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Mr. Bocian noted two minor amendments to the agreements: 1) Section 8 of the IIJC Agreement states <br /> that the fallback provision would go into affect October 31, 2013 (should the developer fail to secure the <br /> bond financing). This date is meant to reflect the expiration of the bond allocation, which is as yet <br /> unknown. 2) He presented a slide depicting changes to a table, which acts as a p aceholder should the <br /> alternative affordability plan take effect, contained within the Affordable Housing Agreement. <br /> Councilmember Brown requested clarification on 100% AMI as it relates to affordability. <br /> Mr. Bocian explained that staff anticipates the rent levels for this project to exceed 100% AMI. By <br /> restricting the 8 replacement units to 100% AMI, it still preserves a fair level of affordability. <br /> Councilmember Brown referenced the impacts of the recent Palmer case and asked how what amounts <br /> to cap and trade is more acceptable to mandate than an overall % of affordability. <br /> Mr. Bocian explained that neither can be mandated. St. Anton Partners have demonstrated a <br /> willingness to provide a certain level of affordability within their project as a result of the agreement and <br /> ultimately, the onus and impact of using those credits falls on the developer. <br /> Councilmember Brown asked if staff prepared a pro forma rent analysis, to which Mr. Bocian said "no." <br /> Councilmember Brown asked who would assume responsibility for managing the units. <br /> Mr. Bocian said he understood it to be a third party affiliated with St. Anton Partners. <br /> Councilmember Pentin inquired about the marketing and selection process for the 3 accessible units, <br /> as well as what oversight the City has of that process. <br /> Mr. Bocian said there is language requiring the property manager to market the availability of the units, <br /> though it does not specify the process. In the event that they are unable to rent the units within 10 days, <br /> they can be made available on the open market. <br /> Councilmember Pentin said he would love to see accessible units remain accessible. While he <br /> understood the larger need to rent the units, whether they be marketed for 10 days or 30 days, he <br /> worried that they could go to long-term residents not actually in need of an accessible unit. <br /> Ms. Stern concluded the staff presentation, noting several amendments to the Council's recommended <br /> action. She also stated that within the last day the applicant approached staff about entering into a <br /> development agreement in order to memorialize the City's and the applicant's obligations regarding the <br /> project. Staff is amenable to the concept but acknowledges the process required to approve such an <br /> agreement. Staff is therefore proposing that the Council introduce the PUD ordinance this evening and <br /> then complete the approval with a second reading when the development agreement is ready for <br /> review and action. Staffs recommendation includes the following findings and actions: <br /> • The addendum to the Supplemental Environmental Impact Report (SEIR) may be prepared per <br /> the California Environmental Quality Act (CEQA); <br /> • The previously prepared SEIR, including the adopted CEQA findings, is adequate to serve as <br /> the environmental documentation for the project and satisfies all CEQA requirements; <br /> • The proposed PUD Development Plan (striking out development agreement language) is <br /> consistent with the General Plan; <br /> • The exceptions to the Housing Site Development Standards and Design Guidelines are <br /> appropriate; <br /> • Approve the Affordable Housing and Inclusionary Unit Credit Agreements; <br /> • Authorize the City Manager to sign said agreement concurrent with the processing of the newly <br /> proposed development agreement; <br /> City Council Minutes Page 7 of 14 May 21,2013 <br />