SR 06:052 - Laserfiche WebLink

REVIEW BY PUSD As noted above, as part of the credit review process, the City-PUSD Liaison Committee reviewed potential impacts that affordable housing credits may have on the Option Agreement with the PUSD and Ponderosa. The Option Agreement provides the PUSD an option to purchase a 23-acre site for the development of a new school and sets forth the method for determining the sales price. Of primary concern is the fact that the issuance of credits could affect the appraised value of the site if the PUSD exercises its option to purchase the property. The price of the land is determined by an appraisal of the property. As a result, if the developer's request for credits is approved, the property would be appraised assuming a residential project with 100% market units. If the credits are not approved, the appraised value would be based on a residential project with a mix of market and affordable units. Because the 100% market project would most likely appraise at a value that is higher than a mixed market/affordable development, the price the PUSD would have to pay for the property would be higher. After rneeting with City staff, PUSD staff met with Ponderosa to explore options to mitigate the impact the issuance of credits would have on the Option Agreement. As an outcome of these discussions, at its meeting of October 14, the PUSD Board aff'mned that the appraisal process should be conducted as if the property would be developed with a mix of affordable' and market housing consistent with the City Inclusionary Zoning Ordinance. Attached for council review (Attachment 3) is a copy of the letter outlining the Board's action. Because the City is not party to the Option Agreement, no approval is required by the City. However, based on the attached letter, staff has determined the matter has been resolved to the District's satisfaction. COMMISSION RESPONSE TO THE RETENTION OF CREDITS IN THE INCLUSIONARY ZONING ORDINANCE In addition to reevaluating the use of credits as it relates to the Busch development, the Council asked the Commissions to review the retention of credits as part of the Inclusionary Zoning Ordinance. As an outcome of this discussion, both commissions expressed their support for the credits, as a useful tool for meeting affordable housing needs. The Commissions indicated that any particular concern regarding the application of credits could be addressed by the Council which has the authority to decide each request for credits on a case-by-case basis. Staff continues to support the retention of credits as part of the Inclusionary Zoning Ordinance. While the application of credits will not be frequent, it presents another tool that may assist with acquiring affordable housing. SR:03:308 Page 6