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HomeMy WebLinkAboutReso 120-08 Positano Afford House Agmt RESOLUTION NO. 120 - 08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********** APPROVING AMENDMENT NO.1 TO THE AFFORDABLE HOUSING AGREEMENT FOR FIRST PHASE (247 UNITS) OF POSITANO TO PROVIDE FOUR ADDITIONAL SECONDARY UNITS AFFORDABLE TO VERY-LOW INCOME HOUSEHOLDS IN-PLACE OF FOUR SINGLE-FAMILY DETACHED HOMES AFFORDABLE TO VERY-LOW INCOME HOUSEHOLDS (P A 05-038 AND P A 07-005) WHEREAS, Braddock and Logan, on behalf of Dublin RE Investors, LLC (the Developer) has requested an amendment to the Affordable Housing Agreement for First Phase (247 units) ofPositano to provide secondary units to satisfy the affordable housing requirement for very-low income households; and WHEREAS, Dublin RE Investors, LLC (the Developer) is the owner of two parcels ofland within Fallon Village which together are known as Positano and consists of 1,043 residential units; and WHEREAS, an Affordable Housing Agreement is required by the Inclusionary Zoning Regulations of City of Dublin Zoning Ordinance (Chapter 8.68); and WHEREAS, the Developer has proposed a comprehensive affordable housing proposal to address the requirements of the Inclusionary Zoning Ordinance for the entire Positano development and said proposal includes alternative methods of compliance with the Inclusionary Zoning Regulations; and WHEREAS, the City Council held a public meeting on October 18, 2005, to review the affordable housing proposal, and the City Council directed Staff to work with the Developer to refine the affordable housing proposal; and WHEREAS, the City and the Developer are parties to an Affordable Housing Agreement for the Construction of Inclusionary Units in the First Phase (247 units) of the Positano development, dated June 5, 2007 ("the Agreement"), wherein the Developer agreed to construct 13 single-family detached homes and 13 secondary units affordable to very-low, low, and moderate income households, and pay in-lieu fees for 5 affordable units pursuant to the requirements of Chapter 8.68 of the Dublin Municipal Code, the Inclusionary Zoning Regulations ("the Regulations"); and WHEREAS, the Agreement for the First Phase specified the level of affordability, the location of the required 13 single-family detached and 13 secondary units, and the phases of the Project within which the affordable units must be completed; and WHEREAS, a subsequent Affordable Housing Agreement is required to satisfy the affordable obligation for future phases of Positano; and WHEREAS, the Project has been found to be Categorically Exempt from the California Environmental Quality Act (CEQA); and Reso No. 120-08, Adopted 6/17/08, Item 8.2 Page 1 of2 WHEREAS, a Staff Report dated June 17, 2008, and incorporated herein by reference, described and analyzed the proposed amendment to the Affordable Housing Agreement; and WHEREAS, the City Council did use its independent judgment and considered all said reports, recommendations and testimony. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve an amendment to the Affordable Housing Agreement for the First Phase (247 units) of Positano to provide 4 additional secondary units affordable to very-low income households in-place of 4 single-family detached homes affordable to very-low income households as described in Exhibit A. BE IT FURTHER RESOLVED that the City Manager is authorized and directed to execute the amendment to the Affordable Housing Agreement included as Exhibit A. BE IT FURTHER RESOLVED that the Community Development Director is authorized to approve a Site Development Review Waiver in accordance with the Dublin Municipal Code to ensure consistency between the approved Site Development Review and the amended Affordable Housing Agreement. PASSED, APPROVED AND ADOPTED this 17th day of June, 2008, by the following vote: AYES: Councilmembers Hildenbrand, Oravetz, and Scholz, and Vice Mayor Sbranti NOES: None ABSENT: Mayor Lockhart ABSTAIN: None ,~1tJ, Vice Mayor ATTEST: ~l/~ Deputy City Clerk Reso No. 120-08, Adopted 6/17/08, Item 8.2 Page 2 of2 AMENDMENT NO.1 TO AFFORDABLE HOUSING AGREEMENT FOR THE CONSTRUCTION OF INCLUSIONARY UNITS AND PAYMENT OF FEES IN LIEU OF CONSTRUCTING INCLUSIONARY HOUSING UNITS Dublin RE Investors, a California limited liability company. First Phase (247 Residential Lots) ofthe Fallon Village Project THIS FIRST AMENDMENT TO AFFORDABLE HOUSING AGREEMENT is hereby entered into this 17th day of June, 2008 by and between the City of Dublin ("the City") and Dublin RE Investors, L.L.c., a California limited liability company ("the Developer"). Recitals 1. City and Developer are parties to an Affordable Housing Agreement for the Construction ofInclusionary Units and Payment of Fees In Lieu of Constructing Inclusionary Housing Units, dated June 5, 2007 ("the Agreement"), which agreement sets forth an alternate method of the Developer's compliance with the Inclusionary Zoning Regulations contained in Chapter 8.68 of the Dublin Municipal Code ("the Regulations") for the first 247 of the 1043 residential lots in the Project. 2. The Agreement refers to the initial 247 residential units in the Project as "the First Phase," and provides that Developer will satisfy its 31-inclusionary unit obligation in the First Phase (a) by constructing (i) 13 integrated inclusionary units (single-family homes) on 3,200 square foot lots, which would be affordable in perpetuity, rather than for 55 years as the Regulations require ("the Integrated Units"), and (ii) 13 I-bedroom, secondary dwelling units, which would be rental units and affordable in perpetuity, rather than for 55 years as the Regulations require ("the Second Units"); (b) paying fees in lieu of construction for the remaining 5 unit obligation, which Developer has previously satisfied by paying $447,060 to City on January 30, 2008; (c) making a community benefit payment prior to issuance of each building pernlit equal to $958.77 (which amount is calculated based on the proposed $1,000,000 contribution divided by the 1,043 units proposed in the Project); (d) including rear yard landscaping and energy efficiency measures to reduce the homeowners' cost of living in the 13 integrated inclusionary units; and (e) incorporating green building principles into the 26 inclusionary units. 3. The Regulations provide that 50% of the inclusionary units shall be allocated to moderate-income households, 20% to low-income households, and 30% to very low-income households, and, pursuant thereto, the 13 integrated units would be allocated as follows: 6 moderate-income units; 3 low-income units; and 4 very low-income units. 4. Because of concerns about the difficulty that very low-income purchasers would have in qualifying for financing and paying the high costs of owning single-family homes in the Project (including homeowners' association dues, geologic hazard abatement district assessments, landscaping and lighting assessments, landscape maintenance on the property, utilities, and long term maintenance), Developer has proposed amending the Agreement to Amendment No.1 Affordable Housing Agreement First Phase of Positano Project June 17,2008 replace the 4 very low-income integrated inclusionary units with 4 very low-income secondary units. 5. For the same reasons, the City is agreeable to the proposed amendment, and the City Council hereby finds that the alternate method of complying with the Regulations for the 247- unit First Phase of the Project meets the purposes ofthe Regulations. NOW, THEREFORE, Developer and City for themselves and their respective successors and assigns hereby agree as follows: Section 1. Amendment of Section 7 of the Agreement. Section 7 of the Agreement is amended to read as follows: "7. Unit Bedrooms and Size. The size ofthe Inclusionary Units shall be consistent with the Site Development Review approval of the Plamling Commission, provided however, that minor changes to unit size may be approved by the Community Development Director through a Site Development Review Waiver. The developer proposes to provide: A. 8 very low-income units (4 four bedroom Integrated Units and 4~ I-bedroom Secondary Units); B. 6 low-income units (3 four-bedroom Integrated Units, and 3 one- bedroom Secondary Units); and C. 12 moderate-income units (6 four-bedroom Integrated Units, and 6 one-bedroom Secondary Units). The City hereby finds that, while this breakdown does not reflect the range of numbers of bedrooms provided in the First Phase as a whole, as required by Section 8.68.030.E of the Regulations, the Developer's alternate method of compliance meets the purposes of the Regulations. " Section 2. Amendment of Exhibit 3 and Exhibit 4. Exhibit 3 and Exhibit 4 of the Agreement are hereby replaced with Exhibit A and Exhibit B to this Agreement. Section 3. All other provisions of the Agreement shall remain in effect. [EXECUTION PAGE FOLLOWS] Amendment No.1 Affordable Housing Agrcemcnt First Phase of Positano Project 2 June 17,2008 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year first above written. CITY OF DUBLIN Dated: "(i -c f Dd .---~ , I~/ By: l(, c,..cL.-,- . Richard C. Ambrose, City t. Attest: ~ C rc;q- City Clerk I Oepv 1j Dated: 0' /; () lots DUBLIN RE INVESTORS, LLC By: Braddock and Logan Services, Inc. a California corporation BY~~~ Its Manager: '.. 'f,.. C. e;1' "/I loA Ii 1103324.2 Amendment No.1 Affordable Housing Agrccment First Phase of Positano Projcct 3 Junc 17,2008 EXHIBIT A Revised Exhibit 3 to the Agreement ["Diagram of Location of Inclusionary Units in the First Phase of the Project"] LEGEND ~ Moderate Income - 12 units Plan 1 - Unit Lots 8, 18,23,31,38 & 72 Plan 3 - Secondary Unit Lots 16,20,30,33,35 & 64 (i) Low-Income - 6 units Plan 1 - Unit Lots 25,57 & 62 Plan 3 - Secondary Unit Lots 51, 60 & 67 ^ V ery- Low Income - 8 units ~ . Plan 3 - Secondary Umt Lots 26, 41,43,47,52, 54,59 & 69 (Positano DUBLIN, CALIFORNIA JII~h BRADDOCK.. LOGAN SERVlCES,INC, . . .' 41.55 BLACKHAWKPtAZA ClRCLE,SUITE 201. <., DANVttLE., CA 94506 . ' . TEL; (925)136-4000 FAX; (925) 648-5701 ..e Homes with Below Market Rate Secondary SITE Units DEVELOPMENT REVIEW All lots without above symbols are market-rate. INCLUSIONARY # Lot Number HOUSING * Resident Parking in EXHIBIT Driveway for Affordable March 2007 Secondary Unit Rev. May 2008 [U] Plan and Elevation ~ NOT APART @] 22 lEI [ill 21 [E) DRIVE * 15 . 17 IIill [l]] [B] 05-09-2008 1:56pm Eric: P:\ 19J19\SDR\NElCHlIlRHOOll A\.IfFORIlIIlIUlY PUH.llWG ~ 0' I 50' 100' 200' IlACDYlSIIIR ow.~~~ ~ CA (I:z=.) - ~-OIIO SHEET NUMBER 03 EXHIBIT B Revised Exhibit to the Agreement ["Preliminary Construction Schedule"] Positano First Phase Preliminary Construction Schedule MODELS o Moderate. PHASE ONE Moderate 1 1 2 6% PHASE TWO Low o Ve , .. Low Sub;;'Total BMR . Market 4 4 8 o o . Total..... 4 4 8 ......Total 13 11 2 7 33 100% . . Moderate Low. Very Low Sub-Total BMR . . Market Total Market Rate-.Neiahborhood A" 1 4 1 4 Market Rate'~ Neighborhood B..... 1 2 1 2 4'Bedroom BMR, 3 1 0 4 4 Secohda == 2 0 3 5 5 5 1 3 9 26 35 Percantage of Phase Units. 1 4% 3% 9% 26% 74% 1 00% PHASE THREE Moderate 2 3 5 14% PHASE FOUR Income Level Market Rate - Nei hborhood B Low 'VeLow Sub-Total BMR Market ..' 13 11 1 2 3 9% Low 1 1 2 6% o 4 4 12% 2 7 9 27% 24 73% nTotal.' . 16 12 3 5 36 100% PHASE FIVE Ve Low Sub-Total BMR . Market 16 12 o 1 1 3% 3 5 8 22% 28 78% Income Level Moderate '.. Low Very Low Sub-Total BMR "Market '. ..Total' Market.Rate - Neiahborhood B 1 2 1 2 PHASE SIX Income Level - Moderate Low Very Low Sub-Total BMR Market. Total Market Rate -Neiahborhood B 1 0 1 0 PHASE SEVEN Income Level . Moderate Market Rate - Nei hborhood B . Ve Low Sub-Total BMR Exhibit B PHASE EIGHT Total. 9 PHASE NINE Ne Low Sub~Total BMR:.Market. . Total. 14 14 PHASE TEN . Moderate ... I ".., I Very Low Sub-Total BMR ...Market . . Total. II MarketRate~"NeighborhoodB. I 1 3 1 3 II PHASE ELEVEN Moderate . Low . Market 8 Total 8 hborhQodB PHASE TWELVE -:- Moderate I . Low. Very Low Sub-Total BMR . Market I. T ot.iI Market Rate - NeiahborhoodB :1 I 1 0 T 1 0 PHASE THIRTEEN Moderate I . Low Very Low Sub~TotarBMR Market .1 Total Market Rate - Neighborhood B 1 I 1 1 1 1 1 PHASE FOURTEEN Moderate I .. Low .1 Very Low Sub-Total BMR ... Market I Total II Market Rate - NeiahborhoodB I I 1 2 I 1 2 II UN LOTS :::: :-:> Moderate I Low Very Low Sub-Total BMR Market 1 Total,. Market Rate- NeiahborhoodB I I 1 2 T 1 2