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Home My WebLink AboutSAPETTO REAL ESTATE SOLUTIONS CORRESPONDENCE ITEM #2 EMAIL CORRESPONDENCE RECEIVED FROM SAPETTO REAL ESTATE SOLUTIONS, INC. DATED SEPTEMBER 25 2018 Demkowicz, Erica From: Pam Sapetto <psapetto@sapettorealestate.com> Sent: Tuesday, September 25, 201810:30 AM To: Demkowicz, Erica Cc: Craig Swanson;Andrea Maloney; Mary Coffee;John Nielsen Subject: Red Hill Corridor Specific Plan -for the Administrative Record. Attachments: Park Land Dedication and In-Lieu Fee Revised Mitigation Measure.pdf Importance: High Dear Erica: We are re-submitting our memo from August 13, 2018 which outlines our position regarding the imposition of Parkland fees for the Red Hill Specific Plan area. We would appreciate this memo and email being distributed to the PIanning Commission as soon as possible since it is for tonight's hearing. While the developer appreciates the staff's consideration of changes to the fee ordinance to make it less burdensome, the ordinance still suffers from all the same legal issues, and is still overburdens projects in Red Hill Specific Plan. The multiplier remains too high to reflect actual unit occupancy, resulting in Specific Plan developers providing a subsidy to address staff's belief that there is an existing deficit of parkland in the City, for which the developer would not be legally responsible. Thank you for your assistance Pamela Sapetto Principal,Sapetto-Real Estate Solutions, Inc 449-252-0841 714-815-7771 cell One Park Plaza,#600 PMB 313 Irvine, CA 9261.4 www.sapettorealestate.com 1 � SAPETTO REAL ESTATE SOLUTIONS, INC. August 13, 2018 Chairman and Members of the Planning Commission City of Tustin Sent via email RE: Public Hearing of August 14, 2018, Agenda Item 5: Red Hill Avenue Specific Plan EIR—Mitigation Measure 14.12-1 Recreation Dear Chairman and Members of the Planning Commission: We have been discussing with City staff the Red Hill Avenue Specific Plan EIR Mitigation Measure 14.12-1 requiring the Park Land Dedication or In-lieu fee (the "Mitigation Measure"). The Mitigation Measure provided in the January 2018 draft EIR would have required a fee that, based on the most recent Park Land Valuation, would have totaled approximately $3,644,444 per acre or $24,000 per dwelling unit, which is an amount that would make any development project infeasible. According to the staff report released on August 10, 2018 for the Red Hill Specific Plan and related Environmental Impact Report (EIR), the Mitigation Measure has now been revised and indicates that a Park Land Dedication of 3 acres per 1,000 population, consistent with the Quimby Act, is required for all projects within the Specific Plan. Further, for projects with density of greater than 25du, the Average Persons Per Dwelling Unit will be determined by the Community Development Director based upon product type. (See Attachment A.) We appreciate staffs willingness to address our concerns, however, this revision does not provide the information needed for a developer to determine with sufficient certainty the feasibility of a project proposed within the Specific Plan area. Specifically, the revised Mitigation Measure provides no set fee amount or calculation parameters for projects with densities greater than 25 du per gross acre. We have reviewed the population generation rates developed by a number of Orange County cities for apartment units and they range from 1.3 to 1.9 persons per unit, with fees ranging between $5,000 to $10,000 per dwelling unit. We recommend that a per unit fee be provided by the Mitigation Measure for projects greater than 25du per acre at no more than $8,000 per base unit (as defined in the recently approved City of Tustin Voluntary Workforce Housing Ordinance No. Sapetto Real Estate Solutions,Inc-One Parc Plaza,#600 PM8 313,Irvine,California 92614•(949)252-0841 www.SapettoRealEstate.com RedHill Avenue Specific Plan EIR Mitigation Measure 14.12-1 August 13,2018 Page 2 1491), and that the measure should require that fees collected pursuant to the Mitigation Measure be used only for additional park land or improvements to existing parks located in reasonable proximity to specific residential project paying fees, and within the Specific Plan area. Further, we request that the Parkland Mitigation Fee should only be imposed on the basis of"base units" because it is not clear pursuant to the existing Mitigation Measure text whether the City intends to require payment of the fee imposed for bonus units provided to projects receiving a density bonus under California Density Bonus Law (Gov. Code, §§ 65915-65918) as an incentive to provide affordable housing units on-site or offsite. California Density Bonus Law encourages development of affordable housing via a package of incentives, including density bonuses and project concessions, that are intended to make development of affordable housing economically feasible. To the extent the City intends to calculate the Parkland Mitigation Fees for Red Hill Specific Plan projects in a manner that allocates a fee to these incentive bonus units provided under state law, it would be contrary to the purpose of the Density Bonus Law and burdensome for projects that would otherwise help the City achieve important affordable housing goals. We believe that in order to encourage the development of much needed housing, (and affordable housing) in the Specific Plan area, which is in need of revitalization, the City should provide incentives to builders. Exclusion of bonus density units from application of the Parkland Mitigation Fee is one of the best ways for the City to assure that developers attain the full benefit of incentives provided by state law to encourage development of housing. We sincerely appreciate to your consideration of oursrequest. Respectfully, Pamela Sapetto Principal Sapetto Real Estate Solutions, Inc. ;! RedHill Avenue Specific Plan EIR Mitigation Measure 14.12-1 -August 13,2018 Page 3 Attachment "A" Existing Text: Red HMAre.—$pecifk Plan Mitigation Menitoringand epaning Program Table 1-1.Mitigation Monitoring Requirements hot, PO OFE-1. MM4.12-2-For residential projects not subject to Litt'of Tustin Subdivision Applicant PrJortD the Issuance of Community Development Code(Article 9,Chapter3,Section 9331 ortheTtjSt1p City Code),prior to the Building Permits Department—planning F. Issuance of building permits,applicants shall dadlcaleparldand or paya park Zoning Division fee,on a per unit basis,reflecting thevatue of land required for park ,J prpo ses.The amount of such fee shall be based upon the fair market value of the amount ofland which would otherwise be required fordedication, according to the following standards and Formula. Standards and Formula For Land Dedication; The public interest,convenience,health,welfare,and safety requires that three(3)acres of usable park land per one thousand(1,000)potential population be devoted to local park and recreational purposes. The minimum amount of land that would be otherwise be required for dedication shall be computed by multiplying the numberct proposed dwelling units by the Parkland Acres per Dwelling Unit In accordance with the appropriate density classification in the following table: Dwelling Units per Average Persons per Parkland Aces per Gross Acre Dwelling Unit DvtelliAq Unit 0-1 339 -0102 7.1-1s 2.85 .00N 15.1-25 2.24 J)067 25,1&Above As detemined by COD To be calculated to based upon proposed a "IC3.1 acres/ d pLr,d. type 1000 fart Mobile Home Partys 2.24 0057 These density rang",average persons per dwelling unit and/or parkland acreage per dwelling unit shall be used to achieve a parkland dedication rate of three(3)acres of parkland per one thousand(1.000)persons. I Recommended text: Delete 4'row of of the table set forth in Mitigation 4.12-1. Add text following the revised tab mandating: "Projects proposing a Residential Allocation Reservation of base units that result in a density of 25.1 du per gross acre or more shall pay a Parkland Mitigation Fee of $8,000 per "Base Unit," as that term is defined in Municipal Code Section B9912."