Loading...
HomeMy WebLinkAboutItem 4.08 K&BRental In-LieuFee . . . -- - 'l '. CITY CLERK File # [Q]~[Q][Q]-~~ AGENDA STATEMENT CITY COUNCIL MEETING DATE: May 28,1996 SUBJECT: Agreement between the City of Dublin and Kaufman and Broad regarding Rental Availability In-Lieu Fee (Donlan Canyon/California Highlands) ."19-<Report Prepared by Dennis Carrington, Senior Planner) *" EXHIBITS A TT ACHED: A. Agreement between the City of Dublin and Kaufman and Broad B. Minutes of City Council Meeting of April 9, 1996. RECOMMENDATION: /1 ^ V 1. Hear Staff presentation V v 2. Deliberate 3. Authorize Mayor to sign agreement FINANCIAL STATEMENT: None DESCRIPTION: The City Council at its April 9, 1996, public hearing regarding the consideration of Rental Availability Requirements for the Donlon Canyon Project, directed staff to prepare an Agreement between the City and Kaufman and Broad (K&B) regarding the Rental Availability In-Lieu Fee where the City agrees to refund the fee when and if the General Plan and Municipal Code are amended to delete the rental availability requirement. The Agreement that has been prepared states that K&B may satisfy its obligation under the Rental Availability Ordinance for the California Highlands project by payment of in-lieu rental fees in the amount of $24,656 prior to final inspection of the first dwelling unit in the project. The fee was calcu1?ted by multiplying 25 (10% of the 246 units) times the per unit fee of $986.24 for a total fee of $24,656. ~. ~- Further, the Agreement states that, in the event the Rental Availability Ordinance is repealed by the City Council on or before September 30, 1997, the City will refund the in-lieu rental fees, together with interest to K&B. The interest rate paid will be 5% per year. The refund will be to K&B and not to its successors in interest because this is not an "AB 1600" type fee (AB 1600 requires the refund of fees be made to the then current owners of the property). That Agreement is included as Exhibit A to this report. The Agreement was prepared by the City Attorney and has been approved by K&B. It is necessary to go forward with this Agreement even though the Rental A vaifability Ordinance will probably be deleted from the Housing Element by Resolution on May 28, 1996, because K&B has requested assurance that they will get a refund, and because the ordinance rescinding the Rental Availability Ordinance may not go into effect until July. Staff recommends that the City Council deliberate and authorize the Mayor to sign the agreement. g:pa92080\raoagmt -------------------------------------------------------------------- COPIES TO: Matt Koart In-house Distribution ITEM NO. 'I. 1 . AGREEMENT BETWEEN CITY OF DUBLIN AND KAUFMAN & BROAD REGARDING RENTAL A V AILABILITY IN LIEU FEE (DONLAN CANYON/CALIFORNIA HIGHLANDS) This Agreement, dated for identification this _ day of May, 1996, is entered into between the City of Dublin ("City"), a municipal corporation and Kaufman and Broad of Northern California, Inc. C'~&B It), a California corporation. .. RECIT ALS A. The City's Rental Availability Ordinance (Chapter 8.04 of the Dublin Municipal Code) requires certain new multifamily developments to provide ten (10%) percent of the total units as rental units for five (5) years. B. K&B is the developer of the California Highlands Project (formerly known as the Donlan Canyon Project; Tract 5926)) in the City which is a 246-unit multifamily development subject to the Rental Availability Ordinance. . C. The Rental Availability Ordinance provides in Section 8.04.070 that developers may pay a fee in lieu of providing the rental units for five (5)years upon approval of the "approving authori ty. " D. The City Council has directed staff to prepare a General Plan Amendment to eliminate the provision of City's General Plan calling for rental units to be made available and to prepare an ordinance repealing the Rental Availability Ordinance. K&B intends to construct the California Highlands Project, or portions of it, prior to the time the Council considers the proposed General Plan Amendment and ordinance repeaJ. E. The purpose of this Agreement is to authorize K&B to satisfy its obligation under the Rental Availability Ordinance by payment of in lieu fees and to provide for return of such fees in the event that the Council repeals the Rental Availability Ordinance. AGREEMENT \VHEREFORE, CITY AND K&B AGREE AS FOLLOWS: 1. Recitals The foregoing Recitals are true and correct and are made a part hereof. . 1 May 22, 1996 EXHIBIT A 2. Payment of In Lieu Fee City agrees that K&B may satisfy its obligations under the Rental Availability Ordinance for the Califomia Highlands Project by payment of "in lieu rental fees" pursuant to Section 8.04.070 of the Dublin Municipal Code. The "in lieu rental fees" for the Project shall be in the total sum of $24,656 which sum shall be paid in full by K&B prior to final inspection of the first d\velling unit in the Project. . 3. Refund ofIn bell Fee if Ordinance is Repealed In the event that the Rental Availability Ordinance is repealed by the City Council on or before September 30,1997, City shall refund the "in lieu rental fees" paid by K&B pursuant to the preceding paragraph, together with monthly interest at the rate of 0.42% per month simple interest (equivalent to 5% per year). The refund shall be made available within thirty (30) days of the effective date of such repeal. Any refund pursuant to this paragraph shall be to K&B only and shall not be to K&B's successors in interest. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year set forth above. CITY OF DUBLIN: Bv: Mayor Date: .;" KAUFMAN & BROAD OF NORTHERN CALIFORNIA, INC.: Bv: Date: Name: Its: APPROVED AS TO FORM: Date: Ci tv Attornev . . J ;\WPD\MNRS\V\114\AGREE\DONLAN.K&B .. 2 May 22, 1996 . . -,.." . P~B~ HEARING . AML~"?5,. ENT TO CHAPTER 9.28 OF THE D!\1C - UIMBY ACT ORDINANCE 7:41 p.m.', 6.1 (390-20) ,j" l\1ayor Hous " opened the public hearing. ,1/'" Parks & Commu'n. Services Director Lowart presenteq,t~taff Report and advised that this chapter of "e Dublin Municipal Code reqL!jres that each subdivider of land classified by the City (, Dublin Zoning Ordinance lor residential use shall as a condition to filing a fina . ubdivision map, dedic1te or reserve lands, pay fees in lieu thereof, or a combinatioN', both, for neighp&hood and community park or recreational purposes. The ", inance w?S11ntroduced at the City Council meeting on !\1arch 26, 1996. ~',(/;7 Cm. l\'1offatt asked when this fee w.o ~.be due. Ms. Lowart responded at theJi~~ ofth~bdivision map. ,;7 \. ;~ ~ No testimony was en:j~ by any member of ~\fu blic relative to this issue. 1 "d 1 b. h. " !\1ayor Houston c o,se t 1e pu hc earmg. "'\~, / On motion of~. Moffatt, seconded by Cm. Barnes, and unanimous vote, the Council wai ~d the reading and adopted ORDINANCE NO. 6 - 96 AMENDING SECTIONS 9.28.040, 9.28.050 AND 9.2 \060 OF THE DUBLIN MUNICIPAL CODE " (QUIMBY ACT - PARKLAND DEDICATION) \ mud ",,,,,,,,U "'."" "' h~uiLiC-H~~~~- ~~ RE-;~I~;OF 'REN'TAL Xv A1LAB1UTY~~-~--- _._~.- RENTAL IN-LIEU FEE AMOUNT AND CONSIDERATION OF RENTAL AVAILABILITY REQUIREMENTS FOR DONLAN CANYON PROTECT 7:44 p.m. 6.2 (430-20) Mayor Houston opened the public hearing. - Senior Flannel' Carrington presented the Staff Report and stated this item deals with consideration of reducing the In-Lieu Rental Fee from $10,808 to $986.24 and requests direction on how to condition projects and agreements with regard to the Rental Availability Ordinance. Cln' COUNCIL MINUTES VOLUME. 15 RE.GULAR MEETING A..pril 9, 1996 PAGE 182 EXHIBIT B 1\11'. Carrington explained that the City Attorney has concluded that the final map for the Donlan Canyon project cannot be amended to remove the condition requ iring compliance with the rental availability requirements until the General Plan is amended to delete these requirements. . 1\11'. Carrington stated two options are available to refund the Rental In-Lieu Fees if the City does amend its General Plan. The first would be to enter into an agreement with Kaufman & Broad, the developer of Donlan Canyon, whereby the City agrees to refund the Rental In-Lieu Fees when and if the General Plan and I\1unicipal Code are amended to delete the rental availability requirements. The second option would be to amend the condition of the tentative map which requires compliance with the rental availability requirements to allow the subdivider to pay the Rental In-Lieu Fees at a later point in time (i.e., one year after the last unit is finaled) if the General Plan has not yet been amended. The second option requires a noticed public hearing. Cm. Burton asked if any consideration had been given to the accrued interest. 1\11'. Ambrose stated they haven't paid yet because the fee hasn't been established. This would have to be worked out as part of the agreement between K&B and the City. It would be brought back to the City Council. Assistant City Attorney Jarvis stated when we collect the fee under option 2, it would be placed in an account. Cm. Burton asked if the ownership changes and they haven't paid it is this one of the failings of option 2 that you could have change of ownership or bankruptcy. How does that fly as far as who will pick up the tab? Can it go with the land? . Mr. Carrington stated it would-go with the land. Whoever buys the land inherits this obligation. Matt Koart, K&B stated either option is acceptable to them. They would be more than happy to waive any interest they would be entitled to. Staff has committed to him with a handshake. Cm. Burton commented that it does pay to have the Mayor on your side. 1\1ayor Houston felt we do have it in the General Plan now, so lowering the amount is acceptable and stated he would go for option 2 and if it is still here after a year, it would have to come back to the City Council. CITY COUNCIL MINUTES . VOLUME 15 REGULAR MEETING April. 9, 1996 PAGE 183 . . .: . Cm. Burton felt \\"e need to be consistent with everyone. He did not see a problem with option 1. It is prudent for us to ha\.e the money on something we have in our code now. \Vhat if the next City Council doesn't go along with this? .\1ayor Houston explained he felt the difference is, this is going to go away. Staff has researched this and done their homework. This is going away in 3 or 4 months. I\.'1ayor Houston closed the public hearing. Cm. Burton made a motiqn; which was seconded by Cm. Moffatt to adopt Option 1 and pay interest. · Assistant City Attorney Jarvis asked if the City Council was directing Staff to negotiate with K&B The agreement would formalize the arrangement. Cm. Burton yes Staff should negotiate an agreement. Cm. I\.10ffatt stated he would not support this. It should go into an account and we refund it. Vve're just entering into an agreement with K&B. Cm. Burton restated his motion to adopt the resolution revising the rental in-lieu fee to 5986.24 and to instruct Staff to enter into an agreement to refund fees to K&B when and if the rental availability requirement is deleted. This motion was seconded by .\1ayor Houston who clarified that with Option # 1, if and when we delete this ordinance they will get their money back. I\.1ayor Houston stated hopefully, this ordinance will be gone before someone else comes 111. 1\11'. Ambrose stated this is a condition of their map so this agreement would provide assurance that they will get a refund. Cm. Barnes asked what's wrong with Option #2. Why incur an added expense if we are so sure in a reasonable time we will take care of this? Cm. Bulion felt at election time, the make up of the City Council could change. He stated either one was okay with him."' em. Barnes felt they were talking about the City's money and a minor expense. Cm. Burton suggested paying the expenses out of the interest. CITY COUNCIL MINUTES VOLUME 15 REGULAR MEETING April. 9, 1996 PAGE 184 Cm. .\10ffatt felt K&B was willing to pay the fee and put it in a separate account. If it's not used after a certain period of time, it is refunded. If the City Council changes and there is thought to keep the funds, the City Council would be protecting a future . Cou nci!. On motion of Cm. Burton, seconded by Mayor Houston, and by unanimous vote, the Council adopted RESOLUTION NO. 40 - 96 . ~. APPROVING REDUCTION OF IN-LIEU RENTAL FEE AMOUNT and selected Option 1 (enter into an agreement with K&B where the City agrees to refund the Rental In-Lieu Fees when and if the General Plan and l\1unicipal Code are amended to delete the rental availability requirement) with an added stipulation that the City wiII pay interest on the money. ."., r_,--",";r"" ..' ':-~-7~-"--=~"""-'''.:''7_.",.-. ':';:,.:rC ,/ ~~ ,,~". .;.--;,;J.... .-"_~~~_, ".=........-='~fi'".'B.~~,-:""~~~.':~:--.~.:'._.~~~~. .' ~.~~" ~:~:... _. .",.. .- ~IC HEARlNG - REVISION TO . E~S~ DUBLIN TRAF~C IMPACT FEEl AREA OF BENEFIT FE~./"/ 8.01 p.m" 6.3 (390-_0) ./ Mayor Ho~ton opened the public hearing. .=.,;.;:-. \", . ~/' Pu~lic Yvorks D:~ctor Thompson stated ,the City Co~pc{(has directed St~ff to penocilcaIly reVIe~- , nd update the TraffIC Impactfee. The Eastern Dublm General Plan Amendment an ' pecific Plan were adopte,.d.:by the City in 1993. The GPA outlines future land u~.l<Ians for the 4,176 ~cfe eastern Dublin sphere of influence. Approximately 13,906 d~IIing units and.9.737 million square feet of commercialloffice/industrm:tdevelopment are anticipated in the GPA area, in addition to parks, open space and instittingnal..uses. The Eastern Dublin Specific Plan provides more specific detailed goals, poli2t,. nd action programs for the 3,313 acre portion of the GPA nearest the City. Approxima' 2,744 acres to the east of the City's sphere of influence are designated on tpi(Land Use .ap as "Future Study Area". The GPA does not outline future land use$;in this area and" .. area was not considered in developing / " the Traffic Impact Fee.;:,~:j , /. .~,' .. .:~ .~, Mr. Thompson explai'ned that T]K.i\1 prepared a revise' ort which updates the Barton-Aschman.Study. A separate report was prepared i3 '-,antina & Thompson which provid~s'updated estimates of the cost of constructing t' _. improvements which are included-.in Categories 1 and 2 of the Study. TJKM's Study Up te and Santina & Thompsop:{ updated cost estimates incorporate changes based on las .", ar's comments from ~5Y'public. ' 7' L/~ / Cln' COUNCIL MINUTES VOLUME 15 REGULAR MEETING April. 9, 1996 PAGE 185 .'