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HomeMy WebLinkAboutReso 136-07 Arroyo Vista Redevelopment RESOLUTION NO. 136 - 07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********************************************* APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE ARROYO VISTA REDEVELOPMENT PROJECT WITH THE DUBLIN HOUSING AUTHORITY, THE HOUSING AUTHORITY OF THE COUNTY OF ALAMEDA, EDEN HOUSING INC., AND CITATION HOMES CENTRAL; APPROVING FINANCIAL ASSISTANCE TO THE DUBLIN HOUSING AUTHORITY FOR RELOCATION COSTS; AND PRELIMINARILY GRANTING WAIVERS TO THE CITY'S INCLUSIONARY ORDINANCE SUBJECT TO FINAL APPROVAL OF ZONING, PARCEL MAP AND TENTATIVE MAP WHEREAS, the Dublin Housing Authority (the "Authority") owns Arroyo Vista, a public housing development located in the City of Dublin (the "City") at 6700 Dougherty Road (the "Property"); WHEREAS, the Property is currently developed with 150 public housing units and a children's day care center, all in need of substantial rehabilitation; WHEREAS, on July 25, 2006, the Authority determined that rehabilitation was economically infeasible and decided to seek redevelopment of the Property; WHEREAS, on April 3, 2007, the City Council approved execution of an Exclusive Negotiating Rights Agreement. ("ENRA") with the Authority, the Housing Authority of the County of Alameda ("HACA"), Eden Housing, Inc., a California nonprofit public benefit corporation ("Eden"), and SCS Development Company, a California corporation, dba Citation Homes Central ("Citation"); WHEREAS, pursuant to the ENRA, City staff negotiated a proposed Disposition and Development Agreement with the Authority, HACA, Eden and Citation, a copy of which is attached hereto as Exhibit A ("DDA"), which would govern the disposition and development ofthe Property; WHEREAS, pursuant to the DDA, following approval by the U.S. Department of Housing and Urban Development ("HUD"), compliance with the California Environmental Quality Act ("CEQA") and the National Environmental Policy Act ("NEP A"), and the recordation of a final map subdividing the Property, the Authority will sell approximately half of the Property to Citation for the sum of $12,000,000 and will convey the remainder of the Property to Eden at no cost; WHEREAS, Citation and Eden (collectively, the "Developer") propose to redevelop the Property as a mixed-income development of approximately 405 units, consisting of affordable multi-family and senior rental units, affordable and market rate for-sale units, open space, a community center and a childcare facility (the "Project"); WHEREAS, the rental component of the Project is proposed to be constructed and managed by Eden, and will consist of 150 affordable rental units, which will replace the existing public housing units, 1 and approximately 29 additional affordable units (the "Rental Component"). Approximately fifty of the affordable rental units will be reserved for occupancy by seniors; WHEREAS, the for-sale component of the Project is proposed to be constructed by Citation, and will consist of approximately 210 market-rate units and 16 affordable units (the "For-Sale Component"); WHEREAS, Eden has requested, and the City Council has agreed by execution of the ENRA, to provide a loan to Eden from the City's Inclusionary Zoning In Lieu Fee Fund in the amount of up to $1,500,000 to assist in financing the construction of the affordable multi-family and senior rental units; WHEREAS, all existing residents of the Property (the "Existing Residents") must be relocated to replacement housing prior to disposition of the Property in accordance will all applicable state and federal laws; WHEREAS, Citation and the Authority will contribute $1,000,000 and $600,000, respectively, for relocation costs; WHEREAS, the City proposes to contribute $1,500,000 for relocation costs, to be disbursed incrementally as such costs are incurred; WHEREAS, on May 23, 2007, the Developer submitted a pre-application to the City for the Project; WHEREAS, the Developer intends to submit an application to the City for the Project; WHEREAS, the Developer intends to apply for a parcel map to divide the Property into four parcels and Citation intends to apply for a tentative map to further subdivide two of the parcels; WHEREAS, the City's Inclusionary Zoning Ordinance (the "Inclusionary Ordinance") requires that 12.5% of the units in a new residential for-sale or rental development project consisting of20 units or more must be affordable to households with very low-, low-, or moderate incomes, and of these affordable units, 30% must be very low-income units, 20% must be low-income units and 50% must be moderate- income units; WHEREAS, the Inclusionary Ordinance also requires the affordable units (1) to be constructed concurrently with the market-rate units; (2) to reflect the range of numbers of bedrooms provided in the project as a whole; (3) to not be distinguished by exterior design, construction, or materials; and (4) to be reasonably dispersed throughout the project; WHEREAS, the Inclusionary Ordinance requires qualified owners and tenants to be selected pursuant to the preference point system set forth in the Inclusionary Ordinance; WHEREAS, the City may waive the requirements of the Inclusionary Ordinance and approve alternate methods of compliance with the Inclusionary Ordinance if the applicant demonstrates, and the City Council finds, that such alternate methods satisfy the purposes of the Inclusionary Ordinance; WHEREAS, the For-Sale Component does not satisfy the number of affordable units required by the Inclusionary Ordinance, and the Rental Component exceeds the required number; 2 WHEREAS, to remedy the For-Sale Component's inconsistency with the Inclusionary Ordinance, Citation proposes that the Council consider the Rental Component and For-Sale Component as one project for purposes of the Inclusionary Ordinance; WHEREAS, the Developer requests a waiver from some of the requirements of the Inclusionary Ordinance, including permission to calculate the affordable units constructed in the Rental Component and the For-Sale Component in the aggregate for the entire development; WHEREAS, the Rental Component and For-Sale Component, in the aggregate, exceed the affordability requirement of the Inclusionary Ordinance by providing 13 additional affordable units and deeper affordability; WHEREAS, the Developer requests a waiver from the preference point requirement of the Inclusionary Ordinance so that a one-time exception would be provided to enable Existing Residents to receive express preference or priority for all affordable units in the Project; WHEREAS, the Developer requests a waiver from the requirement of concurrent construction because certain financing and regulatory constraints may impede Eden's ability to initiate construction of the affordable rental units prior to or concurrently with Citation's construction of the market-rate units; provided however, Citation will construct the affordable for-sale units concurrently with the market-rate for-sale units; WHEREAS, the Developer requests a waiver from the equivalent bedroom requirement because Citation plans to construct some 4-bedroom market-rate, for-sale units but no 4-bedroom affordable, for- sale units; WHEREAS, the Developer requests a waiver from the allocation requirement because the Rental Component is 100% affordable and therefore the affordable rental units will be clustered together; provided however, Citation will disperse the affordable for-sale units throughout the For Sale Component; and WHEREAS, any preliminary waivers to the Inclusionary Ordinance that are granted by the Council herein are not intended to be and are not final waivers because the Inclusionary Ordinance requires that waivers be granted as conditions on the parcel maps and tentative maps and the Developer has not yet submitted an application for development of the Property, including parcel maps or tentative maps. NOW, THEREFORE, BE IT RESOLVED THAT THE City Council hereby: 1. Approves the DDA and authorizes the City Manager to execute and deliver the DDA substantially in the form on file with the City Clerk; 2. Approves the provision of financial assistance to the Authority in the amount of up to $1,500,000 to assist the Authority in relocating the Existing Residents; 3. Preliminarily finds that the Developer's alternate methods of compliance with the affordability, , allocation, bedroom size, and preference point requirements of the Inclusionary Ordinance meet the purposes of the ordinance; 3 4. Preliminarily finds that the Developer's alternate method of compliance with the concurrent construction requirement of the Inclusionary Ordinance will meet the purpose of the ordinance as conditioned. 5. Preliminarily waives the affordability, allocation, bedroom size, and preference point requirements of the Inclusionary Ordinance and approves Developer's alternate methods of compliance; 6. Preliminarily conditionally waives the concurrent construction requirement of the Inclusionary Ordinance provided: (a) the affordable for-sale units in the For-Sale Component are constructed concurrently with the market rate for-sale units in the For-Sale Component to a maximum of 144 for- sale units (128 market rate units and 16 affordable units); and (b) no building permit shall be issued for any units in the For-Sale Component in excess of 144 units unless [i] Eden has secured financing for the entire Rental Component, to the satisfaction of the City Manager; [ii] Citation constructs affordable units that, together with the 16 affordable units, satisfy the Inclusionary Ordinance's requirements for the For-Sale Component; or [iii] Citation pays fees in lieu of constructing the remaining affordable units required for compliance with the Inclusionary Ordinance's 12.5% requirement for the For-Sale Component. In the event that Citation pays in lieu fees pursuant to (b ) [iii], the City will place such fees in an account and shall return such monies to Citation, with accrued interest, when Eden has secured financing for the entire Rental Component, to the satisfaction of the City Manager. 7. Directs Staff to propose to zone the Property to a Planned Development district and to include the foregoing restrictions as part of the Planned Development zoning. 8. Directs Staff to propose conditions on the parcel maps and tentative maps to implement the preliminary waivers of the Inclusionary Ordinance and the preliminary conditional waiver for the concurrent construction requirement. 9. Directs Staff to include a provision in the Affordable Housing Agreement between the City and Citation implementing the preliminary waivers of the Inclusionary Ordinance and the preliminary conditional waiver for the concurrent construction requirement. 10. Intends to grant Developer fmal waivers from the affordability, allocation, bedroom size, concurrent construction, and preference point requirements of the Inclusionary Ordinance as described herein. 11. Directs Staff to negotiate a loan agreement and related documents to provide financing to Eden or its affiliate in an amount not to exceed $1,500,000 to assist in financing the construction of affordable rental units for low-income families and low-income seniors. PASSED, APPROVED AND ADOPTED this 17th day of July 2007. AYES: Councilmembers Hildenbrand, Oravetz, Sbranti, Scholz and Mayor Lockhart NOES: None ABSENT: None ABSTAIN: None G:CC-MTGS/7-17-07/Reso 136 Arroyo Vista DDA (Item 7.1) 4