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HomeMy WebLinkAbout04 WAIVER REQUEST FOR PARKLAND DEDICATION FEES RELATED TO 140 SOUTH A STREETAgenda Item 4 i ;,rrx Reviewed: AGENDA DA REPORT City Manager Finance Director /A MEETING DATE: JUNE 19, 2018 TO: JEFFREY C. PARKER, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: WAIVER REQUEST FOR PARKLAND DEDICATION FEES RELATED TO 140 SOUTH A STREET SUMMARY: Habitat for Humanity of Orange County, Inc. entered into a Disposition and Development Agreement (DDA) with the City of Tustin and the Tustin Housing Authority to build two (2) affordable housing units to be sold to income -eligible Veterans at 140 South A Street. Habitat has requested approval of a fee waiver for payment of parkland dedication fees. Applicant: Habitat for Humanity of Orange County, Inc. RECOMMENDATION: That the City Council adopt Resolution No. 18-39 authorizing a waiver of parkland dedication fees related to the construction of two (2) affordable housing units at 140 South A Street. APPROVAL AUTHORITY: Tustin City Code (TCC) Section 9331(d)(1)(c) authorizes the City Council in its discretion to waive parkland dedication fees upon the submission and approval of agreements for specific projects designed and guaranteed for low income, senior and handicapped citizen occupants. FISCAL IMPACT: If approved, it is anticipated that the impact to the general fund will be approximately $58,480 in parkland dedication fee revenue. CORRELATION TO THE STRATEGIC PLAN: The parkland dedication fee waiver falls under Goal D of the Strategic Plan pertaining to working collaboratively with agencies within and outside the City on issues of mutual interest and concern by creating affordable ownership opportunities for Veterans. BACKGROUND AND DISCUSSION: On July 5, 2016, the City Council approved a request to enter into a Disposition and Development Agreement (DDA) between the City of Tustin, Tustin Housing Authority, and City Council Report June 19, 2018 140 South A Page 2 Habitat for Humanity of Orange County, Inc. (Habitat) for the construction of two (2) affordable housing units to be occupied by Veterans. Affordable housing requirements identified in the DDA include, but are not limited to: Affordability Restrictions. Developer will make available and restrict occupancy to the homes to a qualifying Veteran constituting one (1) Low and one (1) Moderate Income Household as more particularly set forth in the Affordability Covenants. • Duration of Affordability Requirements. The homes shall be maintained as an owner - occupied unit available at and owned by a qualifying Veteran constituting one (1) Low and one (1) Moderate Income Households throughout the sixty (60) year Covenant Period. Selection of Buyers. Developer shall be responsible for the selection of homebuyers for the Homes. On February 28, 2017, the Tustin Planning Commission approved a request to subdivide the existing 7,405 square -foot lot for condominium purposes, consisting of one (1) numbered lot, for the development of two (2) detached single family dwelling units and related site improvements. Permits for this project have been issued and construction is underway. TCC Section 9331(d) requires the subdivider to dedicate land or pay a fee in lieu thereof, or a combination of both, at the option of the City except as otherwise provided in Government Code Section 66477, for the purpose of developing new or rehabilitating existing neighborhood or community parks and recreational facilities. This fee may be waived by the City Council in its discretion upon the submission and approval of agreements for specific projects designed and guaranteed for low income, senior and handicapped citizen occupants. On May 2, 2018, staff received a letter from Habitat requesting a waiver for payment of park dedication fees related to the construction of two (2) new residential units. These homes will be sold to income -qualified households at affordable prices with a sixty (60) year covenant period. Fees are based upon fair market value of the property at the time of final map recordation. No appraisal was conducted for this property, however the City used a recent appraisal for another project for an approximation. Fees are estimated at $58,480. The Economic Development Department and the City Manager's Office are supportive of this fee waiver. Samantha Beier, AICP Associate Planner Attachments: A. City Council Resolution No. 18-39 B. Request for Fee Waiver A Rt���k Elizabeth A. Binsack Community Development Director RESOLUTION NO. 18-39 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING WAIVER REQUEST FOR PARKLAND DEDICATION FEES RELATED TO THE CONSTRUCTION OF TWO AFFORDABLE HOUSING UNITS AT 140 SOUTH A STREET. The City Council of the City of Tustin does hereby resolve as follows: 1. The City Council finds and determines as follows: A. That on May 2, 2018, staff received a letter from Habitat for Humanity of Orange County, Inc. (Habitat) requesting a waiver for payment of park dedication fees related to the construction of two (2) new residential units. These homes will be sold to income -qualified households at affordable prices with a sixty (60) year covenant period. B. That on July 5, 2016, the Tustin City Council approved a request to enter into a Disposition and Development Agreement (DDA) between the City of Tustin, Tustin Housing Authority, and Habitat for Habitat for the construction of two (2) affordable housing units to be occupied by Veterans. C. That on February 28, 2017, the Tustin Planning Commission approved a request to subdivide the existing 7,405 square -foot lot for condominium purposes, consisting of one (1) numbered lot, for the development of two (2) detached single family dwelling units and related site improvements. D. That Tustin City Code (TCC) Section 9331(d) requires the subdivider to dedicate land or pay a fee in lieu thereof, or a combination of both, at the option of the City except as otherwise provided in Government Code Section 66477, for the purpose of developing new or rehabilitating existing neighborhood or community parks and recreational facilities. E. That on June 19, 2018 a public meeting was duly called and held concerning a fee waiver, requested by Habitat, for payment of parkland dedication fees. F. That TCC Section 9331(d)(1)(c) authorizes the City Council in its discretion to waive parkland dedication fees upon the submission and approval of agreements for specific projects designed and guaranteed for low income, senior and handicapped citizen occupants. I1. The City Council hereby approves the waiver of parkland dedication fees related to the construction of two (2) affordable housing units at 140 South A Street. Resolution No. 18-39 Page 2 PASSED AND ADOPTED by the City Council of the City of Tustin at a regular meeting on the 19"' day of June, 2018. ELWYN A. MURRAY MAYOR ATTEST: ERICA N. RABE CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) CERTIFICATION FOR RESOLUTION NO. 18-39 I, ERICA N. RABE, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 18-39 was duly passed was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 19th day of June, 2018, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. RABE CITY CLERK • ' • Habitat for Humanity' of Orange County Creating May 1, 2018 a World Where Samantha Beier, AICP Everyone Associate Planner has a City of Tustin Decent Place 300 Centennial Way Tustin, CA 92780 to Live. Re: Written Request for Waiver of Payment of Park Fees Dear Ms. Beier - RECEIVED MAY 0 2 2018 COMMUNITY DEVELOPMENT BY; Habitat for Humanity of Orange County, Inc. ("Habitat"), by this letter, requests a waiver for payment of necessary park fees. Habitat understands that if it provides a written request to the City of Tustin for waiver of park fees, such request would be considered, as long as the project qualifies for such waiver. Tustin's Subdivision Manual states, under Part D, the grounds for a waiver: "D. Waiver Parkland dedication fees may be waived by the City Council in its discretion upon the submission and approval of agreements for specific projects designed and guaranteed for low incomesenior and handicapped citizen occupants." Habitat believes that it qualifies for the waiver of necessary park fees under Part D as our Tustin project provides affordable housing for veterans. If you have any questions about the above, please do not hesitate to contact me at brad@habitatoc.org, or (714)434-6200x214. Sincerely, Brad Shipcott Director of Land and Home Development Habitat for Humanity of Orange County, Inc. 2200 Ritchey Street . Santa Ana, CA 92705 . 714.434.6200 • Fax 714.434.1222 . www.HabitatOC.org