HomeMy WebLinkAbout12/04/2001, C3 - MISSION COLLEGE PREPARATORY INCLUSIONARY HOUSING REQUIREMENT DETERMINATION I
\ Council 14eu,Dr
C I T Y O F SAN LU I S O B I S P O
FROM: John Mandeville, Community Dev to2 ent Directo?"
Prepared By: John Shoals, Associate Planner 11
SUBJECT: MISSION COLLEGE PREPARATORY INCLUSIONARY HOUSING
REQUIREMENT DETERMINATION
CAO RECOMMENDATION
I. Determine that the school project is excluded from the inclusionary housing
requirement.
2. Confirm the types of organizations that would qualify for exemption from the
inclusionary housing requirement.
DISCUSSION
Situation
The Catholic Church of San Luis Obispo is expanding the existing Mission College Preparatory
High School to add classrooms, offices, a new gymnasium and covered parking. The
Architectural Review Commission approved the project plans in October 1998. With the
architectural plans approved, the Church has applied for a building permit to construct the school
project. Before the building permit can be issued, all applicable fees must be submitted to the
City.
School representatives have addressed most of the fees, but need clarification on the inclusionary
housing requirement for schools. Adopted in March of 1999, the inclusionary housing
requirement exempts community-serving projects proposed by public agencies, non-profit
agencies or other similar organizations, and calls for Council to determine eligibility for this
exemption on a case-by-case basis. The Council is being asked to take two actions. The first is
to confirm that the school project is exempt from the inclusionary housing requirement. The
second action is to confirm the types of organizations that would typically qualify for exclusion
from the affordable housing requirement and authorize the Community Development Director to
determine projects are exempt based on Council direction..
Exclusion for Mission College Preparatory High School Project
Section 17.91.030 of the Municipal Code lists the types of development projects that are
excluded from the inclusionary housing requirements. In general, those developments include
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Council Agenda Report `,..rssion College Preparatory Expansion''�1
Inclusionary Housing Requirement Determination
Page 2
small residential and commercial projects, small condominium conversions, affordable housing
projects. emergency projects, approved tentative and vesting subdivision maps and community-
serving projects. Section 17.91.030B.8 reads:
-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, non-profit
agencies and other similar organizations. "
According to City records, this exclusion was included by the Inclusionary Housing Task Force
to address this type of situation. The task force felt that the inclusionary housing requirement
should apply to large commercial or residential projects that create jobs and a need for housing,
but not to projects developed by community-serving organizations. The task force also did not
believe that the housing requirement should impose additional financial burden on organizations
providing an educational, social or related service to the community. Based on this information,
staff is recommending that the Council confirm that this school project is exempt from the
inclusionary housing requirement.
Tvpe of Organizations Excluded
In the past, staff has received exclusion inquiries from other non-profit agencies, but no formal
written requests have been submitted. Staff anticipates that there will be similar written requests
in the future. In order to eliminate the need to return to Council for each individual request, the
Council is being asked to list or confirm the types of organizations that would qualify for
exemption from the inclusionary housing requirement to allow the Community Development
Director to routinely make that determination. Organizations that staff believes should typically
qualify are:
• Schools
• Churches
• Non-profit Social Service Providers
• Charitable organizations
• Daycare centers
• Youth Groups
• Non-profit Cultural Organizations
FISCAL IMPACTS
Excluding the school project from the inclusionary housing requirement would not have a direct
impact on the general fund. However, it would have an impact on the affording housing fund.
City building records estimates that the project's affordable housing fee at $100,000 based on
building valuation.
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Council Agenda Report—",,.ission College Preparatory Expansion
Inclusionary Housing Requirement Determination
Page 3
ALTERNATIVES
1. Determine that the school project does not qualify for exclusion from the inclusionary
housing requirement. If the school expansion project is determined to subject to the
inclusionary housing fee, it is expected that the requirement would be met by paying an in-
lieu fee.
2. Continue the item with direction to staff and the applicant.
ATTACHMENTS
1. Letter from Studio Design Group dated October 10, 2001
2. Inclusionary Housing Requirement
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October 10, 2001 COMMUNITY DEVELOP
John Mandeville
Community Development Director
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
RE: Mission Preparatory Expansion
990 Palm Street, SLO
Dear Mr. Mandeville,
In August of this year, our firm submitted final construction plans for the above
referenced to the City. In anticipation of receiving a building permit in the near
future, we would like to confirm that this project is exempt from the 2%
Affordable Housing fee imposed on commercial projects. With reference to
Ordinance 1348, Section 17.91 .030 b (8), it is our understanding that school
projects are exempt from the Affordable Housing fee. Our present building
application will expire on January 10, 2001 . We would appreciate your
confirmation of our understanding.
Thank you for your assistance.
Sincerely, �An
Brian W. Starr
President
cc: John Fowler
S t u d i o D e s i g n G r o u p A r c h i t e c t s I n c
6 4 1 H i g u e r a S t r e e t S u i t e 3 0 3 • S a n L u i s O b i s p o C A • 9 3 4 0 1
805 . 541 . 3848 • FAX 805 . 541 . 9260 • s d g 0 s d g a r c h i t e c l s . C o m - Brian 5 t a r r C 15175
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Chapter 17.91
INCLUSIONARY HOUSING REQUIREMENT Attachment 2
Sections:
17.91.000 Title.
17.91.010 Purpose.
17.91.020 Definitions.
17.91.030 Applicability and exclusions:
17.91.040 General standards.
17.91.050 Procedures.
17.91.060 In-lieu housing fee.
17.91.070 Affordable housing fund established.
17.91.080 Real property dedication.
17.91.090 Incentives.
17.91.100 Project application.
17.91.110 Conditions of development approval.
17.91.120 Program requirements.
17.91.130 Eligibility screening.
17.91.140 Affordability restrictions.
17.91.150 Shared equity purchase program.
17.91.151 Early resale of shared equity properties.
17.91.160 Management and monitoring.
17.91.170 Enforcement and appeals.
17.91.180 Severability.
17.91.000 Title.
The provisions of this chapter shall be known collectively as the inclusionary housing requirement of
the city of San Luis Obispo. (Ord. 1348 § 2 (part), 1999)
17.91.010 Purpose.
The purpose and intent of this chapter is to promote the public welfare by increasing the production
and availability of affordable housing units, and to establish an inclusionary housing requirement which
implements general plan policies guiding land use and housing development. (Ord. 1348 § 2 (part), 1999)
17.91.020 Definitions.
For the purposes of this chapter, the following words and phrases shall have the meaning set forth
below:
A. "Affordable" means housing which can be purchased or rented by a household with very-low, low,
or moderate income, as described in the city's affordable housing standards(Chapter 17.20 of this code).
B. "Affordable housing agreement" shall mean a written agreement between the developer, city and
possibly additional parties which specifies the terms and conditions under which affordable housing
requirements are to be met.
C. "Affordable housing fund" means a fund established and administered by the city, containing
in-lieu fees and other funds held and used exclusively to increase and improve the supply of affordable
housing.
D. "Affordable housing project" shall.mean a development project in which one hundred percent of
the dwellings to be built will be sold or rented in conformance with the city's affordable housing
standards.
E. "Building valuation" shall mean the total value of all construction work for which a construction
permit is required, as determined by the chief building official using the Uniform Building Code.
F. "Commercial project" means a development project involving primarily nonresidential uses,
including retail, office, service-commercial, light-industrial, neighborhood-commercial,
tourist-commercial, and manufacturing uses as further described in the zoning regulations.
G. "Density" means residential density as defined in Section 17.16.0 10 of this code.
H. "Density bonus" means a density increase of at least twenty-five percent over the maximum density
otherwise allowable under the zoning regulations.
I. "Development project" shall mean an activity for which a subdivision map or construction permit is
required, including new buildings and building additions or remodels as described in Section 17.91.030,
but not including changes in ownership, occupancy, management or use.
J. "Director" means the community development director or his authorized representative.
K. "Equity build-up" shall mean a property's sales price at first resale, less the initial purchase price
and less the city's equity share as described in Section 17.91.150.
L. "Expansion area" means a land area proposed for annexation to the city or annexed after the
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adoption date of the ordir -'-e codified in this chapter. 1__�
Attachment 2
M. "Inclusionary ho, g unit" means.a dwelling which is buil. .der the provisions of this chapter,
and which meets the city's affordable housing standards.
N. "In-lieu fee" means a fee paid to the city as an alternative to the production of inclusionary
housing, to be used in the acquisition, construction,or rehabilitation of affordable housing.
O. "Low" or "lower-income households" shall have the meaning set forth in California Health and
Safety Code Section 50079.5; provided, the income of such persons and families shall not exceed eighty
percent of the median income within the county.
P. "Market value" shall mean the highest price a willing buyer would pay and a willing seller would
accept, both being fully informed and in an open market, as determined by an appraiser or other qualified
professional.
Q. "Moderate income households" shall include those persons and families whose incomes exceed
eighty percent but are less than or equal to one hundred twenty percent of the median income within the
county.
R. "Real property" shall mean land and improvements, if any, including anything permanently affixed
to the land, such as buildings, walls, fences, and paved areas.
S. "Residential project" shall mean development projects which result in the subdivision of land
and/or the construction or conversion of dwellings, including, but not limited to, single-family detached
homes, apartments, condominiums, live/work studios; mobile homes, and group housing.
T. "Very-low income" shall have the meaning set forth in California Health and Safety Code Section
50105; provided, that such income level shall not exceed fifty percent'of median income within the
county. (Ord. 1348 § 2 (part), 1999)
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. 1348 § 2(part), 1999)
17.91.040 General standards.
A. Methods of Meeting Requirements. New development projects shall satisfy the inclusionary
housing requirements, as specified in Table I of the general plan housing element. To meet the
requirements, the developer shall comply with one or more of the following methods:
1. Construct the required number of affordable dwelling units, as specified in Table 1; or
2. Pay an in-lieu fee as described in Table 1; or
3. Dedicate real property for affordable housing; or
4. Use a combination of the above methods, to the approval of the city council.
B. Affordable Housing Standards. Affordable dwelling units constructed must meet city affordable
housing standards, and must be consistent with affordability policies in the general plan housing element.
C. Concurrent Development. The required inclusionary units shall be constructed concurrently with
market rate units unless the developer and the city council agree within an affordable housing agreement
to an alternative development schedule. (Ord. 1348 § 2 (part), 1999)
17.91.050 Procedures.
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Attachment 2
A. Fractional Numbers:. determining the number of dwellings k _ ,are required to be built pursuant
to Table 1, fractional units less than OSO shall be rounded down to the first whole number unit, and
fractional units of 0.50 or greater shall be rounded up to the next higher whole number unit, as calculated
by the director.
B. Timing. The inclusionary housing requirement shall be met prior to issuance of a certificate of
occupancy for the first unit in a building, or the first building in a complex to be constructed or remodeled,
or for subdivisions, prior to final map approval; or prior to building permit issuance, for projects for which
a certificate of occupancy is not issued; or as otherwise agreed to by the city council as part of tentative
map, rezoning, conditional use permit or other development approval.
C. Affordable Housing Agreement. To meet the requirements, the developer may enter into an
agreement with the city, the city's housing authority, nonprofit housing provider, or other qualified
housing provider approved by the city council to construct, refurbish, convert, operate and maintain the
required affordable housing. Such affordable housing agreements shall be to the approval of the director
and shall be in a form approved by the city attorney. (Ord. 1348 § 2 (part), 1999)
17.91.060 In-lieu housing fee.
A. Payment of In-Lieu Fee. Developer may, at his discretion, choose to pay a fee to the city in lieu of
constructing affordable dwellings to meet this requirement.
B. Amount and Method of Payment. The dollar amount and method of payment of the in-lieu fee shall
be as described in Table 1 of the general plan housing element, to the approval of the director.
C. Timing. In-lieu fees shall be paid prior to release of occupancy of the first dwelling within a
residential development; or for residential subdivisions to be built out by others, prior to final subdivision
map approval; or prior to occupancy for new commercial buildings or remodels; or prior to building
permit issuance, for projects for which a certificate of occupancy is not issued; or as otherwise provided by
written agreement between the developer and city, to the approval of the director. (Ord. 1348 § 2 (part),
1999)
17.91.070 Affordable housing fund established.
The city hereby establishes an affordable housing fund. Said fund shall be administered by the finance
director and shall be used exclusively to provide funding for the provision of affordable housing and for
reasonable costs associated with the development of affordable housing, at the discretion of the city
council.
A. In-Lieu Fees. In-lieu fees collected shall be deposited into the affordable housing fund, to the
satisfaction of the director. (Ord. 1348 § 2 (part), 1999)
17.91.080 Real property dedication.
A. Irrevocable Offer To Dedicate Real Property. At the discretion of the city council, an irrevocable
offer to dedicate real property equal or greater in value to the in-lieu fee which would otherwise be
required may be offered to the city, or to a housing provider designated by the city, instead of providing
the required number of affordable dwellings or paying in-lieu fees. In considering an offer to dedicate real
property, the city council must find that the dedication of real property will provide equal or greater public
benefit than constructing affordable units or paying in-lieu fees, based on the following criteria:
1. Valuation of the land and/or improvements to be dedicated relative to other methods of meeting
the requirement;
2. Suitability of the land and/or improvements for housing, including general plan conformity,
size, shape,topography, and location; and
3. Feasibility of developing affordable housing, including general plan consistency, and
availability of infrastructure.
B. Real Property Valuation. The valuation of real property offered in-lieu shall be determined by the
director, based upon an appraisal made by a qualified appraiser mutually agreed to by the developer and
the city. Costs associated with the appraisal, title insurance and transfer, recordation and related costs shall
be borne by the developer.
C. Agreement and Timing. The real property dedication shall be by deed or other instrument
acceptable to the city, and shall be completed by recordation with the recorder of the county of San Luis
Obispo prior to occupancy release of the first residential unit or commercial building in the development;
or prior to building permit issuance, for projects for which a certificate of occupancy is not issued; or as
otherwise provided by written agreement between the developer and the city. (Ord. 1348 § 2 (part), 1999)
17.91.090 Incentives.
A. Eligibility for Incentives. The developer may be eligible to receive or to request development
incentives in return for constructing affordable housing in connection with a development project,
pursuant to the affordable housing incentives (Chapter 17.90 of this code), as part of a city planning
application. Incentives or other forms of financial assistance may be offered by the city to the extent that
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Attachment 2
resources are available v. - this purpose and to the degree that s,`-,incentives or assistance will help
achieve the city's housir, als.
B. Affordable Housing Agreement. Any incentives provided by the city, beyond those incentives to
which a developer may be automatically entitled to under Chapter 17.90 of this code, shall require city
council approval and shall be set out in an affordable housing agreement. The form and content of such
agreement shall be to the approval of the city attorney and the director. Developers are further encouraged
to utilize other local, state or federal assistance, when available, to meet the affordable housing standards:
(Ord. 1348 § 2 (part), 1999)
17.91.100 Project application.
A. Method of Application. An applicant/developer proposing a project for which affordable housing is
required shall submit a statement with the standard planning application, describing the inclusionary
housing proposal. The developer's statement shall include:
1. A brief description of the proposal, including the method chosen to meet the inclusionary
housing requirement; number, type and location of affordable units; term of affordability; preliminary
calculation of in-lieu fees; or offer of land dedication;
2. How the proposal meets general plan policies and inclusionary housing requirements;
3. Plans and other exhibits showing preliminary site layout, grading, building elevations, parking
and other site features, location of affordable dwelling units, and (where applicable) market-rate dwelling
units;
4. Description of incentives requested, including exceptions from development standards, density
bonuses, fee waivers or other incentives; and
5. Other information which the director determines necessary to adequately evaluate the proposal.
B. Director Response. After receiving a complete planning application, including an affordable
housing proposal, the director shall respond to the applicant or developer's affordable housing proposal.
The city response shall identify: (1) affordable housing issues and concerns; (2) incentives which the
director can support when making a recommendation to the decision-making body; and (3) procedures
which will need to be followed to comply with the inclusionary housing requirements. (Ord. 1348 § 2
(part), 1999)
17.91.110 Conditions of development approval.
A. Submittal of an Affordable Housing Agreement. Applicants and developers for development
projects subject to this chapter shall, as a condition of development approval, prepare and submit an
affordable housing agreement for city approval. The draft agreement shall be reviewed by the director and
city attorney for compliance with project approvals, city policies and standards, and applicable codes.
Following approval and signing of the agreement by the parties, the final agreement shall be recorded and
relevant terms and conditions shall be recorded as a deed restriction on those lots or affordable units
subject to affordability requirements. The affordable housing agreement shall be binding to all future
owners and successors in interest.
B. Agreements for Constructing Affordable Units. For development projects meeting their
inclusionary requirement through construction of affordable dwelling units, the affordable housing
agreement shall specify:
1. The number and location of affordable units;
2. The size(square footage), number of bedrooms, and design of the affordable units;
3. Terms of affordability;
4. Schedule for construction of the affordable units;
5. Incentives or other assistance to be provided by the city;
6. Where applicable, the procedures to be used for qualifying tenants or buyers, setting rental/sales
costs, renting or selling units, filling vacancies, and managing the units;and
7. Other terms or conditions requested by city.
C. Agreements for Real Property Dedication. For development projects meeting their inclusionary
housing requirement through real property dedication,the agreement shall specify:
1. The method of conveyance, schedule, and appraised value of the proposed dedication;
2. Calculation of housing in-lieu fees otherwise applicable to the project at the time of recordation;
3. Title report and insurance;
4. Description of location, condition, improvements, and other relevant factors applying to the
property; and
5. Other information required by the city.
D. Payment of In-Lieu Fees. An affordable housing agreement shall not be required for projects which
meet their inclusionary housing requirement through the payment of in-lieu fees. (Ord. 1348 § 2 (part),
1999)
17.91.120 Program requirements.
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Attachment 2
Only households qualit_ g as very low, low or moderate income. esuant to the affordable housing
standards, shall be eligible to rent, purchase or occupy inclusionary units developed or funded in
compliance with this requirement. For sale inclusionary housing units shall be owner-occupied for the
term of the affordable housing agreement. (Ord. 1348 § 2(part), 1999)
17.91.130 Eligibility screening.
The city, its housing authority, or other housing provider designated by the city shall screen
prospective renters or buyers of affordable units. Renters or buyers of affordable units shall enter into an
agreement with the city, its housing authority or other housing provider to comply with the affordable
housing standards. (Ord. 1348 § 2 (part), 9999)
17.91.140 Affordability restrictions.
Developers of affordable units for sale shall specify the type of affordability restriction to be applied.
The developer shall choose to either: (1) participate in a shared equity purchase program, as described in
Section 17.91.150, or (2) to enter into an affordable housing agreement to ensure that affordability is
maintained for a period of not less than thirty years, or as otherwise required by state law. Affordable
rental units shall be subject to a thirty-year term of affordability. (Ord. 1348 § 2 (part), 1999)
17.91.150 Shared equity purchase program.
A. Under this program, the qualified buyer of a designated affordable dwelling unit shall enter into a
shared equity agreement with the city. Said agreement shall be recorded as a second trust deed against the
purchased property, at no interest, securing and stating the city's equity share in the property. The city's
equity share shall be calculated by the director, and shall be the decimal percentage of the property's value
resulting from:
I. The difference between the property's market value and the actual price paid by the
homeowner,divided by the market value; and/or when applicable,
2. The amount of subsidy provided by the city to the homeowner to purchase the property, divided
by the property's market value.
B. Upon sale, the city's equity share shall be repaid to the city from the proceeds of the sale, less the
city's percentage share of title insurance, escrow fees and documentary transfer taxes, at the close of
escrow. (Ord. 1348 § 2 (part), 1999)
17.91.151 Early resale of shared equity properties.
In the event of"early resale", owners of properties subject to the shared equity purchase program shall
either: (1) pay an equity recapture fee to the city as described in the schedule below, in addition to the
city's equity share, or (2) sell the property to another eligible household. "Early resale" shall mean the
sale, lease or transfer of property within five years of the initial close of escrow. If the owner chooses to
pay the equity recapture fee, the recapture fee shall be paid to the city upon resale at close of escrow, based
on the following schedule:
Year %of Equity Build-up Recaptured
0-2 100%
3 75%
4 50%
5 25%
6 and after 0%
The recapture amount shall be determined prior to the calculation of escrow closing costs. (Ord. 1348
§ 2 (part), 1999)
17.91.160 Management and monitoring.
Inclusionary rental units shall be managed and operated by the property owner, or the owner's agent,
for the term of the affordable housing agreement. Sufficient documentation shall be submitted to ensure
compliance with this chapter, to the satisfaction of the director. (Ord. 1348 § 2(part), 1999)
17.91.170 Enforcement and appeals,.
A. Enforcement. No final subdivision map shall be approved, nor building permit issued, nor shall any
other development entitlement be granted for a development project which does not meet these
requirements. No inclusionary unit shall be rented or sold except in accordance with these requirements
and the affordable housing standards.
B. Appeals. The director shall administer and interpret these requirements, subject to applicable codes
and city procedures. Decisions of the director are appealable, subject to the zoning regulations appeal
provisions. (Chapter 17.66 of this code). (Ord. 1348 § 2 (part), 1999)
17.91.180 Severability.
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If any provision of this chapter or the application thereof to. --y person or circumstances is held
invalid, the remainder c chapter and the application of the p: 'ion to other persons or situations
shall not be affected theft„y. (Ord. 1348 § 2 (part), 1999)
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MEETING AGENDA
DATE la-` -o I ITEM # L' 3
RRM DESIGN GROUP
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November 30, 2001
COUNCIL CDD DIR
C!rCAO ❑ FIN DIR
Ers4CAO ❑ FIRE CHIEF
Eff ATTORNEY L' ow DIR
Mr. John Mandeville ffrCLERK/ORIQ p POLICE CHF
Community Development Director ❑ DEPT HEADS Cl REC DIR
City of San Luis Obispo l3 ShOa'� G UTIL DIR
990 Palm Street Q TRti3V)-4 = p HR DIR
San Luis Obispo,CA 93401 6 A2ETTS .:-, . .-.- ..
Re: Request Removal of Item from City Council Consent Agenda
RRM Job#1400060
Dear Mr. Mandeville:
At this time, we respectfully request that Item C3 be pulled from the Consent Agenda of the City Council
meeting scheduled for December 4, 2001. We believe that the request for waiver of inclusionary housing
fees that qualify for fee exemption requires further discussion and public comment.
In September of this year, we submitted an application for approval of the Sierra Vista Medical Center
Master Plan. As a component of this application, we are requesting a determination that the hospital
expansion and parking garage be exempt from payment of inclusionary housing fees. The future Medical
Office Building is not included in this request. The following outlines the basis for the request for the
Hospital and Parking Garage:
• Non-Commercial Exemption: Noncommercial projects are exempt from the fee. Section
17.91.030B.8 reads as follows:
17.91.030B.8. Development projects which the City determines are essentially
noncommercial 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.
We believe that the proposed hospital expansion fits within this definition as it provides social
and related services to the community that seek to protect public health and safety. The hospital
expansion and related parking garage are clearly noncommercial in nature and will provide a
social or related service to the community. The applicant requests that the Council determine that
a hospital falls into the category of "...other similar organizations."
• Past Precedence: The City Council has previously determined that French Hospital is worthy of
special status as a facility that provides for the essential health and welfare or its residents.
Resolution No. 8680 (1997 Series), Section I Findings, the City Council determined the
following:
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Mr. John Mandeville
Page ')
November 30. 2001
"By participating in the recitals to this Resolution,the City will provide for the health and
welfare of its residents and further its public purposes by causing essential health care
services and facilities to be provided to the residents."
Given the similar nature of the organizations involved, we believe a nexus exists between this
determination and our request for exemption. Additional detail regarding this resolution is
contained in the attached memorandum from George Moylan.
o Community Investment: By .supporting the request, the Council will be encouraging and
facilitating the expansion of the Hospital. This expansion represents a multi-million dollar
investment that will have significant and long-standing benefits to the community.
Given the above information, we request that item C3 be removed from the Consent Agenda so that this
issue can be further discussed. If you should have any questions regarding this request, please contact our
office as soon as possible.
Sincerely,
ESIGN GROUP
ohn Knight
Principal Planner
Attachment: Memorandum from George Moylan
n/1401060/Plan/Govt/jk-Mandeville.113001
FILE No-075 1127 '01 15:39 TD:HOUSING AUTHORITY FAX:805 543 4992 PAGE 1/ 2
November 27,2001
TO: John Knight
FROM: George Moylan.
SUBJECT: Tnclusionary Housing Ordinance
Some written background for you and I would speak to what_is herein before the City
Council, Planning Commission, etc.
The City Council established an Inclusionary Housing Task Force in July 1998 basically
as the result of the intervention of Charlie Senn who at that time was Chairman of the
Plarming Commission. Members of the task force included John French, Robert Griffin,
Scott Smith,John Rossetti,Mary Whittlesey, and Betty Woolslayer. Steve Nelson of the
Housing Authority Commission was appointed Chair of the group and Jeff Hook and I
were appointed as staff to the task force.
For the next six months we met an a regular basis and developed Chapter 17.91 of the
City's Housing Element, an Inclusionary Housing Requirement. During that time there
were several issues that had to be worked out by the task force and they were with some
degree of our success. Although the resulting minutes are not definitive in some areas
they consistently speak to exclusions from the requirements and the need to place the
power for making those exclusions in the hands of the City Council. The resulting
Inclusionary Housing Ordinance was adopted by the City Council on February 16, 1999.
1 can't locate a final copy of that ordinance but the last draft I have is what I think was
finally adopted. Chapter 17.91.030 of that document excludes 10 different development
projects. 1 believe numbers 7 and 8 could possibly exclude the hospital from the
provisions of the ordinance.
In item 7 emergency projects, or projects which the City Council determines are
necessary to public health and safety are excluded. A solid argument can be made that
new and improved hospital services are necessary to.protect public health and safety. And
item 8 excludes development projects which the Council determines are essentially non-
commercial or non-residential in nature and which provide education, social or related
services to the community. You can argue the non-commercial and non-residential
perhaps but certainly the hospital will provide educational and socially related services to
the community. And it is certainly not commercial in the sense of a shoe store, clothing
store, 7— 11, etc. It is more of a service,community resource, etc.
FILE No.075 1127 '01 15:40 TD:HDUSING AUTHORITY FAX:805 543 4992 PAGE 2i 2
And here is where I believe the French Hospital situation is related to your case. In the
Resolution No. 8680 (1997 Series) which you sent me you find: "Whereas such as a
substantial portion of the persons treated at and otherwise utilizing the health care
services provided by the Facilities are residents of the City, and a substantial portion of
the persons employed at the Facilities are residents of the City". You find phrases such as
"for the common benefit and as is necessary or proper for municipal purposes". The
clincher comes in Section I Findings: `By participating in the financing described in the
recitals to this Resolution,the City will provide for the health and welfare of its residents
and further its public purposes by causing essential health care services and facilities to
be provided to the residents". Tenet's statement could read: `By participating in the
financing by exempting the development from inclusionary housing fees the City will
provide for the health and welfare of its residents and further its public purposes by
causing essential health care services and facilities to be provided to the residents of the
City.The nexus is beautiful. Exemption 7 concludes that projects the City Council
determines are necessary to protect public health and safety are exempt. One and one
equals 2 thus you are exempt.
The tag line in item 8 is" . . are proposed by public agencies,non-profit agencies,
foundations and other similar organizations. . French a hospital was qualified as a non-
profit in the City's own resolution don't you as a hospital qualify at least as an other
similar organization? Unfortunately the minutes of the task force's meetings do not
specifically cite hospitals as such organizations but the cited sections were discussed
extensively during the negotiations and the consensus was that the City Council should
be given the widest possible discretion. You are simply asking the council to use that
discretion for the good of the city and its residents.
J� V