HomeMy WebLinkAboutReso 168-14 Community Benefit Agreement RESOLUTION NO. 168 -14
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * ** * * ** *
APPROVING A COMMUNITY BENEFIT AGREEMENT
BETWEEN THE CITY OF DUBLIN AND BAY WEST DEVELOPMENT
PARTNERS IV, LLC FOR A MIXED-USE RESIDENTIAL & RETAIL PROJECT
WHEREAS, a request has been made by Bay West Development Partners IV LLC
("Applicant") to enter into a Community Benefit Agreement with the City of Dublin for the property
known as the former Crown Chevrolet site, comprised of APNs 941-1500-015-09 and 941-1500-032-
02, a 6.34-acre site; and
WHEREAS, the project is located within the Downtown Dublin Specific Plan area; and
WHEREAS, the Applicant is proposing to construct 314 residential units with 17,000 square
feet of commercial/retail space on a 4.9-acre site and a 72-unit affordable housing project with
preference for households with military veterans on a 1.37-acre site within the Downtown Dublin
Specific Plan area; and
WHEREAS, 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 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 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.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Dublin approves,
and authorizes the City Manager to execute, the Community Benefit Agreement, attached hereto as
Attachment 1 to Exhibit A, and titled "Community Benefit Agreement between the City of Dublin and
Bay West Development Partners IV, LLC."
BE IT RESOLVED that the City Council hereby finds that the proposal by the Applicant to
dedicate land (Parcel B) for the development of a 72-unit residential rental project primarily for
veterans and low income households is an alternate method of complying with the Inclusionary
Zoning Regulations for the 314-unit project on Parcel A that is consistent with the purposes of the
Inclusionary Zoning Regulations the reasons that follow:
1. The associated Community Benefit Agreement will ensure that the dedicated land is developed
with an affordable housing project that is consistent with the purposes of the Inclusionary
Zoning Regulations (Chapter 8.68 of the Municipal Code).
2. The nominal price at which Parcel B will be transferred will facilitate the development of the
affordable housing project.
Page 1 of 2
Accordingly, the City Council hereby waives the requirements of the Inclusionary Zoning Regulations
as they would otherwise apply to the proposed 314-unit project on Parcel A.
PASSED, APPROVED AND ADOPTED this 7th day of October, 2014 by the following vote:
AYES: Councilmembers Biddle, Gupta, Hart, Haubert, and Mayor Sbranti
NOES: None
ABSENT: None
ABSTAIN: None
Attj
Mayor
ATTEST:
6, 6
City Clerk
Reso No. 168-14,Adopted 10-7-14, Item 4.8 Page 2 of 2
CITY OF DUBUN COMMUNITY BENEFIT PROGRAM AGREEMENT
WITH BAY WEST DEVELOPMENT PARTNERS IV LLC
This Community Benefit Program Agreement("Agreement") is entered
into on this 7th day of October 2014, by and between the City of Dublin, a
municipal corporation ("City") and Bay West Development Partners IV LLC, a
California limited liability company ("Developer"). City and Developer are,
from time-to-time, individually referred to in this Agreement as a "Party,"and
are collectively referred to as "Parties."
RECITALS
A. On February 1, 2011, the City adopted Resolution 9-11 establishing
a "Downtown Dublin Specific Plan" (the"Specific Plan"), which sets forth a
comprehensive set of guiding principles, standards, and design guidelines for the
implementation of future development in Downtown Dublin ("the Specific Plan
Area").
B. The Specific Plan regulates the density of development allowed in
the Specific Plan Area by establishing a "Base Floor Area Ratio (FAR)"for
development in each of the three districts within the Specific Plan Area.
C. The Specific Plan also establishes a pool of additional development
potential, in the form of 2,262,540 square feet of non-residential development
and 2,500 residential dwelling units (collectively the "Excess Capacity" or the
"Development Pool")apportioned between the three districts in the Specific Plan
Area. The Development Pool can be used by developers that wish to develop a
project that exceeds the Base FAR up to a defined "Maximum FAR" and by
developers that wish to develop residential dwelling units. Developers wishing to
utilize said Excess Capacity must participate in the Community Development
Program and enter into a Community Benefit Program Agreement with the City.
D. Developer desires to develop certain real property consisting of
approximately 6.43 acres of land, located in the City of Dublin, County of
Alameda, State of California, which is more particularly described in Exhibit A
attached hereto and incorporated by reference, and which real property is
hereafter called the "Property."As shown in detail on Exhibit A, the Property is
comprised of two separate but adjacent parcels: (i) "Parcel A,"which consists of
approximately 4.97 acres, and (ii) "Parcel B,"which consists of approximately
1.37 acres.
E. Developer seeks units from the Development Pool in order to
construct a mixed-use project on Parcel A and Parcel B, which are the former
2324877.3
Bay West Community Benefit Agreement
Page 1 of 10
Crown Chevrolet site at the corner of Dublin Boulevard and Golden Gate Drive.
Developer proposes development in two separate but related project
components: (i)The development of Parcel A with 314 market-rate residential
rental units and approximately 17,000 square feet of general commercial uses on
the first floor of the residential structure(s) along Dublin Boulevard frontage; and
(ii)The development of Parcel B with approximately 72 units of affordable rental
housing (collectively the"Project").
F. Developer anticipates that upon or in anticipation of receiving
entitlements, it will transfer Developer's interest in Parcel B to the City or to Eden
Housing Inc. a California non-profit public benefit corporation (or its controlled
affiliate, or similar affordable housing provider) ("Eden" or the "Affordable
Housing Developer").
G. In addition to satisfying the Project's obligations under the City's
Inclusionary Zoning Regulations, the transfer of the ownership of Parcel B to the
City or to Eden will serve as the Community Benefit required in exchange for the
allocation of units from the Development Pool.
H. City approved a Site Development Review (Planning Commission
Resolution No. 13-07), premised upon the City Council's previous approval of a
now-expired Community Benefit Program Agreement that this agreement
replaces, which approval, together with any approvals or permits now or
hereafter issued with respect to the Project are referred to as the "Project
Approvals."
I. The City and Developer have reached agreement with respect to
the Community Benefit and desire to express herein a Community Benefit
Program Agreement clearly setting forth the Community Benefit to be provided
by the Developer, and the scope and nature of excess development capacity to
be granted to Developer in exchange for said Community Benefit.
J. The Project is located within the Downtown 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 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 to allocate residential development is
authorized under the Downtown Dublin Specific Plan. The environmental impacts
of the residential development authorized by such 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 exist. •
2324877.3
Bay West Community Benefit Agreement
Page 2 of 10
NOW, THEREFORE, with reference to the foregoing recitals and in
consideration of the mutual promises, obligations and covenants herein
contained, City and Developer agree as follows:
AGREEMENT
1. Relationship of City and Developer.
It is understood that this Agreement is a contract that has been negotiated
and voluntarily entered into by the City and Developer and that the Developer is
not an agent of the City. The City and Developer hereby renounce the existence
of any form of joint venture or partnership between them, and agree that nothing
contained herein or in any document executed in connection herewith shall be
construed as making the City and Developer joint venturers or partners.
2. Effective Date and Term.
2.1 Effective Date. The effective date of this Agreement shall be
October 7, 2014.
2.2 Term. The term of this Agreement shall commence on the
Effective Date and shall extend until the earlier of the following: 1)the
Developer has provided the Community Benefit to the City as provided in
Section 3 of this Agreement or 2) the Residential Allocation Term (as defined
in Section 3.6) expires without any building permits having been issued .,
3. Community Benefit to Be Provided By Developer. Affordable Housino.
3.1 General. Developer shall provide the following Community
Benefit to the City: the Developer will transfer ownership of Parcel B to the City or
to the Affordable Housing Developer(the"Community Benefit"). The Developer
shall provide the Community Benefit no later than the time of issuance of the first
building permit for the Project. In no event shall the City be required to issue a
building permit unless the Community Benefit has been provided to the City.
3.2 Compliance with Inclusionary Zoning Reaulations for Development
on Parcel A. Chapter 8.68 of the Dublin Municipal Code, known as the
Inclusionary Zoning Regulations ("the Regulations"), requires that residential
projects with 20 or more units contain 12.5% affordable units as defined. Forty
percent of a development's obligation may be satisfied through the payment of a
fee in lieu of construction, and the remainder of the obligation (7.5% of the units
in the project) must be satisfied through the on-site or off-site production of the
units, land dedication, or the use of credits. Under the Regulations, if Developer
constructs the maximum number of units on Parcel A contemplated by this
Agreement, its affordable housing requirement would be 39 units. Developer in-
2324877.3
Bay West Community Benefit Agreement
Page 3 of 10
tends to fully satisfy its obligations by way of the nominal-price sale of land
required by this Section 3. The City agrees that this nominal-price sale shall be
deemed to satisfy Developer's affordable housing obligations under the
Inclusionary Zoning Regulations for the development of up to 314 units on Parcel
A. More specifically, pursuant to section 8.68.040.0 of the Dublin Municipal
Code, the Developer's affordable unit obligation with respect to the residential
development of up to 314 market-rate units proposed on Parcel A will be satisfied
by virtue of the proposed nominal-price sale. Any development on Parcel A in
excess of 314 units will be subject to the requirements of Chapter 8.68 of the
Dublin Municipal Code. The City Council has separately made the findings
required by Section 8.68.040.0 or has waived such requirements in whole or part
under Section 8.68.040 E.
3.3 Treatment of Affordable Unit Credits Created by Development on
Parcel B. The parties agree that any"affordable unit credits" created by virtue of
the construction of affordable housing on Parcel B will be controlled by the owner
of the affordable housing site (the City or the Affordable Housing Developer).
The value created by these credits may be sold to help off-set the costs of the
off-site work that the City or the Affordable Housing Developer is likely to incur.
3.4 Community Benefit From Affordable Housing. City recognizes that
Developer's sale of Parcel B for a nominal price to Eden for the use described
above is a qualifying "Community Benefit" under the Specific Plan, as it will assist
Eden, or its successor, to pursue successfully the development of affordable
rental housing units primarily for veterans and low income households on Parcel
B. The Dublin community and the Specific Plan Area will benefit significantly from
the provision of such affordable housing, as set forth in greater detail in the
Dublin General Plan's Housing Element. No other Community Benefit payments
or requirements shall be imposed on Developer in exchange for the residential
allocations.
3.5 Grant of Residential Allocations. As of the Effective Date, as
defined in Section 2.1, and for the term specified in Section 2.2, City shall grant
the following Residential Allocations out of the Residential Allocation Pool
established by the Specific Plan. City may make the right to construct residential
units under the Project Approvals conditional upon the nominal sale of Parcel B.
The term "Residential Allocation" as used in the Agreement means an allocation
of the right to construct residential units from the Residential Allocation Pool
established by the Specific Plan. Upon the transfer of ownership described in
section 3.1, the City shall grant the following Residential Allocations:
2324877.3 .
Bay West Community Benefit Agreement
Page 4 of 10
3.5.1 Parcel A. Parcel A shall receive an allocation of the
residential units proposed thereon in the Project Approvals, not to exceed 314.
3.5.2 Parcel B. shall receive an allocation of residential units
proposed thereon in the Project Approvals, not to exceed 72.
3.6 Residential Allocation Term. Once granted, the "Residential
Allocations" provided by the Community Benefit provisions of this Agreement
shall extend until two (2) years from the Effective Date ("the Residential
Allocation Term"). It is acknowledged that Developer shall not have a right to
the Residential Allocations until such time as it has transferred Parcel B in
accordance with Section 3. Notwithstanding the foregoing, if a building permit
for a residential structure has been issued by City, and if the construction of a
structure related to residential uses has been commenced on Parcel A and/or
Parcel B within said two-year Residential Allocation Term, then the
Residential Allocation Term for the development on the particular parcel for
which the permit was issued shall be extended for the life of the building
permit and any extensions thereto. This section 3.6 shall survive termination
of the Agreement.
2324877.3
Bay West Community Benefit Agreement
Page 5 of 10
3.7 Reservation of Excess Capacity. During the Residential Allocation
Term, and only so long as each of the Project Approvals remain in effect, City
shall reserve 386 units for Developer's use. If Developer fails to provide the
Community Benefit during the term of this Agreement, or if Developer provides
the Community Benefit but fails to obtain building permits for all or a portion of
the units within the Residential Allocation Term, the Excess Capacity reserved for
Developer shall revert to the pool maintained by the City and will be available to
other developers on a"first come, first served" basis.
3.8 Limitation on City's Obligation. This Agreement shall not be
construed to require the City to issue any Project Approval to the Developer. City
is solely required to reserve the Excess Capacity identified in Section 3.6 of this
Agreement. Other than this obligation, nothing in this Agreement shall prevent
the City from denying or conditionally approving any subsequent land use permit
or authorization for the Project. All of City's applicable ordinances, resolutions,
rules, regulations and official policies shall apply to the Project including, but not
limited to, those governing the permitted uses of the Property, design and
construction of the Project, density and intensity of use of the Project, and the
maximum height, bulk and size of proposed buildings within the Project.
4. Amendment or Cancellation.
4.1 Amendment by Mutual Consent. This Agreement may be amended
in writing from time to time by mutual consent of the parties.
5. Severability.
The unenforceability, invalidity or illegality of any provisions, covenant,
condition or term of this Agreement shall not render the other provisions
unenforceable, invalid or illegal.
6. Attorneys' Fees and Costs.
If the City or Developer initiates any action at law or in equity to enforce or
interpret the terms and conditions of this Agreement, the prevailing party shall be
entitled to recover reasonable attorneys' fees and costs in addition to any other
relief to which it may otherwise be entitled. If any person or entity not a party to
this Agreement initiates an action at law or in equity to challenge the validity of
any provision of this Agreement, the parties shall cooperate in defending such
action. Developer shall bear its own costs of defense as a real party in interest in
any such action, and shall reimburse the City for all reasonable court costs and
attorneys' fees expended by the City in defense of any such action or other
proceeding.
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Bay West Community Benefit Agreement
Page 6 of 10
7. Assianment.
Developer may wish to sell, transfer or assign all or portions of the
Property to other developers(each such other developer is referred to as a
"Transferee"). In connection with any such sale, transfer or assignment to a
Transferee, Developer may sell, transfer or assign to such Transferee some or all
of the Excess Capacity reserved under this Agreement, so long as said transfer
would not result in development of the Property in excess of the Maximum FAR.
No such transfer, sale or assignment of Developer's rights, interests and
obligations hereunder shall occur without prior written approval by the City, which
shall not be unreasonably withheld or delayed. The City Manager shall consider
and decide on any transfer, sale or assignment within ten (10)days after
Developer's notice, provided all necessary documents, certifications and other
information are provided to the City Manager to enable the City Manager to
determine whether the obligations incurred by Developer pursuant to this
Agreement will be fully satisfied, if the proposed sale, transfer or assignment
isapproved.
8. Notices.
All notices required to be given to City under this Agreement shall be in
writing and shall be addressed as follows:
City Manager
City of Dublin
100 Civic Plaza
Dublin, CA 94568
FAX No. (925)833-6651
All notices required to be given to Developer under this Agreement shall
be in writing and shall be addressed as follows:
BWD Dublin LLC
2 Henry Adams Street Suite 450
San Francisco CA 94103
Fax: 415-552-7760
•
2324877.3
Bay West Community Benefit Agreement
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9. Agreement is Entire Understanding.
This Agreement constitutes the entire understanding and agreement of the
parties, with respect to the subject matter hereof.
10. Legal Authority.
Each individual executing this Agreement on behalf of Developer hereby
represents and warrants that he or she has full power and authority under the
entity's governing documents to execute and deliver this Agreement in the name
of and on behalf of the company and to cause the entity to perform its obligations
under this Agreement.
[EXECUTION PAGE IMMEDIATELY FOLLOWS]
2324877.3
Bay West Community Benefit Agreement
Page 8 of 10
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 BAY WEST DEVELOPMENT
PARTNERS IV, LLC
By:
Christopher L. Foss, City Manager By:
Its:
Attest:
Caroline Soto, City Clerk
Approved as to form
John Bakker, City Attorney
2324877.3
Bay West Community Benefit Agreement
Page 9of10
1
EXHIBIT A
(Attach site description)
2324877.3
Bay West Community Benefit Agreement
Page 10 of 10
Title No.11-5e038605-A-SC
Locate No CACrI7701-7707-2386-0059038605
LEGAL DESCRIPTION •
Parcel A
THE LAND REFERRED TO HEREIN BELOW IS SITUATED CITY OF DUBLIN,COUNTY OF ALAMEDA,STATE OF
CALIFORNIA,AND IS DESCRIBED AS FOLLOWS:
Beginning at the intersection of the Northeastern line of the land described as Parcel 2 in the Deed by 3.
Clayton Orr,etal.,to Motel Interstate Systems,Inc.,dated April 30,1959,recorded June 8,1959 in Book 9052
of dal of Alameda County Page 82,Instrument No.AQ/67605,with a lire drawn parallel with the
center line of Dublin Boulevard,fbmierly Dublin Road,60 feet ii width,and dl Cant Southeasterly 42 feet,
measured at right angles therefrom,running thence along said parallel line,South 69°08'15"West 355.82
feet;thence tangent to the last named line Southwesterly along a curve to the kit having a radius of 42 feet,
through an angle of 90°,a distance of 65.97 feet;,thence tangent to the last named curve,South 20°51'45'
East 502.50 feet;thence North 69°08'15"East 400 feet to said Northeastern fine of said land;and thence
along the last named line,North 21°05'30"West 544.50 feet to the point of beginning.
Eiaoeptbg therefran that portion described in the Rnal Order of Condemnations ircor+lad April 8, 1997 as
Instrument No.97090524.
APN:941-1500-015-09
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Title No. 12-59041637-A SC
Locate No.CACTI7701-7707-2386-0059041637
LEGAL DESCRIPTION
Parcel B
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF DUBLIN,COUNTY OF ALAMEDA,
STATE OF CALIFORNIA,AND IS DESCRIBED AS FOLLOWS:
Parcel D,Parcel Map 2621,recorded December 20, 1978,Parcel Map Book 107, Page 50,Alameda County •
Records.
Excepting therefrom that portion described in the Deeds to the County of Alameda recorded February 14,
2002,as Instruments Nos.2002073438 and 2002073439.
APN:941-1500-032-02
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