REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Execute an Agreement with Westlake Ryder Square, LLC, for the Installation and Operation of Private Recreational Amenity Improvements to Satisfy a Portion of Developer’s Parkland Obligations for the 328-unit Apartment Project Located at 3517 Ryder Street, such Improvements to be Funded at Developer’s Sole Cost
Report
COUNCIL PILLAR
Enhance Community Sports, Recreational and Arts Assets
Enhance Community Engagement and Transparency
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
In July 2014, the City Council adopted Ordinance No. 1937, adding Chapter 17.35 “Park and Recreational Land” to the Santa Clara City Code (SCCC). The purpose of SCCC 17.35 is to help mitigate the impacts of new housing development growth on existing parkland and recreational facilities pursuant to the provisions of the State of California Quimby Act (Quimby) and/or the California Mitigation Fee Act (MFA). New residential developments are required to dedicate developed park and recreational land and/or pay a fee in lieu of parkland dedication.
On November 29, 2016, the City Council adopted the Lawrence Station Area Specific Plan, which provides guidelines for projects proposed within the specific plan boundaries.
On August 20, 2020, an Architectural Review Permit application proposing the construction of a four-story, multi-family residential development with up to 328 units (Project) was approved at the Development Review Hearing.
The Project will meet its parkland dedication requirements of 2.0467 acres as follows:
1. Installation of 0.7528 acres of private recreational amenity improvements, which provides a credit of 50% against the parkland dedication requirement; and
2. Payment of $8,550,563 in Mitigation Fee Act in-lieu fees.
This item requests Council consideration and approval of the Private Recreational Amenity Agreement (Attachment 1) necessary to implement the Project’s overall park and recreational land requirements.
DISCUSSION
In conformance with City Code, the City and Westlake Ryder Square, LLC (Developer) negotiated the terms and conditions for the construction and completion of the private recreational amenity improvements of the Private Recreational Amenity Agreement (Agreement). Key provisions of the Agreement include:
1. The Developer will construct and install the private recreational amenity improvements onsite for which credit will be provided in the amount of $1,502,965.
2. The Developer is not eligible for credit for any private recreational improvements that are not completed prior to occupancy and will be required to pay any additional equivalent park-in-lieu fees for such improvements.
3. The Developer shall maintain, repair, and replace the private recreational amenity improvements to preserve them from failure or deterioration (please note that the specific language for this requirement will be included in the final version of the Agreement).
4. The Developer shall submit payment in the amount of $8,550,563 for Mitigation Fee Act in-lieu fees in accordance with City Code Chapter 17.35.
5. The Developer agrees to restrict the use of private recreational improvements for active recreational uses for the benefit of future owners/renters.
6. The Agreement includes covenants running with the land and shall be binding upon Developer and Developer’s successors and assigns during the term of their respective ownership of the private recreational improvements.
7. Developer shall furnish a performance security to ensure completion of the private recreational improvements for which Developer will be receiving credit.
ENVIRONMENTAL REVIEW
Environmental Review for this Project was included in the Environmental Impact Report (EIR) prepared for the Lawrence Station Area Plan approved on November 29, 2016 in accordance with the California Environmental Quality Act (CEQA). Accordingly, no further environmental review is required.
FISCAL IMPACT
There is no fiscal impact to the General Fund. In conformance with the terms of the proposed Private Recreational Amenity Agreement, the Developer will be responsible for the installation and operation of the private recreational amenity improvements at its sole expense for the life of the project.
COORDINATION
This report has been coordinated with the City Attorney’s Office, Community Development Department, Finance Department, and City Manager’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager to negotiate and execute the Park Improvement Agreement and the Park Maintenance Agreement with Westlake Ryder Square, LLC for the installation of Private Recreational Amenity Improvements at the Developer’s Sole Cost on substantially the terms and in the forms presented, with such minor, non-substantive changes and amendments that may be necessary to implement the parkland dedication requirements for this project, in final forms approved by the City Attorney.
Staff
Prepared by: Gina Saporito, Staff Analyst
Reviewed by: Damon Sparacino, Director, Parks & Recreation
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Private Recreational Amenity Agreement with Westlake Ryder Square, LLC