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17 <br /> <br /> Item 12a <br /> PUD-90-10, JosePh W, Callahan <br /> Request for a waiver. of the $600/unit affordable housinq and other <br /> fees for a~ units in the Palomino Place =ownhouse Dro~ect located <br /> a~ soo p~lomino Drive {northeast corner of Bernal Avenue a~d <br /> Palomino Drivel. Zonina for the property is PUD {Planned U~ <br /> Development) - Hiqh Density Residential District. (SR92:lST) <br /> <br /> Ms. Mohr was concerned that in the past there had been <br /> proposals which had come to Council and then were not built. She <br /> asked if there was any justification to the request to waive the <br /> fees. <br /> <br /> Joe Callahan, Callahan Property Company, 5674 Stoneridge <br /> Drive, felt that it was a policy issue. The fee for this project <br /> represents approximately one percent (1%) of the total cost. It <br /> represents ten percent (10%) of the projected gross profit margin. <br /> The average cost of the units would be $292,000. The cost of the. <br /> affordable units is $176,000. He believed.that there was an <br /> opportunity to generate more affordable units in market based <br /> projects. He understood that the growth management fee was to off- <br /> set capital improvement costs in other par~s of the City. <br /> <br /> Ms. Mohr asked if there had been consideration at staff level <br />as to what could be done to get these type of projects built. <br /> <br /> Mr. Swift replied the fees for the moderate income units had <br />been waived as much as possible. To waive them for the fair market <br />units was going too far to get moderate income housing. The <br />density had been increased and many other considerations and <br />changes had been made. These are very expensive projects with all <br />of the niceties included. If Council wanted a moderate income <br />project, it would have to compromise on density, the size of the <br />units and the amenities. <br /> <br /> Mr. Butler stated that the policy for fee waivers was very <br />clear. There is a trade-off between incentives to builders and <br />what can be built. Council has addressed the trade-off in the past <br />and has come to the conclusion that waiving fees for the affordable <br />units was logical, but not for entire projects. He did not object <br />to re-addressing the policy. The way to address this would be to <br />have a different kind of product with a higher density and to build <br />in less expensive places. <br /> <br /> Ms. Mohr agreed with Mr. Butler's comments. She requested <br />that the Affordable Housing Task Force review or study <br />affordability policies. <br /> <br /> Mayor Mercer did not object to that request. <br /> <br />5151e2 17 <br /> <br /> <br />