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Resolution 2004- 67 RESOLUTION NO. 2004-67 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING AND MODIFYING ARE 04-01, AN APPLICATION FOR AN AFFORDABLE HOUSING PROJECT EXEMPTION FROM THE RESIDENTIAL DEVELOPMENT ORDINANCE, APNs 799-07-059, 799-07-060 and 799-07-061 WHEREAS, Mike Bertolone ("Applicant") submitted ARE 04-01, requesting an Affordable Housing Exemption from the Residential Development Ordinance ("RDO") to build sixteen (16) units on three parcels totaling .16 acre (7,216 square feet) currently zoned Downtown Commercial/Historical Neighborhood Combining District (C2-HN) located at 7433 Monterey Street, APNs 799-07-059, 799-07-060 and 799-07-061; 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 ARE 04-01 at a duly noticed public hearing on June 3, 2004, and recommended that the City Council approve the project for the construction of twelve (12) units; and INVH1627038.1 061504-04706089 -1- Resolution 2004-67 WHEREAS, the City Council reviewed application AHE 04-01 and all documents relating thereto and took oral and written testimony at its duly noticed public hearing of June 7, 2004; and WHEREAS, the City Council, after considering all said documents and oral and written testimony, determined to reduce the number of units to be approved under the project to twelve (12); 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 1. The City Council hereby finds that the project meets the following requirements: A. Application ARE 04-01 is the first 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. INVH1627038,1 061504-04706089 -2- Resolution 2004-67 INVH1627038,1 061504-04706089 C There is a need for affordahle living units within the l'ity and these units will be located downtown and thus easily accessible to Caltrain, Valley Transportation Authority ("VT A") transportation routes and core downtown business. D. Currently, there is one proposed affordable housing project of nine (9) units located four blocks to the south of this project at 7031 Monterey Street, and there are two existing affordable housing projects in 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 fac;ade with the proposed housing units located on the second and third floors, and each apartment will have an open living room and kitchen and one bedroom and one bathroom, and consist of approximately 550 square feet. F. The site design and proposed building elevations call for the demolition of an unreinforced masonry building and development on that parcel and on two parcels that are currently undeveloped. The building will occupy the entire site and the project provides for no on-site parking. The building will include a pedestrian pass-through to Gourmet Alley and to the -3- Resolution 2004-67 parking lots hetween Gourmet Alley (11lc1 Fi~leherry Street, wnicn pedestrian pass-through will be lined with retail store space. The front fayade will have openings to the street on each side and is designed to incorporate materials that will complement downtown buildings. Each floor has an open air corridor connecting apartments to the stairway and elevator . 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; and the project beneficially uses three (3) parcels that are oddly shaped and small. 2. AHE 04-01 should be and hereby is approved subject to the following five (5) INVH1627038,1 061504-04706089 conditions: A. Prior to the development ofthe project, the Applicant shall: 1. Request and receive approval for a parking reduction pursuant to the requirements of Section 31.90, Interim Off-Street Parking Reductions in the C2 Central Business District Zone. 2. Prepare story poles, balloons or other mechanism to allow the Planning Commission to view the height impacts of the proposed three- story building prior to hearing the Architectural & Site Review application. -4- Resolution 2004-67 INVH1627038.1 061504-04706089 3. Complete tne Condition;11 {Jse Permit 8pproval process for 12 residential units. 4. Complete the Architecture & Site Review approval process for the historic neighborhood-combining district. B. The Applicant shall be required to obtain, pnor to submittal of the Conditional Use Permit and Architectural & Site Review, 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. 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 shall enter into an Affordable Housing Agreement with the City. D. The Applicant shall obtain approvals for a 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. -5- Resolution 2004-67 PASSED AND ADOPTED this 21 st day of June, 2004 by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ~2 ! -I?~C\.. ~ Rhonda Pellin, City Clerk INVH1627038.1 061504-04706089 CORREA, DILLON, GARTMAN, MORALES, VALIQUETTE, and VELASCO NONE PINHEIRO -6- Resolution 2004-67 EXHIBIT A ,8/....~.-'~... .'. ...r.,.' .'. .' "'- , .' "...-. .....""- Cit)' of Gilro)' Community Development Department Planning Division 7351 Rosanna St. Gilroy, CA (408) 846-0440 Affordable Housing Exemption May 20, 2004 Fll..E NUMBER: APPLICANT: , LOCATION: STAFF PLANNER: ABE 04-01 (04030037). Bertolooe Building / Mike Bertolone (408) 847-2239 7433 Monterey Street Gregg Polubinsky, gpolubinsky@Ci.gilroy.ca.us REOUESTED ACTION: Affordable Housing Exemption request to allocate 16 residential units in a mixed use project on a 0.16 acre (7,147 square feet) property zoned C2. DESCRIPTION OF PROPERTY: Parcel Number: Parcel Size: Flood Zone: 799-11-031 0.16 Acres, (7,216 square feet) "X", Panel #060340 0002D, 8/17/98 STATUS OF PROPERTY: Existing Land Use General Plan Designation Undeveloped lot/URM building Downtown Commercial Zoning C2-HN STA TUS OF SURROUNDING PROPERTIES: North: East: South: West: Existing Land Use Commercial Commercial. Commercial 'Undeveloped General Plan Designation Downtown Commercial Downtown Commercial Downtown Commercial Downtown Commercial Zoning C2-HN C2-HN C2-HN Cl AHE 04-01 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 Documen( ENVlRON1\jlENT AL IMPACTS: The review and approval of this application exempts the Applicant from the ROO Ordinance 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 submittalof.a Tentative Map Application where the action would then be a "Project." STATUS OF AFFORDABLE HOUSJNG ,EXEMPT UNITS: ).- See Attachment #1, RDO Exempt from Competition, 2004-2013. ).- See Attachment #2, RDO Numerical Growth Limits, 2004-2013 , ANALYSIS OF REQUEST: , The App,~c~t .is requesting an Affordable Housing Exemption allocation for 16 residential. Affordable Housingpr,()l'~cts must meet the standards established by the "RDO Afford,able Housing Exemption Procedure" khich is attached and made a condition of approval. The project must be 75 units or less in size and it mu~tbe specifically determined that ~he project would substantially benefit the City, and would not create,~ignificant negative impacts to public facilities or to providers of public services in the community, or to, the Gilroy Unified School District. CRITERlA(See attachment #3. Residential Develooment Ordinance Section 50.62): The following elements should be used in determining whether to gTant this exemption: a. The number of exempt units which have already been granted during the current RDO cycle, and the n~mber of years left in the cycle: This lis the first request of Affordable Housing units (see attachment #1 and #2) for the 2004 through 2013 period. b. The affordabi/ity of the project: The Applicant is required to meet the following affordability requirements: . At least 40% of the units (7 units) must be affordable to households earning 500/0 to 60% of the median income for Santa Clara County. . At least 30% of the units (5 units) must be affordable to households earning up to 100% of the median income for Santa Clara County. . Not more than 300/0 of the units (4 units) should be affordable to households earning 100% to 120% of the median income of Santa Clara County c. The need for the types of units which are proposed; There is a need for affordable living units within the City. These units downtown will be easily accessible to Caltrain and other VT A transportation routes as well as core downtown businesses AHE 04-01 3 May 20, 2004 , d. The number of affordable housing projects constructed or proposed within the'projecl vicinity; There is one proposed Affordable Housing project of 9. units 4 blocks to the south at 7031 Monterey Street. There are two existing Affordable Housing projects; seven units at 7257 Monterey Street and 2 units at 7430 Monterey Street. e. The ~j-)lersity 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 sixteen 2nd and 3rd floor apartment units: Each apartment has an open living room and kitchen with one bedroom and one bathroom. Average apartment size is 550 square feet. f The site design and proposed building elevations. Project Specifications include: ~ Two of the three parcels are currently undeveloped, the third parcel has an unreinforced masonry building which will be demolished. ~. ' The new building occupies the entire site with no room for parking. ~ The building will provide a pedestrian pass-through to Gourmet Alley and the Parking District i . parking "lots between Gourmet Alley and Eigelberry Street. On either side of the pedestrian I ' p~'ss-through will be retail store space. , . ~ :I1he fi:t>nt facade will have openings to the street on each floor .and .the materials will complement downtown buildings with concrete plaster', and brick accents. .), ,;Ea~h floor has an open air corridor connecting the apartments to a stairway and to an elevator. Project Strengths: The following characteristics of this project were considered to be strengths when evaluating this application: ~ This is' a recombination of three small and oddly shaped parcels on Monterey Street in the Central District Commercial (C2) zoning district. The site design is uniquely creative in that it removes an ~ masomy building and constructs a three-story urban fa~de facing Monterey Street. Ther~ will be retail store spaces on the first floor on either side of the pedestrian pass-through. 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) Prepare story poles, balloons or other mechanism whereby the Planning Commission can view the height impacts of the new three-story building prior to hearing the Architectural & Site Review application. 3) Complete a Conditional Use Permit request for 16 residential units.e4) Complete Architecture & Site Review approval for the historic neighborhood combining district. AHE 04-01 4 May 20, 2004 RECOMMENDA TION Staff recommends that the Planning Commission forward a recommendation of APPROVAL to the City Council for sixteen 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 Conditional Use Permit and Architectural & Site Review to obtain a StaffRecornmendation 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 Conditional Use Permit and Architectural & Site Review and such other City approvals as may be necessary. 4. Time Limits. The Applica;nt must obtain all Approvals within two (2) year from the date of any 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 ilIiam F aus, Planning Division Manager bfaus@ci.gilroy.ca.us l~DO A TTAClll\lENT #) EXElytP'T' FROM COlv1PE1'"'Il"'ION 2004-2013 Adopted by the City Council on July 16, 200] [amended on September 3, 2002 J Targe! for l11<lrkel driven housing: Tilrget for exempt housing: 2.550 -units Tuesday, May 18,2004 900 units ", ----------------------------------------- ------------------------------------------ 1 O-year (2004-2013) Gro\\ih Lirnil: :}.450 unit;;:; * Specific tan.!{~ts for cxcmnt housill2: "affordilble'. , 530 units "senior housing" 120 units "affordilb1c senior'. ] 00 units "sl1mll projects" 1 50 units [**] [individuals 62 and over] lindividuals 02 and oYer] [12 units or less] "Afford a ble" (AHE) File # A licant AHE 04-0] Mike Bertolone Units Re uested ]6 AHE 04-02 Shirley Lulevitt 8 Location 7433 Monterey Street 7031 Street Status In Process Monterey In Process Remaining Units '", 506 "S H " enlor OUSID2 File # ADDlicant Units Requested Location' Status SHE 02-01 Village Gieen 39 Hecker Pass & Santa Teresa Granted SHE 02-Q2 John Kent 24 Cypress Court Granted SHE 03-0] Salvatore Oliveri 44 Monterev Road In Process Npmber' 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 ATTACIIMENT #1 "SlnaIP' (SPE' I I 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 Road Approved Thompson SPE 03-05 Rancho 16 W of Sadler Dr. at Approved Meadows terminus of Sprigway Gerry , DeY oung .. 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 Miller Under Review " Mussallem Avenue SPE 03-11 .' \:. The James 12 6555 Monterey Rd. Under Review "d: i Group SPE 04-01' I ' \ The James 14 NW c/o MiUer Ave Under Review , , , Group & Th0mas Road SPE 04-02': . , Lewis St. 12 SE corner Lewis & Approved : Partners Monterey 7589 Monterev 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 i GUSD 9 Wren Ave at Vickery Under Review SPE 04-06 I Chappell 10 West of Mesa Ridge Under Review Development NlImb,..~r Units ISQ , in PrOms Remaining Units 0 G:\COMDEV\RDO docs\RDO Status Reports\RDO exempt log [2004-2013].doc A l'TACIIMENT #2 , P_".... D.',"'-'"O.' n':.lit1.,ft~..t'~.:'.r.JIOn-.l' I':.~.O' "". W' 'Tll II!m' ITS ii, u iH.j~ ....., "t " . ~ Ii\ . 0 ", r " tOO4J.iO I S Adopted by the City Council on July 16, 2001 [ amended on September 3, 2002 ] Tuesday, May 18,2004 Target fO,r market driven housing: Target for exempt housing: 2,550 units 900 units * ------------------------------------------ ------------------------------------------ , ' 10-yea~'(2004-2013)Growth Limit: 3,450 units 5-year, (~q04~2008) growth limit:, 1,380 '" Specifi~ tar2ets for exempt bousin2: "affordable" "senior housing" "affordable senior" "small projects" 530 units 120 units 1 00 units 150 units [**) [individuals 62 and over] [individuals 62 and over] [12 units or less] Total: 900 units [**) The first 100 units cannot be considered for re-al/ocation until the end of the 1 O-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 2010 240 202 2007 166 166 2008 202 202 2009 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 during the J 994 ROO competition. G:\COMDEVIRDO docs\RDO Status RepOrts\RDO Numerical Growth Lirnit,s [2004-2013] big picture. doc A l'TACHl\1ENT #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) The 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 and the project is specifically approved for exemption by the City . ,Council. Such projects may not be immediately adjacent to another project exempted under s~bsection (3) .or (4) of this Section within the previous three (3) years except where the' City , . C~uncil approves a sp~cific exemption. 'th~ City Council shall grant a~ exemption under this' subsection only if the City Council ,de,ermines 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 e'ements in , detetmining whether to grant this exemption: ' a. The number of exempt unit; which have already been granted during the current ROO 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; d. 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' 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. 2004-67 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 21st 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. () ? · A-~~' ~~ityOfGilrOY (Seal)