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<br />Mr. Sweeney noted that Ponderosa Homes decided early on that it might want to <br />sell this project to a non-profit developer. He Indicated that BrIdge Housing might wish <br />to purchase this project If Ponderosa Homes gives them six acres of Pleasanton land <br />free of charge and $7,700,000 in cash. <br /> <br />Ms. Ayala was concerned about the option to the School District. <br /> <br />Mr. Sweeney pointed out that the Incluslonary Unit Credits have a term of five- <br />years. He believed the option began on May 1, 2003 and expires on May 1, 2008. <br />When Ponderosa Homes Increased the affordability of this project, it notified the <br />neighbors by conducting a series of meetings. <br /> <br />Ms. Ayala indicated that she did not object to increasing the affordabillty of this <br />project. She eskecl Mr. Sweeney to review tha rent rates. <br /> <br />Mr. Sweeney mentioned that there is a fair amount of vacancy in apartments in <br />the Tri-Valley because of the downtum In the economy, and rents on the market rate <br />houses were much lower than in the past. He surveyed some units last week and <br />believed the average differenca between what Ponderosa Homes will be charging and <br />what a one or a two-bedroom apartment in similar type units averages is approximately <br />$400 per month. <br /> <br />Mr. Bocian pointed out that page two of the staff report provides a chart depicting <br />the rental rates for the senior apartment complex for this project. He noted that 23 units <br />are at 50 percent of the area median income, and 55 units are at 60 percent, which will <br />be priced at a household of one person. Typically, these units are priced for a <br />household of two people, which actually lowers the rent. <br /> <br />Mr. Brozosky noted that a previous Council approved this plan. <br /> <br />Mayor Pica closed the public comments. <br /> <br />Mr. Brozosky noted that the City hes been trying to obtain more school spece <br />due to crowded schools and significant traffic problems around the schools. He was <br />concerned that If the School District does not build the tenth elementary school, there <br />will be different problems in the City with traffic congestion. He would like Council to <br />consider the option that these inclusionary unit credits can only be used on the Busch <br />property once a tenth elementary school is under construcl1on. <br /> <br />Mayor Pico pointed out that most of these credits will be for senior housing and <br />will not impact the School District for providing more schools. The City does not have <br />the ability to tell the School District when to build a school. Linking these credits to <br />another elementary school does not have any real nexus particularly because these are <br />senior units. <br /> <br />Mr. Brozosky noted that previously, the School District purchased land in <br />Pleesanton and sold it at a profit. The School District did not use the land to build the <br />facilities that are needed in this community. Because these credits are worth a <br />significant amount of money to Ponderosa Homes, he was concemed that Ponderosa <br />would try to buyout this option and give the School District a significant cash windfaH. If <br /> <br />Pleasanton City Council <br />Minutes <br /> <br />7 <br /> <br />11/02104 <br />