HomeMy WebLinkAboutStaff Report 08 2/20/2001 CITY Of PETe',LUMA', CALIFORNIA
O.
AGENDA 'BILL
Agenda Title: Approval of Participatinn;in Countywide,Nexus, Meeting Date: 2/20/01
Study to Quantify the Impact of New'Nonresidential`Growth
On Housing Need
Department: Director: Contact-Person: Phone Number:
Petaluma Community Paul Marangella Bonne Gaebler ,,. 778-4301 Ext. 484
Development Jv\
Commission
Cost of Proposal: $ 11,800 Account Number: 903-400-
'5401-6104
Amount•Budgeted: This project has.been presented outside of the
normal budget process so this specific allocation is not included in 'Name of Fund: Housing Fund
the existing budget: Howeverfundsa are available if the Administration, Contractual
Commission.approves the expenditure. Services
Attachments to Agenda Packet Item:
1. Memo from Mayor'of Santa Rosa
2. Draft Resolution.
Summary Statement:
Presentations,have been made to both the Mayors'and Councilmembers Association,regarding a
. possible funding source for affordable housing. The presentation?included consideration of collecting a
fee in conjunction with new nonresidential development to generate funding`for affordable housing
programs. The first step in this consideration is the preparation of a nexus report;that quantifies the
impact of new nonresidential growth on housing need. Participation in such a study does not commit
Petaluma to applying such a fee, but the adoption of an Impact fee cannot le_gally be instituted without a
nexus study.
Council Priority: •
Priority(s): N/A
Recommended City.Council.Action/Suggested Motion: .
Adopt,a Resolution Approving'Participation in a Countywide'Nexus Study to Quantify the Impact of
New Nonresidential Growth'on Housing Need.
Rev a ed Jdd.F'u•thie l iris• tor:•• Reviewed:.b City A o ne ` • Approved by 'itv' nager:
o / Date: A
Da •:
To av's I ate: .l Revision#.and Dah'e RexisQSI: File Code: \
January 31,2001 # Nexusstudy/d
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• •CITY OF'S'ANTA ItOSA I � 2,5 LtJCS1
MEMORANDUM
DATE: January- 22, 2001
TO: MAYORS AND CITY MANAGERS(D
FROM: MICHAEL E. MARTINI, MAYOR / l
SUBJECT: PARTICIPATION IN COUNTYWIDE HOUSING NEXUS STUDY
At both the,Mayors' and Councilniembers' Associationmeeting•on January 11`h and the City
Managers' meeting on January5`h-presentations were made regarding a;possible funding source
for affordable'housing. It'involved consideration of collecting,a fee:in conjunction with new
nonresidential construction to generate funding for affordable housing programs. The first step
in this consideration�is the preparation'of a nexus report that quantifies the'impact of new
nonresidential growth on housing need.
At both January meetings a proposal to prepare thenexus''study on.a countywide basis and a '
.. suggested distribution of costs,;among the cities and the county was:distributed. That information
is attached to this memorandum:as well We would like to identify the jurisdictions interested in
proceeding with this study by'Februar 13`h so that work may begin. To that end, please contact
Wayne?Goldberg;(543-3220 or wgoldberana,ci.santa-rosa.ca.us) with an indication as to whether
or not your city wishes to participate in the nexus study,-: Participation:in the nexus study
certainly does not-commit;your jurisdiction to applying a fee, butthe adoption of an impact fee
cannot legally'be instituted without anexus study.
Thank you for your timely response to this memorandum.
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-25-2000 15:04 FROM ECONOMIC.2. PL_RNNING, SYS. TO 170754330„13,, r.02
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• Ett-'07,77-1'..
Economic
J M4 2 5 2001 Planning Systems
Public Finn M MANIAC:AP,. mare Etono.ici
Region,' •CON,,
• 1,,.J Un-Path),
October16, 2000
Mr. Chuck Regalia
City of Santa ROsa
100 Santa Rosa Avenue
• Santa Rosa, CA 95404
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(Subject .ConCeptiial WOrk Prpgr, am for Cbuttywide AffOrdable Housing Ftmding
Strategy;.EPS#9324
Pear Mr. Regalia:
Based on discussions yitWrepreseritativeS'friam the City of Santa Rosa,Economic &
Planning Systems,Inc (EPS) is hereby providing kcariCeptuasCope:of work tomyaluate
affordable housing,detnand in Sonoma CoUntyorredouhde'lia.Sis.:::TlieprOPcised
study would establiSit the nexus between job aida!: -.2rvAild Wrdablelhousing•derhand.
• The,study;woUld also identify a variety of prograiitisia.nctpOlikies.,threigh:Whieh
Sonoma County jurisdidiciria•cart individually and,O011.WO-tiVelyitneet that housing
demand;including the potential creation of a non-residiaiitlatlinkage fee program
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EPS anticipates that the attached conceptual scope otwork;couldheaCcomplished for a
budget of roughly$100,000. As requested, EPS will further refine the scope of work and
the btidget•for this effort. . •
We[appreciate this opportunity,toiSubinitthispropased workprogramfor this uniquely
interesting;and Challenging pote.ntfalassigrunent.i. We feel stErongly.that the most
effective way to address the regional housittg:crisis*int,s'ti-golIgh regional
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cooperat:ion, We welcorrte the challengeAi-tat this represent.
If you haveany questions regarding our conceptual scope of work,please call me at
(510) 8419190.
Sincerely,
ECONOMIC&PLANNINGSYSTEMS,
I tH.
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Sr 1aäer ICA/
Managing;Principal
Attachment
/III ' Lily
lACUAMIITO
:5411 N;ntb tzt.t (ult.WU Phnnt )113.1141.9M 918-649.soln ,pSnov 1.03-77$.5112
IL -26-2000 15:e4 `FROM ECONOMIC g PLANNING SYS. T0. 17075433216 P.03
CONCEPTUAL WORK PROGRAM
Tlie robust economic growth of the:Bay Area`has been well documented inrecentyears.
- • Through expansion of existing companies:and many.new start-up compani:es,the
employment base of.the region hastgrown significantly: However, thesuppiy of
housing has grownless quickly ithan the employment base. As a result;housing;prices.
haye;escalated throughout the region., Many.cities where the housing stock hasl
historically been affordableto lower:a"nd moderate income households°are increasingly
g � g p ' 'the market::;Such conditions`create
finding tfiat such households are'Bein nced';out of
a lobs/housing unbalance in which many lower paid`workers are,forced tomove great,
distances<from their lobs--;a situation'tthat deflates such workers effective`econornic
• • - prosperity andalso taxes the transportation.infrastructure'thro"ughout.the region.
The:shortage:of.housingaffordable to lower and-moderate income households'extends
beyond the:boundaries of individual.jurisdictions. Because,workers and employersare
mobile,it is difficultlto achievea<.balance,of jobs and'housing within an individual
:jurisdiction. However,,the problem can be more effectively addressed through a•
coordinated effort'.by neighbor ng-jurisdictions. Such an_approach would allow for art
optimal use•of aq&atile`resources (land funding, etc-)while not,placing or e"jurtsdiction
at a distinct economic advantage or:disadvantage`vis-a-visits,neighboring jurisdictions.
AB AG has established'a,methodology for determining obltgaiion to' •
• pronde housing affordable to'households of various income levels The ABAG'formula
has beenproblematic and was temporarily suspended. However, ABAG will;soon issue
an updated determination of affordable housing needs within each individual
jurisdiction in the:Bay Area.
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Sonoma'County citiesland the County have.aMopportunity to address the,complex'
problem of assuring;adequate affordable.housing for their expanding workforce. The
following work,'program,addresses;one aspect of this,effort.'These taskssare conceptual
and would be subject to refinement in response;to:requests or recommendatioris-front
the participating jurisdictoru. .
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TASK 1: ASSESS;WORKFORCE;/ AFFORDABLE HOUSING
REQUIREMENTS
• EPS will.utilize projections;for employment growthin each junsdictiori and inthe
County as a whole to assess the magnitude of affordable housing,demand'hkely to result
from future employment growth_ EPS will calculate the housingdemand basedonthe •
anticipated locations of employment growth'- These projections wilt be compared
ABAG's calculations from the'Regional Housing NeedsrDetermination. The cost to
provide the demand'ed`.housing,will be estimated,basedion generalized housing: ' •
production costs versus theaffordable housing price.at various income levels.
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' -2E-2000 15:05 FROM ECONOMIC 8., PLFNNING SYS. TO 17075433219 P.04
Conceptual Work Program
City of Santa Rosa
October 26,2000
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TASK 2: EVALUATE ALTERNATIVE MEANS OF FUNDING
AFFORDABLE HOUSING'
EPS will evaluate a range c>f2affordable housing funding programs in Sonoma County
jurisdictions and other jurisdictions throughout the Bay Area and beyond. Examples of
such programs will include both voluntary and mandatory means of funding housing
production,including without limitation: .
• Affordable housing trust funds
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• Federal and state bar and grant programs
• Local and privatized horneownerShip•assistance,progratris
• Redevelopment agendy set asides
• Real Property Transfer Tax funding
• Non-residential housinelirikate fees
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The purpose of this evaluation wiilbe to assess the effectiveness of various methods of'
generating funds forthe production or retention of affordable housing uriits.
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TASKS: NON-RESIDENTIAL FEE CALCULATION
EPS will calculate the maximumlinkage•fee associated with,various industry sectors'
impact on.affordable housing demand. This will be accomplished by analyzing the
prevailing interne levels,household formation rates, antllbcationpatterns of workers in
• various industry sectors, and comparing these to the number of employees and number •
ofbuilding;square footage projected for the industry Sectors. This calculation will result
in a maximum fee for various building types (office,retail, industrial,warehouse, etc).
As part of this task,EPS will review the practices of California jurisdictions that have
established linkage fee programs,with particular focus on the decisions to
charge the maxiniu_ni.alloWable linkage,fee,or some strialler amount.•
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TASK 4: REVIEW OF CURRENTINCLUSIONARY HOUSING
POLICIES
EPS recognizestataffOrdable housing productiongoalsare also effectively addressed
through inclusionary housing policies that require aLpertentage of housing units
developed,th be affordable, or establish an in-lieu fee.. EPS will review the policies of
each jurisdiction in Sonoma County and assess their impacts on the generation of
affordable housing units and/or funding:. The projecteclteed for affordable housing
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calculated!in Taskl.will be compared ttiltheplojecte&effectiveness of the jurisdictions
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c-urrent,pcilicies.
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r-26-?eeo 15:06 FROM ECONOMIC & FL_PNNI NG SYS. TO 17075433218
Conceptual Work Program
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• • City of.Ssnffi ltbsa
addier'26,2000
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'TASK 5: RECOMMENDATIONS FOR IMPLEMENTATION OF •
COUNTYWIDE PROGRAM . .
Following consuliatioh with the.pai4-cipa.tint jurisdictions,El3S ekici
strategy for addressing ihe projected need for affordable housing on a Countywide
basis. These recommendations may include a,tange of regional (Countywide) and lodal
soltitibn4;tOthe.hoitsiiig issue. This ihfotpli*tiohAicis develOpearriaybegised;t0;help.,
rationalize the ABAG nee ,
di deteruwtih6n andtHCUs
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TASK 6: REPORT PREPARATION AND PRESENTATIONS.
Ef'S vi-illprepare a replortidocurtteritirig.all'of tlie.preceding research;;analy,Sis/and •
recornrriendations. EPS will also present its findings to the Council of eadiiparticipating
jurisdiction:, • . .
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EPS's work shall,establish the.ne>4.4 betWeenlernplayrne.nt growth ancl*fordable: •
housing clethancl. Hotv'ever;EF'S:su,-orlc will`notinduderhedraffing of ordinances or ilk
:,othëf1Atrieãsute ,fbr the establishinient of:policies orprogranis. 11111F.
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COST DISTRIBUTION FOR COUNTYWIDE NEXUS-.STUDY
BASED UPON POPULATION
Population* % County Total Share
Cloverdale 6,416 1.4%, $ 1,400
Cotati 6,814 1.5% $ 1,500
Healdsburg 10,430 2.3% $ 2,300
Petaluma 52,985 11.8% $ 11,800
Rohnert Park 39,952 8.9% $ 8,900
Santa Rosa 141,989 31.5% $ 31,500
Sebastopol 8,019. 1.8% $ 1,800
• Sonoma 9,406 2.1% • S 2,100
Windsor 21;034. 4.7% $ 4,700
Co. Un_inc. 153,012 34%/ $ 34,000
County Total 450,057 100% $400,000
* California Department of Finance (DOF)
1/5/01
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• RESOLUTION APPROVING PARTICIPATION IN A:.COUNTVWIDE NEXUS STUDY
TO QUANTIFY THE IMPACT OF NEW NONRESIDENTIAL GROWTH ON
HOUSING NEED
WHEREAS a,proposal has been presented to the PetalumarCommunity Development
Commission to study the nexus(relationship) between the creation of jobs and the need for
housing in Sonoma County; and
WHEREAS that nexus study will be done on,a countywide,basis with each community
sharing in the cost and the benefits.of the:study;:and
WHEREAS such a study is:necessary prior to the•imposition of a fee on nonresidential
development tomitigate the impact of such development; and
WHEREAS it has been determined that,such a countywide study will provide in formation
which will benefit the City of Petaluma in any future discussion regarding the potential
imposition of such a fee
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THEREFORE BE IT,RESOLVED that the Petaluma Community Development
Commission approves the city's financial participation imthis study and authorizes the
Executive Director to enter into any agreements whichmay be appropriate.
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• CITY OF PETALUMA, CALIFORNIA
& 10
MEMORANDUM
PutlicFaciliiies,&c Services,22'Bassett St, l3etaluma di 94952
(707) 773-4304' Fax(707) 773-4437 E-mail: .engineerin wcLpetaluma.ca.us
DATE: February 15, 2000
TO: Fred Stouder, City Manager
FROM: Mike Evert, Engineering Manager 77.2__
SUBJECT: McDowell/E. WashingtonSt. Intersection Transportation Improvement Project
Assessment District 02001-01 (Project No. 9862; Phase-3):
City Council agenda item 09 on 2/20/01 at.3 p.m.
Attached are the revised Agenda for Public Hearing (Exhibit,B in the Council packet), and the
Resolution Waiving a Portion of Future Traffic Mitigation Fees.
Agenda for Public Hearing on 2/20/01
Please provide this revised agenda to the Council for the 2/20/01 Council meeting. This
• agenda replaces the agenda in the City Council.packet, Exhibit B. The,first order of action by
the Council is to adopt the.Resolution Waiving a Portion of Future Traffic Mitigation Fees for
the Property Owners within the assessment district. Implementationof this resolution is
contingent°on a majority of the property owners, based on the dollar amount being assessed,
voting in favor of the assessment district.
Plaza North's ballot is going to mailed to Rich Rudnansky prior to the Public Hearing on
2/20/01, accompanied by a conditional delivery letter. The conditionalaetter will say that if the
Council adopts this resolution as shown, the property owner will submit a new ballot by way of
the Ciry Attorney, voting in favor of the assessment district.
Revised Resolution Waiving a Portion of Future Traffic Mitigation Fees for Property Owners
within Assessment District 2000-01
Please provide this revised resolution-to the Council for the 2/20/01,Council meeting. This
resolution has been revised to include specitic wording from-the attorney for Plaza North. The
kevpoints of the resolution are that Assessment District-2000-01' bonds are for 20 years, and the
wavier period for traffic mitigation fees is 25.years.
The Bond Counsel has reviewed this resolution, and I`have discussed it with Rich Rudnanskv. I
have also discussed specific points ofihe-resolution,with Bill Thomas and Mike Moore, and have
provided them with a final copy for review.
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I will be out,of the'office Thursday afternoon and Friday. If you have any questions, please ask
Rick Skladzien. who can contact the Assessment Eneineer Mary' Grace Pawson at 766-6258, •
Memol/me-s
xc: Rick Skladzien. Director of Public Facilities and Services
Attachment: Ekhibit B
Resolution
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26091-02 JH:SRC:sgs 2/15/01
CITY OF PETALUMA
Assessment District 2000-1
(McDowell/E. Washington)
AGENDA FOR PUBLIC HEARING
February 20, 2001
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1. MAYOR - declares public hearing open. •
2. STAFF (AND ,CONSULTANTS) - summary of the project, .financing, the assessment
district, and the 25% waiver of traffic mitigation fees.
3. MAYOR— the Council considers and adopts:
A Resolution Waiving a Portion or Future Traffic Mitigation Fees for
Property Owners within Assessment District 2000-01
4. MAYOR - asks for and collectsany remaining ballots.
• 5. MAYOR - asks the Clerk for the;results of the ballots..Take,a'brief break if necessary. Clerk
announces result of ballots. Take a brief break if necessary.
61 MAYOR — If the Council decides to continue the hearing, it continues to another Council
meeting and takes no further action at this meeting. If ihere is a majority ballot approval, the
hearing is formally closed and the Council considers and adopts:
A Resolution of the City Council of the City of Petaluma Adopting
Engineer's' Report, Confirming The Assessment and Ordering the
Work and Acquisitions, and Directing•Actions with Respect Thereto
End of Item
agenda order!S/meimedowell
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R esolution No. N.C.S.
• of the City of Petaluma;; California
A RESOLUTION OF THE CITY COUNCIL OF THE
• CITY OF PETALUMA, CALIFORNIA
WAIVING A PORTION OF FUTURE TRAFFIC MITIGATION FEES FOR
PROPERTY OWNERS WITHIN ASSESSMENT DISTRICT 2000-01
Assessment District 2000-01 (McDowell/E. Washington)
WHEREAS, the City Council of Petaluma is considering-approving•a resolution adopting the
Engineer's Report confirming the assessments, ordering the work and acquisitions and directing actions
with respect thereto for Assessment District 2000-01; and
WHEREAS, the Engineers Report-:states that one of the,special.benefits received by the properties from
the Assessment District is that the intersection improvements anticipate future development conditions
on their properties; and
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WHEREAS, one of the future developinent conditions is the contribution of traffic mitigation fees; and
WHEREAS, to induce the property owners within Assessment District 2000-01 to vote in favor of the
Assessment District, it is proposed that the traffic mitigation fee be,Waived for future development
expansion of up to a total of-25% of the existing facility square footage, within a period of 25-years or
the life of the Assessment District 2000-01 bonds, whichever is longer; and
WHEREAS, the•effects of the proposed waiver oftraffic mitigation fees would be as follows:
Year 2000 •
Assessed 25% Maximum Value
Assessor's Facility Square of Traffic
Parcel Owner Square Footage Mitigation Fee
Number Footage Expansion Waiver
007-213-030 Petaluma Properties 20000 5000 $1.2;440
Inc.
007-280-038 Ann Morrissey 7182 1796 $4,467
007-280-046 Washington Square 13620 3405 $8,472
Assoc. . .
007-280-049 Friedman, Morton L. 0 0
and Marcine
007-280-052 Washington Square 2288 572 $1,423
Assoc.
007-280-054 Chevron USA Inc. .2011 503 $1 ,251
007-280-055 Washington Square 1.34242 33561 $83,499
•I Assoc.
007-280-069, Washington Square 7196 1799 $4,476
Assoc.
007-280.070 Washingtoh;Square 4346 1087 $2,703
Assoc.
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007-280-071 Washington Square 15376 3844 $9,564
Assoc.
0072 W 80-072 Washington Square 3900 975 $2,426
Assoc.
Q07-280-073 Washington Square 0. 0
Assoc.
007-340-006 Thorup, Martha et. al. 1723 431 $1,072
Trust
007-340-007 Thorup; Martha et. al. 156519 39130 $97,355
Trust
007-340-008 Thorup, Martha et. al. 3084 771 $1,918
Trust
007-350-008 Syers Property I, L.P. 26397 6599 $16;419
007-350-009 Syers Property I, L.P. 183939 .45985' $114,410
Square Footage
Totals 581,823 145,456
Potential Waiver
Total $361,894
WHEREAS,some of the property owners now own or may in the future own more than one parcel
within Assessment District 2000-01, it isproposed as a further inducement to the property owners to
allow an,owner of more than one>parcel: (a) to aggregate the waivers associated with all of the parcels
owned.by such owner; and (b) to apply such aggregated waivers, in such proportion as such owner may
•; elect, to development of all or any of such parcels; and
WHEREAS,•an owner within Assessment District 2000-01 may acquire contiguous property that is
outside of the Assessment District, it is proposed as a further inducement to the property owners to allow
such an owner: (a) to transfer, in whole or in part, suchowner''s traffic mitigation waivers, including
aggregated waivers, to the acquired property; and (b) to apply the same to development of the acquired
property; and
WHEREAS, the owners of APN 007-213-030, Petaluma Properties, Inc. (Best Western Petaluma Inn)
can apply the traffic mitigation fee waiver to an expansion of their business into the residential parcel
that they own at the corner of McDowell Blvd. So. (223:,McDowell,Blvd. So.); and
WHEREAS, the adoption of these Resolutions.does not imply City approval of any City permits of an
expansion;
NOW BE IT RESOLVED by the City Council of the City of Petaluma that if'a majority of the property
owners, based on`'the dollar amount being assessed, vote in favor of Assessment District 2000-01 and
Assessment District 2000-01 is established:
A. the traffic mitigation fee shall`be waived for the;property owners within the Assessment
District 20,00-01 for future development expansion of up to a total of25% of the existing facility square
footage, allocated among the properties within the.AssessmenfDistrict'as set forth in the above table;
• and
B. the period;within which such traffic mitigation.fee waivers shall be effective shall be 25-
years or the life of the Assessment District 2000-01 Bonds, whichever is longer; and
C. the life of the Assessment District 2000-01 Bonds shall not be less than 20 years; and
D. an owner who owns, now orinthe.future,-more than one parcel within Assessment
District 2000-01` shall be entitled:'(a) to aggregate the traffic mitigation fee waivers associated with all
of the parcels Owned by such owner; and (b)to apply such aggregated waivers, in such proportion as
such ownermay elect, to development of all or any of such parcels; and.
E. if a property owner within Assessment District,2000-01 acquires another property
contiguous to his, her, or its property and the acquired property is outside of the Assessment District, the
traffic mitigation fee waivers of such owner for property within the Assessment,District, including
waivers aggregated under Resolution D, above, may be: (a) transferred,-in whole or in part, to the
acquired property; and (b) applied to the development of the acquired property; and
F. for purposes of Resolutions D and E, above, multiple properties that are not owned by the
same entity shall be deemed to be owned by only one entityand.shall be entitled to the rights and
benefits of Resolutions D and E if the ownership entities are themselves more than 50% owned or
controlled by the same owners,(e.g., without,limitation, if two properties are owned by two separate
corporations, but the same person holds more than 50% of the stock of each corporation, the properties
will be deemed to be owned by only one owner for purposes of applying Resolutions D and E); and
G. if a property is transferred to anew owner, the unusedivaiver and the other benefits of
the Resolutions set forth herein shall run with the land and shall inure to the benefit-of the new owner;
and
H. neither the adoption of these Resolutions nor the benefits conferred by them shall be
al deemed to be in lieu of or to derogate from any other rights of the property owners regarding traffic
mitigation, and/or traffic mitigation fees, waivers and/or credits, norshall the acceptance or exercise of
any of the benefits of these Resolutions by a property:ownerbe deemed to be a waiver of any other
rights of such owner regarding traffic mitigation and/or trafficmitigation fees, waivers and/or credits.
Under the power and authority conferred_upon this.Council:bythe Charter of said City.
REFERENCE: I hereby certify the foregoing.Resolution was introduced and adopted by the Council
of the City of Petaluma at a Regular.meeting on February 20,.2001,by the Approved as to
following vote: form:
City Attorney
AYES:
. NOES:
ABSENT:
ATTEST:
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City Clerk Mayor
Resolution,No. 00- NCS'
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