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BACKGROUND City staff and the Irby Ranch developer have worked with Sunflower Hill, a nonprofit public benefit corporation, to facilitate the development of multi-family supportive housing for adults with special needs as part of the Irby Ranch project The dedication of the 1 64 acres of land to Sunflower Hill for this purpose, and the payment of one million dollars to Sunflower Hill to assist with development costs, is proposed to fulfill the developer's obligations under the City's Inclusionary Housing Ordinance The specific terms of the developer's contribution are outlined in a separate Affordable Housing Agreement, Framework Agreement, and Development Agreement with the City (all of which are on the same agenda) DISCUSSION This Exclusive Negotiating Rights Agreement (ENRA) between the City and Sunflower Hill is intended to establish procedures, milestones and standards for the City and Sunflower Hill to progress towards the development of the supportive housing project for adults with special needs The ENRA includes the terms of the Framework Agreement, which sets the broad parameters of the Sunflower Hill project as a maximum of thirty (30) residential units in multi-family style buildings, a maximum height of two stories (30 feet), a minimum of thirty (30) parking spaces, and a community center not to exceed 5,000 square feet The ENRA is clear that Sunflower Hill must process a planned unit development (PUD) plan for its project, which would be subject to the normal public hearing before the Housing Commission, Planning Commission and City Council 1 The ENRA envisions the negotiation of a subsequent disposition and development agreement between the parties to facilitate the transfer of the property to Sunflower Hill and negotiation of further financial support (capped at $2 25 million, inclusive of the $1 million from the Irby Ranch developer) for the development of the supportive housing project Such future disposition and development agreement and financial support would proceed through the standard public hearing process before the Housing Commission and City Council The ENRA addresses several issues including provisions for predevelopment funds, performance milestones for Sunflower Hill (both reviewed by the Assistant City Manager), the process for future agreements, a restriction on the City to negotiate only with Sunflower Hill during the term of the agreement, and the City's approval of a development partner for Sunflower Hill The agreement also has common provisions such as the length of term, the process for agreement termination, identification of the conveyance as an AS-IS conveyance, provisions for disclosures, and right of entry in advance of the conveyance so that Sunflower Hill can carry out studies of the property The ENRA provides a City commitment of up to $250,000 in funds for predevelopment costs (with expenses subject to approval by the Assistant City Manager) This contribution represents a portion of the larger City commitment to assist in funding the project that is addressed in a separate project Framework Agreement between the City, ' Because the ENRA is only providing for funding for predevelopment costs, and no approval of any project, the ENRA is exempt from environmental review under CEQA Regulation §15262 Page 2 of 3