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HomeMy WebLinkAbout4.4 - 3496 Site D-1 PSA Page 1 of 3 STAFF REPORT CITY COUNCIL DATE: December 1, 2020 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SUBJECT: Authorization for a Purchase and Sale Agreement Between the City and the Surplus Property Authority for an Affordable Housing Site Prepared by: Hazel L. Wetherford, Economic Development Director EXECUTIVE SUMMARY: The City Council will consider authorizing the City Manager to negotiate and prepare a Purchase and Sale Agreement for the transfer of approximately one acre of property from the Surplus Property Authority of Alameda County to the City of Dublin for an affordable housing site. STAFF RECOMMENDATION: Authorize the City Manager to negotiate and prepare a Purchase and Sale Agreement. FINANCIAL IMPACT: There is no fiscal impact associated with receiving this report. DESCRIPTION: The Surplus Property Authority (Authority) of Alameda County holds title to a 2.4-acre property (APN 986-0034-013-01) in the East Dublin Transit Center, located at the southeast corner of Iron Horse Parkway and Martinelli Drive, commonly known as Site D-1. Please see Figure 1 for an aerial view of the parcel. Page 2 of 3 Figure 1. Aerial of Site D-1 The County, through the General Services Agency (GSA), is designing a parking garage for the easterly portion of the site that will leave approximately one acre of undeveloped land on the westerly portion, along the Iron Horse Parkway frontage. GSA is currently anticipating that construction of the parking garage will commence in mid- 2021. Once design of the garage has been finalized, Site D-1 will be divided into two legal parcels, with the garage portion being quitclaimed to the County by the Authority. The City requested, via Supervisor Haggerty, that the remaining one-acre parcel be utilized for an affordable housing project. The Supervisor and Surplus Authority staff met with City staff to discuss the terms of a property transfer, at which point they were amendable to the deal terms subject to authorization by the Board of Supervisors. The City and Authority staff anticipate transferring the parcel through utilization of Government Code 25539.4, which allows property that is transferred for affordable housing to be considered “exempt surplus property”. Staff is requesting authorization to negotiate and prepare a Purchase and Sale Agreement for the approximate one-acre westerly portion of Site D-1 that would permit the transfer of the property from the Authority to the City, or its designee, for an affordable housing development. The Purchase and Sale Agreement would further specify that the transfer would occur when the City has approved a 100% affordable development that meets the requirements of Government Code Section 25539.4. In addition, the Authority has accumulated fee credits under the City’s Impact Fee program and the City and Authority staff have agreed that the affordable housing developer would be required to purchase and use the Authority’s credits against the City’s impact fees charged for this development. Site D-1 Page 3 of 3 The City’s Inclusionary Zoning Ordinance requires that all new residential development projects with 20 units or more construct 12.5% of the total units as affordable units, as defined. When the number of affordable units constructed exceeds the number of affordable units required, credits may be issued. These credit certificates are typically issued to the developer; however, City and Authority staff have further agreed that any City affordable unit credits generated by the affordable housing development would be equally split between the City and the Authority. The Authority would then have the exclusive right to utilize the affordable credits for any future residential development on Authority property in Dublin. Sales of credits outside of the Authority property can be pursued by the City or the Authority. On November 10, 2020, the County of Alameda Board of Supervisors authorized Authority staff to negotiate and prepare a Purchase and Sale Agreement as described above. Once a Purchase and Sale Agreement has been drafted that is agreeable to both City and Authority staff, it would be brought back to the City Council for authorization to execute. Staff also anticipates a separate agreement between the City and an affordable housing developer, which will include the affordable housing and credit obligations and requirements described above. This separate agreement will also be brought back to City Council in the future. STRATEGIC PLAN INITIATIVE: Strategy 3. Create More Affordable Housing Opportunities. Strategic Objective 3B. Look for additional opportunities to facilitate the acquisition of sites, at low or no cost, to build housing that is affordable to lower income households. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: None.