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HomeMy WebLinkAboutReso 183-15 Trumark Homes Comm Benefit Agmt RESOLUTION NO. 183-15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * * APPROVING THE COMMUNITY BENEFIT AGREEMENT BETWEEN THE CITY OF DUBLIN AND TRUMARK HOMES LLC FOR A 60-UNIT RESIDENTIAL PROJECT AT 7144 REGIONAL STREET (PLPA-2015-00017) WHEREAS, a request has been made by Trumark Homes LLC ("Applicant") to enter into a Community Benefit Agreement with the City of Dublin for the property at 7144 Regional Street (APN 941-0305-024-00), a 2.7-acre site; and WHEREAS, the project is located within the Downtown Dublin Specific Plan area; and WHEREAS, the Applicant is proposing to construct 60 residential units on the project site; 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 Exhibit A, and titled "Community Benefit Agreement between the City of Dublin and Trumark Homes LLC." BE IT RESOLVED that the City Council hereby finds that the proposal by the Applicant to deposit $800,000 with the City to purchase Affordable Unit Credits at the rate of $100,000 per unit will fully satisfy the Inclusionary Zoning requirements (Chapter 8.68). In exchange for the deposit for the City to acquire the credits, the City Council will waive requirements of the Inclusionary Zoning Regulations, finding that the deposit to purchase credits is an "alternate method of compliance" that "meets the purposes" of the Inclusionary Zoning Regulations.. Accordingly, the City Council hereby waives the requirements of the Inclusionary Zoning Regulations as they would otherwise apply to the proposed 60-unit project. Page 1 of 2 PASSED, APPROVED AND ADOPTED this 17th day of November, 2015 by the following vote: AYES: Councilmembers Biddle, Gupta, and Wehrenberg, NOES: Councilmember Hart ABSENT: None r' ABSTAIN: Mayor Haubert 1114, 4 , �r I ►t1 ayor ATTEST: L, /Q. Q.6._ City Clerk Reso No. 183-15,Adopted 11-17-15, Item 7.1 Page 2 of 2 CITY OF DUBLIN COMMUNITY BENEFIT PROGRAM AGREEMENT This Community Benefit Program Agreement("Agreement")is entered into on this day of 2015, by and between the City of Dublin, a municipal corporation ("City") and Trumark Homes 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 No. 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 1,320,220 square feet of non-residential development, 150 hotel rooms, and 2,500 residential dwelling units(collectively"the Excess Capacity")apportioned between the three districts in the Specific Plan Area. The 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 proposes to develop certain property at 7144 Regional Street("the Property"),which is within the Retail District of the Specific Plan Area, and as part of its proposal desires to develop a project consisting of 60 residential condominium townhome units in nine (9) individual buildings with related parking, landscape, hardscape, and on-site amenities ("the Project"). In exchange for the use of this excess development capacity in the form of residential units, Developer proposes to provide$1,000,000("the Community Benefit"). E. Developer proposes to satisfy the requirements of Chapter 8.68 (Inclusionary Zoning Regulations) by applying Affordable Unit Credits that this agreement obligates it to purchase through the City for$100,000 per Affordable Unit Credit. The inclusionary requirement for a 60- unit residential project is eight units,and therefore the Applicant will deposit$800,000 with the City to purchase the Affordable Unit Credits to fully satisfy the requirements of Chapter 8.68. This payment will be due at the time of Final Map approval. F. Developer has applied for, and the Planning Commission has approved, contingent upon City Council approval of a Community Benefit Program Agreement, a Site Development Review (Planning Commission Resolution No. ), Vesting Tentative Map (Planning Commission Resolution No. ), and a Conditional Use Permit (Planning Commission Resolution No. which approval, together with any approvals or permits now or hereafter issued with respect to the Project are referred to as the"Project Approvals." G. 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, the scope and nature of excess development capacity to be granted to Developer in exchange for said Community Development, the Developer's obligation to purchase Affordable Unit Credits to satisfy its affordable housing obligation, and the City Council's approval of the use of the Affordable Unit Credits under City Code Section 8.68.040(D). 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 is first date on which all of the following have occurred:(a)its approval by Developer, (b)its approval by City,and(c) City's approval of the Project. 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 and deposited funds with the City for the purchase of Affordable Unit Credits as provided in Section 3 of this Agreement, 2) any of the Project Approvals expires, or 3) two years after the Effective Date. 3. Community Benefit to Be Provided By Developer. 3.1 Developer shall provide the following Community Benefits to the City: 3.1.1 At City's election,which shall be given no later than April 1,2016,the design and installation of a single full Trash Capture Unit on the 36"storm drain line that runs along Regional Street and discharges into the Zone 7 culvert. If the City so elects,it shall provide Developer with written confirmation that either(1)the private property owner has authorized the Developer to perform such work or(2)the existing drainage easement authorizes the performance of such work by a party other than the City. This unit would be placed on private property already within an existing drainage easement. This unit will treat the area south of Dublin Blvd.and north of 1-580 between San Ramon Road and Regional Street. The Trash Capture Unit shall be installed prior to issuance of the last building permit for the Project and in any event no later than July 1,2017. In no event shall the City,if it makes the election described in this paragraph,be required to issue the last building permit unless the Trash Capture Unit has been installed. 3.1.2 A cash contribution of the difference between the cost of design and installation of the Trash Capture Unit referenced in Section 3.1.1 and$1,000,000 or,if City does not elect to have the Trash Capture Unit designed and installed,cash contribution of $1,000,000. The Developer shall provide the cash contribution in two installments. The first,consisting of$500,000,shall be made prior to the approval of the final map,which approval the City may withhold if the payment has not been made. The second,consisting of the remainder,shall be made prior to issuance of the last building permit for the Project. In no event shall the City be required to issue the last building permit unless the Community Benefit cash contribution has been provided to the City. 3.2 Notwithstanding anything to the contrary in Chapter 8.68 of the Dublin Municipal Code (the"Inclusionary Zoning Regulations"),Developer shall satisfy its 8-unit affordable housing obligation for the 60 residential units proposed through the application of the 8 Affordable Unit Credits which may be purchased from either the City or Dublin Family, L.P.,an affiliate of Eden Housing,Inc.("Eden")created as a result of Eden's construction of an affordable housing development in Dublin("Eden Project"). Developer shall purchase such credits by depositing$800,000 with the City no later than final map approval.The City will use the deposited funds to purchase the Affordable Unit Credits from either the City or Eden on Developer's behalf in accordance with the terms of the Regulatory Agreement. Nothing in this Agreement amends the terms of the Eden Project Regulatory Agreement with respect to Eden's rights to the Affordable Unit Credits or funds from the proceeds of the sale of such credits. Deposit of the$800,000 fully satisfies Developer's obligation under the Inclusionary Zoning Regulations for the 60 residential units. 4. Security Deposit. Within 14 days of the effective date of this Agreement, Developer shall provide to the City a deposit in the amount of $60,000. Said deposit is intended to secure the provision by the Developer of the Community Benefit described in Section 3 of this Agreement. The City will return the full amount of the deposit within 5 days of Developer's provision of said Community Benefit as required by Section 3 of this Agreement. If Developer fails to provide the Community Benefit during the term of this Agreement,the deposit shall be forfeited,and City shall have no obligation to return it to Developer. However, City shall return the entire deposit if this Agreement expires without any development of the Project by the Developer. 5. Reservation of Excess Development Capacity. 5.1 Reservation of Excess Capacity. During the term of the Agreement, and so long as each of the Project Approvals remain in effect, City shall reserve 60 units of residential housing allocated to the Retail District of the Specific Plan Area and the Affordable Unit Credits for Developer's use. If Developer fails to provide the Community Benefit during the term of this Agreement, 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. 5.2 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 and Affordable Unity Credits identified in Section 5.1 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. 6. Amendment or Cancellation. 6.1 Amendment by Mutual Consent.This Agreement may be amended in writing from time to time by mutual consent of the parties. 7. 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, unless a Party's consideration materially fails as a result. 8. 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. 9. Assignment. 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 or Affordable Unit Credits 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. 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. 10. 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: Chris Davenport Trumark Homes LLC 4185 Blackhawk Plaza Circle,Suite 200 Danville,CA 94506 11. Agreement is Entire Understanding. This Agreement constitutes the entire understanding and agreement of the parties. 12. Legal Authority. Each individual executing this Agreement 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. 13. No Third Party Beneficiaries. This Agreement is made and entered into for the sole benefit of the Parties and their successors and assigns. No other persons shall have any right of action based upon any provision of this Agreement. (Execution Page Follows] 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 DEVELOPER TRUMARK HOMES,LLC By: By: Christopher L. Foss,City Manager Attest: Caroline Soto,City Clerk Approved as to form John Bakker,City Attorney 2549598.5