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HomeMy WebLinkAbout8.2 PCSR Comm. Benefit Agmt & Dev Agmt G��pF DpB� STAFF REPORT 1 182 PLANNING COMMISSION DATE: November 13, 2012 TO: Planning Commission SUBJECT: PUBLIC HEARING: PLPA-2012-00060, Community Benefit Agreement and Development Agreement between the City of Dublin and the Kingsmill Group/Diamond Heights Investments Report Prepared by Linda Smith, Economic Development Director and Public Information Officer EXECUTIVE SUMMARY: The Kingsmill Group/Diamond Heights Investments seeks to develop the former Crown Chevrolet site located in Downtown Dublin. Under the Downtown Dublin Specific Plan, a Community Benefit Agreement is required in order to allocate units from the Development Pool. Additionally, Kingsmill Group/Diamond Heights Investments has requested a Development Agreement to secure the future entitlements. In exchange for the allocation of residential units and the benefits in the Agreement, the developer is offering to donate a portion of their land to a non-profit affordable housing developer. RECOMMENDATION: Staff recommends that the Planning Commission: 1) Receive Staff presentation; 2) Open the public hearing; 3) Take testimony from the Applicant and the public; 4) Close the public hearing and deliberate; and 5) Adopt a Resolution recommending that the City Council adopt an Ordinance approving a Community Benefit Agreement and Development Agreement between the City of Dublin and the Kingsmill Group/Diamond Heights Investments for a Mixed-Use Retail/Residential Project. 0 f (__� Submitted By: Re ' ed By Economic Development Director Assistant Director of Community Development COPIES TO: Applicant File Q Page 1 of 5 ITEM NO.: U DESCRIPTION: The Kingsmill Group/Diamond Heights Investments, a residential development company, plans to develop the former Crown Chevrolet site at the corner of Dublin Boulevard 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 met with the Kingsmill Group/Diamond Heights Investments and their representatives on several occasions to discuss the potential project, which is envisioned to be a mixed-use residential development that will help to reshape the Downtown area. Kingsmill Group/Diamond Heights Investments has formally submitted an application to the Community Development Department and it is currently being reviewed by City Staff. The project includes two components: 1) Kingsmill Group/Diamond Heights Investments proposes to develop 314 apartment units on the northern 4.97-acre site, along with approximately 17,000 of retail space on the first floor facing towards Dublin Blvd; and 2) On the southern 1.37-acre piece, Kingsmill Group/Diamond Heights Investments proposes to partner with Eden Housing to entitle a 76-unit veteran's housing project that Eden Housing will develop, own and manage over the long term. The development of veterans housing is a key City Council Strategic Initiative. Staff presented the proposed terms of an agreement to the City Council at their June 19, 2012 meeting. The City Council directed Staff to proceed with negotiation of an agreement. Since that time, the developer has requested two minor changes to the terms. The first is the addition of four additional units on the larger parcel, which may be offset by a reduction in units for the veteran's project, as Eden may opt for different bedroom counts internal to the project. The second is the reduction of the extensions allowed from seven years to five years. This is due to Kingsmill Group/Diamond Heights Investments opting not to process a condo map with the project submittal. The purpose of development agreements "lock in" the land-use rules in effect at the time the agreement becomes effective. They give developers the certainty that they can proceed with their projects, even if the City's land use policies change in the future. While typically the City has not processed a Development Agreement in advance of a project entitlement, it is not unprecedented. The City and the Lin Family entered into a Master Development Agreement for Dublin Ranch that preceded individual development applications. This agreement would lock in the rules in effect at the present time and, further, provides that, if the project is eventually approved, the developer would have a right to proceed with the project notwithstanding any subsequent changes in City rules. Staff is requesting that the Planning Commission make a recommendation on the Community Benefit/Development Agreement at this time in order to assist Eden Housing with their timeframe for tax credit financing, which will occur in late winter/early spring 2013. The agreement will not prevent the City, including the Planning Commission, from exercising the discretion it has to review the project. In other words, the City could still, notwithstanding the agreement, deny the project if it does not meet the standards set out in the rules currently in effect. 2of5 ANALYSIS: Following is an overview of the terms of the proposed Community Benefit/Development Agreement: • Kingsmill Group/Diamond Heights Investments will receive a Development Agreement for an initial five-year term with options to extend for five additional years. The Development Agreement will vest the current General Plan land use and zoning designations and the proposed entitlement, if and when it is approved by the City. o For years 6 through 10 of the Development Agreement, Kingsmill Group/Diamond Heights Investments will pay the City $100,000 annually. • The term of the units obtained from the Development Pool is two years from the City approval of the Agreement (as further described below), unless extended by the City. • Kingsmill Group/Diamond Heights Investments will reserve 390 units of the Downtown Specific Plan's Development Pool, 314 units for their market rate project and 76 units for the proposed Eden Housing veteran's housing project. • As the community benefit for receiving units from the Specific Plan's Development Pool and as consideration for the development agreement, Kingsmill Group/Diamond Heights Investments will transfer ownership of the southern 1.37-acre site to Eden Housing for the development and construction of veteran's housing for a nominal fee. • Kingsmill Group/Diamond Heights Investments will satisfy its affordable housing obligation by way of the dedication of the land to Eden for the veteran's project. Projects within the Downtown Dublin Specific Plan (DDSP) require a Community Benefit Agreement between the Developer and the City. The Specific Plan identifies the number of residential units that may be constructed in the Plan area and establishes a pool of these units. A developer must pull units from this pool and provide a benefit to the community for the use of these units. A Community Benefit Agreement is required to ensure that a benefit is provided and establishes a timeframe in which the developer must construct the units. The units are returned to the pool at the end of the established timeframe if not constructed. A Development Agreement is not required, although there is nothing prohibiting a Developer from seeking one for their proposed project. California Government Code §§ 65864 et seq. and Chapter 8.56 of the Dublin Municipal Code (hereafter "Chapter 8.56") authorize the City to enter into an agreement for the development of real property with any person having a legal or equitable interest in such property in order to obtain certain commitments and establish certain development rights for the property. The proposed Development Agreement addresses the entire 6.34-acre area which includes the 4.97-acre site at the southeast corner of Dublin Blvd. and Golden Gate Drive and the 1.37-acre parcel at the southeast corner of St. Patrick Way and Golden Gate Drive. Subsequent proposals for development on the two parcels remain subject to the requirement for future Site Development Review (SDR) approvals. Development Agreements are approved by an Ordinance of the City Council upon recommendation by the Planning Commission. The proposed Community Benefit/Development Agreement (Attachment 1 to Exhibit A of Attachment 1) was drafted with input from City Staff, 3 of 5 the developer, and the City Attorney. Staff is requesting that the Planning Commission recommend approval to the City Council. ENVIRONMENTAL REVIEW: The project is located within the Downtown Dublin Specific Plan area, which was the subject of an Environmental Impact Report (EIR), State Clearinghouse number 20100022005. The Downtown Dublin Specific Plan Final EIR was certified by City Council Resolution No. 08-11 dated February 1, 2011. Pursuant to the California Environmental Quality Act (CEQA) Guidelines section 15168, the Community Benefit Agreement and Development Agreement is within the scope of the project analyzed in the Specific Plan EIR and no further CEQA review or document is required. A Community Benefit Agreement/Development Agreement to allocate residential development is authorized under the DDSP. The environmental impacts of the residential development authorized by such an allocation were analyzed in the Specific Plan EIR. There is no substantial evidence in the record that any of the conditions triggering supplemental environmental review under CEQA Guidelines section 15162 exists. PUBLIC NOTIFICATION: In accordance with State law, a Public Notice was mailed to all property owners and occupants within 300 feet of the proposed Project as well an expanded area which includes surrounding developments. A Public Notice was also published in the Valley Times and posted at several locations throughout the City. To date, the City has received no objections from surrounding property owners regarding the Project. A copy of this Staff Report was also forwarded to the Applicant. ATTACHMENTS: 1. Resolution recommending that the City Council adopt an Ordinance approving a Community Benefit/Development Agreement between the City of Dublin and the Kingsmill Group/Diamond Heights Investments with the Ordinance attached as Exhibit A and the Development Agreement included as Attachment 1 to Exhibit A. 4of5 GENERAL INFORMATION: PROPERTY OWNERIAPPLICANT: Keith Fichtner Diamond Heights Investment IV, LLC c/o Kingsmill Group/Diamond Heights Investments Group 4900 Hopyard Road, Suite 100 Pleasanton, CA 94588 LOCATION: 7544 Dublin Blvd. and 6707 Golden Gate Drive ASSESSORS PARCEL NUMBER: APNs: 941-1500-015-09 and 941-1500-032-02 EXISTING ZONING: Downtown Dublin Specific Plan —Transit Oriented District GENERAL PLAN DESIGNATION & DOWNTOWN DUBLIN SPECIFIC PLAN: Downtown Dublin —Transit Oriented District 5 of 5