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HomeMy WebLinkAboutReso 154-09 Positano Afford HousingRESOLUTION NO. 154 - 09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********** APPROVING AMENDMENT NO.4 TO THE AFFORDABLE HOUSING AGREEMENT FOR THE FIRST PHASE (416 UNITS) OF POSITANO TO MODIFY THE LOCATION OF THE INCLUSIONARY UNITS WITHIN PART ONE OF THE FIRST PHASE OF THE PROJECT (PA 05-038 AND PA 07-005) WHEREAS, Dublin RE Investors, LLC (the Developer) is the owner of two parcels of land 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 lnclusionary Zoning Ordinance for the entire Positano development and said proposal includes atternative 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 subsequently entered into 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 First Phase Agreement"} and Amended on June 17, 2008, November 4, 2008, and June 16, 2009, wherein the Developer agreed to construct a total of 52 affordable units (11 single-family detached homes and 41 secondary units); and WHEREAS, the Agreement specifies the level of affordability (moderate-income, low- income, and very low-income units are proposed), the location of the required detached and secondary units, and the phases of the Project within which the affordable units must be completed; and WHEREAS, the City and Developer are parties to a subsequent Affordable Housing Agreement to satisfy the affordable housing obligation for future phases of Positano; and WHEREAS, Braddock and Logan, on behalf of Dublin RE Investors, LLC (the Developer) has requested an amendment to the First Phase Agreement to (a) change the location of two of the secondary units and (b) make non-substantive revisions to the First Phase Agreement's provisions that require construction of the Inclusionary Units concurrently with the market-rate units; and Page 1 of 2 WHEREAS, the Project has been found to be Categorically Exempt from the California Environmental Quality Act (CEQA}; and WHEREAS, a Staff Report dated October 20, 2009, 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 consider all said reports, recommendations and testimony. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve Amendment No. 4 to the Affordable Housing Agreement for the First Phase (416 units) of Positano attached hereto as Exhibit A. BE IT FURTHER RESOLVED that the City Manager is authorized to execute Amendment No. 4 to the Affordable Housing Agreement attached hereto as Exhibit A. PASSED, APPROVED AND ADOPTED this 20th day of October 2009, by the following vote: AYES: Councilmembers Biddle, Hildenbrand, Scholz, and Mayor Sbranti NOES: Councilmember Hart ABSENT: None ABSTAIN: None J,~. Mayor ATTEST: City Clerk Reso No. 154-09, Adopted10-20-09, Item 4.7 Page 2 of 2 AMENDMENT N0.4 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 (416 Residential Lots) of the Fallon Village Project THIS AMENDMENT N0.4 TO AFFORDABLE HOUSING AGREEMENT is hereby entered into this _th day of , 2009 by and between the City of Dublin ("the City") and Dublin RE Investors, LLC, a California limited liability company and Braddock & Logan Group II, L.P., a California limited partnership (collectively, "the Developer"). • Recitals 1. City and Dublin RE Investors are parties to an Affordable Housing Agreement for the Construction of Inclusionary Units and Payment of Fees In Lieu of Constructing Inclusionary Housing Units, dated June 5, 2007, as amended by the First Amendment to said agreement, dated June 17, 2008, by Amendment No. 2 to said agreement, dated November 4, 2008, and by the Amendment No. 3 to said agreement, dated June 16, 2009 ("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 416 of the 1043 residential lots (the "Project"). Dublin RE Investors has conveyed some of the residential units subject to this Agreement to Braddock & Logan Group II, L.P., which has become a party to this Agreement. 2. The Agreement requires, among other things, that Developer construct 31 Inclusionary Units in "Part One of the Expanded First Phase" in the locations depicted in Exhibit 3. Developer now desires to alter the location of two of the thirty-one units, and the City is agreeable to the proposed change in location. 3. The City is agreeable to the amendment proposed by the Developer, and the City Council hereby finds that the alternate method of complying with the Regulations for the 416- unit Expanded First Phase continues to meet the purposes of the Regulations. NOW, THEREFORE, Developer and City for themselves and their respective successors and assigns hereby agree as follows: Section 1. Amendment of Section 3 0, f the Agreement. Section 3 of the Agreement is amended to read as follows: " 3. Developer's Compliance with Affordable Housing Obligation. Developer intends to complete the First Phase in two phases, as follows. a. Part One of Expanded First Phase (Initia1247 Residential Parcels). Developer has identified a 247-lot portion of the Project, which is depicted in Exhibit 2, that is referred to herein as "Part One of the Expanded First Phase." Developer will satisfy its Affordable Housing Obligation for Part One of the Expanded Amendment No. 4 Affordable Housing Agreement First Phase of Positano Project October 20, 2009 EXHIBIT A TO Z l~ I °b 2~ o First Phase by (a) constructing 31 Inclusionary Units (one (1) 1-bedroom, very low- income, Second Unit; seven (7) 1-bedroom, low-income Second Units; twenty-one (21) studio, very low-income Second Units; one (1) 4-bedroom, low-income Integrated Unit; and one (1) 4-bedroom, moderate-income Integrated Unit; (b) making a $958.77 community benefit payment prior to issuance of each building permit in Part One of the First Phase as provided in Section 5 of the Agreement. Exhibit 3 shows, in two separate diagrams, the location and type of the Inclusionary Units to be constructed within Part One of the Expanded First Phase. b. Part Two of Expanded First Phase (Subsequent 169 Residential Parcels). Developer has identified a 169-lot portion of the Project, which is depicted in Exhibit 2, that is referred to herein as the "Part Two of the Expanded First Phase." Prior to development on, and approval of subsequent final maps that include, Part Two of the Expanded First Phase, Developer shall have received the approval of the Community Development Director of a Diagram of Location of Additional Inclusionary Units in the Expanded First Phase of the Project, in a form similar to Exhibit 3 attached hereto ("the Subsequent Location Diagram"). Upon the Community Development Director's approval, the Subsequent Location Diagram shall be added to Exhibit 3 to this Agreement with respect to the Integrated Units to be constructed in connection with Part Two of the Expanded First Phase. In approving the revised Exhibit 3, the Community Development Director shall find (a) that the revised Exhibit 3 shows 12 additional very low-income, Second Units and 9 additional moderate-income, Integrated Units; and (b) that the 21 Inclusionary Units are "reasonably dispersed" throughout the Expanded First Phase, as required by Section 8.68.030.E of the Regulations. Developer hereby agrees that it will not assert the provisions of Government Code section 66458 to require the City to approve additional phased final maps (beyond those for the creation of the 416 residential parcels in the Expanded First Phase) until such time as it has satisfied the requirements of this Subsection. c. Section 8.68.030 of the Regulations requires that all affordable units in a project be constructed concurrently with a project or phase of a project. If the Building Official or Community Development Director determines that the Inclusionary Units have not been or are not being constructed concurrently with the market-rate units in a particular phase, the Building Official shall withhold further issuance of building permits in the phase until construction of the Inclusionary Units in the phase has been completed to the satisfaction of the Community Development Director." Section 2. Amendment to Section 20 of the Agreement. Section 20 of the Agreement is amended to read as follows: " 20. Exhibits. The following documents are referred to in this Agreement and are attached hereto and incorporated herein as though set forth in full: Exhibit 1 Property Description of the Property Exhibit 2 Diagram of the First Phase of the Project Amendment No. 4 Affordable Housing Agreement First Phase of Positano Project October 20, 2009 ~~ r G~J 2~ U Exhibit 3 Diagram of Location of Inclusionary Units in the First Phase of the Project Exhibit 4 Deleted Exhibit 5 Single Family GreenPoint Checklist Exhibit 6 Layperson's Guide to the Inclusionary Zoning Ordinance Regulations Exhibit 7 Resale Restrictions and Option to Purchase Agreement Exhibit 8 Secondary Unit Regulatory Agreement Exhibit 9 Memorandum of Affordable Housing Agreement for the Construction of Inclusionary Units and the Payment of Fees In- Lieu of Constructing Inclusionary Housing Units" Section 3. Amendment of Exhibit 3. Exhibit 3 of the Agreement is hereby replaced with Exhibit A to this Agreement. Section 4. Deletion of Exhibit 4. Exhibit 4 of the Agreement is hereby deleted. Section 5. Revised Memorandum ofAgreement to Be Recorded. Developer and City shall execute and acknowledge a revised Memorandum of this Agreement ("Memorandum") substantially in the form attached hereto as Exhibit B, and City shall cause the Memorandum to be recorded in the Official Records of Alameda County upon its execution. This Memorandum shall supersede and replace the Memorandum referenced in the Original Agreement. Section 3. All other provisions of the Agreement shall remain in effect. [EXECUTION PAGE FOLLOWS) Amendment No. 4~Affordable Housing Agreement First Phase of Positano Pro}ect October 20, 2009 r~ ~ ~~,, ~j7 ~7C~ IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and yeaz first above written. CITY OF DUBLIN By: Joni Pattillo, City Manager Attest: Caroline Soto, City Clerk Approved as to form John Bakker, City Attorney DUBLIN RE INVESTORS, LLC a California limited liability company By: Braddock and Logan Services, Inc. a California corporation Its Manager B _ Name: c~ ~t~K.*~ s: ~;v BRADDOCK & LOGAN GROUP II, L.P. A California limited partnership By: Braddock and Logan Services, Inc. a California corporation Its General Partner ~~ , ~'~ t~.~1'tb-vc~' Its: ~ to Amendment No. 4 Affordable Housing Agreement First Phase of Positano Project 4 October 20, 2009 Z~~~b ~~a EXHIBIT A Revised Exhibit 3 to the Agreement ["Diagram of Location of Inclusionary Units in the First Phase of the Project"] }^a~~ O fr ?E~ ~' ~ ~y ~ N 4 O~ a - 0 ,~ u ~ ~~gg,! w ~ 3 Z `,~`~~, ,~ o ~j ~ ~ . N U ~i~E 33.:~d ~ ~ ~ ~ ~ GQ a ~ a ~ ~ ~ ~ oo ~ -- ~ ~ M ~ O ~' o A A ~ Y ~ti ~~ E ~ E a+ ~ °o ~ °o w ,~ ~ .. ~ r+ ,~ a~ tV .a cti ~ 'Z ~ .n ~ y ~ > N b O Qa i RI ~ o OV ] ~ cC Lam'.' ~ a+ i+ U ~ c ~~ ~ O ~ .S~ Fr ~ ~ A ~~ o~ ~~ og 3~ ~ a+~j,~ W W ~ 1 1 1 'p ~ ~ ~ ~ W '~ 5~ O ~ me3 ~, ~, o. ~.o 'z b N J O ~d 'O y0 °i ~ id r ~ ~ ~ D o Q ~* ~ %^ ~~~ ~. ~ -~;~ ~- 8 A -.. ._ :~:a ®:; .._ _ ~ ,~a,.. :x„o ~~ ~~xsb~,~. U~. 7 a~ ; '~~ ,:o ~ <~ :: ~ ~~~ ;' ~`~ b .~.~® mj~~~'. ~o~~' e~+ .~®~~: ~, ~8_ r~, o~, ~ ~: t' Z fo 5 ~27 /,, w R ~J~ C g ~ ~ O O O ~ - O .'~ ~ ~l ,..7 ~~~~ ~3~ ~ ~y ~y ,n z Q~ g ~~.. w I ~~~ !~ ~ ¢ !1~ AO ~ i N ~l ~ ~ ~L . ~~' ~~~ O O¢ y ® O ~ ~~D F \ .\ \ , W ~ u ~ A ~w r d! ~'. O ~ ~~ W E-~ .,. o v~ 5= u ~ ~ d1 'C Y s ro 3w a o b 0. n~ ..a LJ `~ . Y~ / ' G O~tiP10W 1 '~ k ~, R Q ~' 7` 3 & a s ~ ~ : `~ f ~~ ~o~ ~ V .~ I. '~4=.:- ONx3'lVS ~-~ ~'~. ,~k o _,' :7 o ~' z ~ ~ ~?~: .o _ ~_, Y 7 7 ~ ~ Y T E .y / ~~~ `f ~ ~;` O 9 0 ~ a ~ < m ° ~ z - w ~ o - 5 F a z o ~ f i < ~ 1~ I ~ SEE .-- ---__ _ ~`~/ /'~ ti U~b~. EXHIBIT B Revised Memorandum of Agreement for the Construction of Tnclusionary Units 2~~~ ~~a RECORDING REQUESTED BY: CITY OF DUBLIN When Recorded Mail To: City Clerk City of Dublin 100 Civic Plaza Dublin, CA 94568 Fee Waived per GC 27383 Space above this line for Recorder's use MEMORANDUM OF 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. (416 Residential Lots) of the Fallon Village Project This Memorandum of Affordable Housing Agreement for the Construction of Inclusionary Units and the Payment of Fees In-Lieu of Constructing Inclusionary Units (this "Memorandum") is entered into on this _ day of , 2009, by and between the City of Dublin, a municipal corporation (hereafter "City") and Dublin RE Investors, LLC, a California limited liability company, and Braddock & Logan Group II, L.P., a Califomia limited partnership (collectively, "the Developer"). 1. Pursuant to the Affordable Housing Agreement for the Construction of Inclusionary Units and Payment of Fees In Lieu of Constructing Inclusionary Housing Units, dated as of June 5, 2007, and as amended on June 17, 2008, on November 4, 2008, on June 16, 2009, and on , 2009, by and between City and Developer (the "Agreement"), the Parties have set forth their respective obligations with respect to the provision of affordable units on lands presently owned by Developer, a portion of the 1043 'residential parcel Positano Project (the "Project"), and more specifically described in Exhibit A (the "Property"). These obligations run with the land. 2.. The Agreement sets out the specific obligations for the construction of Inclusionary Units and payment of fees in lieu thereof in conjunction with the initia1416- residential parcel phase of the development of the Project ("the Expanded First Phase"). It also obligates the Developer to make a Community Benefit Payment, as described in the Agreement, prior to issuance of building permits for each residential unit (excepting Second Units) within the Expanded First Phase. Development on, and the City's approval of subsequent final maps that include, any portion of the Property beyond the Expanded First Phase shall require either an amendment to this Agreement or a subsequent affordable housing agreement ("the Subsequent Agreement") setting forth the manner in which the Regulations will be complied with for the remainder of the Project. The Agreement also contains the Developer's covenant, on behalf of itself, and its successors and assigns, that it will not assert the provisions of Government Code section 66458 to require the City to approve additional phased final maps (beyond those for the creation of the 416 residential parcels in the Expanded First Phase) until such time as it has entered into the Subsequent Agreement. . 3. Developer and City have executed and recorded this instrument to give notice of the Agreement, and the respective rights and obligations of Developer and City. The unrecorded Affordable Housing Agreement for the Construction of Inclusionary Units and Payment of Fees in Lieu of Constructing Inclusionary Housing Units is incorporated by reference in its entirety in this Memorandum. 4. This Memorandum shall bind and inure to the benefit of the parties and their respective heirs, successors and assigns, subject however to restrictions set forth in the Agreement regarding assignment. 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 DUBLIN RE INVESTORS, LLC a California limited liability company By: Joni Pattillo, City Manager By: Braddock and Logan Services, Inc. a California corporation Its Manager Attest: Caroline Soto, City Clerk Approved as to form John Bakker, City Attorney By.--.. Name: ^Fr' ~-J ~L~G~" . v~ BRADDOCK & LOGAN GROUP II, L.P. A California limited partnership By: Braddock and Logan Services, Inc. a California corporation Its General Partner y: Its: `~~'' Zoo ~ Z?c CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Q,~hh~,~ ~ ~57~ On ~ ~ C~ before me, ~ H ~~ ~ • ~r1~,~' ~~ ~ t3"f`f~a~1 Pt)P~UC Date ~"' Here Insert Name and Title o Officer R .r* r- _ personally appeared who proved to me on the basis of satisfactory evidence to be the person~Q whose name(~d subscribed to the within instrument and acknowledged to me that ~/sf~aeq executed the same ir~~s heir authorized capacity(i~, and that by~r signature on the instrument the person(`, or the entity upon behalf of which the person( acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. NANCY E. EMBREY Canmissbn # 1859710 = Notary Public - Camornia ~ Corrtra Costa County Conan. 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