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Resolution 1998-34 . . .. 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 -1- RESOLUTION NO. 98-34 . . -- 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 -2- RESOLUTION NO. 98-34 Co~uni~ ~~velopme~t Dwartment Plannmg DIVISIon . Staff Report . . 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 . 2 '. 5/28/98 !J " CONFORMANCE OF REQUEST WITH GENRRAL PLAN: . - 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/ . . 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~ ~ ~128/98-~ R~,.ATF.n APPLICATlOa . .,j 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. - . . 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: . 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.] . '.' M 98-06/ ARE 98-02. 4 . .. . .' 5/28/98 ANALYSIS OF REQUEST: . - 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. M 98-06 I AHE -g8-02 5 5/28/98 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 ~ 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. M 98-06/ ARE 98-02 . 6 . is S~8/98 .. C. The need for the types of units which are proposed . . 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]: '. . . 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. M 98-06/ AHE'9S-oZ 7 iJ 5/28/98 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 . . M 98-06 / AHE 98-02 8 v' 5/28/98 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, . . ~ ~~ 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 .11;":;: . . "B.<<.L~Ml C~~. 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 @ . . 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)