HomeMy WebLinkAbout8.2 Kingsmill Group DA
STAFF REPORT CITY CLERK
File #600-60
CITY COUNCIL
DATE:June 19, 2012
TO:
Honorable Mayor and City Councilmembers
FROM:
Joni Pattillo, City Manager
SUBJECT:
Authorization of Development Agreement with The Kingsmill Group
Prepared by Linda Smith, Economic Development Director and Public Information
Officer
EXECUTIVE SUMMARY:
The Kingsmill Group seeks to develop the former Crown Chevrolet site and has requested a
Development Agreement with the City that includes the allocation of units from the Downtown
Specific Plan Development Pool. Staff will present the negotiated deal points to be included in
the Development Agreement and is requesting authorization from the City Council to proceed in
its preparation.
FINANCIAL IMPACT:
None at this time.
RECOMMENDATION:
Staff recommends that the City Council authorize Staff to prepare and process a Development
Agreement that includes the negotiated deal points summarized in this report.
Submitted By Reviewed By
Economic Development Director Assistant City Manager
DESCRIPTION:
The Kingsmill Group, a residential development company, has optioned the rights to develop the
former Crown Chevrolet site at the southeast corner of Dublin Blvd. and Golden Gate Drive.
The parcel includes two sites – a 4.97-acre site to the north and a 1.37-acre site south of St.
Patrick Way.
Staff has met with the Kingsmill Group and their representatives on several occasions to discuss
the potential project, which is envisioned to be a mixed-use residential development that will
ITEM NO. 8.2
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help to reshape the Downtown area. To date, Kingsmill has only submitted a preliminary
application for the project and will formalize a submittal in the next few months.
In summary, Kingsmill will propose to develop 310 apartment units on the north 4.97-acre site,
along with approximately 17,000 of retail space on the first floor facing towards Dublin Blvd. On
the southern 1.37-acre piece, Kingsmill is proposing to partner with Eden Housing to entitle a
76-unit veteran’s supportive housing project that Eden Housing will develop, own and manage
over the long term. The development of veteran’s housing is a key City Council Strategic
Initiative for FY 2011/12. As the project is within the Downtown Dublin Specific Plan area, in
order to develop residential units Kingsmill (and Eden) need units from the development pool
created by the Specific Plan. In order to access the development pool, Kingsmill must enter into
an agreement with the City providing community benefits in exchange. The proposed
development agreement would serve this purpose.
Staff is seeking the City Council’s input on the negotiated deal points between City staff and the
Kingsmill Group. While it is a unique request to process a Development Agreement in advance
of a project entitlement, Staff is recommending that the City Council authorize Staff to proceed
with the Development Agreement at this time in order to assist Eden Housing with their
timeframe for tax credit financing.
Proposed Development Agreement Terms
The following are the negotiated terms with the Kingsmill Group that Staff is recommending for
approval:
Kingsmill will receive a Development Agreement for an initial five-year term with options
to extend in one year increments for up to seven additional years in exchange for
community benefit payments. The Development Agreement will vest the proposed
entitlement (vesting tentative map, site development review and condominium map), as
well as the current General Plan land use and zoning designations.
To extend the term during years 6 through 10 of the Development Agreement,
o
Kingsmill would make a community benefit payment to the City of $100,000 per
year.
In years 11 and 12, Kingsmill would pay $250,000 per year.
o
Kingsmill and Eden would have access to the units from the Development Pool for two
years from the City approval of project entitlements, unless extended by the City.
Kingsmill will use 386 units of the Downtown Specific Plan’s Development Pool (310 units
for their market rate project and 76 units for the proposed Eden Housing veteran’s
housing project). If allocated, there will be 97 units remaining in the Development Pool.
In lieu of a Community Benefit payment for Development Pool units and as consideration
for entering into the Development Agreement, Kingsmill will transfer ownership of the
southern 1.37-acre site to Eden Housing for the development and construction of
veteran’s housing.
Kingsmill will satisfy its affordable housing obligation and receive credit for 38.75 units
through the development of the Eden Housing veteran’s project.
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To summarize, Staff is recommending that the City Council authorize Staff to prepare and
process a development agreement as described in this staff report. Should the City Council
authorize Staff to move forward, a Development Agreement will be formalized and will be
brought to the Planning Commission for review and recommendation to the City Council.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
Not applicable.
ATTACHMENTS:
None
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