REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Execute Agreements with SHAC Tasman CDM Apartments LLC for the Construction of Park Improvements and the Maintenance of the Park in perpetuity within the Tasman East Area [Council Pillar: Enhance Community Sports, Recreation and Art Assets]
Report
BACKGROUND
In July 2014, Council adopted Ordinance No.1937 adding Chapter 17.35 “Park and Recreational Land” to the Santa Clara City Code (SCCC) requiring new residential developments to provide developed park and recreational land, and/or pay a fee in-lieu pursuant to the Quimby Act and/or the Mitigation Fee Act (MFA) to address the impacts of the new residential population on the existing City parks and recreation system infrastructure.
On November 13, 2018, the City Council adopted the Tasman East Specific Plan (TESP) which provides guidelines for projects proposed within the specific plan boundaries: Tasman Drive to the south, the Guadalupe River to the east, City Place project to the north, and Lafayette Street to the west. The TESP also provides guidance on the neighborhood and mini parks to be dedicated for the area and the private recreational amenities eligible for credit against fees due in lieu of parkland dedication. All projects within the TESP are subject to review and approval by the City’s Architectural Committee.
On March 6, 2019, the Architectural Committee approved SummerHill Apartment Communities’ (SHAC) residential project and park dedication, located within the Hill District of the TESP. The Project application was submitted under the provisions of MFA. Based on the City’s then current MFA standard of 2.53 acres of parkland per 1,000 residents and the Project’s estimated 777 new residents, the Project will meet its parkland dedication requirement of 1.9665 acres (equivalent fee due in lieu of parkland is valued at $7,999,391) through the construction and dedication of 0.3604 acres of a public mini park as well as separately through the provision of 0.6725 acres of private recreational amenities (credited at 50% value per SCCC 17.35.070), and payment of a fee of approximately $5,443,388 in lieu of the remaining parkland dedication owed in conformance with SCCC 17.35.
DISCUSSION
City and the owners of the parcels on which the Project is located, SHAC Tasman CDM Apartments LLC (Developer), negotiated:
1. A Park Improvement Agreement (Attachment 1) to set the terms and conditions for the construction and acceptance of the park according to the Architectural Committee’s approved schematic design and phasing plan; and,
2. A Park Maintenance Agreement (Attachment 2) to set the terms and conditions of the maintenance of the park in perpetuity. The Agreement includes standards for park maintenance, a default and remedies provision, and provides the City the right to terminate upon 30 days’ notice without cause.
ENVIRONMENTAL REVIEW
The Park Improvement and Maintenance Agreements fall within the scope of the project analyzed under the Environmental Impact Report (EIR) for the Tasman East Specific Plan which included the construction of parks, which was approved on November 13, 2018 (Resolution No. 18-8623) pursuant to the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et seq.).
FISCAL IMPACT
There is no fiscal impact to the General Fund. In conformance with the TESP and the terms of the proposed Park Improvement Agreement, the Developer is required to construct and dedicate a mini park at its sole expense. There will be no cost to the City General Fund for park maintenance as the Developer will maintain the park in perpetuity. The current estimated cost to maintain public parks in the City is approximately $30,000-$36,000 per acre depending upon amenities and other factors.
COORDINATION
This report has been coordinated with the City Attorney’s Office, Finance Department, Community Development 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 <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
Authorize the City Manager to execute the Park Improvement Agreement and the Park Maintenance Agreement with SHAC Tasman CDM Apartments LLC, and to make minor, non-substantive changes as necessary.
Staff
Prepared by: James Teixeira, Director of Parks & Recreation
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Park Improvement Agreement with SHAC Tasman CDM Apartments, LLC
2. Park Maintenance Agreement with SHAC Tasman CDM Apartments, LLC