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HomeMy WebLinkAboutS31 - Lower Bayview Landing - Senior Affordable HousingGVIAWLAGE,�flA NO- -5� � CITY OF NEWPORT BEACH CITY ATTORNEY'S OFFICE TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT H. BURNHAM, CITY ATTORNEY RE: LOWER BAYVIEW LANDING SENIOR AFFORDABLE HOUSING MOU DATE: DECEMBER 11, 2001 The Circulation Improvement and Open Space Agreement did not specify the extent, if any, of the "affordable housing" that The Irvine Company (Company) would be required to construct in conjunction with development of the residential parcels. Assistant City Manager Sharon Wood has been meeting with representatives of The Irvine Company (Company) in an effort to resolve the confusion created by CIOSA relative to the provision of affordable housing in conjunction with development of the CIOSA parcels. City staff and representatives of the Company have developed a proposal to resolve the confusion through the processing and construction of a fully affordable 150 unit senior project on Lower Bayview Landing (location map attached). This office has prepared a Memorandum of Understanding (copy attached) that generally describes the obligations of the City and the Company relative to this project RECOMMENDATION the City Council authorize the Mayor to sign the MOU. Burnham MEMORANDUM OF UNDERSTANDING LOWER BAYVIEW LANDING AFFORDABLE HOUSING This Memorandum of Understanding (MOU), effective upon signing by the City of Newport Beach (City) and The Irvine Company (Company), is made with reference to the following: A. City and Company have entered into the Circulation Improvement and Open Space Agreement ( "CIOSA "), pursuant to which Company dedicated certain identified parcels of open space to City and funded significant circulation improvements, in return for the right to develop parcels (the " CIOSA Residential Projects ") in accordance with the City's General Plan. B. The City did not impose specific affordable housing requirements on any of the CIOSA Residential Projects and the Company did not produce any "affordable" housing units within the CIOSA Residential Projects. C. City and Company desire to eliminate the confusion created by CIOSA.by cooperating in the planning, processing and construction of senior affordable housing units (Project) on the Lower Bayview Landing parcel ( Bayview). D. The Parties wish to adopt this MOU to establish the general parameters of the Project and the respective duties of each Party relative to the planning, processing, and construction of the Project. UNDERSTANDING The Parties agree as follows: 1. City and Company agree that Company has, pursuant to CIOSA, a vested right, subject obtaining a Use Permit, to construct up to 120 units of senior citizen housing on the parcel commonly known as Lower Bayview Landing ( "Bayview"). City and Company also agree that the intent of the zoning and general plan designations for the site is that the Company is authorized to construct "affordable" senior housing on Bayview. 2. In consideration of City's commitments in this MOU, Company commits to have a qualified builder/ developer (the "Builder") prepare plans for, and submit an application (the "Application") for a Use Permit and a Coastal Development Permit authorizing construction, of a fully "affordable" senior citizen housing project (Project) on Bayview. The application shall propose construction of the 120 units specified in CIOSA and may propose an additional 30 units pursuant to the "density bonus" provisions of the Land Use and Housing Element. Company shall, through the Builder, diligently pursue all approvals and permits necessary to construct the Project. 3. In consideration of Company's commitments, City agrees that the construction of the Project shall fully satisfy all of Company's affordable housing obligations relative to the CIOSA Residential Projects. City acknowledges that Company has, on the date of approval of this MOU, no further unmet affordable housing obligations in the City. 4. City also agrees to expeditiously process the application and any request for permit or approval submitted by Company or the Builder, or their agents, relative to the Project. 5. City acknowledges that the Fashion Island Planned Community Development Plan and District Regulations (Ordinance No. 87 -45, Statistical Analysis, footnote 1) provide that 30,000 square feet of general retail entitlement in Fashion Island becomes 2 available for use "upon commitment of Bayview Landing for senior citizen housing purposes" (the "30,000 Square Feet"). 6. City acknowledges that this MOU, and Company's commitment to the Project, is contingent on the City, before issuance of the first building permit for the Project, taking such action, if any, as. it deems necessary to allow the utilization of the 30,000 Square Feet within Newport Center - Fashion Island. Company acknowledges that (1) this MOU does not bind the City Council to take such action and (2) any such action may' condition use of the 30,000 Square Feet upon completion of construction of the Project. 7. Company and City agree that the availability of funding, the demand for housing and other factors may influence the feasibility of the Project. Accordingly, Company shall not be required to proceed to construct, or approve construction of, the Project, if Company determines that market conditions make the Project financially infeasible. Company will, prior to making any such determination, meet and confer with City regarding the factor supporting that determination and the options available to City and Company to mitigate or eliminate those factors. City of Newport Beach The Irvine Company By By Its Its LO Its Lower Bayview Location Map