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2003/01/14 City Council ResolutionRESOLUTION NO. 2003 - 04 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK, CALIFORNIA, CONCEPTUALLY APPROVING AN ALTERNATIVE EQUIVALENT ACTION PROPOSAL AND REQUEST FOR MODIFICATION TO THE CITY'S PARKING REQUIREMENTS BY A.G. SPANOS FOR A PROJECT PROPOSAL AT THE NORTHWEST CORNER OF ROHNERT PARK EXPRESSWAY AND LABATH AVENUE WHEREAS, on July 25, 2000 the City Council approved Resolution No. 2000 -152 adopting a comprehensive update of the City's General Plan. WHEREAS, on March 26, 2002 the City Council approved Ordinance No. 677 adding Municipal Code Chapter 17.70, Housing Trust Fund and Inclusionary /In -Lieu Fee Requirements. WHEREAS, the City's Housing Trust Fund and Inclusionary /In -Lieu Fee Requirements Ordinance (Section 17.70.040.A) require that at least 15% of all new dwelling units in a residential development of five or more units be affordable and, if it is a rental project, the affordable units shall be affordable to very -low (50 %) and low- income (50 %) households. WHEREAS, Section 17.70.040.C. allows for the developer to propose meeting the above requirements by an alternative equivalent action, subject to the review and approval by the City Council, and provides for the City Council to approve concessions and /or incentives to developers meeting the requirements of the Ordinance. WHEREAS, the A.G. Spanos Companies is proposing to build a 232 unit multi - family rental complex at the northwest corner of Rohnert Park Expressway and LaBath Avenue (Site Plan Concept dated 11/14/01) and the Company has submitted an affordable housing alternative equivalent action and a request for a modification to the City's Zoning Standards pursuant to Section 17.70.040 C. of the Rohnert Park Municipal Code. WHEREAS, as an alternative equivalent action, the Spanos Company is proposing to satisfy the requirements of the Ordinance by providing all of the affordable rental units (15 %; 35 units) at a low- income affordable level and to make a contribution to the Housing Trust Fund in the amount of $279,000 to be used by the City to help facilitate a future affordable project which would include 17 very low - income rental units (Note: the $279,000 is based on subsidy data from the U.S. Department of Housing and Urban Development and the original 200 unit project proposal); and has also requested a concession in form of a reduction in the required parking ratio from 2.25 to 2.0 per residential unit. WHEREAS, Planning Application No. PL2002 -024, alternative equivalent action request, was processed in the time and manner prescribed by State and local law. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROHNERT PARK DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. That the above recitations are true and correct. Section 2. Findings. The City Council, in conceptually approving the A.G. Spanos proposal for a 232 unit multi - family rental complex on the northwest corner of Rohnert Park Expressway and LaBath Avenue, the proposed alternative equivalent action and request for a modification to the City's parking requirements, makes the following findings, to wit: The City Council finds that the proposal is consistent with the following objectives and policies of the General Plan as follows: a. Housing Element HO -7 and Program 7.1: These provisions of the Housing Element require the City to comply with the requirements of the California Community Redevelopment Law and to ensure that at least 15% of all dwelling units developed in the Redevelopment Project Area by public or private entities are affordable to low or moderate income households, and that not less than 40% of these are affordable to very low income households. The City Council may apply this requirement to each development that is proposed or Project -wide. The Alternative Equivalent Action requires that 15% of the multi - family units, or 3 5 units, will be made affordable and be maintained as affordable to lower income families. The Alternative Equivalent Action further requires the A. G. Spanos Company to contribute an amount to the Housing Trust Fund based upon the following information: the number of total units; the number of bedrooms in each unit; and the maximum subsidy amount allowed by HUD. (Exhibit A to this resolution is an example of the way in which this amount would be calculated for a 200 unit project). The monies will be used by the City to facilitate a future affordable project(s) that includes 17 very low- income rental units. On December 19, 2002, the City entered into pre- development agreements with Burbank Housing and Mercy Housing of California for the construction of affordable housing in the Redevelopment Project Area to meet the City's Housing Objectives. The contribution to the City's Housing Trust Fund will be used to assist with one of these projects. b. Housing Element HO -9 and Program 9.1: These provisions of the Housing Element require provision for affordable housing to be developed as part of residential development throughout the community. They also require that 15% of a rental housing project be affordable to very low and low- income households and that a program of incentives be developed to assist developers in meeting the inclusionary housing requirement. The City's Inclusionary Ordinance was adopted as the implementation tool for these policies. The Ordinance allows for both alternative equivalent actions and incentives to assist developers in meeting the requirements. The proposed alternative action requirement and modification to the zoning requirements is consistent with the provisions of the Ordinance and the intent of the General Plan policies. c. Housing Element Quantified Objectives: The project site is not included in the listing of the City's quantified objectives due to its Regional Commercial designation. The additional 35 low- income household within the project itself and the 17 off -site very -low income household units will assist with meeting the Quantified Objectives if other listed projects do not occur in the anticipated time - frame or will provide additional units to meet the City's needs. d. Inclusionary Housing Ordinance. As outlined in findings a and c above, the proposed alternative equivalent action will further the City's affordable housing opportunities to an equal or greater extent than compliance with the express requirements of the Ordinance. Further, due to the location of the project (west of Highway 101) and the other proposed affordable housing projects (e.g., City Center Center, Commerce Blvd., Southwest Center) an over concentration of affordable housing in one area will not occur. e. Conceptual Approval. This conceptual approval shall not bind the City Council but rather shall be subject to the discretion of the City Council to modify its preliminary approval based upon a full review of all pertinent project information, including any environmental impact report, presented at the public hearing on the application. 2. That a duly noticed public hearing has been held to receive and consider public testimony regarding the City Center Concept Plan. Section 3. Environmental Clearance. This conceptual approval is based only on the proposed alternative equivalent action and zoning modification and it is subject to a full review of the project and an environmental review presented at a public hearing. NOW THEREFORE BE IT RESOLVED, that the City Council has does hereby conceptually approve the proposed development and alternative equivalent action, and the request for modification of the City's parking requirements subject to a full review of the project and an environmental review presented at a public hearing. BE IT FURTHER RESOLVED, that this proposal has been reviewed on a single case basis and that the circumstances of this proposal would not necessarily apply to other projects and do not apply to areas to be annexed to the City. 3 DULY AND REGULARLY ADOPTED on this 14th day of January 2003 by the City Council of the City of Rohnert Park. Attest: D ty Cit Jerk lw "4 Mayor, City of Rohnert Park FLORES: AYE MACKENZIE: AYE NORDIN: AYE SPRADLIN: AYE VIDAK- MARTINEZ: AYE AYES: (5) NOES: (0) ABSENT: (0) ABSTAIN: (0) EXHIBIT A SUBSIDY DATA SPREADSHEET The HUD subsidy provided indicates the maximum HUD assistance for a housing development project in Sonoma County. Below is a model to determine the appropriate in -lieu fee for the proposed Spanos project. Using the incremental difference between the assistance provided to a low- income unit vs. a very-low income unit, an in -lieu fee is determined. A variation in the allocation of units will cause a change to the in -lieu fee. Project: Former PG &E Site Distribution of Units Total Units* 200 % of total One Bedroom 88 44.00% Two Bedroom 96 48.00% Three Bedroom 16 8.00% *Initial plans submitted indicated 200 units, this calculation serves to provide the allocation of one, two, and three bedroom units. Calculation Model Low Income Units Very Low Units 18 17 Distribution of Standard Units HUD Subsidy ** Total One Bedroom 7.48 8 $14,500 $116,000 Two Bedroom 8.16 8 $17,500 $140,000 Three Bedroom 1.36 1 $23,000 $23,000 Grand Total $279,000 ** The incremental difference between the low income and very low income subsidy.