HomeMy WebLinkAboutReso 2002-217 RESOLUTION NO. 2002-217
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AFFORDABLE HOUSING
AGREEMENT RELATED TO OTAY RANCH VILLAGE SIX,
BETWEEN THE CITY AND MCMILLIN OTAY RANCH, LLC,
AND AUTHORIZING THE MAYOR TO EXECUTE THE
AGREEMENT
WHEREAS, a condition of approval for the Otay Ranch Village Six Sectional Planning
Area (SPA) Plan required McMillin Otay Ranch, LLC (Developer) to enter into an agreement
with the City of Chula Vista to guarantee the construction and delivery of housing units
affordable to low and moderate income households prior to recordation of Developer's first final
map for Otay Ranch Village Six; and
WHEREAS, to comply with this condition, the City has prepared an Affordable Housing
Agreement for the Otay Ranch Village Six Planned Community for City Council's consideration
and approval; and
WHEREAS, on February 10, 1998, the City and Developer executed an Affordable
Housing Agreement (Doc No. 1998-0115872) as recorded by the San Diego County Recorder's
Office for the Otay Ranch Village One Sectional Planning Area (SPA). Section 2.b.i. of the said
agreement provides that the Developer may apply the seventeen (17) affordable housing unit
credits created through the development of the Cordova Village affordable apartment community
as referenced in the "Amended and Restated Rancho Del Rey SPA III Affordable Housing
Agreement" approved by the City Council by Resolution No. 18547 (Rancho Del Rey) to satisfy
the Developer's affordable housing obligation; provided however, Developer shall first pay the
City the amount of $14,000 for each affordable housing unit credit. Each affordable housing unit
credit is equivalent to one unit of affordable housing.
WHEREAS, Section 3 of the said agreement recorded as Doc No. 1998-0115872
provides that the Developer may, with the City's approval, be entitled to obtain credit for any
units created in excess of the affordable housing obligation for Otay Ranch Village One SPA
(Surplus Units). The extent to which the Developer is entitled to credit by the City for the
Surplus Units shall be governed by the City's consideration of the contributions to the Surplus
Units by the Developer, the City or other public agencies, level of affordability of the Surplus
Units, and concentration of affordable housing within the neighborhood of the Surplus Units. A
total of twelve Surplus Units were created through the development of the Teresina at Lomas
Verdes apartment community located in Otay Ranch Village One.
WHEREAS, this agreement implements affordable housing requirements and impacts
previously analyzed in the certified Environmental Impact Report for the Otay Ranch General
Development Plan and SPA Plan, therefore, no additional action is required under the California
Environmental Quality Act.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista
that this City Council does hereby approve in the form presented an Affordable Housing
Agreement related to Otay Ranch Village Six under Developer's ownership, a copy of which
shall be kept on file in the Office of the City Clerk.
Resolution 2002-217
Page 2
BE IT FURTHER RESOLVED that Developer may utilize seventeen (17) affordable
housing credits created in satisfaction of the obligation of Rancho del Rey SPA III upon payment
of $14,000 per affordable housing unit credit. This fee shall be paid on or before the issuance by
the City of the 356th building permit for the Project.
BE IT FURTHER RESOLVED that Developer may receive credit for the Surplus Unit
after consideration of certain factors by the City as outlined in the Rancho Del Rey Agreement.
The City Council of the City of Chula Vista finds that no direct City, Redevelopment Agency or
other public sector contribution was given for the development of the twelve (12) Surplus Units
created within the Teresina at Lomas Verdes apartment community. The Surplus Units have
achieved a greater level of affordability than normally required by providing housing for persons
at fifty percent of the Area Median Income. The Surplus Units are located within an apartment
community that provides the balance of the housing units as unrestricted with regard to income
and rent thus avoiding an unacceptable concentration of affordable units. Therefore, the City
has determined that those Surplus Units are available to further satisfy Developer's obligation
within the Otay Ranch Village Six planned community.
BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby
authorized to execute said agreement for and on behalf of the City of Chula Vista.
Presented by Approved as to form by
Chris Salom John M. Kaheny
Community Development Director City Attorney
Resolution 2002-217
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 18th day of June, 2002, by the following vote:
AYES: Councilmembers: Davis, Padilla, Rindone, Salas and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Shir!ey Horton, ~ayor
ATTEST:
Susan Bigelow, City Clerk o
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2002-217 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 18th day of June, 2002.
Executed this 18th day of June, 2002.
Susan Bigelow, City Clerk~a