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HomeMy WebLinkAboutResolution 1999-46 . . RESOLUTION NO. 99-46 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY PARTIALLY APPROVING M 98-l2/AHE 98-04, AN APPLICATION FOR AN AFFORDABLE HOUSING EXEMPTION FROM THE RESIDENTIAL DEVELOPMENT ORDINANCE, APN 810-21-06 WHEREAS, Spectrum Group ("Applicant") submitted M 98-l2/AHE 98-04, requesting an affordable housing exemption from the Residential Development Ordinance ("RDO") for the purpose of constructing 222 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 )(3), which criteria is set forth and fully discussed in the Staff Report dated March 19, 1999, which is attached hereto as Exhibit A and incorporated herein by this reference; and WHEREAS, the Planning Commission reviewed application M 98-l2/AHE 98-04 at a duly noticed public hearing on April 1, 1999, and voted to forward the request to the City Council without a recommendation; and WHEREAS, the City Council reviewed Application M 98-12/AHE 98-04 and all documents relating thereto and took oral and written testimony at its duly noticed public hearing of PlpriI19,1999;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)(3) IKHM\443126.01 93.042304706002 -1- RESOLUTION NO. 99-46 . . that the project, as modified by the action of 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 for 112 units only. More specifically, the City Council finds that the project is consistent with each of the six elements set forth in Zoning Ordinance section 50.62(b)(3), despite staffs conclusion that the application is not consistent with the number of exempt units which have already been granted during the current RDO cycle, and the number of years left in the cycle. City Council makes these findings based on the substantial evidence in the record, including the attached Staff Report. B. M 98-12/AHE 98-04 should be and hereby is approved subject to the two (2) conditions in the attached Staff Report, C. The request for an Affordable Housing Exemption from the RDO to allow construction of an additional 110 units should be and hereby is denied. PASSED AND ADOPTED this 7TH day of June, 1999, by the following AYES: COUNCILMEMBERS: GIFFORD, MORALES, SPRINGER, SUDOL ARELLANO, ROWLISON, GILROY NONE NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: IKHM1443126.01 93-042304706002 -2- RESOLUTION NO. 99-46 EXHIBIT A .e CommunIty Development Planning Division Staff Report File Number: M 98-12 / ARE 98-04 . '... Department March 19, 1999 Applicant: Spectrum Group (do Brian Myers) Location: Property located at the southwest corner of Santa Teresa Boulevard and Hecker Pass Highway Staff Planner: Melissa Durkin REQIJRSTED AC.TION: The applicant is requesting a 222 unit Affordable Housing Exemption from the RDO competition for the Village Green project. DESC.RIPTION OF PROPERTY: Parcel Number: 810-21-06 Parcel Size: 22.3:1: acres Flood Zone: Zone B, Panel # 060340000 1D Panel Date: 8/17/98 STATIJS OF PROPERTY: Fxi5ting T .and TJ5e Sing. Fam. Home/Fallow Ag. STATUS OF SURROUNDING PROPERTY: Fxi~ting T .and TJse N: Sing. Fam. Res./Condos S: S.F.R./Uvas CreeklGolfCourse E: S. F. Res./Undeveloped W: Agriculture General Plan Designation Medium Density Residential Zoning Al General Plan De~ifJ1ation Med. Density Res./Hillside Low Dens. Res.! Open Space High Dens. Res.!Gen. Servo Comrn. Rural Residential Zoning R3,RH Rl-PUD C3-PUD, Rl Al M 98-121 AHE 98-04 . 2 . 3/19199 C.ONFORMANC.R OF RRQIlFST WITH GRNRRAl. Pl.AN: The proposed project confonns 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. Tills project conforms with the policies of Gilroy's General Plan. The following example demonstrates this compliance: Re.idential Environment (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 efficient 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 -family units, especially units suitablefor lower income households and large families. " The proposed project is in confonnance with this policy, because it will be affordable to low income households. 1 Trhan Development and Commnnity De.ign (Section II): Policy 3: "Urban Development will only occur within the incorporated portion of the Planning Area. Land will 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 orderly, 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 approval of development in areas which would require major new facility expansion. " The proposed project is in conformance with this policy, because this site is contiguous to urban development to the north and east. RNVlRONMRNTAI. 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. . M 98-12 / ARE 98-04 3 . 3/19/99 OVERVIEW OF THE VII.I .AGE GREEN PROJECT: The Village Green project is a master-planned senior citizen residential development that is planned to have the following components: . 222 Dwelling Units Ci 75 Cottage Homes (Single Family Homes) Ci 72 Court Homes (Condominium Units) Ci 75 Apartment Units . Village Care Facility [Note: The City Council has determined that this facility is not subject to the RDO process.] Ci An assisted living and Alzheimer's care facility for seniors. . Village Market Ci An 11,000 square foot commercial development that will include a corner market and a deli. . Village Open Space Ci This project has 7.5 acres of open space and landscaping area, including a buffer area adjacent to Uvas Creek. ANALYSIS OF REQIJEST: The applicant is requesting approval of an Affordable Housing Exemption from the RDO under the provisions of Zoning Ordinance section 50.62 (b) (3), to allow the construction of 222 affordable housing units, as follows: .,.. 75 Cottage Homes (Single Family Homes) d' 72 Court Homes (Condominium Units) .,.. 75 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 City's Residential Development competition process: (a) single family homes, (b) condominiums or townhouse ownership units and (c) rental units. At their September 21, 1998 meeting, the City Council determined that the Spectrum Group could apply for an exemption through Zoning Ordinance section 50.62 (b) (3), because they will be forming a partnership with a non-profit organization to develop this project. Projects that 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 Summer of 1999. . . M 98-12/ ARE 98-04 4 3/19/99 As stated in section 50.62 (b) (3), 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 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 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; d. The number of affordable housing projects constructed or proposed within the project V1ClDlty; . 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. Following is staff's determination of this project's consistency with this exemption criteria: This applicant has agreed to mitigate all impacts on the Gilroy Unified School District [See Exhibit A]. An expanded 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 Cnnoi.tent with this criteria. 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 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 annual limits on the number of exempt units that 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, 898 units have been allocated through the exemption process, leaving a balance of 52 units available for the 5 years remaining in the cycle. Although 898 units have been allocated, only 538 of the units have received building permit approval. The remaining 384 units will be built over the next 2 to 3 years. There are currently not enough exempt units to provide full approval of the Spectrum Group's request. This issue was presented to the City Council at their meeting of March 15, 1999. At that meeting, the Council decided to allow this project to be presented to the Planning Commission to consider its merits. At the same time, the Council referred two other issues related to the RDO for Commission consideration and recommendation. These issues are: M 98-12/ ARE 98-04 . 5 . 3/19/99 A. Should there be an RDO competition in 1999; and B. Should units be moved from the RDO competition pool to the RDO-exempt pool to allow development of affordable units on a case by case basis? Discussion of these issues will occur with two accompanying staff reports [Potential re-distribution of remaining RDO units and Setting the 1999 RDO Numerical Limitsfor 2000-2003]. The actions taken by the Planning Cormnission and City Council in connection with these two staff reports will directly impact the decision made for the Spectrum Group's Affordable Housing Exemption request. The Spectrum Group's request is Not Consistent with this criterion, due to the limited number of RDO-exempt units available (52). B. The affordability of the project The mortgage or rental amount of the homes in this development will be as follows: HOIJSING TVPR NO. OF IJNITS PRICR Court Homes (Condominiums) Court Homes (Condominiums) Cottage Homes (Single Family) Cottage Homes (Single Family) Cottage Homes (Single Family) 37 35 15 25 35 $118,000 $140,000 $152,500 $175,000 $200,000 Average Price: $155,976 Apartment Units - One Bedroom Apartment Units - Two Bedroom $627 (average) $705 (average) The proposed rental rates for this development are below Staff's proposed rental rates for 1999 (One Bedroom: $702, Two Bedroom: $789). The proposed sales rates meet the criteria contained within the proposed revised affordable housing policy. In addition, the average sales prices of the Village Green's units are within the range of average sales prices for the recently approved Los Arroyos project ($146,688 to 171,059). Staffbe\ieves this project is Cnnsistent with this criterion. 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 approved within the City: 1. Monterra Village (34 Units) 2. Gilroy Park Apartments (74 Units) . . M 98-12/ ARE 98-04 6 3/19/99 3. Gilroy Garden Apartments (74 Units) 4. Villa Esperanza (21 Units) 5. Victoria Woods (75 Units) 6. Los Arroyos (60 Units) Therefore, there is still a need for 508 affordable apartment units in Gilroy. The proposed project would help meet this need by adding 75 senior apartment units. The Consolidated Plan did not specify the need for low income "for sale" homes, or for senior citizen homes in Gilroy, However, there are only five senior citizen housing developments (existing or proposed) in Gilroy, and all of these developments contain only rental units. There are a total of378 units in these developments, listed as follows: . Plum Tree West - 70 units . Sunset Gardens -75 units . Milias Apartments - 48 units . Victoria Woods (proposed) - 75 units . Wheeler Manor - '110 units Based on the information contained within the Consolidated plan, the lack of available senior housing in Gilroy, the lack of senior "for-sale" housing, and the aging of the population in general, Staff believes this project is Consistent with this criterion. D. The number of affordable housing projects constructed or proposed within the project vicinity There are no affordable housing projects near this site [See Exhibit B, map of affordable projects]. Staff believes that this project is Consistent with this criterion. E. The diversity of unit type and architectural styles which are proposed in the entire development There will be three different housing types within the Village Green project. These are: . Single family homes with three different price ranges . Town homes with two different price ranges . Apartment units In addition, the Spectrum Group has worked to create a wide mix of different architectural designs in this development, which will add architectural interest to the project. Please see the attached elevations submitted by the applicant for more detailed information. Staff believes this project is Consistent with this criterion.. . . M 98-12 / ARE 98-04 7 3/19/99 F. The site design and proposed building elevations The applicant has proposed a site design which shows a looped street around the exterior of the development, an open space area at the south side of the project, a meandering pathway through the center of the site, and welcoming entrance ways. Each of the three home types (single family homes, townhouses and apartments) has been designed so that it is distinct from the other two home types, but also' creates a coherent blend of architectural styles in the project as a whole. In addition, the applicant has chosen an architectural design that is sensitive to the site's location along the Hecker Pass corridor, and which meets the criteria set forth in the Hecker Pass Corridor Area Land Use Plan. Staff believes this project is Cnnsistent with this criterion. ST AFF RECOMMEND A TION: This project is inconsistent with Criterion A, because there are currently only 52 units available to be allocated through the RDO exemption process. Staff recommends that the Planning Commission select one of the three following options as a recommendation to be forwarded to the City Council: A. DENY the reques.t;Jlr B. APPROVE..up_ta...l2..unitUo..b.e.allo.l:ateJito this prnj.ec.t;Jlr C. IfJIfte1::..d.icussion nf accompanyinf staff reports Rl'sidJ!nnal DI'Vl'lopml'nt Ordinanc'4 1999 Numl'rical Limit. & Review and M 99-04, the Plan nine Cnmmission and Cit)c.C.nuncil determine that this project can he accommndated, A PPROVE this reqnest. If this project is approved. staff recommends that the following 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 Summer of 1999. 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. . . > I, RHONDA PELLIN, City Clerk ofthe City of Gilroy, do hereby certify that the attached Resolution No. 99-46 is an original resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 7th day ofJune, 1999, 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 23rd day of June, 1999. ~~. /J , ~~A\ City C erk of the City of Gilroy (Seal)