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Home My WebLink About2010/09/28 Item 8 CITY COUNCIL AGENDA STATEMENT ~u?- CITYOF ~ (HUlA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: SEPTEMBER 28, 20 I 0, Item L RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE WAIVER OF THE APPLICABLE RESIDENTIAL CONSTRUCTION TAX FOR 28 AFFORDABLE HOUSING UNITS WITHIN A DEVELOPMENT TO BE LOCATED ON NEIGHBORHOOD R-30 IN OTA Y RANCH VILLAGE 2 IN SATISFACTION OF THE CITY'S BALANCED COMMUNIT}t~ POLICY DEVELOPMENT ~ES DIRECT~ CITY MANAGER /-- 4/STHS VOTE: YES D NO 0 SUMMARY Rosina Genpar, LLC ("Developer") proposes to develop a two hundred seventy-eight (278) unit housing project located on Neighborhood R-30 in Otay Ranch Village 2 in the City of Chula Vista, of which twenty-eight (28) units will be operated as affordable rental housing for low and moderate income households. The 28 affordable units are being provided consistent with the Affordable Housing Program of the Otay Ranch Village 2 Sectional Planning Area (SPA) Plan and the City's Balanced Communities Policy. To assist in the development of the low and moderate income housing units, Developer is requesting waiver of the Residential Construction Tax. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed actiVIty for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060( c )(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council adopt the Resolution. BOARDS/COMMISSION RECOMMENDATION On September 22, 2010, the Planning Commission approved Planning Commission Resolution PCM 10-18 recommending the City Council approve the waiver of the applicable Residential Construction Ta'( for 28 atlordable housing units for low and 8-1 SEPTEMBER 28,20] 0, Ttem-.L Page 2 moderate income households with a development on Neighborhood R-30 within Otay Ranch Village Two. DISCUSSION Proposed Proiect Rosina Genpar, LLC proposes to devclop a two hundred seventy-eight (278) unit housing project located on Neighborhood R-30 in Otay Ranch Village 2 known as Rosina Vista Apartments (the "Project"). A total of twenty-eight units for low and moderate income households will be intermixed throughout the 278-unit Project in satisfaction of the City's Balanced Communities policy. Rosina Vista will provide a mix of ], 2 and 3 bedroom units within 24 3-story buildings. Parking will be provided on-site, with half of the spaces in garages. On-site amenities incl ude a recreation building and pool. Rosina Vista will be located directly adjacent to a mixed use retail commercial site. Directly across the street is a designated park site and Otay Ranch High School. Income and Rent Covenants Fourteen (14) units within Rosina Vista will be operated as atfordable rental housing for low income households and fourteen (14) units for moderate income households (the "Atfordable Units") in compliance with the Affordable Housing Program. The unit break do'-'n, income restrictions and estimated rents (minus a utility allowance) is summarized in the table below. ~:;~g&~t1 1 br/1 ba 1 br/1 ba 1 br/1 ba 2 br/2 ba 2 br/2 ba 2 br/2 ba 3 br/2ba 3 br/2 ba 3 br/2ba 3 3 50 7 7 124 4 4 76 AFFORDABLE 28 UNITS TOTAL UNITS 278 .i/L~2010.'Estimated Rents" .: ,'lfw;,"","a,"h,;t;xilf,""'"' :,~:; ""..<",,;.:,>'''' :: Minus a Utili .Allowance)";: Low Income (80% AND) Moderate Income (120% AMI) Market Rate/Unrestricted Low Income (80% AMI) Moderate Income (120% AMI Market Rate/Unrestricted Low Income (80% AMI) $ 942 $ 1,170 $ 1,300 $ 1,061 $ 1.530 $ 1,700 $ 1,178 $ 1,800 $ ? ,000 The income and rent restrictions are incorporated into the Declaration of Covenants, Conditions and Restrictions recorded against the property. The Declaration is binding on 8-2 SEPTEMBER 28,2010, ItemL Page 3 Developer and its successors and assigns in the Property and will be maintained for a period of twenty (20) years. Residential Construction Tax In accordance with Chula Vista Municipal Code Chapter 3.32 all residential units constructed within the City of Chula Vista shall be subject to the Residential Construction Tax (RCT). This Tax is collected to produce revenue for public facilities and infrastructure needed to serve the increase in the population of the City as result of new residential units. In order to encourage the development of housing affordable to low and moderate income households, the City Council may, upon the request of a developer, waive all or a portion of this tax (reference CVMC 3.32.050). Developer has requested waiver of the RCT for those 28 low and moderate income residential units. As set forth in the schedule of the tax per CVMC 3.32.040, the applicable RCT for the 28 residential units, based upon bedrooms, is $11,250. CONCLUSION As stated in the City's Housing Element of the General Plan, the City has a pressing need for quality affordable housing and in general, more balanced and varied housing, particularly in the eastern area of the City. Rosina Vista Apartments will provide quality affordable housing with an integrated mix of low, moderate and market rate housing, on site amenities, and a desirable location directly adjacent to key neighborhood services, amenities and facilities. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no Property holdings within 500 feet of the boundaries ofthe property which is subject to this action. CURRENT YEAR FISCAL IMPACT In accordance with CVMC 3.32.040 establishing the schedule of the tax, the total Residential Construction Tax for the Project is $111,900. Developer is requesting waiver of the RCT for those applicable twenty-eight (28) residential units for low and moderate Income households in accordance with CVMC Section 3.32.050. This request results in a waiver of $11 ,250 of the fees to be paid at time of building permit issuance. ONGOING FISCAL IMPACT The waiver of the Residential Construction Tax is due and payable at time of building permit issuance and therefore, represents a one-time impact. ATTACHMENTS 1. Locator Map Prepared by: Leilani Hines, Principal Project Coordinator. Development Services Dept 8-3 ATTACHMENT 1 Locator Map 8-4 RESOLUTION NO. 2010- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE WAIVER OF THE APPLICABLE RESIDENTIAL CONSTRUCTION TAX FOR 28 AFFORDABLE HOUSING UNITS WITHIN A DEVELOPMENT TO BE LOCATED ON NEIGHBORHOOD R-30 IN 0'1' A Y RANCH VILLAGE 2 IN SATISFACTION OF THE CITY'S BALANCED COMMUNITIES POLICY WHEREAS, the Affordable Housing Program of the Otay Ranch Village Two Sectional Planning Area (SPA) Plan provides for five percent of all newly constructed dwelling units being designated for occupancy and affordability by low-income households and live percent for moderate- income households consistent with the City of Chula Vista Housing Element established Policy 5.1.1 of the City's Housing Element of the General Plan ("Balanced Communities Policy"); and WHEREAS, Rosina Genpar, LLC CDeveloper") proposes to develop a two hundred seventy-eight (278) unit housing project located on Neighborhood R-30 in Otay Ranch Village 2 in the City of Chula Vista, of which twenty-eight (28) units will be operated as aftordable rental housing for low and moderate income households (the "Project"); and WHEREAS, City and Developer entered into the Declaration of Covenants, Conditions, and Restrictions CDeclaration") dated July 27, 2010, and recorded on August 19, 2010 as Document No. 20 I 0-0431652 in the Official Records of the County of San Diego placing covenants, conditions, and restrictions on, among other things, the management, maintenance, affordability and use of twenty-eight residential units within the Project in fultillment of the SPA affordable housing obligations and the Balanced Communities Policy; and, WHEREAS, ChuIa Vista Municipal Code Chapter 3.32 specifies all residential units constructed within the City of Chula Vista shall be subject to the Residential Construction Tax (RCT); and WHEREAS, Chula Vista Code Section 3.32.040 establishes a schedule of the Residential Construction Tax; and WHEREAS, in accordance with Chula Vista Municipal Code Section 3.32.050, in order to encourage the development of housing affordable to low and moderate income households, the City Council may, upon the request of a developer, waive all or a portion of the Residential Construction Tax CRCT") for those applicable residential units; and WHEREAS, Developer has requested a waiver of the RCT for those 28 low and moderate income residential units; and WHEREAS, on September 22, 2010, the Planning Commission held a public meeting to consider said request for a waiver of the RCT for the Project; and 8-5 City Council Resolution No. 2010-~ Page 2 WHEREAS, the Planning Commission, upon hearing and considering all testimony, if any, of all persons desiring to be heard, and considering all factors relating to the request for a waiver of the RCT for the Project has recommended to the City Council that a waiver of the applicable RCT be approved for those residential units to be restricted for use and affordability by low and moderate income households; and WHEREAS, The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 1 5060( c )(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does hereby approve a waiver of the Residential Construction Tax for the 28 residential units for low and moderate income households, in the amount set forth in the schedule of the ta. 0 assist with reducing the development costs for the construction of the affordable residential.un' s. Presented by / Y' Gary Halbert, AlCP, PE Assistant City Manager/Director of Development Services 8-6