HomeMy WebLinkAboutReso 035 DubRanGAffordHousAgmt RESOLUTION NO. 35 - 02
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVAL OF AFFORDABLE HOUSING AGREEMENT
FOR PA 01-009 DUBLIN RANCH AREA G TOLL BROTHERS
WHEREAS, Toll Brothers - Dublin Ranch L.L.C (Developer) is the owner of four parcels known
as Neighborhoods MH-1, MH-2, H-1 and H-2 of Dublin Ranch Area G located East of Tassajara Road,
North of Dublin Blvd., and South of Central Parkway; and
WHEREAS, the Developer proposes to build 1,396 for sale units on the four separate parcels,
which are subject to the City's Inclusionary Zoning provisions; and
WHEREAS, the City staff is currently drafting amendments to the inclusionary zoning program
which would increase the number of inclusionary units required to be constructed from 5% to 15% and
that would permit in-lieu fees to be paid only to satisfy one-half of the inclusionary zoning obligation; and
WHEREAS, an Affordable Housing Agreement is required by both the Eastern Dublin Specific
·. Plan and the inclusionary zoning program; and
WHEREAS, the parties disagree over the applicability of the soon to be adopted amendments to
the inclusionary zoning program to this Area G project, and in light of this uncertainty, have reached a
compromise that is reflected in this agreement; and
WHEREAS, the City Council did hold a public hearing on said agreement on March 19, 2002;
and
WltEREAS, the City Council did hear and use their independent judgment and considered all
said reports, recommendations and testimony hereinabove set forth.
NOW THEREFORE BE IT RESOLVED THAT THE Dublin City Council does hereby make
the following findings and determinations regarding said proposed Affordable Housing Agreement:
1. Said Agreement is consistent with the objectives, policies, and programs specified in the
City of Dublin General Plan and the Eastern Dublin Specific Plan.
2. Said Agreement is compatible with the uses authorized in, and the regulations prescribed
for, the land use districts in which the real property is located in that the project approvals include a
Planned Development Rezoning adopted specifically for Area G.
3. Said Agreement is compatible with the uses authorized in, and the regulations prescribed
in the Planned Development Rezoning adopted specifically for Area G.
4. Said Agreement satisfies the requirements of Chapter 8.68 of the Dublin Municipal Code,
condition 89 of the Planning Commission (PC) Resolution 02-03 (H-l), condition 87 of PC Resolution
02-04 (MH-2), condition 87 of PC Resolution 02-05 (MH-1), and condition 96 of PC Resolution 02-06
(H-2).
5. The applicant has demonstrated that the agreement meets the purposes of Chapter 8.68 and
this agreement is authorized pursuant to Section 8.68.080 D of Chapter 8.68.
NOW, THEREFORE, BE IT FURTHER RESOLVED THAT THE Dublin City Council does
hereby approve the Affordable Housing Agreement between Toll Brothers CAII, LLC and the City of
Dublin (attached as Exhibit A) for Tracts 7324, 7325, 7326 & 7327 of Dublin Ranch Area G and
authorizes the Mayor to sign it.
PASSED, APPROVED AND ADOPTED this 19th day of March, 2002.
AYES: Councilmembers McCormick, Oravetz and Zika and Mayor Lockhart
NOES: None
A~ST:
Deputy City Clerk
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G:~2002 Reso\CC reso Area G AffHsg Agmt 1.doc
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WHEN RECORDED RETURN TO:
City Clerk
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Space above this line for Recorder's Use
AFFORDABLE HOUSING AGREEMENT
FOR THE CONSTRUCTION OF INCLUSIONARY UNITS AND THE PAYMENT OF
FEES IN-LIEU OF CONSTRUCTING INCLUSIONARY HOUSING UNITS
P A 01-009, Toll Brothers (Toll-Dublin, L.L.C.)
Dublin Ranch Area G for theMH-1, MH-2, H-1, and H-2 Neighborhoods
TffiS AGREEMENT is hereby entered into this _ day of , 2002 by
and between the City of Dublin, hereinafter referred to as "City," and Toll-Dublin, LLC, a
California limited liability company, hereinafter referred to as "Developer."
Recitals
1. Chapter 8.68 of the Dublin Municipal Code contains inclusionary zoning
requirements. These requirements were adopted pursuant to Strategy LB. of the City's General
Plan Housing Element, the purpose of which is to create affordable housing opportunities in the
City of Dublin for very low-, low- and moderate-income households.
2. The City of Dublin adopted these inclusionary zoning regulations recognizing that
the cost of new housing is so high that persons with very low-, low- and moderate-incomes are
increasingly unable to locate affordable housing in the City. The purpose of the inclusionary
zoning regulations is to achieve a balanced community with housing available at all income
levels.
3. Accordingly, the regulations currently require that residential projects with 20 or
more units/lots contain at least 5% very low-; low- and moderate-income units/lots, in the
following proportions 2% very low-income, 2% low-income, and 1 % moderate income. In lieu
of constructing such units, a developer of multiple-family housing may currently pay a fee of
$1.50 per square foot, which fee was recently doubled from $0.75 per square foot.
4. Pursuant to City Council direction, City staff is currently drafting amendments to
the inclusionary zoning program that would increase the number of inclusionary units required to
be constructed from 5% to 15% and that would permit in-lieu fees to be paid only to satisfy one-
half of the inclusionary zoning obligation. The proposed program revisions would also change
the allocations among the various income groups to the following percentages: 30% very-low,
Affordable Housing Agreement ~
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20% low, and 50% moderate. At the time that the City Council directed staff to prepare
amendments to the inclusionary zoning program, the City Council adopted a resolution notifying
developers of the Council's intent to adopt such amendments, the purpose of which was to
ensure that subsequently filed applications for permits and approvals were subject to the to-be-
adopted amendments to the inclusionary zoning program.
5. Developer is the owner of that real property comprised of four separate parcels
known generally as Neighborhoods MHl, MH2, HI and H2 of Dublin Ranch Area G located
East of Tassajara Road, north of Dublin Boulevard, south of Central Parkway, and more
specifically described in Exhibit A. Developer desires to construct a residential project on four
separate parcels (Neighborhoods MHl, MH2, HI and H2), which in the aggregate consist of
1,396 for-sale units (collectively ''the Project") and which are subject to the City's inclusionary
zoning provisions. '
6. The parties disagree over the applicability of the to-be-adopted amendments to the
inc1usionary zoning program to the Project and, in light of this uncertainty, have reached a
compromise regarding the Project's inclusionary housing obligations that is reflected in this
agreement.
7. The purpose of this agreement is to set forth the manner by which Developer
satisfies any and all inclusionary housing obligations applicable to the Project under presently
adopted and to-be-adopted amendments to the inc1usionary zoning regulations.
NOW, THEREFORE, in satisfaction of the requirements of Chapter 8.68 of the Dublin
Municipal Code, condition 89 of Planning Commission ("PC") Resolution No. 02-03 (B-1),
condition 87 of PC Resolution No. 02-04 (MH-2), condition 87 of PC Resolution No. 02-05
(MH-l), and condition 96 of PC Resolution No. 02-06 (H-2) and in consideration of the City's
approval of the Project, Developer and City for themselves and their respective successors and
assigns hereby agree as follows:
1. Definitions and Interpretations. Terms used in this Affordable Housing Agreement
shall be defined as set forth in Chapter 8.68 of the Dublin Municipal Code.
2. Developer's Affordable Housin!! Obli!!ation. Through its action on January 8,2002 the
Planning Commission approved Developer's Project for 1,396 residential units. More specifically, on
January 8, 2002, the Planning Commission approved Site Development Review and Tentative Maps
for the residential projects, known as Dublin Ranch Area G, Neighborhoods MH~l, MH-2, and H-1,
and, on January 20,2002, the Planning Commission approved Site Development Review and a
Tentative Map for the residential project, known as a Dublin Ranch Area G, Neighborhood B-2.
Based on 1,396 project units, Developer's affordable housing obligation under the proposed
amendments is 209 units ("the Inc1usionary Obligations"). Under the proposed amendments, the 209
units would be allocated to the various income groups as follows: (a) 42 very low-income units; (b) 63
low-income units; and (c) 105 moderate-income units. In addition, under the proposed amendments,
in-lieu fees may be paid on only half (7.5%) of the units, and the half (7.5%) of the units must be
constructed.
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3. Developer's Compliance with Affordable Housin!! Obli!!ation. Developer will
meet its inclusionary zoning obligations for the Project through the construction of one-half of
the required Inclusionary, and the payment of in-lieu fees on the remainder. Notwithstanding the
terms of the proposed amendments, the Inclusionary Units to be constructed may all be
affordable to moderate income households, and none of the Inclusionary Units are required to be
affordable to very low-income, and low-income hou~eholds.
a Housing Unit Construction. Developer shall construct 105 for-sale
Inc1usionary Units affordable to moderate-income households as part of the Project (the
"Must-Build Obligation"). Developer shall either construct the 105 Inclusionary Units
within the various neighborhoods for which the obligation arises, as set forth in this
Section 3.a or construct the Inclusionary Units off-site pursuant to Section 3.b below.
Until such time as the Developer elects whether to construct the Inclusionary Units off-
site pursuant to section 3.b.i below, the Building Official may only issue building permits
within Neighborhoods MH-l, MH-2,and H-l for buildings for which the unit counts
total no more than 25% of the units within Neighborhoods MH-l, MH-2, and H-l,
respectively. If Developer does not elect to construct the Inclusionary Units off-site,
subsequently issued building permits within Neighborhoods MH-l, MH-2, and H-1 shall
identify Inclusionary Units. The Must-Build Obligation for individual neighborhoods are
set forth in the table below:
Neighborhood
MH-l
MH-2
H-l
H-2
Totals
Units
200
281
289
626
1396
7.5% Must-
Build
Obligation
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21
22
47
105
b. Off-site Construction of Units. Developer wishes to construct within
NeighborhoodH-2 58 Inclusionary Units to satisfy the Must-Build Obligations of the
MH-1, MH-2, and H-l Neighborhoods. The H-2 Neighborhood is made up of a total of
eight buildings constructed above two underground parking garages. Developer proposes
to construct and complete the eastern parking garage ("Eastern Garag~") and four
buildings above it (collectively "the Eastern Buildings") prior to constructing the western
parking garage ("Western Garage") and four buildings atop it (collectively '"the Western
Buildings"). If Developer elects to satisfy the Must-Build Obligations for Neighborhoods
MH-1, MH-2, and H-1through the construction of Inclusionary Units within
Neighborhood H-2, Developer shall include 60 of the 105 Inclusionary Units within the
Eastern Buildings and the remaining 45 Inclusionary Units within the Western Buildings.
The City is willing to permit Developer to satisfy the Must-Build Obligations for
Neighborhoods MH-1, MH-2, and H-1 through the construction ofInclusionary Units
within Neighborhood H-2, subject to the following conditions:
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i. The Developer shall notify the City Manager in writing of his election
to meet the must-build obligations for Neighborhoods MH-1, MH-2, and H-1
through the construction of Inclusionary Units within NeighborhoodH-2,
Developer shall pay the City a one-time fee of$10,OOO.00 to compensate the City
for the costs of administering the following provisions. Inclusionary Units shall
be reasonably dispersed throughout Neighborhood H-2. The Inc1usionary Units
constructed within the Eastern Buildings shall'include, at a minimum,
lnclusionary Units to satisfy Neighborhood H-2's Must-Build Obligation of no
fewer than 24 units or 6 units per building.
ii.' Following Developer's election to construct within Neighborhood H-2
Inclusionary Units to satisfy the Must-Build Obligations for Neighborhoods MH-
1 ,MH-2, and H-l, the issuance of building permits within Neighborhoods MH-
1, MH-2, and H-l shall be limited as follows to ensure that the construction of
lnclusionary Units in Neighborhood H-2 is generally concurrent with the
construction of market-rate units:
a. Upon issuance of the building permit for the Eastern
Garage, the Building Official may issue building permits equal to
approximately 40%,ofthe units within Neighborhoods MH-1, MH-2, and
B-1. More specifically, the Building Official may issue building permits,
for phases 1 through 5 in Neighborhood H-l as shown on the Phasing
Map, dated November 13,2001, submitted to the Community
Development Department ("the Phasing Map") (totaling 110 units); for
phases 1 through 5 in Neighborhood MH-l as shown on the Phasing Map
(totaling 80 units); for phases 1 through 7 in Neighborhood MH-2 as
shown on the Phasing Map (totaling 105 units).
b. Upon completion of the Eastern Garage and the issuance of
building permits for the first two of the Eastern Phase Buildings (which
shall include and identifyin the building plans a minimum of28
Inc1usionary Units), the Building Official may issue building permits
equal to approximately 60% of the units within Neighborhoods MH-l,
MH-2, and H-1. More specifically, the Building Official may issue
building permits for phases 1 through 8 in Neighborhood H-l as shown on
the Phasing Map (totaling 177 units); for phases 1 through 7 in
Neighborhood MH-l as shown on the Phasing Map (totaling 120 units);
for phases 1 through lOin Neighborhood MH-2 as shown on the Phasing
Map (totaling 172 units).
c. Upon issuance of building permits for all the Eastern Phase
Buildings (which shall include and identify in the building plans a
minimum of 60 Inclusionary Units), the Building Official may issue
building permits equal to approximately 80% of the units within
Neighborhoods MH-1, MH-2, and H-l. More specifically, the Building
Official may issue building permits for phases 1 through lOin
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Toll- Dublin Ranch, Area G
Tracts 7324 thru 7327
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Neighborhood H-l as shown on the Phasing Map (totaling 221 units); for
phases 1 through lOin Neighborhood MH-1 as shown on the Phasing
Map (totaling 176 units); for phases 1 through 12 in Neighborhood Wr-2
as shown on the Phasing Map (totaling 224 units).
d. Upon the issuance of a building permit for the Western
Garage and the commencement of construction of the Garage, the
Building Official may issue the remainder of the building permits within
Neighborhoods MH-l, MH-2, and B-1. Should Developer fail to proceed
with the construction of the Eastern Garage and Eastern Buildings in a
timely manner, as determined by the City in its sole discretion, Developer
shall immediately seek from the City appropriate entitlements that include
the construction of the remaining 19 Inclusionary Units. The City may
enforce this provision by withholding certificates of occupancy and
building permits within Neighborhoods MH-1, MH-2, H-1, and H-2, and
by any other legal or equitable means.
4. In-Lieu Fees. Developer shall pay in-lieu fees in the amount of$1,399,909 to
fulfill the remainder of its Inclusionary Housing obligations. The fee shall be paid as follows.
a. MH-l. Developer shall pay $200,620 to the City prior to the issuance of
any building permits within Neighborhood MB-l.
D. MH-2. Developer shall pay $281,952 to the City prior to the issuance of
any building permits within Neighborhood MH-2. '
c. H-1. Developer shall pay $289,543 to the City prior to the issuance of
any building permits within Neighborhood H-1.
d. B-2. Developer shall pay $627,794 to the City prior to the issuance of
any building permits within Neighborhood H-2.
5. Exterior Materials and Exterior Architectural Desim. The exterior materials
and exterior architectural design ofthe Inclusionary Units shall be consistent with the Project's
market-rate units as reviewed and approved through the Site Development Review by the
Planning Commission on January 8, 2002; provided, however, that minor changes to unit size
may be approved by the Community Development Director through a Site Development Review
waIver.
6. Inclusionarv Unit Location and Size. Inc1usionary Units constructed within the
individual neighborhoods shall be dispersed throughout the neighborhood. However, the
developer may designate what unit type shall be utilized as inclusionary units; provided that they
meet the dispersion requirement as determined by the Community Development Director.
Inclusionary Units constructed within Neighborhood H-2 to satisfy the must-build obligations of
Neighborhoods MH-1, MH-l, and H-l shall be dispersed throughout Neighborhood H-2. The
size of the inclusionary units shall be consistent with the Site Development Review approvals of
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Affordable Housing Agreement
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the Planning Commission on January 8, 2002 and January 22, 2002, provided however, that
minor changes to unit size may be approved by the Community Development Dirctor through a
Site Development Review Waiver.
7. Ensurin!! Affordabilitv.
a. Developer shall sell the Inc1usionary Units at sales prices that are
affordable to persons with moderate incomes as defined in the City's lnclusionary Zoning
Regulations. Units shall be sold to households that qualify as moderate-income
households under City's lnclusionary Zoning Regulations and, if Developer chooses,
such units may be sold to households that qualify as very low-, low-income households
under the City's Inclusionary Zoning Regulations. The maximum sales price shall be
adjusted for household size and shall be directly related to the number of bedrooms
within the Inclusionary Unit.
b. Prior to the issuance of any certificates of occupancy for the lnclusionary
Units, agreements subjecting the Inc1usionary Units to resale restrictions for a period of
30 years shall be entered into between the City and the Developer, which agreement shall
be recorded against the lnclusionary Units. The agreement shall be executed by the City
Manager. The agreement shall further require that the initial buyer of the Inclusionary
Unit shall execute an acknowledgement of the existence of the resale restrictions and the
applicability of the Inclusionary Zoning Regulations and shall grant the City the right of
first refusal on each subsequent sale of the unit.
.. Example of Current Sales Prices for Moderate Units. An example
of the manner of calculating sale prices for the moderate units (based on current
median incomes) is, set forth in Attachment A.
Present 2002 income levels for moderate income households are
included in Attachment A. These income levels will be revised yearly based on
the State Housing and Community Development Department income levels
established in accordance with Sections 50079.5 and 50105 of the California
Health and Safety Code.
8. Term. This agreement shall be effective until all in-lieu fees have been paid and
all Inc1usionary Units are subject to resale restrictions approved by the City, constructed, and
sold pursuant to the terms of this agreement.
9. A!n"eement to be Recorded. This Agreement shall be recorded in the Official
Records of Alameda County against the property described in Exhibit A, which Agreement shall
run with the land until !ermination of the Agreement as provided herein.
10. Asshmments and Transfers.
a. Ri!!ht to Assi!!Il. Developer may wish to sell, transfer or assign all or
portions of its Property to other developers (each such other developer is referred to as a
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Affordable Housing Agreement
Toll - Dublin Ranch, Area G
Tracts 7324 thru 7327
7 '13~/ /;--
"Transferee"). In connection with any such sale, transfer or assignment to a Transferee,
Developer may sell, transfer or assign to such Transferee any or all rights, interests and
obligations of Developer arising hereunder and that pertain to the portion of the Property
being sold or transferred, to such Transferee, provided, however, that: no such transfer,
sale or assignment of Developer's rights, interests and obligations hereunder shall occur
without prior written notice to City and approval by the City Manager, which approval
shall notbe unreasonably withheld or delayed. If Developer has elected to satisfy
Neighborhoods MH-1; MH-2, and H-l ' s must-build obligation through the construction
ofInclusionary Units within Neighborhood H-2, Developer and Transferee shall allocate
between themselves the rights to the issuance of building permits within the various
neighborhoods, consistent with this agreement and in a manner that may be readily
administered by the City.
b. Aooroval and Notice of Sale. Transfer or Assh?:nment. The City
Manager shall consider and decide on any transfer, sale or assignment within thirty (30)
days after Developer's notice, provided all necessary documents, certifications and other
information are provided to the City Manager to enable the City Manager to determine
whether the proposed Transferee can perform the Developer's obligations hereunder.
Notice of any such approved sale, transfer or assignment (which includes a description of
all rights, interests and obligations that have been transferred and those which have been
retained by Developer) shall be recorded in the official records of Alameda County, in a
form acceptable to the City Manager, concurrently with such sale, transfer or assignment.
c. Effect of Sale. Transfer or Assi!!nment. Developer shall be released
from any obligations hereunder sold, transferred or assigned to a Transferee pursuant to
section 10.a of this Agreement, provided that: a) such sale, transfer or assignment has
been approved by the City Manager pursuant to section 10.a of this Agreement; and b)
such obligations are expressly assumed by Transferee and provided that such Transferee
shall be subject to all the provisions hereof and shall provide all necessary documents,
certifications and other necessary information prior to City Manager approval pursuant to
sections 10.a and 10.b of this Agreement.
11. Successors. Except as specifically provided in this Agreement, this Agreement
shall bind and inure to the benefit of all successors and assigns of the parties and any associates
in interest, and their respective directors, officers, agents, servants, and employees, and the
successors and assigns of each of them, separately and collectively. Developer shall provide
notice to the City of the names and mailing addresses of any such successors or assigns.
12. Hold Harmless. Developer shall hold City, its elective and appointive boards,
commission, officers, agents and employees harmless from and against any or all loss, liability,
expense, claim, costs, suits, damages of every kind, nature and description directly or indirectly
arising from the performance of the obligations or undertakings of Developer pursuant to this
Agreement. Developer shall defend City and its elective and appointive boards, commission,
officers, agents and employees from any suits or actions at law or in equity for damages caused
or alleged to have been caused, by reason of any of the obligations or undertakings of Developer
pursuant to this Agreement. It is further provided that this hold harmless agreement shall apply
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Affordable Housing Agreement
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to all damages and claims for damages for every kind suffered, or alleged to have been suffered,
by reason of any of the obligations or undertakings of Developer pursuant to this Agreement.
13. Enforcement. If the Developer defaults in the performance or observance of any
covenant, condition, restriction or obligation of the Developer as set forth in this Agreement, and
such default remains uncured for a period of thirty (30) days after notice thereof is given by the
City, the City may take anyone or more of the following steps:
a. By specific performance or other action or proceeding atlaw or in equity,
require the Developer to perform its obligations under this Agreement or enjoin any acts
or things which may be unlawful orin violation of the rights of the City hereunder.
b. Take such other action at law or in equity as may appear necessary or
desirable to enforce the obligations, covenants, conditions and restrictions of the
Developer under this Agreement..
If Developer transfers any portion of the proj ect in bulk and a transferee defaults
under this Agreement, the City shall exercise the foregoing remedies only with respect to
the defaulting transferee and its portion of the proj ect; and so long as Developer has not
otherwise defaulted hereunder, the City shall not seek to exercise any rights and remedies
against Developer.
14. Attornevs' Fees. Iflegal action is necessary to enforce any provisions of this
Agreement, the prevailing party shall be entitled to reasonable attorneys' fees and legal costs.
15. Amendments. This Agreement shall be amended only by a written instrument
executed by the parties hereto or their successors in interest and duly recorded in the Official
Records of the County of Alameda, California.
In the event that Developer is unable to perform its obligations under Section 3.b of this
Agreement due to significant changes in circumstances, such as unanticipated delays in
construction within any of the neighborhoods, the City shall confer with Developer in an effort to
reach a mutually acceptable resolution, consistent with the terms of the affordable housing
conditions in the tentative map approvals for Neighborhoods MH-1, MH-2, H-l, and H-2. If
an agreement is reached,' this Agreement shall be amended accordingly. Developer shall pay the
City its reasonable costs, including attorneys' fees, incurred in such negotiations and in
amending this Agreement, and Developer shall, if requested by the City, provide the City with a
reasonable deposit to cover the City's reasonable costs, upon Developer initiating such
negotiations.
16. Corporate Authoritv. If either party is a corporation, each individual signing
this Agreement on behalf of that corporation represents and warrants that each of them is duly
authorized to execute and deliver this Agreement on behalf of the corporation and that the
Agreement is binding on the corporation in accordance with its terms.
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Affordable Housing Agreement
Toll- Dublin Ranch, Area G
Tracts 7324 thru 7327
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CITY OF DUBLIN
Dated:
By:
Mayor
Attest:
City Clerk
TOLL-DUBLIN, L.L.C.
Dated:
By:
Jon Paynter, Assistant Vice President
** Applicant's Signature shall be notarized prior to returning signed agreement to the City
of Dublin Planning Department.
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Affordable Housing Agreement
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Tracts 7324 thru 7327