Loading...
HomeMy WebLinkAboutRDA Packet 2003/10/14 CI'IY OF TUESDAY, OCTOBER 14, 2003 CHULA VISTA COUNCIL CHAMBERS 6:00 P.M. PUBLIC SERVICES BUILDING (immediately following the City Council meeting) ADJOURNED JOINT MEETING OF THE REDEVELOPMENT AGENCY / CITY COUNCIL OF THE CITY OF CHULA VISTA CALL TO ORDER ROLL CALL Agency/Council Members Davis, McCann, Rindone, Salas; Chair/Mayor Padilla ORAL COMMUNICATIONS This is an opportunity for the general public to address the Redevelopment Agency/City Council on any subject matter within the Agency/Council's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Redevelopment Agency/City Council from taking action on any issues not included on the posted agenda.} If you wish to address the Agency/Council on such a subject, please complete the "Request to Speak Under Oral Communications Form" available in the lobby and submit it to the City C[erk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up action. PUBLIC HEARING The fo[lowing item(s} have been advertised and/or posted as public hearings as required by law. if you wish to speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit it to the Redevelopment Agency or the City Clerk prior to the meeting. 1. CONSIDERATION OF (A) A PARCEL REZONE FROM THE THOROUGHFARE COMMERCIAL PRECISE PLAN (C-T-P) ZONE TO THE CENTRAL COMMERCIAL PRECISE PLAN (C-C-P) ZONE; AND (B) PRECISE PLAN (PCM-03-21) TO ALLOW FOR A MIXED-USE PROJECT THAT INCLUDES: 1) 41 APARTMENTS AFFORDABLE TO VERY LOW INCOME SENIOR CITIZENS; 2) ONE MANAGER'S APARTMENT; AND 3) 2,219 SQ. FT. OF RETAIL SPACE Public hearing to consider a mixed use project including 41 rental units for very Iow income seniors, one manager's unit, 2,219 sq. ft. of retail space, and 6,100 sq. ft. of community space. [Community Development Director] STAFF RECOMMENDATION: 1) City Council place 2.a. on first reading; 2) City Council place 2.b. on first reading; 3) Redevelopment Agency adopt resolution 2.c.; and 4) City Council adopt resolution 2.d. a. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE NEGATIVE DECLARATION (IS-03-0~08) AND AMENDING THE ZONING MAP ESTABLISHED BY SECTION 19.18.010 OF THE MUNICIPAL CODE REZONING A 1-ACRE PARCEL LOCATED AT 825 BROADWAY FROM THE C-T-P (THOROUGHFARE COMMERCIAL, PRECISE PLAN) ZONE TO THE C-C-P (CENTRAL COMMERCIAL, PRECISE PLAN) ZONE b. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING PRECISE PLAN (PCM-03-21) FOR A MIXED-USE RESIDENTIAL AND RETAIL DEVELOPMENT LOCATED AT 825 BROADWAY WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA c. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE MIXED-USE PROJECT AND ENTERING INTO AN OWNER\TENANT PARTICIPATION AGREEMENT WITH THE CHULA VISTA ELEMENTARY SCHOOL DISTRICT AND THE METROPOLITAN AREA ADVISORY COMMITTEE FOR THE CONSTRUCTION OF A MIXED-USE RESIDENTIAL AND RETAIL DEVELOPMENT AT 825 BROADWAY WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA d. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CONDITIONALLY APPROVING FINANCIAL ASSISTANCE, SUBJECT TO FUTURE APPROPRIATION, IN THE FORM OF A RESIDUAL RECEIPTS LOAN FROM HOME FUNDS IN AN AMOUNT NOT-TO-EXCEED $300,000 TO THE METROPOLITAN AREA ADVISORY COMMITTEE (MAAC) PROJECT FOR THE DEVELOPMENT OF THE PROPOSED 42 UNIT PROJECT LOCATED AT 825 BROADWAY 2. DIRECTOR/CITY MANAGER'S REPORT(S) 3. CHAIR/MAYOR REPORT(S) a. Appointment of Urban Development Committee (UDC) Working Committee 4. AGENCY/COUNCIL COMMENTS ADJOURNMENT The meeting will adjourn to a closed session and thence to a regular meeting of the Redevelopment Agency on October 21, 2003, at 6:00 p.m., immediately following the City Council meeting in the City Council Chambers. CLOSED SESSION Unless Agency Counsel, the Executive Director, or the Redevelopment Agency/City Council states otherwise at this time, the Agency/Council will discuss and deliberate on the following item(s) of business ~vhich are permitted by law to be the subject of a closed session discussion, and which the Agency/Council is advised Ishould be discussed in closed session to best protect the interests of the City. The Agency/Council is required by I~w to return to open session, issue any reports of final action taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping will be terminated at this point in order to save costs so that the Agency/Council's return from closed session, reports of final action taken, and adjournment will not be videotaped. Nevertheless, announcements of actions taken Jn Closed Session shall be made by Noon on Wednesday following the meeting at the City Clerk's office in accordance with the Ralph Brown Act (Govt. Code ~; 54957.7) Redevelopment Agency, October 14, 2003 Page 2 5. CONFERENCE WITH REAL PROPERTY NEGOTIATOR -- Pursuant to Government Code Section 54956.8 Property: Agency-owned parcels at the northwest corner of Third Avenue and H Street Negotiating Parties: Redevelopment Agency (Laurie Madigan) and Gateway Chula Vista, LLC (Jim Pieri) Under Negotiations: Terms of lease and DDA revisions AMERICANS WITH DISABILITIES ACT The City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who require special accommodates to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least 48 hours in advance for meetings and five days for scheduled services and activities. Please contact the Secretary to the Redevelopment Agency for specific information at (619) 691-5047 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5647. California Relay Service is also available for the hearing impaired. Redevelopment Agency, October 14, 2003 Page 3 PAGE 1, ITEM NO.: / MEETING DATE: 10/14/03 JOINT REDEVELOPMENT AGENCY / CITY COUNCIL AGENDA STATEMENT ITEM TITLE: PUBLIC HEARING TO CONSIDER (A) A PARCEL REZONE FROM THE THOROUGHFARE COMMERCIAL PRECISE PLAN (C-T-P) ZONE TO THE CENTRAL COMMERCIAL PRECISE PLAN (C-C-P) ZONE AND A (B) PRECISE PLAN (PCM-03-21) TO ALLOW FOR A MIXED-USE PROJECT THAT INCLUDES: (1) 41 APARTMENTS AFFORDABLE TO VERY LOW-INCOME SENIOR CITIZENS WITH ASSOCIATED SUPPORT SERVICES; (2) ONE MANAGER'S APARTMENT; (3) 2,219 SQUARE FEET OF RETAIL SPACE; AND (4) REDUCTIONS IN SETBACKS, PARKING AND OPEN SPACE LOCATED 825 BROADWAY TO BE DEVELOPED BY THE METROPOLITAN AREA ADVISORY COMMITTEE (MAAC) PROJECT~ a. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE NEGATIVE DECLARATION (IS-03-008) AND AMENDING THE ZONING MAP ESTABLISHED BY SECTION 19.18.010 OF THE MUNICIPAL CODE REZONING A 1-ACRE PARCEL LOCATED AT 825 BROADWAY FROM THE C-T-P (THOROUGHFARE COMMERCIAL, PRECISE PLAN) ZONE TO THE C-C-P (CENTRAL COMMERCIAL, PRECISE PLAN) ZONE b. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING PRECISE PLAN (PCM-03-21) FOR A MIXED-USE RESIDENTIAL AND RETAIL DEVELOPMENT LOCATED AT 825 BROADWAY WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA c. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE MIXED-USE PROJECT AND ENTERING INTO AN OWNER\TENANT PARTICIPATION AGREEMENT WITH THE CHULA VISTA ELEMENTARY SCHOOL DISTRICT AND THE METROPOLITAN AREA ADVISORY COMMITTEE FOR THE CONSTRUCTION ~OF A MIXED-USE RESIDENTIAL AND RETAIL DEVELOPMENT AT 825 BROADWAY WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA d. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CONDITIONALLY APPROVING FINANCIAL ASSISTANCE, SUBJECT TO FUTURE APPROPRIATION, IN THE FORM OF A RESIDUAL RECEIPTS LOAN FROM HOME FUNDS IN AN AMOUNT NOT-TO-EXCEED $300,000 TO THE METROPOLITAN AREA ADVISORY COMMITTEE (MAAC) PROJECT FOR THE DEVELOPMENT OF THE PROPOSED 42 UNIT PROJECT LOCATED AT 825 BROADWAY SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR ~~ PLANNING AND BUILDIN/G~ DIRECTOR REVIEWED BY: EXECUTIVE DIRECTOR ~ 4/STHS VOTE: YES NO /--! PAGE 2, ITEM NO.: MEETING DATE: '10/14/03 BACKGROUND On June 10, 2003, a joint meeting of the City of Chula Vista City Council arid I~edevelopment Agency was convened to consider the development proposal submitted by the Metropolitan Area Advisory Committee (MAAC) Project for the project commonly known as Seniors on Broadway. The project is located at 825 Broadway and includes 41 one-bedroom units affordable to very- Iow income seniors, 1 ~wo-bedroom manager's unit, community space of 6,100 square feet and 2,200 square feet of retail space. At that time the City Council/Agency directed staff to work with the developer and the community to address the issues that were raised. Staff has been working with the developer and the school district to devise and implement strategies to address the concerns. Subsequent to the public hearing on June 10, 2003, staff has spent numerous hours, in particular, the Traffic Engineering Division, working with the School District to review the traffic concerns and develop and implement a traffic control plan. Incorporating both comments from the City Council/Agency, community members, school district, developer and architect, many changes were negotiated and implemented. The details will follow in the Discussion section of this report. This Agenda Statement is meant to summarize the issues as discussed at the previous public hearing and from that obtained by written correspondence from members of the public and provide information regarding how each issue has been resolved or to clarify information previously presented. The Agenda Statement from the previous public hearing is also a~tached (see Attachment 2). Also attached are the revised Ordinance adopting the Negative Declaration and amending the zoning map which was modified to properly format the findings as previously written (see Attachment 5) and the revised Ordinance approving the Precise Plan which was modified to provide additional findings (see Attachment 6). ENVIRONMENTAL REVIEW Pursuant to the California Environmental Quality Act (CEQA), a Negative Declaration has been prepared for the project. During the public review and comment period for the draft Negative Declaration, a comment letter was received from a member of the public, which raised environmental concerns related to traffic and parking and commented upon the project description. In response to the comment letter, several factual corrections were made to the final Negative Declaration, which did not change any of the conclusions of the draft Negative Declaration. In order to approve the project, the Council would need to adopt the final Negative Declaration, which was provided to the Council prior to the previous public hearing and discussed during the hearing. RECOMMENDATION That the City Council and Redevelopment Agency take the following actions: PAGE 3, ITEM NO.: MEETING DATE: 10/14/03 a) Adopt the City Council Ordinance adopting the Negative Declaration and amending the zoning map; b) Adopt the City Council Ordinance approving the Precise Plan; c) Adopt the Redevelopment Agency resolution approving the mixed-use project and the Owner/Tenant Participation Agreement with the Chula Vista Elementary School District and the MAAC Project; d) Adopt the City Council resolution conditionally approving financial assistance for the 41 affordable senior units BOARDS/COMMISSIONS RECOMMENDATION The Housing Advisory Commission reviewed and recommended unanimous approval of the MAAC Project development and financial assistance for the Project on February 26, 2003 and on April 23, 2003 respectively. Following extensive discussion of the adequacy of the proposed off-street parking, the Resource Conservation Commission unanimously recommended adoption of the Negative Declaration on April 7, 2003. The Design Review Committee provided comments at two informal reviews of the Project conducted on November 18, 2002 and March 3, 2003. On April 21, 2003, the DRC considered the Negative Declaration (IS-03-008), Rezone application (PCZ-03-02) and Precise Plan application (PCM-02-05) and recommended adoption of IS-03-008, PCZ-03102 and PCM-03-21 to the Planning Commission by a 4-0 vote. On May 14, 2003, the Planning Commission considered and recommended adoption of the Negative Declaration, Rezone and Precise Plan to the City Council by a 6-0 vote (see Attachment 4). The project site is located at 825 Broadway between Sierra Way and 'K' Street and is currently vacant. The site is owned by the Chula Vista Elementary School District and is adjacent to the Chula Vista Charter School's recreation field. The project is a combined Rezone and Precise Plan proposal for an urban in-fill mixed-use project that will be developed by the MAAC Project. The Project has been designed in cooperation with the Chula Vista Elementary School District and the Chula Vista Learning Charter School with the purpose of implementing an intergenerational exchange program. Ground floor community space including a community room, library and service kitchen will provide the facilities to operate "Generations Together," a program to cultivate the intergenerational exchange of experience between the senior residents and the students of the adiacent Charter School. Examples of activities that will be provided include culinary arts, arts and crafts, computer technology and graphic arts training. PAGE 4, ITEM NO.: MEETING DATE: 10/14/03 On June 10, 2003, the City Council heard public testimony for the proposed mixed-use project. The issues that were raised at the hearing by the public and Council members ir~cluded: · Zone change · Traffic · Parking ratio · Setback reductions · Balcony overhang · Open Space reductions · Environmental Review · Limited noticing radius · Quality of Life The Council directed City staff to work with MAAC and the Chula Vista School District to resolve these issues. In response, staff met with both the developer and School District on numerous occasions and held several community meetings to update neighborhood residents about the progress. COMMUNITY OUTREACH A community meeting was held on August 27, 2003, to present the information and changes that had been made and to discuss additional efforts in place. The purpose of this meeting was to update the community as to status of the project and to discuss what steps had been taken to address the issues that both the City Council/Agency and members of the public had raised at the hearing. Three members of the public attended the meeting and raised concerns that the meeting notice was received too close to the date of the meeting, that the meeting was during the end of the summer when many people may have been on vacation and that not enough residents to the north of K street had been invited. The residents that at~ended agreed that the actions that had already been implemented to address the concerns, particularly the closing of the gate on Sierra Way at the Chula Vista Learning Charter School, had significantly improved the traffic conditions within the neighborhood. A second community meeting was held on October 1, 2003. Notices for the community meeting and this public hearing were sent 10 days prior to the date of the meeting to allow adequate time for residents to prepare for the meeting. In addition, based on concerns raised at the August 27 meeting staff increased the noticing boundaries from 500 feet to approximately 1000 feet to include more homeowners, particularly those north of K Street and east of the Chula Vista Learning Charter School. This increased the number of mailings from 89 to approximately 430. Two individuals a~tended the meeting where staff presented the Traffic Control Plan that had been implemented on September 19th, providing the residents the opportunity to assess the effectiveness of the Plan. In addition, staff addressed questions that had been posed at the previous meeting of August 27. At the conclusion of the meeting, one of the residents indicated PAGE 5, ITEM NO.: MEETING DATE: 10/14/03 addressed the majority of her concerns. The resident did inquire as to the status of a letter from the School District memorializing the agreement pertaining to the Traffic Control Plan. Staff has requested such letter and is awaiting a response. Precise Plan The Precise Plan for the project is designed to provide flexibility in the development of a project including reduced setbacks, open space design and specific parking standards, which is discussed further in the following sections. The Precise Plan guidelines are attached to the Precise Plan Ordinance (see Attachment 5} as Exhibit "B". Zone change Issue: Is a zone change really necessary? Response: The C-T zone in the CVMC does not allow mixed-used development. The request for a rezone from the current C-T-P zone to a C-C-P zoning designation would allow the proposed mixed-use project to be developed. The General Plan encourages mixed-use and residential development along Broadway. Additionally, the City Council has adopted a Broadway Revitalization Strategy that also promotes mixed-use development. Staff believes that the zone change is in keeping with the goals of the General Plan and the Redevelopment Plan, end will allow the proposed project to be developed, thereby, introducing a quality mixed-use protect that would improve the Broadway corridor. Traffic Issue: Existing traffic problem in the neighborhood surrounding the project. At the date of the previous public hearing the charter school was generating traffic that impacted the residential streets during the morning drop-off period and the afternoon pick-up period. This was in large part due to a gate located on Sierra Way that was open to the parents. In particular, the neighbors were concerned that the proposed projed would generate additional traffic that would compound the existing conditions. Response: Staff and the Chula Vista Elementary School Distrid met to discuss possible solutions. Traffic Engineering worked with the School District regarding the traffic generated by the charter school particularly on Sierra Way, Cedar Avenue, Date Avenue, Beech Avenue, East Park Lane, and Ash Avenue (see Attachment 3-Figure 1}. Parents and students had been using the school's service gate .located near Sierra Way (see Attachment 3-Figure 2), which has impacted the surrounding residences because parents parked their vehicles along these streets, and in some cases blocked or partially blocked private driveways during drop-off and pick-up periods. The School Distrid recently agreed to close the gate thereby restricting access. Typically, the City has not entered into a written agreement with the School District when similar plans have been implemented at other schools, and there have been no confirmed cases in which either party was in non-compliance. Nonetheless, a letter has been requested from the School Distrid memorializing this agreement, tn a previous community meeting, neighbors repoded to staff that since the school closed the gate the traffic problem along Sierra Way and the residential streets south of the school has significantly diminished. PAGE 6, ITEM NO.: MEETING DATE: 10/14/03 Engineering staff and the charter school developed a new traffic control system to distribute daily pick-up and drop-off periods belween K Street and the Broadway access points (see Attachment 3-Figure 3). The school has agreed to allow the use of a portion of the paved playground during the morning and afternoon peak hours as a turn around to allow parents to drop off and pick up their children from the Broadway access point. The school has also issued a notice to parents designating their drop off and pick up area. The concept is to distribute the school drop off and pick up traffic evenly between the two access points and avoid an over concentration of traffic on K Street or Broadway. The traffic control system has been implemented and is currently operating. Since the implementation of the traffic control system the flow of traffic has improved on K Street and the stacking of vehicles on Broadway has diminished. The project will generate an estimated 340 daily trips. Staff anticipates the majority of these trips will travel north and south along Broadway and a small number will travel east on Sierra Way and K Street. The traffic control system operating during the peak drop-off and pick-up periods, which is approximately 40 minutes each day, will allow the project residents to enter and exit the project site without hindrance. In summary, the gate at the Chula Vista Learning Charter School has been closed for drop off and pick up of students thereby significantly decreasing vehicular traffic on Sierra Way and a School Safety Patrol Division and Traffic Control Plan have been implemented, which include the following major components: a. Installing a new school crosswalk and marking "K' Street to include "SLOW SCHOOL ZONE" on both approaches to the new school crosswalk. b. Training for the School Patrol kids to safely implement the new crosswalk system c. The School District assigned drop off/pick-up locations for parents ~o better organize circulation from the Broadway access road. Parkinq Issue: The reduction of on-site residential parking from 1.5 to a .8 space per residential unit and the availability of adequate space for the retail portion of the projed. Response: The Chula Vista Municipal Code (CVMC) requires the project to provide designated parking for both the residential and retail uses. The CVMC requires 74 spaces (63 for residential parking and 11 for retail). The proposed Precise Plan for the subject site has been designed to allow deviations in development standards for the development of urban infill pnojects such as the MAAC Proiect senior development. The project is proposing a total of 45 spaces, a reduction of 29 spaces. The current parking standard for a one-bedroom apartment is 1.5 spaces and 2 spaces for two bedroom apartments. The residential portion of the proiect includes 41 one-bedroom units exclusively for senior citizens and one ~wo-bedroom unit for an apartment manager. Each unit will have one designated parking space, anticipated to be sufficient because of the income restrictions on the project. This results in 42 designated spaces for 42 units and 3 for retail use. PAGE 7, ITEM NO.: MEETING DATE: 1 0/14/03 Staff worked with the MAAC Project staff to revise the original residential parking ratios to be more consistent with the proposed use of the building and the surrounding area~ The revised parking standard includes 3 designated spaces for retail use. The retail component of the project is approximately 2,200 square feet of neighborhood ser,cing commercial. Therefore, it is anticipated that the residents of the project and the surrounding neighbors will be the primary customers of the retail uses. In addition, there is sufficient frontage along Broadway to provide for public parking spaces for the retail uses, which has a 2-hour limit per space (see Affachment 3-Figure 4). Staff has surveyed the available street parking on several occasions and has observed that the majority of spaces are always available. Staff believes that allowing the use of the 2-hour parking limit on Broadway is reasonable to satisfy the parking requirement for the retail portion of the project because the minimum size of the retail space will likely limit its use to Iow volume retail. Parking along Broadway is more easily accessible in contrast to the project's parking lot, which is located off the access road and screened by a landscaped wall. Parking along Broadway is typical for existing retail uses; therefore utilizing street parking for the retail portion of the project will be consistent with the existing retail uses along Broadway. Additionally, public transit is within a reasonable distance that services the site in 15-minute intervals. In response to concerns regarding the proposed amount of parking, staff also conducted a parking survey of existing Senior developments. The local apartment communities that were surveyed indicated that even though many of them have parking well below fhe 1:1 ratio they had more than adequate parking for their residents. Therefore, staff anticipates that the proposed parking ratio of 1:1 for the residential units should provide sufficier~t parking for the residents. # of Parking Senior Apartment Communities # of Units Spaces Parking Ratio CHULA VISTA Canterbury Court 207 143 .69 to 1 Congregational Tower 186 45 .24 to 1 Kiku Gardens 100 50 .5 to 1 Oak Terrace 36 28 .78 to 1 Park Fifth Avenue 48 40 '.83 to 1 Park Way West 13 7 .54 to 1 Rolling Hills Gardens 116 116 1 to 1 Town Centre 60 26 .43 to 1 Villa Serena 132 145 1.1 to 1 COUNTY Horton House 153 17 .11 to 1 Brookview 102 118 1.16 to 1 Tyler Court 75 55 .73 to 1 Redwood Villa 92 63 .68 to 1 /-'7 PAGE 8, ITEM NO.: MEETING DATE: 10/14/03 City Ratio Carlsbad .5 to 1 Encinitas .75 to 1 Escondido 1 to 1 Approval of the Precise Plan for the project would allow a reduction in the required parking from 74 to 45 spaces. The change to the parking ratios was implemented due to the limited amount of retail/commercial space, the amount of available street parking on Broadway, and comments received by the community concerning the need to increase on-site residential parking. The Precise Plan guidelines are attached, as Exhibit "B', to the Precise Plan Ordinance (see Attachment 5). Setback Reductions Issue: Building encroachments into the required setback standards. Response: The CC zone in the CVMC requires the project to have a 25-faot front setback. Approval of the Precise Plan would allow the building to have the reduced setback of six feet. This setback is consistent with other existing retail/commercial uses in the general vicinity of the project site and is consistent with the Redevelopment Plan. The proposed setback will not impact the public right-of-way. Included in this report is a cross section of the building as viewed from the public right-of-way (see Attachment 3-Figure 5}. The reduced front setback brings the project closer to the public sidewalk, and allows for easy access to the retail uses for pedestrians as well as motorists, typical in an urban setting. Balcony Overhanq Issue: Concern regarding the project's building encroachment into the required tront setback. Response: Approval of the Precise Plan would allow the building to maintain a 6-foot front setback as measured from the side of the 10-foot wide public sidewalk furthest from Broadway. The balcony overhang will project out approximately four feet from the face of'the building, but will be within the proposed 6-foot front setback and will not encroach within the public right of way (see Attachment 3-Figure 5). Therefore, there is two feet between the balcony and the public right of way. Open Space Reduction Issue: Reduction in the amount of open space. Response: The CVMC requires the residential component to provide 400 square feet of common open space per unit. In this case the proposed 42 units would be required to provide 16,800 square feet of open space. The project provides 6,100 square feet of total open space on-site, which includes a large courtyard, a community room, lounge area, a library and a recreation room. The project's unique 'U-shape' building design provides for an open space courtyard that is partially enclosed by the building's three sides and screened from Broadway. The courtyard faces the charter school's large playground, which the residents will have access to, PAGE 9, ITEM NO.: MEETING DATE: 10/14/03 thereby providing both private on-site open space and accessible off-site open space for the project's residents as provided in a written agreement between the Chula Vista Elementary School District and the MAAC Projed. Staff believes that this will provide adequate and accessible open space for the project residents. Limited Noticinq Area Issue: The neighbors questioned the method of circulating the public notice, stating that the range of sending notices to the other neighbors was not sufficient. Response: Originally, staff prepared a public notice for circulation of the Initial Study using a 500-foot radius, by combining the project site and existing Charter Schbol site property boundaries. Subsequently, staff used only the project site boundaries for publ!c noticing for the project's discretionary application. As a result, some of the property owners who received a notice for the initial study did not receive a notice for the discretionary applicatidn. In response to concerns raised, staff extended the noticing boundaries for this public hearing to include approximately 1000 feet, which increased the number of notices from 89 to approximately 430. Gtuality of Life Issue: The neighbors are concerned that the proiect will diminish their quality of life due to the placement of a mixed use proiect, which will include residential units, along B~'oadway amongst existing primarily non residential uses. Response: The project site is currently zoned to allow for a variety of retail andi commercial uses along Broadway. Staff believes that this project provides an opportunity for ~Jevelopment of a more vibrant yet compatible use for the site, which will have a minimal impact on the traffic within the area. Additionally, due to the current zoning of the site ond because~ the site is owned by the school district, significantly larger retail and commercial uses can be e~tablished that do not require any City discretionary approvals. These potential uses could potentially be incompatible with the surrounding neighborhood and may be potentially inconsistent with the goals for the revitalization of Broadway. FISCAL IMPACT The MAAC Project has requested direct financial assistance of approximately $300,000, or $7,317 per unit, from the City to close its financing gap of $1.7 million. Staff iis recommending that the City conditionally approve financial assistance, subject to future appropriation, in the form of a residual receipts loan in an amount not to exceed $300,000 to be financed through the City's Community Housing Development Organization (CHDO) Home Investment Partnership Program funds. The loan amount of $300,000 will be appropriated at the time of execution of the City Loan Agreement, Regulatory Agreement, Deed of Trust, and Promissory Note for the Communily Housing Development Organization Home Investment Partnership Program. Funds for staff services are budgeted in the staff services portion of the Housing Division budget. For additional information regarding the project financing see Attachment 2 Sections 8 through 10. PAGE 10, ITEM NO.: MEETINGI DATE: 10/14/03 ATTACHMENTS 1. Locator Map 2. June 10, 2003 Agenda Statement 3. Figure 1: Map of Impacted Streets Figure 2: Gate Location Figure 3: Map of Traffic Control System Figure 4: Parking on Broadway Figure 5: Building/Balcony Setback 4. May 14, 2003 Planning Commission Minutes Planning Commission Resolution for Rezone Planning Commission Resolution for Negative Declaration and Precise Plan 5. Ordinance adopting the Negative Declaration and amending the zoningi map 6. Ordinance approving the Precise Plan 7. Redevelopment Agency Resolution approving the mixed-use project and entering into an OPA 8. City Council Resolution conditionally approving financial assistance J:\COMMDEV~STAFF.REP~I 0-14-03\MAAC Project.doc ATTACHMENT 1 CHULA VISTA PLANNING AND BUILDING DEIPARTMENT LOCATOR PROJECT  APPL,CANT: MAAC PROJECT MISCELLANEOUS PROJECT Request: Proposal for a Preci~I Plan for a mixed use A~DRESS: 825-841 BROADWAY project consisting of 2,220 square feet units for senior SCALE: FILE NUMBER: citizens. NORTH No Scale PCM-03-21 Related Case(s): SUPS-03-05 I j:\home\plan ning\cherrylc\locators\pcm0321 .cdr 01.22.03 ATTACHMENT 2 PAGE 1, Iq 'rd~ NO.: MEETI! IG DATE: 06/10/03 JOINT REDEVELOPMENT AGENCY / CITY COUllCIL AGENDA STATEMENT : ITEM TITLE: PUBLIC HEARING TO CONSIDER (A) A PARCEL RE.tONE FROM THE THOROUGHFARE COMMERCIAL PRECISE PLAN (C-T-I') ZONE TO THE CENTRAL COMMERCIAL PRECISE PLAN (C-C-P) ZONE J ND A (B) PRECISE PLAN (PCM-03-21) TO ALLOW FOR A MIXED-USIi PROJECT THAT INCLUDES: (1) 41 APARTMENTS AFFORDABLE TO VliRY LOW-INCOME SENIOR CITIZENS WITH ASSOCIATED SUPPORT SERVICES; (2) ONE MANAGER'S APARTMENT; (3) 2,219 SQUARE FEET OF R .:TAIL SPACE; AND (4) REDUCTIONS IN SETBACKS, PARKING AND OPEN SF ACE LOCATED 825 BROADWAY TO BE DEVELOPED BY THE METROPOLITA! I AREA ADVISORY COMMITTEE (MAAC) PROJECT. cz. ORDINANCE OF THE CITY COUNCIL OF THE CITY iOF CHULA VISTA ADOPTING THE NEGATIVE DECLARATION (IS-03-008) AND AMENDING THE ZONING MAP ESTABLISHED BY S :CTION 19.18.010 OF THE MUNICIPAL CODE REZONING A 1-ACRE P,G I~CEL LOCATED AT 825 BROADWAY FROM THE C-T-P (THOROUGHF,~ RE COMMERCIAL, PRECISE PLAN) ZONE TO THE C-C-P (CENTRAL COMMERCIAL, PRECISE PLAN) ZONE b. ORDINANCE OF THE CITY COUNCIL OF THE CITY IOF CHULA VISTA APPROVING PRECISE PLAN (PCM-03-21) FOE A MIXED-USE RESIDENTIAL AND RETAIL DEVELOPMENT LDCATED AT 825 BROADWAY WITHIN THE SOUTHWEST REDEVEL(~PMENT PROJECT AREA c. RESOLUTION OF THE REDEVELOPMENT AGENCY ~F THE CITY OF CHULA VISTA APPROVING THE MIXED-USE PROJECt' AND ENTERING INTO AN OWNER\TENANT PARTICIPATION AGREEMENT WITH THE CHULA VISTA ELEMENTARY SCHOOL DISTRICT AND TI' E METROPOLITAN AREA ADVISORY COMMITTEE FOR THE CONSTRUCTIOI~ OF A MIXED-USE RESIDENTIAL AND RETAIL DEVELOPMENT AT 825 Bl~ OADWAY WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA d. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CONDITIONALLY APPROVING FINANCIAL ASSISTAIICE, SUBJECT TO FUTURE APPROPRIATION, IN THE FORM OF A RESIDUAL RECEIPTS LOAN FROM HOME FUNDS IN AN AMOUNT NOT-TO-EXCEED $300,000 TO THE METROPOLITAN AREA ADVIS~DRY COMMITTEE (MAAC) PROJECT FOR THE DEVELOPMENT OF THE PROPOSED 42 UNIT PROJECT LOCATED AT 825 BROADWAY SUBMITTED BY= COMMUNITY DEVELOPMENT DIRECTOR PLANNING AND BUILDING DIRECTOR REVIEWED BY: EXECUTIVE DIRECTOR PAGE 2, I1 EM NO.: MEETIIql G DATE: 06/10/03 BACKGROUND j The Metropolitan Area Advisory Committee (MAAC) Project is a not-for-prj)fit social service agency that specializes in the development of housing for Iow-income individjJals and families. MAAC Project is proposing a mixed-use project on a 1-acre site located at 825-841 Broadway. The site is located directly to the west of the existing Chula Vista Learning CSmmunity Charter School, on the corner of Sierra and Broadway. The site is being leased fro.rh the Chula Vista Elementary School District for a term of 75 years. The project, commonly known as Seniors on Broadway, ("Project") wilt includei41 one-bedroom units affordable to very-low income seniors and 1 two-bedroom manager's unik The community space (6,100 sq. ft.) and retail (2,200 sq. ft.) portions of the Project's ground fjoor will comprise approximately 8,300 square feet of the building's total 40,000 square feet. ~he lessees for the commercial/retail space have yet to be identified. The Project has been designed in cooperation with the Chula Vista Elementary chool District and the Chula Vista Learning Charier School with the purpose of implementing an intergenerational exchange program. Ground floor community space including a community oom, library and service kitchen will provide the facilities to operate "Generations Together," a program to cultivate the intergenerational exchange of experience between the senior esidents and the students of the adjacent Charter School. Examples of activities that will be j provided include culinary arts, arts and crafts, computer technology and graphic arts training. Pursuant to the California Environmental Quality Act (CEQA), a Negative Deciaration has been prepared for the proposal. During the public review and comment period for ~e draft Negative Declaration, a comment letter was received from a member of the public, which will be further discussed under the Community Response section of the staff report. The cc'nment letter and staff's written responses are provided in Attachment 3. RECOMMENDATION That the City Council and Redevelopment Agency take the following actions: a) Adopt the City Council Ordinance adopting the Negative Declan~tion and Precise Plan; b) Adopt the City Council Ordinance amending the zoning map; c) Adopt the Redevelopment Agency resolution approving the mixed-u~e project and the Owner/Tenant Participation Agreement with the Chula Vista Elementcbry School District and the MAAC Project; ~ d) Approve the City Council resolution conditionally approving finandial assistance for the 41 affordable senior units PAGE 3, I~EM NO.: MEETII~G DATE: 06/10/03 BOARDS/COMMISSIONS RECOMMENDATION The Housing Advisory Commission reviewed and recommended approval of ~he MAAC Project development and financial assistance for the Project on February 26, 2003 jand on April 23, 2003 respectively. Following extensive discussion of the adequacy of the proposed off-street par~ing, the Resource Conservation Commission recommended adoption of the Negative Declarationlon April 7, 2003. The Design Review Committee provided comments at two informal revie+s of the Projed conducted on November 18, 2002 and March 3, 2003. The DRC recommended approval of the Project on April 21,2003. The Planning Commission recommended approval of the Project on May 14, 2(~03. DISCUSSION The project site is located at 825 Broadway between Sierra Way and 'K' Stre, and is currently vacant. The site is owned by the Chula Vista Elementary School District and adjacent to the Chub Vista Charter School's recreation field. The project is a combined Rezon and Precise Plan proposal for an urban in-fill mixed-use project that will be developed by the/¢ ~,AC Project. The proposed project is one of two mixed-use projects currently proposed along Bra ~dway. The other mixed-use project is proposed to be located at 760 Broadway and would be comprised of 40 lane homes and nine loft apartments above retail/commercial uses. The project requires a Precise Plan in order to develop a fundional mixed-us~, development on the 1 -acre properly. The projed will provide affordable housing for senior citiz ;ns and introduce new commercial/retail uses that could potentially compliment the existing uses in the area. The Precise Plan will allow flexibility of the development standards that would enabl; the developer to develop the lot. The rezone from the C-T-P zone to the C-C-P zone is nece ;sary because the latter zone allows for mixed-use development. 1. COMMUNITY RESPONSE During the public review and comment period for the draft Negative Declanltion, a comment letter was received from o member of the public, which raised concerns relate d to traffic at the Chula Vista Learning Community Charter School and a variety of other issues. In response, staff requested that members of the City of Chula Vista Police Department School Resource division monitor the school during the morning drop-off period. On two separate occasions, three officers were sent to the site to monitor the traffic, during which some traffic con estion was noted on Sierra Way but no other significant issues were found In addition, staff received phone calls from the public regarding issues related traffic, parking and design. In padicular, one member of the public was concerned that they h~d received notice regarding the community meeting and the draft negative declaration but ~ot the Planning T PAGE 4, I1 EM NO.: MEETII~ G DATE: 06/10/03 Commission public hearing. Staff researched this issue, and it was determine J that the mailing list that was prepared for the community meeting and draft Negative Declarction had included an expanded area that extended beyond the legally required 500 foot radiu~ The mailing that occurred for the Planning Commission hearing only included the statutorily rec ired properties. Therefore, in order to clarifi/ the notice issue and provide the affected resid ~ts with adequate time and opportunity to review the details of the Project, staff held a communit ~ meeting on May 29 that was attended by 8 neighborhood residents, including the individual ~/ho submitted the environmental comment letter. Additionally, the public hearing was postpone~ from the June 3 Redevelopment Agency/City Council meeting to June 10. The residents are stil concerned about the development and its impact on their homes, but as a result of the May 2~; meeting have a better understanding of the Projed. 2. SITE CHARACTERISTICS Seniors on Broadway is bordered by K Street to the north, Sierra Way to the S~ ~th, Broadway to the west and the Chula Vista Charter School to the east. The properly is currEntly undeveloped, and the surrounding area is commercial and residential. 3. GENERAL PLAN~ ZONING~ AND LAND USE General Plan Zoning Current Land Use Site: Retail C-T-P Vacant North: Retail C-T Courtney Tires/Furr iture Store South: Retail C-T Mortuary East: Retail C-T-P Charter School 4. PROJECT DESCRIPTION The Project will be developed on a 1-acre site within the City's Southwest Red.~velopment Area. The Proje, ct includes: (1) 41 affordable to Iow-income apartments for senior citizens; (2} one manager s apartment; (3) 2,219 square feet of retail space; (4) 6,100 square eet of community and common open space on-site; (5) a Social Services annex; and (6) 45 on-sit e parking spaces. Additional parking spaces will be located on Broadway to provide parking for he patrons of the retail uses. Seniors on Broadway will have direct access from Broadway by a d iveway located at the north end of the Project site. The Proiect has been designed as a three-story 'U' shape building with ret ~il/commercial at ground level and residential on the second and third levels. The parking are~ is adjacent and north of the building, and is screened from view along Broadway by an architecturally designed wall that will connect the social services kiosk at the northwest corner of thel site to the main building. ~ Each apa, rtment will have a floor area of 534 square feet and will include ore bedroom. The managers apartment will have a floor area of 814 square feet with ~wo bedrooms. The PAGE 5, I1 EM NO.: MEETII~ G DATE: 06/10/03 apartments will be located above the retail/commercial uses and will r~ach a height of approximately 35 feet. The Project will provide 6,100 square feet of on-site open space. The open space includes a large courlyard, community room, lounge area, and lib ~ary. The Charter School's recreation field will provide additional off-site open space for u~e by the Project residents. The proposed social services annex will provide services and prog rams to assist the on-site residents. Other on-site improvements include landscaping, lighting, :lrainage facilities and paved parking. 5. DEVELOPMENT STANDARDS The proposed C-C-P zone would allow mixed-use projects when the resider rial developments meet the R-3 zone development standards identified in the following table: Minimum Standards (C-C Zone) Required Proposed Front Yard Setback 25 feet Retail-Apt: 5 feet* Ext. Side Yard Setback None None Rear Yard Setback: None None Height: 45 feet Retail-Apt: 35 feet Parking (off-street)**: 74 spaces 45 On-site* Minimum Standards (R-3 Zone) Required Proposed Front Yard Setback 15 feet Apartments: 6 feet (i~ cl. balconies)* Side Yard Setbacks 17 feet Apartments: 5 feet* Rear Yard Setback 15 feet Apartments: 6 feet* Height 28 feet Apartments: 35.5 fe~ Parking 63 spaces Apartments: 35 spac ;s* *Requested flexibility from the CC and R-3 zones per Sections 19.56.040 and 19.56.041 of the ¢ VMC. ** Requested flexibility from Section 19.58.205(D), independent residential/commercial parking, pe Sections 19.56.040 and 041of the CVMC. 6. ANALYSIS The Project has been evaluated in accordance with the Chula Vista Design Mc nual (CVDM), the Zoning Ordinance and the applicable provisions of the General Plan. ~ he General Plan (Chapter 10 Section 5.9) states that medium to high density residential develop 'nent is potentially desirable along certain sections of Broadway. The General Plan states that mixed-use development should consider access, appropriate setbacks and screening fi om any adjacent non-compatible uses, and that implementation of this policy should consider a special zone or land use overlay that would establish specific development criteria for project design. Staff believes the project as described is consistent with the General Plan, howev;r as designed to maximize the use of the site with a functional mixed-use project is deficie ~t in meeting the setback, residential parking and open space requirements of the Zoning Ordinc nce. City Council T PAGE 6, ri EM NO.: MEETII~ G DATE: 06/10/03 approval of the approval of the Precise Plan will allow the Project to deviat~ from the Zoning Ordinance development standards. Rezone The proposed rezone from the C-T-P zone to the C-C-P zone is requested by he developer and property owner because the C-C- P zone allows mixed-use development while the C-T-P zone does not. Both zones are consistent with the General Plan Land Use Element which designates this area retail commercial. The CC zone will contribute to the public conven ence and general welfare by fudher assisting the City's efforts to satisfy the goals and objectives of Redevelopment Agency and Chapter 10, Section 5.9, of the General Plan. Precise Plan Section 19.56.041(B) states that the property or area to which the P modifying district is applied, is adjacent and contiguous to a zone allowing different uses, and the developr ~ent of the Precise Plan will allow the area designated to coexist between land uses which migl~t otherwise prove incompatible. The zones surrounding the site include Thoroughfare Comm,;rcial (C-T) to the north and south, which allows a variety of retail and commercial uses, ~nd Thoroughfare Commercial, Precise Plan (C-T-P) to the east, which is the Chula Vista Chart~ School. Single- family dwellings are further to the east. The site is requested to be zoned Central Commercial with a Precise Plan mo tier (C-C-P), it is also subject to the development standards of the C-C and R-3 zone because the Project is a mixed-use retail/commercial and residential development. The existing development standards limit the developer's potential to maximize the use of the site with the Projec~ The project has been designed with a high density residential concept with building encro~chments into the required setbacks, reduced common open space, reduced on-site parking spaces, and the incorporation of a combined residential and retail parking area. These deviati ~ns are warranted given the constraints to the site and the intent to develop the site with a functior al use to meet the policies of the General Plan. The mixed-use project's site design allows the proposed uses to function ~hesively with the surrounding uses, while visually and economically enhancing the area *nd promoting a beneficial development for the general welfare of the citizens in the area ,d the City. The Precise Plan can allow the Project to deviate from the development standar Js in an effort to develop the site with a feasible mixed-use Project. BuildJn.q Setbacks Without the Precise Plan the Project will be subject to the proposed C-C zone 25-foot front yard setback requirement. The Project proposes a building setback of 6 feet fro ~t from the public right-of-way along Broadway. The balconies for the apartments facing B'oadway will also encroach into this setback. The Project does not meet the building setback sta ~dards because of the size of the site and the proposed site design, which is intended to characterize an urban mixed-use development. However, the Project's proposed front yard setbac is similar to the setbacks of other retail/commercial buildings along Broadway, and would be keeping with the General Plan goals of creating a more intensive urban environment alor Broadway. The ¥ T PAGE 7, I1 'EM NO.: MEETIF IG DATE: 06/10/03 Precise Plan can allow for the reduction in the setback standards. Parking The site will contain residential and retail uses that have specific parking requin ~ments as noted in the Development Standards Table above. Based on the residential uses and retail/commercial square footage, the CVMC requires 74 parking spaces for the Project. AdGitionally, the code requires that residential and retail parking need to be independent. However, the lot size and project design limits the project's ability to satisfy the number of parking sp~ces and separate residential and retail parking requirements on-site. The Precise Plan woJId allow for the reduction of on-site parking. The Project proposes a total of 45 parking spaces on-site. Approximately 34 spaces will be for residential use, and the remaining 11 spaces will be for retail/commercial park ng for the proiect. Additional on-street parking will be available along Broadway and Sierra Way. The curbside parking is limited to 2-hour parking and can be used for loading, patron,, and residents or guests. The developer's request for a reduction in the parking standards from · he required 1.5 to .5 per residential unit is necessitated by the lot size, the project's design, other on-site requirements (trash enclosures, open space) and the mixed-use nature of the project. Additionally, there is a bus line that services the site in 15-minute intervals. Parl :lng for the Project is shown in the table below. MAAC Seniors on Broadway Parking Table Parking Type Parking Project Proposed i Additional Standard Requirement ~ )n-street parking Retail/Commercial 1:200 sq.ft. 11 11 .~-Shared* Residential 1.5:1 du 63 21 (.5:1 du) ?-Shared* Supplemental N/A N/A 13 .~-Shared* Residential · Based on the 288 linear foot distance of the property along Broadway and typical standard cure ~ide parking spaces. The strict application of the City's parking standards would make the proposed Project infeasible. The City has approved other mixed-use projects including Main Plaza which re uired a reduction in parking standards. To determine whether the proposed parking reduction was reasonable i this case, staff contacted h,,,o other cities in San Diego County, with similar urban characteris cs, regarding the parking standards for senior housing developments. The City of La Mesa evcluates parking for senior projects on a case-by-case basis. A development of 129 units was a ~proved with a .4 parking space per unit, and another project of 81 units was approved using a .5 space per unit. The City of El Calan uses a .5 space per unit standard for all senior and disab ed developments. Although the developments illustrated above were strictly senior housing deve apments, and not necessarily mixed-use projeds, they provide a standard for what other local jurisdictions have determined to be acceptable. Since neither city indicated that they were expe'iencing problems with the .5 space per unit ratio for senior housing projects, staff recommende J that standard to the Planning Commission, and the Commission voted to forward that stand~rd to Council for PAGE 8, I1 'EM NO.: MEETII~ IG DATE: 06/10/03 adoption as part of the precise plan. Although, the City has not previously oF proved affordable housing developments with this level of reduced parking, based upon the ircome level of the residents, the availability of public transportation, availability of a shuttle prov ded by the MAAC Proiect, the limited amount of retail/commercial space, and the limited size the development site staff supports the proposed parking ratio. Common Open Space The Project will provide approximately 6,100 square feet of common open s ce on-site for the residents. The open space consists an open landscaped courtyard, library, car ~munity room and lounges. Without the Precise Plan, the residential component of the mixed-us,~ project is subject to the R-3 zone development standards. In this case, the common open sp~ce requirement is 400 square feet per unit (400 s.f. x 42 units -- 16,800 s.f.), therefore; the Pro ect does not meet the common open space standard. However, the Precise Plan can allow for x ariations from the common open space standard. Staff is recommending approval of the var ation in the open space standard for the three related reasons: 1) The restrictions on occupanc~ of this Project to very-low income seniors; 2) the amenities provided that are geared to~ard the intended residents; and 3) the availability of adjacent school grounds during non-school hours. The Chula Vista Elementary School District and developer have entered into a written agrEement stating that the residents can use the Charter School's activity field adjacent to the ojed for outdoor activities. 7. AFFORDABILITY The developer is proposing to pursue tax credit financing to fund a portion of is Project. For tax credit financing, Section 142 of the Internal Revenue Services Code, requ Ds a minimum of twenty percent of the rental units in the Project to be available for occupa~,cy by persons or families whose income does not exceed 50 percent of the median income ar the San Diego Primary Metropolitan Statistical Area, or alternatively, at least 40 percent of ~e rental units are required to be available for occupancy by persons or families whose income, ~es not exceed 60 percent of the Area Median Income (AMI) for the Area. In each case, the uni are to be made available at affordable rents established by the applicable State law. It is proposed that all 41 units will be affordable to and restricted for occup ~cy by very Iow- income senior households of 62 years and older. Therefore, 21 units will be affordable to very Iow-income occupants at 50 percent of AMI, (currently $31,900 a year for a f ~mily of four) and the remaining 20 units will be available to very Iow-income households at 4 ~ percent of AMI, (currently $28,700 a year for a family of four). The restricted rents will be ~ased upon HUD income limits established for the current fiscal year. 45% 20 $507 $691 $121,680 50% 21 $576 $691 $145,152 Manager's Unit 1 $676 $877 $8,112 PAGE 9, I1 EM NO.: MEETII~ G DATE: 06/10/03 It is proposed that the income, rent, and age restrictions for the Seni~)rs on Broadway development will be maintained for a period not less than fifty-five years, as is required by the State Tax Allocation Committee (TCAC). The income and rent restrictions outlined above are to be incorporated into the Regulatory and Loan Agreements for both the tax c~edits and the City Loan, which will be recorded against the property. The affordable housing car ~mitment will bind all subsequent owners of Seniors on Broadway, so that the commitment remains in force regardless of ownership, except in limited circumstances following a default , nd foreclosure on the Project. The Regulatory Agreement between the Housing Authority and the develope for the tax credit financing will restrict 100 percent of the units, excepting the manager's init, (41units) for occupancy by very Iow-income households at 50 percent or less of AMI. The 'estriction of these units will be allocated through the 107 remaining units per Proposition C, wh ch authorized the development, construction and acquisition of 400 units of housing for perscns of Iow-income (Article XXXIV of the State Constitution). The Tax Credit financing will also requi 'e an independent regulatory agreement restricting units for occupancy by very Iow-income housel Jolds and will also require a regulatory audit and annual tax credit certification. Compliance ~4th strict property management policies and procedures will also ensure that income and rent 'estridions will be maintained for the full 55-year compliance period. 8. PROPOSED FINANCING OF PROJECT Financing and development of this Project is a joint private-public partnership, rhe developer will be using Low Income Housing Tax Credit financing to suppod the majority of t~e estimated $5.5 million cost of constructing the Project. MAAC Project will apply for approximat ~ly $3.8 million in Low Income Housing Tax Credits. This will cover approximately 69 percent of the total development costs. With rents restricted to 45 and 50 percent of the Area Median Income (AMI) or a period of 55 years, the net operating income is insufficient to support a loan large enough ~ cover the project costs. Therefore, there remains a financing gap of approximately $1.7million. It is proposed that the remaining financing gap of $1.7million will be met by a combination of developer equity, State Affordable Housing Program funds, private funds, and City assistance. 'he developer has committed to deferring 4 percent of their fee as the developer of the Pre ect for a total of $22,955. The MAAC Project has requested direct financial assistance of approxima ,qy $300,000, or $7,317 per unit, from the City to close this financing gap. Staff is recommer ding that the City conditionally approve financial assistance, subject to future appropriation, n the form of a residual receipts loan in an amount not to exceed $300,000 to be financed hrough the City's Community Housing Development Organization (CHDO) Home Investment Pa'tnership Program funds. Every year the City receives funds that must be used solely by a 'cerified" Community Housing Development Organization (CHDO). This year the City released a Rec uest for Proposals for $500,000 in CHDO funds. The MAAC Project was the only organization to 'espond. PAGE 10, I1 EM NO.: MEETII~ G DATE: 06/10/03 Cost Funds Financing Gap Project Cost: $ 5,461,594 Sources of Funds: Tax Credit Financing $ 3,796,229 Permanent Loan $ 1,142,410 Affordable Housing Program $ 200,000 Subtotal $ 5,138,639 $ 322,955 Subsidies: Developer Deferred Fee $ 22,955 City Subsidy (HOME) $ 300,000 Subtotal $ 322,955 TOTAL $ 5,461,594 $ 5,461,594 $ Cost per Unit (41Units) $ 133,210 City Subsidy per Unit $ 7,317 City Leverage $18 to $1 Project Development Costs Development costs are one of the key variables determining the need fo' subsidies. It is important that those costs be reasonable. At a total project cost of approxirr afely $5.5 million including land, the average residential unit cost of approximately $133,21 is consistent with typical affordable new construdion for smaller senior developments. Subsidy Analysis The degree of leveraging of City Housing funds is an important factor wk :h staff takes into account in the evaluation of affordable housing proposals. In evaluating a proposal, staff reviews the developer's track record, success in securing public and private financing, ability to complete projects on time and on budget and demonstrated ability to highly le/erage City funds. The MAAC Project has successfully demonstrated these qualities in other previously developed affordable housing projects including the Laurel Tree Apartments in Carlsbad, the San Martin de Porres housing development in San Diego, and the award winning Mercad~ Project in Barrio Logan. In most cases staff has been using a minimum of 5 to 1 ratio as a general leve~ ~ging standard of City funds, which encourages developers to be more competitive and creative. The proposed City's assistance to this Project equates to an average of $7,317 per unit and :mounts to a very high leveraging of $18 in private funds for every $1 of City funds. Form of Assistance City assistance will be provided in the form of a residual receipts loan secure by a promissory note and deed of trust. Repayment of the loan will be deferred during consh ~ction. Once the City has issued a certificate of occupancy for all the units, the outstanding pril~cipal and interest PAGE 11, 11 EM NO.: MEETII~ G DATE: 06/10/03 on the loan will be amortized over fifty-five years. The outstanding balance shall accrue with simple interest at 3 percent per annum. Payment of principal and interest, or p ~rtions thereof, on the City loan shall be made on an annual basis, out of a fund equal to fifty (5)%) percent of the net cash flow of the Project after debt service on bonds, payment of deferred eveloper fee, and reasonable operating expenses have been paid (Residual Receipts). 9. DEVELOPMENT RISKS In its role as lender to the Project, the City is exposed to three risks inhe ~nt to real estate development. These risks generally include: 1) Predevelopment-proiect does not get to construction, 2) Construction-proiect cannot be completed, cost overruns, co,~tractor problems, and 3) Operation-revenues do not cover expenses. Adding to these risks, t ~e City's financial assistance will be subordinated to conventional financing. While the City is vc Inerable and may face the loss of its loan due to its subordinated financing, subordination is nece ;sary to attract the private financing for the majority of the development costs. A number of factors mitigate these risks. First, the development team has sig~,ificant experience and an excellent track record. The presence of other maior financial commitr ~ents, such as the tax credit investments, means that other stakeholders depend on the short and long-term success of the project. By its nature, affordable housing presents some, but very li"nited market risk because of the deeply discounted rents. There is significant demand for ti'ese units and the vacancy rate is Iow. The revenue base is very reliable. The operating costs of the Project are standard. Should problems occur, the City will be involved with the Develope' to assure proper handling. 10. CONDITIONS OF FUNDING It is recommended that funding for Seniors on Broadway be conditional as folio ~/s: 1. Approval of other Funding: Developer must secure all other funding nec,~ssary to fund the Project. 2. Maximum Funding Level: The City assistance is based upon information pr esented within the Affordable Housing Review Application for the Project as submitted by the/x LAAC Project. It is expected that any substantive revisions in the financing assumptions, which would lead to an increase in other resources available, would therefore reduce the level of Ci assistance. The City assistance is a maximum level of participation. 3. Environmental Review and Land Use Approvals: All necessary review and ~rovals must be obtained. 4. Property Management: Developer must select a qualified property mc ~agement firm to manage the Project. 5. Successful negotiation of an agreement with the City, which includes, amon other things, the following: PAGE 12, Ir'EM NO.: MEETI! IG DATE: 06/10/03 a) Funds shall be used only for those costs directly related to the resi~lential units of the Project. b) The loan repayment will be secured by a Deed of Trust and Prom ssory note for the properly on behalf of the City of Chula Vista and recorded ainst the Project properly. c) The term of the loan shall be fifty-five (55) years. d) The outstanding balance shall accrue with simple interest at 3 perc~ ~er annum. e) Payment of principal and interest on the City loan shall be made, o ~ an annual basis, out of a fund equal to fifty percent (50%) of the "Residual Receipts", r ~ntal income from the Project minus debt service on the bonds, payment of the defer'ed developer fee, and reasonable operating expenses. f) Developer will be required to operate the Project consistent with the Regulatory Agreement required by the Proiect's tax credit financing, the covena~ ~ts imposed by the Agreement, and any other project requirements. g) Developer shall enter into a loan agreement with the City consistent with the terms set forth above and with such other terms as shall be required or apl,roved by the City Attorney. h) This conditional approval remains subject to final approval by ~e City in its sole discretion. 1 1. ENVIRONMENTAL IMPACT The Environmental Review Coordinator has reviewed the Seniors on Brr ~dway Project for compliance with the California Environmental Quality Act and has conducted ~n Initial Study, IS- 03-008 in accordance with the California Environmental Quality Act. Based pon the results of the initial study, the Environmental Review Coordinator has determined that there is no substantial evidence, in light of the whole record before the City of Chula Vis' a, that the Project may have a significant effect on the environment; therefore, the Environmental Review Coordinator has prepared a Negative Declaration, IS-03-008. 1 2. CONCLUSION The mixed-use Project is a unique urban-infill project that introduces new ret~il and affordable residential uses along Broadway. The Project's design and intent to maximize the use of the site with a functional development precludes the Project from meeting the develop ~ent standards in the C-C zone. However, due to the type and design of the project staff is recommending approval of the deviations requested through the Precise Plan. Staff believes float the Project will enhance the area and potentially become a model for architectural lesign for future PAGE 13, Il ~EM NO.: MEETIF IG DATE: 06/10/03 development. Staff recommends that the City Council adopt the Negativ~ Declaration and approve the Rezone and Precise Plan. Staff also recommends that the City Council approve the resolution condi ionally approving financial assistance, subject to future appropriation, in an amount not-to-exce~d $300,000 from the City's HOME funds. Staff's recommendation is based upon the following: · The proposal's effectiveness in serving the City's housing needs and priorities as expressed in the Housing Element of the General Plan and the HUD Consolidated Plan. · The intent of the City to attempt to provide affordable housing opportuni'ies to households earning at or below 50% of AMI in order to receive future credits as outlir ed in the Housing Element of the General Plan. FISCAL IMPACT The loan amount of $300,000 will be appropriated at the time of executior of the City Loan Agreement, Regulatory Agreement, Deed of Trust, and Promissory Note k the Community Housing Development Organization Home Investment Partnership Program Funds for staff services c~re budgeted in the staff services portion of the Housing Division budg~ ATTAC HME NTS 1. LocatorMap 2. Negative Declaration 3. Comment Letter on Negative Declaration IS-03-008 and Staff Response LetJ er J:\COMMDEV~STAFF.REP\O6-10-03\MAAC Project Seniors on Broadway.doc -13 ATTACHMENT 3 TMPACTED STREET MAP (TMPACI'ED b ~ KEETS I'N YELLOW) /~ ~ ~' [ FZGURE I ATTACHMENT 3 CLOSED GATE LOCA'rIoN /~ ~ -o,~, F].GURE 2 ATTACHMENT 3 TRAFFZC CONTROL SYSTEM ~,~ .-~ -.-~ FZGURE 3 ATTACHMENT 3 PARKZNG ON BROADWAY ,'~ '~ - FIGURE 4 A ATTACHMENT 3 BUZLDZNG/BALCONY SETB CK BROADWAY ,SIDEWALK BALCONY OVERHANG ALONG PROPERTY UNE / C"~U~,VoI~STcrA SENIOR "OUSI.No~D~cu~IJ~ AUGUST ~ ~ -~ FXGURE ATTACHMENT 4 Planning Commission Minutes - 11 May 14, 2003 5. PUBLIC HEARING: Negative Declaration (IS 03-08); Rezone (F CZ 03-02) from the Thoroughfare Commercial, Precise Pla n (CTP) zone to the Central Commercial Precise Plan (C~P) zone; and Precise Plan (PCM 03-21) to allow for a mi: :es-use project that includes: 1) 41 apartments affordable to Iow income senior citizens with associated support s .~rvices; 2) one manager's apartment; 3) 2,219 sf of retsi space; and 4) reductions in setbacks, parking and ope n space. The project site is located at 825 Broadway. De' ~eloper: MAAC. Commissioner Hall stepped down from the dais and left the me~;ting as he had another commitment to attend. Background: The proposal is to develop a project on a l-acre sit,; surrounded by commercial uses and located within the City Southwest Redevelop ~ent Area. The project includes 41 affordable apartments for senior citizens, one manager's apartment, 2,219 sf of retail space, 6,100 sf of community and com~r~on open space on-site, a social services kiosk, and 45 on-site parking spaces wilh additional on- street parking spaces along Broadway and Sierra Way for patrons ¢ f the retail uses. The project has been designed as a three story "U" shape building with retail at ground level and residential on the second and third levels. Based on the square footage of the project, the CVMC requires 74 p; ~rking spaces for the project. The project proposes a total of 45 parking spaces with ~ pproximately 34 spaces designated for residential use, and the remaining 11 spaces :or supplemental parking for the project and additional on-street parking along Broad,way and Sierra Way. Staff Recommendation: That the Planning Commission recommE~nds adoption of the ordinance for a Rezone and recommends adoption of the Neg~ tive Declaration and Precise Plan Ordinance based on the findings and conditions ~ntained therein for the mixed-use project. Commission Discussion: Commissioner Cortes asked for clarification on the calcula' ins for parking requirements. John Schmitz, Principal Planner stated that both Planning ~nd Community Development staff did research to find out what is a typical parking ~quirement for a senior project such as this. Their research found that half a space per unit is a fair standard because for a variety of reasons, not everybody will have a zehicle. The fact ATTACHMENT 4 Planning Commission Minutes - 12 - May 14, 2003 that this is an age-restricted project on a street that is served by put Ilo transit and in close proximity with other services in the area, staff was willin to recommend approval of the parking reduction. Public Hearing Opened 9:40. Lee Bates, 22 W. 35th Street, National City, CA, Project Manag r for the MAAC Project addressed the eligibility issue and stated that in California ~ Senior can be defined as a person 55 years or older. In larger scale proje~;ts the 55 year requirement is most prevalent, however, because this is a small-scale project, in comparison, the requirement will be 62 years of age or older. They are pursuing affordable housing financing through a federal pr~ ,gram called 202 Elderly Housing and the other is a 9% tax credit administered by th State. Cmr. Castaned,a inquired what means would be used to identify r, ;ident eligibility and if the project s eligibility can be restricted to Chula Vista resident He also asked about the kiosk use. Mr. Bates stated that they have to abide by strict Fair Housing Law.~ 3nd because of the tremendous waiting lists that usually develop with projects su as this, most likely they would determine to do a lottery off of a waiting list. Secondly, as previously stated, because the majority of the financin for the project is coming from Federal and State funding, under the Federal statute the eligibility for the units and the way to access those units is based on Fair Hou= lng Laws, which require that the units be availability to the general public on a first-~ome-first-serve basis. Mr. Schmitz stated that the kiosk is an annex of the building and it is to provide social services strictly to residents of the building. Public Hearing closed 9:55. Notwithstanding the Commission's disappointment that eligibility cai Inot be restricted solely to Chula Vista residents, the consensus was that overall the ~roject uses and density are suitable for this area, is in line with the vision et forth for the redevelopment of this area, and will provide a valuable service to le community. MSC (CortaslFelber) (4-0-0-3) that the Planning Commissio~ recommends adoption of the ordinance for a Rezone and recommends ~ dopfion of the Negative Declaration and Precise Plan Ordinance based on tl~e findings and conditions contained therein for the mixed-use project. Motio carried ATTACHMENT 4 RESOLUTION NO. PCZ 03-02 RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CHULA VISTA RECOMMEDING THAT THE ~ITY COUNCIL APPROVE A REZONE (PCZ-03-02) OF A ONE ACRE PARCEL FROM THOROUGHFARE COMMERI IAL, PRECISE PLAN (C-T-P) TO CENTRAL COMMER('IAL, PRECISE PLAN (C-C-P) LOCATED AT 825 BROADWAY. WHEREAS, a duly verified application for a Rezone was filed on July 3 l, 2002, with the City of Chula Vista Planning Department by the Metropolitan Area Advi sow Committee (MAAC) "Developer"; and WHEREAS, said Developer requests approval of the Rezone a 1-~ cre parcel from Thoroughfare Commercial, Precise Plan Modifier (C-T-P) to Central Commer :iai Precise Plan Modifier (C-C-P); and WHEREAS, the Environmental Review Coordinator, in compliance w/Ih the California Environmental Quality Act (CEQA) has prepared a Negative Declaration, which has been recommended for adoption by the Resource Conservation Commission on April 21, 2003; and WHEREAS, the Planning Director set the time and place for a hearin[ on said Rezone and notice of said heating, together with its purpose, was given by its publicatie a in a newspaper of general circulation in the City and its mailing to property owners and residen~ s within 500 feet of the exterior boundaries of the property at least 10 days prior to the hearing; ar WHEREAS, the hearing was held at the time and place as advertised, amely May 14, 2003, at 6:00 p.m. in the Council Chambers, 276 Fourth Avenue, befere the Planning Commission and said hearing was thereafter closed; and WHEREAS, after considering all reports, evidence, and testimony t resented at said public hearing with respect to the Rezone application, the Planning Commissio a voted __ to recommend approval of the Rezone (PCZ-03-02); and NOW, THEREFORE, BE IT RESOLVED THAT THE PLANNING COMMISSION does hereby recommend that the City Council adopt the attached Resolution a ~proving Rezone (PCZ-03-02) in accordance with the findings and subject to the conditions conta .ned therein. BE IT FURTHER RESOLVED that a copy of this Resolution be trans~ ~itted to the City Council and the Developer. ATTACHMENT 4 PASSED AND APPROVED BY THE PLANN1NG COMMISSION OI~ THE CITY OF CHULA VISTA, CALIFORNIA, this 14th day of May 2003, by the following v )te, to wit: AYES: O'NEILL, CORTES, CASTANEDA, FELBER ~i ~ ~.~ ~ ~ NOES: ABSTAIN: ABSENT: HOM, MADRID, HALL ATTEST: J~Planning\Michael~PCC Reports~PCZ-03-02 ATTACHMENT 4 RESOLUTION NO. PCM 03-21 RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CHULA VISTA RECOMMEDING THAT THE REDEVELOPMENT AGENCY ADOPT NEGA' FIVE DECLARATION (IS-03-008) AND AN ORDINANCE F£ R A PRECISE PLAN ALLOWING THE DEVELOPMENT C~F A RESIDENTIAL AND RETAIL MIXED-USE PRO~ECT LOCATED AT 825 BROADWAY. / 1 WHEREAS, a duly verified application for a Precise Plan was filed J~ nuary 10, 2003, with the City of Chula Vista Planning Department by the Metropolitan Area Advisory Committee (MAAC) "Developer"; and WHEREAS, said Developer requests approval of the Precise Plan to all ow for a mixed- use project that includes 41 apartments affordable to low-income senior citiz~ :ns, a manager's unit, 2,219 square feet of retail/commercial space, open space and off-street park ing; and WHEREAS, the Environmental Review Coordinator, in compliance wi :h the California Environmental Quality Act (CEQA) has prepared a Negative Declaration, which has been recommended for adoption by the Resource Conservation Commission on April 21, 2003; and WHEREAS, the Planning Director set the time and place for a hearin[ on said Precise Plan and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City and its mailing to property owm ,rs and residents within 500 feet of the exterior boundaries of the property at least 10 days pric r to the hearing; and WHEREAS, the hearing was held at the time and place as advertised, aamely May 14, 2003, at 6:00 p.m. in the Council Chambers, 276 Fourth Avenue, befo'e the Planning Commission and said hearing was thereafter closed; and WHEREAS, after considering all reports, evidence, and testimony F resented at said public heating with respect to the Precise Plan application, the Planning C( mmission voted __ to recommend adoption of the Negative Declaration (IS-03-008) and approval of the Precise Plan (PCM-03-21); and NOW, THEREFORE, BE IT RESOLVED THAT THE PLANN1NG COMMISSION does hereby recommend that the Redevelopment Agency adopt the at~ached Negative Declaration (IS-03-008) and the draft Ordinance for Precise Plan (PCM-03-2 in accordance with the findings and subject to the conditions contained therein. BE IT FURTHER RESOLVED that a copy of this Resolution be tr ~smitted to the Redevelopment Agency and the Developer. ATTACHMENT 4 PASSED AND APPROVED BY THE PLANNING COMMISSION Ot THE CITY OF CHULA VISTA, CALIFORNIA, this 14th day of May 2003, by the following v, ~te, to wit: AYES: O'NEILL, CORTES, CASTANEDA, FELBER ~~~ NOES: ABSTAIN: ABSENT: HOM, MADRID, HALL _ ATTEST: //~s Hall, Chair ~ Diana Vargas, Secretary J~PlanningWiichaelW!AAC~PCM-03-21 ATTACHMENT 5 ORDINANCE NO. ORDINANCE OF THE CITY COUNCIL OF THE CITY ,)F CHULA VISTA ADOPTING THE NEGATIVE DECLARATI( )N (IS-03-008) AND AMENDING THE ZONING M ESTABLISHED BY SECTION 19.18.010 OF THE MUNICIP, kL CODE REZONING A 1-ACRE PARCEL LOCATED AT ~25 BROADWAY FROM THE C-T-P (THOROUGHFA ~E COMMERCIAL, PRECISE PLAN) ZONE TO THE C-(-P (CENTRAL COMMERCIAL, PRECISE PLAN) ZONE I. RECITALS A. Project Site WHEREAS, the area of land, which is the subject of this Ordinance is diagrammatically represented in Exhibit "A" and incorporated herein by this reference, and fi ,r the purpose of general description herein consist of 1-acre located at 825 Broadway ( 'Project ~ ite or Site"); and B. Project; Application for Discretionary Approval WHEREAS, on July 31, 2002, a Rezone application was filed by the I~ letropolitan Area Advisory Committee (MAAC) ("Developer") with the Planning and Building ])epartment of the City of Chula Vista requesting an amendment to the adopted Zoning map or mt ps established by Section 19.18.010 of the Chula Vista Municipal Code in order to rezone a 1-a :re parcel located at 825 Broadway from C-T-P, Thoroughfare Commercial Precise, Plan t( C-C-P, Central Commercial, Precise Plan Zoning District ("Project"); and, C. Prior Discretionary Approvals WHEREAS, the Planning Commission held an advertised public heari ~g on the Project on May 14, 2003, and after hearing staff presentation and public testimo ~y, voted 4-0 to recommend that the City Council approve the Project, in accordance with te findings listed below; and D. Planning Commission Record on Application WHEREAS, the Planning Department set the time and place for hearing on said Project, and notice of said hearing, together with its purpose, was given by ~ publication in a newspaper of general circulation in the City, and its mailing to property owner~, within 500 ft. of the exterior boundary of the Project, at least ten (10) days prior to the hearing; ~d, WHEREAS, the Planning Commission held an advertised public hea~ ~g on the Project on May 14, 2003, at 6:00 p.m. in the Council Chambers at 276 Fourth Avenue md, after hearing staff presentation and public testimony, voted 4-0 to recommend that the Cit~/Council approve the Project, in accordance with the findings listed below; and, WHEREAS, The proceedings and all evidence introduced bef ~e the Planning Commission at the public hearing on the Project held on May 14, 2003, andlthe minutes and resolution resulting there from, are hereby incorporated into the record of this p~ oceedings; and, Ordinance Page 2 E. City Council Record on Application WHEREAS, the City Council held an advertised public hearing on th .~ Project on June 10, 2003, at 6:00 p.m. in the Council Chambers at 276 Fourth Avenue and, ~;fter hearing staff presentation and public testimony, the Council voted 5-0 to table the item to a date uncertain to address several concerns that were raised at the hearing; and, WHEREAS, the City Clerk set the time and place for the hearin>, on the Project applications and notices of said hearings, together with its purposes given by i' s publication in a newspaper of general circulation in the City, and its mailing to property owne] s within 1,000 ft. of the exterior boundaries of the Project site at least ten (10) days prior to the he aring; and, F. Discretionary Approval of Ordinance WHEREAS, a duly called and noticed public hearing on the Project w ts held before the Redevelopment Agency of the City of Chula Vista on the Project an~ to receive the recommendations of the Planning Commission, and to hear public testimony fith regard to the salne. II The City Council of the City Chula Vista does hereby ordain as follows Section 1. The rezoning provided for herein is consistent with the Cit" of Chula Vista General Plan, public necessity, convenience and the general welfare and go~ t zoning practice support the amendment to the Municipal Code. Section 2. The City Of Chula Vista Zoning Map established by Section 19.18.010 of the Chula Vista Municipal Code is hereby amended to rezone the site as depicted i ~ Exhibit A from C-T-P (Thoroughfare Commercial, Precise Plan) to C-C-P (Central Commercia Precise Plan). Section 3. The Precise Plan modifier is appropriate for the rezoned parcel b cause the circumstances set for in Chula Vista Municipal Code Section 19.56.041(B) exis: with respect thereto. Section 4. Certification of Compliance with CEQA. The City Council doe hereby find that the Negative Declaration (IS-03-008) has been prepared in accordance with th requirements of the California Environmental Quality Act (CEQA), the State CEQA Gu delines and the Environmental Review Procedures of the City Of Chula Vista, and hereby ad, ~ts the Negative Declaration (IS-03-008). Section 5. Independent Judgment of City Council. The City Council does reby find that in the exercise of their independent review and judgment, the Negative Declarat )n (IS~03-008) in the form presented has been prepared in accordance with requirements ~f the California Environmental Quality Act and the Environmental Review Procedures of the C ty of Chula Vista and hereby adopts same. Ordinance Page 3 Section 6.Effective Date. This ordinance shall take effect and be in full force c a the thirtieth day from and after its adoption. Presented by Approved as to form by Jim Sandoval A~C~y At~o°~ey df) Acting Planning and Building Director J:\COMMDEV\RESOSWiAAC Project Ords and Resos\Ordinance l-Neg Dec and Zoning Map REVISED,doc Or, [inance No. Page 3 Exhibit "A" IJECT LO / CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR Pamsm Iq~rRoPoLrr~qAa~ pacuE~o~¢mraou: / ~ ~"U~: AD~SORY COHMmEE (M~ REZONE / ".. ( ' } ~oa[ss: 825 BROADWAY Request: Proposing a zone chang~ for a mixed u ~ ~ projed. / J:~lanning~ichael~C~C R~onc Ord 5-8.dm ~ / ATTACHMENT 6 ORDINANCE NO. ORDINANCE OF THE CITY COUNCIL OF THE CITY 3F CHULA VISTA APPROVING PRECISE PLAN (PCM-03-!I) FOR A MIXED-USE RESIDENTIAL AND RET/JL DEVELOPMENT LOCATED AT 825 BROADWAY WlTF IN THE SOUTHWEST REDEVELOPMENT PROJECT AREA. I. RECITALS A. Project Site WHEREAS, the area of land, which is the subject of this Ordinance is diagrammatically represented in Exhibit "A" and incorporated herein by this reference, and ~ >r the purpose of general description herein consists WHEREAS, the City Council held an advertised public hearing on the Project on June 10, 2003, at 6:00 p.m. in the Council Chamters at 276 Fourth Avenue and, after hearing staff presentation and public testimony, the Council voted 5-0 to table the item to a date uncertain to address several concerns that were raised at the learing; and, of 1- acre located at 825 Broadway ("Project Site"); and, B. Project; Applications for Discretionary Approval WHEREAS, on January 10, 2003, a Pf, ecise Plan,, application ~/as filed by the Metropolitan Area Advisory Committee (MAAC) ( Developer ) with the Plan ning and Building Department of the City of Chula Vista requesting a Precise Plan to develop a mixed-use project that includes 41 residential apartments for senior citizens above 2,21! square feet of retail/commercial space, a manager's unit and reductions in setbacks, parkir and open space requirements ("Project"); and, C. Prior Discretionary Approvals WHEREAS, the Design Review Committee held an advertised pub hearing on the Project on April 21, 2003, at 4:30 p.m. in the Council Chambers at 276 Fourth Avenue and, after hearing staff presentation and public testimony, voted 3-0 to recommend tha; the City Council approve the Project, in accordance with the findings listed below; and D. Planning Commission Record on Applications WHEREAS, the Planning Department set the time and place for a heari ~g on said Project, and notice of said hearing, together with its purpose, was given by its publicat on in a newspaper of general circulation in the City, and its mailing to property owners with 500 feet of the exterior boundary of the project, at least ten (10) days prior to the hearing; and, WHEREAS, the Planning Commission held an advertised public hem lg on the Project on May 14, 2003, at 6:00 p.m. in the Council Chambers at 276 Fourth Avenue and, after hearing staff presentation and public testimony, voted 4-0 to recommend that the Cit Council approve the Project, in accordance with the findings listed below; and, Ordinance Page 2 WHEREAS, The proceedings and all evidence introduced bef(re the Planning Commission at the public hearing on this project held on May 14, 2003, anal the minutes and resolution resulting therefrom, are hereby incorporated into the record of this p~ oceedings; and, D. City Council Record on Applications WHEREAS, the City Council held an advertised public hearing on t~ e Project on June 10, 2003, at 6:00 p.m. in the Council Chambers at 276 Fourth Avenue and ~fter hearing staff presentation and public testimony, the Council voted 5-0 to table the item to date uncertain to address several concerns that were raised at the heating; and, WHEREAS, the City Clerk set the time and place for the head g on the Project applications and notices of said hearings, together with its purposes given by i ts publication in a newspaper of general circulation in the city, and its mailing to property owner,, within 1,000 feet of the exterior boundaries of the Project site at least ten (10) days prior to the h ~aring; and, F. Discretionary Approval and Ordinance WHEREAS, a duly called and noticed public heating on the Project ~ as held before the City Council of the City of Chula Vista on the Project and to receive the recon mendations of the Planning Commission, and to hear public testimony with regard to the same; and, II The City Council of the City Chula Vista does hereby ordain as follows A. Certification of Compliance with CEQA The Environmental Review Coordinator has reviewed the proposed project fe compliance with the California Environmental Quality Act and has determined that the pro] osed project was adequately covered in previously adopted Negative Declaration IS-03-008. The City Council has reviewed and considered Negative Declaration IS-03-008 and find~ that no further environmental review or documentation is necessary. B. Independent Judgment of City Council The City Council has exercised their independent review and judgment and coJ tcurs with the Environmental Review Coordinator's determination that the proposed project x ~as adequately covered" in Negative Declaration IS-03-008, and that said document was prepm :d in accordance with requirements of the California Environmental Quality Act (CEQA), the S~ ate CEQA Guidelines and the Environmental Review Procedures of the City of Chula Vis :a. C. PRECISE PLAN FINDINGS 1. That such use will not under the circumstances of the particular case be detrimental to the health, safety or general welfare of persons residing or working n the vicinity or injurious to property or improvements in the vicinity. Ordinance Page 3 The mixed-use project will introduce new retail and commercial uses and afro 7dable rental units for senior citizens who will have the opportunity to experience a unique livir environment by implementing property development standards. Additionally, the projer will assist in implementing a "Generations Together" program that brings together senio citizens and the youth who attend the Chula Vista Charter School adjacent to the project site to participate in a variety of character building programs. The project will not negatively impact :he area because a new traffic control system has been implemented alleviating the existing traffic congestion in the area. The project will new introduce retail and residences into an area where ti ese uses currently exist. The project has been designed to function adequately on the 1-acre sit{: and is not out of scale with the surrounding area. The project also provides a transition from retail commercial along Broadway to the residential uses toward the east, which is an appropriate function of a mixed-use project. 2. That such plan satisfies the principle for application of the "P" modi~ 5ng district as set forth in CVMC 19.56.041. Section 19.56.041(B) provides for the application ofthe "P" modifying distric if the property or area is an area adjacent and contiguous to a zone allowing different la~d uses, and the development of a precise plan will allow the area so designated to coexist be ween land usages which might otherwise prove incompatible. The project site is located on Broadway and is adjacent and contiguous to the ( i-T (Thoroughfare Commercial) zone, which allows various commercial and retail uses. Additi anally, residential uses are nearby to the southeast and northeast. The project will introduce relail and residential uses that coexist allowing compatibility within the context of the existing land tses. 3. That any exceptions granted which may deviate from the underlying zcning requirements shall be warranted only when necessary to meet the purpose and tpplication of the Precise Plan. Development of the lot using the development standards of the C-C and R-3 z{ ne would limit the potential to maximize the use of the site with a mixed-use project. As a rest lt, the project has been designed with a high-density residential concept and zero lot line for ~e retail uses with building encroachments into the required setbacks and the reduction in numbe of on-site parking spaces. These deviations are warranted given the constraints to the site and the intent to maximize the use of the property to meet other policies of the General Plan. Parking: The project has been analyzed within an urban context, in which par ring on the public street is typical for retail and commercial uses having frontage along the pt blic right-of-way. Parking along Broadway is typical for the existing retail uses; therefore par ting for the retail portion of the project will be consistent with the existing retail uses alon~ Broadway. The CVMC requires the project to provide 74 spaces (63 for residential parking md 11 for retail). The project is subject to on-site requirements including trash enclosures and, ~pen space, which limits the developer's ability to meet the on-site parking requirement. '? Ordinance Page 4 The project will provide a total of 45 on-site parking spaces and will use a p~ rking ratio of 1:1 for the 42 residential units providing a designated parking space for each uni t. The remaining three spaces would be available for retail parking. The project's retail space is approximately 2,200 square feet of floor area, which limits the number retail uses up to two s~ ~all stores and the parking space demand. The project has sufficient frontage along Broadwty to provide for parking spaces for the retail uses, which has a 2-hour parking limit, which will provide adequate parking for the retail uses. Furthermore, public transit is available within a r~ asonable distance that services the site, and operates in 15-minute intervals. Setback reductions: The project site is currently zoned Thoroughfare Comme:cial, Precise Plan (C-T-P) and is subject setback 10-foot front setback. However, the project's r :zone from C-T-P to Central Commercial, Precise Plan (C-C-P) (Ordinance __.) requires a 25-foot front setback for the project. The project will have a 6-foot front setback from the public ,~ idewalk, and will have balconies at the second and third floors that project into the setback. Other retail and commercial uses along Broadway maintain zero or minimal front setbacks, ~ hich is typical for commercial zones within an urban context. The proposed 6-foot setback is cot sistent other retail and commercial front setbacks, and will not impact the public right-of-way. Included in this report is a cross section of the building as viewed from the public right-of-way. On-site open space: The CVMC requires the project's residential component to provide 400 square feet of common open space per unit. In this case the 42 units wot ld be required to provide 16,800 square feet of on-site open space. The project will provide ap )roximately 6,100 square feet of on-site open space, which includes a large courtyard, a commu aity room, lounge areas, a library and a recreation room. The project is immediately adjacent to the Charter School's recreation field, which the residence will have access to as provided in a written agreement between the Chula Vista Elementary School District and MAAC. gtaff believes that this will provide adequate and accessible open space for the project residents in addition to the on-site open space. 4. The approval of the Precise Plan will conform to the General Plar and the adopted policies of the City Of Chula Vista. The project has been evaluated in accordance with the goals and objectives of Chapter 10 Section 5.9 of the General Plan relative to mixed-use development along Brom way. The Precise Plan, as described, will allow the project to be consistent with the goals ane objectives of the General Plan, Southwest Revedevelopment Area Plan and the Chula Vista Mm icipal Code. D. TERMS OF GRANT OF THE PRECISE PLAN The City Council hereby grants the Precise Plan (PCM-03-21) and Prop :rty Development Standards subject to the following conditions: Ordinance Page 5 Planning and Building Department 1. The Developer shall incorporate the approved materials and colors ,r all buildings in accordance with the materials and color board submitted on Janum 13, 2003, which include an exterior stucco finish for the wall and buildings. 2. The Developer shall comply with all requirements of the Building Di, sion including the following codes for 2001: · California Building Code · California Plumbing Code · California Mechanical Code · California Electrical Code · Energy Code · Handicap Accessibility Requirements 3. The Developer shall submit a concept landscape plan for review an~ approval by the City's Landscape Planner to include the following to satisfy the City rec firements: A. Show an enhanced accented landscape treatment for entrances B. Provide raised planters at the comer and the overall Broadwa elevation. C. Provide canopy trees at the sidewalk along Broadway. D. Provide planter cutouts within the on-sire parking lot. E. Show all downspouts connected to the sewer and not a( >ss driveways or planter areas. F. Provide an irrigation or water source design for all raised plato ers. G. Enhance the paving in the courtyard. H. Provide a Water Management Plan per requirements of th City Landscape Manual during building permit submittal. I. Encourage the use of street furniture as appropriate with the t) of retail use. 4. The Developer shall apply for and obtain approval of a planned sign orogram from the Director of Planning and Building prior to the issuance of any gr tding or building permits. 5. The Developer shall provide drop-off zones and waiting areas with a >propriate seating and overhead shelters. These should be located as close as possible near the primary entrances. 6. The Developer shall provide a raised wood planter. The dimensions sk all conform to the ADA planter standards for individuals with reach limitations and mobil ty aids. 7. The Developer shall submit written restrictions for hours of operation for the tenants of the retail/commemial uses to the Director of Planning for review ar d approval. The hours of operation shall be such that there is no conflict with the resider tial units. Ordinance Page 6 Engineering Department 8. The Developer shall ensure that the development of the project :omplies with all applicable regulations established by the United States Environmental ~rotection Agency (USEPA) as set forth in the National Pollutant Discharge Elimination System (NPDES) permit requirements for urban runoff and storm water discharge, a~ :1 any regulations adopted by the City of Chula Vista pursuant to the NPDES regulations and requirements. The Applicant shall file a Notice of Intent (NOI) with the State Water ~esources Control Board to obtain coverage under the NPDES General Permit of Storm Water Discharges Associated with Construction Activity and shall implement a Stornt Water Pollution Prevention (SWPPP) concurrent with the commencement of gradin; activities. The SWPPP shall include both construction and post-construction polluti, m prevention and pollution control measures, and shall identify funding mechanisms fo~ ~ost-construction control measures. 9. The Developer shall obtain a grading permit in accordance with the S~ ~division Manual and Grading Ordinance prior to the issuance of any building permits. 10. The Developer shall complete the applicable forms and comply with the City of Chula Vista's Storm Water Management Standards Requirements Manual. 11. The Developer shall implement Best Management Practices (BMP~) to prevent the pollution of storm water conveyance systems, both during and ~fter construction. Permanent storm water requirements shall be incorporated into the project design, and shall be shown on the plans. Any construction and non-structural B VIPs requirements that cannot be shown graphically must be either noted or stapled on the >lans. 12. The City of Chula Vista requires that all new development and signific nt redevelopment projects comply with the requirements of the NPDES Municipal Permi, Order No. 2001- 01. According to said Permit, all projects falling under the Priority De velopment Project Categories are required to comply with the Standard Urban Storm Water Mitigation Plans (SUSMP) and Numeric Sizing Criteria. 13. Water quality and watershed protection principals shall be incorporatec into the design of the project. Such measures shall minimize the discharge of pollutants into the storm drainage systems. Fire Department 14. All buildings shall be fully fire sprinkled (NFPA13). The Developer shall install a standpipe system, fire extinguishers, on site fire hydrant, Knox boxes, a Knox override gate key switch and an optical gate opening system. The building shall have roof access. Sweetwater Authority 15. Prior to the issuance of building permits, the Developer shall obtair a letter from the Chula Vita Fire Department stating fire flow requirements and subrr the letter to the Sweetwater Authority for review. Ordinance Page 7 Chula Vista Elementary School District 16. The Developer shall pay the appropriate school fees prior to the iss ~ance of building permits. Special Operations 17. The Developer shall develop and implement an integrated solid waste md recycling plan acceptable to the Special Operations Manager. The plan shall be de~ igned to divert at least 50 percent of the waste stream generated by the project through t articipation in the City s residential recycling, yard waste, bulky pick up and househol hazardous waste programs outlined in Sections 8.24 and 8.25 of the Chula Vista Munk )al Code and the California Integrated Waste Management Act of 1989. Standard Conditions 18. Any violations of the terms and conditions of this permit shall be gro~ ~d for revocation or modification development permits. 19. All development permits shall become void and ineffective if not utiliz :d within one year from the effective date thereof, in accordance with Section 19.14.26( of the Municipal Code. Failure to comply with any conditions of approval shall caus~ this permit to be reviewed by the City for additional conditions or revocation. 20. Any deviation from the above noted conditions of approval shall ret ire approval from the City Council. 21. The Developer shall and does hereby agree to indemnify, protec defend and hold harmless City, its Council members, officers, employees and represe ~tatives, from and against any and all liabilities, losses, damages, demands, claims an ~ costs, including court costs and attorney's fess (collectively, liabilities) incurred by the City arising, directly or indirectly, from (a) City's approval of the Precise Plan, (b) City's approval or issuance of any other permit or action, whether discretionary or no 1-discretionary, in connection with the use contemplated herein, and (c) Developer'~ installation and operation of a facility permitted hereby, including, without limit~ tion, ant and all liabilities arising from the emission by the facility of electromagne :ic fields or other energy waves or emissions. Developer shall acknowledge their tgreement to this provision by executing a copy of the Precise Plan where indicated I~elow. Developer compliance With this provision is an express condition of the Pre~ise Plan and this provision shall be binding on any and all of Developer's/operator's successors and assigns. 22. The site shall be developed and maintained in accordance with the fi! al approved plans which will include revised site plans, architectural elevations, exterior ~ aaterials and color board, and landscape plans on file in the Planning Division, the co ~ditions contained herein, and the Chula Vista General Plan. Ordinance Page 8 23. Approval of this request shall not waive compliance with all sections of Title 19 of the Municipal Code, and all other applicable City Ordinances in effect at tlc e time of building permit issuance. 24. This Precise Plan shall be subject to any and all new, modified or ,leleted conditions imposed after approval to advance a legitimate governmental interest related to health, safety or welfare which the City shall impose after advance writ:en notice to the Permittee and after the City has given to the Permittee the right to be heard with regard thereto. However, the City, in exercising this reserved right/condition, may not impose a substantial expense or deprive the Permittee of a substantial revenue source which the Permittee cannot, in the normal operation of the use permitted be expected to economically recover. 25. The Developer shall be responsible for the building and landscapi~ g maintenance in accordance with the approved project and landscape plans unles~ the Director of Planning and Building approves modifications. E. EXECUTION AND RECORDATION OF RESOLUTION OF APPRO v'AL The Developer shall execute this document by signing the lines pro ~ided below, said execution indicating that the Developer and property owner have eact read, understood and agreed to the conditions contained herein. Upon execution, this. tocument shall be recorded with the County Clerk of the County of San Diego, at the s~le expense of the Developer and/or property owner, and a signed, stamped copy retume( to the City Clerk and Planning Department. Failure to return a signed and stamped COl: y of this recorded document within ten days of recordation to the City Clerk shall indicate the property owner/applicant's desire that the project, and the corresponding applk ation for building permits and/or a business license, be held in abeyance without approw Said document xvill also be on file in the City Clerk' Office and known as Document N Signature of Property Owner Dat{ of 825 Broadway Signature of Representative Dat~ F. INVALIDITY; AUTOMATIC REVOCATION It is the intention of the City Council that its adoption of this Ordin nce is dependent upon the enforceability of each and every term, provision and condition herein stated; and that in the event that any one or more terms, provisions or conditions a] determined by a Ordinance Page 9 Court of competent jurisdiction to be invalid, illegal or unenforceable, :his ordinance and the Precise Plan shall be deemed to be automatically revoked and of n, further force and effect ab initio. II1. APPROVAL OF PRECISE PLAN The City Council does hereby approve the Precise Plan including Prop, rty Development Standards for the Project as represented in Exhibit "B". lllI. EFFECTIVE DATE This Ordinance shall take effect and be in full force on the thirtieth day i'om and after its adoption. Presented by Approved as to form by Jim Sandoval ~.~y At~oO~ey ff_) '~ ~ Acting Planning and Building Director Exhibit "A' ATTACHMENT 7 RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE MIXED USE PROJECT .aND ENTERING INTO AN OWNER\TENANT PARTICIPATI ~)N AGREEMENT WITH THE CHULA VISTA ELEMENTARY SCHC OL DISTRICT AND THE METROPOLITAN AREA ADVISORY COMMIlrEE PROJECT FOR THE CONSTRUCTION OF A MIXED-~JSE RESIDENTIAL AND RETAIL DEVELOPMENT AT 825 BROADWAY WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA WHEREAS, the Chula Vista Elementary School District owns the property at 825 Broadway ("Site"), which is diagrammatically shown in the Locator M3p attached as Exhibit A to the Owner/Tenant Participation Agreement and incorpcrated herein by reference; and, WHEREAS, the Metropolitan Area Advisory Committee IMAAC) PrE iect entered into a 75-year lease with the Chula Vista Elementary School District for the development of the Site; and WHEREAS, MAAC Project has presented development plans for th ~ construction of a mixed use residential and retail development and associated site impr )vements at 825 Broadway ("Project"); and WHEREAS, the site for the proposed Project is located withir the Southwest Redevelopment Project Area under the jurisdiction and control of the Redevelopment Agency of the City of Chula Vista; and, WHEREAS, The Redevelopment Agency does hereby find thc the proposed project was adequately covered in previously adopted Negative Decl, ration IS-03-008 and, therefore, does hereby find that no further environmel~tal review or documentation is necessary; and, WHEREAS, the Design Review Committee reviewed and recomn~ended that the Redevelopment Agency approve the proposed Project subject to the o )nditions listed in Precise Plan PCM-03-21; and, WHEREAS, the City Council of the City Of Chula Vista previ:usly approved Ordinance No. _ by which it approved a rezone at 825 Broad,way from C-T-P (Thoroughfare Commercial, Precise Plan) to C-C-P (Central Commerci,]l, Precise Plan); and WHEREAS, the City Council of the City Of Chula Vista previ)usly approved Ordinance No. by which it approved a precise plan for this site and WHEREAS, the Redevelopment Agency of the City of Chula Vista has been presented an Owner/Tenant Participation Agreement, said agreemen being on file in the Office of the Secretary to the Redevelopment Agency, approving th ~ construction of a mixed use residential and retail project and associated site imprcvements at 825 Broadway, as depicted in Exhibit B and subject to conditions listed in Plecise Plan PCM- 03-21. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CiTY DF CHULA VISTA does hereby find, order, determine and resolve as follows: 1. The proposed project was adequately covered in pre"iously adopted Negative Declaration IS-03-008 and, therefore, does not rE quire additional review. 2. The proposed proiect is consistent with the Southwest Rede velopment Plan and shall implement the purpose thereof; the project shc assist with the elimination of blight in the Project Area. 3. The Redevelopment Agency of the City of Chula Vista here ~y approves the mixed use proiect as allowed pursuant to City Council Ordin~nce __ and the Owner/Tenant Participation Agreement with the Chula ¢ista Elementary School District and the Metropolitan Area Advisory CommittEe Project for the construction of the Project at 825 Broadway, in the foden presented in accordance with plans attached thereto as Exhibit B and su~ ~ct to conditions listed in Precise Plan PCM-03-21. 4. The Chairman of the Redevelopment Agency is hereby auth ,rized to execute the subiect Owner/Tenant Participation Agreement between the Redevelopment Agency and the Chula Vista Elementary Sc hool District and the Metropolitan Area Advisory Committee Project. 5. The Secretary of the Redevelopment Agency is authorized and directed to record said Owner/Tenant Participation Agreement in the Offi ;e of the County Recorder of San Diego, California. Presented by: Approved as to lorn by: Laurie A. Madigan An2~v~oore Director of Community Development ,"Agency Attorney J:\COMMDEV\RESOS\MAAC Project Ords and Resos\Reso 3.doc ATTACHMENT 8 COUNCIL RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CONDITIONALLY APPROVING FINANCIAL ASSISTANCE, SUBJECT TO FUTURE APPROPRIATION, IN THE FORM OF A RESIDUAL RECEIPTS LOAN FROM HOME FUNDS IN AN AMOUNT NOT-TO-EXCEED $300,000 TD THE METROPOLITAN AREA ADVISORY COMMITTEE (MAAC) PROJECT FC R THE DEVELOPMENT OF THE PROPOSED 42 UNIT PROJECT LOCATED 825 BROADWAY WHEREAS, the City of Chula Vista is an entitlement/participating juris tion for the U.S. Department of Housing and Urban Development (HUD) funding programs anc is awarded on an annual basis a formula grant from the HOME Investment Partnership Program -tOME); and WHEREAS, HOME funds ore designed exclusively to create at ordable housing opportunities for Iow-income households through the construction, F urchase, and/or rehabilitation of affordable housing for rent or homeownership or provide direct rental assistance to Iow-income people; and WHEREAS, pursuant to Health and Safety Code Section 33334.2(e), in carrying out its affordable housing activities, the City is authorized to provide subsidies to or for the benefit of very Iow income and lower income households, or persons and families of Iow or moderate income, to the extent those households cannot obtain housing at affordable ~ osts on the open market, and to provide financial assistance for the construction and rehabilitation of housing which will be made available at an affordable housing cost to such persons; am WHEREAS, pursuant to Health and Safety Code Section 33413(b), the~ :ity is required to ensure that at least 15 percent of all new and substantially rehabilitated dwellin ] units developed within a project area under the jurisdiction of the City by private or public e~tities or persons other than the City shall be available at affordable housing cost to persons and families of Iow or moderate income; and WHEREAS, MAAC Project ("Developer") proposes to construct a mixed u., e project of 2,219 square feet of commercial retail and 41 apartment units available to seni )rs, with 20 units affordable to very Iow households at 45 percent of the Area Median Income (A/', J), 20 units affordable to very Iow households at 50 percent of the Area Median Income (A/~ and 1 unit available for an on-site manager, located at 825-841 Broadway ("Project"); anc WHEREAS, Developer is applying for nine percent (9%) tax credits fro the Tax Credit Allocation Committee (TCAC); and WHEREAS, additional financing is necessary in order to make the resi~lential use of the Project feasible; and WHEREAS, the Developer requires assistance to reduce the developrrent costs for the construction of the residential units in order to make the Projed feasible; and WHEREAS, the provision of affordable housing units like the Project is (onsistent with and called for by the City's General Plan Housing Element, Consolidated Plan, anc California Health and Safety Code; and WHEREAS, the City wishes to provide Developer with a developmen~ loan up to three hundred thousand dollars ($300,000) to assist with the financing gap for the :onstruction of the residential units of the Project; and WHEREAS, the City's provision of funds to the residentiol use of the 'roject will directly improve the City's supply of very Iow income housing; and WHEREAS, the City has adopted an Implementation Plan pursuant to -lealth and Safety Code Section 33490, which sets forth the objective of providing housing to sat sfy the needs and desires of various age, income and ethnic groups of the community, and which specifically provides for the construction of new affordable rental housing units through Cit, assistance; and WHEREAS, the residential use of the Project furthers the goals of the £ ity set forth in the Implementation Plan as it will facilitate the creation of affordable housing w ~ich will serve the residents of the neighborhood and the City; and WHEREAS, the City's Housing Advisory Commission did, on the 23rd ~y of April, 2003, hold a public meeting to consider said request for financial assistance; and WHEREAS, the Housing Advisory Commission, upon hearing a~l considering all testimony, if any, of all persons desiring to be heard, and considering all factors relating to the request for financial assistance, has recommended to the City ,Council that the appropriation be approved because the Commission believes that the Citys financial participation in the development of the Project will be a sound investment based upon Dev,;Ioper's ability to effectively serve the City's housing needs and priorities as expressed in the Ho~sing Element and the Consolidated Plan and the cost effectiveness of the City's financial assistam based upon the leveraging of such resources; and WHEREAS, the City Council does hereby find that the proposed proje was adequately covered in previously adopted Negative Declaration IS-03-008 and, therefore Joes hereby find that no further environmental review or documentation is necessary. WHEREAS, The City Council does hereby find that in the exercise of their independent review and judgment, the previously adopted Negative Declaration (IS-03-008) adequately covers the proposed project in accordance with requirements of the Califor~ia Environmental Quality Act and the Environmental Review Procedures of the City of Chula Vista NOW, THEREFORE, BE IT RESOLVED the City of Chula Vista does reby conditionally approve a residual receipts loan subject to future appropriation, in an amc unt not-to-exceed $300,000 from the City's HOME funds to Developer for the construction of the 'esidential units of the Project subject to the City's approvals of an affordable housing and loan agreement which shall include, at a minimum, the following terms and conditions: 1. Funds shall be used only for those costs directly related to the residential un ts of the Project. 2. The loan repayment will be secured by a Deed of Trust and Promissory no te for the property on behalf of the City of Chula Vista and recorded against the Project prope~ ty. 3. The term of the loan shall be fifty-five (55) years. 4. The outstanding balance shall accrue with simple interest at 3 percent per a ~num. 5. Payment of principal and interest on the City loan shall be made, on an a~nual basis, out of a fund equal to fifty percent (50%) of the "Residual Receipts", rental incorr from the Project minus debt service on the bonds, payment of the deferred developer fe~ and reasonable operating expenses. 6. Developer will be required to operate the Project consistent with the Reg atory Agreement required by the Project's tax credit financing, the covenants imposed by th Agreement, and any other project requirements. 7. Developer shall enter into a loan agreement with the City consistent with ~e terms set forth above and with such other terms as shall be required or approved by the C , Attorney. 8. This conditional approval remains subject to final approval by the City in its ole discretion. Presented by Approved as to form by Laurie A. Madigan Director of Community Development C'i(-y Attorney J:\HOME\COMMDEV~RESOS\MAAC PROJECT ORDS AND RESOS\RESO 4.doc