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10 pLEASANTON. CITY COUNCIL AGENDA REPORT September 16, 2014 Assistant City Manager TITLE: CONSIDER SELECTION OF BELOW MARKET RATE AFFORDABLE HOUSING UNITS OR A CASH PAYMENT FOR THE RECENTLY APPROVED E & S RING 345 UNIT MULTI - FAMILY HOUSING DEVELOPMENT (PUD -87) LOCATED AT 3150 BERNAL AVENUE SUMMARY On August 6, 2013, the City Council approved a Planned Unit Development Application (PUD -87) submitted by E & S Ring Management (Ring), on behalf of Frank Auf der Maur and Konrad Rickenbach (property owners), to construct a mixed use housing and retail development on a 16 -acre site located at 3150 Bernal Avenue at the southeast corner of Bernal Avenue and Stanley Boulevard. The site is one of the nine sites rezoned in January 2012 for high - density multifamily development in order to meet the City's share of the regional housing need. The project includes 345 residential rental housing units and up to approximately 38,781 square -feet of retail space. As part of the approval process, Ring entered into an Affordable Housing Agreement (AHA) (Attachment 1) with the City that provides for either 52 below market rate (BMR) affordable units or a $4.5 million cash payment as determined exclusively by the City Council. Ring is in the process of selling its interest in the project and has requested the City Council make a decision on its affordability preference. As indicated in the attached July 23, memo from Ring Attachment 2), it is recommending the City Council select the cash payment option. In view of this request and the terms of the AHA, this item is being presented for the City Council to provide direction regarding selection of an option. RECOMMENDATION Inform E & S Ring of the City Council's decision to require the development to include the 52 affordable housing units as detailed in the development's Affordable Housing Agreement. FINANCIAL STATEMENT The 52 BMR affordable units would provide long term affordability for residents at this project without financial contributions from the City. The cash payment would provide the City with an opportunity to either develop a fund to support of a future affordable housing development or for meeting City one -time operational or capital needs.