose name(~) is/~e ,subscribed to the within instrument and acknowledged to me that ",qe/she~ executed the same in ~/her/t~ authorized capacity~s), and that by h(s/herfl'hxir signature~ on the instrument the person~, or the entity upon behalf of which )he person~ acted, executed the instrument. a IRMA CAZAREZ _ Notary Public -California ~ San Diego County ~ z Commission # 2153956 ' t + • • • ,Ml to':"l; txp~r~ ~aJ ~O }~7~ r Place Notary Seal Above I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my iand,and official seaJ. . II/ I I ----------------OPTIONAL---------------- Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: _____________ Document Date: _______ _ Number of Pages: ___ Signer(s) Other Than Capacity(ies) Claimed by Signer(s) Signer's Name: i Corporate Officer -Title(s): ______ _ Partner -Limited I I General Individual : Trustee Attorney in Fact Guardian or Conservator Other: ______________ _ Signer Is Representing: _________ _ Named Above: ____________ _ Signer's Name: ____________ _ Corporate Officer -Title(s): ______ _ ' Partner -Limited I General I Individual Attorney in Fact Trustee · Guardian or Conservator Other: _____________ _ Signer Is Representing: ---------~ ©2014 National Notary Association· www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907