HomeMy WebLinkAbout11/20/1990, C-7 - LEASE OF CITY-OWNED PROPERTY AT 1090 ORCUTT ROAD TO THE SAN LUIS OBISPO HOUSING AUTHORITY FOR THE P i,l'I�I1III�III'�Illlll 'IIIIIII C1 Ly O� San L:lls OBISpO fiffiffiRil
MEETING DATE
COUNCIL AGENDA REPORT ITEM NUMBER:
0
FROM: Arnold Jonas,/Community Development Director .
PREPARED BY: Terry Sanville, Principal Planner
SUBJECT: Lease of city-owned property at 1090 Orcutt Road to the San
Luis Obispo Housing Authority for the purpose of developing
assisted housing.
CAO
RECOMMENDATION: (1)By minute action,tentatively supporfthe classification of the
property at 1090 Orcutt Road as surplus to the city's needs and
direct staff to return with a formal resolution after required
property history research and deed resitriction analysis have
been completed;
(2) Direct the staff to negotiate a land lease with the Housing
Authority; and
(3) Direct the Housing Authority to submit appropriate
application materials to the Community Development
Department for amending the Land Use Element map and
Zoning Map.
BACKGROUND
The Housing Authority wants to secure the use of this city-owned parcel for the purpose
of developing an assisted housing project. As outlined in the attached letter from George
Moylan (dated July 5, 1990), the property would be developed and managed by a non-
profit corporation and would be rented to lower income persons. To demonstrate the
feasibility of developing housing on the site, the Housing Authority has submitted some
initial sketches for the property. This report focuses on four key issues:
1. Consistency of the proposed actions with adopted plans and policies.
2. Declaring this property as surplus or retaining it for some other public purpose.
3. The desirability of developing the site with housing and various density options.
4. Procedure for developing the site with housing.
DATA SUMMARY
Applicant: City of San Luis Obispo Housing Authority
Zoning: C-S (Commercial-Service)
General Plan: Service Commercial-Light Industrial
Environmental Status: Environmental review will be completed prior to Council Action
on any Lease Agreement.
Site Description: A 0.70 acre vacant parcel of irregular shape with a creek
bisecting it and with frontage on both Orcutt Road and Laurel
Lane.
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llllllll city Of San Luis OBISPO
COUNCIL AGENDA REPORT
EVALUATION
1. Consistency of the Proposal with Adopted Plans and Policies
A. Housing Element: The adopted General Plan Housing Element contains the following
program statement on page 41:
The city will make available for assisted housing suitably located surplus city land
[emphasis added]. If made available at less than market rates, the city may obtain
equity participation in the project, to be recouped if the site is transferred. Property
exchanges involving sites which are not suitable for housing may be considered.
Responsible agencies: City Housing Authority; City Council
The applicants request to lease the property is consistent with this policy if the City Council
finds that the site is a "suitable" location for housing and that it is surplus to the city's
needs.
B. Property Management Manual (1986): The adopted property management manual
includes the following statement (page A-6):
15. Offer property lease first to the following categories, on acceptable terms:
a. Housing Authorities (for low income housing)
b. County, regional and state agencies
c. Parks, recreation, open space area
d. School districts
The Housing Authority's request is consistent with this provision which indicates that if the
city intends to lease property that low income housing projects have the highest priority.
It should also be noted that Table #9 of the adopted property management manual
classifies all city properties as:
Categories:
A = In Use
B = Interim Use/Targeted
C = Unused Targeted
D = Surplus (recommended)
E = Right of Way
The Orcutt Road property is designated as a type "D" property.
C. Land Use Element and Zoning Designations: The Land Use Element and the zoning
maps designate the property as "service commercial-light industrial." Development of the
property with housing is not consistent with these designations and will require City Council
approval of general plan and zoning amendments.
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VNQs COUNCIL AGENDA REPORT
2. The Desirability of Retaining This Property for Public Purpose.
To lease the property to the Housing Authority, the City Council should determine whether
the property is surplus to the city's needs. This is required by the Housing Element policy
noted above and by the city Property Management Program procedures.
In 1964 the City acquired this property to eventually accommodate a cloverleaf style
interchange between Orcutt Road and Laurel Lane. Since that time the design has been
modified and a revised setback line has been adopted (July 1, 1981). The city-owned
parcel is not within the revised setback line. The Public Works Department does not object
to the lease of the property.
To staff's knowledge, city plans or budget documents do not include a proposed public use
for the property.
3. The Desirability of Developing the Site with Housing and Various Density Options.
A. Existing Land Use Pattern: The pattern of land uses is shown on the attached excerpt
from the city's zoning map. The property lies between residential development (R-1, R-
2 and R-3 properties) on the north and east and service commercial properties on the south
and west.
Within the C-S area, the city has just approved the expansion of the auto repair use at the
corner of Laurel Land and Orcutt Road. A new car wash fronting Orcutt Road has just
opened.
Adjoining residential areas include multi-family housing on.Laurel Lane (R-3) and fronting
Orcutt Road (R-2) and single family dwellings at the south end of Woodside Drive (R-
1).
B. Site Characteristics: The site has limited frontage on Laurel Lane and Orcutt Road.
There is a creek that includes significant vegetation that bisects the property. Department
administrative policy suggests that any significant vegetation should be preserved and that
an adequate setback from the top of the creek banks (eg. 20 feet) should be assured.
(Note: creek preservation issues will effect any type of urban development of the site.)
The shape of the parcel will limit options for arranging dwellings on the site. At this point
staff has not evaluated the sketches provided by the Housing Authority to ensure that all
city access, open space, and parking standards are met. However, the sketches do show that
housing can be physically developed on the property and that access, parking and open
space can be provided.
There is a sewer line the borders the northern property line and a man hole that will have
to be protected via an easement.
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WaZa COUNCIL AGENDA REPORT
Compatibility issues include the relationship of multifamily units to the R-1 dwellings to
the north and the compatibility of residences with the newly-established car wash that fronts
Orcutt Road. In general, residential use of the site will be more compatible with existing
housing areas than service commercial development of the site.
In conclusion, staff feels that the site can be found suitable for residential use. Establishing
an appropriate housing density (R-2 or R-3) and preparing a site plan to deal with
compatibility issues will require more work and should be done in concert with any rezoning
studies for the property.
4. Procedure for Developing the Site with Housing.
If the City Council supports the Housing Authority's request.to lease the property for
housing, staff foresees the following steps:
A. Administrative staff and the Housing Authority negotiates a land lease for the
property.
B. Public Works staff conducts necessary property history research,title search and deed
analysis and submits a resolution for City Council consideration that declares the
property surplus.
C. The Housing Authority submits an application for a General Plan and Zoning Map
amendment to the Community Development Department for processing. (At this
point, the project envisioned by the sketches submitted by the Housing Authority
appear to require R-3 zoning.)
D. As part of the processing of the Zone Change and the General Plan amendment, the
Community Development staff would complete environmental evaluation of
residential use of the property.
Both the Planning Commission's recommendations on the General Plan/Zoning
amendments and the negotiated land lease would be simultaneously considered by the City
Council.
ACTION ALTERNATIVES
Alternatives to the CAO's recommendation include:
1. Denying the Housing Authority's request to lease the property.
2. Continuing consideration of the Housing Authority's request with direction to city
and Housing Authority staff.
C -'7
city of san Luis oBispo
j COUNCIL AGENDA REPORT
CAO RECOMMENDATION
The City Council should:
1. By minute action, tentatively support the classification of the property at 1090 Orcutt
Road as surplus to the city's needs and direct staff to return with a formal resolution
after required property history research and deed resitriction analysis have been
completed;
2. Direct the applicant to work with the administrative staff to negotiate a land lease.
(It is the staffs feeling that the city should retain ownership of the land and the any
improvements made to the property revert to city ownership after a specified period
of time. As part of the lease arrangement, the staff will also pursue assurances that
the project will be maintained as an "assisted" housing project throughout the lease
period.)
3. Direct the Housing Authority to submit appropriate application materials to the
Community Development Department for amending the Land Use Element map and
Zoning Map.
Attachments
Vicinity Map
July 5, 1990 Letter from George Moylan including project sketches
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RECEIVED ,111 5 r-,
hous,nc authomy
OF THE CITY OF SAN LUIS OBISPO
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487 Leff Street • P.O.Boa 638 • San Luis Obispo,CA 93406 (805)543-4478
Executive Director-Secretary
A.RicuAnn CuunoN
July 5, 1990
Mr. John Dunn .
Chief Administrative Officer
City of San Luis Obispo
P.O. Boot 8100
San Luis Obispo, CA.93403-8100
Dear John:
It has been suggested that a brief outline of the proposed plans for the
development of the City owned site at Orcutt Road and Laurel Lane (I believe
your parcel 04-961-47) may be appropriate at this time.
Marvin Sibner, whose item was placed on the June 19 agenda by Councilor Rappa,
has been working with our San Luis nhi I Non-Profit Housing Corporation for
�l sane time. The exact role Mr. Sumer would play in the development of this site
has yet to be worked cut with the non-profit. However, bath parties have agreed
that Mr. Sibner would help guide the proposed develcp�t through it's infancy.
With that in mind Mr. Sibner has worked closely with me in developing concept,
attempting to secure City approval for use of the land, etc.
The enclosed initial renderings-have been prepared for us by Paul Wolff, a
registered architect who teaches at Cal Poly. The sketches are admittedly rough
and were done without benefit of a prsurvejr. We are reluctant to expend
funds on a more formal presentation without some indication that the City
Cox=U will give support to the concept we have suggested. The sketches show a
split developrent, preserving the creek that divides the site, as a
sitting/passive recreational area, with buildings on either side. One of the
buildings would be used to house senior citizens while the second building g would
be used to house clients of the non-profit Eriendship School. We feel the
unique orientation of the site, with direct access to Orcutt Road and Laurel
Lane, mikes this type of split development possible.
The site would undoubtedly be developer) through the tax credit program
authorized by the Internal Revenue Servi_oe Act of 1986. Occupancy would be
limited to persons whose annual incomes would be less than $16,000 per year.
Maxii n rents would be less than $400 per month, including all utilities. The
owner would be a limited partnership created by the San Luis Obispo Non-Profit
Housing Corporation. Sime the land would not be acqp,i Ted with Community
Developmerrt funds, as happened with cur Poinsettia Street units, a lard lease
payment would be negotiated with the City. I would caution that because of the
economics of rental developments we would hope that such a lease could be
negotiated at a nominal amount during the first few years of operation,
increasing in later years as the develcImEnt became more self-sufficient.
tome.oma.[
As with Poinsettia Street the Housing Authority would massage the units for
S.L.O. Naas-Profit thus assuring local control of the units for their useful
life.
Also, given the Poinsettia Street illustration, we would expect to raise most of
the bion cost of the develcprent through the sale of the tax credits,
with the remainder of the cost caning frau a small mortgage which would be
repair] via tenant rents. The reserves of the Housing Authority, which by Federal
.regulation can be used for any approved lam-i*ccue housing use, would be
available aht a to assist the develcipment in aIsy masher approved by the Housing
Authority. Those reserves now exceed $500,000.
Why this developsn°nt? In short it is surplus City lased which appears to
be limited in it's reuse and thus in value to the City. A residential
development at that location, particularly the projected may, would
be smarm-intrusive to a neighborhood that is currently a mixture of [rlm erri al
and higher density residential units. It is within walking distance to
shcpping, .it is serviced by the City bus, it is near to the ca aunty gardens,
and a southern exposure is available to take advantage of passive, and
perhaps active, solar possibil;ties.
In short we think it could be an attractive residential development meeting
community needs while at the same time pro ng some income for the City
while ownership of the land would rest with the City at all times.
Sincerely,
George J. Moylan
for San Luis O iLspo
Norm-Profit Housing
Corporation
oc: Marvin Sibner
Dave Singleton
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