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HomeMy WebLinkAbout9/16/2025 Item 6e, Tway, Munoz-Morris, and C. Taylor - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum City of San Luis Obispo Council Agenda Correspondence DATE: September 16, 2025 TO: Mayor and Council FROM: Timmi Tway, Community Development Director Prepared By: Callie Taylor, Senior Planner Gabriel Munoz-Morris, Supervising Civil Engineer VIA: Whitney McDonald, City Manager SUBJECT: Item 6e – APPROVAL OF THE FINAL MAP FOR TRACT 3089 PHASE 5, AVILA RANCH, 175 VENTURE DRIVE (FMAP -0132-2024) - AGENDA CORRESPONDENCE MEMO The following memorandum provides City staff responses to questions received regarding the Avila Ranch Phase 5 Final Map approval. Staff determined it would be helpful to provide this memo to all Council Members and the public . The questions are below with staff’s response shown in italics: 1. What is the current status of the C&C affordable housing project? That project appears to be part of Phase 3 but the condition appears to push it into the final phase (now Phase 4). Can staff clarify the conditions and timeline for the affordable housing project? Lot 186 in Phase 3 of Avila Ranch (165 Cessna Ct.) is the primary affordable and inclusionary housing site for Avila Ranch. The site will be developed with 60 units (R - 4 zoning), including 24 low or very-low-income, 8 low-income, and 8 moderate-income affordable units, plus an additional 19 moderate-income units and 1 manager’s unit provided by a density bonus approved by the Planning Commission in February 2024. Lot 186 was established with the recording of the Avila Ranch Phase 1 Final Map in December 2021, and modified with the recording of the Phase 3 Final Map in March 2025. On December 1, 2022, the Avila Ranch primary developer (TH Avila) dedicated Lot 186 to C&C Development, an affordable housing provider, to construct and manage the R-4 affordable housing site. C&C Development has site control and is actively applying for funding to construct the project. Tax credit applications were submitted to the State by C&C Development in 2024 and 2025, but the project has not yet been awarded funding. C&C Development continues to apply for funding opportunities with assistance from the City. Item 6e – Avila Ranch Phase 5 Final Map Approval - Agenda Correspondence Memo Page 2 The Avila Ranch project did not include specific conditions of approval regarding construction timing for completion of the affordable site. However, the Avila Ranch Development Agreement (DA) did include a statement that the R-4 affordable housing will be completed "early in the Project, rather than leaving them to the end." Exhibit "G" of the Development Agreement provides, "should an affordable housing provider fail to construct the units, the obligation to provide for the 24 deed -restricted low income affordable housing units on the lot remains with Avila Ranch to complete." In order to implement these DA stipulations, a restrictive covenant was included in the Avila Ranch Phase 3 Affordable Housing Agreement (recorded March 2025): • In the event the Affordable Housing Provider elects not to complete the R-4 Affordable Housing Project or fails to do so, the primary market rate developer at Avila Ranch will have the right to step in and take over work necessary to complete the R-4 Affordable Housing Project. • In order to ensure that the Affordable Housing Project is completed earlier in the Project, as opposed to the last phase of the Project, the City reserves the right to withhold the issuance of building permits to TH Avila: o If the Affordable Housing Provider has not Commenced Construction by the issuance of a building permit for TH Avila's 500th unit; and/or, o If the Affordable Housing Provider has not Substantially Completed Construction by the issuance of a building permit for TH Avila's 550th unit. • There are 740 total residential units within Avila Ranch; therefore, building permits will not be issued for the last 240 units until the affordable housing site in Phase 3 is under construction. These types of timing triggers ensure that affordable and inclusionary housing is constructed at the same time as the market rate units, regardless of which phase is constructed first. The timing triggers are not tied to a specific phasing plan, but rather to total unit count. The Phase 3 Affordable Housing Agreement, including the restrictive covenant, was reviewed by City Council on January 23, 2024 in conjunction with approval of the Phase 2/3 Final Map. This restrictive covenant was reiterated in the DA Memorandum of Agreement regarding Phases 4 & 5, which is attached to the current Phase 5 Final Map approval agenda report. . In addition to the 59 low and moderate -income for-rent affordable units on Lot 186 to be developed by C&C Development, Avila Ranch includes an additional 27 for -sale moderate-income affordable units and 25 workforce housing incentive program units, which are being developed in other areas throughout the project. To date, a ll Phase 1 affordable units are complete and occupied, including 6 moderate -income for-sale homes and 8 workforce housing units, as required by the Development Agreement. Item 6e – Avila Ranch Phase 5 Final Map Approval - Agenda Correspondence Memo Page 3 2. We are concerned about flooding near the Avila Ranch project site. They recently installed a storm drain right next to Buckley with a small catchment basin before the water enters the creek next to Buckley. Buckley has a history of flooding at this location. The Avila Ranch project had an overall drainage study prepared during initial project approvals. The project site was required to mitigate impacts of development through the construction of stormwater facilities and basins. This ensures that the project do es not negatively impact drainage conditions in the southern portion of the City near the confluence of San Luis Creek and East Fork. County and City staff work closely to manage this area of the San Luis Creek watershed through Zone 9 to ensure that development complies with the requirements of the Waterway Management Plan. The Avila Ranch site accomplishes peak management for larger storm events through the stormwater basin located in Park A, near the intersection of Vachell and Buckley. Currently, the developer is working on initial improvements in the Phase 5 area. The comment appears to reference the construction of additional stormwater basins that are required for water quality regulations in the Phase 5 area. The current construction of these basins is per the approved improvement plans and is being inspected by the City. 3. I am concerned that the developer has put off the improvement of Buckley in front of the development. They were supposed to put in bike lanes on the south side of Buckley. The widening of Buckley, from Tank Farm creek to the eastern project limit, was a condition of approval for the Avila Ranch project. Originally, the condition required the widening of Buckley Road with Phase 4 as Phase 4 was originally intended to be constructed prior to Phase 5. Due to the developer’s request to modify the phasing of the project and construct Phase 5 before Phase 4, City staff modified the timing trigger for the Buckley Road widening to require it with Phase 4 or Phase 5, whichever comes first. In addition, the Avila Ranch project was conditioned to construct new bike bridges on the north and south side of Buckley Road during Phase 2. The bridge on the north side of Buckley is still required to be constructed during Phase 2, which is under construction now. When the Phase 2-3 Final Map was approved, the timing of the southern bicycle bridge was deferred to Phase 4 to be constructed concurrent with the Buckley widening (originally envisioned for Phase 4). The southern bicycle bridge will now be required to be constructed with Phase 4 or Phase 5, whichever comes first. This will ensure that the southern bridge is constructed at the same time as the Buckley widening, which is also now required prior to Phase 4 or Phase 5, whichever comes first. The developer is currently negotiating the needed right -of-way for the construction of the southern bicycle bridge with the adjacent property owners.