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HomeMy WebLinkAbout16-47 - Resolutions - Recommending Adoption Of Ordinace, Located ON The West Side Of Achibald AVE RESOLUTION NO. 16-47 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, RECOMMENDING ADOPTION OF AN ORDINANCE AUTHORIZING THE CITY OF RANCHO CUCAMONGA TO APPROVE AN AMENDMENT TO DEVELOPMENT AGREEMENT DRC2014-00610 BETWEEN THE CITY OF RANCHO CUCAMONGA AND 7418 ARCHIBALD, LLC, FOR THE PURPOSE OF PROVIDING A SENIOR HOUSING PROJECT IN ACCORDANCE WITH THE SENIOR HOUSING OVERLAY ZONING DISTRICT (SHOZD), INCLUDING DEVIATING FROM CERTAIN DEVELOPMENT STANDARDS, FOR THE DEVELOPMENT OF A 24,641 SQUARE FOOT, 60-UNIT SENIOR APARTMENT COMPLEX ON 2.25 ACRES OF LAND LOCATED ON THE WEST SIDE OF ARCHIBALD AVENUE, SOUTH OF BASE LINE ROAD, AS PROVIDED FOR IN SECTION 65864 OF THE CALIFORNIA GOVERNMENT CODE, FOR REAL PROPERTY DESCRIBED HEREIN, AND MAKING FINDINGS IN SUPPORT THEREOF, APN: 0208-031-58 AND 0208-031-59. A. Recitals. 1. The applicant, 7418 Archibald, LLC, filed an application for Development Agreement Amendment DRC2016-00667, as described in the title of this Resolution. Hereinafter in this Resolution, the subject Development Agreement is referred to as "the application." 2. On the 13th day of May 2015, the Planning Commission adopted Resolution No. 15- 35 recommending the City Council approve Development Agreement DRC2014-00610 for the purpose of providing a senior housing project in accordance with the Senior Housing Overlay Zoning District (SHOZD), including deviating from certain development standards, for the development of a 24,641 square foot, 60-unit, senior apartment complex on 2.25 acres of land located on the west side of Archibald Avenue, south of Base Line Road. 3. On the 3rd day of June 2015, the City Council approved Development Agreement DRC2014-00610. 4. On the 17th day of June 2015, the City Council adopted Ordinance No. 876 for Development Agreement DRC2014-00610. 5. Following the June 17, 2015, City Council action the applicant submitted to the California Tax Credit Allocation Committee (TCAC) to obtain low income tax credit financing for the project. On February 17, 2016 the City of Rancho Cucamonga Successor Housing Agency approved an amendment to the Acquisition, Disposition, Development, and Loan Agreement (ADDLA) between the City and the Developer for this affordable senior housing project to allow for the use of 4% low income housing tax credit financing, along with other financing resources, should the Developer be unsuccessful in securing a 9% low income housing tax credit from the TCAC. The use of 4% low income tax credits for the project required a modification to the unit affordability due to a reduction in the amount of revenues to construct and manage the project. This income affordability modification was included in the amendment to the ADDLA. The Developer was unsuccessful in receiving a 9% low income tax credit approval in March 2016 and notified the City of its intent to pursue the 4% low income housing tax credit financing. PLANNING COMMISSION RESOLUTION NO. 16-47 DRC2016-00667 — 7418 ARCHIBALD, LLC August 24, 2016 Page 2 6. The purpose of this Amendment is to modify the affordability requirements included in the Development Agreement for the project as a result of the change in tax credit financing. 7. On the 24th day of August 2016, the Planning Commission of the City of Rancho Cucamonga conducted a duly noticed public hearing on the application and concluded said hearing on that date. 8. The subject property of the Development Agreement Amendment is legally described herein. 9. A true and correct copy of the proposed Development Agreement Amendment is attached as Attachment "A" to this Resolution. 10. All legal prerequisites prior to the adoption of this Resolution have occurred. B. Resolution. NOW, THEREFORE, it is hereby found, determined, and resolved by the Planning Commission of the City of Rancho Cucamonga as follows: 1. This Commission hereby specifically finds that all of the facts set forth in the Recitals, Part A, of this Resolution are true and correct. 2. This Commission hereby specifically finds that the Development Agreement Amendment and each and every term and provision contained therein conforms to the General Plan of the City of Rancho Cucamonga based on the following findings: a. The proposed Development Agreement Amendment is consistent with the objectives, policies, and general land uses specified in the General Plan and any applicable Specific Plans; and b. The proposed Development Agreement Amendment is compatible and in conformity with public convenience, general welfare, and good land use and zoning practice; and c. The proposed Development Agreement Amendment will not be detrimental to the health, safety, and general welfare of the City; and d. The proposed Development Agreement Amendment will not adversely affect the orderly development of property or the preservation of property values. 3. Pursuant to the California Environmental Quality Act (CEQA) and the City's local CEQA Guidelines, the City adopted a Mitigated Negative Declaration on June 3, 2015, in connection with the City's approval of Development Agreement DRC2014-00610. Pursuant to CEQA Guidelines Section 15162, no subsequent or supplemental EIR or Negative Declaration is required in connection with subsequent discretionary approvals of the same project. No substantial changes are proposed to the project that indicate new or more severe impacts on the environment; no substantial changes have occurred in the circumstances under which the project was previously reviewed that indicates new or more severe environmental impacts; no new important information shows the project will have new or more severe impacts than previously considered; and no additional mitigation measures are now feasible to reduce impacts or different PLANNING COMMISSION RESOLUTION NO. 16-47 DRC2016-00667 — 7418 ARCHIBALD, LLC August 24, 2016 Page 3 mitigation measures can be imposed to substantially reduce impacts. On June 3, 2015, the City adopted a Mitigated Negative Declaration regarding the proposed development of a 24,641 square foot, 60-unit, senior apartment complex on 2.25 acres of land located on the west side of Archibald Avenue, south of Base Line Road. Accordingly, there have been no substantial changes to the project or the circumstances surrounding the project which would create new or more severe impacts than those evaluated in the previous Mitigated Negative Declaration. Staff further finds that the project will not have one or more significant effects not discussed in the previous Mitigated Negative Declaration, not have more severe effects than previously analyzed, and that additional or different mitigation measures are not required to reduce the impacts of the project to a level of less-than-significant. 4. This Commission hereby recommends approval of the Development Agreement Amendment attached hereto as Attachment "A" with the special condition which follows: a. The final draft of the Development Agreement Amendment shall be reviewed and accepted by the City Attorney prior to approval by City Council. 5. The Secretary to this Commission shall certify to the adoption of this Resolution. APPROVED AND ADOPTED THIS 24TH DAY OF AUGUST 2016. PLANNING COMMISSION OF THE CITY OF RANCHO CUCAMONGA BY: Francisco Oaxaca, Chairman ATTEST: Candy.jBurnett, Secretary I, Candyce Burnett, Secretary of the Planning Commission of the City of Rancho Cucamonga, do hereby certify that the foregoing Resolution was duly and regularly introduced, passed, and adopted by the Planning Commission of the City of Rancho Cucamonga, at a regular meeting of the Planning Commission held on the 24th day of August 2016, by the following vote-to-wit: AYES: COMMISSIONERS: MACIAS, MUNOZ, OAXACA, WIMBERLY NOES: COMMISSIONERS: NONE ABSENT: COMMISSIONERS: FLETCHER ABSTAIN: COMMISSIONERS: NONE RECORDING REQUESTED BY: CITY OF RANCHO CUCAMONGA and WHEN RECORDED MAIL TO: City Clerk City of Rancho Cucamonga P.O. Box 807 Rancho Cucamonga, CA, 91729 Exempt from Recording Fee per Government Code 6103 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT DRC 2014-00610 SENIOR CITIZENS' HOUSING BY AND BETWEEN THE CITY OF RANCHO CUCAMONGA AND 7418 ARCHIBALD LLC (CO 15-122) Title of Document ATTACHMENT A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT DRC 2014-00610 SENIOR CITIZEN'S HOUSING BY AND BETWEEN THE CITY OF RANCHO CUCAMONGA AND 7418 ARCHIBALD LLC THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT ("First Amendment") is made and entered into as of this day of , 2016, by and between 7418 ARCHIBALD, LLC, a California limited liability company ("Developer") and the CITY OF RANCHO CUCAMONGA, a municipal corporation organized and existing under the laws of the State of California ("CITY"). RECITALS A. On June 17, 2015 the City Council adopted Ordinance 876 approving a Development Agreement ("Development Agreement") with the Developer, recorded on July 21, 2016 with a document number of 2016-0292138, which provided for the development of 59 affordable senior housing units with one manager's unit located at 7418 Archibald Avenue which consists of two parcels of land totaling 2.25 acres in the City of Rancho Cucamonga. B. On February 17, 2016 the City of Rancho Cucamonga, as Successor Housing Agency to the Rancho Cucamonga Redevelopment Agency, approved an amendment to the Acquisition, Disposition, Development, and Loan Agreement ("ADDLA") between the City and the Developer for this affordable senior housing project to allow for the use of 4% low income housing tax credit financing, along with other financing resources, should the Developer be unsuccessful in securing a 9% low income housing tax credit from the California Tax Credit Allocation Committee ("TCAC"). The use of 4% low income tax credits for the project required a modification to the unit affordability due to a reduction in the amount of revenues to construct and manage the project. This income affordability modification was included in the amendment to the ADDLA. C. The Developer was unsuccessful in receiving a 9% low income tax credit approval in March 2016 and has notified the City of its intent to pursue the 4% low income housing tax credit financing. D. The purpose of this First Amendment is to modify the affordability requirements included in the Development Agreement for the project as a result of the change in tax credit financing. E. Capitalized terms used, but not defined, in this First Amendment shall have the meaning set forth in the Development Agreement. 1076\55\1927081.2 AMENDMENT 1. Section 1.a. shall be deleted in its entirety. 2. Section 1.b. shall be deleted and replaced with: b. "Affordable Rents" shall mean the total charges for rent, utilities and related services that are no greater than that considered as "affordable rent" for low-income households, adjusted for family size appropriate to the unit, pursuant to Section 50053 of the California Health and Safety Code, as amended, or any successor statute thereto. The maximum housing cost for the Qualified Tenant for each of the income levels set forth in this Agreement must comply with the regulations promulgated by the California Department of Housing and Community Development Sections 6910-6932 in Title 25 of the California Code of Regulations,to the extent such regulations govern density bonuses and other incentives pursuant to Section 65915 of the Government Code. Initial rents for each unit shall be set by the Developer at the time of initial occupancy of the Development. Rents may be adjusted annually by the same percentage that Area Median Income has increased, if any, for an Extremely Low Income Qualified Tenant, a Very Low Income Qualified Tenant and a Lower Income Qualified Tenant. Rents may be set at the California Tax Credit Allocation Committee allowable rents for a specific year for the income categories of Qualified Tenants as specified in this Agreement. Tenants occupying units restricted by this Agreement shall be given at least thirty(30) days written notice prior to any rent increase. Examples of these affordable rent calculations are attached on Exhibit C. 3. Section 8. Rental Requirements. shall be deleted in its entirety and replaced with: Section 8. Rental Requirements. During the Qualified Project Period, at least: a. Five (5)of the units shall be rented, leased or held available for Extremely Low Income Qualified Tenants whose income does not exceed thirty percent (30%) of the Area Median Income, adjusted by family size appropriate to the unit, less a utility allowance. b. Seven (7) of the units shall be rented, leased or held available for Very Low Income Qualified Tenants whose income does not exceed fifty percent (50%) of the Area Median Income, adjusted by family size appropriate to the unit, less a utility allowance. c. Seventeen (17) of the units shall be rented, leased or held available for Lower Income Qualified Tenants whose income does not exceed sixty percent (60%) of the Area 1076\55\1927081.2 Median Income, adjusted by family size appropriate to the unit, less a utility allowance. d. All other units, excluding one manager's unit, in the Project shall be rented, leased or held available for Lower Income Qualified Tenants. Each unit must be occupied by a Senior Household as its primary residence, and shall not be sublet. 4. Except for the modifications expressly made herein, the Development Agreement remains unmodified and in full force and effect. 5. Pursuant to Section 65868.5 of the Government Code, the Parties shall mutually assure that a copy of this First Amendment is recorded against the Site, with the County Recorder of San Bernardino County within 10 days after the effective date of the Ordinance approving this First Amendment. SIGNATURES ON FOLLOWING PAGE 1076\55\1927081.2 IN WITNESS WHEREOF,this Agreement has been executed by the parties and shall be effective on the Effective Date set forth herein. DEVELOPER: CITY: 7418 ARCHIBALD LLC, a California CITY OF RANCHO CUCAMONGA, a municipal limited liability company corporation By: Orange Housing Development Corporation, a California nonprofit corporation, its member By: L. Dennis Michael Mayor By: Eunice Bobert Chief Executive Officer ATTEST: By: C&C Development Co., LLC, a California limited liability company, its member Janice C. Reynolds, City Clerk By: Todd R. Cottle, its member APPROVED AS TO FORM: By: The Cottle Family Trust Dated 3/8/1987, its member RICHARDS,WATSON &GERSHON By: Barry A. Cottle,Trustee By: City Attorney 1076\55\1927081.2 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy,or validity of that document. State of California County of San Bernardino On , before me, (insert name and title of the officer) Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 1076\55\1927081.2 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Bernardino On , before me, (insert name and title of the officer) Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 1076\55\1927081.2 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached,and not the truthfulness, accuracy, or validity of that document. State of California County of San Bernardino On , before me, (insert name and title of the officer) Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 1076\55\1927081.2 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Bernardino On , before me, (insert name and title of the officer) Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 1076\55\1927081.2