REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Execute an Agreement with EQR-Lincoln Laguna Clara L.P. (“Developer”) for the Installation and Operation of Private Recreational Amenity Improvements to Satisfy a Portion of Developer’s Parkland Obligations for the 447 Unit Apartment Project Located at 3131 Homestead Road, 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 City Code Chapter 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 September 16, 2020, the Architectural Review Committee approved a development application located at 3131 Homestead Road to construct a four-story apartment building with 447 apartment units, subgrade and surface parking on-site, landscaping, and site improvements (Project).
The Project will meet its parkland dedication requirements of 1.0484 acres as follows:
1. Installation of 1.2 acres of private recreational amenity improvements which provides a credit of 50% against the parkland dedication requirement; and
2. Payment of $1,928,714 in Mitigation Fee Act in-lieu fees which was received in May 2023. An additional payment of $93,271 was received in May 2024 due to a reduction in the amount of private recreational amenity space, which lowered the eligible credit against the parkland dedication requirement, resulting in total fee payments of $2,021,985 in accordance with City Code Chapter 17.35.
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 the City Code, the City and EQR-Lincoln Laguna Clara L.P. (Developer) negotiated the terms and conditions for the construction and the 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 $2,150,875.
2. The Developer is not eligible for credit for any private recreational improvements which 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.
4. The Developer shall submit payment in the amount of $2,021,985 for Mitigation Fee Act in-lieu fees in accordance with City Code Chapter 17.35 (The City acknowledges full payment of said fee as of May 2024).
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.
As noted above, the Agreement contains provisions that restrict use of the private park recreational improvements for recreational purposes only. Such requirement will run with the land and bind Developer and future owners of the property.
ENVIRONMENTAL REVIEW
The Mitigated Negative Declaration for the Project, which included the construction of the private amenity improvements, was approved on September 16, 2020, pursuant to the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et seq.). Accordingly, no further environmental review is required.
FISCAL IMPACT
There is no cost to the City for consideration of the Private Recreational Amenity Agreement with EQR-Lincoln Laguna Clara L.P. The Developer will meet its parkland dedication requirement by installing private recreational amenity improvements onsite, for which credit will be provided in the amount of $2,150,875, and by submitting Mitigation Fee Act in-lieu fees in the amount of $2,021,985 (fully received by May 2024) allocated to the Parks and Recreation Capital Fund.
COORDINATION
This report has been coordinated with the City Attorney’s Office, the Community Development Department, the Finance Department, and the 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 <mailto: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 agreement with EQR-Lincoln Laguna Clara L.P. for the installation of private recreational amenity improvements at 3131 Homestead Road 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 and Recreation
Approved by: Jōvan Grogan, City Manager
ATTACHMENTS
1. Private Recreational Amenity Agreement with EQR-Lincoln Laguna Clara L.P.