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HomeMy WebLinkAbout10/05/2004, BUS 4 - EXCLUSION OF THE SAN LUIS OBISPO CHILDREN'S MUSEUM FROM AFFORDABLE HOUSING FEES BY SECTION 17.91.03 counat °� 1 agenba Report .k C I T Y O F SAN LUIS OBI S PO FROM: Wendy George,ACAO Prepared By: Betsy Kiser, Principal Administrative Analyst EQK SUBJECT: EXCLUSION OF THE SAN LUIS OBISPO CHILDREN'S MUSEUM FROM AFFORDABLE HOUSING FEES BY SECTION 17.91.030 OF THE AFFORDABLE HOUSING ORDINANCE AND AMENDMENT OF PARKING IN-LIEU FEES RELATING TO COMMUNITY PARTNERS CAO RECOMMENDATIONS: 1. Make a determination based on 17.91.030 (B.8.) of the City's Affordable Housing Ordinance that the San Luis Obispo Children's Museum is excluded from affordable housing fees. 2. Adopt a resolution amending the Parking In-Lieu Fees to include a new fee category for Community Partners. DISCUSSION Affordable Housing Fee Reduction On October 4, 2004, the San Luis Obispo Children's Museum (Children's Museum) will begin demolition of its existing facility at 1010 Nipomo Street in preparation for building a new, expanded museum to meet the needs of the community. As with any development project, it is required to pay development fees. Recently, the City received a request (Attachment 1) from the board president that the Children's Museum be excluded from paying the affordable housing fees associated with the project, which total $50,400. The basis of this request is Section 17.91.030 B.8. of the Affordable Housing Ordinance, which addresses applicability and exclusion of fees for development projects. The section excludes: "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." (Attachment 2) The Children's Museum meets the exclusionary criteria of the ordinance, but, per the ordinance, the City Council needs to make a formal determination to implement the policy. �f i Parking In-Lieu Fees for Community Partners Page 2 Parking In-Lieu Fee Area and Associated Fees -Background Section 17.42.020 of the San Luis Obispo Municipal Code provides for the option of paying a fee to the City in-lieu of providing parking in the Central Commercial (C-C) zone (downtown core). Chapter 4.30 of the Code allows the City Council to establish, by resolution, the amount of the parking in-lieu fee for construction, additions, and changes of occupancy in this zone. On January 22, 2002, the City Council passed a resolution increasing the parking in-lieu fees in the C-C zone. On September 3 of that same year, the City Council passed an ordinance approving amendments to Chapter 4.30 of the City of San Luis Obispo Municipal Code creating a Parking In-Lieu Fee Area in the downtown. Essentially, these amendments: 1) converted the existing parking in-lieu fee program to a boundary based program separate from the C-C zoning, and 2) expanded the boundary area. Impetus for decoupling the in-lieu program from C-C zoning and basing it on the boundary of the downtown rather than an individual zoning district stemmed, in part, from concerns that `other" zoned land in the downtown core, specifically Office and Public Facilities, were being inhibited from expansion by their inability to provide adequate on-site parking. Without the in-lieu parking fee option, the opportunity and possibility for public facilities such as the San Luis Obispo County Art Center, the San Luis Obispo Little Theatre and Children's Museum to expand their buildings at their current locations or within the cultural core would have been greatly limited. Community Partnership Program In October 1998, the City Council established a Community Partnership policy and program designed to support programs, projects and activities that are of interest and value to the City and the community, but cannot be implemented wholly by the City due to limitations on the City's human or financial resources. Within the restrictions of this program, City resources can be used in partnership with others to create opportunities for otherwise desirable but unfeasible projects or programs. Although level and type of City support varies according to the need of each Community Partner, the policy states "As a general guideline, it is reasonable to expect the City and the partner(s) shall each contribute half the cost toward a community partnership." To date, the City has formal, Council-approved Community Partnership agreements with the San Luis Obispo County Art Center, Friends of Las Casas de Adobes, the Children's Museum, the San Luis Obispo Little Theatre, the San Luis Obispo Railroad Museum and the San Luis Obispo County Historical Society. In most instances, the City leases facilities and/or land to the organizations at the nominal fee of $1.00/year. In return, the organizations operate in the downtown cultural core, provide unique enhancements to the downtown community, and contribute to a win-win situation for all parties involved. Impetus for Amending Parking In-Lieu.Fees When the resolution approving Parking In-Lieu Fees came before the Council in January 2002, decoupling of the parking in-lieu fee area from the C-C zone had not yet occurred. When decoupling did occur in September 2002, staff addressed the in-lieu fee "area" only and made no GAStaft\KiseACommunity Parmerships\CAR Parking in-lieu fees 62503:00r Parking In-Lieu Fees for Community Partners Page 3 further changes to the in-lieu fees. In retrospect, and in keeping with the spirit of the Community Partnership Policy, parking in-lieu fees for community partners should have been addressed at that time and a resolution providing for a new fee category specific to Community Partners should have been proposed. Since then, staff has discussed on several occasions the appropriateness of a fee category for Community Partners and took a proposal to the Downtown Association (DA) board of directors for their input on July 8, 2003. (See Attachment 3 for minutes from the DA meeting.) Both staff and the DA support the proposed fee category for Community Partners because it 1) maintains the integrity of the parking in-lieu fee program; 2) continues with the responsibility of new development to shoulder a share in the program; and 3) supports the efforts of Community Partners. The proposed new fee category takes into account the symbiotic relationship the City shares with its Community Partners. It entitles organizations that have entered into a formal agreement with the City, pursuant to the Community Partnership and Foundation Policy, and located in the Parking In-lieu Fee Area to a fee that is 50% of the parking in-lieu fees calculated under Section 17.42.020 of the San Luis Obispo Municipal Code. (Currently, the organizations that could benefit from this designation include the Children's Museum, the San Luis Obispo County Art Center, and the San Luis Obispo Little Theatre). CONCURRENCES The proposed new fee category was reviewed by the Downtown Association Board of Directors at its meeting of July 8, 2003. The Board felt strongly that a full in-lieu fee reduction should not be granted for Community Partners, as this shifted too great a burden on others to provide for parking downtown. However, the Board was supportive of a fee that is 50% of the currently required in-lieu fee. Public Works and Community Development are supportive of both recommendations. FISCAL IMPACT With regard to affordable housing, an exclusionary determination by City Council would represent a $50,400 reduction in fees collected by the City, although based on the ordinance, it appears the City never expected to receive fees from non-profit service organizations such as the Children's Museum. The full fiscal impact of the amendment to the parking in-lieu fee program is unknown at this time because parking requirements have not been determined for any Community Partner except the Children's Museum. In the case of the Children's Museum, the proposed parking in-lieu fee would represent a decrease of$104,949 in fees due for the project (18 required parking spaces x $11,661/space _2 = $104,949). While this amount represents a reduction in the total amount collected in the long-term parking program, it will not significantly impact the Parking Fund's fiscal condition. GAStaff\Kiser\Community Parmerships\CAR Parking in-lieu fees 62503doc Parking In-Lieu Fees for Community Partners Page 4 ALTERNATIVES 1. The City Council could determine that the Children's Museum is not eligible under Section 17.91.030 B.B. of the Affordable Housing Ordinance for an affordable housing fee exclusion. This is not recommended because the Children's Museum appears to meet the criteria of the section. 2. The City Council could choose not to provide a new fee category for Community Partners. This is not recommended due to the symbiotic nature of the work performed by the Community Partners and the value of that work to the City and the community. Resource support for the Partners contributes immensely to their solvency, which in turn contributes to the viability of the downtown area. ATTACHMENTS 1. Letter from the Children's Museum 2. Excerpt from the Affordable Housing Ordinance 3. Minutes from the Downtown Association board meeting July 8, 2003 4. Resolution GAStaf\Kiser\Community Partnerships\CAR Parking in-lieu fees 62503.doc I ATTACHMENT 1 o. Re Ge9��� .lJ September 17, 2004 SEP 2 2 2004 Admin s r ii n City of San Luis Obispo Attn: Betsy Kiser,Principal Administrative Analyst 990 Palm Street San Luis Obispo,CA 93401 RE: San Luis Obispo Children's Museum Dear Betsy: Thank you for assisting the San Luis Obispo Children's Museum through the maze of fees and approvals from the City of San Luis Obispo. We very much appreciate your help. While we and other community partners would like to pay less than 50%of the in-lieu parking fee, we support the City staff recommendation to place in-lieu parking fees at a rate of 50%for all community partners. We would also like the City Council to recognize the San Luis Obispo Children's Museum as an educational non-profit organization which exempts us per#Section 17.91.030 from the Affordable Housing fee requirement. Again,we thank you for your assistance in resolving these issues in such a timely manner. We are set to begin demolition on October 4'h and are anxious to proceed with the building permits needed to make the construction of the new SLO Children's Museum a reality. Thank you for your time and consideration. Please call if there are questions. Very truly yours, D. Michael Patrick Board President Museum: 1010 Nipomo Street•805-544-6212 Business Office: 1108 Garden Street, Suite 212•Phone: 805-545-5874• Fax:805-545-5875 San Luis Obispo, CA 93401 •Website: slokids.org 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 17.16.010 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 trap 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 [Wean 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 adoption date of the ordinance codified in this chapter. M. "Inclusionary housing unit" means a dwelling which is built under 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: 1Page 2(r ATTARENT 2 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 1 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. A. Fractional Numbers. In determining the number of dwellings that are required to be built pursuant to Table 1, fractional units less than 0.50 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 Page 3 " AT�ACHME�T� SLO Downtown Association Board of Directors 8 July 2003 City Council Hearing Room Minutes Present Correne Weaver Michael White Jeff Langford Brad Bilsten Howard Carroll Frank Merson Mark Jorgeson Craig A. Boisvert Deborah Holley, staff Maryann O'Brien, staff Betsy Kiser Motion to approve minutes by Main, 2nd by White, PAIF. Copeland Update Holley stated that Copeland's have pulled permits; City has 90 days to get lot ready for construction. Century/County Building updates Carroll said he would like to see relief—defer stone drain project to next year, may help to get cash flow back; Boisvert said Monterey St. Espresso owner has expressed she may have to close permanently. Carroll asked why it will take one month for stone drain; back to school not a good time to have construction, staging, need more info about Mono St. Holley will forward comments and look into this. Employee Contracts Motion by Langford to accept recommendation of exec com to approve employee contracts, 2nd by Main, PAIR Taste of San Luis Weaver said first meeting has already been held; need more people on clean up; Merson and White offered to stay late for oversee clean up. Next meeting: 24 July 8:30 AM. In lieu exception l RT°RCHMER3 Kiser reported item on Council agenda to extend exceptions for the cost of in lieu to community partners in the parking area; formal agreement; 50 % reduction; with trip reduction, can get even more credit; maintains the integrity of the parking fund,new development fair share, not wholesale waiver; Children's Museum will push for 100%. Langford expressed this will be difficult for Children's Museum. Carroll said he thinks staff's approach is good; sees it as developer paying for all the parking,we're all in this together; thinks the reduction is fair. Kiser said important to know going into campaign how much they need to raise. Main said in the scheme of things,the amount needed is not too high. Motion to support staffs recommendation because the Downtown Association recognizes benefits of community partners for Downtown but feels parking should be a cooperative effort; Boisvert suggested basing fee on revenue percentages. Merson asked to add"strategic plan recommendation" Langford said he feels City should pick up entire tab. Carroll said requiring all people to participate is healthy, does not pass burden on to a small group; everyone should pay fair share. Motion passes,Langford opposes. CDA Holley reported the California Downtown Association has extended a one-year free membership; first network meeting is in September. Mardi Gras First meeting July 30; O'Brien and Merson; Jorgeson said he will go to first meeting. Board vacations/schedules Weaver asked the Board to inform office of vacations in advance to save time in office. Special Event Ordinance Item has been postponed. President's Report Next meeting date: August 5 (?) A'ITi�� >; RESOLUTION NO. (2004 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO AMENDING PARKING IN-LIEU FEES WHEREAS, Section 4.30 of the 'San Luis Municipal Code provides for the option of paying a fee to the City in-lieu of providing parking spaces in the Parking In-Lieu Fee Area and provides for setting fees by resolution; and WHEREAS, after considering staff analysis and public comment regarding the desirability of establishing a new fee category for Community Partners that is 50% of the rate charged to others and consistent with the Community Partnership and Foundation Policy. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Section 1. A new parking in-lieu fee category for Community Partners is hereby established for organizations qualified under the City of San Luis Obispo's Community Partnership and Foundation Policy. Section 2. Parking in-lieu fees are hereby amended as set forth in Exhibit A, effective October 6, 2004. Upon motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted on October 5, 2004. Mayor David F. Romero ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: J na bZP. Lowell, City Attorney Exhibit A PARKING Effective October 6, 2004 Community All Fees Partners Others New Construction. Per vehicle space required by zoning regulations $5,831 $11,661 for the new construction and not otherwise provided. Additions to Existing Buildings. Per vehicle space required by 5,831 11,661 zoning regulations for the addition and not otherwise provided. Change in Occupancy Requiring Additional Parking Spaces. Per 1,458 2,915 vehicle space required by zoning regulations and not otherwise provided. The number of spaces required by the change shall be difference between the number required by the new use and number required by the previous occupancy.