HomeMy WebLinkAbout11 PARKLAND IN-LIEU FEE WAIVER REQUEST-INTRACORPDocuSign Envelope ID: D991 E165-F97E-49A4-82C3-64B73530AC06
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4 - AGENDA REPORT
MEETING DATE:
TO:
FROM:
SUBJECT:
SUMMARY:
FEBRUARY 6, 2024
NICOLE BERNARD, ACTING CITY MANAGER
COMMUNITY DEVELOPMENT DEPARTMENT
Agenda Item 11
Reviewed: DS
�tB
City Manager
Finance Director N/A
PARKLAND IN -LIEU FEE WAIVER REQUEST — INTRACORP
On January 17, 2023, the City Council approved a General Plan Amendment, Zone Change,
Design Review, Density Bonus, Subdivision Map and Development Agreement (DA) for
Intracorp to construct 40 new residential condominiums on a 2.07-acre parcel at 17802 and
17842 Irvine Boulevard. Two (2) of the 40 units will be set aside for affordable housing for
Very Low -Income households. On January 10, 2024, Intracorp submitted a request for a
waiver of the two (2) Very Low -Income units from park in -lieu fees.
APPLICANT:
Emilie Simard
Intracorp Socal-1, LLC.
895 Dove Street, Suite 400
Newport Beach, CA 92660
LOCATION: 17802 AND 17842 Irvine Boulevard
RECOMMENDATION:
That the City Council adopt Resolution No. 24-11 approving the waiver of park in -lieu fees
for the two (2) Very Low-income units.
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The proposal would result in the loss of $53,405.80 of park in -lieu fees to the City.
CORRELATION TO THE STRATEGIC PLAN:
The request furthers the objectives of the following Strategic Plan goal:
• Goal A — Economic and Neighborhood Development #15: Create affordable and
workforce housing options.
DocuSign Envelope ID: D991 E165-F97E-49A4-82C3-64B73530AC06
City Council Report
February 6, 2024
Intracorp Park Fees
Page 2
PROJECT APPROVAL AUTHORITY:
Tustin City Code Section 9331.d.1.c. authorizes the City Council to waive parkland dedication
in -lieu fees upon submission and agreement for projects designed and guaranteed for low
income, senior and handicapped occupants.
DISCUSSION:
Background
On January 17, 2023, the City Council approved a General Plan Amendment, Zone Change,
Design Review, Density Bonus, Subdivision Map and Development Agreement (DA) for the
construction of 40 new residential condominiums on a 2.07-acre parcel at 17802 and 17842
Irvine Boulevard. Two (2) of the 40 units will be set aside for affordable housing for Very Low -
Income households.
To implement the Conservation/Open Space/Recreation Element of the General Plan, Tustin
City Code (TCC) Section 9331 d requires a subdivider (the developer) to dedicate land or pay
in -lieu fees for the purpose of developing new or rehabilitating existing parks to serve the
subdivision. TCC Section 9331 d2 requires three (3) acres of useable parkland per 1,000
project residents be devoted to local park and recreational purposes. Therefore, based on
the proposed project density, the developer is required to dedicate 11,674 square feet of park
land or pay fees in -lieu of dedication.
Pursuant to the Tustin City Code, the amount of the parkland in -lieu fees is based on the
value of the land at the time the final map is to be recorded. As such, an appraisal was
prepared by the Company that was approved by the City. The appraised value was
determined at $9 million (approximately $4.35 million per acre or $29,130.43 per dwelling
unit). However, at the request by Intracorp for a reduction of the fees, the value was adjusted
to the purchase price at $8.25 million since the property was recently purchased ($3.98
million per acre or $26,702.90 per dwelling unit).
Waiver of Parkland Fees In -Lieu of Dedication
Tustin City Code (TCC) Section 9331.d.1.c. authorizes the City Council to waive parkland
dedication fees upon submission and agreement for projects designed and guaranteed for low
income, senior and handicapped occupants. The approved project includes the provision of two
(2) affordable housing units for Very Low -Income households. If approved by the City Council,
a waiver of $53,405.80 would be deducted from the total parkland fees in lieu of dedication.
CONCLUSION:
The project is currently under construction with a grand opening for the model homes
scheduled on February 24, 2024. While there are a few outstanding housing agreement items
DocuSign Envelope ID: D991E165-F97E-49A4-82C3-64B73530AC06
City Council Report
February 6, 2024
Intracorp Park Fees
Page 3
that are still being considered, the project has progressed rapidly and the City was able to
accommodate the developer's timeline.
The project would set aside two (2) units for affordable housing for Very Low -Income
households. A waiver of parkland in -lieu fees for the two (2) affordable units would be
consistent with the City goals to facilitate and assist in the creation of affordable and
workforce housing options for its residents. Staff is recommending that the City Council
approve the waiver of parkland in -lieu fees in the amount of $53,405.80 for the two (2)
affordable units as authorized by the Tustin City Code.
DocuSigned by:
(Ju i r� a d . In';Q e _041.
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Justina Willkom
Community Development Director
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DASE41 E0391941C...
Chad C. Clanton
Director of Parks and Recreation
DocuSign Envelope ID: D991 E165-F97E-49A4-82C3-64B73530AC06
RESOLUTION NO. 24-11
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN APPROVING A
WAIVER OF PARKLAND IN -LIEU FEES FOR TWO (2) AFFORDABLE HOUSING UNITS
LOCATED AT 17802 AND 17842 IRVINE BOULEVARD
The City Council of the City of Tustin does hereby resolve as follows:
The City Council finds and determines as follows:
A. That a proper request has been submitted by Emilie Simard, Project Manager
for Intracorp SW, LLC., for a waiver of fees for parkland in -lieu of dedication for
two (2) affordable housing units in conjunction with The Jessup project located
on 17802 and 17842 Irvine Boulevard.
B. That the subject property is zoned Multiple -Family Residential (R-3) and is
designated as High Density Residential (HDR) by the Tustin General Plan and
allows for the development of high density residential development with a wide
range of living accommodations including single-family units, multiple -family
dwellings such as, apartments, condominiums, townhomes, cooperatives, and
community apartments.
C. That project was approved by the City Council on January 17, 2023, following the
recommendation by the Planning Commission.
D. That the project is a housing development project consisting of 40 condominium
units on an approximately 2.07-acre site. The project also includes two (2)
affordable housing units for Very Low -Income households.
E. Tustin City Code Section 9331.d.1.c. authorizes the City Council to waive fees for
parkland in -lieu of dedication fees upon submission and agreement for projects
designed and guaranteed for low income, senior and handicapped occupants.
F. That a meeting was duly called, noticed and held on the request on February
6, 2024, by the City Council.
G. That the request is consistent with the General Plan Housing Element Goal 1
in that the project would facilitate the provision of an adequate supply of
housing to meet the need for a variety of housing types and the diverse socio-
economic needs of all community residents and supports State Housing Law
as implemented by the Regional Housing Needs Assessment (RHNA). The
project provides for thirty-eight (38) market -rate for sale units and two (2)
affordable units.
H. That the proposed request is consistent with the following General Plan Land
Use goals and policies:
Resolution 24-11
Page 1 of 3
DocuSign Envelope ID: D991E165-F97E-49A4-82C3-64B73530AC06
a. Goal 1: Provide for a well-balanced land use pattern that
accommodates existing and future needs for housing, commercial
and industrial land, open space and community facilities and
services, while maintaining a healthy, diversified economy
adequate to provide future City services.
b. Policy 1.11: Where feasible, increase the amount and network of
public and private open space and recreational facilities which will
be adequate in size and location to be usable for active or passive
recreation as well as for visual relief.
That the City Council finds that this request is not subject to the California
Environmental Quality Act (CEQA) pursuant to California Code of Regulations,
Title 14, Chapter 3, Sections 15060 (c)(2) (the activity will not result in a direct
or reasonably foreseeable indirect physical change in the environment) and
15060(c)(3) (the activity is not a project as defined in Section 15378) because
it has no potential for resulting in physical change to the environment, directly
or indirectly.
II. That the City Council does hereby approve the waiver of $53,405.80 in parkland fees
in -lieu of dedication for two (2) affordable units located within The Jessup 40-unit
condominium project located at 17802 and 17842 Irvine Boulevard.
PASSED AND ADOPTED by the City Council of the City of Tustin at a regular meeting
on the 6t" day of February 2024.
AUSTIN LUMBARD,
MAYOR
ERICA N. YASUDA,
CITY CLERK
APPROVED AS TO FORM:
DocuSigned by:
DAVi&Eff3 7KENDIG,
City Attorney
Resolution 24-11
Page 2 of 3
DocuSign Envelope ID: D991 E165-F97E-49A4-82C3-64B73530AC06
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council of
the City of Tustin is 5; and that the above and foregoing Resolution No. 24-11 was duly
passed, and adopted at a regular meeting of the City Council held on the 6t" day of
February 2024, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
COUNCILMEMBER RECUSED:
ERICA N. YASUDA,
City Clerk
Resolution 24-11
Page 3 of 3