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Item 20 Staff Report Consider Amending the Town Code Regarding Mobile Home Park Conversion, Section 29.20.820 "Findings Upon Consideration of Application" and Section 29.20.805 "Definitions," to Implement Housing Element Section 3.5.10 of the General PlanMEETING DATE: 5/18/98 ITEM NO, COUNCIL AGENDA REPORT DATE: May 7, 1998 TO: MAYOR AND TOWN COUNCIL FROM: TOWN MANAGER LD? 0 SUBJECT: CONSIDER AMENDING THE TOWN CODE REGARDING MOBILE HOME PARK CONVERSION, SECTION 29.20.820 "FINDINGS UPON CONSIDERATION OF APPLICATION" AND SECTION 29.20.805 "DEFINITIONS," TO IMPLEMENT HOUSING ELEMENT SECTION 3.5.10 OF THE GENERAL PLAN, ZONING CODE AMENDMENT A-98-03. APPLICANT: TOWN OF LOS GATOS RECOMMENDATION: 1. Hold public hearing; 2. Close public hearing; 3. Find that the amendment is consistent with the General Plan; 5. Direct Clerk to read title; 6. Waive reading; and 7. Introduce the Ordinance amending Zoning Code Sections 29.20.820 and 29.20.805 (Attachment 1) and find that the amendments are consistent with the General Plan. BACKGROUND: The Town updated the Housing Element of the General Plan in June 1997. The Housing Element implementation measures each have time frames and responsible parties. Section 3.5.10 of the Housing Element is an implementation measure pertaining to the Mobile Home Park Conversion Ordinance. It requires evaluation and revision to the Ordinance during 1997-1998. The Planning Department is responsible for implementation. On April 22, 1998 the Planning Commission recommended that the Town Council adopt Zoning Ordinance A-98-03 (see Attachments 2 and 3). DISCUSSION: Housing Element Section 3.5.10 is included as Attachment 4. This section requires the evaluation and revision of the Mobile Home Park Conversion Ordinance to specify that "any proposal to convert a mobile home park to a residential development shall provide at least as many low cost housing units as could be accommodated within the existing park's capacity." PREPARED BY: LEE E. BOWMAN 61 PLANNING DIRECTOR Reviewed by: 0 Attorney Finance (Continued on Page 2) Revised: 5/7/98 9:30 am Reformatted: 10/23/95 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: ZONING ORDINANCE AMENDMENT A-98-03 May 7, 1998 The General Plan Committee discussed this matter at its February and March meetings. The discussion focused on the issue of low cost housing and how it should be defined. The Committee decided to relate the cost of housing to unit "affordability". The proposed Ordinance amendment will add two findings to the existing ten findings required by Section 29.20.830 of the Mobile Home Park Conversion Ordinance as follows: (11) If the equivalent number of units proposed to replace the mobile home units will be available to very low, low and moderate income households, proportional to unit affordability levels at the time of mobile home park closure. (12) If each of the proposed replacement units will include similar amenities (e.g. number of bedrooms and bathrooms) as each of the mobile homes that existed at the time of the mobile home park closure. As a result of the above added text, the definition section of the Mobile Home Conversion Ordinance (Section 29.20.805) will be amended to define "unit affordability levels" as follows: Unit affordability levels. The affordability of mobile home units at time of mobile home park closure as related to the State index for very low, low, moderate and above moderate income households. (Very low is 0-50% of the Santa Clara County median income, low is 51-80% of the median income, moderate is 81-120% of the median income, above moderate is 120%+ of the median income. On May 4, 1998, staff met with Bonnie View Mobile Home Park owners Gerald and Clovis Mirassou to discuss the ramifications of the proposed ordinance amendment. The Mirassous are very concerned that the language of the amendment is insufficient and does not take into account variables associated with the costs or rental rates for mobile home units. (For example, an owner occupied mobile home space is comprised of two rental components, space rent and the cost of the mobile home itself.) They stated that all of the units in their Park would be considered affordable to low and very low income households due to Town imposed rent controls that are unique to mobile home parks. The Mirassous request to work with the General Plan Committee and Rental Advisory Committee about the Bonnie View Park and other mobile home parks within Santa Clara County before any action is taken concerning Zoning Ordinance Amendment A-98-03. Gerald Mirassou submitted a letter outlining his concerns (Attachment 6). GENERAL PLAN COMMITTEE RECOMMENDATION: On March 11, 1998 the General Plan Committee recommended this Zoning Ordinance Amendment to the Planning Commission (Attachment 5). The Committee members discussed the overall intent of Housing Element Section 3.5.10 and how the Ordinance amendment should be worded to implement the section. The Committee agreed upon the wording shown above for amending Section 29.20.830. The Committee did not review the amendment to the definition section, because the need for the definition arose during report preparation. CONCLUSION: This Zoning Ordinance Amendment is consistent with the General Plan and actually implements Housing Element Section 3.5.10. The General Plan Committee and Planning Commission recommend that Council adopt the amendment. However, based on input from Bonnie View Mobile Home Park owners Gerald and Clovis Mirassou, Council may decide to return the amendment language to either staff or the General Plan Committee for reconsideration, ENVIRONMENTAL ASSESSMENTS: Is not a project defined under CEQA, and no further action is required. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: ZONING ORDINANCE AMENDMENT A-98-03 May 7, 1998 FISCAL IMPACT: The Zoning Code amendment will not create a fiscal impact on the Town. Attachments: 1. Ordinance amending Zoning Ordinance Sections 29.20.820 and 29.20.805 concerning Mobile Home Park Conversion 2. Planning Commission report for Amendment A-98-03, dated April 16, 1998 3. Planning Commission minutes from April 22, 1998 meeting 4. Housing Element Section 3.5.10 5. General Plan Committee minutes from March 11, 1998 6. Letter from Gerald E. Mirassou, received May 6, 1998 Distribution: Mary -Alice Blice, 484 Woodland Avenue, #43, Los Gatos, CA 95030 Gerald Mirassou, 8709 Los Encantos Circle, Elk Grove, CA 95624 Clovis Mirassou, 5496 Amby Dr., San Jose, CA 95124 Ann Mirassou, 147 Old Orchard Drive, Los Gatos, CA 95032 Douglas R. McNelly, 1307 Merrivale West Square, San Jose, CA 95117 Mark Hansen, 701 N. First St., San Jose, CA 95112 Jack Cole, 14685-53 Oka Road, Los Gatos, CA 95032 Malcom McNelly, 1020 Lakeshore Boulevard, Incline Village, NV 89451 LEB:KS:sm N:IDEVICNCLRPTS\A-98-3. t k ORDINANCE AN ORDINANCE OF THE TOWN OF LOS GATOS AMENDING SECTIONS 29.20.820 AND 29.20.805 OF THE ZONING ORDINANCE OF THE TOWN CODE CONCERNING FINDINGS FOR MOBILE HOME PARK CONVERSION THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS FOLLOWS: SECTION I Town Code Chapter 29 shall be amend as follows: DIVISION 8. CONVERSIONS OF MOBILE HOME PARKS TO OTHER USES Sec. 29.20.805 Definitions. As used in this division, the following words and phrses shal have the following meanings: Unit affordability levels. The affordability of mobile home units at time of mobile home park closure as related to the State index for very low, low, moderate and above moderate income households. (Very low is 0-50% of the Santa Clara County median income, low is 51-80% of the median income, moderate is 81-120% of the median income, above moderate is 120%+ of the median income. (Ord. No. 1316, S.4.38.010, 6-7-76; Ord. No. 1758, S. IV, 8-1-88) Sec. 29.20.820. Same - Findings upon consideration of application. The Town Council , in considering an application for a mobile home park conversion permit, shall accept and hear evidence, shall consider such evidence, and shall make written findings based on such evidence regarding each of the following: (11) If the equivalent number of units proposed to replace the mobile home units will be available to very low, low and moderate income households, ATTACHMENT 1 proportional to unit affordability levels at the time of mobile home park closure. (12) If each of the proposed replacement units will include similar amenities (e.g. number of bedrooms and bathrooms) as each of the mobile homes that existed at the time of the mobile home park closure. (Ord. No. 1316, S.4.38.010, 6-7-76; Ord. No. 1758, S. IV, 8-1-88) SECTION II This ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on May 18, 1998 and adopted by the following vote as an ordinance of the Town of Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on , 1998. This ordinance takes effect 30 days after it is adopted. COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N:\DEV\ORDS\A-98-03.ORD MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA 2 REPORT TO: FROM: SUBJECT: FINDINGS: ACTION: ENVIRONMENTAL ASSESSMENT: EXHIBITS: RECOMMENDATION SUMMARY: A. BACKGROUND: Date: April 16, 1998 For Agenda Of: April 22, 1998 Agenda Item: 8 The Planning Commission Lee E. Bowman, Planning Director Zoning Code Amendment A-98-3 Public hearing to consider amending Town Code Section 29.20.820 regarding Mobile Home Park Conversion, "Findings upon Consideration of Application," to implement Housing Element Section 3.5.10 of the General Plan. APPLICANT: Town of Los Gatos The Planning Commission must make a finding that the Zoning Code Amendment is consistent with the General Plan if their recommendation is for adoption. Recommendation to Town Council. It has been determined that this project is Categorically Exempt pursuant to Section 15301 of the State Environmental Guidelines as adopted by the Town. A. Planning Commission Resolution Recommending Town Council adoption of Zoning Ordinance Amendment A-98-003 B. Housing Element Section 3.5.10 C. General Plan Committee minutes from March 11, 1998 Recommend Zoning Ordinance Amendment A-98-3 to Town Council for adoption. The Town updated the Housing Element of the General Plan in June 1997. The Housing Element implementation measures each have time frames and responsible parties. Section 3.5.10 of the Housing Element is an implementation measure pertaining to the Mobile Home Park Conversion Ordinance. It requires evaluation and revision to the Ordinance during 1997-1998. The Planning Department is responsible for implementation. B. DISCUSSION: Housing Element Section 3.5.10 is attached as Exhibit B. This section requires the evaluation and revision of the Mobile Home Park Conversion Ordinance to specify that "any proposal to convert a mobile home park to a residential development shall provide at least as many low cost housing units as could be accommodated within the existing park's capacity." The General Plan Committee discussed this matter at its February and March meetings. Much discussion took place about the issue of low cost housing and how it should be defined. The Committee decided to relate the cost of housing to unit "affordability". The proposed Ordinance amendment will add two findings to the existing ten findings required by Section 29.20.830 of the Mobile Home Park Conversion Ordinance as follows: ATTACHMENT 2 i The Planning Commission - Page 2 Zoning Ordinance Amendment A-98-003 April 22, 1998 (11) If the equivalent number of units proposed to replace the mobile home units will be available to very low, low and moderate income households, proportional to unit affordability levels at the time of mobile home park closure. (12) If each of the proposed replacement units will include similar amenities (e.g. number of bedrooms and bathrooms) as each of the mobile homes that existed at the time of the mobile home park closure. As a result of the above added text, the definition section of the Mobile Home Conversion Ordinance (Section 29.20.805) will be amended to define "unit affordability levels" as follows: Unit affordability levels. The affordability of mobile home units at time of mobile home park closure as related to the State index for very low, low, moderate and above moderate income households. (Very low is 0-50% of the Santa Clara County median income, low is 51-80% of the median income, moderate is 81-120% of the median income, above moderate is 120%+ of the median income.) C. GENERAL PLAN COMMITTEE RECOMMENDATION: On March 11, 1998 the General Plan Committee recommended this Zoning Ordinance Amendment to the Planning Commission (Exhibit C). The Committee members discussed the overall intent of Housing Element Section 3.5.10 and how the Ordinance amendment should be worded to implement the section. The Committee agreed upon the wording shown above for amending Section 29.20.830. The Committee did not review the amendment to the definition section, because the need for the definition arose during report preparation. D. RECOMMENDATION: This Zoning Ordinance Amendment is consistent with the General Plan and actually implements Housing Element Section 3.5.10. The General Plan Committee recommends amendment adoption. The Planning Commission should therefore: 1. Find that the Amendment is consistent with the General Plan; and 2. Recommend Zoning Ordinance Amendment A-98-3 (Exhibit A) to the Town Council for adoption. 1 Y�2 Bu Lortz, A sistan tanning Director Prepared by: Kristine Syskowski, Planner LEB: KS: me cc: Mary -Alice Blice, 484 Woodland Ave. #43, Los Gatos, CA 95030 Clovis Mirassou, 5496 Amby Dr., San Jose, CA 95124 Ann Mirassou, 147 Old Orchard Dr., Los Gatos, CA 95032 Malcolm McNelly,1020 Lakeshore Boulevard, Incline Village, NV 89451 Jack Cole, 14685-53 Oka Road, Los Gatos, CA 95032 N: \D E V\R E P O RTS\A-98-003 DRAFT Los Gatos Planning Commission Minutes of April 22, 1998 been applied to the project to reduce any potential impacts. 4. The proposed uses of the property are in harmony with the various elements or objectives of the General Plan and the Downtown Specific Plan and the purposes of the Town Code. Carried unanimously. Commissioners Jensen and Morgan absent. Appeal rights recited by Mr. Bowman. Commissioner Bruno requested that in the future the Commission be mindful of compatibility issues with respect to Conditional Use Permits. Mr. Bruno feels this will be important in the future to avoid piece -meal situations. ZONING CODE AMENDMENT A-98-3. (00.08) Public hearing to consider amending Town Code Section 29.20.820 regarding Mobile Home Park Conversion. "Findings upon Consideration of Application", to implement Housing Element Section 3.5.10 of the General Plan. There was no one in the audience to speak to this matter. Chair Decker closed the Public Hearing Commissioner Nachison questioned specific wording relating to "equivalent" and "proportional" regarding unit affordability. Discussion followed regarding the use of the two words. Commissioner Bruno suggested that there is an advantage to leaving the interpretation of the Ordinance flexible. Mr. Korb suggested that context be remembered first and the issue is whether to read the language broadly and create a flexible standard or create a stiff standard. He stated there were two issues; 1) what is the number of replacement units and 2) what are the types of replacement units. Commissioner Nachison questioned if this is to be determined on a case -by -case basis or is it geared to the whole. Commissioner Pirzynski explained that the original language was much more precise but evolved to become less precise and clear and the Committee had wanted to maintain the fact that the housing mix includes Mobile Homes, or equivalent affordability. Mr. Pirzynski stated that this is more flexible in nature because each project presented will require interpretation. Commissioner Nachison questioned who's favor the flexibility would favor. Commissioner Bruno suggested that the Town Council would be the beneficiary of more flexible language. Mr. Korb explained that in a vacuum, vague Language is beneficial to both sides but when the Town adopts a rule, as the Agency responsible for enforcing the rule, the Towns interpretation governs as long as it is interpreted in a consistent mariner. Motion by Chair Decker, seconded by Commissioner Pirzynski to recommend Zoning Code Amendment A-98-3, as purposed, to the Town Council with the following finding: FINDING 20 ATTACHMENT 3 vKuvv 1 1WLL11115 \+Vl1ll111JJltJU Minutes of April 22, 1998 The Zoning Code Amendment is consistent with the General Plan because the General Plan speaks specifically about retaining housing at affordable levels. Carried unanimously. Commissioners Jensen and Morgan absent. NEW OTHER BUSINESS DRAFT Discuss and consider possible revocation of Conditional Use Permit for Posh Bagel located at 125 W. Main Street. (00.09) Chair Decker stated that this matter has been withdrawn from the Agenda. Review Draft 1998-2003 Capital Improvement Program. (00.10) Chair Decker recused herself regarding this matter. Commissioner Bruno stated that the CIP was discussed by the Redevelopment Advisory Committee. Mr. Bruno explained that projects were identified on a priority basis and some have been delayed while other funds had become available for the current year and therefore projects, which had been identified in the past, would now become a reality. There was no one else in the audience to speak to this matter. Vice Chair Nachison closed the Public Hearing. Motion by Commissioner Bruno, seconded by Commissioner Pirzynski to fmd that the Capital Improvements Program is consistent with the General Plan, Downtown Specific Plan, Hillside Specific Plan and Central Los Gatos Redevelopment Plan and forward recommendation of approval to the Town Council. COMMISSION COMMENTS Commissioner Pirzynski questioned the widening of Los Gatos Boulevard from Samaritan Drive to Camino del Cerro which is not funded. Mr. Bowman explained the function for listing unfunded projects in the CIP and stated that although the project was unfunded it showed a relationship to the direction the Town would be taking. Mr. Bowman stated that if the Commission thought this was critical, then a recommendation could be made to the Town Council to move this project into the funded category and transfer a funded project into the unfunded category. Commissioner Bruno would not like to see the CIP modified because some of the currently funded projects have been without funding for a long time. Commissioner Pirzynski pointed out a typographical error on page 83 relating to Bachman Park. Carried unanimously. Commissioners Jensen and Morgan absent. Chair Decker recused. Sub -Committee Reports (00.11). Commissioner Pirzynski reported on the General Plan Committee regarding: 1. At -large member - no specific designation other than Los Gatos resident. 21 L • "' p 9 W, C O _y C m aa) L TO. 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N N y 0 L C m` 7 " i>E80 0 3Em°•E c 0 3 a J U c 3 E 9 3- L o rn 1 o c.c a E ma`1.0 E� O N ti ° E c m E c O ATTACHMENT 4 TOWN OF LOS GATOS 110 East Main Street, Los Gatos, CA 95032 (408) 354-6872 SUMMARY MINUTES OF A MEETING OF THE GENERAL PLAN COMMITTEE, OF THE TOWN OF LOS GATOS FOR March 11, 1998 HELD IN THE TOWN COUNCIL CHAMBERS, CIVIC CENTER, 110 EAST MAIN STREET, LOS GATOS, CALIFORNIA. The meeting was called to order at 6:00 P.M. ATTENDANCE General Plan Committee Members Present: Linda Lubeck, Elizabeth Smith, Sandy Decker, Joe Pirzynski, Jan Hutchins, Gary Ehlert , Marcia Jensen Members Absent: Steve Boersma Staff Present. Others present: Lee E. Bowman - Planning Director, Bud Lortz - Asst. Planning Director, Kristine Syskowski, Assistant Planner Mike Burke Verbal Communication: a. The Committee requested Bud Lortz to check the status of existing electronic signs on HWY 85 and HWY 17 alerting motorists to alternate routes. b. Elizabeth Smith brought an article about affordable housing and distributed it to the Committee (attached). ITEM 1: Discuss draft Zoning Code amendment concerning mobile home parks to implement Section 3.5.10 of the Housing Element. Committee members discussed the overall intent of Housing Element Section 3.5.10 and how the Ordinance amendment should be worded to implement the section. Linda Lubeck made a motion to forward the amendment to the Planning Commission and Town Council for approval. Jan Hutchins seconded the motion and the Committee supported the motion unanimously. The amendment as recommended adds the following text to the Zoning Code Section 29.20.820 "Findings upon consideration of application": (11) If the equivalent number of units proposed to replace the mobile home units will be available to very low, low, and moderate income households, proportional to unit affordability levels at the time of mobile home park closure. (12) If each of the proposed replacement units will include similar amenities (e.g. number of bedrooms and bathrooms) as each of the mobile homes that existed at the time of the mobile home park closure. ITEM 2: Discuss status of General Plan Update process. Lee Bowman informed the Committee of the Town Council's decisions about the General Plan update on March 2, 1998. The Council will proceed with the update and will appoint a second Task Force, including members from the first Task force that are interested in serving. The Council authorized staff to send the RFP's for technical data collection. The draft RFP's will be attached to the next General Plan Committee agenda for review. ATTACHMENT 5 i General Plan Committee minutes March 11, 1998 Page 2 The Council requested that the General Plan Committee begin addressing the "How" issues identified by the Task Force in its Final Report dated January 26, 1998. These issues will be attached to the next agenda. Committee members expressed a desire to have a liaison between themselves and the Task Force. They also expressed the importance of having a facilitated "kick-off' meeting with the Task Force, where the roles of all bodies involved in the update process would be delineated. ITEM 3: Adjourn. Meeting adjourned at 7:15 PM. The next regular meeting of the General Plan Committee is April 8, 1998. Prepared by: {pristine Syskowski, Assistant Planner cc: Planning Commission Chair General Plan Committee N:1DEV?ADMINSEC\MINUTES\GPC3-11.98 _1."11L L., C./ Lll.- UUL May 4, 1998 Honorable Town Council Town of Los Gatos Los Gatos, CA 95031 U r y o C 1998 TOWN OF IOs Gk ros PLA; ', jC .05;>.1;777.151.0r Re: Zoning Ordinance Amendment A-98-003. (Mobile Home Park Conversion Ordinance) Honorable Town Council: I am writing this letter to voice my vehement objection to the above mentioned Zoning Code Amendment and urge your no vote, I understand the intent ofthe amendment is to implement Section 3.5.10 ofthe Housing Element of the General Plan, but this ordinance is seriously flawed, inconsistent, unclear and patently unfair. Furthermore, this ordinance should have been reviewed by the Rental Advisory Committee as well as the General Plan Committee since the Mobile Home Rental Ordinance falls under its purview and is directly related. It is my recommendation that this ordinance be further reviewed by the Rental Advisory Committee and the General Plan Committee before being considered by the Planning Commission and the Town Council. In the first place, proposed finding (11) refers to "mobile home units" which makes no distinction between a mobile home owner or a renter occupied mobile home owned by the park owner. Both the Conversion Ordinance and Mobile Home Rental Ordinance make such a distinction and it is vital to the application of each. Under this ordinance we would be required to replace even rental units we own with low cost units in a new development. Also, Section 3.5.10 ofthe Housing Element infers that no matter what the existing income levels are in a mobile home park, upon conversion to a residential development as many units (no income specification) that can be accommodated in a park, that same number must be provided to low and moderate income households. Using our park as an example, we can accommodate 71 units in our park (68 mobile homes and 3 apartments). Upon conversion to a residential development 71 low cost units would be required. Therefore, we cannot even convert to a residential use unless we build at least 71 units, and our current General Plan designation (low -density residential) would not even allow us to build 71 units. It appears that the Town is either totally restricting us to a mobile home park or giving us tacit approval to rezone our property for at Ieast medium -density residential use. This ordinance treats a mobile home park differently than an apartment complex even though many of the same conditions exist. In the Mobile Home Park Rental Ordinance a park -owned mobile home is treated like an apartment unit as far as rent increases are concerned. Upon vacancy the owner can raise the rent to market rates if he so chooses. However, if an apartment owner chooses to demolish his existing apartment and build another on the same site, he is not required to provide all low cost housing or even to replace the existing number of low cost units existing at the time of demolition, He need only to comply with the existing Town requirement of providing 10% of the units as low cost housing. The park owner, however, must not only buy out the existing coach owners at "in place" values upon conversion, but also replace all the units in the park with low cost units in any subsequent new development. As you know, "in place" values are artificially high due to the restrictions on rent raises when a coach owner sells his coach. Thus, the coach owner takes some of the land value with him A park owner, in essence, not only buys some ofbis own land back, but has to replace that unit with low cost housing. ATTACHMENT 6 Unless we buy coaches in our park we have no way of getting market rents. We know what market rents are for coaches in our park because we are currently commanding rents of up to $1,200 for coaches that we own, yet coach owners are paying far less for space rent and coach payments. This is all due to the restrictions placed on us by the various Town ordinances. As you can see, we are already heavily subsidizing tenants and have no way of recouping that subsidy like the apartment owner does. Under Section 3.4 #14 of the Housing Element, direct reference is made to not concentrating low-cost housing: "New and existing dwelling units for ownership and rental by very low, low and moderate income households shall be dispersed through the Town_" The proposed ordinance isin direct conflict with this policy and it appears that little thought has been given as to how this policy can be fused with policy #10 under the same section which states: "The Town shall discourage the conversion of mobile home parks into other uses that would reduce the availability of comparably priced housing ups Both of these policies can be accomplished without being in conflict with one another by use of the existing implementation tools (Mortgage Credit Certificates, BMP Program, density bonuses, etc.) and perhaps some new ones, such as requiring apartment owners to provide their fair share of low cost housing and implementing a Town Transfer Tax (like the City of San Jose and Santa Clara County) to be targeted for provision of low cost housing. I also have serious concerns as to how rents are to be determined within a mobile home park. Unlike apartments (where only a unit is rented), an owner -occupied mobile home space comprises two rental components (space rent and the cost of the mobile home itself). This poses a complex problem,. Space rent is fairly easy to determine and is currently accessible through the Mobile Home Rental Ordinance process. However, ascertaining the value of a coach at the time of park closure is problematic at best. If a coach owner has recently purchased a modest coach for S40,000 and puts down 20% and amortizes payments over 15 years, his monthly costs for the coach are $315 and his space rent is $450. Thus, his total costs are seemingly $765/month. But what about the 20% down, how is that figured into the equation? On the other hand, a long-time park resident who has the most expensive ($80,000) and luxurious coach in the park has long since paid for his coach. Therefore, his monthly rental cost consists merely of paying his space rent ($450). These are questions the proposed ordinance doesn't address. All of the above arguments relate to the vagaries, inconsistencies and flaws in the ordinance, but I feel the most relevant point to address is that of fairness. The Town of Los Gatos through Draconian legislative measures has systematically made mobile home parks a repository of low cost housing. We were zoned to allow no other use but a mobile home park, restricted as to how much we can raise rents (even upon change of occupancy), required to buy out mobile homes at 'in place" values upon conversion, and for all intents and purposes, restricted from going out of business unless we forego economic gain in our property. All of these measures removed value from our operation, both current and future. Now this proposed ordinance continues this same trend. It is unfair to place so much burden for the provision of low cost housing on so few property owners. Frankly, it smacks of political expediency. Rather than explore other methods which would more fairly distribute low cost housing, it appears easier for the Council and city staff to rely on mobile home parks to provide at least 136 units of their low cost housing inventory. If the City allowed us to convert from a mobile home park to a higher density residential development under the proposed ordinance, we would have to write down the rent of 71 units at least $300 per unit That would effectively remove over $2 million from the value of the land. That is a high price to pay for one property owner to implement a Housing Element. We do recognize the Town's obligations to develop 05/06i98 WED 10:39 FAX 916 685 5255 MAIL BOXES ETC. ZZ004 high quality and diverse housing opportunities in Los Gatos, and we have demonstrated to the Town that we are willing and able to assist in the process_ For over ten years we have personally subsidized elderly tenants by stabilizing their rents so they can stay in the park. We, along with mobile home park tenants, drafted a fair and equitable Mobile Home Rental Ordinance and we are presently serving on the Rental Advisory Committee to promote and develop Townwide rental policies and standards. Given the high property values in the Town we realize it is a monumental task to provide affordable housing, but this proposed ordinance is just not fair and needs to be redrafted starting at the Committee leveL There are other remedies to the problem that will more fairly distribute the economic burden_ We have already mentioned two in the body of this letter and we are ready and willing to help find and implement others. I thank you for reading this letter and I trust that the information contained in it will convince you to vote no on this Zoning Code Ordinance proposaL Respectfully yours, AA/7 2744.totme-e4 Gerald E. Mtrassou Co -Owner Bonnie View Mobile Home Park cc: Regina Faulkner Bill Krause Town Council Minutes May 18, 1998 Redevelopment Agency Los Gatos, California HEARINGS CONTINUED TOWN FEES, RATES AND CHARGES/CONT. Motion by Mr. Attaway, seconded by Mr. Blanton, to close the public hearing. Carried by a vote of 4 ayes. Mrs. Benjamin absent. Motion by Mr. Attaway, seconded by Mr. Hutchins, that Council adopt Resolution 1998-69 entitled, RESOLUTION OF THE TOWN OF LOS GATOS CONTINUING CERTAIN DEPARTMENTAL SERVICE FEES. RATES AND CHARGES; AND ADDING CERTAIN FEES. RATES AND CHARGES. Carried by a vote of 4 ayes. Mrs. Benjamin absent. Council Consensus to bring back the subject of fees for demolition proceedings. Specifically fees concerning demolition of secondary units to be discussed during the next Town Fee Schedule Study. MOBILE HOME PARK CONVERSION/HEARING/ORDINANCE INTRODUCTION (20.46) Mayor Lubeck stated that this was the time and place duly noted for public hearing to consider amending the Town Code regarding Mobile Home Park Conversion, Section 29.20.820 "Findings Upon Consideration of Application" and Section 29.20.805 "Definitions," to implement Housing Element Section 3.5.10 of the General Plan, Zoning Code Amendment A-98-03. Applicant: Town of Los Gatos. The following people from the audience spoke to this issue: Jack Jones, 484 Woodland Ave. #45, Los Gatos Mobile Home Park, supports the continued operation of the Park. Martha Hoffman, 484 Woodland Ave. #72, Mobile Home Park resident would like some protection for her home. Stephen Carlson, 484 Woodland Ave. #66, was in favor of the amendment and in support for of the residents of the Park. Paula Alves, 484 Woodland Ave. #47, tenant needs to keep a place to live at same cost as she is now paying. She asked for specifics and clarity in the ordinance. Victoria Recktenwald, 484 Woodland #25, supply housing at same value, and be more clear in the wording of the ordinance. Marilyn Bowley, 484 Woodland Ave. #51, asked what a low income unit is defined as? Daniel Hingle, 484 Woodland Ave., lives at the park and is a lifetime Los Gatos resident. He asked what the rights of a tenant are? Rick Florendo, 484 Woodland Ave., long time resident of Los Gatos would appreciate Council's support of this neighborhood. Geoff Lamb, 58 Chester Street, spoke for the surrounding neighborhood and noted the impact a large residential complex would have on those streets. Gerald Mirassou, 8709 Los Encantos Circle, Elk Grove, co-owner of Bonnie View Mobile Home Park, 14685 Oka Road, is not in favor of these amendments, and noted for the record and for his tenants that he has no intention of converting his Park. Thomas Furr, 484 Woodland Ave. # 14, resident who is concerned about this process. Brian Kulman, 59 Chester Street, is not in favor of high density housing in this neighborhood. TC:D10:MM051898 4 Town Council Minutes May 18, 1998 Redevelopment Agency Los Gatos, California HEARINGS CONTINUED MOBILE HOME PARK CONVERSION/HEARING CONT. Speakers continued: Woman Speaker, resident of the park spoke of community support from her neighbors. Pete Arena, 62 Chester Street, not in favor as homeowner in area. Leisa Morton, 484 Woodland Ave. # 16, Mobile Home Park, spoke of the neighborhood where people have lived for over twenty years. No one else from the audience addressed this issue. Motion by Mr. Attaway, seconded by Mr. Hutchins, to close the public hearing. Carried by a vote of 4 ayes. Mrs. Benjamin absent. Council considered a variety of options and decided to begin again for clarity and understanding of the issues involved. Motion by Mr. Blanton, seconded by Mr. Hutchins to reject the ordinance before Council. Carried by a vote of 4 ayes. Mrs. Benjamin absent. Council Consensus to send this item to the General Plan Committee and to the Rent Advisory Committee for their study and reports. Mayor Lubeck will meet with owners and tenants to discuss the process and concerns, such as: 1) What does conversion really mean and how does that affect me? 2)What is the mechanism for raising rents? 3) What mechanism is used for closure? The Rent Advisory Committee will report to the General Plan Committee. Committees and staff will work on this for a few months to craft an ordinance which recognizes concerns of owners tenants and neighborhoods and looks at the issues comprehensively. Some considerations of BMP units should be discussed. Definitions will be clarified. LOS GATOS BLVD 15575/HIGHWAY COMMERCIAL/ORDINANCE INTRODUCTION (21.46) Mayor Lubeck stated that this was the time and place duly noted for public hearing to consider a request for approval of a zone change from R-1:8 (Single Family Residential, Minimum Lot Size 8,000 Sq. Ft.) to CH (Restricted Highway Commercial.) No significant environmental impacts have been identified as a result of this project, and a negative declaration is recommended. Development Application DEV-98-001. Negative Declaration ND-98-001. Property Location: 15575 Los Gatos Boulevard. Applicant: Sam Maliniak. Property Owner: Lexmar Development Co. No one from the audience addressed this issue. Motion by Mr. Attaway, seconded by Mr. Hutchins, to close the public hearing. Carried by a vote of 4 ayes. Mrs. Benjamin absent. Motion by Mr. Attaway, seconded by Mr. Blanton, that Council make the Negative Declaration and find the amendment is consistent with the General Plan and Los Gatos Boulevard Plan. Carried by a vote of 4 ayes. Mrs. Benjamin absent. TC: D10: MM051898 5