75A - PH - AMEND DEV AGMT 1901 E FIRST ST

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Amend DA No. 2007-01 October 21, 2013 Page 2 an addendum to the previously-certified EIRs. This addendum did not identify any additional environmental impacts. The requested actions would approve the addendum to the EIR, modify the existing development agreement to reflect the proposed project, approve a vesting tentative tract map that would allow for the potential for future condominium sales of the units, and approve the site plan for the project. Additionally, after the Planning Commission hearing, a condition of approval has been recommended by staff to be added to the entitlements that require the construction of a block wall and decorative wrought iron fence along the east property line of the site, in line with an agreement reached between property owners. CITY COUNCIL AD HOC COMMITTEE FINDINGS AND RECOMMENDATIONS As a part of its deliberations at its meeting on September 16, 2013, the City Council discussed the proposed $3,000 per unit in-lieu fee for affordable housing. It was noted that this fee was based on the prior development agreement, which was approved prior to the adoption of the City's Housing Opportunity Ordinance. The Housing Opportunity Ordinance would require a significantly higher commitment to affordable housing and, thus, the Council discussed whether this fee was appropriate under today's circumstances. It is estimated that the Housing Opportunity Ordinance costs would be in the range of $12,000 per unit. In order to evaluate this issue further, the Mayor appointed an Ad Hoc Committee comprised of Council Member Sarmiento and Mayor Pro Tern Tinajero to study the issue and report its findings and recommendations. In follow up meetings and discussions the Ad Hoc Committee reviewed the history and policies as they relate to affordable housing, including looking at the fees paid by prior projects. The committee also evaluated the circumstances of this development project, including the fact that this site was originally approved for two high-rise residential towers. Additionally, it was noted that the applicant proposes to keep and re-use the existing parking garage, which saves considerable costs. And while the committee concluded that the project should include a larger commitment to affordable housing, the committee agreed that the project should not have to comply fully with the Housing Opportunity Ordinance. The committee therefore directed staff to work further with the applicant to find ways to increase the commitment to affordable housing, including exploring the concept of incorporating affordable units within the project instead of paying an in-lieu fee. The committee believed this approach would begin to implement the City's Council's commitment to affordable housing in a meaningful way. In follow up meetings and discussions, staff and the applicant explored approaches to fulfill the goals expressed by the committee. More specifically, the applicant proposed incorporating ten affordable housing units within the LOW affordability category if it were balanced by a density bonus of ten additional market-rate one-bedroom units. In other words, the 254-unit project would become 264 units, ten units of which would be set aside for affordable housing. The ten affordable units would be comprised of five one-bedroom units and five two-bedroom units. The committee found this noteworthy because the two-bedroom units would be suitable for families. The value of 75A-2