HomeMy WebLinkAboutResolution 2019-171 N.C.S. 10/21/2019Resolution No. 2019-171 N.C.S.
of the City of Petaluma, California
RESOLUTION OF THE CITY OF PETALUMA CITY COUNCIL RESOLUTION
APPROVING ALTERNATIVE COMPLIANCE WITH INCLUSIONARY HOUSING
REQUIREMENTS PURSUANT TO IMPLEMENTING ZONING ORDINANCE
SECTION 3.040 FOR THE HAYSTACK PACIFICA MIXED USE PROJECT
LOCATED AT 215 WELLER STREET
APN: 007-143-003, 004, 007, 014, and 015
FILE NO. PLMA-16-0001
WHEREAS, in January 2016 Pacifica Companies filed an application requesting Site
Plan and Architectural Review and associated SmartCode Warrants for the Haystack Pacifica
project, including 178 dwelling units, approximately 24,855 square feet of ground floor
commercial, and additional tenant amenity areas located at 215 Weller Street Assessor's Parcel
Numbers 007-143-003, 004, 007, 014, and 015 (the "Project"); and
WHEREAS, at the time the application was submitted the City's inclusionary housing
policy encouraged onsite inclusionary housing within %2 mile of the SMART station but allowed
payment of in -lieu fee to satisfy inclusionary requirements.
WHEREAS, since early in the entitlement process, Pacifica Companies agreed to
provide 15% of the total multi -family units as on-site affordable housing units (27 units); and
WHEREAS, in 2018 in response to AB 1505 the City amended the General Plan to
revised housing element program 4.3 to require 15% onsite inclusionary housing for residential
development of five or more units and require affordability restrictions for 55 years for rental
developments; and
WHEREAS, housing element program 4.3 provides that developers may fulfill their
inclusionary requirement subject to approval by the city council using alternative methods; and
WHEREAS, also in 2018, to implement the updated housing element program 4.3, the
City adopted a Zoning Text Amendment to codify inclusionary housing requirements for all
residential projects of five units or more to provide a minimum of 15% onsite affordable units
and specifying that for rental projects said 15% onsite affordable units must be split between
very -low and low-income; and
WHEREAS, as adopted, IZO Section 3.040.13 provides for alternative compliance as
other ways to satisfy a project's inclusionary housing requirement and provides for review of
alternative compliance on a project by project basis at the sole discretion of the City Council; and
WHEREAS, IZO Section 3.040.D.3. specifically identifies an alternative mixture of
units by income level as a potential way of satisfying a project's inclusionary housing
requirement through alternative compliance; and
WHEREAS, when IZO Section 3.040 was adopted by the City Council there was an
effectiveness clause that allowed residential development that was deemed complete prior to
Resolution No. 2019-171 N.C.S. Page 1
January 1, 2019 to be processed under the previous inclusionary housing provisions which
allowed payment of housing in lieu fees instead of construction of onsite units; and
WHEREAS, the Haystack Pacifica project was deemed complete on March 9, 2019;
and
WHEREAS, the Haystack Pacifica project is subject to the inclusionary requirements
as laid out in IZO Section 3.040; and
WHEREAS, at a duly notice public hearing on May 28, 2019 the Planning
Commission approved Resolution No. 2019-09 approving Site Plan and Architectural Review
and associated warrants for the Haystack Pacifica project, and including the provision of 15%
onsite inclusionary housing; and
WHEREAS, on September 24, 2019 Pacifica Companies submitted a request for
Alternative Compliance to inclusionary housing requirements pursuant to IZO Section 3.040.1),
specifically requesting an alternative mixture of units by income level to provide 15% onsite
inclusionary at the low-income level; and
WHEREAS, the City Council considered Pacifica Companies' request to satisfy the
city's inclusionary housing requirement through Alternative Compliance at their regular meeting
on October 21, 2019 and considered the staff report dated October 21, 2019; and
NOW THEREFORE, BE IT RESOLVED that the City Council approves an alternative
mixture of units by income level to allow all 15% of onsite inclusionary housing to be provided to
low income households as Alternative Compliance to satisfy the inclusionary housing requirement
for the Haystack Pacifica Projects and adopts the following findings:
1. The foregoing recitals are true and correct and incorporated herein by reference.
2. The project is consistent with Housing Element Program 4.3 in that the project provides
15% of the units onsite for use as affordable housing with affordability restrictions for 55
years for rental development.
Implementing Zoning Ordinance Section 3.040 outlines the city's inclusionary housing
requirements and Subsection 3.040.1) provides for Alternative Compliance at the sole
discretion of the City Council. An alternative mixture of units by income level is explicitly
listed to meet alternative compliance.
4. With approval of Alternative Compliance by the City Council the Project is consistent with
IZO Section 3.040, including provision of 15% affordable housing units on-site distributed
throughout the Project with a unit mix that mirror the mix in the larger Project (2 studios, 9
1 -bedrooms, 14 2 -bedrooms, and 2 3 -bedrooms), and with duration of the affordability
covenants to be at least 55 years.
5. Petaluma's Regional Housing Need Allocation for the 2015-2023 cycle indicates 103 low
income units available at 51% to 80% of average median income and as of June 30, 2019
only 18 permits had been issued for low income units, representing a significant unmet need
within the low-income category.
6. The Haystack Pacifica project site is identified as one of the three Catalyst sites within the
City and determined to "present the best opportunity for transforming the Station Area,
Resolution No. 2019-171 N.C.S. Page 2
meeting the goals of the General Plan and the CPSP and the community's vision" (Station
Area Master Plan). The SAMP envisions transformation of the Station Area via
development and redevelopment of the area toward pedestrian -oriented, livable, mixed-use
environments that support transit ridership.
7. The Station Area Master Plan states that alternative solutions may be necessary to spur
development on the Catalyst sites in the short term and specifically recommends
consideration of measures to increase project profitability and probability of financing.
Haystack Pacifica has identified a financial shortfall for the approved project due to project
costs associated with increasing construction costs, additional infrastructure requirements,
and onsite inclusionary housing. The requested alternative compliance to the prescribed
income mix for onsite inclusionary would reduce ongoing project costs by approximately
$100,000 per year and is anticipated to enable build out of the Haystack Pacifica project
including the inclusionary units.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the ",.7kpprov as to
Council of the City of Petaluma at a Regular meeting on the 2151 day of Octoberorm:l
2019, by the following vote: �-
)/PWI—
City ttorney
AYES: Mayor Barrett; Fischer; Healy; Kearney; King; Vice Mayor McDonnell; Miller
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:( i - ty-
:
Deputy City Clerk Mayor
Resolution No. 2019-171 N.C.S. Page 3