CITY COUNCIL STAFF REPORT
MEETING DATE: May 18, 2016
PREPARED BY: T. Linder, Community Development Department
APPROVED BY: City Manager
Title
REQUESTS FOR EXTENSIONS TO RESIDENTIAL DEVELOPMENT CONTROL SYSTEM (RDCS) PROJECT APPROVED CONSTRUCTION SCHEDULES AS FOLLOWS:
1. DEVELOPMENT AGREEMENT AMENDMENT, DAA-06-04G: DIANA - SHERIMAR: located on the south side of Diana Avenue west of Ringel Drive and east of Murphy Avenue (Assessor's Parcel Number 728-20-043 and 045) is. CEQA: Previously adopted Mitigated Negative Declaration.
2. DEVELOPMENT AGREEMENT AMENDMENT, DAA-09-05C: COCHRANE - BORELLO: located at Cochrane Road adjacent to Alicante Estates and Alicante Ranch bordered by Peet road and Coyote road (Assessor Parcel Number 728-34-026, is located at) CEQA: Previously adopted Environmental Impact Report.
3. DEVELOPMENT AGREEMENT AMENDMENT, DAA-14-03: BUTTERFIELD - DIVIDEND: located on the northwest and northeast corners of the intersection of Butterfield Boulevard and Central Avenue (Assessor’s Parcel Number 726-26-005) CEQA: Previously Adopted Mitigated Negative Declaration.
END
RECOMMENDATION(S)
RECOMMENDATION
1. DAA 06-04G: Diana-Sherimar/Martinez:
a. Open/close Public Hearing;
b. Waive First and Second Reading of Development Agreement Amendment Ordinance; and
c. Introduce Development Agreement Amendment Ordinance.
2. DAA 09-05C: Cochrane-Borello:
a. Open/close Public Hearing;
b. Waive First and Second Reading of Development Agreement Amendment Ordinance; and
c. Introduce Development Agreement Amendment Ordinance.
3. DAA-14-03: Butterfield-Dividend:
a. Open/close Public Hearing;
b. Waive First and Second Reading of Development Agreement Amendment Ordinance; and
c. Introduce Development Agreement Amendment Ordinance.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Maintaining fiscal responsibility
Protecting the Environment
2016 Focus Areas
Developing Our Community
REPORT NARRATIVE:
Notices were sent in early February to each project applicant informing them of the pending June 30, 2016 commencement deadline. Applicants unable to commence construction by that date were advised to apply for a Development Agreement Amendment (DAA). Four of the 11 notified applicants filed for an amendment to their Development Agreement. An Extension for Loss of Building Allocation (ELBA) request was considered separately for the MC 13-13/DA 14-02: Old Monterey-City Ventures (Solara Ranch), which was previously considered by the City Council. The remaining three DAA requests are analyzed within the April 26, 2016 Planning Commission staff report (Attachment 4) and summarized within this report.
DAA-06-04G: DIANA-SHERIMAR/MARTINEZ
Sherimar Ranch is a 117 unit single-family detached development located on a 42 acre site on the south side of Diana Avenue between Murphy Avenue and Ringel Drive. The final phase of Sherimar Ranch was awarded 22, FY 2014-15 on-going allotments in February 2013. In March of 2014, Tract map 10171 recorded with 23 lots. The developer at that time, KB homes immediately constructed homes on 20 of the 23 lots. Lot 1 and Lot 3 remain vacant and Lot 2 contains an existing single family home. The construction of homes on Lot 1 and Lot 3 would require building allotments. The applicant is requesting a 12-month extension of the remaining two unused building allotments. The reason given for the delay is the family has had to focus on an aging family member and has not been able to direct their attention to preparing plans for the homes.
The Sherimar project has reached Step 8 as a whole but the last two lots are technically at Step 5. The circumstances where the two remaining lots have been retained by the original land owner is unique. The lots will be developed as custom lots, which traditionally take more time to develop. It is recommended that a 12 month extension be granted for use of the project's final two allotments.
DAA-09-05C: COCHRANE-BORELLO
This project (San Sebastian) is a 244 unit single family project on 122-acres located north of Half Road, west of Cochrane Road, east of Peet Road, and adjacent to the south side of the Santa Clara Valley Water District (SCVWD) pump station. The project has been granted allotments in multiple RDCS competitions; most recently in February 2014 when it was granted 25 FY 2015-16 allotments.
The project has completed Step 3, has Step 4 pending submittal of a final improvement plan, an executed subdivision improvement agreement, bonds, and insurance, has completed Step 5 with the submittal to the Building Division in March and could have Step 6 (Master Plans approved by Building Division) completed within the next 2-3 months. The project owner has recently partnered with Toll Brothers, which is a large experienced builder who the applicant believes has the financial resources necessary to move the project forward. The applicant has indicated that Toll Brothers could commence grading within 2-3 months if granted an extension. The specific request is to extend the expiration dates for the project building allotments by nine to 18 months.
The applicant’s extension request does not align with the City’s standard December or June commencement dates and asks to extend a deadline that is over one year away therefore no extension is recommended to the 15, FY 2016-17 allotments. Pursuant to Council Policy, other circumstances have been identified which warrant an extension so an 18-month extension is recommended for the 15, FY 2013-14 allotments and a 24 month extension to the FY 2015-16 allotments. These extensions are recommended with the condition that the applicant record the phase one (21 lots) Final Map by October 31, 2016. Failure to record the Final Map by October 31, 2016 would void the extension.
DAA-14-03 BUTTERFIELD-DIVIDEND
This is a request for an amendment to a development agreement specifically requesting a six month extension for 41, FY 2015-16 building allotments awarded to the 80-unit Valencia project approved on the northwest and northeast corner of the intersection of Butterfield Boulevard and Central Avenue. No previous extensions have been granted.
The Valencia project has completed Step 6. The applicant feels confident about commencing construction in accordance with the current June 30, 2016 agreement date but commencing on all 41 units may not be possible with the delays incurred thus far. It is recommended a one year extension be granted to cushion against any unforeseen weather or permitting delays.
Planning Commission Review
The Planning Commission reviewed the requested DAA's at their meeting of April 26, 2016. Staff identified that a majority of the Diana-Sherimar/Martinez project had been constructed and that the project only required an extension for two allotments. The Borello family has partnered with Toll Brothers and is actively in the process of obtaining Master Plan approval for the project site. They are likely to commence construction in the near future. The Butterfield-Dividend project has completed the identified entitlement steps, but there have been outside circumstances that have contributed to a delay of the project. For these reasons the Planning Commission has recommend extending the commencement of construction deadline for each project, as specified above.
COMMUNITY ENGAGEMENT: Inform
The required public hearing notice was published in the May 6, 2016 edition of the Morgan Hill Times for the minimum 10-day noticing period. Property owners within 300 feet of the subject properties were notified of the DAA hearing 10 days prior to the scheduled public hearing.
ALTERNATIVE ACTIONS:
The City Council could determine that the findings established in Council Policy CP-09-02 have not been met and could deny one or all of the requests.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
The Planning Commission considered the DAA's at their April 26, 2016 meeting. Based on the information presented, the Planning Commission determined that the delays to commencement of construction were not a result of developer inaction. The Planning Commission recommended that the City Council approve the DAA's requested.
FISCAL AND RESOURCE IMPACT:
The applicants have paid the application fees applied to their project.
CEQA (California Environmental Quality Act):
Project, Description of CEQA requirements
In accordance with Section 15162 of the CEQA Guidelines (Subsequent Negative Declarations), there is no substantial evidence, in light of the whole record, that the projects as revised may have a significant effect on the environment; therefore no further environmental analysis is required. For each project a Mitigated Negative Declaration was adopted and a Notice of Determination was filed along with previous related application approvals.
LINKS/ATTACHMENTS:
1. Ordinance - DAA 06-04G: Diana-Sherimar/Martinez
2. Ordinance - DAA 09-05C: Cochrane-Borello
3. Ordinance- DAA-14-03: Butterfield-Dividend
4. Link to April 26, 2016- Planning Commission Staff Report