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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />FEBRUARY 17, 20'15 <br />TITLE: <br />INCLUSIONARY HOUSING AGREEMENT <br />WITH C &C N. HARBOR, LLC FOR A NEW <br />MIXED USE DEVELOPMENT AT 1208 <br />NORTH HARBOR BOULEVARD — <br />(STRATEGIC PLAN NOS. 3,2; 3,5; 5, 3; 5, 4) <br />-1 <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />0 =10..r F <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1� Reading <br />❑ Ordinance on 2 "d Reading <br />❑ Implementing Resolution <br />❑ Set Public Bearing For <br />CONTINUED TO <br />FILE NUMBER <br />Approve an Inclusionary Housing Agreement with C &C N. Harbor, LLC and the payment of an in- <br />lieu fee for a mixed -use development. <br />CITY COUNCIL ACTION <br />On February 3, 2015, the City Council affirmed the Planning Commission's action approving <br />Vesting Tentative Tract Map No. 2014 -01 to allow a subdivision for individual lots and <br />condominiums for a mixed -use commercial and residential project consisting of 15 live /work units <br />and 95 single - family detached homes at 1205 North Harbor Boulevard in the Harbor Mixed Use <br />Transit Corridor (SP2) zoning district. <br />DISCUSSION <br />The applicant proposes a subdivision in conjunction with a 110 -unit mixed -use development <br />consisting of 15 live /work units and 95 single - family residences. In addition to the action taken by <br />the Planning Commission, the applicant is proposing to satisfy the Housing Opportunity <br />Ordinance (HOO) by payment of an in -lieu fee. The H00 allows payment of a fee if substantial <br />evidence supports that the cost of providing inclusionary units on -site would substantially exceed <br />the amount of the in -lieu fee. The amount of the fee is based on the affordability gap associated <br />with fulfilling the required affordable housing units on -site within the development. A calculation <br />was performed to determine the fee amount. The fee calculation is based on the affordability gap <br />of $91,000 per three - bedroom unit (8 units) and $83,000 per four - bedroom unit (9 units). <br />Together, these gaps result in a total in -lieu fee of $1,475,000 to be paid prior to issuance of a <br />building permit for any portion of the project. Staff and the applicant have evaluated the request <br />and determined that including affordable units in an urban infill project such as the subject site <br />could be more expensive than paying the in -lieu fee. The in -lieu fee is measured solely off the <br />affordability gap between the market sale price and the restricted moderate - income sale price <br />(Exhibit 1). <br />25G -1 <br />