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HomeMy WebLinkAbout07/26/2005, PH3 - RESOLUTION APPROVING A CONDOMINIUM CONVERSION FOR 1017-1043 SOUTHWOOD DRIVE (PARKWOOD VILLAGE, CON council j acEnaa Report '-N CITY OF SAN LUIS OBISPO FROM: John Mandeville, Community Development Director Jonathan Lowell, City Attorney it— SUBJECT- — SUB_ JECT: RESOLUTION APPROVING A CONDOMINIUM CONVERSION FOR 1017 — 1043 SOUTHWOOD DRIVE(PARKWOOD VILLAGE, CON 29-05) CAO RECOMMENDATION Adopt the attached modified resolution which will approve a condominium conversion of all 168 apartment units at Southwood Drive and supersede Council's approval of Resolution No. 9712 on July 19, 2005. DISCUSSION At its July 19, 2005 meeting Council approved Resolution No. 9712 approving a condominium conversion of 168 apartment units at Southwood Drive, with the understanding that final wording of the resolution would be determined by the City Attorney and staff. Modification of the wording was contemplated because the Council relied upon the inclusion of recently constructed student housing at Cal Poly in determining "one-half of the number of multi-family rental dwellings units added to the city's housing stock in the preceding year." Staff and Council were under the impression that the new units at Cal Poly were completed in 2004, but wanted to confirm it. Approval of all 168 units was important to the Council because the property owner agreed to deed 34 units in fee to the Housing Authority of San Luis Obispo if conversion of the entire complex was authorized. In preparing the final resolution, staff learned that the new Cerro Vista complex at Cal Poly actually opened just in time for the 2003-2004 school year. Hence, while it does not meet the letter of the law in calculating units given a final building inspection and occupancy permit in the preceding year, it still meets the spirit of the law. In light of this new information, staff has modified the resolution to include the following findings which make clear the Council's basis for allowing this special exception: The proposed conversion,is consistent with the annual limits for the conversion of apartments to condominiums since half the number of multi-family units added to the City's housing stock in 2004 is greater than the proposed number of conversions. In making this determination, the Council is counting the recently constructed 200 unit Cerro Vista Student Housing Complex at Cal Poly as multi-family units added to the City's housing stock in the preceding year. The Council specifically finds such a calculation appropriate since: 1. Cerro Vista opened in the 2003-04 academic year; — I Condominium Conversion-Parkwood Village Page 2 2. Cerro Vista, although located on the Cal Poly campus and immediately adjacent to the City limits, was for the first time included as part of the City's Housing stock under the City's General Plan Housing Element adopted in March 2004 and approved by the California Department of Housing and Community Development (HCD) in December 2004; 3. Cerro Vista provided housing for university students who otherwise in 2004 would have resided in other locations within the City 4. by counting Cerro Vista as part of the 2004 calculation, the Council is able to accept the offer from the property owner to the Housing Authority of 34 units in fee for use by low income families, where such offer was specifically conditioned upon approval of the conversion of 168 units, and which is possible if Cerro Vista is counted in determining one-half the number of multi-family units added to the City's housing stock in 2004; 5. by approving the conversion of all 168 units and accepting the offer of 34 low income units in fee, the City is increasing the number of affordable housing units in the community, achieving an important General Plan goal, and complying with housing goals set out by HCD; 6. the inclusion of Cerro Vista in the 2004 multi-family units calculation is not intended to set a precedent for future calculations for purposes of implementing the City's condominium conversion regulations, but rather is being done to further the public health, safety and welfare and to accept a unique, one-time offer with great benefit to the citizens of.this community. Staff believes the above findings provide a sound, defensible foundation for exception of the Parkwood Village application from strict adherence to the conversion regulations originally adopted by the City Council. CONCURRENCES As noted in the Council Agenda Report of July 19, 2005, this conversion request has been reviewed by Public Works, Utilities and Fire, and no significant concerns were noted. Parkwood Village was originally constructed with separate utilities for each unit. Project conditions of approval will require Building Code and other upgrades to meet City standards. FISCAL IMPACT When the General Plan was prepared, it was accompanied by a fiscal impact analysis; which found that overall the General Plan was fiscally balanced. Conversion of multi-family rental properties to individual "for sale" units is not likely to create fiscal impacts. ALTERNATIVES 1. The Council could approve only a portion of the units for conversion (up to 110), thereby not needing to include the Cerro Vista units as part of the City's housing stock, and not take advantage of the offer of 34 low income housing units to be deeded to the Housing Authority. 3 -4=1� Condominium Conversion Parkwood Village,_ Page 3 2. The Council could direct staff to modify the existing condo conversion regulations to allow for unused condo conversion credits from prior years to be used or to provide for some other method of adding flexibility to the existing rules. ATTACHMENT Draft resolution G:\Agenda-Ordinances-Resol\Condo Conversion Council Agenda Report.DOC 3-3 ATTACHMENT i RESOLUTION NO. A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING A CONDOMINIUM CONVERSION FOR 168 APARTMENTS AT 1017 THROUGH 1043 SOUTHWOOD DRIVE, APPLICATION NO. CON 29-05 WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on May 11, 2005 for the purpose of considering Application No. CON 29-05, a request to allow a Condominium Conversion for 168 apartments known as Parkwood Village Apartments at 1017 through 1043 Southwood Drive; and WHEREAS, said public hearing was for the purpose of formulating and forwarding recommendations to the.City Council of the City of San Luis Obispo regarding the project; and WHEREAS, the Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on July 19, 2005 to consider Application No. CON 29-05, a request to allow a Condominium Conversion for 168 apartments known as Parkwood Village Apartments at 1017 through 1043 Southwood Drive; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and WHEREAS, the conversion of existing residential apartments to ownership condominiums is exempt from environmental review (CEQA); and WHEREAS, the Council has duly considered all evidence, including the testimony of the applicant; interested.parties, and the evaluation and recommendations by staff, presented at said hearing. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows.- SECTION 1. Findings. Based upon all the evidence, the Council makes the following findings; 1. The proposed condominium conversion consisting of 168 apartment units is consistent with the General Plan because changing the apartments to condominiums will not impact available affordable housing since the conversion will provide deed restricted affordable units consistent with the City's Inclusionary Housing Ordinance. The existing affordable housing units (Section 8 units) would not be affected by the conversion and would continue to remain affordable as currently contracted. Resolution No. ATTACHMENT 1 Page 2 2. The proposed conversion is consistent with the annual limits for the conversion of apartments to condominiums since half the number of multi-family units added to the City's housing stock in 2004 is greater than the proposed number of conversions. In making this determination; the Council is counting the recently constructed 200 unit Cerro Vista Student Housing Complex at Cal Poly as multi-family units added to the City's housing stock in the preceding year. The Council specifically finds such a calculation appropriate since: a. Cerro Vista opened in the 2003-04 academic year; b. Cerro Vista, although located on the Cal Poly campus and immediately adjacent to the City limits, was for the first time included as part of the City's.Housing stock under the City's General Plan Housing Element adopted in March 2004 and approved by the California Department of Housing and Community Development (HCD) in December 2004; c. Cerro Vista provided housing for university students who otherwise in 2004 would have resided in other locations within the City; d. by counting Cerro Vista as part of the 2004 calculation, the Council is able to accept the offer made by the owner of Parkwood Village to donate to the Housing Authority of San Luis Obispo 34 units in fee for use by low income families, where such offer was specifically conditioned upon approval of the conversion of 168 units, which is possible if Cerro Vista is counted in determining one-half the number of multi-family units added to the City's housing stock in 2004; e. by approving the conversion of all 168 units and accepting the offer of 34 low income units in fee, the City is increasing the number of affordable housing units in the community, achieving an important General Plan goal, and complying with housing goals set out by HCD; f. the inclusion of Cerro Vista in the 2004 multi-family units calculation is not intended to set a precedent for future calculations for purposes of implementing the City's condominium conversion regulations, but rather is being done to further the public health, safety and welfare and to accept a unique, one-time offer with great and lasting benefits to the citizens of this community. 3. As conditioned, the conversion will substantially comply with the property improvement standards for Condominium Conversions with the exception of private open space yards. 4. As stated in the applicant's property condition report, the property is in satisfactory condition and a report of any known defects will be made available to future property owners and kept on file at the City. 5. Based on a staff review of the application materials, a visit to the site and a review of City records, the property is in substantial compliance with the Zoning Code in terms of allowed.use, density, parking, yard areas, building height, and all other applicable property development standards. 6. In accordance with the Condominium conversion standards the applicant has appropriately delivered a notice of intent to convert to each tenant. _S Resolution No. ATTACHMENT 1 Page 3 7. The existing apartments, due to location, design, condition, and general conformance with property development standards are appropriate for conversion to individual ownership units and will result in a satisfactory living,environment for future property owners.. S. In accordance with the CEQA Guidelines Section 15301 (K) the conversion of multiple family residences into condominiums is categorically exempt from environmental review. SECTION 2. The Council hereby approves the conversion of 168 apartment units for application No. CON 29-05, at 1017 through 1043 Southwood Drive to individual ownership condominiums in accordance with Municipal Code 17.82, subject to the following conditions: 1. The applicant shall apply for a tentative parcel map as defined by the Subdivision Map Act and in accordance with the City's Subdivision Regulations and Municipal Code Chapter 17.82 (Condominium Conversions). The tentative parcel map shall be subject to (but not limited to) the following conditions of approval: g. If not already existing, each unit shall be supplied with individual meters for gas, water and electrical service. Location and type of metering shall be subject to review and approval of the City. h. A complete property condition report shall be made available to the City along with the application for a tentative map. Any building defects noted in the property condition report submitted to the.City shall be repaired prior to approval of the final condominium map. L Any improvements necessary to comply with the property improvement standards for condominium conversions (Chapter 17.82.110 A through O) shall be completed prior to approval of the final condominium map. Such improvements include (but may not be limited to): private open space yards, bicycle storage lockers, retrofitting units with additional energy compliance requirements such as increased insulation, restoration and refurbishing of landscape areas, installation of common area improvements,installation of smoke detectors and fire protection systems, or repair and upgrades of parking areas. These improvements may be subject to separate applications for architectural review and a building permit.. j. Conditions, Covenants and Restrictions (C.C.&R.$) are required, to the approval of the Community Development Director and the Public Works Director. The C.C.&R.s shall include a description and regulations pertaining to the open space easement and all common areas. k. If pertinent, the tentative map shall reflect the location of.all any overhead and underground utilities. 1. The subdivider shall submit a final map to the city for review, approval, and recordation. The map shall be prepared by, or under the supervision of a registered civil engineer or licensed land surveyor: The final map shall be prepared in accordance with the Subdivision Map Act and the Subdivision Regulations. J' � Resolution No. ATTACHMENT 1 Page 4 m. Pursuant to Government Code Section 66474.9(b)(1), the subdivider shall defend, indemnify and hold harmless the city or its agents, officers and employees from any claim, action, or proceeding 1.against the city or it agents, officers or employees to attack, set aside, void or annul an approval of the city, advisory agency, appeal board or legislative body concerning this subdivision: The city shall promptly notify the subdivider of any claim, action or proceeding and shall cooperate fully in the defense. 2. Each non-purchasing tenant not in default under the provisions of the rental agreement or lease shall have the right to remain not less than 300 days from the written notice of intent to convert. The 300 days shall commence no sooner than July 19, 2005. 3. After submittal of the tentative map, prospective tenants shall be given a written notice of intent to convert prior to leasing or renting any unit. 4. Applicant shall give any present tenant a non-transferable right of first refusal to purchase the unit occupied. This right of fust refusal shall extend at least ninety days from the date of issuance of the subdivision public report or commencement of sales, whichever date is later: The tenants' security deposit and last months rent shall' be credited towards;the purchase of the property. 5. The parking lot areas shall be reconstructed to repair damaged surfacing as necessary prior to recordation of final map. 6. All exterior finishes, roofing, paint and exposed wood materials shall be repaired or refinished as necessary in order to bring the buildings up to a satisfactory and above average condition. 7. The existing 34 units presently under contract with the Housing Authority of the City as section 8 housing shall be deeded to the Housing Authority.The units shall be deed restricted as affordable to very low income groups for 30 years, consistent with the City of San Luis Obispo Affordable Housing Standards at time of transfer to the Housing Authority. SECTION 3. This resolution supersedes and replaces Resolution.No. 9712 adopted by this Council on July 19, 2005. On motion of _ , seconded by , and on the following roll call voter AYES: NOES: ABSENT: 3-�l Resolution No. ATTACHIWEWT 1 Page 5 the foregoing resolution was passed and adopted this day of July, 2005. Mayor David.F. Romero ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: Jonathan Lowell, City Attorney G:Wgenda-Ordinances-Resol\Condo Conv Reso.DOC