Resolution 1998-34
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RESOLUTION NO. 98-34
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY P ARTIALL Y APPROVING M 98-06/ ARE 98-02, AN
APPLICATION FOR AN AFFORDABLE HOUSING EXEMPTION
FROM THE RESIDENTIAL DEVELOPMENT ORDINANCE,
APN 790-04-037, -038, -057, -059, and -062
WHEREAS, South County Housing ("Applicant") submitted M 98-06/ AHE 98-02,
requesting an affordable housing exemption from the Residential Development Ordinance ("RDO") for
the purpose of constructing 157 affordable housing units; and
WHEREAS, the City Council may grant the requested RDO exemption only if it
determines that it meets the criteria set forth in Zoning Ordinance section 50.62(b)( 4), which criteria is
fully discussed in the Staff Report dated May 28, 1998, which is attached hereto as Exhibit A and
incorporated herein by this reference; and
WHEREAS, the Planning Commission reviewed application M 98-06/ AHE 98-02 at a
duly noticed public hearing on June 4, 1998, and recommended that the City Council approve the
Application M 98-06/ ARE 98-02, subject to the two (2) conditions set forth on page 8 ofthe Planning
Division Staff Report, attached hereto as Exhibit A; and
WHEREAS, the City Council reviewed Application M 98-06/ AHE 98-02 and all
documents relating thereto and took oral and written testimony at its duly noticed public hearing of
June 15, 1998; and
WHEREAS, the location and custodian of the documents or other materials which
constitute the record of proceedings upon which this project approval is based is the office of the City
Clerk.
NOW, THEREFORE, BE IT RESOLVED THAT:
A. The City Council hereby finds as required by Zoning Ordinance section 50.62(b)(4)
that the project, as modified by the action of the City Council, would substantially benefit the City, and
would not create significant negative impacts to public facilities or to providers of public services in the
community, or to the Gilroy Unified School District, so long as the application is modified to grant an
Affordable Housing Exemption from the RDO only for the following:
IMSD\415531.01
81-062604706002
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RESOLUTION NO. 98-34
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-- 75 single-family homes; and
-- 22 cluster units (town homes).
The City Council makes these findings based on facts as set forth in the record, including the attached
Staff Report.
B. M 98-04/AHE 98-01 should be and hereby is approved subject to the two (2)
conditions in the attached Staff Report, along with an additional third condition, as follows:
1. The applicant shall be subject to the revised requirements of the
"Affordable Housing Exemption Procedure for Private Developments"
policy. These revisions are expected to be completed by the late Fall or
early Winter of 1998.
2. The developer shall sign a contract agreeing to the provisions
contained within the "Affordable Housing Exemption Procedure for
Private Developments," prior to approval of an Architectural and Site
review for this site.
3. The applicant shall sign an agreement with the Gilroy Unified
School District, prior to the issuance of any building permits,
agreeing to mitigate any impacts on the school district that may
arise in connection with the proposed development.
C. The request for an Affordable Housing Exemption from the RDO to allow
construction of 60 multi-family apartment units should be and hereby is denied.
PASSED AND ADOPTED this 6th day oOuly, 1998 by the following vote:
AYES:
COUNCILMEMBERS: ARELLANO, MORALES, ROWLISON,
SPRINGER, SUDOL, GILROY
NOES:
COUNCILMEMBERS: GIFFORD
ABSENT: COUNCILMEMBERS: NONE
A~71~'
Rhonda Pellin, City Clerk
\MSD\415531.01
81-062604706002
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RESOLUTION NO. 98-34
Co~uni~ ~~velopme~t Dwartment
Plannmg DIVISIon .
Staff Report
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File Number: M 98-06 / AIlE 98-02
Applicant: South County Housing (c/o Karen SaUnders)
May 28, 1998
Location: Property located between Kern Avenue and Santa Teresa Boulevard, South of
Longmeadow Drive
Staff Planner: Melissa Durkin
REQUESTED ACTION:
The applicant is requesting a 157 unit Affordable Housing Exemption from the ROO competition for
the Los Arroyos project. . .
DESCRIPTION OF PROPERTY:
Parcel Number: 790-04-037,038,057,059, and 062
Parcel Size: 64.32 acres
Flood Zone: Zone B, Panel # 060340000 I C
Panel Date: 10/06/81, Revised to reflect LOMR 8/31/95
ST A TlJS OF PROPERTY:
~tingland lJse
Sing. Fam. Homes/Storage Bldgs.
General 'Plan Designation
LowI?ens. Res./High Dens. Res.
STATUS OF SlJRROUNDING..nDPERTY: .
Existinglandllse
N: ChanneVSing. Family Homes
S: ChanneVSing. Family Homes
E: S. F. Homes/G.U.S.D. Farm
W: Santa Teresa Blvd.lS.F. Homes
G.eneral Plan Designation
P.F./L.D. Res/FI.D. Res.
Low Dens. Res., Med. Dens. Res.
Medium Density Residential.
Low Density Residential
Exhibit "A"
Zoping
RI, R3-PUD
Zoning
RI-PUD
RI, R3-PUD
Rl, R3, County Ag.
Rl, RI-PUD
M 98-06 i ARE 98-02 .
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CONFORMANCE OF REQUEST WITH GENRRAL PLAN:
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The proposed project conforms to the land use designation for the property on the General Plan map,
and. is consistent with the intent of the text of the general Plan Document This project conforms with
the policies of Gilroy's General Plan. The following example demonstrates this compliance:
.' Re~idential F.nvimnmeT,t (Section IV):
Policy 1: "The City .will continue to work towards the goal' of a balanced community with a variety
of housing types and prices, sufficient job opportunities, and an effic!ent and adequate provision of
City services and amenities. " .
The proposed project is in conformance with this policy, because it will provide a mix of low income
for-sale housing, and low income rental housing. Both of these housing types are under-represented
in Gilroy.
Policy 2: "The City will encourage the construction of multi-fami{v units. especial{v units suitable for
lower income households and large families, f/
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The proposed project is in conformance with this policy, because it will be affordable to low income
households.
Urban Development and Community De~ign (Section ll):
Policy 3: "Urban Development will on(v occur within the incorporated portion of the Planning Area.
Land lVm therefore be annexed to the City before final development approval is given. "
The proposed project is in conformance with this policy, because this land has been within City limits
. for many years.
Policy.4: "The City will phase development in an orderZv. contiguous manner in order to maintain a
compaCt development pattern to avoid premature investment for the extension of public facilities and
services. New urban development will occur in areas where municipal services are available and
capacity exists prior to the appro....al of development in areas which would reql.fire major .new facility
e."Cpansion. " .
The proposed project is in conformance with this policy, because this site is surrounded by urban
development.
ENVIRONMENTAL IMPACTS:
An Expanded Initial Study is being prepared for this project. A mitigated Negative Declaration for
this project will be presented to the Planning Commission and City Council at the same time that the
Zone Change for this site is presented.
.lVl ::1.0-UU I ru~ ::70-V~
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~128/98-~
R~,.ATF.n APPLICATlOa
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Z 98-05: .
A Zone Change request to change the zoning of this entire 64.32 acre site fromRl to RIIR3-PUD.
This application will be presented to the Planning Commission and City Council in July, 1998.
TM 98-05:
A Tentative Map request to create 75 standard-sized single family residential lots. This application
will..be presented to the Planning Commission and City Council in July,-1998. -
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TM 98-07: .'
A Tentative Map request to create 47 single family residential lots, ranging in size from 3,611-12,456
square feet. This application will be presented to the Planning Commission and City Council in July,
1998. .
A1S 98-25:
Planned Unit Development Architectural aIld Site revjew for the construction of 47 single family
homes (to be constructed on lots created by TM 98-07). This application will be presented to the
Planning Commission and City Council in July, 1998.
OVERVIEW OF THFI.OS ARROVOS PRO.JF.CT:
The Los Arroyos project is a master-planned resi,lenti..:ll develul'lnent that is planned to have the
following components:
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361 Dwellin~.Units
Cl 150 Market Rate Single Family Homes
a 129 Affordable Single Family Homes
0- 22 Cluster Units (Town House Units)
o 60Multi-fani~.lyAparnnent Units
[Received RDO in 1996 (RD 96-09)]
[Subject to RDO Exemption]
[Subject to RDO Exemption]
[Subject to RDO Exemption]
· Villa Esperanza Residential Facility
a A 21 unit independent-living apartment complex for the developmentally disabled [Note:
This portion of the project was approved previously under PUD . Architectural and Site
Review A/S 97-05., and was exempted from the RDO under Affordable Housing Exemption
application M 97-12, ARE 97-03.] .
· A child care center/community center
· A 2.5 acre park [Note: The size, placement, and development of this park will be subject to
negotiations with the City.]
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ANALYSIS OF REQUEST:
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The applicant is requesting approval of an Affordable Housing Exemption from the ROO under the
provisions of Zoning Ordinance section 50.62 (b) (3), to allow the construction of 157 affordable
hoUsing units, as follows:
~ 75 Single Family Homes
R" . 22 Cluster Units (Town Homes)
~. 60 Multi-Family Apartment Units
This section of the Zoning Ordinance governs affordable housing developments that are constructed
by agencies that receive government funding. Under this section, up to 75 units within each of the
following categories of housing may be exempted from the Cirys Residential Development
competition process: (a) single family homes, (b) condominiums or townhouse ownership units or (c)
rental units. [Note: The ultimate number ofRDOexempt units South County Housing is proposing
to construct within the Los Arroyos project is 211. A secondary request to exempt the additional 54
units will be presented in a separate application.]
Projects ~at are exempt from the RDO under this section must comply with the City's "Affordable
Housing Exemption Procedure for Private Developments" policy, which is currently being revised.
These revisions are expected to be completed by the Fall or Winter oI 1998. Staff reco~ends that,
if this Afford:1hle Hf''lsing Exemptinn request is approved, the applicant be subject to the revised
policy. .
As stated in section 50.62 (b) (4), the City Council may grant RDO exemptions for affordable housing
projects if the project is determined to meet specific criteria This section states,
The City Council shall grant an exemption under this subsection only if the City Council
determines the prC?ject would substantially benefit the City, and would not create significant
negative impacts to public facilities or to providers of public services in the community or
to the G'ilroy Unified School District. The City Council shall consider the following
el~merits in determining whether to grant this exemption:
a. The number of ~xempt units ",Wch have already been granted during the current RDO
cycle, and the number of years left in the cycle;
b. The affordabllity of the project;
c. . The need for the types of units which are proposed;
d. The number of affordable housing projects constructed or proposed within the project
vicinitr;
e. The diversity of unit type and architectural styles which are proposed in the entire
development; and
f. The site design and proposed building elevations.
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Following is s~s detlination of this prnjecrs co~istency wi'this exemptinn criteria:
This applicant has submitted a letter agreeing to mitigate all impacts on the Gilroy Unified School
District [See Exhibit A]. An Initial Study is currently being prepared, which will require the
developer to mitigate any' impacts on public services or public facilities. The applicant will
incorporate any needed public improvements into the design .of this project prior to approval of the
architectural and site review. Staff believes this project is Comistent with this criteria .'
A.... The number of exempt units which have already been ~nted 'duriDg the current RDO.
cycle, and the number of years left in the cycle . . . .
The City Council set aside 950 housing units to be exempted from the RDO competition in the
ten year cycle between 1994 and 2003. Although there are no annualliqiits on the number of
exempt units which can be awarded, the City Council has expressed a desire to ensure that the
exempt units are not completely allocated in the first few years of the RDO cycle. So far, 583
units have been allocated through the exemption process, leaving a balance of 367 units available
for the 5.5 years remaining in the cycle. [Note: Some of the projects that have received RDO
exemptions have buildout schedules that will take them into future years of the RDO cycle.] If
this request is approved, 210 exempt units will be available to be allocated in the remaining 5.5
years of this RDO cycle, which is approximately 22% of the original number ofRDO exempt
units. Although this request is Not Consistent with this criterion, staff does believe.that this is
somewhat mitigated by the fact that the developer is proposing a three-year build-out schedule
for this project. This schedule is as follows:
Single Family Homes
Cluster Homes
Multi-Family Homes
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21 units
1m
54 Units
2illlO
22 Units
60 units
B. The aff~rdability .of the 'project
The mortgage or rental amount of the homes in this development will be as follows:
Near Market Rate (30 Units): $230,000 -$250,000
Below Market Rate (27 Units): $160,000 - $180,000
Self Help (18 Units): $85,000 - $115,000
Cluster Homes (22 Units): $85,000 - $115,000
Multi-Family' Homes (60 Units): $400 - $800/month
Staff believes this project.is Consistent with ~his criterion.
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C. The need for the types of units which are proposed
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According to the City's Consolidated Plan, which was adopted on May 1, 1995, Gilroy has a
demand for 846 new affordable rental units. Since that document was adopted, there have been
five affordable rental projects approv.ed within the City, totalling 278 units:
1. Monterra Village (34 Units)
2. Gilroy Park Apartments (74 Units) .
3. Gilroy Garden Apartments (74 Units)
4. Villa Esperanza (21 Units)
5. Victoria Woods (75 Units)
Therefore, there is still a need for 568 affordable apartment units in Gilroy.
Although the Consolidated Plan did not specify the need for low income "for sale" homes in
Gilroy, South County Housing has presented the following information to address this issue:
~ With one week of advertising, approximately 500 families applied for the 30 self-help homes at
the Glenbrook project on Mantelli Drive. (220 of the applicants qualified to participate in the
program.)
~ The sales absorption rate for the low income (non self-help) homes at Glenbrookwas six homes
per week. According to South County Housing, this is more than six times the average new home
absorption rate in Gilroy.
so At the Alderwood project, 320 families qualified forthe 20 self-help homes. .
~ At the Summerhill project, no marketing was required for any of the homes. All of the homes
were sold pased on interest lists kept by the applicant.
so South CO\;lI1ty Housing ~as 505 families on their self-help waiting list. According to South
County Housing, 97% 'of these families either live or work in Gilroy.
Based on the information contained within .the Consolidated plan, and the information presented by
South Co.unty Housing, Staff believes this project is Consistent with this criterion.
D. The number of affordable housing projects constructed or proposed within the project
vicinity
. in Planning file
There are five affordable housing projects near this site [See Exhibit B',fIap of affordable and
market rate projects in this area]: '.
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1. Summerhill - 65 Low Income and MedianlModerate Income owner-occupied homes,
located adjacent to the Los Arroyos northern project boundary, but separated by a channel.
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2.
The Redwoo.'30 Low Income apartme~t units, 10& adjacent to the s~uth~tem
portion of the Los Arroyos project, but separated by a channel.
3.
Glen brook - 46 Low Income and MedianlModerate Income owner-occupied homes,
located adjacent to' the Los Arroyos southern project boundary, but separated by a channel.
. 4. . Monterra Village - 34 LoW Incom!: and Very lOw Income apartment units, located
approximately 200 Jeet southeast o.fthe Lo~ Arro.yos projeCt boundary.
5. Villa Esperanza - 21 Very Low Income apartment units fo~tJte developmentally disabled.
This is part of the Los Arroyos master plan, so it is comained within the boundaries of this
development.
As this .list shows, there are 196 affordable housing units adjacent to this site. If this
exemption request is approved, there will be 353 affordable housing units within
approximately ~ mile of each other. Although Staff believes that this project is Not
Consistent with this criterion, there are some factors that may mitigate the impacts of this
high concentration of affordable housing units:
Q There are. four distinct types of units that will be constructed in this area (rental apartment
. units, owner-occupied single family homes, owner-occupied town homes, and housing for
the developmentally disabled). .
Q Taken as a whole, the affordable housing projects in this 1/2 mile area are affordable to Very
Low, Low, Median, and Moderate income groups. Because these projects are affordable to
a mixture of incomes, people of various incomes and backgrounds are living together. In
the long tenn, this creates more sustainable neighborhoods, and better planned communities.
a Approximately 9 acres of the property which is proposed to be developed in this application
has a General Plan designation of High Density Residential, which could correspond to a
maximum zoning designation ofR4, and would most likely be developed with apartment
units~ regardlt:ss of w.hether they are affordable. .
Q Th~r~ are 150 mark~t rate units also proposed for this project.
E. . The diversity of unit type and architectural styles which are proposed in the entire
development
There will be several different housing types within the Los Arroyos project. These are:
· Single family market rate homes
.. Single family self help homes
· Cluster homes (town homes)
· Apartment units
In addition, South (:ounty Housing has worked to create a wide mix of different architectural
designs in thi's developmen~, which will add architectural interest to the street. Please see the
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in Planning file
attached Exhibit C,~hich shows the proposed architectural des.ign for the homes. Staff believes
this project is Consistent with this criterion.
F. The site design and proposed building elevations
The applicant has proposed a site design which shows looped streets, a City park in the center of
the project, a pedestrian bridge overpass to the homes on Kern A venue, and a good mix of the self
help, below market rate, and near market rate homes. Staff does believe that the market rate units
should be more evenly distributed throughout this project, however, overall, Staff believes this
project is Consistent with this criterion. Please see Exhibit D~hich is the site plan for this
development. in Planning file
STAFFRECO~ENDAJ]O~
This project is inconsistent with the Zoning Ordinance criteria for exempting affordable housing units
in two areas:
1. If this project is approved, there will be only 227 units left for affordable housing exemptions in
the remaining 5.5 years of this RDO cycle; and
2. If this project is approved, there will be 353 low income housing units within a Y2 mile area.
lfjhe~anning..Commissioll.and_City__CQuncilbelieYeJhaUhe_positiy.e benefits of this project
outweighlhese...twoar.eas_oUnconsistency,.Staf[r.ecommends APPROVAL oftWs request. If this
project is..apprm-::ed,staflr..e..CDmmenthJhattheJollowing.conditions .be,applied to this approval:
1. The applicant shall be subject to the revised requirements of the "Affordable Housing Exemption
Procedure for Private Developments" policy. These revisions are expected to be completed by
the late Fall or early winter of 1998.
2; The developer shall sign a contract agreeing to the provisions contained within the "Affordable
Housing Exemption Procedure for Private Developments," prior to approval of an Architectural
and Site review for this site.
Respectfully, . . ~
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William Faus
. Planning Division Manager
6-4-98 At their meeting of June 4, 1998, the Planning Commission recommended approval of
M 98-06jAHE 98-02, together with the two conditions recommended by staff, for a 157
unit Affordable Housing Exemption from the RDO competition. 4-1-2. (Commissioners
Gartman and pinheiro absent) (Commissioner Tucker voted no). (Voice Reso. 98-15)
,....tt;t,
OUT H
LOU N T Y
HOUSING
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May 26, 1998
Melissa Durkin
City of Gilroy
7351 Rosanna St.
Gilroy Ca 95020
RE: Los Arroyos School Fees
Dear Melissa:
This letter confinns to the City of Gilroy that South County Housing will mitigate all
impacts to the Gilroy Unified School District resulting from the development of housing
units constructed by South County Housing at the Los Arroyos development. Impact will
be mitigated through the payment of fees.
Sincerely,
~~*
Dennis al
Execut' irector
e
EXHIBIT A
A Uno','l3 vq. "-9ency
-; ~~~ CJrmd Street. Gilfl'Y. C.llifllrnia o~u:::O · 1-1051 s.I~.'l151 · f~,,1-I0818-12-o:!7i
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I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 98-34 is an original resolution, duly adopted by the Council ofthe City of Gilroy
at a regular meeting of said Council held on the 6th day of July, 1998, at which meeting a quorum
was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 9th day of July, 1998.
(Seal)