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Resolution 2004- 60 RESOLUTION NO. 2004-60 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING ARE 04-02, AN APPLICATION FOR AN AFFORDABLE HOUSING PROJECT EXEMPTION FROM THE RESIDENTIAL DEVELOPMENT ORDINANCE, APN 799-11- 031 WHEREAS, Lulevitt Financial Realty and Shirley Lulevitt ("Applicant") submitted ARE 04-02, requesting an Affordable Housing Exemption from the Residential Development Ordinance ("RDO") to build nine (9) units on a .37 acre (15,984 square foot) parcel currently zoned Downtown Commercial (C2) located at 7031 Monterey Street, APN 799-11-031; and WHEREAS, the City has determined that the review and approval of an application for an Affordable Housing Exemption from the RDO does not confer any entitlement for residential development and therefore is not a "project" for the purposes of review pursuant to the California Environmental Quality Act; and WHEREAS, the City Council may grant the requested RDO exemption only if it determines that the application meets the criteria set forth in Zoning Ordinance section 50.62(B)(3) or 50.62(B)(4) and said application was submitted pursuant to 50.62(B)(4), the criteria thereof are set forth and fully discussed in the Staff Report dated May 20, 2004 ("Staff Report"), which is attached hereto as Exhibit A; and WHEREAS, the Planning Commission reviewed application AHE 04-02 at a duly noticed public hearing on June 3, 2004, and recommended that the City Council approve it; and WHEREAS, the City Council reviewed application AHE 04-02 and all documents relating thereto and took oral and written testimony at its duly noticed public hearing of June 7, 2004; and INVH1627061.1 01-061504-04706089 -1- Resolution No. 2004-60 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 1. The City Council hereby finds that the project meets the following requirements: A. Application ARE 04-02 is the second request for exempt affordable housing units for the years 2004 through 2013. B. All units will be affordable to persons earning 120% or less of the median household income in Santa Clara County with at least 40% of the units being affordable to households earning 50% to 60% of the median household income for Santa Clara County, at least 30% of the units being affordable to households earning 60% to 100% of the median household income for Santa Clara County, and not more than 30% of the units being affordable to households earning 100% to 120% of the median household income of Santa Clara County. C. There is a need for affordable living units within the City, and these units will be easily accessible to Caltrain and Valley Transportation Authority ("VT A") transportation routes. Furthermore, these units will be unique in that the six (6) for-sale units will contain first floor commercial space and/or art studios and three (3) units will be for-rent studio apartments. D. Currently, there is one proposed affordable housing project of twelve (12) units located four blocks to the north of this project at 7433 Monterey INVH1627061.1 01-061504-04706089 -2- Resolution No. 2004-60 INVHI627061 ,1 01-061504-04706089 Street, and there are two existing affordable housing projects III this vicinity, one project having seven (7) units and located at 7257 Monterey Street and one project having two (2) units and located at 7430 Monterey Street; and this project is not immediately adjacent to any other project which is exempted under Section 50.62(b )(3) or (b)( 4). E. The project would bring diversity of unit types and architectural styles to the City because the Applicant proposes to construct an urban, storefront fayade with three (3) apartments on the second floor and six (6) 3-story for-sale live-work units at the rear of the building. F. The site design and proposed building elevations call for the demolition of the existing home and construction of a new two-story commercial store front with no sidewalk setback, and three (3) apartments on the second floor. The building will provide both pedestrian and vehicular pass- throughs to the rear of the parcel, where six (6) for-sale live-work units will be constructed. Each of the live-work units will be three (3) stories in height, with the first floor restricted to commercial use (approximately 400 square feet in size), and the second and third stories used for residential purposes with two bedrooms and two baths (approximately 885 square feet in size). Furthermore, the project is planned on a large Central District Commercial (C2) zone parcel in the downtown, and the site design is uniquely creative in that it removes a non-conforming residential structure and replaces it with a typical two-store urban fayade facing -3- Resolution No. 2004-60 Monterey Street. The live-work units at the rear ofthe parcel are clustered around pedestrian space. G. For the reasons specified in Subsections A through F, immediately above, the project would substantially benefit the City. H. The project would not create significant negative impacts to public facilities, providers of public services to the community, or the Gilroy Unified School District. 2. AHE 04-02 should be and hereby is approved subject to the following five (5) INVHI627061 ,1 01-061504-04706089 conditions: A. Prior to the development of the project, the Applicant shall: 1. Request and receive approval for a parking reduction per the requirements of Section 3l.90, Interim Off-Street Parking Reductions in the C2 Central Business District Zone. 2. Complete and obtain approval of a Tentative Map request to subdivide the property. 3. Complete a Conditional Use Permit request for 9 residential units. 4. Complete the Architecture & Site Review approval process. B. The Applicant shall be required to obtain, prior to submittal of the Tentative Map, Conditional Use Permit application and Architectural & Site Review application, Staff Recommendation for parking reductions pursuant to the requirements of Section 31.90, Interim Off-Street Parking Reductions in the C2 Central Business District Zone. -4- Resolution No. 2004-60 C. The Applicant shall comply with Section 50.62 ofthe Zoning Ordinance as it applies to Affordable Housing Exempt units and with RDO Affordable Housing Exemption Procedures, which is attached hereto as part of the Staff Report, and enter into an Affordable Housing Agreement with the City. D. The Applicant shall obtain approvals for a Tentative Map, Conditional Use Permit and Architectural & Site Review, and such other City approvals as may be necessary. E. The Applicant shall obtain all Approvals within two (2) years from the date of Affordable Housing Exemption approval, otherwise the Affordable Housing Exemption approval shall be deemed automatically revoked. Upon application prior to the expiration of the approval and for good cause shown, the Planning Division Manager may grant an extension of time not to exceed one year. PASSED AND ADOPTED this 21 st day of June, 2004 by the following vote: AYES: COUNCILMEMBERS: CORREA, DILLON, GARTMAN, MORALES, VALIQUETTE, VELASCO and PINHEIRO NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE 2~ AT~.' S :, ii" ..; / ; 'cJk. k1~k\ ,.) j J.J,.r-: Rhollda Pellin, City Clerk INVH1627061,1 01-061504-04706089 -5- Resolution No. 2004-60 EXHIBIT ,A .. - '. . ; 0- _ . ..~.,,~. .. . . '. .' , City of Gilroy Community Development Department Planning Division 7351 Rosanna St. Gilroy, CA (408) 846-0440 I ' Affordable Housing Exemption May 20, 2004 FILE NUMBER: APPLICANT: AIlE 04-02 (04030047) Monterey Street Commercial and live-work residential/ Shirley Lulevitt (408) 265-8857 LOCATION: 7031 Monterey Street STAFF PL~R: Gregg Polubinsky, gpolubinsky@ci.gilroy.ca.us ,.. ",' AffQrd:able 'Housing Exemption request to allocate 9 residential units (6 single-family live work residential units and 3 second floor apartment units) in a ,mixed use project on a 0.37 acre (15,984 square' feet) property zoned C2. DESCRIPTION OF PROPERTY: Parcel Number: parcql Size: Flood Zone: 799-11-031 0.37 Acres, (15,984 square feet) "X", Panel #060340 0004E, 11110/98 STATUS OF PROPERTY: Existing Land Use L~gal non-conforming house General Plan Designation Downtown Commercial Zoning C2 STA TUS OF SURROUNDING PROPERTIES: North: East: South: West: Existing Land Use Commercial Coast Range Brewing Co. Used auto sales Residential apartments General Plan Designation Downtown Commercial Downtown Commercial Downtown Commercial Downtown Commercial Zoning C2 C2 C2 R3 ARE 04-02 2 May 20, 2004 CONFORMANCE OF REQUEST WITH THE GENERAL 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. ENVIRONMENTAL IMPACTS: The review and approval of this application exempts the Applicant from the ROO competition and because there is no resulting entitlement for residential development being granted, the City's action does not constitute "approval ofa Project" for purposes ofCEQA review. Future CEQA review is assured upon submittal of a Tentative Map Application where the action would then be a "Project." STATUS OF AFFORDABLE BOUSING EXEMPT UNITS: ~ See Attachment #1, RDO Exempt from Competition, 2004-2013. ~ See Attachment #2, RDO Numerical Growth Limits, 2004-2013 ANALYSIS OF REQUEST: The Applicant is requesting an Affordable Housing Exemption allocation for 8 residential units plus there is one residential unit existing on the property for which the applicant will also receive credit. Affordable Housing projects must meet the standards established by the "RDO Affordable Housing Exemption Procedure" which is attached and made a condition of approval. The project must be 75 units or less in size and it must be specifically determined that the project 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. CRITERIA (See attachment #3. Residential Develooment Ordinance Section 50.62): The following elements should be used in determining whether to grant this exemption: a. The number of exemptunit$ which have already been granted during the current RDO cycle, and the number of years left in the cycle; This is the second request of Affordable Housing units (see attachment #1 and #2) for the 2004 through 2013 period. b. The a.tJordability of the project; The Applicant is required to meet the following atTordability requirements: · At least 40% of the units (4 units) must be atTordable to households earning 50% to 60% of the median income for Santa Clara County. . · At least 30% of the units (3 units) must be affordable to households earning up to 100% of the median income for Santa Clara County. · Not more than 30% of the units (2 units) should be sold to households earning 100% to 1200.10 of the median income of Santa Clara County c. The need for the types of units which are proposed; There is a need for atTordable living units within the City. These units will be close to Caltrain and other vr A transportation routes. The units will be unique in that seven for-sale units wiD contain first floor commercial space and/or art studios and three units will be for-rent studio apartments. AHE 04-02 3 May 20, 2004 d. The number of affordable housing projects constructed or proposed within the project vicinity; There is one proposed Affordable Housing project of 16' units 4 blocks to the north at 7433 Monterey Street. There are two existing Affordable Housing projects, seven units at 7257 Monterey Street and 2 units at 7430 Monterey Street. e. The diversity of unit type and architectural styles which are proposed in the entire development; and . This project proposes to construct an urban, storefront fa~ade with three 2nd floor apartment units. There will be an additional six 3-story units on the rear of the property designed as for-sale live-work units. f The site design andproposed building elevations. Project Specifications include: ~ The existing home will be demolished and a new two story commercial storefront will be built at the sidewalk with three apartments on the second floor. ~ The building will provide both a pedestrian and vehicular pass-through to the rear of the parcel where 6 for sale live-work units will be constructed. ~ Each live work unit will be three story with the first floor restricted to commercial space (approx 400 square feet) and the second and third story as a two bedroom, two bath residential home (approx 885 square feet). Project Strengths: The following characteristics of this project were considered to be strengths when evaluating this application: ~ This is a large Central District' Commercial (C2) parcel in the downtown. The site design is uniquely creative in that it removes a non-conforming residential house and constructs a typical two-story urban fa~ade facing Monterey Street. The rear of this parcd is then designed with live-work units clustered. around a pedestrian space. Prior To Development, The Applicant Will Be Required to: 1) Request and receive approval for a parking reduction per the requirements of Section 31.90. Interim Off-Street Parking Reductions in the C2 Central Business District Zone 2) Complete a Tentative Map request to subdivide the property. 3) Complete a Conditional Use Permit request for 9 residential units. 4) Complete Architecture & Site Review approval. ARE 04-02 4 May 20, 2004 . ' RECOMMENDA TION Staff recommends that the Planning Commission forward a recommendation of APPROV AL to the City, CO\lncil for nine Affordable Housing Exemption units. Staff further recommends that the following items be listed as part of the approval of the project: 1. No Staff Recommendation has yet been made for parking reductions. The Applicant will be required prior to submittal of the Tentative Map, Conditional Use Permit and Architectural & Site Reyiew to obtain a Staff Recommendation per the requirements of Section 31.90, Interim Off- Street Parking Reductions in the C2 Central Business District Zone. 2. The Applicant shall comply with Section 50.62 of the Zoning Ordinance as it applies to Affordable Housing Exempt units and with "RDO Affordable Housing Exemption Procedures." 3. The Applicant shall obtain approvals for Tentative Map, Conditional Use Permit and Architectura}. & Site Review and such other City approvals as may be necessary. 4. Tim~Limits. The Applicant must obtain all Approvals within two (2) year from the date of any Mrofdable Housing exemption approval, otherwise the Affordable Housing exemption approval shall be deemed automatically revoked. Upon application ,prior to the expiration of the approval , and for 'good cause shown, the Planning Division Manager may grant an extension of time , lJk~ William F aus, Planning Division Manager bfaus@ci.gilroy.ca.us RDO ATTACHMENT #1 EXEMPT FROM COMPETITION , ' 2004-2013 Adopted by the City Council on July 16,2001 [ amended on September 3,2002 ] Target for market driven housing: Target for exempt housing: Tuesday, May 18, 2004 2,550 units 900 units * ----------------------------------------- ----------------------------------------- lO-ycar (2004-2013) Gro\\1h Limit: 3.450 units * Snecific tar2cts for cxemot housin2: '"affordable'. " 530 units "senior housing" 120 units "affordable senior" 100 units "small projects",' 150 units [**] [individuals 62 and over] [individuals 62 3nd over] [12 units or less] "Afford ",ble" (ARE) File I A licant ARE 04-01 Mike Bertolone Units Re uested 16 ARE o4:..dt2 Shirley Lulevitt 8 Location 1433 Monterey Street 7031 Street Status In Process Monterey In Process Remaining Units 506 "8 H " enlor ouslng File # Applicant Units Requested Location Status SHE 02-01 Village Green 39 Hecker Pass & Santa Teresa Granted SHE 02-02 John Kent 24 Cypress Court Granted SHE 03-01 Salvatore Oliveri 44 Monterey Road In Process Number of Units 107 in Process Remaining Units 13 "Affordable Senior" File # A licant Units Re uested Location Status Remaining Units 100 G:\COMDEV\RDO docs\RDO Status Reports\RDO exempt log [2004-2013].doc A TI'ACHl\iENT #1 "Small" (SPE' File # Applicant Units Requested Location Status SPE 03-02 Delcurto 1 (13 requested, 12 8895 Kern Avenue Approved Group , from 2003) SPE 03-03 James Suner 16 240 Farrell Ave. Approved SPE 03-04 Don 12 Mesa RQad Approved Thompson SPE 03-05 Rancho 16 W of Sadler Dr. at Approved Meadows terminus of Sprigway Gerry DeYoung SPE 03-06 Camino 17 Terminus of Rodeo Approved , Enterprise Dr. SPE 03-07 N.P. 5 8810 Kern Avenue Approved Mussallem SPE 03-09 N.P. 7 7861 & 7891 Miner Under Review Mussallem Avenue SPE 03-11 The James 12 6555 Monterey Rd. Under Review Group SPE 04-01 The James 14 NW c/o Miller Ave Under Review Group & Thomas Road SPE 04-02 Lewis St. 12 SE comer Lewis & Approved Partners Monterey 7589 Monterey SPE 04-03 The James 5 Lone Oak Court Under Review Group SPE 04-04 ' The James 14 Thomas 'Road and Under Review Group Santa Teresa Blvd. SPE 04-05 GUSD 9 Wren Ave at Vickery Under Review SPE 04-06 Chappen 10 West of Mesa Ridge Under Review Development NUIIIIJer of, Units 150 inProcets Remaining Units 0 G:\COMDEV\RDO docs\RDO Status Reports\RDO exempt log [2004-2013].doc A TI'ACHMENT #2 RDO numERICAl GROWTII limiTS , IOOJl-IO I 5 Adopted by the City Council on July 16, 2001 [ amended on September 3,2002] Target f9r market driven housing: Target for exempt housing: Tuesday, May 18, 2004 1,550 units 900 units * ------------- --------------------- ---------------------~-------------------- to-year (2004-2013) Growth Limit: 5-year (2004~2008) growth limit: 1,380 * Specific tar2ets for exempt bousio2: "affordable" "senior housing" "affordable senior" "small projects" Total: 530 units 120 units 100 units 150 units [**] 3,450 units [individuals 62 and over] [individuals 62 and over] [12 units or less] 900 units [**] The first 100 units cannot be consideredfor re-al/ocation until the end of the 10-year cycle (2004-2013), and the remaining 50 units cannot be re-al/ocated under any conditions. Buildout ear RDO Limit: 2001 allocations RD 94-01 * 2004 326 276 50 2005 410 360 50 2006 315 315 2007 166 166 2008 202 202 2009 240 202 2010 240 202 2011 240 202 2012 241 203 2013 170 131 Totals 2,550 2,259 100 · Allocated to ShapeU's Eagle Ridge development, an action taken by the City Council duting the 1994 RDO competition. G:\COMDEV\RDO docs\RDO Status Reports\ROO Numerical Growth Limits (2004-2013) big picture. doc ATTACHMENT #3 Section 50.62 Application of Ordinance , ' (a) The provisions of this Residential Development Ordinance shall apply to all residential development projects proposed to be constructed within the City of Gilroy, except for those residential development projects specifically listed as exempt in paragraph (b) following. (b)' IThe following types of residential projects are exempted from the provisions of this Residential Development Ordinance, except that projects specifically exempted under Subparagraphs (1), ,(3), (4), and (5) below shall be tabulated in housing goals as described in Section 50.63(a). A project may not qualify for more than one of the following exemptions. (4) . A project which meets the standards established by the "Policy Statement for Exempting Affordable Private Development Proposals from the ROO" is exempt if the project consists of , seventy-five (75) units or less aIid the project is specifically approved for exemption by the City Council. Such projects may not be immediately adjacent to another project exempted under subsection (3) or (4) of this Section within the previous three (3) years except where the City , . Council approves a specific exemption. I ' , I the 'City Council shall grant an exemption under this s~bsection only if the City Council determines the project 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. The City Council shall also consider the following elements in determining whether to grant this exemption: . ' a. The number of exempt units which have already been granted during the current RDO cycle, and the number of years left in the cycle; b. The affordability of the project; c. The need for the types of units which are proposed; ~. The number of affordable housing projects constructed or proposed within the project vicinity; e. The diversity of unit type and architectural styles which are proposed in I the entire development; and f. The site design and proposed building elevations. All requests for an exemption under this subsection shall be processed through an Affordable Housing Exemption from RDO application. Public hearings before the Planning Commission and City Council shall be held to consider this application. I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2004-60 is an original resolution, or true and correct copy of a city resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 21 st day of June, 2004, 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 29th day of June, 2004. ~ City Clerk of the- City of Gilroy (Seal)