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HomeMy WebLinkAboutNB 2a PK LD DEDICATION 4-19-82DATE: TO: FROM: S UBJ ECT: April 19, 1982 NEW BUSINESS No. 2 4-19,-82 nter - ¢ om Honorable Mayor & City Council Community Development Department Park Land Dedication Fees Applicant: Robert Odle on behalf of Robert P. Warmington Company Location: Southerly Terminus of Newport Avenue, Tract 11370 DISCUSSION A request has been received to waive part of the Park Land Dedication fees for Tract 11370. Ordinance No. 841, Section 3B(4) states: Affordable Housing. Park land dedication fees may be waived by the City Council upon the submission of agreements for specific projects designed and guaranteed for low income and senior citizen occupants. On December 1, 1982, an agreement was entered into between the City of Tustin and the Robert P. Warmington Company agreeing to the terms and procedures relating to affordable housing for Tract 11370 (see attached agreement). RECO~ENDEO A~TION Since 35% of the units will be sold as affordable, it is recommended that the City Council lower the park land dedication fee by 35%, from $52,000 to $33,800 MAC:ih 4-7-82 I0~0~ Robert P. Wnrmir ton March 10, 1982 Mr. Mike Brotemarkel, Director of Co,m',~nity Development City of Tustin Centennial at Main Tustin, California 92680 Re: Tract 11370 - Parkland Development Fee Dear Mike: In February of this year we received correspondence from your office establishing the fees necessary for our company to pay to ~ City of Tustin applicable to Tentative Tract No. 11370. Included in this correspondence was a Parkland Development Fee in the amount of Fifty-Two Thousand Dollars ($52,000)% Ordinance No. 841. Section 3B(4) of the City Council of the City of Tustin allows the City Council to waive Parkland Development fees in cases where a specific development, by written agreement between the developer and the City, guarantees to provide afford- able housing obtainable by low income or senior citizen occupant~. In December, 1981, The Robert P. Warmington Co. entered into such an asreement with the City of Tustin. This agreement insures that at least thirty-five percent (35%) of the units constructed in this project will be sold within the price range determined to be afford- able for families whose income is within eighty percent (80%) to one hundred twenty percent (120%) of the median income as defined in the agreement. For this reason, we feel that this project is eligible for consideration under Ordinance No. 841. Please accept this as our request that the City Council of the City of Tustin make the determination that Tract 11370 complies with the intent of Ordinance No. 841, Section 3B(4), and that at least a partial waiver of the required Parkland Dedication fee of Fifty- Two Thousand Dollars ($52,000) be waived. Respectfully, Robert H. Odle Land Development, Director 3090 Pullman Street Costa Mesa, California 92626 (714) 966-1333 AGREEMENT This Agreement, by and between WA~MINGTON-TUST~N, LTD., a L~m~ted Partnership, (hereinafter "Developer") and the CITY OF TUSTIN (hereinafter "City") dated December I , 1981 stipulates the procedures by which Condition No. 2B of Resolution No. 1943 of the City Planning Agency, relating to Use Permit No. 81-2, will be implemented. City Planning Agency Resolution No. 1943, Section requires: "That thirty-five percent (35%) of the units shall be provided at a price affordable to households earning eighty percent (80%) to one hundred Twenty percent (1201) of the median income as determined by the Co~nity Development Director." THEREFORE, the parties hereto hereby agree that the following shall be adopted as the Affordability Formula through which the above mentioned Condition shall be implemented: 1. The project to be constructed by Developer contains 208 dwelling units. 73 of those units shall be subject to the terms of this Agreement. Developer may select any of such 208 units as the 73 units which shall be subject to the terms of this Agreement. This Agreement and Condition No. 2B of Resolution No. 1943 shall apply only to the initial sale of such 73 units by Developer and shall not apply to any subsequent sales of such units. Developer shall not be required to designate in advance the 73 units which are this Agreement. Within a reasonable period of time after the close of escrow of a unit which is sold in accordance with the terms of this Agreement, Developer shall provide City with all documentation reasonably required by City to confirm compliance with the terms of this Agreement and of Condition No. 2. The Median F~mdly Income as determined by the Co~=nity Development Director is hereby agreed to be the Median Family Income figures as determined by the Department of Rousing Urban Development (hereinafter "HUD") and adopted by the Orange County Board of Supervisors (hereinafter "Board"), This Median Family Income figure is Twenty-Nine Thousand, Nine Hundred Dollars ($29,900), effective for the month of September, 1981. 3. The Median Family Income for the preceding month shall be increased as of the first day of each month by 8/10th of 11. Exhibit "A" attached hereto sets forth the adjusted Median Family Income figure for each month from September of 1981 through December of 1982. Thereafter, the Median Family Income shall be adjusted on a monthly basis as set forth in this Agreement. 4. As of the close of each escrow of a unit subject =o this Agreement, the Median Family Income will be determined. At this point, the Affordable Income Range shall be established as beTween Eighty Percent (80%) of the Median Family Income and One Hundred Twenty Percent (1201) of the Median Family Income. Example: Assume that the Median Family Income is determined to be Thirty Thousand Dollars ($30,000), By applying the above mentioned procedure, the Affordable Income Range would be Twenty Four Thousand Dollars ($24,000) to Thirty Six Thousand Dollars ($36,000), per annum. 5. Thereafter, the affordable sales price range shall be determined. This shall be accomplished by adopting M13D's Federal Housing A~inistration's, (hereinafter "FHA") "multiplier" factor, and by applying this factor to both the Iow-end and high-end of the Affordable Income Range. FHA applys this multiplier to the gross income of a.perspective home buyer in determining the price of a house the perspective home buyer can afford. This multiplier factor is normally be=ween 3.0 and 4.0. Exan~le: Assume an Affordable Income Range of Twenty Four Thousand Dollars ($24,000) to Thirty Six Thousand Dollars ($36,000) and assume an FHA multiplier factor of 3.0. By applying the FI{A multiplier factor to both ends of the Affordable Income Range, the result is an Affordable Sales Price Range of Seventy Two Thousand Dollars ($72,000) to One Hundred and ~ight Thousand Dollars ($108,000). The FHA multiplier factor applicable at the close of each escrow shall be used in calculating the Affordable Sales Prioe Range, provided, however, that such factor shall not be less than three (3) nor more than four (4). 6. Any unit which is sold at a price which falls within the affordable sales price range as of the date of the close of escrow from Developer to the initial purchaser of such unit, shall qualify as a unit satisfying the terms and conditions of this Agreement and Condition No. 2B of Resolution No. 19~3. 7, The Developer and City accept the provisions herein contained as the fulfillment and implementation of the requirements as contained in City Planning Agency Resolution No, lq&3, Section 8. The City Co.unity Development Director shall have the authority to insure compliance with the provisions of this Agreement. 9. This Agreement shall be binding upon the Developer or its successors or assigns in any development relating to Use Perm£t No. 81-2. 10. This Agreement may be modified only by an agreement in writing executed by both parties hereto or their successors or assigns. IN WITNESS WliEREOF, the parties hereto have executed this Agreement on the day and year first above written. WARMINGTON-TUSTIN, LTD. A Lib/ted Partnership By: The Robert P. Warmington Co. RSger DV'Darnell, Vice President GENERAL PARTNER czT~ oF zusz=N, CALICOS, ,~V-----~.- ~ MONTHS/YEARS September, 1981 October, 1981 November, 1981 December, 1981 January, 1982 February, 1982 March, 1982 April, 1982 May, 1982 June, 1982 July, 1982 August, 1982 September, 1982 October, 1982 November, 1982 December, 1982 MEDIAN FAMILY INCOME 1 MEDIA~l FAMILY INCOME $ 29,900 30,139 30,380 30,623 30,868 31,152 31,401 31,652 31,905 32,161 32,418 32,677 32,939 33,202 33,468 33,736 1Source: County of Orange, Board of Supervisors. Factor of +.SZ utilized. Adjustment EXHIBIT "A"