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HomeMy WebLinkAboutReso 41-18 Approving the Community Benefit Agreement Between the City of Dublin and Bayview Development Group RESOLUTION NO. 41 — 18 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING A COMMUNITY BENEFIT AGREEMENT BETWEEN THE CITY OF DUBLIN AND BAYVIEW DEVELOPMENT GROUP AND AN ALTERNATE METHOD OF COMPLIANCE WITH THE INCLUSIONARY ZONING REGULATIONS FOR THE ST. PATRICK WAY RESIDENTIAL PROJECT WHEREAS, Bayview Development Group has proposed the construction of a market rate apartment project in Downtown Dublin at 6700 Golden Gate Drive; and WHEREAS, the project consists of 499 apartments, including studios, one and two-bedroom units, as well as 1,500 square feet of commercial space; and WHEREAS, Bayview submitted a Site Development Review Permit application to demolish the existing partially vacant 204,624 square foot warehouse building, construct the ultimate extension of St. Patrick Way and construct a five story, 499-unit apartment community and related site improvements. The proposed project also includes a request for a Vesting Tentative Map for condominium purposes; and WHEREAS, the Planning Commission adopted Resolution 18-07 denying the Site Development Review Permit and Vesting Tentative Map 10809; and WHEREAS, Bayview appealed the action of the Planning Commission to City Council in accordance with Dublin Municipal Code Chapter 8.136; and WHEREAS, Bayview is seeking 499 units from the residential development pool and 1,500 square feet from the commercial development pool. In exchange for this allocation, Bayview will contribute community benefits in the form of off-site dedications, funding, and improvements; and WHEREAS, Bayview is acquiring and then dedicating to the City a 1.33-acre site at 6541 Regional Street as a community benefit; and WHEREAS, Bayview will provide street improvements and enhancements (estimated at $200,000) along the new segment of St. Patrick Way so that the street can function as a usable event and festival space for Downtown activation as further described in Exhibit B of the Agreement; and WHEREAS, Bayview will dedicate approximately .28 acres of a parcel north of the property to complete the right of way improvements for the extension of St. Patrick Way; and WHEREAS, Bayview will include 1,500 square feet of commercial space within the building for use as co-work space to assist small businesses, telecommuters and entrepreneurs for a period of at least five years; and WHEREAS, the term of the 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, 2) any of the Project Approvals expires, or 3) Two years after the Effective Date plus any extensions granted pursuant Section 4.2 of this Agreement; and Reso No. 41-18, Adopted 5/1/2018, Item No. 6.1 Page 1 of 2 WHEREAS, Section 8.68.040.E of the Dublin Zoning Ordinance allows the City Council, at its discretion, to waive, wholly or partially, the requirements of the Inclusionary Zoning Regulations and approve an alternate method of compliance if the applicant demonstrates, and the City Council finds, that such alternate methods meet the purposes of the Inclusionary Zoning Chapter; and WHEREAS, the purpose of the Inclusionary Zoning Regulations are to enhance the public welfare and assure that further housing development contributes to the attainment of the City's housing goals by increasing the production of residential units affordable by households of very-low, low and moderate-income and assure that the limited remaining developable land in the City's planning area is utilized in a manner consistent with the City's housing policies and needs. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby irrevocably offers Bayview 31 affordable unit credits that Bayview may use to satisfy a portion of the project's 62 affordable unit obligation under the Inclusionary Zoning Regulations. The offer will expire upon the expiration of the Site Development Review permit for the project. BE IT FURTHER RESOLVED that the City Council finds that Bayview's proposed alternate method of compliance with the Inclusionary Zoning Regulations for the remainder of the obligation (which is based on the characteristics of the project) meets the purposes of the Inclusionary Zoning Regulations for the following reasons: The size, location, and type of the units in the 499-unit market rate project are likely to produce housing that will be beneficial to many economic segments, both directly, by making a substantial number of units available at reasonable rents, and indirectly, by substantially increasing the supply of rental housing available in the community. BE IT FURTHER RESOLVED that the City Council of the City of Dublin hereby approves the Community Benefit Agreement between the City of Dublin and Bayview Development Group, as attached as Exhibit A to this Resolution. BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to execute the Agreement and gives the City Manager authority to execute any minor amendments to the Agreement, as needed, to carry out the intent of this Resolution. PASSED, APPROVED AND ADOPTED this 1st day of May, 2018, by the following vote: AYES: Councilmembers Goel, Gupta, Hernandez, Thalblum and Mayor Haubert NOES: ABSENT: ABSTAIN: i-004 Mayor ATTEST: C,,v„ City Clerk Reso No. 41-18, Adopted 5/1/2018, Item No. 6.1 Page 2 of 2 –1– CITY OF DUBLIN COMMUNITY BENEFIT PROGRAM AGREEMENT Bayview Development Group, 6700 Golden Gate Drive Project This Community Benefit Program Agreement (“Agreement”) is en tered into on this day _____ of ___________, 2018, by and between the City of Dublin, a municipal corporation (“City”) and Bayview Development Group, Inc., a California corporation (“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,” 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”). On May 6, 2014 and October 7, 2014, the City Council adopted, respectively, Resolution Nos. 49 -14 and 170-14 amending the Downtown Dublin Specific Plan. The Downtown Dublin Specific Plan, as amended, is herein referred to as “the Specific Plan.” 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”) apportioned between the three districts in the Specific Plan Area. The pool can be used by developers that (a) propose to develop projects that exceed the Base FAR up to a defined “Maximum FAR” and (b) propose to develop residential dwelling units. Developers utilizing 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 consisting of approximately 8.53 acres of land and buildings located in the City of Dublin, County of Alameda, State of California, which is more particularly described in Exhibit A attached hereto and incorporated herein by this reference, and which real property is hereafter called the “Property.” E. In conjunction with development of the Property, Developer proposes to convey 1.33 acres of land and buildings adjacent to the Property (“the Adjacent Property”), which property is referred to variously as 6541 and 6543 Regional Street and Alameda County Assessor’s Parcel No. 941-1500-25. F. Developer seeks units from the Development Pool in order to construct a residential project on the Property (“the “Project”). –2– I Developer has applied for a Site Development Review for the Property, which approval, if granted, together with any approvals or permits now or hereafter issued with respect to the Project are referred to as the “Project Approvals.” J 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. K. The Project is subject to and in compliance with the Specific Plan, for which a Specific Plan a Program EIR was certified by CITY in Resolution No. 08-11, and updated with the Addendum to Specific Plan EIR as adopted by CITY in Resolution No. 50-14 (“Specific Plan EIR”) pursuant to the California Environmental Quality Act, and the CEQA Guidelines promulgated thereunder (collectively, “CEQA”). Pursuant to CEQA Guidelines section 15168, this Agreement is within the scope of the project analyzed in the Specific Plan EIR and no further CEQA review or document is required. This Agreement does not impede, impair or otherwise seek to truncate or limit the City discretion in considering any future Project Approvals or conducting any future CEQA review as required by applicable law. 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 (“the Effective Date”) shall be the date upon which the City Council approves this Agreement. 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, 2) any of the Project –3– Approvals expires, or 3) 2 years after the Effective Date plus any extensions granted pursuant Section 4.2 of this Agreement. 3. Community Benefit to Be Provided By Developer. 3.1 Transfer of the Adjacent Property Developer shall provide the following Community Benefit to the City: the Developer will, for no more than a “Nominal Price,” transfer ownership of the Adjacent Property to the City (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. For the purposes of this Agreement, a “Nominal Price” shall be any sales price that is one-thousand dollars ($1000) or less (not including, and not limiting, the purchaser’s share of escrow fees, title insurance costs, transfer taxes, prorated taxes and assessments and other customary closing costs). 3.2 Community Benefit For Off-Site Dedication and Improvement and Streetscape Enhancements for St. Patrick Way. In addition to the Developer dedication of 1.52 acres of land from the Property for the construction and improvement of St. Patrick Way, Developer shall dedicate 0.28 acres of off-site land for St. Patrick Way. In addition to construction of public improvements consistent with City standards, Developer shall fund up to $200,000 of additional streetscape enhancements, including but not limited to, additional street furniture, street monumentation, decorative street lighting and other improvements as more fully set forth in Exhibit B. Pursuant to Ordinance No. __________, adopted concurrently with this Agreement, City has modified the right of way for St. Patrick Way, as depicted in Exhibit C. City recognizes that Developer’s dedication of 0.28 acres of land and construction of public improvements and streetscape enhancements qualify as a “Community Benefit” under the Specific Plan, as it will assist the City in fulfilling its General Plan, Specific Plan and Bicycle and Pedestrian Master Plan. 3.3 Community Benefit for Co-Work/Economic Development Space within Project (“Co-Work Space”). Upon occupancy of the Project, Developer shall reserve, construct tenant improvements for and operate 1,500 square feet of Co -Work Space in the Project. City recognizes that Developer’s reservation of, tenant improvements to, and operation of 1,500 square feet of Co-Work Space in the Project is a qualifying “Community Benefit” under the Specific Plan, as it will assist the City in fulfilling its General Plan, Specific Plan and Economic Development objectives. Developer will provide the Co-Work Space available to Dublin residents during hours when the leasing office is open for business for an initial five (5) year period after the certificate of occupancy for the Co -Work Space, which may be extended for an additional five (5) years upon mutual agreement between the City and Developer. –4– 3.4 Contribution of $50,000 for the Improvement of Pedestrian Access to BART. Developer shall contribute Fifty Thousand Dollars $50,000 to the City for future improvement projects, determined at City’s discretion, to improve pedestrian access to BART. City recognizes that Developer’s contribution of up to $50,000 to improve pedestrian access to BART is a qualifying “Community Benefit” under the Specific Plan, as it will assist the City in fulfilling its General Plan, Specific Plan and Bicycle and Pedestrian Master Plan. 4. Excess Capacity, Residential Allocations. 4.1 Grant As of the Effective Date, as defined in Section 2.1, and for the term specified in Section 2.2, City shall grant 499 Residential Allocations out of the Residential Allocation Pool established by the Specific Plan for the proposed development on the Property. City may make the right to construct residential units under the Project Approvals conditional upon the transfer of the Adjacent Property in accordance with Section 3.1. 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. 4.2 Term of Residential Allocations. 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”). The City Manager may, for good cause, extend the Residential Allocation Term twice for periods of six (6) months each, provided the Developer has at the time of such extension applied for a building permit. It is acknowledged that Developer shall not have a right to the Residential Allocations until such time as it has transferred the Adjacent Property in accordance with Section 3.1. Notwithstanding the foregoing, if a building permit for any structure has been issued by City, and if the construction of any structure related to residential uses has been commenced on the Property within said Residential Allocation Term or any extension period or periods, then the Residential Allocations for the development on the particular parcel for which the permit was issued shall be extend for the life of the building permit and any extensions thereto. This Section 4.2 shall survive termination of the Agreement. 4.3 Reservation. During the Residential Allocation Term, and only so long as each of the Project Approvals remain in effect, City shall reserve 499 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 –5– 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. 4.4 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 4 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. 4.5 Limitation on Developer Obligations. This Agreement shall not be construed to require the Developer to provide any Community Benefits described herein, if City does not grant Project Approvals in accordance with the Project or Developer does not develop the Project. 5. Amendment or Cancellation. This Agreement may be amended in writing from time to time by mutual consent of the parties. 6. 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. 7. 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. 8. 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 –6– 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. 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. 9. 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: Bayview Development Group, Inc. 60 South Market Street, Suite 450 San Jose, CA 95113 With copies to: Morrison & Foerster, LLP 425 Market Street San Francisco, CA 94125 Attention: Miles Imwalle Telephone: 415-268-6523 Email: mimwalle@mofo.com 10. Agreement is Entire Understanding. This Agreement constitutes the entire understanding and agreement of the parties. 11. 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. –7– 12. Exhibits. The following documents are referred to in this Agreement and are attached hereto and incorporated herein as though set forth in full: Exhibit A Legal Description and Plat of the Property Exhibit B Streetscape Improvements Enhancements Exhibit C Revised St. Patrick Way Right of Way Alignment 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 By: __________________________ Christopher L. Foss, City Manager Attest: ________________________ Caroline Soto , City Clerk Approved as to form ________________________ John D. Bakker, City Attorney DEVELOPER Bayview Development Group, Inc. __________________________ By: Its: 2928458.6 Exhibit B Streetscape Improvement Enhancements ($200,000 Value) 1. Entry monuments 2. Seat Wall 3. Stamped/Decorative Asphalt Paving and Crosswalks 4. Decorative String Street Poles and String Lights and Bulbs 5. Electrical infrastructure for electrical outlets on street light poles and string light poles and electrical connection at each street tree for lighting. 6. Drop down, manual bollard sleeves and bollards for street closures Note: Does not include value of dedication of 0.28 acres of offsite property. See conceptual plan attached. 344 1 350 9 350 3 349 9 351 0 341 3 341.2 342 7 343.63443 345.4 346 8 343 6 343 4 343 5 342 5 341 8 345 6 347 6 347.6 2 344 4 344 2 342 8 350 7 349 3 351 13478 350 5 349.7 350.3 350 2 350 5 350 6 346 3 345.3 9 350 2 350 6 350 5 349 3 351.3 350 8 350 1 351 8 352 4 351.2 352.2 352 3 354 5 354 6 354 9 355 6 356 1 355 7 354 8 355 4 350.4 351.0 351 3 351.7 351 3 351.4 352 6 353 5 352 3 353 7 354 2 355 3 355 8 338.3 338 5 338.6 338 3 353.5 343 2 339 8 339 1 339 3 340 2 340 6 341 6 339. 8 339 6 340 7 342.3 339 4 343 1 343.9 344. 9 340 2 339 8 339 5 342 2 350 345 340 3 4 0 345 350 350 3 5 5 CBCUNITINTERIOR CBCUNITINTERIOR TYPEAUNITINTERIORNON-ACCESS R3NONACCESS R3NON-ACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR R3NON-ACCESS R3NONACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR TYPEAUNITINTERIORNON-ACCESS R3NON-ACCESS R3NON-ACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR CBCPUBLIC CBCUNITINTERIOR CBCUNITINTERIOR TYPEAUNITINTERIOR NON-ACCESS R3NON-ACCESS R3NONACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR CBCPUBLIC CBCPUBLIC CBCUNITINTERIOR CBCUNITINTERIORTYPEAUNITINTERIOR NONACCESS R3NON-ACCESS R3NONACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR R3NONACCESS R3NON-ACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIORCBCUNITINTERIOR CBCUNITINTERIOR TYPEAUNITINTERIOR NON-ACCESS R3NON-ACCESS R3NONACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR TYPEAUNITINTERIOR NON-ACCESS CBCUNITINTERIOR CBCUNITINTERIOR TYPEAUNITINTERIOR NON-ACCESS R3NON-ACCESS R3NON-ACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR R3NON-ACCESSCBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR TYPEAUNITINTERIOR NON-ACCESS R3NON-ACCESS R3NONACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR R3NON-ACCESS R3NON-ACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR R3NON-ACCESS R3NONACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR R3NONACCESS CBCUNITINTERIOR R3NONACCESS CBCUNITINTERIOR CBCUNITINTERIOR R3NONACCESS R3NON-ACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR TYPEAUNITINTERIOR NON-ACCESS R3NON-ACCESS R3NON-ACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR R3NONACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR TYPEAUNITINTERIORNON-ACCESS R3 NONACCESS R3NON-ACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR TYPEAUNITINTERIORNON-ACCESS R3NONACCESS R3NON-ACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR R3NON-ACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR R3NON-ACCESS R3NON-ACCESS R3NON-ACCESS CBCUNITINTERIOR CBCUNITINTERIOR CBCUNITINTERIOR RE G I O N A L S T R E E T ST. PATRICK W A Y EN T R Y D R I V E P R I V A T E C ST. PATRICK WAY WE S T S T R E E T P R I V A T E GO L D E N G A T E D R I V E A B C 345 4 347 6 2 344 9 34 5 CBCPUBLIC CBCPUBLIC SECTION C: EXISTINGSECTIONB - 58' ST. PATRICK RIGHT OF WAY WITHPARKINGSECTIONA - 71' ST. PATRICK RIGHT OF WAY WITH PARKING DATE: MARCH 16, 2018 0'120'40'160' 1" = 40'SCALE: ST. PATRICK WAY HOLD NORTH ST. PATRICK FACE OF CURB LINE PLAN LINE STUDY CITY OF DUBLIN ALAMEDA COUNTY CALIFORNIA F:\2763-000\ACAD\EXHIBITS\XB-028_PLAN LINE STUDY.DWG 3/ 1 6 2 0 1 8 3 2 0 P M SACRAMENTO, CALIFORNIA SAN RAMON, CALIFORNIA CIVIL ENGINEERS SURVEYORS PLANNERS 925) 866 - 0322 www.cbandg.com 916) 375 - 1877 Carlson, Barbee & Gibson, Inc. LEGEND ABBREVIATIONS ST. PATRICK & WEST STREET INTERSECTION DETIAL