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Home My WebLink About8.1 Suspend Public Art Res~~~~ Off' nU~~~ /ii ~ 111 L~~ - ~ ~~~ DATE: TO: FROM: STAFF REPORT CITY COUNCIL CITY CLERK File # 900-30 April 3, 2012 Honorable Mayor and City Councilmembers ~~ Joni Pattillo, City Manager ° ~' SUBJECT: Sunset of Temporary Suspension of the Public Art Requirement for Residential Projects Prepared by Paul McCreary, Parks and Community Services Director EXECUTIVE SUMMARY: In April, 2009, the City Council adopted an ordinance "Temporarily Suspending the Public Art Requirement for Residential Projects in excess of 20 units" for a two year term. In April 2011 the City Council adopted another ordinance to extend the temporary suspension one more year, and the suspension will expire in May 2012. Staff was directed by the City Council to review the state of residential development in the City towards the end of the additional one year suspension, in order to make a recommendation to possibly extend the suspension for an additional period of time. The City Council Ad-Hoc Economic Development Subcommittee is recommending the temporary suspension be allowed to sunset and expire on May 19, 2012. FINANCIAL IMPACT: Since May 2009 the City has waived over $2.3 million in public art fees on residential development. Currently the Public Art Fund has an available balance of approximately $275, 000. RECOMMENDATION: Staff recommends that the City Council direct Staff to allow the temporary ordinance to expire on May 19, 2012. ;~ Submitted B Reviewed By Director of Park~and Assistant City Manager Community Services DESCRIPTION: Page 1 of 3 ITEM NO. 8.1 At the City Council meetings of April 7 and 21, 2009, the City Council introduced and adopted an ordinance "Temporarily Suspending the Public Art Requirement for Residential Projects". The ordinance was for atwo-year term and was set to expire on May 21, 2011. At the City Council meetings of April 5 and April 19, 2011, the City Council introduced and adopted another ordinance "Temporarily Suspending the Public Art Requirement for Residential Projects" for a one year term. That ordinance is set to expire on May 19, 2012. The suspension of the Public Art Requirement for Residential Projects was suggested by City Council as an economic stimulus in light of the numerous impacts the economic crisis was having on Dublin, especially regarding the notable slowdown in the pace of residential development in the City. Staff concluded that it would be worthwhile to consider implementing a temporary suspension of the City's Public Art Ordinance, codified in Chapter 8.58 of the Dublin Municipal Code, as it applies to residential developments. Staff was directed by the City Council to review the state of residential development in the City towards the end of the suspension, and to make a recommendation regarding the possibility of extending the suspension for an additional period of time. During the three year suspension the City has waived over $2.3 million in public art fees on residential developments. Staff met with the City Council Ad-Hoc Economic Development Subcommittee to review the ordinance and provide information on the impacts to date. Based on the amount of fees waived to date, and the fact that the pace of residential development is growing, the Subcommittee recommends taking no further action and allowing the ordinance to expire on May 19, 2012. Overview of Public Art Requirements on Residential Development If the City Council takes no further action, on May 20, 2012, Chapter 8.58 of the Dublin Municipal Code (the "Public Art Ordinance") will be in effect, which requires most commercial development projects and residential development projects with more than twenty units to either acquire and construct a piece of public art on or near the development site, or make a monetary contribution to the City in-lieu of constructing a piece of public art. Developers may choose which option they wish to take. The Public Art Ordinance contains an exemption for certain development projects, such as day care centers and low-income housing projects. Chapter 8.58 requires the developers of any project subject to its provisions to submit a Public Art Compliance Report-indicating whether the developer will acquire and install public art or make a monetary contribution to the City-to the Community Development Director at the time they apply for Site Development Review ("SDR") approval for the project. Section 8.104.070 of the Municipal Code, lists the required findings that must be made in order to approve an SDR application, and includes a requirement that the application comply with Chapter 8.58. Thus, in order to approve an SDR application by a project covered by the Public Art Ordinance, the approved SDR will contain a condition of approval requiring the developer to comply with either Section 8.58.070.D or Section 8.58.070.D, depending on which approach the developer has identified in its Public Art Compliance Report. The conditions of approval also make reference to the "trigger," the time at which the developer must take action on this requirement. Section 8.58.070.D of the Dublin Municipal Code provides that any developer electing to acquire and install public art at the development site must both secure completion of the public art project in a manner deemed satisfactory to the City Manager and execute an agreement with the City setting forth the ownership, maintenance responsibilities, and insurance coverage for Page 2 of 3 the public art project prior to granting of occupancy by the City of the first structure in the project. Thus, the successful completion of a final inspection of the first structure in the project by the City Building Department is the "trigger" for developers that will acquire and install public art to satisfy their obligation under the Public Art Ordinance. Section 8.58.070.C provides that any developer electing to make a contribution in-lieu of installing public art must make the payment prior to issuance of the first building permit in the project. Thus, the issuance of the first building permit is the "trigger" for developers that will make a contribution in-lieu of installing public art to satisfy their obligation under the Public Art Ordinance. The ordinances adopted in April of 2009 and May of 2011 were intended to ensure that the suspension of the public art requirement occurs only if, during the suspension period, a developer of a residential project reaches one of the two trigger points in the development process (At the successful completion of a final inspection of the first structure for art providers and upon issuance of the first building permits for in-lieu fee payers). Until that point in time, the provisions of Chapter 8.58, including the requirement to submit a Public Art Compliance Report in conjunction with site development review of the project, are still applicable. If a developer does reach the trigger point during the effective term of the existing ordinance, then its responsibility to comply with the Public Art Ordinance will be extinguished as to the project covered by the SDR. By tying the suspension to the SDR, the City ensures that, in the case of larger projects which may be proceeding in separate phases with separate SDRs, the extinguishment of the public art requirement will apply, not to the entire project at one time, but only to the portion of the overall project that is covered by the triggering SDR. The intent of the ordinance was to encourage residential construction during the current economic downturn. Thus, the City only granted a waiver of the public art requirement to developers whose projects were actually under construction during the current economic downturn and who may be deterred from commencing constructing due to the requirements of the Public Art Ordinance. This is why the ordinance applies only if a project is at the trigger point. The City did not wish to waive the requirement for development projects that would not begin construction for many years, when the economy may in better shape than it is now. The City also wanted to ensure that development projects take the necessary steps so that the developers can easily comply with the Public Art Ordinance once the provisions of the draft ordinance expire. Thus, if a developer of a residential project applies for a building permit or final inspection shortly after the term of this ordinance has expired, the developer will have a completed Compliance Report, and should be prepared to comply with the requirements of Chapter 8.58 by either installing a piece of public art at the development site or making an in-lieu payment to the City. NOTICING REQUIREMENTS/PUBLIC OUTREACH: A copy of the Staff Report was provided to the Heritage and Cultural Arts Commission, as well as the list of interested parties on City fees. ATTACHMENTS: None Page 3 of 3