HomeMy WebLinkAbout8557RESOLUTION NO. 8557
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
APPROVING AN AFFORDABLE HOUSING COVENANT AND
REGULATORY AGREEMENT (DENSITY BONUS & INCLUSIONARY
HOUSING AGREEMENT) FOR THE PROPOSED LUGONIA VILLAGE
RESIDENTIAL PROJECT, LOCATED ON THE NORTH SIDE OF WEST
LUGONIA AVENUE, SOUTH SIDE OF A PROPOSED EXTENSION OF
PENNSYLVANIA AVENUE, AND WEST SIDE OF KARON STREET.
WHEREAS, Redlands Summit, LLC ("Applicant"), has filed an application for a Density
Bonus Agreement and Inclusionary Housing Plan for a proposed multi -family and single-family
residential development with a total of 541 dwelling units on three parcels located at north side of
Lugonia Avenue, south side of a proposed extension of Pennsylvania Avenue, and west side of
Karon Street (APNs: 0167-171-04-0000, 0167-171-05-0000, and 0167-171-06-0000); and
WHEREAS, the Applicant has filed concurrent applications for General Plan Amendment
No. 143, Amendment No. 48 to Specific Plan No. 40 (East Valley Corridor Specific Plan), Zone
Change No. 469, Tentative Parcel Map No. 20469, Tentative Tract Map No. 20490 and No. 20491,
and Commission Review & Approval Nos. 940, 941, and 942 for a residential development
located on the north side of West Lugonia Avenue, south side of Pennsylvania Avenue, and west
side of Karon Street (the "Project"); and
WHEREAS, the Applicant has submitted an Inclusionary Housing Plan in accordance with
Redlands Municipal Code Chapter 18.230 (Inclusionary Housing) and proposes to fulfill the
inclusionary housing requirements by providing twenty-eight (28) very low-income affordable
housing units within the project; and
WHEREAS, the California Legislature has consistently recognized the continuing need for
new housing units and affordable housing in California, stating in Government Code Section
65580, that "the availability of housing is of vital statewide importance, and the early attainment
of decent housing... is a priority of the highest order" and, further, that, "local... governments
have a responsibility to use the powers vested in them to facilitate the improvement and
development of housing to make adequate provision for the housing needs of all economic
segments of the community"; and
WHEREAS, the City of Redlands adopted its 6t1i Cycle Housing Element (the 2021-2029
Housing Element) on October 4, 2022, the City will implement numerous policies and programs
as outlined in the 2021-2029 Housing Element, and the City intends to rezone certain parcels
identified in the Housing Sites Inventory List to accommodate future high -density housing
including housing affordable to lower -income households; and
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WHEREAS, the Housing Sites Inventory List contained in the City's 2021-2029 Housing
Element includes two parcels (APNs 0167-171-04-0000 and 0167-171-05-0000) within the
proposed project site that are to be rezoned for future housing projects; and
WHEREAS, the proposed Project is consistent with the 2021-2029 Housing Element, and
approval of the requested Agreement pertaining to the density bonus and inclusionary housing
requirement is necessary to achieve consistency with the 2021-2029 Housing Element and goals
contained therein; and
WHEREAS, on January 23, 2024, the Planning Commission recommended to the City
Council that the Density Bonus and Inclusionary Housing Agreement be approved; and
WHEREAS, on or about February 23, 2024, notice of the City Council's public hearing for
the Project, including the Density Bonus and Inclusionary Housing Agreement, was published in
the Redlands Daily Facts by the City Clerk; and
WHEREAS, the City Council held a duly noticed public hearing on March 5, 2024, at
which interested persons had the opportunity to provide verbal and written testimony on the
Project, including the proposed Density Bonus and Inclusionary Housing Agreement; and
WHEREAS, following the public hearing on March 5, 2024, the City Council determined
that approval of the proposal is in the best interests of the public health, safety, and general welfare.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
REDLANDS AS FOLLOWS:
Section 1. Approval of Density Bonus and Inclusionary Housing Agreement. The proposed
density bonus and inclusionary housing agreement for the Lugonia Village Project ("Affordable
Housing Covenant and Regulatory Agreement") is hereby approved subject to the agreement
attached hereto as Exhibit "A" and based upon the following findings:
1. The development project would not be a hazard or nuisance to the city at large or
establish a use or development inconsistent with the goals and policies of the city's
general plan.
The proposed project for 541 dwelling units will not be a hazard or nuisance to the City of
Redlands at large. The proposed project and land use will be consistent with several
policies and actions contained in the General Plan. The proposed project will also
implement several goals and policies contained in the 2021-2029 Housing Element,
particularly for increased density for sites identified in the Housing Sites Inventory and
affordable housing. The proposed project will help the City achieve its housing goal
numbers as determined by the Regional Housing Needs Assessment as further explained
in the Housing Element.
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2. The number of dwellings can be accommodated by existing and planned infrastructure
capacities.
The proposed project for 541 dwelling units can be accommodated by existing and planned
infrastructure capacities. The City's Development Review Committee (including Land Use
Engineering staff and Municipal Utilities & Engineering Department) have reviewed the
proposed project plans, and all necessary infrastructure, public and private utilities, and
public services will be able to adequately serve the project site and vicinity.
3. Adequate evidence exists to ensure that the development of the property would result
in the provision of affordable housing in a manner consistent with the purpose and intent
of this chapter;
The proposed project for 541 dwelling units is consistent with the applicable provisions of
State density bonus law (Calif. Gov. Code Sections 65915 — 65918) and the project is
subject to a Density Bonus Agreement that is included in the project entitlements. The
development of the property will result in the provision of 28 affordable housing units for
very -low-income households in a manner consistent with the purpose and intent of the
Redlands Municipal Code as well as applicable State law.
4. In the event that the city does not grant at least one financial concession or incentive
as defined in state law in addition to the density bonus, that additional concessions or
incentives are not necessary to ensure affordable housing costs; and
The proposed project for 541 dwelling units does not require any financial concessions or
incentives from the City. There are no additional concessions or incentives that will be
necessary to ensure affordable housing costs. The proposed Density Bonus Agreement will
ensure that the project provides housing for very -low-income households in accordance
with State law.
5. There are sufficient provisions to guarantee that the lower and very low income units
would remain affordable in the future.
The proposed project for 541 dwelling units includes a Density Bonus Agreement that will
ensure the project provides housing for very -low-income households in accordance with
the granted density bonus and applicable State law. The Density Bonus Agreement
includes terms and provisions to ensure that only eligible very -low-income residents may
reside in the affordable housing units within the development and have the benefit of
affordable rents.
Section 2. Effective Date. This Resolution shall become effective upon adoption.
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ADOPTED, SIGNED AND APPROVED this 5t11 day of March, 2024.
Eddie Tejeda, Mayor
ATTEST:
e Donaldson, City Clerk
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I, Jeanne Donaldson, City Clerk of the City of Redlands, do hereby certify that the foregoing
Resolution was duly adopted by the City Council at a regular meeting thereof held on the 5th day
of March, 2024, by the following vote:
AYES: Councilmembers Barich, Davis, Guzman -Lowery, Saucedo; Mayor Tejeda
NOES: None
AB SENT: None
ABSTAINED: None
a
e Donaldson, City Clerk
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EXHIBIT A
Affordable Housing Covenant and Regulatory Agreement
Proposed "Lugonia Village" Housing Development
[ Attached ]
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City Clerk
City of Redlands
P. O. Box 3005
Redlands, CA 92373
SPACE ABOVE LINE FOR RECORDER'S USE ONLY
EXEMPT FROM RECORDING FEES (GOVT. CODE § 27383)
NO DOCUMENTARY TRANSFER TAX (R&T CODE § 11922)
APN: 0167-171-04-0000, 0167-171-05-0000, AND 0167-171-06-0000
CITY OF REDLANDS
AFFORDABLE HOUSING COVENANT AND REGULATORY AGREEMENT
(DENSITY BONUS & INCLUSIONARY HOUSING FOR LUGONIA VILLAGE)
This Affordable Housing Covenant and Regulatory Agreement ("Agreement") is entered
into as of this day of , 2024, by and between the City of Redlands, a California
municipal corporation ("City"), and Redlands Summit, LLC, a California limited liability
company ("Developer"). City and Developer are each sometimes individually referred to herein
as a "Party" and, together, as the "Parties."
RECITALS
A. Developer is the owner of approximately 24.24 acres of real property, comprising
of four separate parcels located at the northwest corner of West Lugonia Avenue and Karon Street
(APNs: 0167-171-04-0000, 0167-171-05-0000, and 0167-171-06-0000), in Redlands, California,
which is more particularly described in the legal description attached hereto as Exhibit "A" and
incorporated herein by reference ("Property").
B. Developer is constructing a multi -family residential housing project on the
Property, comprising of four hundred fifty-one (451) apartment units ("Apartment Units"),
seventy-two (72) townhome units ("Townhome Units"), and eighteen (18) single family
residences ("SFR Units"), for a total of five hundred forty-one (541) residential units (the
"Project"), as more particularly described in the following Application Numbers: General Plan
Amendment No. 143, Zone Change No. 469, Specific Plan No. 40 Amendment No. 48, Tentative
Tract Map Nos. 20490 and 20491, Tentative Parcel Map No. 20469, and Commission Review and
Approval Nos. 940 and 941 (collectively, the "Project Applications").
C. In connection with the Project, Developer proposes to restrict a total of five
percent (5%) of the total units in the Project to Very Low Income Households for an Affordable
Rent to be eligible for the benefits of this Agreement, as further specified herein.
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D. Provided that Developer complies with all of the requirements of the California
Density Bonus Law (Government Code Section 65915, et seq.), and Chapter 18.228 of the
Redlands Municipal Code, Developer is eligible to obtain a density bonus, incentives and
concessions, or waivers, as authorized by law. Accordingly, City desires to enter into this
Agreement in accordance with California law and the Redlands Municipal Code.
E. The requirements of this Agreement are also intended to satisfy the requirements
of the Inclusionary Housing Ordinance in Chapter 18.230 of the Redlands Municipal Code.
Developer agrees and understands that the affordability covenants set forth in this Agreement
shall be enforceable under the Density Bonus Law and the Inclusionary Housing Ordinance, and
that the terms and conditions set forth in this Agreement are subject to compliance with the
Density Bonus Law and the Inclusionary Housing Ordinance.
F. For purposes of complying with the Density Bonus Law, and the Redlands
Municipal Code, and facilitating development of affordable housing within the City, City agrees
to the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual promises contained herein, the Parties
agree as follows:
AGREEMENT
1. Recitals. The foregoing recitals are true and correct, and are incorporated herein as
a substantive part of this Agreement.
2. Definitions. The following terms when used in this Agreement shall have the
meanings ascribed to them:
(a) "Adjusted for family size appropriate to the unit" shall have the
meaning set forth by Health and Safety Code Section 50052.5(h).
(b) "Affordable Rent" means the maximum Monthly Rent that may be
charged to and paid by an Eligible Household for the Affordable Units, as required by the terms
of this Agreement, and which shall not exceed the amount of Affordable Rent authorized by
California Health and Safety Code Section 50053 and pursuant to implementing regulations
published by the California Department of Housing and Community Development, as determined
from the Median Income for San Bernardino, as defined below. The Affordable Rent shall include
a reasonable utility allowance for utilities paid by the household, which shall be updated no less
than annually, based on the amount published by the Housing Authority for the County of San
Bernardino for the applicable year.
(c) "Affordable Unit" means a unit restricted for occupancy by a
Qualifying Household at an Affordable Rent.
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65915, et seq.
(d) "Density Bonus Law" means California Government Code section
(e) "Household" means all persons residing in a Unit.
(f) "Inclusionary Housing Ordinance" means Redlands Municipal
Code Chapter 18.230.
(g) "Median Income" means the San Bernardino County, California
area median income, adjusted for family size appropriate to the unit pursuant to California Health
and Safety Code Section 50052.5(h), as periodically published by California Department of
Housing and Community Development .
(h) "Monthly Rent" means the total of monthly payments for: (a) use
and occupancy of each Affordable Unit and land and facilities associated therewith; (b) any
separately charged fees or service charges assessed by Developer which are required of all
tenants, other than security deposits, application fees or credit check fees; (c) a reasonable
allowance for an adequate level of service of utilities not included in (a) or (b) above, including
garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration
fuels, but not including telephone or cable service, to the extent applicable and charged to tenant;
and, (d) possessory interest, taxes or other fees or charges assessed for use of the land and
facilities associated therewith by a public or private entity other than Developer. In the event that
certain utility charges are paid by the landlord rather than the tenant, no utility allowance shall be
deducted from the rent for that type of utility charge.
(i) "Project" means that certain affordable residential development as
more particularly described in Recital B and Section 2 of this Agreement.
(j) "Qualifying Household" means a household whose income does
not exceed the maximum income allowable for a Very Low Income Household.
(k) "Site Plan" shall mean the drawings, maps, and depictions set forth
in Exhibit B, and approved by the City, which is attached hereto and incorporated herein by
reference. The Site Plan shall conform to the Inclusionary Housing Plan submitted by Developer
as required under the Inclusionary Housing Ordinance
(1) "Very -Low Income Household" means a household with income
that does not exceed fifty percent (50%) of the area median income for the City of Redlands,
adjusted for family size appropriate for the unit, as may be updated by the State of California in
accordance with California Health and Safety Code Section 50105.
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3. Affordable Housing Requirements.
(a) Project. Developer shall develop, or cause to be developed, the
Affordable Units allowed by the Density Bonus in accordance with the approvals of the Project
Applications (the "Entitlements") and this Agreement.
(b) Affordable Units. Developer covenants and agrees that it shall rent
not less than twenty-eight (28) units from the Apartment Units in the Project as Affordable Units.
The rental restrictions and conditions described in this Agreement shall run with the land and
shall be binding on all successor owners of the Property. City is given the express authority by
Developer to enforce the restrictions and conditions described in this Agreement. Except as
provided herein, the Affordable Units shall be rented, marketed, managed, maintained, and treated
in the same manner as all other units on the Property.
(c) Affordable Rent. The Affordable Units shall be rented exclusively
to Qualifying Households at a Monthly Rent that does not exceed Affordable Rent for a
Qualifying Household. Affordable Rent, determined on a monthly basis, shall not exceed one -
twelfth (1/12) of thirty percent (30%) of fifty percent (50%) of the Median Income for the County
of San Bernardino, as published in Title 25, California Code of Regulations, Section 6932 by the
California Department of Housing and Community Development, as may be amended from time
to time ("Affordable Rent"). The Affordable Rent shall be adjusted for family size appropriate
for the unit in accordance with California Health and Safety Code Section 50052.5. Affordable
Rent may not be increased more frequently than annually to reflect increases in area median
income.
(d) Minimum Development Standards For Affordable Units. The
Affordable Units shall be constructed with the same exterior appearance and interior features,
fixtures, and amenities, and shall use the same type and quality of materials as provided for the
other units in the Project.
(e) Designation of Affordable Units. The Affordable Units shall be
reasonably disbursed throughout the Property. The Affordable Units shall be reasonably
disbursed throughout the entire Project. The Site Plan shall include a list of designated
Affordable Units, which shall be subject to modification only upon written consent from the City.
Any request to designate Affordable Units on a floating basis shall be subject to review and
approval of City, which shall not be unreasonably withheld.
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(f) Unit Mix for Affordable Units. The Affordable Units shall
comprise of the following minimum number of Apartment Units:
Unit Type
Quantity of Affordable Units
Studio
2
1 Bedroom
12
2 Bedroom
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(g) Determination of Household Income.
(i) Developer shall determine whether a prospective tenant is a
Qualifying Household for an Affordable Unit by requiring the household complete a form that
verifies the income of the household ("Income Certification Form").
(ii) The Income Certification Form shall be certified or
recertified as follows: (A) at the initial application for occupancy, (B) at least once every twelve
(12) months during the Term, and (C) each renewal of a lease for an Affordable Unit.
(h) Verification. Developer shall make a good faith effort to verify the
accuracy of income information provided in any Income Certification Form to verify an applicant
or existing occupant is a Qualifying Household in accordance with California law, and taking one
or more of the following steps, as reasonably required or indicated.
(i) Obtain an income tax return and copy of each W-2 Wage
and Earnings Statement for the most recently concluded income tax year;
(ii) Contact a credit reporting agency or conduct a similar
search;
(iii) Obtain an income verification form from current
employer(s) of the applicant(s) or existing tenant(s);
(iv) Obtain an income verification form from the United States
Social Security Administration or the California Department of Social Services, if the applicant(s)
or existing tenant(s) receive assistance from either of such agencies; or
(v) If the applicant or existing tenant is an adult who is
unemployed and has no such income tax return, obtain another form of independent verification.
(i) Evidence. All verification information shall only be obtained by
Developer after obtaining written consent from the applicant or existing tenant for the release of
such information to Developer. Failure to consent in writing to the release of such income
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verification information to Developer may disqualify an individual for occupancy of an
Affordable Unit or be grounds for termination of a tenancy in an Affordable Unit.
(j) Tenant Selection Policies and Criteria. The Developer shall adopt
written tenant selection policies and criteria applicable to the Affordable Unit that:
(i) are consistent with the purpose of providing affordable
rental housing for Qualifying Households at an Affordable Rent;
(ii) are reasonably related to tenant eligibility and ability to
perform the obligations of the lease for an Affordable Unit;
(iii) provide for the selection of tenants from a written waiting
list in the chronological order of their application, insofar as is practicable;
(iv) give prompt written notice to any rejected applicant of the
grounds for rejection;
(v) provide for all of the Affordable Units to be available for
occupancy on a continuous basis to Qualifying Households;
(vi) do not give preference to any particular class or group of
persons in leasing or renting the Affordable Unit except to the extent that a tenant must be a
Qualifying Household; and
(vii) provide for notice to the City when a vacancy arises in an
Affordable Unit.
The tenant selection policies and criteria prepared in accordance with this Section shall be
set forth in the Management Plan required under this Agreement.
(k) Changes in Household Income. A tenant who initially qualified as a
Very Low Income Household, but whose income subsequently exceeds the initially qualifying
income limit for a Very Low Income Household shall continue to be considered a Qualifying
Household provided that (A) any vacant residential unit in the Project of comparable or smaller
size is rented to a qualifying Very Low Income Household and (B) such over -income tenant shall
not be required to pay rent that exceeds an amount that is the least of the amount that would be
payable by the tenant under (i) low income housing tax credit regulations, (ii) State or local law or
(iii) thirty percent (30%) of the household's adjusted gross income.
(1) Prohibition Against Discrimination. Developer shall not
discriminate against any tenant or potential tenant on the basis of sex, color, race, religion,
ancestry, national origin, age, pregnancy, marital status, family composition, sexual orientation,
source of income, or the potential or actual occupancy of minor children. Developer further
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agrees to take affirmative action to ensure that no such person is discriminated against for any of
the above -mentioned reasons.
(m) Management Plan. Developer shall prepare a management plan for
the Affordable Units that provides for the implementation of the requirements in this Agreement,
including but not limited to the marketing of the Affordable Units, tenant selection criteria and
process, waiting list management, verification of income, setting utility allowances for Affordable
Rent, and any other matter related to management of the Affordable Units ("Management Plan").
The Management Plan shall be submitted to the City Manager, or its designee, not less than thirty
(30) days prior to a request for a Certificate of Occupancy. The City Manager, or designee, shall
have thirty (30) days to approve the Management Plan, which approval shall not be unreasonably
withheld.
(n) Annual Report. On or before the annual anniversary of the
recording of this Agreement, and the same date each year thereafter, Developer shall provide the
City with an annual report that sets forth the number of Affordable Units that are rented or vacant,
the dates of any vacancies and new leases by each Affordable Unit, certification of compliance
with all requirements to verify income for Qualifying Households, and any other information
reasonably required by the City to ensure compliance with this Agreement.
4. Developer Covenant Regarding Lease of Affordable Units. Developer, for
itself, its successors, assignees and affiliates, covenants and agrees that, if any Affordable Unit is
rented or leased during the Term, the rental or lease of the Affordable Unit shall be accomplished
through a written lease agreement and all of the following restrictions shall apply:
(i) Developer shall provide a legible copy of this Agreement to
each prospective tenant of any Affordable Unit, prior to entering into a lease with such tenant.
(ii) The lease for each Affordable Unit shall expressly state that
the lease is subject and subordinate to this Agreement and shall incorporate each and every
provision of this Agreement, either expressly or by reference.
(iii) Developer shall not lease an Affordable Unit to any
occupant with any family relationship to Developer or who owns, directly or indirectly, any
interest in the ownership. For purposes of this section, indirect ownership by an individual shall
mean ownership by a family member, ownership by a corporation, partnership, estate or trust in
proportion to the ownership or beneficial interest in such corporation, partnership, estate or trust
held by the individual or a family member, and ownership, direct or indirect, by a partner of the
individual.
(iv) Developer shall: (a) maintain and operate all units on the
Property so as to provide decent, safe and sanitary housing consistent with federal housing quality
standards and the Redlands Municipal Code; (b) make any required repairs or provide any
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required cleanup; and (c) provide the Affordable Units with the same levels of services and
maintenance as are provided to any of the other dwelling units on the Property.
(v) A tenant occupying an Affordable Unit may not sublet the
unit without the written permission of both Developer and City. The City shall not grant
permission to lease, rent, or sublet the Affordable Unit if it finds that the prospective tenant or
occupant is not a Qualifying Household. Any individual who subleases an Affordable Unit in
violation of the provisions of this Agreement shall be required to forfeit to City all monetary
amounts so obtained.
5. Density Bonus; Concessions; Waivers; Parking. In exchange for the
agreement to the construct the Affordable Units on the terms and conditions set forth herein, and
subject to the requirements of the Density Bonus Law, the City has agreed to the following:
(a) Density Bonus. The Project may have a total of five hundred forty-
one (541) units. The Apartment Units and Townhome Units may be constructed at a density of
27.2 dwelling units per acre, which is in excess of the maximum allowable density of 27 dwelling
units per acre. As a result, the Project may have four hundred fifty-one (451) Apartment Units,
seventy-two (72) Townhome Units, and eighteen (18) SFR Units, as identified in the Project
Applications.
(b) Concession. The City grants a concession relieving the Project from
the requirement for landscaped island for parking spaces under Redlands Municipal Code Section
18.168.210(A)(13).
(c) Waivers. The City grants the following waivers to the extent they
would preclude development of the Project at the density allowed under this Agreement:
(i)
The Townhome Units are granted waivers as follows:
(A) The Townhome Units may utilize a minimum building
separation of ten feet (10'). This is a waiver of requirements in
Redlands Municipal Code Section 18.60.160(A).
(B) The Townhome Units may have a setback of ten feet
(10') throughout the Project. This is a waiver of Redlands
Municipal Code Section 18.60.160(A)(3), which requires that, for
buildings placed at an angle with each other, each yard standard
may be reduced up to ten feet (10'), provided that the average
required space between buildings is maintained, except that main
buildings shall be no closer than twenty feet (20') at the closest
point.
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(C) The Townhome Units are not required to have increased
setbacks required under Redlands Municipal Code Section
18.60.160(B), provided the Townhome Units comply with all other
setback requirements.
(D) An accessory building (the pool house) may be located
no less than ten feet (10') from a main building, and the front yard
of main buildings are provided a minimum setback from garages of
thirty feet (30'). This is a waiver of requirements in Redlands
Municipal Code Section 18.60.160(C) that require the distance
between buildings or wings shall not be less than the sum of the
yard requirements for each building or wing; main buildings shall in
no instance be closer than ten feet (10'); and, main buildings and
accessory buildings shall in no instance be closer than fifteen feet
(15'), except that the front yard of any main building facing a
garage or carport shall be a minimum of forty feet (40').
(ii) The Apartment Units are granted a waiver from Redlands
Municipal Code Section 18.60.190, which requires a setback of five feet (5') for a one story
accessory structure. Under this waiver, carports located adjacent to the rear property line may
have a reduced setback to approximately two feet (2').
(d) Parking Allowance Pursuant to Density Bonus Law. The Project
shall comply with the parking requirements for the Apartment Units set forth in the Density
Bonus Law, including the use of uncovered parking. The Project shall provide parking spaces in
accordance with the following ratios:
Unit Type
Number of Units
Ratio of Parking/#
Quantity of Parking
of Units
Studio
21
1.0
21
1 Bedroom
200
1.0
200
2 Bedroom
230
1.5
345
Total
451
1.25
566
6. Permits and Processing; Compliance with Laws.
(a) Developer, at its sole cost and expense, shall secure or cause to be
secured any and all permits that may be required by City or any other federal, state, or local
government entity having or claiming jurisdiction over the Property or Project. Upon securing
any and all permits, Developer shall carry out and perform the development, construction,
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management, maintenance and rental of the Project in conformity with all applicable federal,
state, and local laws and regulations, and all conditions of approval issued for the Project.
(b) City shall have no responsibility for the construction, installation,
management, operation or maintenance of the Project.
(c) Developer acknowledges and understands that, except as
specifically provided for herein, this Agreement shall not constitute an amendment, modification,
enlargement or other change to the Entitlements. Developer shall be obligated and solely
responsible for applying for, obtaining, and complying with any further approvals or permits
necessary.
(d) Nothing contained in this Agreement shall require Developer or
City to do anything contrary to or refrain from doing anything required by federal or state law, or
regulations promulgated thereunder, which are applicable to the construction, management,
maintenance, and rental of the Affordable Units and the Project.
(e) Developer agrees that this Agreement requires compliance with the
Density Bonus Law and the Inclusionary Housing Ordinance. Unless specifically prohibited by
law, in the event of a conflict between the Density Bonus Law and the Inclusionary Housing
Ordinance, the provisions which require a lower amount of Affordable Rent or additional
protections for renters of Affordable Units shall apply.
7. No Further Incentives, Concessions, or Waivers. Developer acknowledges
and agrees that no other incentives, concessions, waivers or other request has been made or is
required by the City in connection with the request for a Density Bonus, and that City has fully
satisfied any duty the City may have under the Redlands Municipal Code, the Density Bonus
Law, or any other law or regulation applicable to the Project, to provide any development
incentive, concession, or waiver as it relates to the Project, including the waiver or reduction of
any building, zoning, or other requirement. By this Agreement, Developer releases any and all
claims Developer may have against the City related to or arising from, in any way, City's
obligation to waive requirements of or provide development incentives or concessions pursuant to
any state, federal, or local law, rule, or regulation applicable to the Project.
8. Term. The Term of this Agreement shall be fifty-five (55) years
commencing upon the date of the City's issuance of the first certificate of occupancy for the
Project.
9. Agreement to be Recorded; Priority. This Agreement shall be recorded in
the Official Records of San Bernardino County, California as senior, non -subordinate covenants
and as an encumbrance running with the land for the full Term of this Agreement, within thirty
(30) days of approval, and prior to issuance of a building permit for the Project. In no event shall
this Agreement be made junior or subordinate to any deed of trust or other document providing
financing for the construction or operation of the Project or any other lien or encumbrance
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whatsoever for the entire fifty-five (55) year Term of this Agreement. Notwithstanding anything
to the contrary herein, the City shall have the discretion to subordinate this Agreement to
regulatory restrictions of public lender(s) restricting occupancy of units in the Project to
affordable housing covenants agreeable to the City. Upon a determination by the City Manager
that the conditions in this Section have been satisfied, the City Manager or the City Manager's
designee will be authorized to execute the approved subordination agreement without the
necessity of any further action or approval by the City Council.
10. Liquidated Damages. Developer acknowledges that the City is
implementing the goals objectives and policies of the City's General Plan Housing Element, and
that City has granted an incentive and/or concession to Developer in recognition of Developer's
agreement to provide the Affordable Units as set forth in this Agreement. If Developer does not
rent the units as Affordable Units in accordance with the provisions of this Agreement, Developer
shall be in default of this Agreement and the City will suffer damages. However, it is extremely
difficult and impractical to ascertain the extent of the damages to City, therefore, in addition to
any other legal or equitable remedies, the City may have, Developer and the City agree that if the
Affordable Units in the Project are not rented with Affordable Rents in accordance with the
provisions of this Agreement, as liquidated damages, the City shall be entitled to recover from
Developer the amount of any rents received by Developer from any units in excess of the limits of
Affordable Rent. This liquidated damages provision relates solely and exclusively to a breach of
this Agreement arising from renting the Affordable Units on terms that exceed the limits of
Affordable Rent.
11. Indemnification. Developer shall defend, indemnify and hold harmless the
City and its officers, agents, employees, representatives, and volunteers (collectively,
"Indemnitees") from and against any loss, liability, claim or judgment relating in any manner to
this Agreement. Developer shall not be required to indemnify and hold harmless Indemnitees for
liability attributable to the active negligence or willful misconduct of Indemnitees, provided such
active negligence is determined by agreement between the parties or by the findings of a court of
competent jurisdiction. In instances where an Indemnitee is shown to have been actively
negligent and where Indemnitees' active negligence accounts for only a percentage of the liability
involved, the obligation of Developer will be for that entire portion or percentage of liability not
attributable to the active negligence of Indemnitees.
12. City's Right to Inspect Affordable Units and Documents. The City may
inspect the Affordable Units at any reasonable time for so long as this Agreement remains in
effect, to determine Developer's compliance with this Agreement.
13. Defaults and Remedies. The City shall have the right to specifically enforce
each and every covenant, condition, restriction, and provision in this Agreement and Developer
hereby agrees and acknowledges that money damages are an inadequate remedy for any default
under this Agreement.
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(a) Default. A party shall be in default of this Agreement if it breaches
any term or provision of this Agreement, and fails to correct the violation within thirty (30) days
after receipt of notice from the other party; provided, however, if a longer period to cure the
violation is reasonably necessary, and the party in breach of the Agreement is diligently pursuing
a cure, then it shall have a reasonable time necessary to cure the breach, but not to exceed ninety
(90) days.
(b) Remedies. Upon a default of this Agreement, City may institute any
appropriate legal actions or proceedings necessary to enforce this Agreement, including but not
limited to actions for injunctive relief or damages. The remedies allowed under this Agreement
include enforcement of all requirements of Developer to comply with the Redlands Municipal
Code, and any and all remedies allowed under the Redlands Municipal Code for violations of its
provisions.
14. Waiver. Failure by a Party to insist upon the strict performance of any of
the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights
upon the default of the other Party, shall not constitute a waiver of such Party's right to insist and
demand strict compliance by the other Party with the terms of this Agreement thereafter.
15. Attorney's Fees. In the event any action is commenced to enforce or
interpret the terms or conditions of this Agreement, the prevailing Party shall, in addition to any
costs and other relief, be entitled to the recovery of its reasonable attorney's fees, including fees
for use of in-house counsel by a Party.
16. Time. Time is of the essence in this Agreement.
17. Notices. Any approval, disapproval, demand, document or other notice
("Notice") which either Party may desire to give to the other Party under this Agreement must be
in writing and may be given either by (i) personal service, (ii) delivery by reputable document
delivery service such as Federal Express that provides a receipt showing date and time of
delivery, or (iii) mailing in the United States mail, certified mail, postage prepaid, return receipt
requested, addressed to the address of the party as set forth below, or at any other address as that
party may later designate by Notice:
Developer: Redlands Summit, LLC
2459 Huntington Drive
San Marino, California 91108
City: City of Redlands
35 Cajon Street
Redlands, California 92373
Attention: City Clerk
Such addresses may be changed by notice to the other party given in the same manner as provided
above.
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18. Third Party Beneficiaries. The Parties acknowledge and agree there are
no third party beneficiaries of this Agreement. Agency shall have full right and ability to enforce
each and every covenant and restriction in this Agreement. No other person or entities shall have
any right of action hereunder.
19. Successors and Assigns. This Agreement shall run with the land, and all
of the terms, covenants and conditions of this Agreement shall be binding upon Developer and
City and the permitted successors and assigns of Developer and City. Whenever the terms
"Developer" or "City" are used in this Agreement, such terms shall include any other successors
and assigns as herein provided.
20. Project as Private Undertaking. It is specifically understood and agreed by
and between the Parties hereto that the development of the Project is a private development, that
neither Party is acting as the agent of the other in any respect hereunder, and that each Party is an
independent contracting entity with respect to the terms, covenants, and conditions contained in
this Agreement. No partnership, joint venture, or other association of any kind is formed by this
Agreement. The only relationship between City and Developer is that of a government entity
regulating the development of private property and the Developer of such property.
21. Entire Agreement. This Agreement and all of its Exhibits set forth and
contain the entire understanding and agreement of the Parties, and there are no oral or written
representations, understandings or ancillary covenants, undertakings, or agreements which are not
contained or expressly referred to herein. No testimony or evidence of an such representations,
understandings, or covenants shall be admissible in any proceedings of any kind or nature to
interpret or determine the terms or conditions of this Agreement.
22. Partial Invalidity. If any provision of this Agreement shall be declared
invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining
provisions hereof shall not in any way be affected or impaired.
23. Interpretation and Governing Law. This Agreement shall be construed as a
whole according to its fair language and common meaning to achieve the objectives and purpose
of the Parties hereto, and the rule of construction that ambiguities are to be resolved against the
drafting party shall not be employed in interpreting this Agreement. This Agreement and any
dispute arising hereunder shall be governed and interpreted in accordance with the laws of the
State of California.
24. Amendment. This Agreement may not be changed orally, but only by an
agreement in writing signed by Developer and City. The City Manager, or the City Manager's
designee, may execute an amendment to this Agreement that is necessary to implement the
provisions stated herein; provided, however, that any relating to the term, number or percentage
or type of Affordable Units, any of the income or rental restrictions under this Agreement, or the
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number or type of any incentives or concessions given by the City, must be approved by the City
Council.
25. Counterparts. This Agreement may be executed in two or more separate
counterparts, each of which, when so executed, shall be deemed to be an original. Such
counterparts shall, together, constitute and shall be one and the same instrument. This Agreement
shall not be effective until the execution and delivery by the Parties of at least one set of
counterparts. The Parties hereunder authorize each other to detach and combine original
signature pages and consolidate them into a single identical original. Any one of such completely
executed counterparts shall be sufficient proof of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
and year first set forth above.
DEVELOPER:
Redlands Summit, LLC, a California limited liability
company
By:
Its:
THE CITY OF REDLANDS, a California municipal
corporation
By:
Eddie Tejeda, Mayor
ATTEST:
Jeanne Donaldson, City Clerk
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EXHIBIT A
DESCRIPTION OF SUBJECT PROPERTY
REAL PROPERTY IN THE CITY OF REDLANDS, COUNTY OF SAN BERNARDINO,
STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:
PARCEL 1 (APN: 0167-171-04-0-000)
THAT PORTION OF THE NORTHEAST 1/2 OF SECTION 21 TOWNSHIP 1 SOUTH, RANGE
3 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF REDLANDS,
COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO
GOVERNMENT SURVEY, DESCRIBED AS FOLLOWS:
COMMENCING 60 RODS WEST OF THE SOUTHEAST CORNER OF THE NORTH 1/2 OF
SAID SECTION 21; THENCE NORTH 80 RODS; THENCE WEST 20 RODS; THENCE SOUTH
80 RODS; THENCE EAST 20 RODS TO THE POINT OF BEGINNING.
PARCEL 2 (APN: 0167-171-05-0-000)
THE EAST 7 1/2 ACRES OF THE SOUTHWEST 1/4 OF THE NORTHEAST 1/4 OF SECTION
21, TOWNSHIP 1 SOUTH, RANGE 3 WEST OF THE SAN BERNARDINO BASE AND
MERIDIAN, IN THE CITY OF REDLANDS, COUNTY OF SAN BERNARDINO, STATE OF
CALIFORNIA, ACCORDING TO THE GOVERNMENTAL SURVEY, EXCEPTING ANY
PORTION WITHIN LUGONIA AVENUE.
PARCEL 3 (APN: 0167-171-06-0-000)
THE WEST 1/2 OF THE EAST 15 ACRES OF THE SOUTHWEST 1/4 OF THE NORTHEAST
1/4 OF SECTION 21, TOWNSHIP 1 SOUTH, RANGE 3 WEST, SAN BERNARDINO BASE
AND MERIDIAN, IN THE CITY OF REDLANDS, COUNTY OF SAN BERNARDINO, STATE
OF CALIFORNIA, ACCORDING TO GOVERNMENT SURVEY, DESCRIBED AS FOLLOWS:
COMMENCING AT A POINT ON THE SOUTH LINE OF THE NORTHEAST 1/4 OF SAID
SECTION, 95 RODS WEST OF THE SOUTHEAST CORNER OF SAID 1/4 SECTION;
THENCE NORTH 80 RODS; THENCE WEST 15 RODS; THENCE SOUTH 80 RODS;
THENCE EAST 15 RODS TO THE BEGINNING.
EXCEPTING THE SOUTH 30 FEET FOR ROAD PURPOSES.
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EXHIBIT B
SITE PLAN
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