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HomeMy WebLinkAboutS22 - Development Agreement No. 8April 18, 1997 TO: Mayor and Members of City Council FROM: Affordable Housing Task Team ;NDA ITEM No. S22 April 28, 1997 EKY THE CITY COUNCIL ClTirl' OF NEWPORT BEACH APR 2 81997 RE: Development Agreement No. 8 Staff Report On July 10, 1995, the City Council approved a Development Agreement between the City of Newport Beach and Ford Motor Land Development Corporation (in 1996 the Development was amended to specify Pacific Bay Homes - a subsidiary of Ford - as the developer). The Development Agreement authorized Pacific Bay to construct 500 residential units on the site formally occupied by Ford Aeronutronics. The Development Agreement contains numerous provisions relative to affordable housing which can be summarized as follows: 1. Ford's affordable housing percentage was established at 15% of the number of units constructed; 2. An Affordable Housing Task Team was established to identify offsite affordable housing projects which could satisfy Ford's obligation; 3. Ford is obligated pay $2.5 million (less $5,000 for each unit which Ford agrees in writing not to build) to the City in the event that Task Team identifies a project which would, when constructed, satisfy Ford's obligations. 4. In the event the Task Team does not identify a project, Ford can satisfy its affordable housing obligation by constructing or rehabilitating offsite residential units, paying an affordable housing in lieu fee of $5,500 for each residential permit issued, or a combination of the foregoing. The Affordable Housing Task Team has conducted a series of meetings, and issued a request for proposals on June 21, 1996 and received proposals from Linc Housing Corporation and Irvine Apartment Communities and Catellus Residential Properties. These proposals have been evaluated by the Task Team and an affordable housing expert from Keyser Marston. The Task Team has determined, after a thorough evaluation of the proposals and other potential sites for affordable housing, that the proposal from Linc and Irvine Apartment Communities to construct approximately 285 senior affordable units on Newport Village is the most appropriate project worthy of recommendation to the City Council. This proposal will result in a greater number of affordable units with a lower contribution of funds form the City. Representatives of Ford concur in this recommendation. The Affordable Housing Task Team therefore recommends the City Council take the following action: 1. Accept the Affordable Task Team's recommendation to identify the Irvine Company/Irvine Apartment Communities Senior Affordable Housing Project on Newport Village as the affordable housing project recommended for implementation; 2. That the City Council require Ford to contribute to $2.025 million (Ford has agreed in writing to construct only 404 residential units); 3. Direct the Newport Center Economic Opportunities Committee to discuss possible terms and conditions relative to implementation of the Newport Village Affordable Housing Project in the context of the Newport Center Expansion Proposal or as a "stand alone" affordable housing agreement. .19 F:\cat\cri s\me mo\bo b-ccmemo E &000 Z�7, NEWPORT BEACH PUBLIC LIBRARY City of Newport Beach 1000 AVOCADO AVENUE PHONE. 714.717-3800 COMMUNITY SERVICES NEWPORT BEACH, CA 92660.7916 FAX 714.640.5681 April 25, 1997 Mayor and Members of City Council City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92658 Dear Mayor and Members of City Council: The supplemental agenda of Monday, April 28,1997, contains the recommendation of the Ford Land Affordable Housing Task Team of the City of Newport Beach to adopt a plan for an affordable senior housing project (the "Project") on the property immediately north of the Central Library site to San Miguel, between Avocado Avenue and MacArthur Boulevard. Our primary concern in connection with the Project is the accompanying loss of the only remaining solution for present and future inadequate library parking. The Library Board has long been concerned with meeting the parking needs of the library customers; and we believe that we need at least 100 additional parking spaces dedicated to library customer use to adequately serve the Central Library facility. When the Central Library site was selected and the library facility was planned, the vision of shared use of a conunon driveway and parking areas with the future Newport Harbor Art Museum was acceptable because of the similar anticipated uses of the property and typical scheduling of activities which would allow for convenient and easy use of the driveway and parking facilities. The planned use of the property north of the library as a City park filled out the compatible uses of the three sites. No such harmony would exist with the development of the Corona del Mar Plaza, but the prospect of the availability of additional parking to the north of the library remained as an alternative remedy. The conversion of use of the property from a City park to the Project, as proposed by the Task Team, will eliminate the only remaining resource for parking deficiencies, unless conditions of development of the Project require the provision of the additional 100 needed parking spaces. Mayor and Members of City Council Page 2 At the time of approval of the Corona del Mar Plaza in November, 1995, the Board of Library Trustees presented its concerns about that project to you, as a result which certain conditions were adopted. Those concerns were directed primarily at traffic circulation within the project, ingress and egress to the library, and protecting against the loss of library parking places. Recently, The Irvine Company has agreed to meet some of our continuing concerns regarding traffic circulation by agreeing, in addition to the conditions of approval, to add a third exit lane to the jointly shared driveway at the intersection of the driveway and Avocado Avenue as a right turn onto Avocado north. Further, we have received signs of cooperation related to the Project in terms of meeting library parking needs. The Central Library averages 2,000 customers per day, and during the five hours of service on Sunday, an average of 1,750 customers use the library. Because of the high customer demand for parking on Sundays, the Community Room is generally unavailable for use on that day, and use on other days is limited for the same reason. The Coast Highway/MacArthur Retail Center Traffic Analysis (August 1995) indicated the observed occupancy rate at the Central Library was 1.17 library customers per car. Applications of the observed vehicle occupancy rate to the average daily customers (1,709 automobiles for 2,000 customers; 1,495 automobiles for 1,750 customers) competing for the use of the 210 available parking places used by both the staff and the public illustrates the burden which is placed on exiting parking. We request that any approval related to the affordable Senior Housing Project be subject to the conditions requiring the provision of at least 100 additional parking spaces dedicated to library customer use. Board of Libr cc: Kevin Murphy, City Manager Apr. 28. 1997 6:06PM PAONE, CALLAHAN S S — yl) 11) (7 7 No. 5668 P. 2/3 19100 VON KARMAN EIGHTH FLOOR P.O. BOX 19613 IRVINE. CA 9Z623-9613 PHONE: 714-955-2900 FAX: 714-955-9009 WEB SITE: http://www.paone.com WESTLARE VILLAGE OFF/CE. 805-371-5755 April 28, 1997 VIA FACSIMY.LE (714) 644-3139 ROBERT E. CALLAH/uv JAMES R. CAVANAUGH WILLIAM R. DEVINE RICHARD J. FOSTER ROGER A. GRABLE SUSAN K. HORI KENNETH D. JOHNSON ALAN J. KESSEL KENNETH S. KRAMER CARY D. LOWE Ph.D. STEVEN A. McHOLM KATHLEEN CAROTHERS PAONE TIM PAONE G. EMMETT RAITT, JR. CARLA K. RYHAL JOHN F. SIMONIS MARTIN J. STEIN WILLIAM P. TANNER, III DANIEL K. WINTON Bob Burnham City Attorney City- of -Newport Beach P.O. Box 1768 Newport Beach, California 92658-8915 Re: Revised Recommendation of the Affordable Housing Task Team Regarding Development Agreement No. 8 - FordLand Project Dear Bob: This letter confirms that Ford Motor Land Development Corporation and its subsidiary Pacific Bay Homes agree to the proposed changes in the staff recommendation regarding the Affordable Housing Task Team's Report regarding Development Agreement No. 8. The revisions agreed to are those noted on the enclosed document entitled, 22. REPORT FROM THE AFFORDABLE HOUSING TASK TEAM REGARDING DEVELOPMENT AGREEMENT NO. 8. If you have any questions, please feel free to give me a call. Sincerely, Tim Paone Enclosure 042897-1749 1 P90000-0)3 / 66246.1 22. REPORT FROM THE AFFORDABLE HOUSING TASK TEAM REGARDING DEVELOPMENT AGREEMENT NO. 8. 1) Accept the Affordable Task Team's Report 2) Require Ford to contribute $2.020 million pursuant to provisions of the Development Agreement; and 3) Find that: a) Ford's contribution of $2.020 million fully and completely satisfies their affordable housing obligation pursuant to the Development Agreement and the ordinances, plans, resolutions, policies and regulations of the City of Newport Beach; b) acceptance of the Affordable Task Team's Report and/or the acceptance of Ford's affordable housing contribution pursuant to the Development Agreement does not create an obligation on the part of the City Council to grant any discretionary approval necessary to implement any project or use some or all of Ford's affordable housing contribution to implement that project; and c) Ford Motor Land and its subsidiary Pacific Bay homes agree that acceptance of the Affordable Task Team's Report triggers its obligation to contribute $2.020 million pursuant to the Development Agreement and further acknowledges that acceptance of this contribution does not create any obligation on the part of the City Council to implement any project or apply some or all of Ford's contribution to implementation of that project.