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HomeMy WebLinkAboutAgenda - Read Before Packet - 3/23/2021 - Updated Adjourned Meeting Agenda Item 2 - Agreement To Secure Public Benefits For Mulberry Development As Provide In Service Plan For Mulberry Metropolitan District Nos. 1 Through 6 Agenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY March 23, 2021 City Council STAFF Clay Frickey, Redevelopment Program Manager John Duval, Legal SUBJECT Resolution 2020-030 Approving an Agreement to Secure Public Benefits for Mulberry Development as Provided in Service Plan for Mulberry Metropolitan District Nos. 1 through 6. EXECUTIVE SUMMARY This item has been amended to add the highlighted paragraphs. The purpose of this item is to consider a Resolution adopting the Agreement to Secure Public Benefits for the Mulberry Development (Public Benefits Agreement). The Public Benefits Agreement is contemplated in the Consolidated Service Plan for Mulberry Metropolitan Districts Nos. 1-6, approved by City Council on April 16, 2019 (Service Plan). Staff has completed its review of the Public Benefits Agreement to ensure it conforms to the Service Plan. The public benefits structure of this public benefits agreement tracks very closely with the changes made to the last public benefits agreement the Council approved. However, some customization was needed to address the particular circumstances of the Mulberry project and where it is in the land use process. To address these issues, new language was added to make clearer what the developer’s obligations are and the City discretion in the timing for requiring the particular public benefits that are tied to the development review process. These changes are an improvement to the public benefits agreement that ensures the City gets the public benefits promised as the project proceeds in phases. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION Project Overview The Mulberry development is a proposed 232-acre mixed-use community located north of Mulberry Street along both sides of Greenfield Court (Project) . Upon buildout, the Project is proposed to include the following: • Approximately 1,600 homes including single-family detached, single-family attached, and multi-family. • 20-30 acres of retail and office uses. • Up to 160,000 square feet of commercial and retail uses including a grocery store. • Up to 86,000 square feet of office uses integrated into a pedestrian-oriented market street. To date, the developer has not submitted to the City a formal development application for the Project. The developer intends to apply for a Planned Unit Development (PUD). The PUD will contain more detailed information about the proposed phasing of the Project. Agenda Item 2 Item # 2 Page 2 Public Benefits Council adopted on April 16, 2019, Resolution 2019-050 approving the Service Plan. The Service Plan contains the above information about the Project and is the document that governs the powers and responsibilities of the Mulberry Metropolitan District Nos. 1-6 (Mulberry Metro Districts). The City’s current policy for considering metropolitan district service plans requires developers to provide public benefits as part of the approval of the service plan for those metropolitan districts which are proposed to serve a primarily residential development. Exhibit I of the approved Service Plan for the Mulberry Metro Districts outlines the public benefits proposed by the developer for the Project. Please note that while the Service Plan references the developer’s desire to provide attainable housing, the Service Plan provides no firm commitment on the provision of attainable housing. What follows is the list of public benefits to be secured contractually by the proposed Public Benefits Agreement between the developer and the City: Provide Affordable Housing • 15% of the residential units must be affordable for a period of 20 years. • A minimum of 40 units must be for-sale homes affordable for households earning 80% or less of the area median income adjusted for household size (AMI). • A minimum of 200 units must be for-rent averaging not more than sixty percent (60%) or less of the AMI. • If build out of the PUD results in more than 1,600 homes, at least 15% of the overall number of units must be affordable. • If build out results in less than 1,600 homes, a minimum of 240 homes must still be affordable. • 20-year affordability period begins upon unit obtaining certificate of occupancy. • 66% of the affordable units must be secured prior to the City issuing building permits for more than 800 of the total housing units. • The remaining 34% of affordable units must be secured prior to the City’s issuance of building permits for the last 100 housing units. Critical On-site and Off-site Public Infrastructure • Construction of a rail crossing on Greenfield Court right-of-way. • Construction of a roundabout for Greenfield Court. • $250,000 financial contribution for improvements to the Vine and Timberline intersection. • $800,000 financial contribution to or construction of landscape improvements for frontage road, Mulberry/Highway 14 median, and the intersection of Mulberry/Highway 14. • $500,000 financial contribution for community gateway features that will enhance the Mulberry/Highway 14 street frontage. High Quality and Smart Growth Elements • Higher density than required by the Low-Density Mixed-Use Neighborhood (LMN) zone district. • Alley loaded homes for at least 40% of dwelling units. • Added utility services and raw water dedication. • Enhanced pedestrian crossings. • A central pedestrian-oriented greenway spine through the center of the neighborhood. • Secondary bicycle path to improve bicycle connectivity. • An enhanced east-west greenway to connect from the railroad crossing to Cooper Slough. • A mixed-use design. • Neighborhood parks, pocket parks adjacent to the pedestrian-oriented greenway spine, and a commercial center promenade. Agenda Item 2 Item # 2 Page 3 Environmental Sustainability Through Energy Conservation, Water Conservation and Enhanced Community Resiliency • 800 kW of solar power system distributed across the Project. • A non-potable water irrigation system for community landscaping and landscaping on individual lots. This system projects to result in 45% less demand for potable water. • Sustainable landscape design. • Improvements to the Cooper Slough that will reduce runoff and lower peak flows. • Lake Canal improvements that will take portions of the property out of the floodplain. • Creation of pollinator corridors using enhanced landscaping throughout the development. Staff have reviewed the Public Benefits Agreement and finds it aligns with the requirements for the public benefits identified in the approved Service Plan. Performance Assurances The Mulberry Metro Districts may not issue debt, impose mill levies, or fees until the delivery of the Public Benefits are secured in a manner that is approved by Council. This requirement can be satisfied by anyone of three methods. The method being used here is for the developer to enter into a public benefits agreement with the City to provide the public benefits before the City is required to issue building permits and/or certificates of occupancy for the buildings to be built within the Project. The proposed Public Benefits Agreement sets forth the terms, conditions and timing under which the various public benefits must be provided before the developer can obtain such building permits and certificates of occupancy. Funding/Securing Public Benefits The developer must fund, develop, construct, and/or build the public benefits in accordance with the terms and conditions of the Public Benefits Agreement. It is the intent that the Mulberry Metro Districts will reimburse the developer for some of the expenses related to delivering the public benefits to the extent state law and the Service Plan allow the Mulberry Metro Districts to reimburse such expenses. Service Plan Review The Service Plan identifies the public improvements the Mulberry Metro Districts will build as part of the Project. The Project will occur in phases. The Service Plan estimates completion of the Project by 2028. Highlights of the Service Plan include: • Assessed Value - Estimated to be $66,356,893 in 2029, the first full year after build-out. • Aggregate Mill Levy - 50 mills. • Debt Mill Levy - 40 mills for all properties, which the Mulberry Metro Districts may not levy until the pledged public benefits have been secured by a public benefits agreement. • Operating Mill Levy - 10 mills. • Maximum Debt Authorization - $65 million. If Inclusion Area is added to the Districts’ boundaries, the Maximum Debt Authorization will be $75 million. • Regional Mill Levy - 5 mills for planning, design, acquisition, funding, construction, installation, relocation, redevelopment, administration, and overhead costs related to the provision of regional Improvements. Conclusion The Public Benefits Agreement conforms to the public benefits outlined in the Service Plan. The Agreement meets both the letter and spirit of the City’s current metropolitan district policy and helps the City achieve its strategic objectives. The metropolitan district policy speaks to the City’s commitment to water and energy efficiency, and this project provides benefits beyond typical code requirements. The Project will also provide at least 240 units of affordable housing, addressing the City’s objective of increasing the inventory of affordable units as outlined in the City’s Housing Strategic Plan. The smart growth and energy efficiency measures Agenda Item 2 Item # 2 Page 4 integrated in the Project will also help meet objectives outlined in City Plan and Our Climate Future for sustainable development. CITY FINANCIAL IMPACTS The proposed Public Benefits Agreement will not have an impact on the City’s financials. The applicant has paid the fees required under the City’s metropolitan district policy, which fees are designed to offset the cost of staff and outside consultant review. ATTACHMENTS 1. Mulberry Presentation (PDF)