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Resolution 2005-50RESOLUTION NO. 2005 -50 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING AHE 05 -01, AN APPLICATION FOR AN AFFORDABLE HOUSING PROJECT EXEMPTION FROM THE RESIDENTIAL DEVELOPMENT ORDINANCE, APNs 841 -04- 026 and 841 -04 -027 WHEREAS, South County Community Building c/o Nancy Wright ( "Applicant ") submitted AHE 05 -01, requesting an Affordable Housing Exemption from the Residential Development Ordinance ( "RDO ") to build one hundred and one (101) units on two adjacent parcels totaling 11.95 acre currently zoned Downtown Commercial /Medium Density Residential District (CM -R3) located at 111 Lewis Street, APNs 841 -04 -026 and 841 -04 -027; 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 sections 50.62(b)(3) and 50.62(b)(4) and said application was submitted pursuant to 50.62(b)(3) and 50.62(b)(4), the criteria thereof are set forth and fully discussed in the Staff Report dated May 10, 2005 ( "Staff Report"), which is attached hereto as Exhibit A and incorporated by this reference; and IJH16607083 01 -071205- 04706089 Resolution No. 2005 -50 WHEREAS, the Planning Commission reviewed application AHE 05 -01 at a duly noticed public hearing on May 5, 2005, and recommended that the City Council approve the project for the construction of one hundred and one (10 1 ) units, and WHEREAS, the City Council reviewed application AHE 05 -01 and all documents relating thereto and took oral and written testimony at its duly noticed public hearing of June 6, 2005; 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 follows: UH1660708.3 01 -071205- 04706089 1. The RDO exemption pursuant to 50.62(b)(3) and 50.62(b) (4) limits a project to 75 units per specific housing type. Although the 26 single family units in this application could be considered as additional to the 75 single family units exempted by AHE 05 -01, this project as submitted by Applicant has provided 75 units as affordable condominiums and/or townhouses with the remaining 26 units designated as a separate housing type, which is affordable single family home units. The Zoning Ordinance provides a specific exemption from the 75 unit limitation for units proposed within the three categories of housing types described as (a) single family homes, (b) condominiums or townhouse ownership units or (c) rental units. -2- Resolution No. 2005 -50 2. The project is hereby granted specific exemptions pursuant to Zoning Ordinance section 50.62(b)(3) and 50.62(b)(4) from the limitation upon granting exemptions to the RDO for different housing types. 3. The project complies with Zoning Ordinance section 50.62(b)(3) and 50.62(b)(4) in that it would substantially benefit the City, and would not create significant negative impacts to public facilities, to providers of public services in the community, or to the Gilroy Unified School District. The City Council makes these findings based on facts as set forth in the record, including the attached Staff Report. B. AHE 05 -01 should be and hereby is approved subject to the conditions in the attached Staff Report, along with three additional conditions, as follows: UH1660708.3 01- 071205 - 04706089 1. The applicant shall be subject to the requirements of the "Affordable Housing Exemption Procedure for Private Developments" policy. 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 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, -3- Resolution No. 2005 -50 the Planning Division Manager may grant an extension of time not to exceed one year. PASSED AND ADOPTED this I Sth day of July, 2005, by the following vote: AYES: COUNCILMEMBERS: CORREA, DILLON, GARTMAN, MORALES, VALIQUETTE, and VELASCO NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS ATTEST - Rhonda Pellin, City Clerk \J H\660708.3 01- 071205 - 04706089 -4- NONE PINHEIRO APPR . Prai artman, May ro Tempore Resolution No. 2005 -50 EXHIBIT A May 10, 2005 TO: Jay Baksa, City Administrator The City Council FR: Gregg Polubinsky, Planner II, gpolubinsky@ci.gilroy.ca.us RE: ABE 05 -01, South County Community Builders, c/o Nancy Wright At their May 5 meeting, the Planning Commission reviewed the subject project and recommended the following action: AHE 05 -01 Recommendation to approve (6 -0 -1) Commissioner Boe was excused The following materials are attached: ➢ Staff Report, dated April 28, 2005 ➢ Attachment # 1, RDO Exempt From Competition ➢ Attachment #2 RDO Numerical Growth Limits ➢ Site layout and elevation T35-T"11-1. ("k f Yy i K, +3 '. Al ✓ Ili P lWW 4 "`.. L m,,� �,. .0 � May 10, 2005 TO: Jay Baksa, City Administrator The City Council FR: Gregg Polubinsky, Planner II, gpolubinsky@ci.gilroy.ca.us RE: ABE 05 -01, South County Community Builders, c/o Nancy Wright At their May 5 meeting, the Planning Commission reviewed the subject project and recommended the following action: AHE 05 -01 Recommendation to approve (6 -0 -1) Commissioner Boe was excused The following materials are attached: ➢ Staff Report, dated April 28, 2005 ➢ Attachment # 1, RDO Exempt From Competition ➢ Attachment #2 RDO Numerical Growth Limits ➢ Site layout and elevation City of Gilroy Community Development Department Planning Division 7351 Rosanna St. Gilroy, CA (408) 846 -0440 Affordable Housing Exemption FILE NUMBER: AHE 05- 01(05020019) APPLICANT: Gilroy Cannery/ South County Community Builders Nancy Wright (408) 842 -9181 LOCATION: 111 Lewis Street STAFF PLANNER: Gregg Polubinsky, gpolubinsky@ci.gilroy.ca.us REOUESTED ACTION: April 28, 2005 Affordable Housing Exemption request to allocate 101 residential units to a 11.95 acre mixed use project DESCRIPTION OF PROPERTY: Parcel Number: 841 -04 -026 and 027 Parcel Size: 11.95 Acres, (520,542 square feet) Flood Zone: "X ", Panel #060340 0002D, 8/17/98 STATUS OF PROPERTY: Existing Land Use General Plan Designation Warehouse/Brownfield Downtown Commercial/ Medium Density Residential STATUS OF SURROUNDING PROPERTIES: Existing Land Use North: Rebekah's Children's Home East: Residential South: Residential/Light Industrial West: UP Tracks/Retail General Plan Designation Medium Density Residential Low Density Residential Low Density Residential/ General Services Commercial Downtown Commercial Zoning CM/R3 Zoning R3 R1 R1 /CM Cam► AHE 05 -03 2 ,April 28, 2005 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 BOACTS: The review and approval of this application exempts the Applicant from the RDO Ordinance and because there is no resulting entitlement for residential development being granted, the City's action does not constitute "approval of a Project" for purposes of CEQA review. Future CEQA review is assured upon •ubmittal of future applications where the action would then be a "Project." STATUS OF AFFORDABLE HOUSING EXEMPT UNITS: ➢ See Attachment #1, RDO Exempt from Competition, 20042013. ➢ See Attachment #2, RDO Numerical Growth Limits, 2004 -2013 ANALYSIS OF REOUEST: The Applicant is requesting an Affordable Housing Exemption allocation for 101 multi-family residential homes. The Cannery Project is an 11.95 acre project comprising 40,000 square feet of office with minor retail and 206 residential units. The 206 residential units of new development will all be for -sale units. The units will include six housing styles which include 1) flats, 2) lofts, 3) stacked and 4) side -by -side townhouses, 5) live/work units and 6) single - family bungalow styled homes. All of the units in this oroject will be for -sale and will offer an residential ownership opportunity. This is the fast application of a series of applications which will come before the Planning Commission and the City Council for the Cannery Project. These future applications include: ➢ Gilroy Cannery Master Plan review and approval ➢ Tentative map review and approval for condominiums and single - family homes. ➢ Architectural & Site review and approval for each phase of the project. The mixed use buildings just east of the rail line will incorporate both lofts and flats. There will be a variety of townhouses including livelwork units that provide for a small office or retail space on the first floor. Finally the single - family residential units will consist primarily of bungalows, the typical style of home in the existing east -side neighborhood. The requested 101 affordable housing units will be spread among the following flat, loft and townhouse residential units proposed for the project which includes: 2- Bedroom flat 48 units 3- Bedroom flat 8 units 2- Bedroom loft 28 units 3- Bedroom loft 34 units Townhouse 42 units Stacked townhouses 16 units AHE 05 -03 3 April 28, 2005 Project Strengths: The following characteristics of this project were considered to be strengths when evaluating this application: ➢ The proposed project is an "infill" development, ➢ The project transforms a brownfield site into a vibrant residential and office mixed -use project. ➢ The project brings a large regional office use and other speculative offices into the downtown core occupying up to 40,000 of the proposed project. ➢ The project brings 6 housing types and 206 housing units into a location that compliments the downtown and has a prominent connection with transit. ➢ All of the units in this project will be for -sale and will offer an affordable ownership opportunity. ➢ Staff sees this project as setting a standard for the downtown area for master planning and new development. ➢ Staff believes that this project complements both the existing east -side neighborhood and the downtown retail district. CRITERIA (See attachment #3. Residential Development Ordinance Section 50.62): The following elements should be used 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; This is the first request of Affordable Housing units (see attachment #1 and #2) for the 2004 through 2013 period. Two prior requests were closed when market rate units became available downtown. b. The affordability of the project; The Applicant is required to meet the following affordability requirements: • At least 40% of the units (40 units) must be affordable to households earning 50% to 60% of the median income for Santa Clara County. • At least 30% of the units (31 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 (30 units) should be sold 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 will be close to Caltrain and other VTA transportation routes. The units will be unique in that they will be scattered among a much larger project and will be of a variety of housing types. d. The number of affordable housing projects constructed or proposed within the project vicinity; There are currently no other housing projects proposed in the downtown or the vicinity of the downtown. This is the same developer that received regional recognition for the planning and success of the Los Arroyos project. ABE 05 -03 4 April 28, 2005 e. The diversity of unit type and architectural styles which are proposed in the entire development, and This project proposes to develop multiple buildings within an urban center. There will be b distinct housing types comprising a total of 206 residential units. f. The site design and proposed building elevations. Project Specifications include: ➢ The demolition of warehouse structures and redevelopment of a brownfields site into a vibrant downtown neighborhood compatible with both the downtown commercial area and the existing east side neighborhood. ➢ The building project will provide outdoor pedestrian spaces and vehicular streets. Also proposed is a promenade along the existing water district channels Please Note: The site for the Gilroy Cannery Project lies within the Downtown Specific Plan boundary which is currently under development by the Downtown Specific Plan Task Force. Staff has reviewed this request with the work that the Downtown Task Force has completed The request is in general compliance with the Specific Plan progress to date. Staff and the Applicant realize that as the Specific Plan is completed and approved by City Council there may be modifications to the project design as a result of the Prior To Development, The Applicant Will Be Required to: #1. Obtain approval for an additional 105 market rate residential units #2 Complete Master Plan approval #3 Complete all necessary Tentative Map reviews. #4. Complete Architecture & Site Review PUD approval. RECOMMENDATION 1. Staff recommends that the Planning Commission forward a recommendation of APPROVAL to the City Council for this request for 101 Affordable Housing Exemption units. Respectfully, r 0" 4 ridee, I William Faus, Planning Division Manager bfaus@ci.gilroy.ca.us Target for market driven housing: 2,550 units Target for exempt housing: 900 units --------------------- 10 -year (2004 -2013) Growth Limit: 3,450 units Specific tareets for exempt housing: "affordable" 530 units "senior housing" 120 units "affordable senior" 100 units "small projects" 150 units [individuals 62 and over] [individuals 62 and over] [ 12 units or less] Attnrhmpnt ##1 Wednesday, April 27, 2005 I "downtown" 100 units within the "proposed" Downtown Specific Plan boundary "Affordable" (AHF) File # Applicant Units Requested Location Status SHE 02 -01 AN48 981486" 46 Hecker Pass & Santa Teresa Granted 'e4'83 John Kent S Cypress Court Canceled AHE 05 -02 Cannery Project 101 111 Lewis Street Under Review Remaining Units 429 "Senior Housing" 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 Nuoo of Units in Piftesi Salvatore Oliveri 44 107 Monterey Road Granted Remaining Units 13 "Affordable Senior" File # Applicant Units Requested Location Status Remaining Units 100 G: \COMDEV\RDO docs\RDO Status Reports\RDO exempt log [2004- 20131.doc Attachment #1 "Downtowlrf' fallocated only within the ` vrovosed" Downtown Specific Plan boundary] File # Applicant Units Requested Location Status SPE 04 -07 Alfonso Almeida 12 7680 Monterey St. Approved SPE 04 -08 Shirley Lullevitt 8 7031 Monterey St. Approved SPE 04-09 Michael Bertolone 12 7433 Monterey St. Approved Remaining Units Rancho Meadows Gerry DeYoung 68 W of Sadler Dr. at terminus of Sprigway Approved "Small" (SPE) File # Applicant Units Requested Location Status SPE 03 -02 Delcurto Group 1 (13 requested, 12 from 2003) 8895 Kern Avenue Approved SPE 03 -03 James Suner 16 240 Farrell Ave. Approved SPE 03 -04 Don Thompson 12 Mesa Road Approved SPE 03 -05 Rancho Meadows Gerry DeYoung 16 W of Sadler Dr. at terminus of Sprigway Approved SPE 03 -06 Camino Enterprise 17 Terminus of Rodeo Dr. Approved SPE 03 -07 N.P. Mussallem 5 8810 Kern Avenue -Approved SPFS 99 a 496 o. Boni Millie- �8 Glesed SPE 03 -11 The James Group 12 6555 Monterey Rd. 'Approved SPE 04 -01 The James Group 14 NW c/o Miller Ave & Thomas Road Approved SPE 04 -02 Lewis St. Partners 12 SE corner Lewis & Monterey 7589 Monterey Approved SPE 04 -03 The James Group 5 Lone Oak Court Under Review SPE 04 -04 The James Group 8 Thomas Road and Santa Teresa Blvd. Under Review SPE 04-05 GUSD 9 Wren Ave at Vickery Approved SPE 04 -06 Chappell Development 10 West of Mesa Ridge Under Review SPE 05 -01 The James Group 13 9025 Kern Ave Under Review Number of Units in Process 150 Remaining Units 0 G: \COMDEV\RDO docs\RDO Status Reports\RDO exempt log [2004- 2013].doc Attachment #2 Target for market driven housing: 2,550 units Target for exempt housing: 900 units 4 3 _t . 5 -year (2004 -2008) growth limit: 1,380 * Specific targets for exempt housing: "affordable" 530 units "senior housing" 120 units [individuals 62 and over] "affordable senior" 100 units [individuals 62 and over] "small projects" 150 units ** [12 units or less] Total: 900 units ** The first 100 units cannot be considered for re- allocation until the end of the 10 -year cycle (2004- 2013), and the remaining 50 units cannot be re- allocated under any conditions. 1II1IIII11I1I111I1IIIII11 / 11 1111 11 111111 1I11 II111 111II IIII II II II1111111111111111lIIIIIIIIIII HW IIIIIIII111 /111 N1 HIM /11111111111111IIIIII111 111I III IIII111 /11111 /1111IIIIII /111111 "downtown projects" 100 units * ** [General Plan commercial area] * * * "downtown projects" are not tabulated in the 10 -year housing goal Buildout year 2004 2005 2006 2007 2008 1 2009 2010 2011 1 2012 2013 Totals RDO Limit: 326 410 315 166 202 240 240 240 241 170 2,550 2001 allocations 276 360 315 166 202 202 202 202 203 131 2,259 RD9"I * * ** 50 50 100 to ShaaeWs Eagle Rldxe development, an action taken by the City Cow" during I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2005 -50 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 18th day of July, 2005, 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 10th day of August, 2005. i City Clerk of the City of Gilroy (Seal)