HomeMy WebLinkAbout08-18-2015 Item 09 Inclusionary Housing Exemption
Meeting Date: 8/18/2015
FROM: Derek Johnson, Director of Community Development
Darryl Grigsby, Director of Public Works
Prepared By: Tyler Corey, Housing Programs Manager
Tim Bochum, Deputy Director of Public Works
SUBJECT: INCLUSIONARY HOUSING EXCLUSION AND CITYWIDE
TRANSPORTATION IMPACT FEE CREDIT FOR THE PROPOSED
HOMELESS SERVICES CENTER
RECOMMENDATION
Adopt a resolution entitled “A Resolution of the City Council of the City of San Luis Obispo,
California, approving an Inclusionary Housing exemption and Citywide Transportation Impact
Fee credit for the proposed Homeless Service Center.”
DISCUSSION
Background
In 2009, as a result of the San Luis Obispo Countywide 10-Year Plan to End Homelessness and
the deteriorating conditions of the existing Maxine Lewis Memorial Shelter and the Prado Day
Center a determination was made by CAPSLO to replace those facilities with a consolidated
Homeless Services Center (HSC). In May 2014, CAPSLO acquired a portion of 40 Prado Road
for development of the new HSC and the project has received all necessary land use entitlements.
Issuance of a building permit for project construction is anticipated by the end of August.
Addressing homelessness was one of the City’s 2013-15 Major City Goals and included a work
program item to financially support the new HSC, where feasible. The City has allocated
$375,000 in combined General Fund and Community Development Block Grant funds towards
project design and construction. The HSC project was carried forward into the 2015-17 Housing
Major City Goal, which includes several work program items to facilitate the permitting and
development of the facility.
On July 22, 2015, CAPSLO submitted a letter requesting City Council consideration of an
Inclusionary Housing requirement exclusion and Transportation Impact Fee (TIF) credit for the
project (Attachment 1). The timing of this request is important since development fees must be
paid prior to the issuance of a building permit.
Inclusionary Housing Requirement Exclusion
Chapter 17.91 of the Zoning Regulations (Inclusionary Housing Requirements) promotes the
public welfare by increasing the production and availability of affordable housing units, and
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establishes an inclusionary housing requirement which implements General Plan policies guiding
land use and housing development. Development projects consisting of five or more lots or new
dwelling units, or commercial development projects consisting of 2,500 square feet of gross floor
area or larger are required to provide or contribute fees to produce affordable housing.
Chapter 17.91.030.B contains a list of exclusions to the inclusionary housing requirements
(Attachment 2), including number eight which states, “Development projects which the City
Council determines are essentially noncommercial or nonresidential in nature, which provide
educational, social or related services to the community and which are proposed by public
agencies, nonprofit agencies, foundations and other similar organizations;”
The proposed HSC meets the requirements of this exclusion for the following reasons:
1. The project is not considered commercial or residential from a land use or zoning
perspective. The project is a homeless services center providing temporary emergency
shelter and associated supportive services and programs to assist those experiencing
homelessness with self-sufficiency and transition to permanent housing.
2. The project will provide a variety of educational and social programs for those in need in
the community including job training, provider services and case management.
3. CAPSLO is a registered 501(c)3 nonprofit agency that will serve as the project developer
and facility operations manager.
Citywide Transportation Impact Fee Credit
The project is subject to payment of the Citywide TIF for new development. Based upon the
current TIF rates and the assumed 110 beds to be built at the center, the Citywide TIF required
for the project would be $72,300.
The project will be dedicating approximately 38,768 sq. ft. of right of way for the future
relocation of Elks Lane to be used as part of the Prado Road/US 101 Interchange project. Some
improvements along this relocated street are required as part of the development project to
provide access to the HSC.
A full interchange funding program (similar to the LOVR Interchange sub-area) has yet to be
established by the City for the Prado Road Interchange project. However, the Citywide TIF
program does include partial funding ($6.587 million) for the interchange project. Dedication of
Elks Lane relocation right of way (ROW) will reduce the total cost of the project since the City
will not be required to acquire that property in the future. This helps to keep the overall project
cost down and minimize fees for others.
The total purchase price for the property acquired by the RTA/CAPSLO purchase was
$2,250,000 for approximately 437,120 sq. ft. of property. This results in an approximate value of
$5.15/sq. ft. Utilizing the $5.15 value and the area to be dedicated (38,768 sq. ft.) results in an
approximate value of the land to be dedicated for Elks Lane relocation to be $199,650.
$5.15/Sq. Ft. X 38,768 = $199,650
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Not all of this can be taken as full credit since part of this ROW would have been necessary in
order to provide future access to the property when the interchange is built. However, this
amount is greater than the Citywide TIF ($72,300) calculated for the project, which represents
about 36% of the total value of the ROW. Therefore staff is recommending that the project
receive a full credit offset for their TIF fees due to dedication of the ROW. In addition, the
project is dedicating additional ROW for the eventual widening of Prado Road when the
interchange is built. This right of way has always been assumed to be dedicated (not eligible for
crediting) but it reflects a true cost for the project that will benefit the City and community.
Prado Road Interchange Funding (Sub Area Fee)
As discussed before, the City has yet to establish a full funding program for the Prado Road
Interchange project. The subject property that the HSC is occupying is part of a larger group of
parcels that have been discussed as needing to participate in a contribution fee area due to its
close proximity to the interchange location.
As part of the Architectural Review approval for the project the City established condition of
approval #16 which states:
16. Prior to commencement of construction the project shall either:
a. Pay a fair share participation of the Prado Road Interchange/Overpass project to
the satisfaction of the Director of Public Works; or
b. Enter into an agreement with the City to pay a future fair share amount or
participate in other public financing program toward the Prado Road
Interchange/Overpass as adopted by the Council.
Since the City has yet to establish a full funding program for the Prado Road interchange, the
project will still need to satisfy Condition of Approval #16 and enter into an agreement to
participate in a future funding program for the Prado Road Interchange, if one is established.
FISCAL IMPACT
The project qualifies for an Inclusionary Housing exclusion and Citywide TIF credit. The project
will have no impact on the General Fund.
ALTERNATIVES
1. Do not approve an Inclusionary Housing exclusion or TIF credit for the project. This
action is not recommended because the project appears to meet the requisite criteria.
2. Continue consideration of the request. The City Council can direct staff to return with
additional information regarding the proposed Inclusionary Housing exclusion and TIF
credit so that a final decision can be made. Staff does not recommend this action because
any delay in action would subsequently delay the issuance of the building permit for
project construction, potentially jeopardizing the project’s state grant funding.
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Attachments:
1 - Letter from CAPSLO
2 - Chapter 17.91.030 Excerpt
3 - Draft Resolution
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Ojj:ii~:t
PARTNERSHIP
of SANLUISOBISPOCOUNTY,INC.
1030Southwood Drive
San LuisObispo
California93401
•
(805)544-4355
FAX(805)549-8388
www.eocslo.org
formerlyknown asEconomicOpportunityCommission ofSanluisObispoCounty,Inc.
July22,2015
CityofSanLuisObispo
Attn:MayorandCityCouncil
990PalmStreet
SanLuisObispo,CA93401
HonorableMayorMarxandCityCouncilMembers:
TheHomelessServicesCenter(HSC)applicationat40PradoRoadcontinuestomakepositiveprogress.Weare
currentlyfinalizingallthenecessaryplancheckrequirementstoobtainourbuildingpermit.Aspartofthereview
ofitemstocompleteduringthisprocess,wehaveworkedcloselywithCitystaffonthepotentialfeesinvolved
withthepermit.
Asaresult,weareformallyandrespectfullyrequestingtheCityconsiderthefollowingtwoitemsasitpertainsto
theconstructionofthenewcenter:
1)TheHSCbegrantedanexclusionfromtheCity'sinclusionaryHousingOrdinance(Chapter17.91).
Section17.91.030B.8oftheCity'sInclusionaryHousingOrdinanceprovidesanexclusionfor:
"Developmentprojectswhichthecitycouncildeterminesareessentiallynoncommercialornonresidential
innature,whichprovideeducational,socialor relatedservicestothecommunityandwhichareproposed
bypublicagencies,nonprofitagenciesorfoundationsandothersimilarorganizations."
WebelievetheHSCmeetsthisexclusionforInclusionaryHousingfeesbasedonthefollowing:
TheHSCisneithercommercialnorresidentialinnature.TheHSCwillonlyallowforemergency
transitionalshelterforthoseinneed.
TheHSCwillprovideavarietyofeducationalandsocialprogramstothoseinneedinourcommunity
includingjobtraining,assistancetoobtaincollaborativeproviderservicesandopportunitiestoreceive
individualizedcasemanagedplanswithafocusonpermanentsupportivehousingduringtheir
transition.
CommunityActionPartnershipisaregistered501(c)3nonprofitagencyandwillserveasboththe
entityconstructingandmanagingtheprojectaswellastheresponsiblepartyforitson-going
maintenanceandoperations.
•AdultDayServices •ChildCareResourceConnection •EmergencyServices •EnergyConservation •FamilySupportServices.
•HeadStartPrograms •HealthServices •HomelessServices.Martha'sPlace •State ChildDevelopmentPrograms •WeatherizationServices •
SANLUISOBISPOCOUNTY
,.1)COMMUNITY
yeFOUNDATION •TurnillgRwiofl;1110Acrion Unitedway
DevelopingPositiveAssetsinourYouth,FamiliesandCommunity Packet Pg. 89
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July22,2015
CityofSanLuisObispo
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2)TheHSCbegivenafullcredittowardstheCitywideTransportationImpactFees(TIF).
TheHSCprojecthasagreedtoadedicationoftherightofwayrequiredforthefutureElksLanerealignment.This
dedicationwillalsobeusedaspartofthefuturePradoRoad/US101Interchangeproject.Basedonanalysisby
Citystaff,weagreethattherightofwaydedicationvaluationissignificantandexceedstherequiredCityTIFfees
forthisproject,andthereforerespectfullyrequestthatallTIFfeesbewaived.Insummary,waiverofthesefees
will significantlyreducethecostofournewfacility,acceleratetheexpectedcompletionandultimatelyprovidefor
morefundstobeavailableforourprimarymissionofprovidingservicestothemarginalizedandhomeless
populationofourcommunity.
Ourgoalistocompletetheprojectin2016.WethanktheCityfortheircontinuedsupportofthisprojectandlook
forwardtoworkingtogethertomakethenewcenterasuccessfulandvitalassetservingourcommunity.
Sincerely,
~~t!~'C~EO
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17.91.030 Applicability and exclusions.
A. This chapter shall apply to development projects consisting of five or more lots or new dwelling units,
and to commercial development projects consisting of two thousand five hundred square feet of gross
floor area or larger.
B. The following types of development projects are excluded:
1. Residential developments of four units or less;
2. New commercial developments of less than two thousand five hundred square feet gross floor
area;
3. Residential and commercial building additions, repairs or remodels; provided, that such work
does not increase the number of existing dwellings by four or more units, or result in an increase
in gross floor area of two thousand five hundred square feet;
4. The conversion of less than five dwelling units to condominiums within any five-year period;
5. Commercial condominium conversions which do not result in the creation of new dwellings;
6. Affordable housing projects;
7. Emergency projects, or projects which the city council determines are necessary to protect public
health and safety;
8. Development projects which the city council determines are essentially noncommercial or
nonresidential in nature, which provide educational, social or related services to the
community and which are proposed by public agencies, nonprofit agencies, foundations
and other similar organizations;
9. Projects which replace or restore a structure damaged or destroyed by fire, flood, earthquake or
other disaster within three years prior to the application for the new structure(s);
10. Projects for which an approved tentative map or vesting tentative map exists, or for which a
construction permit was issued prior to the effective date of the ordinance codified in this chapter
and which continue to have unexpired permits. (Ord. 1458 § 3 (part), 2004: Ord. 1348 § 2 (part),
1999)
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R ______
RESOLUTION NO. _____ (2015 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO APPROVING AN INCLUSIONARY HOUSING EXCLUSION
AND CITYWIDE TRANSPORTATION IMPACT FEE CREDIT FOR THE
PROPOSED HOMELESS SERVICES CENTER
WHEREAS, on August 18, 2015 the City Council of the City of San Luis Obispo
considered a request by Community Action Partnership of San Luis Obispo County, Inc.
(CAPSLO) for an Inclusionary Housing exclusion and Citywide Transportation Impact Fee (TIF)
credit for the proposed Homeless Services Center (HSC) at 40 Prado Road; and
WHEREAS, the City Council has duly considered all evidence, including the testimony
of the applicant, interested parties, and the evaluation and recommendations by staff presented at
said meeting.
BE IT RESOLVED, by the City Council of the City of San Luis Obispo as follows:
Section 1. Environmental Determination. The project is exempt from environmental
review per CEQA Guidelines under the General Rule (Section 15061(b)(3)). It can be seen with
certainty that the proposed action to approve an Inclusionary Housing exclusion and TIF credit
for the proposed HSC will have no significant effect on the environment.
Section 2. Findings. Based upon all the evidence, the City Council makes the following
findings:
1. The project is not considered commercial or residential from a land use or zoning
perspective. The project is a homeless services center providing temporary emergency
shelter and associated supportive services and programs to assist those experiencing
homelessness with self-sufficiency and transition to permanent housing.
2. The project will provide a variety of educational and social programs for those in need in
the community including job training, provider services and case management.
3. CAPSLO is a registered 501(c)3 nonprofit corporation that will serve as the project
developer and facility operations manager.
4. The proposed HSC will further the San Luis Obispo Countywide 10-Year Plan to End
Homelessness, Housing Element policies and programs and the City’s 2015-17 Financial
Plan Major City Goal: “Housing”.
5. The amount of land to be dedicated to the City as a part of the Elk’s Lane relocation for
the Prado Road Interchange project is greater than the Citywide TIF ($72,300) calculated
for the project.
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Resolution No. _____ (2015 Series) Page 2
Section 3. Action. The City Council does hereby approve an Inclusionary Housing
exclusion and Citywide TIF credit in the amount of $72,300 for the proposed HSC at 40 Prado
Road.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 20xx.
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Anthony Mejia
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Anthony J. Mejia
City Clerk
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