SR 06:076 - Laserfiche WebLink

. . Staff Comment: The IDC Guidelines anticipate various ratios if the IUC's are not used for "like for like" housing. While it is difficult to quantify specific ratios without the benefit of a proposed development plan, the developer requested ratios are consistent with those discussed previously by the Council. As an alternative to the above ratios, staff could draft language indicating the above ratios are anticipated but that a final decision is subject to a development plan. The Amendment #1 to the Affordable Housing Agreement (Attachment 1) reflects the recommendations included above. IMPACT TO PUSD As part of the IUC review process in September 2003, the City-PUSD Liaison Committee reviewed potential impacts that IUC's 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 IUC's is approved, the property would be appraised assuming a residential project with 100% market units. If the IUC's 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 meeting 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 affirmed 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 5) is a copy of a draft amendment to the Option Agreement addressing this matter. Staff understanding is this Amendment has been approved by the school district and that it will be adopted if the Council approves the request for IUCs, Because the City is not a part to the Option Agreement, no approval is required by the City, SR:04:260 Page 8