HomeMy WebLinkAbout25G - AGMT - INCLUSIONARY HOUSING 1206 N HARBORREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
FEBRUARY 17, 20'15
TITLE:
INCLUSIONARY HOUSING AGREEMENT
WITH C &C N. HARBOR, LLC FOR A NEW
MIXED USE DEVELOPMENT AT 1208
NORTH HARBOR BOULEVARD —
(STRATEGIC PLAN NOS. 3,2; 3,5; 5, 3; 5, 4)
-1
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
0 =10..r F
❑ As Recommended
❑ As Amended
❑ Ordinance on 1� Reading
❑ Ordinance on 2 "d Reading
❑ Implementing Resolution
❑ Set Public Bearing For
CONTINUED TO
FILE NUMBER
Approve an Inclusionary Housing Agreement with C &C N. Harbor, LLC and the payment of an in-
lieu fee for a mixed -use development.
CITY COUNCIL ACTION
On February 3, 2015, the City Council affirmed the Planning Commission's action approving
Vesting Tentative Tract Map No. 2014 -01 to allow a subdivision for individual lots and
condominiums for a mixed -use commercial and residential project consisting of 15 live /work units
and 95 single - family detached homes at 1205 North Harbor Boulevard in the Harbor Mixed Use
Transit Corridor (SP2) zoning district.
DISCUSSION
The applicant proposes a subdivision in conjunction with a 110 -unit mixed -use development
consisting of 15 live /work units and 95 single - family residences. In addition to the action taken by
the Planning Commission, the applicant is proposing to satisfy the Housing Opportunity
Ordinance (HOO) by payment of an in -lieu fee. The H00 allows payment of a fee if substantial
evidence supports that the cost of providing inclusionary units on -site would substantially exceed
the amount of the in -lieu fee. The amount of the fee is based on the affordability gap associated
with fulfilling the required affordable housing units on -site within the development. A calculation
was performed to determine the fee amount. The fee calculation is based on the affordability gap
of $91,000 per three - bedroom unit (8 units) and $83,000 per four - bedroom unit (9 units).
Together, these gaps result in a total in -lieu fee of $1,475,000 to be paid prior to issuance of a
building permit for any portion of the project. Staff and the applicant have evaluated the request
and determined that including affordable units in an urban infill project such as the subject site
could be more expensive than paying the in -lieu fee. The in -lieu fee is measured solely off the
affordability gap between the market sale price and the restricted moderate - income sale price
(Exhibit 1).
25G -1
Inclusionary Housing Plan and Agreement
February 17, 2015
Page 2
The affordability gap is a good measurement of the impact of the inclusionary requirements. In
this case, the cost to provide the Inclusionary units on -site exceeds the amount of the in -lieu fee
for providing the units on -site. Approval of the in -lieu fee will allow for the construction of a new
mixed -use multi - family project on a 7.6 -acre site located in the Harbor Mixed Use Transit Corridor
Specific Plan area (SP -2).
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal No. 3 Economic Development,
Objectives No. 2 (create new opportunities for business /job growth and encourage private
development through new General Plan and Zoning Ordinance policies) and No. 5 (leverage
private investment that results in tax base expansion and job creation citywide) of the Santa Ana
Strategic Plan. Moreover, approval of this item supports Goal No. 5 Community Health,
Livability, Engagement & Sustainability, Objectives No. 3 (facilitate diverse housing opportunities
and support efforts to preserve and improve the livability of Santa Ana neighborhoods) and No. 4
(support neighborhood vitality and livability).
FISCAL IMPACT
Funds received will be deposited into the Inclusionary Housing Fund account (No. 41718002-
57896).
Vince Fregos , AICP /
Interim Executf erector
Planning & Building Agency
0
Kelly Re der
Executiv Director
Community Development Agency
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez s�
Executive Director
Finance & Management Services Agency
AP:rb
epWARopons Staff Reports for COWTTM14,01 In Lieu Fee C &C North Harbor Dovt.cc
Exhibit: 1. Inclusionary Housing Agreement
25G -2
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO,
City of Santa Ana
20 Civic Center Plaza
Santa Ana, California 82702
Attention: City Clerk
To be recorded without fee, (Space Above This Line For Recorder's Use Only)
(Government Code, §§ 6103 and 27383)
INCLUSIONARY HOUSING AGREEMENT
THIS INCLUSIONARY HOUSING AGREEMENT is dated as of
, 2015, by and between the CITY OF Santa Ana, a charter
city and California municipal corporation, and C &C N. Harbor, LLC a California
limited liability company ( "Developer').
1x0 III rM W
A, The City's Inclusionary Housing Ordinance ( "Ordinance ") became effective
on November 28, 2011.
B. The Developer is the fee owner of the Property located at 1206 -1310 N.
Harbor Boulevard, Santa Ana, California.
C. The Developer desires to, at the Developer's sole cost and expense,
develop a one - hundred and ten (I 10) unit Project on the Property.
D. On February 3, 2015, the City Council approved Ordinance /Resolution
Number 2015 -02, which sets forth the City Approvals for the Project.
E. On February 17, 2015, the Santa Ana City Council reviewed and
approved an Inclusionary Housing Plan that was prepared by the
Developer in accordance with the requirements imposed by the Ordinance
and the Administrative Procedures Manual established by the City Council
to implement the Ordinance requirements.
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F. Pursuant to Santa Ana Municipal Code section 41- 1904(c)(2), any
application to pay a fee in lieu of constructing some or all of the required
inclusionary units for a project comprised of more than twenty residential
units shall be subject to the review and approval of the City Council, which
may grant such request if substantial evidence supports a finding that the
cost of providing inclusionary units on site would substantially exceed the
amount of the applicable in -lieu fee.
G. This Inclusionary Housing Agreement, when fully executed by the City and
the Developer and recorded, is intended to satisfy the requirement that the
Developer enter into an Inclusionary Housing Agreement, as set forth in
the Ordinance and the conditions to City Approvals.
NOW, THEREFORE, in consideration of the mutual promises set forth in this
Inclusionary Housing Agreement and other good and valuable consideration, the
receipt and sufficiency of which is acknowledged by the City and the Developer,
the Parties, agree as follows:
DEFINITIONS OF TERMS
The following words, terms and phrases are used in this Inclusionary Housing
Agreement, as follows, unless the particular context of usage of a word, term or
phrase requires another interpretation.
Administrative Procedures Manual is this administrative procedures manual,
which has been prepared by the City for the implementation and enforcement of
the Ordinance. A copy of the Administrative Procedures Manual shall be
maintained on file with the City, and shall be provided to the Developer.
Affordability Gap is equal to the difference between the Fair Market Value of the
Inclusionary Unit and the Affordable Sales Price for the Inclusionary, Unit.
Affordable Housing Cost means the maximum costs that can be borne by a
Low or Moderate Income Household based on the requirements imposed by
HSC Section 50052.5. The calculation methodology is described in the
Administrative Procedures Manual.
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25G -4
California Health and Safety Code ( "HSC ") provides definitions of household
income and affordable housing costs that are used in this Inclusionary Housing
Agreement.
City means the City of Santa Ana, California.
City Approvals are defined as the entitlement approvals and the Inclusionary
Housing Plan that must be approved by the City Council prior to the issuance of
building permits for the Project.
City Council means the City of Santa Ana City Council.
City Manager is the City Manager of the City of Santa Ana.
Default means the failure of a Party to perform any action or covenant required
by this Inclusionary Housing Agreement within the time period provided herein
following notice and opportunity to cure, as set forth in Article 3 — Section 1 of
this Inclusionary Housing Agreement.
Developer means the developer of the residential project that is subject to this
Inclusionary Housing Agreement and its successors and assigns.
Effective Date means the date on which the Inclusionary Housing Agreement is
approved and executed by appropriate authorities of the Developer and the City;
and the Inclusionary Housing Agreement is executed by the authorized
representatives of the City and delivered to the Developer.
Exhibits means the exhibits to this Inclusionary Housing Agreement, which are
listed in Article V.
Fair Market Value means the value of the Inclusionary Unit under normal
circumstances in which the seller and the buyer freely negotiate the terms of the
transfer of ownership. The Fair Market Value is estimated based on the
assumption that no income or affordability restrictions are placed on the
Inclusionary Unit.
Gross Income means all income from whatever source from all adult household
members for the previous calendar year as defined in California Code of
Regulations Title 26 Housing and Community Development Section 6914. The
definition includes the following specific requirements:
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1. Except as provided in subdivision (2), all payments from all sources
received by the head of household (even if temporarily absent) and each
additional member of the household who is not a minor shall be included
in the annual income of a household. Gross Income shall include, but not
be limited to:
a� The gross amount, before any payroll deductions, of wages and
salaries, overtime pay, commissions, fees, tips and bonuses;
b. The net income from operation of a business or profession or from
rental or real or personal property (for this purpose, expenditures
for business expansion or amortization of capital indebtedness shall
not be deducted to determine the net income from a business);
C. Interest and dividends;
d. The full amount of periodic payments received from social security,
annuities, insurance policies, retirement funds, pensions, disability
or death benefits and other similar types of periodic receipts (but
see subdivision (2)(c));
e, Payments in lieu of earnings, such as unemployment and disability
compensation, worker's compensation and severance pay.
f. Public Assistance. If the public assistance payment includes an
amount specifically designated for shelter and utilities which is
subject to adjustment by the public assistance agency in
accordance with the actual cost of shelter and utilities, the amount
of public assistance income to be included as income shall consist
of:
The amount of the allowance or grant exclusive of the
amount specifically designated for shelter and utilities, plus
H. The maximum amount which the public assistance agency
could in fact allow for the household for shelter and utilities,
g. Periodic and determinable allowances such as alimony and child
support payments, and regular contributions or gifts received from
persons not residing in the dwelling;
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h. All regular pay, special pay and allowances of a member of the
Armed Forces (whether or not living in the dwelling) who is head of
the household or spouse (but see subdivision (2)(e)).
i. Where a household has net assets in excess of $5,000, income
shall include the actual amount of income, if any, derived from all of
the net household assets or 10 percent (10 %) of the value of all
such assets, whichever is greater. For purposes of this section, net
households assets means value of equity in real property other
than the household's full -time residence, savings, stocks, bonds,
and other forms of capital investment. The value of necessary items
such as furniture and automobiles shall be excluded.
2. The following items shall not be considered as income:
a. Casual, sporadic or irregular gifts;
b. Amounts which are specifically for or in reimbursement of the cost
of medical expenses;
C. Lump -sum additions to household assets, such as inheritances,
Insurance payments (including payments under health and accident
insurance and worker's compensation), capital gains and
settlement for personal or property losses;
d. Amounts of educational scholarships paid directly to the student or
to the educational institution, and amounts paid by the government
to a veteran for use in meeting the costs of tuition, fees, books and
equipment. Any amounts of such scholarships, or payments to
veterans not used for the above purposes of which are available for
subsistence are to be included in income;
e. The special pay to a serviceman head of a household away from
home and exposed to hostile fire;
f. Relocation payments made pursuant to federal, state, or local
relocation law;
g. Foster child care payments;
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h. The value of coupon allotments for the purchase of food pursuant
to the Food Stamp Act of 1964 which is in excess of the amount
actually charged the eligible household;
I. Payments received pursuant to participation in the following
volunteer programs under the ACTION Agency:
National Volunteer Antipoverty Programs which include
VISTA, Service Learning Programs and Special Volunteer
Programs.
ii. National Older American Volunteer Programs for persons
aged 60 and over which include Retired Senior Volunteer
Programs, Foster Grandparent Program, Older American
Community Services Program, and National Volunteer
Program to Assist Small Business Experience, Service
Corps of Retired Executive (SCORE) and Active Corps of
Executives (ACE).
HCD means the California Department of Housing and Community Development
HUD means the United States Department of Housing and Urban Development.
Inclusionary Housing Administrator has the day -to -day authority for making
determinations related to the Ordinance and Administrative Procedures Manual.
The Inclusionary Housing Administrator will be appointed by the City Manager.
Inclusionary Housing Fund means a separate fund of the City established
pursuant to the Housing Opportunity Ordinance of the Santa Ana Municipal
Code. The fund was established for the specific purpose of providing the City
with funds to assist in the development of housing that is affordable to Low and
Moderate Income Households. The allowable uses of Inclusionary Housing
Funds, and the related reporting are described in the Administrative Procedures
Manual.
Inclusionary Housing Plan means an in -lieu fee submitted for approval to the
Inclusionary Housing Administrator that details the manner in which the
Inclusionary Housing obligations will be fulfilled by the project. The Inclusionary
Housing Plan form is presented in the Administrative Procedures Manual.
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In -Lieu Fee refers to a fee that may be paid by a developer in specific
circumstances in lieu of providing Inclusionary Units within a project.
Orange County Median Income is calculated by HCD using non - aggregated
census income data and applying trending factors for metropolitan statistical
areas (MSA) throughout the country. The MSA for Santa Ana is Orange County.
The current household income information is presented in Attachment I of the
Administrative Procedures Manual.
Low Income Household refers to households whose incomes meet the
standards defined Title 25 of the California Code of Regulations Section 6932,
and by the HSC Section 50079.5. The maximum household income amount for
Low Income Households shall be the amount published by HCD as adjusted to
reflect the household size of the Homebuyer of the Inclusionary Unit.
Market Rate Unit means any unit in the project that is not restricted for
ownership and occupancy by Eligible Purchaser.
Moderate Income Household refers to households whose income meets the
standards defined Title 25 of the California Code of Regulations Section 6932,
and by the HSC Section 50093. The maximum household income amount for
Moderate Income Households shall be the amount published by HCD as
adjusted to reflect the household size of the Homebuyer of the Inclusionary Unit.
Ordinance means the Housing Opportunity Ordinance adopted by the City
Council on November 28, 2011 as it has been amended from time to time, which
is codified in the Santa Ana Municipal Code,
Party and Parties mean the City and the Developer as parties to this
Inclusionary Housing Agreement.
Project means the housing project proposed to be developed on the Property at
the Developer's sole cost and expense.
Property means the real property on which the Project is to be developed, for
which the legal description is provided in Exhibit A to this Inclusionary Housing
Agreement.
ARTICLE 1
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PARTIES; REPRESENTATIONS AND WARRANTIES; EFFECTIVE
DATE; RECITALS; AND EXHIBITS
I. Parties to the Inclusionary Housing Agreement
I -A. City. The City is a charter city and California municipal corporation. The
address of the City, for the purposes of this Inclusionary Housing
Agreement, is:
City of Santa Ana
20 Civic Center Plaza
Santa Ana, California 92702
Attention: Executive Director, Community
Development Agency
-B. Developer. The Developer is a California limited liability company. The
principal office and address of the Developer, for the purposes of this
Inclusionary Housing Agreement, is:
C &C N. Harbor, LLC
14211 Yorba St., Ste. 200
Tustin, CA 92780
Attn: Todd Cottle
II. Developer Representations And Warranties
The representations and warranties of the Developer contained in Article 1 —
Section II shall be based upon the actual knowledge of the Developer as of the
Effective Date, and are true and correct as of the Effective Date, The
Developer's liability for misrepresentation or breach of warranty, representation
or covenant, wherever contained in this Inclusionary Housing Agreement, shall
survive the execution and delivery of the Inclusionary Housing Agreement.
The Developer hereby makes the following representations, covenants and
warranties, and Developer acknowledges that the execution of this Inclusionary
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Housing Agreement by the City has been made in material reliance by the City
on such covenants, representations and warranties:
II -A. The Developer is a California limited liability company, lawfully entitled to
do business in the State of California and the City, The Developer has the
legal right, power and authority to enter into this Inclusionary Housing
Agreement and the instruments and documents referenced herein and to
consummate the transaction contemplated hereby. The persons
executing this Inclusionary Housing Agreement and the instruments
referenced herein on behalf of the Developer hereby represent and
warrant that such persons have the power, right and authority to bind the
Developer.
II -B. The Developer has taken all requisite action and obtained all requisite
consents in connection with entering into this Inclusionary Housing
Agreement and the instruments and documents referenced herein and the
consummation of the transactions contemplated hereby, and no consent
of any other party is required for the Developer's authorization to enter into
this Inclusionary Housing Agreement.
II -C. Neither the execution of this Inclusionary Housing Agreement nor the
consummation of the transactions contemplated hereby shall result in a
breach of or constitute a default under any other agreement, document,
instrument, or other obligation to which the Developer is a party or by
which the Developer may be bound, or under any law, statute, ordinance,
governmental regulation or any writ, injunction, order or decree of any
court or governmental body applicable to the Developer or to the Property.
11 -D. This Inclusionary Housing Agreement is, and all agreements, instruments
and documents to be executed by the Developer pursuant to this
Inclusionary Housing Agreement shall be duly executed by and are or
shall be valid and legally binding upon the Developer and enforceable in
accordance with their respective terms.
III. Effective Date
This Inclusionary Housing Agreement is dated , 2015 for reference
purposes only. This Inclusionary Housing Agreement shall not go into effect
before the Effective Date.
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IV. Recitals
The Recitals set forth above are true and correct. The Recitals are incorporated
into this Inclusionary Housing Agreement in their entirety by this reference.
V. Exhibit List
The following is a list of the exhibits attached to this Inclusionary Housing
Agreement. Each of the exhibits is incorporated by reference into the text of this
Inclusionary Housing Agreement.
Exhibit A Legal Description of Property
Exhibit B Site Map Depicting Property and Zoning Designations
Exhibit C Calculations of In -Lieu Fee (Inclusionary Housing Plan)
ARTICLE 2
INCLUSIONARY HOUSING COVENANTS
V1. Developer Compliance with the Ordinance
The Developer acknowledges that the City has provided the Developer with
copies of the Ordinance and the Administrative Procedures Manual. The
Developer is familiar with the requirements of all the foregoing documents and
shall ensure that the Project complies with this Inclusionary Housing Agreement
and the requirements set forth in all the foregoing documents.
VII. In -Lieu Fee
On February 17, 2015, the Santa Ana City Council approved Developer's
application to pay a fee in lieu of constructing all of the required inclusionary
units, based on substantial evidence supporting a finding that the cost of
providing inclusionary units on site would substantially exceed the amount of the
applicable in -lieu fee.
Accordingly, in lieu of providing any Inclusionary Unit specified in the Inclusionary
Housing Plan, the Developer shall pay to the City of Santa Ana the sum of
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25G -12
$1,475,000.00 prior to obtaining the first building permit related to the Project.
The final amount of the in -lieu fee is subject to change and will be based upon
calculations completed at the time of payment, which must be completed before
the issuance of any building permits for the Project.
ARTICLE 3
DEFAULTS AND REMEDIES
VIII. Default
If either Party defaults with regard to any provision of this Inclusionary Housing
Agreement, the non - defaulting Party shall serve written notice of such default
upon the defaulting Party. If, after the service of written notice of such default,
the defaulting Party does not cure such default within thirty (30) calendar days
after service of the notice of default (or, if such cure reasonably takes longer than
thirty (30) days, if such cure has not been commenced within the thirty (30) day
period and is promptly completed within a reasonable time, not to exceed ninety
(90) calendar days), the defaulting Party shall be in Default of the terms of the
Inclusionary Housing Agreement, and shall be liable to the other Party for
damages caused by such Default. Alternatively, the non - defaulting Party, at its
option, may institute an action for specific performance of the terms of this
Inclusionary Housing Agreement.
IX. Legal Actions
In addition to any other rights or remedies, either Party may institute legal action
to cure, correct or remedy any Default, to recover damages for any Default, or to
obtain any other remedy consistent with the purposes of this Inclusionary
Housing Agreement.
IX -A. The laws of the State of California shall govern the interpretation and
enforcement of this Inclusionary Housing Agreement.
IX -B. In the event that any legal action is commenced by the Developer against
the City, service of process on the City shall be made by personal service
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upon the City Manager, or in such other manner as may be provided by
law.
IX -C, In the event that any legal action is commenced by the City against the
Developer, service of process shall be made by personal service on the
Developer's designated agent at such address as may be specified in
written notice to the City, or in such other manner as may be provided by
law, and shall be valid whether made within or without the State of
California.
X. Rights and Remedies are Cumulative
The rights and remedies of the Parties are cumulative and the exercise by either
Party of one or more of such rights or remedies shall not preclude the exercise
by it, at the same or different times, of any other rights or remedies for the same
Default or any other Default by the other Party.
ARTICLE 4
GENERAL PROVISIONS
XI. Notices, Demands and Communications Between the Parties
Any and all notices, demands or communications submitted by any Party to
another Party pursuant to, or required by, this Inclusionary Housing Agreement
shall be proper if in writing and dispatched by messenger for immediate personal
delivery, or by registered or certified United States mail, postage prepaid, return
receipt requested, to the address of the City and Developer, as applicable, as
designated in Article 1 — Section I of this Inclusionary Housing Agreement. Such
written notices, demands and communications may be sent in the same manner
to such other addresses as either Party may from time -to -time designate as
provided in this Section.
Any notice, demand or communication shall be deemed to be received by the
addressee, on the day that it is personally delivered, if dispatched by messenger,
or two (2) calendar days after it is placed in the United States mail.
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XII. Conflict of Interest
No council member, official, contractor, consultant, attorney or employee of the
City having any conflict of interest, direct or indirect, related to this Inclusionary
Housing Agreement, or in the development of the Property, shall participate in
any decision relating to this Inclusionary Housing Agreement. The Parties
represent and warrant that they do not have knowledge of any such conflict of
interest.
XIIh Nonliability of City or City Officials and Employees
No council member, official, contractor, consultant, attorney or employee of the
City shall be personally liable to the Developer, any voluntary or involuntary
successors and assignees, or any lender or other party holding any interest in
the Property, in the event of any default or breach by the City, or for any amount
which may become due to the Developer or to its successors or assignees, or on
any obligations arising under this Inclusionary Housing Agreement.
XIV. Indemnification
The Developer agrees to indemnify and hold the City, and its officers, employees
and agents, harmless from and against all damages, judgments, costs, expenses
and fees arising from or related to any act or omission of the Developer in
performing its obligations hereunder. The City agrees to indemnify and hold the
Developer and its officers, employees and agents, harmless from and against all
damages, judgments, costs expenses and fees arising from or related to any act
or omission of the City in performing its obligations hereunder.
XV. No Waiver
Failure to insist upon strict compliance with any of the terms, covenants,
conditions and restrictions hereof on any one occasion shall not be deemed a
waiver of such term, covenant, condition or restriction. Any waiver or
relinquishment of rights or powers hereunder at any one time or more times shall
not be deemed a waiver or relinquishment of such other rights or powers at any
other time or times.
XVI. Jurisdiction and Venue
Any legal action or proceeding concerning this Inclusionary Housing Agreement
shall be filed and prosecuted in the appropriate State of California court in
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Orange County, California. Each Party hereto irrevocably consents to the
personal jurisdiction of that court. The City and the Developer each hereby
expressly waive the benefit of any provision of federal or state law or judicial
decision providing for the filing, removal, or change of venue to any other court or
jurisdiction, including without implied limitation, federal district court due to any of
the following:
A. Any diversity of citizenship between the City and the Developer; or
B. The fact that the City is a party to such action or proceeding; or
C. That a federal question or federal right is involved or alleged to be
involved.
Without limiting the generality of the foregoing, the Developer and the City
specifically waive any rights provided to it pursuant to California Code of Civil
Procedure 394. The Developer acknowledges that the provisions of this Article 4
— Section XVI are material consideration to the City for its entry into this
Inclusionary Housing Agreement, in that the City will avoid the potential cost,
expense and inconvenience of litigating in a distant forum.
XVIL Inspection of Books and Records
To enforce its rights under this Inolusionary Housing Agreement, the City shall
have the right at all reasonable times, at the City's cost and expense, to inspect
the books and records of the Developer pertaining to the Property. Matters
discovered by the, City shall not be disclosed to third parties unless required by
law, or unless otherwise resulting from or related to the pursuit of any remedies
or the assertion of any rights of the City hereunder.
XVIIL Successors and Assigns
This Inclusionary Housing Agreement shall be binding upon, and inure to the
benefit of, the Parties hereto and their respective heirs, executors,
administrators, legal representatives, successors and assigns. The rights of
Developer under this Inclusionary Housing Agreement may not be transferred or
assigned unless the written consent of the City Council is first obtained and any
transfer or assignment of the rights under this Agreement shall include in writing
the assumption of the duties, obligations, and liabilities arising from this
Agreement if the City grants written consent to transfer the rights.
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XIX. No Third Party Beneficiaries
The performance of the City's and the Developer's respective obligations under
this Inclusionary Housing Agreement are not intended to benefit any party other
than the City or the Developer, except as expressly provided otherwise herein.
No person or entity not a signatory to this Inclusionary Housing Agreement shall
have any rights or causes of action against any Party to this Inclusionary Housing
Agreement as a result of that Party's performance or non - performance under this
Inclusionary Housing Agreement, except as expressly provided otherwise herein.
XX. Entire Agreement
This Inclusionary Housing Agreement integrates all of the terms and conditions
mentioned herein or incidental hereto. This Inclusionary Housing Agreement
supersedes all negotiations or previous agreement between the Parties with
respect to all or any portion of the Property and the Project thereof.
XXI. Recordation
The Developer and the City agree to permit recordation of this Inclusionary
Housing Agreement, or a memorandum of this Inclusionary Housing Agreement,
against the Property in the Office of the County Recorder of Orange County,
California.
XXII. Termination
This Inclusionary Housing Agreement shall be effective until all of the following
have been completed:
Payment has been received and funds deposited in accordance with Article 2,
Section VII of this Inclusionary Housing Agreement.
IN WITNESS WHEREOF, the Parties hereto have duly executed this
Inclusionary Housing Agreement as of the dates set forth below.
[Signatures on Following Pages]
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SIGNATURE PAGE
TO
INCLUSIONARY HOUSING AGREEMENT
APPROVED AS TO LEGAL FORM:
Citytorney
City of Santa Ana
CITY:
CITY OF SANTA ANA
A California Municipal Corporation
0
Name:
Its:
Date:
Induslonary Housing Agreement Page 16
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SIGNATURE PAGE
TO
INCLUSIONARY HOUSING AGREEMENT
DEVELOPER:
C &C N. HARBOR, LLC, a California
limited liability company
LM-
Todd R. Cottle, its member
By: The Cottle Family Trust Dated
3/8/1987, its member
M
Barry A. Cottle, Trustee
Date:
Induslonary Housing Agreement Page 17
City of Santa Ana February 17, 2015
1603 \14 \1654522.2 25G-19
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY
OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:
THE SOUTH 152 FEET OF THE SOUTHEAST QUARTER OF THE
NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 9,
TOWNSHIP 5 SOUTH, RANGE 10 WEST, SAN BERNARDINO MERIDIAN, IN
THE COUNTY OF ORANGE, STATE OF CALIFORNIA.
EXCEPTING THEREFROM AN UNDIVIDED 219 INTEREST IN THE PUMPING
PLANT AND WELL LOCATED NEAR THE SOUTHEAST CORNER OF THE
LAND ABOVE DESCRIBED AND CONVEYED BY C.A. WESTGATE AND
FANNIE C. WESTGATE TO E.H. WATERS, A WIDOWER, BY DEED
RECORDED DECEMBER 5, 1930 IN BOOK 437 PAGE 468 OF OFFICIAL
RECORDS.
SAID LAND IS SHOWN ON LICENSED SURVEYOR'S MAP FILED IN BOOK
19, PAGE 26 OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY.
APN: 198- 043 -25
PARCEL A:
THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF THE
NORTHEAST QUARTER OF SECTION 9, TOWNSHIP 5 SOUTH, RANGE 10
WEST, IN THE RANCHO LAS BOLSAS, AS SHOWN ON A MAP RECORDED
IN BOOK 51, PAGE 12 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE
COUNTY, CALIFORNIA.
EXCEPTING THEREFROM THE SOUTH 270.00 FEET.
PARCEL B:
THE WEST 20 FEET OF THE SOUTH 270 FEET OF THE NORTHEAST
QUARTER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER
OF SECTION 9, TOWNSHIP 5 SOUTH, RANGE 10 WEST, IN THE RANCHO
LAS BOLSAS, AS SHOWN ON A MAP RECORDED IN BOOK 51, PAGE 12 OF
MISCELLANEOUS MAPS, RECORDS OF
ORANGE COUNTY, CALIFORNIA.
APN: 198 - 011 -01, 198- 011 -03, 198 - 011 -02
Incluslonary Housing Agreement
City of Santa Ana February 17, 2015
1603 \14 \1654522.2 2513-20
EXHIBIT B
SITE MAP DEPICTING PROPERTY
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Inclusienary Mousing Agreement
City of Santa Ana _� February 17, 2015
1603 \14\1654522.2
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Inclusienary Mousing Agreement
City of Santa Ana _� February 17, 2015
1603 \14\1654522.2
EXHIBIT C
CALCULATIONS OF IN -LIEU FEE
(INCLUSIONARY HOUSING FLAN)
IN -UEU FEE CALCULATION
OWNERSHIP PROJECTS -15 %MODERATE INCOME INCLUSIONARY REQUIREMENT
HOUSING OPPORTUNTY ORDINANCE
SANTA ANA, CAUFORNIA
1. Proioct Doscriotlon
A. Project Name
6, Project Address
11. OS -Site JpgpslonaN reappraise
A. Required Number of lbclusianary Units
Total Project Units
Inciusloeary, Requirement as %of Total Units
Total incluslonary noun hament i Rpund•upj
B. incluslonary Unit Distribution
Two-bedroom Units
Thre - hadraom Units
four - bedroom Units
Totals
Total Building Area (Square Fast)
III. Affordabllfty GOO /Unit Calculml.
TmO bsedroom Units
Three - bedroom Units
Four - bedroom Units
IV, Affordability Gap Calculation
Two - bedroom Units
Three- bedroom Urns
Pour - bedroom Units
Total Affordability Gap
1206 -1310 N Harbor
1206.1310 N Harbor Blvd
110
15%
17
Required 9 of
Total Project lnclusionary,
Unite %of Total Unless Units'
0,00% 0
49 44.55% 8
61 55,45% 9
110 100100% 17
205,952
Restriotod Price -
Moderaie AffordablBty Gap/
Market Prices Incomes Unit
$o $0 $0
$455,000 $364,000 $91,000
$415,000 $332,000 $83,000
Affordability incluslonary Total Affordability
Gap/ Unit Units Gap
$0 $0
$91AOO 8 $728,000
$83,000 9 $747,000
$1A75,GOn
otal In -Ueu Fee' $1,475,000
Per Total Unit $13,400
Per Income Restricted Unit $86,800
Per Square root of Total Building Area $7.16
This column mustadd up to 100 %.
I Multiply the% of Total Units times the Total incluslonary Requirement.
Equal to the lesser of the defined Affordable Sales Price or 20% less than the projected Market Price.
° The Total lns LUou Fee is equal to the Total Affordability Gap.
Prepared by Gty of 5anm Ana
9/25/3014
lnclusionary Housing Agreement
City of Santa Ana February 17, 2015
1603 \14 \1654522.2 25G-22
INCLUSIONARY HOUSING PLAN
OWNERSHIP PROJECT
APPLICATION NUMBER:
City of Santa Ana, Planning Division
20 Civic Center Plaza
Santa Ana, California 92701
714.667.2700
Project Address: 1310 N Harbor Boulevard
Assessor Parcel Number(s): 198- 011 -01, 198- 011 -03, 198 - 011 -02, 198 - 043 -25
Site Dimension and Square Footage: 7.6 acres
1206 -1226 N Harbor- C. J. Skirvin and Daisie Frances Skirvin
Family Trust, dated January 28, 1981
Property Owner's Name: ,1310 N Harbor- C &C N Harbor, LLC
Contact Person: Todd Cottle Email: todd @c- edev.com
Work Telephone: Todd Cottle
Street Address:
City: Tustin
14211 Yorba St., Ste. 200
Mobile Phone: 714- 288 -7600
State: CA
Zip:
92780
Applicant's Name: C &C N. Harbor, LLC and C &C Development Co., LLC
Contact Person: Todd Cottle- Same as above Email:
Work Telephone:
Street Address:
City:
Inclusionary Housing Plan — Ownership Project
Santa Ana, California
Mobile Phone:
State:
25G -23
Zip:
August 11, 2014
INCLUSIONARY HOUSING ALTERNATIVES
Select the applicable alternatives to indicate how the project will comply with the
inclusionary housing requirement:
On -site construction of inclusionary units
X In -lieu fee payment for entire obligation
In -lieu fee payment for fractional unit'
Land dedication
Note: Alternatives other than "on -site units" require City Council approval.
PROJECT DESCRIPTION
Describe the project in the following chart:
Number of
Bedrooms
Unit Size
(Square Feet.)
Number of
Market
Rate Units
Number of
Moderate
Income Units
Total
Number of
Units
Studio
1
2
3
1,771 -1,849
49
49
4
1,707 -2,024
61
61
5
' If the calculation of the number of required inclusionary housing units results in a fraction, the developer
has the option to (a) provide an additional inclusionary housing unit or (b) pay an In -Lieu Fee equal to the
percentage represented by the fractional inclusionary housing unit multiplied by the applicable In -Lieu
Fee.
Inclusionary Housing Plan — Ownership Project Page 2
Santa Ana, California August 11, 2014
25G -24
Q
B.
C.
III.
A.
B.
C.
Identify the gross livable area of the proposed project
(including private balconies, decks and patios.
Will the project be constructed in phases?
Is a density bonus being requested in accordance with
Municipal Code Section 41 -1600
223,248 square feet
X Yes No
Yes X No
REQUIRED EXHIBITS TO THE INCLUSIONARY HOUSING PLAN
A narrative description of the entire project; Attached
A site plan that depicts the entire project (minimum 11" x 17 "); Attached
A depiction of the location of the inclusionary housing units; and N/A
D. If applicable, a phasing plan that provides for the proportionate number of the
total inclusionary housing unit requirement to be built within each phase of the
project. N/A
Inclusionary Housing Plan — Ownership Project
Santa Ana, California
25G -25
Page 3
August 11, 2014
IV. PROPERTY OWNER'S AFFIDAVIT
I hereby certify that I am the legally authorized owner of all property involved in this
application or have been empowered to sign as the property owner on behalf of a
corporation, partnership, business, etc., as evidenced by separate instrument attached
herewith. I herby grant to the applicant submitting this form full power to sign all
documents related to this application, including any conditions or litigation measures as
may be deemed necessary.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on (Date) \� I %Zl I
Property Owner's Signature
_ at Tustin California
Printed Name Todd Cottle, Authorized Signatory, C &C N Harbor, LLC
* See attached authorization from C. J. Skirvin and Daisie Frances Skirvin Family
V. APPLIC/ Trust, dated January 28, 1981
1 hereby certify that the statements furnished above and in the attached exhibits
represent the data and information required for this initial evaluation and that the facts,
statements and information presented are true and correct to the best of my knowledge
and belief. Further, should the stated information be found false or insufficient, I agree
to the return of this form for appropriate revisions, understanding the City of Santa Ana
cannot process this form until all applicable information is corrected or provided by the
applicant. I herby certify that I have been legally authorized by the property owner to
present this application and to sign on behalf of all documents related to this application,
including any conditions or litigation measures as may be deemed necessary.
Note: When the applicant is a corporation, partnership, business, etc., a separate
document verifying the authorization to sign for such applicant is required.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on (Date) I at - CvS-GN California
Applicant's Signature
Applicant's Printed Name Todd Cottle, Authorized Signatory, C &C N Harbor, LLC
Incluslonary Housing Plan — Ownership Project Page 4
Santa Ana, California August 11, 2014
25G -26
C &C N Harbor, LLC
14211 Yorba St., Suite 200
Tustin, CA 92780
November 12, 2014
RE: 1206 -1310 N Harbor Affordable Housing Plan Application
To Whom It May Concern:
The owner of record of parcel 198- 043 -25 is C &C N Harbor, LLC and the owner of record of
parcels 198 - 011 -01, 198 - 011 -03, and 198 - 011 -02 is the CJ Skirvin and Daisie Frances Skirvin,
Trustees of the C.J. Skirvin and Daisie Frances Skirvin Family Trust, Dated January 28, 1981.
C &C N Harbor, LLC has the authority to process applications for the parcels it does not own.
Please see the attached authorization.
C &C N Harbor, LLC can be contacted at the following:
C &C N Harbor, LLC
14211 Yorba St., Suite 200
Tustin, CA 92780
714 288 -7600
Sincerely,
Todd Cottle
C &C N Harbor, LLC
Attached: Owner Authorization Letter
1310 N Harbor Grant Deed
25G -27
FORM OF APPOINTMENT OF AGENT
The undersigned, C1. Skirvin and Daisie Frances Skirvin Family Trust, dated January 28,
1981 (collectively the "Seller"), the owner of that certain real property described on Exhibit
"A" attached hereto (the "Property'I, hereby appoint C & C Development Co., LLC or its
designee, ( "Buyer'), as agent to execute, in place and stead of the undersigned, all
applications, maps, and other documents required by the City or other public or quasi -public
agency or utility necessary for the entitlement and development of the Property, including,
without limitation, documents concerning @ zoning, (ii) subdivision, (iii) design review, and
(iv) use, grading, and construction permits, but excepting any documents which would cause
the undersigned to incur personal liability or obligation or create alien or monetary
encumbrance upon the Property or change the use of the Property before Close of Escrow;
said agency shall be binding on any successors -in- interest or assigns to the undersigned's fee
interest in the Property, is a power coupled with an interest, and shall not be affected by the
disability of the undersigned or its successors or assigns.
The undersigned hereby gives and grants Buyer the full power and authority to do and
perform all acts whatsoever requisite, necessary, or appropriate for the limited purposes state
above as the undersigned might or could do if personally present, hereby ratifying all that
Buyer, in its capacity as agent for the undersigned, shall lawfully do or cause to be done by
virtue of these presents.
This Appointment of Agent shall expire, and shall cease to be of any further force or effect,
without any further action by Buyer or the undersigned, upon the earlier of (1) conveyance of
title to the Property to Buyer, or (2) termination of that certain Purchase Agreement and
Escrow between Buyer and the undersigned,
Executed this 10 A day of 2013.
C.J. Skirvin aan�d� D,aisiee Frances Skirvin Family Trost, dated January 28,1981
\I
Signature- '�"�� p
By: AA1 S PA-Vu,
Tide: �RUi0P4'u�e.
Date:
1603WIN13534772
25G -28
RECORDING REQUESTED BY:
Stewart Title of California, Inc.
AND WREN RECORDED MAIL TO
AND MAIL TAR STATEMENTS TO:
C&C N. Harbor, LLC
14211 Yorba Street, Suite 200
Tustin, CA 92780
THEE ORDER NO. 7037-364526
ESCROW N0.7005- 364526
This Document was electronically recorded by
Stewart Title
,road in Official Records, Orange County
Daly, Clerk- Recorder
12.00
2011000516688 02.57pm 10/17/11
422 G02 3 NonrOs
10 0.00 0.00 0.00 6.00 0.00 0.00 0.00
THE UNDERSIGNED GRANTOR(S) hereby request that the tax declaration not be made a part of the permanent record
in the Of&e of the county recorder pursuant to section 11932 of the revenue and taxation code.
FOR A VALUABLE CONSIDERATION, receipt of which is hereby aclmowledged,
Lords F. Brenler and Carolyn L. Bremer, Trustees of the Bremer Family Trust Established June 4,1990,
Amended and Restated February 7, 2011
hereby ORANT(s) to: C &C N. harbor, LLC, a California limited liability company
data�
the real property in the City of , County of,� IM of California, described as:
LEGAL DESCRIPTION ATTACHED HERETO AS EXHIBIT "A" AND MADE A PART HEREOF
Dated: October 14, 2011
STATE OF CALMRft
COUNTY
On c CYi- rJ¢i'�
8efore me, �®
Mary Pu ; persopallyusaxed
who proved to me on the basis of aabati� #aot�oey evidence the
persons) whose names) is( ubacdbed to Gus within instrument
and aclm wledged to me that a executed the same in
1 authorized capacity(Ies), and that by biaAtar u�`
signature(s) on the instrument the person(&), or the entity upon
behalf of which the person(&) acted, executed the iu&trament.
I certify under PENALTY. OF PERJURY under the laws of the
State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal. * A.
NME /`=
Louis F. Brener. Trustee ofthe Brener Pand
Trust Established June 4, 1990 and Amended
February 7.2011 .
E!sfrolyn L. Merrier, Trustee of the Brener
Family Trust Established June 4, 1990 and
Amended February 7,2011
Fill
(Seal)
MAIL TAX STATEMENT AS DutECTED ABOVE
25G -29
Section III.A. Narrative Description of the Entire Project
The project involves the redevelopment of an approximately 7.5 acre site located at 1206 -1226 N
Harbor Blvd. The site is located within the Harbor Mixed Use Transit Corridor Specific Plan. It
has a Corridor District designation.
The project will involve the construction of 95 detached single family units ranging from 2 -3
stories and 15 attached shopkeepers townhome units. The shopkeeper units will be situated in
three story buildings located along Harbor Blvd and the detached units will be located behind the
attached project to the west of Harbor Blvd. The density of the project is approximately 14.6
du /ac (I 10 units / 7.5 acres).
Homes will range from 1,707 — 2,024 sf and will contain 3 — 4 bedrooms. Each home will have
an attached two car garage. Guest and customer parking will be situated in parking spaces
located throughout the site. The project exceeds the parking requirements of the Harbor Mixed
Use Transit Corridor Specific Plan by 42 %.
25G -30
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