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HomeMy WebLinkAbout4.06 Public Art Reqrmt Suspendti~~ -il~ ~1 \~V CITY CLERK File # ^~~^- 2^~ AGENDA STATEMENT CITY COUNCIL MEETING DATE: April 21, 2009 SUBJECT: CONSENT CALENDAR -Adoption of Ordinance Temporarily Suspending Public Art Requirement for Residential Projects as an Economic Stimulus Measure Report by John Hartnett, Heritage & Cultural Arts Manager ATTACHMENTS: 1. Draft Ordinance Temporarily Suspending the Provisions of Sections 8.58.OSO.A and 8.58.OSO.D of the Dublin Municipal Code Relating to Public Art Contribution Requirements for Residential Projects in Excess of 20 Units. 2. City Council Staff Report dated April 7, 2009 (without attachments) RECOMMENDATION: 1. Waive the 2nd reading and ADOPT the Ordinance Temporarily Suspending the. Provisions of Sections 8.58.OSO.A and 8.58.OSO.D of the Dublin Municipal Code Relating to Public Art Contribution Requirements for Residential Projects in Excess of . 20 Units. FINANCIAL STATEMENT: None DESCRIPTION: Due to the notable slowdown in the pace of residential development in the City, Staff has concluded that it may be worthwhile to consider implementing a temporary suspension of the City's Public Art Ordinance, codified in Chapter 8.58 of the Dublin Municipal Code, as it applies to residential developments. Chapter 8.58 of the Dublin Municipal Code (the "Public Art Ordinance") requires most commercial development projects and residential development projects with more than twenty units to either acquire and construct a piece of public art on or near the development site, or make a monetary contribution to the City in-lieu of constructing a piece of public art. The City Attorney's Office has drafted an ordinance, applicable only to residential development projects with more than twenty units, that suspends for a period of two years the requirement contained in the Public Art Ordinance. At the end of the two year COPY TO: Residential Developers Page 1 of 2 ,, ~ ~ ITEM NO. `~ G:\COLTNCIL\Agenda Statements\2009\4-21 Public Art Requirement Suspension Staff Report-2nd reading (2).DOC suspension, Staff will review the state of residential development in the City and make a recommendation regarding the ongoing status of Chapter 8.58 as it applies to residential development. The intent of this ordinance is to encourage residential construction during the current economic downturn. Thus, the City wishes to grant a waiver of the public art requirement only to developers whose projects are actually under construction during the current economic downturn and who may be deterred from commencing constructing due to the requirements of the Public Art Ordinance. At the March 12, 2009 Heritage and Cultural Arts Commission meeting, the Commission received the Staff report on the proposed ordinance and unanimously recommended approval to the City Council. This proposed ordinance was introduced at the Apri17, 2009 City Council Meeting (Attachment 1). RECOMMENDATION: Staff recommends that the City Council: 1) waive the reading and ADOPT the Ordinance Temporarily Suspending the Provisions of Sections 8.58.OSO.A and 8.58.OSO.D of the Dublin Municipal Code Relating to Public Art Contribution Requirement Residential Projects in Excess of 20 Units. 1214884.2 Page 2 of 2 ~~~ ORDINANCE NO. AN ORDINANCE OF THE CITY OF DUBLIN TEMPORARILY SUSPENDING THE PROVISIONS OF SECTIONS 8.58.OSO.A AND 8.58.050.D OF THE DUBLIN MUNICIPAL CODE RELATING TO PUBLIC ART CONTRIBUTION REQUIREMENTS FOR RESIDENTIAL PROJECTS IN EXCESS OF 20 UNITS WHEREAS, on September 5, 2006, the City Council of the City of Dublin adopted an ordinance adding Chapter 8.58 to the Dublin Municipal Code relating to a Public Art Program; and WHEREAS, Chapter 8.58, among other things, requires certain development projects to either acquire and install on or in the vicinity of the development site a public art project with a value equal to a specified percentage of the development project's building valuation or to make a monetary contribution to the City equal to a specified percentage of the development project's building valuation; and WHEREAS, Chapter 8.58 requires the developers of any project subject to its provisions to submit a Public Art Compliance Report-indicating whether the developer will seek to acquire and install public art or make a monetary contribution to the City-to the Community Development Director at the time they seek Site Development Review approval for the project; and WHEREAS, Section 8.58.070.D provides that, prior to occupancy of the first structure in the project, any developer electing to acquire and install public art on or in the vicinity of the development must both secure completion of the public art project in a manner deemed satisfactory to the City Manager and execute an agreement with the City setting forth the ownership, maintenance responsibilities, and insurance coverage for the public art project; and WHEREAS, Section 8.58.070.C provides that any developer electing to make a monetary contribution in-lieu of acquiring and installing public art shall make the payment prior to issuance of the first building permit in the project; and WHEREAS, the approved Site Development Reviews of projects covered by Chapter 8.58 include a condition ensuring that developers comply with Chapter 8.58 at the time described in either Section 8.58.070.C or Section 8.58.070.D, depending on which approach the developer has identified in its Public Art Compliance Report; and WHEREAS, the current national economic slowdown has severely impacted the financial strength of many residential developers including some with projects in the City of Dublin, and these developers are having difficulty continuing with development of their projects; and WHEREAS, the City Council of the City of Dublin wishes to encourage the continued development of residential projects in the city during the economic slowdown. NOW, THEREFORE, the City Council of the City of Dublin does hereby ordain as follows: ATTACHMENT 1 ' a~ 7 Section 1. Temporary Suspension of the Public Art Contribution Requirements of Sections 8.58.OSO.A and 8.58.OSO.D for Residential Projects. A. Temporary Suspension of On-Site Art Requirement; Termination of Requirement as to Applicable Projects Upon Issuance of Occupancy Permit. For a period of two (2) years following the effective date of this ordinance, any residential development project that has, pursuant to the provisions of Section 8.58.OSO.A of the Dublin Municipal Code, elected to acquire and install a public art project may receive occupancy authorization for structures in the project without satisfying the requirements of Section 8.58.070.D. Upon the granting of any such occupancy authorization, the On- Site Public Art Requirement imposed by the conditions of the project's Site Development Review pursuant to Section 8.58.OSO.A shall be extinguished as to that Site Development Review only. B. Temporary Suspension of In-Lieu Fee Requirement; Termination of Requirement as to Applicable Projects Upon Issuance of Building Permit. For a period of two (2) years following the effective date of this ordinance, any residential development project that has, pursuant to the provisions of Section 8.58.OSO.D of the Dublin Municipal Code, elected to make a payment in-lieu of acquiring and installing public art may obtain the first building permit in the project without first making the contribution as required by Section 8.58.070.C. Upon issuance of that building permit, the Monetary Contribution In-Lieu of Public Art requirement imposed by the conditions of the project's Site Development Review pursuant to Section 8.58.OSO.D shall be extinguished as to that Site Development Review only. C. All Other Provisions of Chapter 8.58 Remain In Effect. Notwithstanding anything to the contrary herein, this Ordinance shall not be deemed to waive any other requirement imposed on residential development projects by Chapter 8.58 including, but not limited to, the requirement that a Public Art Compliance Report be submitted to the Community Development Director in conjunction with site development review of a project. D. Application Limited to Projects Subject to Chapter 8.58. Notwithstanding anything to the contrary herein, this Ordinance shall only apply to residential development projects which have an obligation to make a public art in-lieu contribution or to acquire and install public art pursuant to the provisions of Chapter 8.58. Any existing obligation to make a payment or acquire and install public art that does not arise from the provisions of Chapter 8.58 shall remain in full force and effect. Section 2. Severability. The provisions of this Ordinance are severable and if any provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the Ordinance or their applicability to other persons or circumstances. ';h~ Section 3. Effective Date. This Ordinance shall take effect and be enforced thirty (30) days following its adoption. Section 4. Posting. The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. PASSED, APPROVED AND ADOPTED this day of , 2009. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk 1214885.1 `} ~ J / ~- ~ -i~ \~/~:' CITY CLERK File # ^^^^-^^ ~~7 r AGENDA STATEMENT CITY COUNCIL MEETING DATE: April 7, 2009 SUBJECT: PUBLIC HEARING: Introduction of Ordinance Temporarily Suspending Public Art Requirement for Residential Projects as an Economic Stimulus Measure Report by John Hartnett, Heritage & Cultural Arts Manager ATTACHMENTS: 1. Proposed Ordinance Temporarily Suspending the Provisions of Sections 8.58.OSO.A and 8.58.OSO.D of the Dublin Municipal Code Relating to Public Art Contribution Requirements for Residential Projects in Excess of 20 Units RECOMMENDATION: 1. Receive Staff presentation; 2. Open public hearing; 3. Receive public testimony; 4. Close public hearing and deliberate; 5. Waive reading and INTRODUCE the Ordinance Temporarily Suspending the Provisions of Sections 8.58.OSO.A and 8.58.OSO.D of the Dublin Municipal Code Relating to Public Art Contribution Requirements for Residential Projects in Excess of 20 Units. FINANCIAL STATEMENT: None DESCRIPTION: In light of the numerous impacts the current economic crisis has and will likely continue to have on Dublin, City Staff have been working on devising and, where possible, implementing various strategies intended to ameliorate these impacts. One impact of the crisis has been a notable slowdown in the pace of residential development in the City. Staff concluded that it may be worthwhile to consider implementing a temporary suspension of the City's Public Art Ordinance, codified in Chapter 8.58 of the Dublin Municipal Code, as it applies to residential developments. COPY TO: Residential Developers Page 1 of 4 G:\COLTNCIL\Agenda Statements\2009\4-7 Public Art Requirement Suspension Staff Report.DOC T TT 7\ (''L7MT'i T~TT 7 Proposed Ordinance Suspending Public Art Requirement For Residential Developments Chapter 8.58 of the Dublin Municipal Code (the "Public Art Ordinance") requires most commercial development projects and residential development projects with more than twenty units to either acquire and construct a piece of public art on or near the development site, or make a monetary contribution to the City in-lieu of constructing a piece of public art. Developers may choose which option they wish to take. The Public Art Ordinance contains an exemption for certain development projects, such as day care centers and low-income housing projects. The City Attorney's Office has drafted an ordinance, applicable only to residential development projects with more than twenty units, that suspends for a period of two years the requirement contained in the Public Art Ordinance that the developers of residential projects either acquire and install a public art project on or in the vicinity of the development site or make a monetary contribution to the City in-lieu of constructing a public art project. At the end of the two year suspension, Staff will review the state of residential development in the City and make a recommendation regarding the ongoing status of Chapter 8.58 as it applies to residential development. Chapter 8.58 requires the developers of any project subject to its provisions to submit a Public Art Compliance Report-indicating whether the developer will acquire and install public art or make a monetary contribution to the City-to the Community Development Director at the time they apply for Site Development Review ("SDR") approval for the project. Section 8.104.070 of the Municipal Code, lists the required findings that must be made in order to approve an SDR application, and includes a requirement that the application comply with Chapter 8.58. Thus, in order to approve an SDR application for a project covered by the Public Art Ordinance, the approved SDR will contain a condition of approval requiring the developer to comply with the Chapter's requirement by the "trigger" point identified in either Section 8.58.070.C or Section 8.58.070.D, depending on which approach the developer has identified in its Public Art Compliance Report. Section 8.58.070.D of the Dublin Municipal Code provides that any developer electing to acquire and install public art at the development site must both secure completion of the public art project in a manner deemed satisfactory to the City Manager and execute an agreement with the City setting forth the ownership, maintenance responsibilities, and insurance coverage for the public art project prior to authorization of occupancy by the City for the first structure in the project. This first authorization of occupancy by the City is the "trigger" for developers that will acquire and install public art to satisfy their obligation under the Public Art Ordinance. Section 8.58.070.C provides that any developer electing to make a contribution in-lieu of installing public art must make the payment prior to issuance of the first building permit in the project. Thus, the issuance of the first building permit is the "trigger" for developers that will make a contribution in-lieu of installing public art to satisfy their obligation under the Public Art Ordinance. The draft ordinance is intended to ensure that the suspension of the public art requirement occurs only if, during the two year suspension period, a developer of a residential project reaches one of the two trigger points in the development process (at the issuance of the first occupancy permits for art providers and upon issuance of the first building permit for in-lieu fee payers). Until that point in time, the provisions of Chapter 8.58, including the requirement to submit a Public Art Compliance Report in conjunction with site development review of the project, will still be applicable. If a developer does reach the trigger point during the effective term of the proposed ordinance, then its responsibility to comply with the Public Art Ordinance will be extinguished as to the project covered by the SDR. Page 2 of 4 Note that, by tying the suspension to the SDR, the City ensures that, in the case of larger projects which ~p may be proceeding in separate phases with separate SDRs, the extinguishment of the public art requirement will apply not to the entire project at one time, but only to the portion of the overall project that is covered by the triggering SDR. For example, the Fallon Village/Positano project, which is required to comply with the provisions of Chapter 8.58, will eventually include approximately 1,000 residences. So far, the project has proceeded in phases. With regards to the initial phase, covering approximately 247 residences, the developers submitted a Public Art Compliance Report indicating their intent to purchase and install a piece of public art pursuant to Section 8.58.OSO.A The Planning Commission approved an SDR for this phase that includes a condition requiring the developers enter into an agreement with the City relating to the purchase and installation of the public art at the time the City authorizes occupancy of the first structure. (Planning Commission Resolution 07-045.) At the time of the triggering event (authorization to occupy the first structure in the development), the requirement to purchase and install a piece of public art pursuant to Section 8.58.OSO.A will be extinguished as to the first phase of the Positano project. The remainder of the overall project will have to comply with Chapter 8.58 unless: (a) the developer receives site development review approval for a later phase of the development, which approval would include a condition requiring compliance with the public art requirement, and (b) the developer, during the two year period in which the proposed Ordinance would be effective, either pulls a building permit or receives occupancy authorization, depending on whether the developer elects to provide on-site public art or pay a fee in-lieu thereof. The intent of this ordinance is to encourage residential construction during the current economic downturn. Thus, the City wishes to grant a waiver of the public art requirement only to developers whose projects are actually under construction during the current economic downturn and who may be deterred from commencing constructing due to the requirements of the Public Art Ordinance. This is why the ordinance applies only if a project is at the trigger point. The City does not wish to waive the requirement for development projects that will not begin construction for many years, when the economy may in better shape than it is now. The City also wants to ensure that development projects take the necessary steps so that the developers can easily comply with the Public Art Ordinance once the provisions of the draft ordinance expire in two years. Thus, if a developer of a residential project applies for a building permit or seeks occupancy authorization shortly after the term of this ordinance has expired, the developer will have a completed Compliance Report, and should be prepared to comply with the requirements of Chapter 8.58 by either installing a piece of public art at the development site or making an in-lieu payment to the City. The following residential projects have been identified as having an obligation to comply with the Public Art Ordinance. These projects, or a portion thereof, may benefit from the proposed ordinance if the developer reaches the trigger point for the project or portion thereof, during the two-year term of the ordinance. • Fallon Village (Positano) -Braddock & Logan • Fallon Crossing -Standard Pacific Homes • Wallis Ranch -Lin Family • Sorrento East -Regent Properties Page 3 of 4 • Windstar - Ampelon Development ~ r • Arro o Vista Develo ment -Citation Homes & Eden Housin Y p g • Anderson Project -Braddock & Logan At the March 12, 2009 Heritage and Cultural Arts Commission meeting, the Commission received the Staff report on the proposed ordinance and unanimously recommended approval to the City Council. RECOMMENDATION: Staff recommends that the City Council: 1) waive the reading and INTRODUCE the Ordinance Temporarily Suspending the Provisions of Sections 8.58.OSO.A and 8.58.OSO.D of the Dublin Municipal Code Relating to Public Art Contribution Requirement Residential Projects in Excess of 20 Units. 1214884.2 Page 4 of 4