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Home My WebLink About8.1 Dublin Crossing GP and Amend SP ‘Of D, i9f CITY CLERK f 8 8 2 STAFF REPORT CITY COUNCIL File #420-30 DATE: March 17, 2015 TO: Honorable Mayor and City Councilmembers FROM Christopher L. Foss, City Manager (ir , SUBJECT: General Plan and Dublin Crossing Specific Plan Amendment Study Initiation Request Prepared by Linda Smith, Assistant City Manager and Kristi Bascom, Principal Planner EXECUTIVE SUMMARY: The City Council will consider directing staff to proceed with a proposed transaction with SunCal that would result in the delivery of a 12-acre site to the City free of charge in exchange for certain land use changes. The City would be able to use the site to assist Dublin Unified School District in the acquisition and development of a school site within the Dublin Crossings Project. If the City Council directs Staff to proceed with the transaction, Staff would commence a General Plan and Dublin Crossing Specific Plan Amendment Study to: 1) Incorporate the 1.5 acre Chabot Creek into the Community Park and increase the acreage devoted to Medium Density Residential by 1.5 acres; 2) Re-designate the 13 acre "Mixed Use" site to "General Commercial/DC Medium-High Density Residential"; and 3) Allow use of the site designated "School" for both school and park purposes. The proposal would not increase the total number of residential units in the Dublin Crossings project area. The project will also involve modifications to the Dublin Crossing Development Agreement and a minor technical amendment to the Eastern Dublin Specific Plan boundary to be consistent with the Dublin Crossing Specific Plan boundary. FINANCIAL IMPACT: All costs associated with preparing the General Plan and Specific Plan Amendment Study, if authorized by the City Council, would be borne by the Applicant. If the proposal moves forward and the Development Agreement Amendments are approved, the City will forego $1.2 million in Community Benefit Payments and $2.1 million in park construction funding. RECOMMENDATION: Staff recommends that the City Council provide its feedback on the negotiated terms with SunCal and adopt the Resolution Approving the Initiation of a General Plan and Dublin Crossing Specific Plan Amendment Study to: 1) Incorporate the 1.5 acre Chabot Creek into the Community Park and increase the acreage devoted to Medium Density Residential by 1.5 acres; 2) Re-designate the 13 acre "Mixed Use" site to "General Commercial/DC Medium-High Density Residential"; and 3) Allow use of the site designated "School" for both school and park purposes. Page 1 of 4 ITEM NO. 8.1 Submitted By ' eviewed By Community Development Director Assistant City Manager DESCRIPTION: Background Staffs from the City of Dublin and the Dublin Unified School District (DUSD) maintain an ongoing dialogue regarding population growth, particularly in the Eastern Dublin, where DUSD has future school sites identified to accommodate its growing student population. In fall 2015, DUSD will open Amador Elementary School in the Positano neighborhood. The City's General Plan identifies, and DUSD is planning to utilize, two future schools sites: one located in the Jordan Ranch subdivision and one located in the future Dublin Crossing project. Despite the best efforts of former State Assemblywoman Joan Buchanan last year, a state ballot measure for school construction was not placed on the November 2014 ballot, and no solutions have been proposed by Governor Brown to bridge the construction funding gap that exists between the resources local districts have to build new facilities and the actual costs to build new schools. The lack of funding support from the State means that local school districts, like DUSD, need to find alternative solutions to the now-broken State model that has funded school construction over the years. Realizing the predicament faced by DUSD, City staff has been working closely with the DUSD staff on potential options and ways for the City to assist in bridging the gap between land acquisition costs, the current development impact fee structure set by the State, and the need to provide adequate facilities for existing students and to accommodate future student populations. In addition to this proposal which will be outlined below, Staff has also proposed a framework for the City to provide DUSD a site within the Jordan Ranch subdivision, which will be considered on tonight's agenda. This proposal would likely save DUSD approximately $33 million in land acquisition costs, which is the current land value for the Existing School Site called E-5; and would free up both current and future development impact fee revenue that could then be used towards the construction of a new school at this location. In addition, Staff has also been working on a proposal for the other remaining school site at Dublin Crossing. City Staff's Dublin Crossing Proposal The Dublin Crossing project was approved in November 2013. The project allows for the construction of up to 1,995 single- and multi-family residential units; up to 200,000 square feet of retail, office and/or commercial uses; a 30 acre Community Park; a 5-acre Neighborhood Park, and a 12 acre elementary school site to serve approximately 900 students. Due to the nature of the land exchange agreement between the developer, Dublin Crossing Venture LLC (SunCal), and the Department of the Army, it is anticipated that the multi-phased project will take 8-12 years to construct. According to the project Phasing Plan and as identified by SunCal, the 12 acre school site is in Phase 3 of the project and should become available in 2017. Unfortunately, based on the Governor's stated position that school construction bond funding will not be authorized by the State, it is unlikely that DUSD will have the ability to acquire the Page 2 of 4 WINIONMOI Dublin Crossing school site in the near term, with a current land value of approximately $36 million. City staff approached SunCal to discuss options for the City to obtain the 12-acre school site in an effort to assist DUSD. It should be noted that SunCal did not initiate these discussions, and SunCal has indicated that they are satisfied with their existing entitlements as approved. After discussion and negotiation, SunCal and City Staff have reached agreement on tentative deal terms that would allow the transfer of the future school site to the City at no cost in exchange for modifications to the entitlements for the Dublin Crossing project. To summarize, the negotiated terms require amendments to the Dublin Crossing Specific Plan and the Dublin Crossing Project Development Agreement in the following areas: Under the proposal agreed to by City Staff and SunCal, the Specific Plan would be amended to: • Incorporate the 1.5 acre Chabot Creek into the Community Park and increase the acreage devoted to Medium Density Residential by 1.5 acres • Re-designate the 13 acre "Mixed Use" site on the corner of Arnold and Dublin Boulevard to "General Commercial/DC Medium-High Density Residential", thereby removing the requirement for both the 5-acre Neighborhood Park site and a minimum of 75,000 square feet of commercial development on the site; and • Modify the designation of the 12-acre school site to allow both school and park uses. Attachment 1 illustrates the affected parcels in the Specific Plan area. Under the proposal agreed to by City Staff and SunCal, the Development Agreement would be amended to: • Remove the requirement to provide construction funding for a 5-acre Neighborhood Park ($2.143 million); • Remove requirement for the final Community Benefit Payment ($1.2 million); and • Include language related to the no-cost transfer of the school site. Details of the transfer will be further described in the amendments to the Development Agreement. Minor amendments to General Plan Section 2.5 (Dublin Crossing Planning Area) would also be needed to ensure consistency with the amended Dublin Crossing Specific Plan. Lastly, a cleanup item to the Eastern Dublin Specific Plan will update figures to reflect the adopted Dublin Crossing Specific Plan boundary. The proposed changes to the Dublin Crossing Specific Plan and Development Agreement will result in the delivery of the 12-acre school site to the City without increasing the current maximum number of housing units (1,995) allowed in the project. Staff would propose, if the City Council concurs, to ground lease the property to the School District at a price to be negotiated; and similar to the Jordan Ranch project, operate the facility as a joint School/Park site. The agreement terms between the City and DUSD remain to be negotiated and would be presented for City Council consideration at a future date. The City staff proposals, including the Jordan Ranch proposal and acquisition of the Dublin Crossing site, have a value to the community of nearly $70 million. The City and DUSD have had a long standing partnership over the years, however this is the first time that the City Council has been asked to consider land use and financial term changes to assist DUSD through this unprecedented time. Page 3 of 4 Staff recommends that the City Council provide feedback on the negotiated deal terms with SunCal and initiate a General Plan and Dublin Crossing Specific Plan Amendment Study. A draft Resolution approving the initiation of the study is included as Attachment 2 to this Staff Report. If the City Council opts to initiate the General Plan and Dublin Crossing Specific Plan Amendment Study, Staff will: 1. Prepare amendments to the General Plan, Dublin Crossing Specific Plan, Dublin Crossing Project Development Agreement, Eastern Dublin Specific Plan, and will complete the appropriate level of environmental review. 2. Begin negotiations with DUSD regarding the joint use of the Dublin Crossings school site and draft a Memorandum of Understanding (MOU) between the City of Dublin and DUSD to help DUSD obtain the rights to a site to build a school, at minimal cost, while maintaining the ability of the public to use the site for parks and recreation programs. The MOU will detail the agreement terms for the City Council and the School Board's consideration at a future date. 3. Prepare Staff Reports detailing the.necessary approvals for a recommendation by the Planning Commission and consideration by the City Council. NOTICING REQUIREMENTS/PUBLIC OUTREACH: Public noticing is not required to review a request to initiate a General Plan Amendment Study. Although not required, the City mailed notices to all property owners and tenants within 300 feet of the subject property. A notice was also published in the Valley Times and posted in the designated posting places. A copy of this Staff Report was distributed to the Applicant and Property Owner. ENVIRONMENTAL REVIEW: Staff recommends that the project be found exempt from the California Environmental Quality Act (CEQA) under Section 15306, Class 6 of the State CEQA Guidelines because initiation of a General Plan Amendment study, in and of itself, will not result in disturbance to an environmental resource. ATTACHMENTS: 1. Depiction of Proposed Changes to Dublin Crossing Specific Plan Land Use Map 2. Resolution Approving the Initiation of a General Plan and Dublin Crossing Specific Plan Amendment Study to: 1) Incorporate the 1.5 acre Chabot Creek into the Community Park and increase the acreage devoted to Medium Density Residential by 1.5 acres; 2) Re- designate the 13 acre "Mixed Use" site to "General Commercial/DC Medium-High Density Residential"; and 3) Allow use of the site designated "School" for both school and park purposes Page 4 of 4 Legend Mixed Use M DC Medium Density Residential School M DC Medium-High Residential Park _ General Commercial/DC Medium-High Density Residential M Open Space _ General Commercial/DC High Density Residential „ Project Area Boundary Allow use of t e site d es) nakke '” cho 1", 0.r,bath �c�tnerl ar�� ar[t purees , G st h 1.S acre CHaka t �•. ;OPre k dintioifrorri 'Dpenpe" and redceorrrrirrrty �. T rC nu to e o a� Gem""11 N n N Increase"acFrSage ftir" Medium-Density„ , Residential by 13 acresi. Dublin stud. Change"Mixed Use" parcel to"General Commercial/ CIO Medium-High Density ° Residential" RESOLUTION NO. xx-15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING THE INITIATION OF A GENERAL PLAN AND DUBLIN CROSSING SPECIFIC PLAN AMENDMENT STUDY TO: 1) INCORPORATE THE 1.5 ACRE CHABOT CREEK INTO THE COMMUNITY PARK AND INCREASE THE ACREAGE DEVOTED TO MEDIUM DENSITY RESIDENTIAL BY 1.5 ACRES; 2) RE-DESIGNATE THE 13 ACRE "MIXED USE" SITE TO "GENERAL COMMERCIAL/DC MEDIUM-HIGH DENSITY RESIDENTIAL"; 3) ALLOW USE OF THE SITE DESIGNATED "SCHOOL" FOR BOTH SCHOOL AND PARK PURPOSES. (APNS 986-0001-001-15 (PARTIAL), 986-0034-002-00, AND 986-0034-006-00.) WHEREAS, the City Council is considering initiating a General Plan and Dublin Crossing Specific Plan Amendment Study to: 1) Incorporate the 1.5 acre Chabot Creek into the Community Park and increase the acreage devoted to Medium Density Residential by 1.5 acres; 2) Re-designate the 13 acre "Mixed Use" site to "General Commercial/DC Medium- High Density Residential"; 3) Allow use of the site designated "School" for both school and park purposes; and WHEREAS, the General Plan and Dublin Crossing Specific Plan Amendment Study would also include amendments to the Dublin Crossing Project Development Agreement and minor amendments to the Eastern Dublin Specific Plan ensure that there is consistency on all figures between the boundaries of the Dublin Crossing Specific Plan area and the Eastern Dublin Specific Plan area; and WHEREAS, the initiation request has been reviewed in accordance with the provisions of the California Environmental Quality Act (CEQA) and was found to be Categorically Exempt under Section 15306, Class 6 of the State CEQA Guidelines; and WHEREAS, a Staff Report was submitted outlining the issues surrounding the request; and WHEREAS, the City Council did hear and consider all such reports, recommendations, and testimony hereinabove set forth, and supports the initiation of General Plan and Dublin Crossing Specific Plan Amendment Study; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the initiation of a General Plan and Dublin Crossing Specific Plan Amendment Study to: 1) Incorporate the 1.5 acre Chabot Creek into the Community Park and increase the acreage devoted to Medium Density Residential by 1.5 acres; 2) Re- designate the 13 acre "Mixed Use" site to "General Commercial/DC Medium-High Density Residential"; 3) Allow use of the site designated "School" for both school and park purposes. PASSED, APPROVED AND ADOPTED by the City Council of the City of Dublin on this 17th day of March 2015 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk