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13 Staff Report - 347 Massol Avenue4*N0 i» { t s G~oS COUNCIL AGENDA REPORT MEETING DATE: 6116108 ITEM NO: 13 DATE: June 12, 2008 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER SUBJECT: CONSIDER WHETHER TO APPROVE A GENERAL PLAN AMENDMENT FROM MEDIUM DENSITY RESIDENTIAL (5-12 DWELLING UNITS PER ACRE) TO HIGH DENSITY RESIDENTIAL (12-20 DWELLING UNITS PER ACRE) AND INTRODUCE AN ORDINANCE MAKING A ZONE CHANGE FROM RM:5-12 TO RM:12-20:PD FOR A FIFTY-SIX LOT RESIDENTIAL SUBDIVISION TO CONVERT THE EXISTING APARTMENTS TO CONDOMINIUMS. APN 510-14-004. PROPERTY LOCATION: 347 MASSOL AVENUE. PROPERTY OWNER: PROPERTY OWNER: LYON BAY TREE APARTMENTS, LLC. APPLICANT: APPLICANT: LYON REALTY ADVISORS. FILE #GP-08-01 & PD-07-02. RECOMMENDATION: 1. Hold the public hearing and receive public testimony; 2. Close the public hearing; 3. Make the following motions: If the Council decides to approve the proposed project, the following actions are recommended: a. Environmental + Find that the proposed project is Categorically Exempt pursuant to Section 15301 (k) of the State Environmental Guidelines as adopted by the Town because there is no expansion of the existing use and there are no physical changes involved that would not otherwise be exempt (Attachment 3). b. Approve the General Plan amendment and zone change • Make the required findings for the General Plan amendment and zone change (Attachment 3); PREPARED BY: BUD N. LORD DIRECTOR OF COMMUNITY DEVELOPMENT N:IDEVICNCLRPTS120081347Massol. doc Reviewed by: Assistant Town Manager WTown Attorney Clerk Administrator Finance mmunity Development PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: 347 MASSOL AVENUE June 16, 2008 • Move to adopt a Resolution approving the General Plan amendment (Attachment 4) (motion required); • Move to waive the reading of the zone change Ordinance (Attachment 5)(motion required); • Direct the Clerk to read the title of the zone change Ordinance (Attachment 5) (no motion required); • Move to introduce the Ordinance to effectuate the zone change (Attachment 5)(motion required). c, Alternatives • Move to introduce the Ordinance to effectuate the zone change (Attachment 5)(motion required) with the following additional condition(s) to address the parking deficiency: Refer the concept of including the Bay Tree frontage of Massol Avenue in the Almond Grove Parking District to the Parking and Transportation Commission for discussion and a recommendation which would be forwarded to the Council for consideration; and/or Require the Conditions Covenants and Restrictions to incorporate a provision limiting each dwelling unit to a maximum of two vehicles, • Continue the project (motion required) and direct staff to incorporate discussion of condominium conversions and possible amendments to the parking regulations as part of the Housing Element update. The project would be returned to the Council after the Housing Element update is complete; or • Move to deny the General Plan amendment and zone change (motion required). 4. Refer to the Town Attorney for preparation of the appropriate resolution (no motion required). DISCUSSION: A, Project Summary The applicant is requesting approval of the following: • A General Plan amendment from Medium Density Residential (5-12 dwelling units per acre) to High Density Residential (12-20 dwelling units per acre); • A zone change from RM-5:12 to RM-12:20:PD; • Conversion of the existing apartments to condominiums; and • Minor exterior modifications to the existing apartment buildings. PAGE3 MAYOR AND TOWN COUNCIL SUBJECT: 347 MASSOL AVENUE June 16, 2008 Please see the applicant's current proposal (Attachment 8) for further information on the following topics. B. General Plan Amendment and Zone Change The existing General Plan Designation of the parcel is Medium Density Residential (5-12 units per acre). The existing Zoning Designation of the parcel is RM-5:12 (Multi-Family Residential 5-12 units per acre). The existing density of the project is 20.8 dwelling units per acre (du/ac) which exceeds the current General Plan Designation as well as the Town's maximum allowed density of 20 du/ac. The applicant proposes to amend the General Plan designation from Medium Density Residential (5-12 du/ac) to High Density Residential (12-20 du/ac) and to change the Zoning from RM-5:12 (Multi-Family Residential 5-12 du/ac) to RM-12:20:PD (Multi-Family Residential 12-20 du/ac with a Planned Development Overlay), These designations will snore closely match the current density of the project. With the proposed amendments, the project would still exceed the 20 du/ac maximum. However, the applicant is proposing to provide eight "Below Market Price" (BMP) units with the condominium conversion. BMP units are not counted in a project's density calculation, so the resulting density for the proposed project with the BMP unit deduction would be 17.9 du/ac. This project would then conform to the proposed General Plan density range and zoning designation. C. Subdivision / Conversion to Condominiums The applicant is proposing to subdivide the existing single parcel which currently contains 56 apartments. The subdivision would create 56 air space condominium units (one for each existing apartment) and one common parcel for a total of 57 parcels. If the General Plan amendment and zone change are approved, the applicant will be required to file a Subdivision application. The proposed PD Ordinance (Attachment 5) contains a provision allowing the subdivision to be approved by the Development Review Committee. Policy H.P.3.1 of the Housing Element states the following: Support preservation and conservation of existing housing units that provide affordable housing opportunities for Town residents and workers and strive to ensure that at least 30% of the housing stock are rental units. Currently, the Town's housing stock is comprised of approximately 35% rentals. The conversion of the existing 56 apartments to condominiums will not result in a dramatic reduction in the Town's current rental housing stock. If the General Plan amendment and zone change are approved, the Town will continue to maintain rental housing stock in excess of the 30% specified in the General Plan policy above. PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: 347 MASSOL AVENUE June 16,2008 The applicant asserts that the conversion will provide market rate units at a "practical affordability" sales price and that this is beneficial for people who may not otherwise be able to purchase housing in the Town (See Attachment 8). This assertion may be accurate, but cannot be guaranteed because the proposed Planned Development does not restrict the sales price of the market rate units. The non-BMP units will be sold and re-sold at market rate. Exhibit 7 of Attachment 2 (submitted under a separate cover) is a map which shows the location of apartment complexes similar to the subject property. If this conversion is approved, staff estimates that 1485 units could seek similar conversion. Staff is concerned about the precedent setting aspect of this project. No apartment complexes have been converted in the Town since 1972 because of the parking, open space, and BMP requirements. It should be noted that in 1973 an application for condo conversion was considered for the subject property. That proposal was denied because it was determined that the Town should consider adopting condo conversion guidelines. Council has never directed staff to develop condo conversion guidelines and staff uses the zoning regulations to evaluate proposed apartment conversions and new condo projects. With the exception of the Sobrato project, no apartment complexes have been built in that same time frame and none are proposed. Given the significant potential implications of condo conversions staff will add "condo conversions" as a policy issue to be addressed in the Housing Element Update so that the issue can be discussed and studied and appropriate policy direction can be provided. Staff will continue to recommend denial of future non-compliant condo conversions pending completion of the Housing Element update. D. BMP Units The Town Code requires that all projects, including condominium conversions, provide BMP units. The Code requires the provision of eight BMP units for this project and the BMP Guidelines establishes the sales price for the units. Additionally, the Guidelines require that the affordability level of proposed units should be balanced. Therefore, four of the units must be sold at the low income level and four of the units must be sold at the moderate income level. The current regulation relating to production of units is a sliding scale that starts at ten percent for projects with 5-19 units and moves up to twenty percent for projects with over 100 units. This sliding scale was adopted to offer a gradually increasing production requirement depending on the number of units in a proposed project. It should be noted that planned developments with an underlying zoning designation of HR and any other project with 5-9 units may ask to pay an in-lieu fee rather than providing the required number of units. However, staff works with applicants to have the units produced rather than receiving payment of the in-lieu fees whenever possible because production of BMP units in Town is challenging. Over the years the Town has refined and relaxed some of the criteria relating to affordable housing based on "best practices." PAGE 5 MAYOR AND TOWN COUNCIL SUBJECT: 347 MASSOL AVENUE June 16, 2008 The applicant has reconsidered their position on their original request to allow the proposed BMP units to be sold at a higher price than the current BMP Guidelines allow. The applicant is now proposing to provide eight BMP units that comply to the BMP Guidelines, including price. The following chart illustrates the current selling price requirements for the BMP units in Bay Tree Apartments: Unit Size Affordable to 80% Income Level Affordable 100% Income Level 1 Bedroom $183,928 $254,699 2 Bedroom $210,217 $291,084 E. Parkin The Town Code requires three parking spaces per unit for condominium projects which equates to 168 spaces for this project. The complex currently has 56 spaces. The applicant proposes to provide 36 additional parking spaces, including 20 tandem spaces which are not permitted by Town Code (See Exhibit B of Attachment 5). The proposed total of 92 spaces will provide 1.64 spaces per unit which will not comply with the Town Code requirement. In the Recommendation section above, staff has offered the following options for the Council's consideration: Refer the concept of including the Bay Tree portion of Massol Avenue in the Almond Grove Parking District to the Parking and Transportation Commission for discussion and a recommendation which would be forwarded to the Council for consideration; and/or Require the CC&R's to incorporate a provision limiting the maximum number of vehicles of the occupants to two. While this will not provide additional on-site parking spaces it may further the goal of reducing the on-street parking impacts to properties beyond the frontage of the proposed project. The applicant has provided additional information (See Attachment 8) regarding their request to provide less parking than is currently required by Town Code, Additionally, staff has added Condition #7 of Attachment 5 to require the applicant to explore the possibility of on- site covered and/or uncovered bicycle parking. F. Private Open Space PAGE 6 MAYOR AND TOWN COUNCIL SUBJECT; 347 MASSOL AVENUE June 16, 2008 The Town Code requirement for private open space is 200 square feet for ground floor units and 120 square feet for second floor units. Six of the units will not comply with these requirements (See Exhibit 4 of Attachment 2 previously submitted). G. Facade Improvements The applicant has also provided conceptual renderings of proposed exterior facade improvements (See Attachment 8). If the General Plan amendment and zone change are approved the applicant will be required to file an Architecture and Site application for approval of the facade improvements. The proposed PD Ordinance (Attachment 5) contains a provision allowing the Architecture and Site application to be approved by the Development Review Committee. H. Traffic The Parks and Public Works Department has determined that the conversion of the apartments to condominiums will not result in any traffic impacts. The trip generation rates for condominiums are less than the rates for apartments. I. Planning Commission The Commission considered these applications on April 23, 2008 and took the following actions on a 6-1 vote: Recommended denial of; 1. The General Plan Amendment from Medium Density Residential to High Density Residential. 2. The zone change from RM;5-12 to RM:12-20:PD. The recommendation for denial of the applications was made because the applicant was not meeting the BMP regulations and inadequate parking was being provided. Staff has provided the Council with the verbatim minutes of the Planning Commission's meeting (Attachment 1 submitted under a separate cover). The following outlines the direction the Commission provided in their motion: • 360 degree architecture was important; • The Commission should be the deciding body for the Architecture and Site application if the project is approved; • Consider a deed restriction that requires the units to be owner occupied. J. Town Committee Mectings 1. General Plan Committee PAGE 7 MAYOR AND TOWN COUNCIL SUBJECT: 347 MASSOL AVENUE June 16, 2008 On April 9, 2008, the General Plan Committee (GPC) considered the applicant's request to amend the General Plan and zoning designation for the existing parcel. The GPC expressed numerous comments about the proposal. The GPC recommended approval of the General Plan amendment and zone change by a 4-3 vote. In general the GPC was concerned about the number of BMP units and parking. 2. Conceptual _Development Advisory Committee The Conceptual Development Advisory Committee (CDAC) reviewed this proposal on August 6, 2006. The CDAC's comments are attached (Exhibit 6 of Attachment 2 submitted under a separate cover). The Committee expressed numerous comments about the proposal. In general the CDAC was concerned about the loss of rental units and parking. CONCLUSION: Staff has carefully considered the Town Code requirements, applicable General Plan goals, policies, and strategies, as well as, comments made by the applicant, Town Committees, and the Planning Commission. Staff concurs with the Commission's recommendation for denial because the proposed parking does not comply with Sec. 29.10.150 of the Zoning Ordinance. If the Council determines that the applicant's project and proposed parking are appropriate, staff recommends that the Council direct staff to add "condo conversions" as a policy issue to be addressed in the Housing Element Update so that the issue can be discussed and studied and appropriate policy direction can be provided which may include direction to consider preparing Condominium Conversion Guidelines. Additionally, staff is concerned about condominium conversions in general. Historically, condominium conversion applications have not been submitted because existing conditions precluded property owners from meeting one or more of the following Town Code requirements: • Providing required parking; • Providing required private open space; • Meeting existing density requirements; and/or • Meeting BMP requirements. Staff has had conversations with other apartment complex owners in Town who are awaiting the outcome of this proposal. If this application is ultimately approved by the Town Council staff expects additional condominium conversion applications will be filed. As previously mentioned, staff has prepared Exhibit 7 of Attaclunent 2 (submitted under a separate cover) illustrating areas of Town which currently contain apartments. Staff does not consider an approval of this application as setting precedent if the Council directs staff to include discussion on "condo conversions" as part of the General Plan Update. Any PAGE 8 MAYOR AND TOWN COUNCIL SUBJECT: 347 MASSOL AVENUE June 16, 2005 apartment project owner who may indicate a desire to convert to condominiums and do not meet current Town Code and BMP requirements will be told an application is premature and then be directed to postpone submittal until after the adoption of the new Housing Element, ENVIRONMENTAL ASSESSMENT: It has been determined that the proposed project is Categorically Exempt pursuant to Section 15301 (lc) of the State Environmental Guidelines as adopted by the Town because there is no expansion of the existing use and there are no physical changes involved that would not otherwise be exempt. FISCAL IMPACT: None. Attnelhments- Previously submitted to the Town Council under a separate cover: 1. Excerpt of the Planning Commission meeting minutes of April 23, 2008. 2. Report to the Planning Commission (With Exhibits) for the meeting of April 23, 2008. New Submittals: 3. Required Findings and Considerations. 4. Resolution for General Plan Amendment (2 pages) and General Plan amendment Exhibit (Exhibit A). 5. Planned Development Ordinance (7 pages), Rezoning Exhibit (Exhibit A), and Official Development Plans (Exhibit B). 6. Petition and letters of opposition from Bay Tree tenants (15 pages). 7. Two letters of opposition from neighbors (18 pages), received June 11, 2008 8. Letter from the applicant (14 pages), received June 11, 2008. Distribution: Lyon Realty Advisors, Attn: Ron Cole, 4901 Birch St., Newport Beach, CA 92660 BNL:RT:JP REQUIRED FINDINGS FOR 347 Massol Avenue General Plan Amendment GP-08-01 Planned Development Application PD-07-02 Requesting approval of a General Plan amendment from Medium Density Residential (5-12 dwelling units per acre) to High Density Residential (12-20 units per acre) and a zone change from RM:5-12 to RM:12-20:PD for a fifty-six lot residential subdivision to convert the existing apartments to condominiums. APN 510-14-004 PROPERTY OWNER: Lyon Baytree Apartments LLC APPLICANT: Lyon Realty Advisors FINDINGS Find that the proposed project is Categorically Exempt pursuant to Section 15301 (k) of the State Environmental Guidelines as adopted by the Town because there is no expansion of the existing use and there are no physical changes involved that would not otherwise be exempt. ■ All General Plan Amendments must be found to be internally consistent with the General Plan. E That the zone change is consistent with the General Plan. That the work proposed is consistent with the Redevelopment Plan for the Los Gatos Redevelopment Project Area (Section IV.B). N:1DEV1F1ND1NGS1347Masso1.doc ATTACHMENT 3 RESOLUTION NO. RESOLUTION OF THE TOWN OF LOS GATOS AMENDING THE GENERAL PLAN TO CHANGE THE DESIGNATION FROM MEDIUM DENSITY RESIDENTIAL TO HIGH DENSITY RESIDENTIAL FOR A PROPERTY AT 347 MASSOL AVENUE WHEREAS, pursuant to Government Code Section 65353, the Town Council conducted a public hearing for consideration of amendments to the General Plan on June 16, 2008. WHEREAS, during this hearing, the Town Council considered the General Plan Amendment to change the land use designation from Medium Density Residential to High Density Residential. RESOLVED, the Town Council finds that (a) the proposed General Plan amendment is internally consistent with the existing goals and policies of the General Plan and its corresponding elements and (b) that all proceedings have been conducted in compliance with the provisions of Government Code Section 65350 et seq. RESOLVED, the Town Council hereby changes the land use designation of the General Plan as shown on Exhibit A from Medium Density Residential to High Density Residential. ATTACHMENT 4 PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the day of 2008 by the following vote: COUNCIL MEMBERS AYES: NAYES : ABSTAIN: ABSENT: SIGNED: MAYOR OF THE TOWN OF LOS GATOS ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA LOS GATOS, CALIFORNIA 347Masso1GPA,d0c \o~ 34TMassol Avenue TOWN OF LOS GATOS Application No. GP-08-01 A.P.N. #510-14-004 Change of the general plan map amending the Town General Plan From: Medium Density Residential (5-12 units per acre) To: High Density Residential (12-20 units per acre) Forwarded by Planning Commission Approved by Town Council Date: Clerk Administrator Mayor Date: Ord: EXHIBIT A ORDINANCE OF THE TOWN OF LOS GATOS AMENDING THE TOWN CODE EFFECTING A ZONE CHANGE FROM RM:5-12 TO RM:12-20:PD FOR PROPERTY AT 347 MASSOL AVENUE (APNs 510-14-004) THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS FOLLOWS: SECTION I The Town Code of the Town of Los Gatos is hereby amended to change the zoning on property at 347 Massol Avenue (Santa Clara County Assessor Parcel Numbers 510-14-004) as shown on the map attached hereto as Exhibit A, and is part of this Ordinance, from RM:5-12 (Medium Density Residential, 5-12 dwelling units per acre) to RM:12-20:PD (High Density Residential, 12-20 dwelling units per acre, Planned Development). SECTION Il The PD (Planned Development Overlay) zone established by this Ordinance authorizes the following construction and use of improvements: 1. Conversion of the existing fifty-six apartments to condominiums, 2. Parking lot modifications and other site improvements shown and required on the Official Development Plan. 3. Exterior fayade improvements to the existing buildings. 4. Uses permitted are those specified in the underlying RM (Multiple Family Residential) zone by Sections 29.40.610 (Permitted Uses) and 29.20.185 (Conditional Uses) of the Zoning Ordinance, as those sections exist at the time of the adoption of this Ordinance, or as they may be amended in the future, subject to any restrictions or other requirements specified elsewhere in this ordinance including, but not limited to, the Official Development Plan. However, no use listed in Section 29.20.185 is allowed unless specifically authorized by this Ordinance, or by Conditional Use Permit. Page 1 of 7 ATTACHMENT 5 SECTION III COMPLIANCE WITH OTHER DEVELOPMENT STANDARDS All provisions of the Town Code apply, except when the Official Development Plan specifically shows otherwise. SECTION IV A recorded final map and Architecture and Site approval are required before exterior modification and site improvement construction work is performed, whether or not a permit is required for the work and before any permit for construction is issued. Construction permits shall only be in a manner complying with Section 29.80.130 of the Town Code. SECTION V The attached Exhibit A (Map), and Exhibit B (Official Development Plans), are part of the Official Development Plan, The following conditions must be complied with before issuance of any grading, or construction permits: TO THE SATISFACTION OF THE DIRECTOR OF COMMUNITY DEVELOPMENT: Planning Division 1. APPROVAL: This application shall be completed in accordance with all of the conditions of approval listed below and in substantial compliance with the plans approved and noted as Exhibit 8 of Attachment 2 of the report to the Town Council for the Tune 16, 2008 meeting. Any changes or modifications made to the approved plans shall be approved by the Director of Community Developmcnt, Development Review Committee, Planning Commission or the Town Council, depending on the scope of the change(s). 2. TOWN INDEMNITY: Applicants are notified that Town Code Section 1.10.115 requires that any applicant who receives a permit or entitlement from the Town shall defend, indemnify, and hold harmless the Town and its officials in any action brought by a third party to overturn, set aside, or void the permit or entitlement. This requirement is a condition of approval of all such permits and entitlements whether or not expressly set forth in the approval. Page 2 of 7 3. BELOW MARKET PRICE (BMP) UNITS: Eight (8) BMP units will be provided as part of the approved development plan per Town Code Section 29.10.3025 and 29,10,3030. The applicant shall meet with the Director of Community Services prior to the issuance of any permits or the recordation of the final subdivision map to commence the BMP process for the units, 4. DEED RESTRICTION: Prior to issuance of a building permit or recordation of the final subdivision map, a deed restriction shall be recorded by the applicant with the Santa Clara County Recorder's office, stating that the required BMP units must be sold as a below market priced units pursuant to the Town's BMP Guidelines. The BMP Guidelines in effect at the time of the sale of the market rate units shall be used unless the sales prices in the BMP Guidelines have been reduced to a level lower than the prices in effect in 2008. 5. ARCHITECTURE AND SITE REQUIRED: An Architecture and Site application and approval is required for the fayade improvements, parking lot improvements, and other site improvements, The Development Review Committee may be the deciding body for the Architecture and Site applications. 6. SUBDIVISION REQUIRED: A tentative map application shall be approved prior to the submittal of building permits, The Development Review Committee may be the deciding body for the tentative map. 7. BIKE RACKS: The property owner shall work with staff to explore the possibility of on-site covered and/or uncovered bicycle parking. 8. COMPLIANCE MEMORANDUM: A memorandum shall be prepared and submitted with the building permit and/or final subdivision map detailing how the Conditions of Approval will be addressed. Building Division 9. PERMITS REQUIRED: A building permit shall be required for exterior facade improvements and parking lot modifications. Separate building permits are required for site retaining walls, water tanks, and swimming pools; separate electrical, mechanical, and plumbing permits shall be required as necessary. 10, CONDITIONS OF APPROVAL: The Conditions of Approval must be blue-lined in full on the Page 3 of 7 cover sheet of the construction plans. 11. SIZE OF PLANS: Four sets of construction plans, maximum size 24" x 36.STREET NAMES & HOUSE NUMBERS: Submit requests for new unit numbers from the Building Division prior to the building permit application process. 11. TITLE 24 ENERGY COMPLIANCE: California Title 24 Energy Compliance forms CF-1R and MF-1R must be blue-lined on the plans. 12. SPECIAL INSPECTIONS: When a special inspection is required by UBC Section 1701, the architect or engineer of record shall prepare an inspection program that shall be submitted to the Building Official for approval prior to issuance of the building permit. The Town Special Inspection form must be completely filled-out, signed by all requested parties and be blue- lined on the construction plans. Special Inspection forms are available from the Building Division Service Counter or online at www.losgatosca.gov, 13. NONPOINT SOURCE POLLUTION STANDARDS: The Town standard Santa Clara Valley Nonpoint Source Pollution Control Program shall be part of the plan submittal as the second page. The specification sheet is available at the Building Division Service Counter for a fee of $2 or at San Jose Blue Print. 14. PLANS. The construction plans shall be prepared under the direct supervision of a licensed architect or engineer. (Business and Professionals Code Section 5538) 15. APPROVALS REQUIRED: The project requires the following agencies approval before issuing a building permit: a. Community Development: Joel Paulson at 354-6879 b. Engineering Department: Fletcher Parsons at 395-3460 c. Santa Clara County Fire Department: (408) 378-4010 d. West Valley Sanitation District: (408) 378-2407 e. Local School District: (Contact the Town Building Service Counter for the appropriate school district and to obtain the school form.) TO THE SATISFAC'T'ION OF THE DIRECTOR OF PARKS AND PUBLIC WORKS: Engineering Division Page 4 of 7 16. FINAL MAP: A final map shall be recorded. Two copies of the final map shall be submitted to the Engineering Division of the Parks & Public Works Department for review and approval, Submittal shall include closure calculations, title reports and appropriate fee. The map shall be recorded before any permits are issued. 17. DEVELOPMENT AGREEMENT: The Applicant shall enter an agreement to construct public improvements in accordance with Town Code §24.40.020. 18. UTILITY COMPANY REVIEW: Letters from the electric, telephone, cable, and trash companies indicating that the proposed improvements and easements are acceptable shall be provided prior to recordation of the final map. 19. PUBLIC IMPROVEMENTS: The following improvements shall be installed by the developer. Plans for those improvements shall be prepared by a California registered civil engineer, reviewed and approved by the Town, and guaranteed by contract, Faithful Performance Security and Labor & Materials Security before the issuance of a building permit or the recordation of a map. The improvements must be completed and accepted by the Town before a Certificate of Occupancy for any new building can be issued. a. Massol Ave - Curb, gutter, sidewalk, street lights, tie-in paving, signing, striping, storm drainage and sanitary sewers, as required, 20. GENERAL: All public improvements shall be made according to the latest adopted Town Standard Drawings and the Town Standard Specifications. All work shall conform to the applicable Town ordinances, The adjacent public right-of-way shall be kept clear of all job related dirt and debris at the end of the day. Dirt and debris shall not be washed into storm drainage facilities. The storing of goods and materials on the sidewalk and/or the street will not be allowed unless a special permit is issued. The developer's representative in charge shall be at the job site during all working hours. Failure to maintain the public right-of-way according to this condition may result in the Town performing the required maintenance at the developer's expense. 21. ENCROACHMENT PERMIT: All work in the public right-of-way will require a Construction Encroachment Permit: All work over $5,000 will require construction security. 22. PUBLIC WORKS INSPECTIONS: The developer or his representative shall notify the Page 5 of 7 Engineering Inspector at least twenty-four (24) hours before starting any work pertaining to on- site drainage facilities, grading or paving, and all work in the Town's right-of-way. Failure to do so will result in rejection of work that went on without inspection. 23. RESTORATION OF PUBLIC IMPROVEMENTS: The developer shall repair or replace all existing improvements not designated for removal that are damaged or removed because of developer's operations. Improvements such as, but not limited to: curbs, gutters, sidewalks, driveways, signs, pavements, raised pavement markers, thermoplastic pavement markings, etc, shall be repaired and replaced to a condition equal to or better than the original condition. Existing improvement to be repaired or replaced shall be at the direction of the Engineering Construction Inspector, and shall comply with all Title 24 Disabled Access provisions. Developer shall request a walk-through with the Engineering Construction Inspector before the start of construction to verify existing conditions. 24. CC&R'S: A copy of the CC&R's shall be submitted for review and approval by the Town Attorney and Planning Division prior to map recordation. Page 6 of 7 SECTION VI This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on June 16, 2008, and adopted by the following vote as an ordinance of the Town of Los Gatos at a meeting of the Town Council of the Town of Los Gatos on , 2008 and becomes effective 30 days after it is adopted. COUNCIL MEMBERS; AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST; CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N[WW0RDW47MA8S0L,DW Page 7of7 VO~ 34TMassol Avenue TOWN OF LOS GATOS " Application No. PD-07-02 A.P.N. #510-14-004 Change of zoning map amending the Town Zoning Ordinance. ® Zone Change From: RM:5-12 To. RM:12-20:PD ❑ Prezonin Forwarded by Planning Commission Approved by Town Council Date: Clerk Administrator Mayor Date: April 23, 2008 Ord: EXHTBTT A EXHIBIT B MAPS AVAILABLE FOR VIEWING IN THE CLERK DEPARTMENT To From Subject: Los Gatos Town Council Tenants of 347 Massol Av. (Bay Tree Apts.) Petition against Lyon's condo conversion proposal Dear Los Gatos Town Council, The tenants that.have signed this petition are opposing the conversion of the Bay Tree apartments to condominiums as proposed by Lyon Management. We believe the intended conversion is not in line with the Town Code and that consequently the Town Council should not approve the proposal. Thanks for your consideration. With kind regards, Name © -rSO"1. 0 Apt.# 7617 Date +ty 2"& 2Name KkiU !4f D&NzP L.F Apt.#-4_0(o Date Ksm% M 0% blot ame tiC2er~GCtC•1`~=~A+ff~,~Ant.#.. ~O C2 50 Date M*%-f LFr - ),0 p'~F' S ATTACHMENT 6 & iCoDR,a~~Z Ant.# S v Date t)j 0, q Z~. Ldo~ 0 `f D Name C tZ.A ~4 Agt.# 'A0A s Date _oz I zap (~,6~, ~ d I5i,Apt.# 7 Z,ezl nntc (~71 t l 6 s Name Apt.# Date Name Apt.# Date Name Apt.# Date To: Los Gatos Town Council From: Natalie Ladd Subject: Objection to Bay Tree Apartments Condo Conversion Date: May 28, 2008 Dear Los Gatos Town Council, I'm writing this letter to express our concerns regarding the intention of Lyon to convert the Bay Tree Apartments into condominiums. I have been living here with my 3 kids for the 8 years at this location and no plans to move any time soon. As a single mom, I want to provided my children with the best schools and Los Gatos /Saratoga High School District is #2 in CA academically which is the reason why I moved here 10 years ago. This is a great family community and we enjoy the historic and authentic town every day. Although about 35% of the homes in Los Gatos are rental properties, there are very few locations, which are in walking distance from the town center. As Lyon brought up during the planning commission hearing on April 23rd, one of their objectives is to provide the town with lower priced housing, an `opportunity for first time buyers' as Ron Cole stated. Considering that Lyon is expecting an average selling price of $700,000 and taking into account that on top of a mortgage, there will be a Home Owners condo fee of at least $400 (some condo's in Los Gatos have Home Owners Fees of $700+ per month). The cost of ownership easily surpasses $4,000 per month. This amount is about $2,000 more than what I pay for rent and in my opinion the resulting condos are hardly an `opportunity for first time buyers', especially not in the current economic situation. Moreover, I believe there will be a significant risk that condos will be bought by investors and consequently rented out, thereby reducing the incentive for the town to provide affordable housing. Another concern is the current state of the building, which I don't think is fit for sale, even after the intended `upgrade'. Having lived here for over 8 years at this location, it appears to me that Lyon mainly practices cosmetic `maintenance'. Electricity, plumbing and various constructions are most probably as old as the building itself (50+ years) and as a result there have been considerable interruptions in service. Also, in the last 6 years, I have had 17 incidents of bats flying into my unit and having to have animal control come out to catch it and test it for rabies. Animal Control has attempted to take my cats for 10 days until they get the rabies results. This has been a great threat to my children, my cats and to myself. Last week, after 6 years, we finally found out that the bats have been living in the attic and the bats were getting in through the holes in the wall which the cable wires were coming into my unit. There has been incidents when someone has gotten hurt because of work being done incorrectly because Lyon's maintenance practice of using cheap material and cheap labor (in some instances the workers appeared to be not licensed to do construction work). Last year there was a hold put on ALL construction here because Lyons Management did NOT have the proper permits to do the "upgrades" they were doing. In order to approve the condo conversion, a number of provisions in the Town Code need to be `lifted' as Lyon most likely cannot deliver on some requirements (BMP, 360 degrees architecture, parking spaces etc.). I strongly believe that the Town Council should not make exceptions just to allow a company to make a quick profit, which to me is clearly the main objective of Lyon Management. Making exceptions on this matter is not only unfair, it also sets a precedence that erodes the original intention `of the Town Code. Moreover, it may result in an influx of similar requests. Thanks for your consideration and for taking the time to review our letter. Sincerely, atalie Ladd 347 Massol Ave Apt 705 Los Gatos, CA 95030 To: Los Gatos Town Council From: Sebastian Bohm & Carla de Mos Subject: Objection to Bay Tree Apartments Condo Conversion May 28, 2008 Dear Los Gatos Town Council, We are writing this letter to express our concerns regarding the intention of Lyon to convert the Bay Tree Apartments into condominiums. We have been living at this location for over three years and for the time being have no plans to move. Having transferred from Europe due to my work as a scientist for Johnson & Johnson, we chose to live in Los Gatos partly because of it's beauty but most of all, because everything we need is within walking distance. Although about 35% of the homes in Los Gatos are rental properties, there are very few locations which are in walking distance from the town center. As Lyon brought up during the planning commission hearing on April 23rd, one of their objectives is to provide the town with lower priced housing, an `opportunity for first time buyers' as Ron Cole stated. Considering that Lyon is expecting an average selling price of 700 k$ and taking into account that on top of a mortgage, there will be a condo fee (-$400) and various expenses like insurance etc., the cost of ownership easily surpasses $3500 per month. This amount is about $1800 more than what we currently pay for rent and in our opinion the resulting condos are hardly an `opportunity for first time buyers', especially not in the current economic situation. Moreover, we believe there will be a significant risk that condos will be bought by investors and consequently rented out, thereby reducing the incentive for the town to provide affordable housing. Another concern is the current state of the building, which I don't think is fit for sale, even after the intended `upgrade'. Having lived for over three years at this location, it appears to me that Lyon mainly practices cosmetic `maintenance'. Electricity, plumbing and various constructions are most probably as old as the building itself (-40 years) and as a result there have been considerable interruptions in service. Also, in January this year, our carport roof collapsed resulting in a damage to our car well over $8500. This matter has been resolved via Lyon, but thankfully nobody was in the carport at the time of collapse. In my opinion, this incident is a direct result of Lyon's minimalistic maintenance practice of using cheap material and cheap labor (in some instances the workers appeared to be not licensed to do construction work), In order to approve the condo conversion, a number of provisions in the Town Code need to be `lifted' as Lyon most likely can not deliver on some requirements (BMP, 360 degrees architecture, parking spaces etc.). I strongly believe that the Town Council should not make exceptions just to allow a company to make a quick profit, which to me is clearly the main objective of Lyon. Making exceptions on this matter is not only unfair, it also sets a precedence that erodes the original intention of the Town Code. Moreover, it may result in a flood of similar requests from other apartment complexes, Thanks for your consideration and for taking the time to review our letter. SebA an Bbifm Carla de Mos 347'Massol Av. Apt. 207 Los Gatos (408) 3952506 Martha Me Graw 347 Massol Avenue, Apt. 205 Los Gatos To: Los Gatos Town Council Date: June 2, 2008 I am extremely concerned about the intention to convert the Bay Tree apartments into condominiums. have lived at the Bay Tree apartments for four years. I moved from New Jersey to be closer to my daughter. I am a senior citizen living on a fixed income and have no plans to purchase a condo. I enjoy living here especially because it is so close to all amenities so I can walk everywhere. There are no comparable apartments available in this area within a reasonable price range. I would like to stay in Los Gatos, preferably in my current apartment for many years to come because this is now my home. The thought of moving is a disturbing prospect at this point of my life. Thank you for taking time to read my thoughts on this matter, Sincerely, Martha Me Graw Tom Tsongas 347 Massol Avenue Los Gatos, CA 95030 May 24, 2008 Los Gatos Town Council An Open Letter Voicing My Concern Regarding the Proposed Condo Conversion of Bay Tree Apartments Dear Los Gatos Town Council and Community Representatives: I am writing on behalf of myself to voice my concern and opposition to the planned Bay Tree condo conversion being proposed to your council. As a resident of Bay Tree for over three years, I am deeply troubled by the current proposal being set forth by Lyon Management to pursue a condo conversion of this residence, thereby eliminating it as a viable rental for this area. Beyond simply being a decision that will displace many hard working families and professionals from their current homes, I would also like to demonstrate why I believe this decision will also be one that is damaging fiscally to potential buyers of the units in question. Along with creating a potential scenario whereby the Bay Tree will transform from a pleasant, well maintained structure to a dilapidated building with substantial vacancy. In its current state, the Bay Tree provides respectable and marginally affordable housing to the residents of Los Gatos. While the rents are higher in general than other rentals in the vicinity, the associated costs of renting at Bay Tree are only a fraction of what they would be in a condo format. To demonstrate this disparity, I would like to provide the following calculations; The average rent -for a standard two bedroom unit with updated and modernized internals at the complex currently rents for approximately $2,600 per month at the high end. I will use this value as a baseline for my subsequent calculations. Based on information provided by Lyon at the Los Gatos Planning Committee meeting, the proposed list prices of condos for purchase was ranged at between $640,000 to a high of $800,000 depending on unit size and location. For the purposes of these calculations, I will assume a list price of $700,000. With that value in mind, the associated cost of owning is as follows: Assuming a down payment of 20%, or roughly $140,000 dollars (which most first time buyers would not have available), this would leave a loan amount of $560,000. At current market rates of 7%, the monthly cost of ownership would come in at $3,725. To ensure as much accuracy as possible, I will take into account a tax mortgage deduction on that amount which would bring the monthly cost of ownership down to roughly $2,850. However, we now have to take into account property taxes. For a property which retails at $700,000, this would yield a property tax rate of $583 per month. Now property taxes are not always tax deductible depending on income but for the purposes of these calculations, I will assume a 2:5% return on property taxes thereby reducing the monthly property tax rate to $438 per month. This brings the `current' monthly total of home ownership to $3,288. However, there are additional costs that have to be taken into account to finalize the ultimate cost of home ownership; those being increased insurance costs and condo association fees. I have itemized those amounts as follows: Since insurance of an owned property is more than just general rental insurance (which only requires insuring the contents of a unit and not the unit itself), I will assume that the monthly cost of unit insurance will be roughly $504100 more per month, over and above rental insurance costs. I will split the difference and guesstimate approximately $75 dollars more per month in insurance costs. Finally, with the conversion of Bay Tree, unit residents are responsible for the maintenance and general upkeep of the complex, which is accomplished via condo fees. For the purposes of this cost-benefit analysis, I Will assume a condo association fee amount of $400 per month. (This is the amount I had heard ivas quoted by Lyon to residents inquiring about the condo conversion) A final tally of the costs, including condo fees and insurance, brings the grand total of home ownership of a unit to $3,763 per month. That is a full $1,163 per month h16re than renting the equivalent unit. With mycalculations in mind, I do not think one has to be overly prescient to ascertain that this broposal is little more than a ploy by Lyon to recoup the losses it incurred for its acquisition of the Bay Tree at the height of the now obvious housing bubble. Co6sidering the state of the economy and the daily statements pertaining to the housing issues plaguing California, I do not think I need to go into great detail as to what the ramifications of this condo conversion might do to the state of the Bay Tree and the surrounding neighbothood. We are all witness to the media reports of foreclosures rocking this state and individuals who are over their heads financially after being either misled or completely ignorant of their own financial capabilities. Despite Los Gatos' more upscale nature, it is not immune to the effects of a downturn in both the housing market and the broader economy. With that in mind, one must ask the question: should the town risk entering uncharted waters with this condo conversion and take the chance of creating a scenario whereby the Bay Tree transforms from a stable rental structure to an abandoned building filled with foreclosed properties? In closing, I want the council to be mindful of the nature of the residents at this complex and the benefit they provide to the city. We are not squatters or low income, uneducated individuals creating problems or issues for our neighbors. We are hard working, professional, well educated and fiscally responsible people who choose to rent for many reasons, not the least of which is demonstrated from my calculations above. So rather than displacing many of us and removing a pool of individuals who contribute to the many of the businesses and retailers in the area, I think it would be far more discerning and wise of the town council to leave the Bay Tree in its current state as a rental complex. Thank you in advance for your consideration and for taking the time to review my stance on this issue. Sincerely, Tom Tsongas Resident; Bay Tree Apartments May 27, 2008 To: City of Los Gatos, Planning Commission FR: Tim Hogan Bay Tree Apartments 347 Massol Ave, #304 Los Gatos, 95030 RE: Bav Tree Apartments Condo-Conversion Our family of three has lived at the Bay Tree Apartments for more than five years. As a Resource Specialist teacher with Moreland School District, working with elementary school children with learning disabilities, our apartment works well for our current situation: reasonable rent (approx. $2,000), nice neighborhood and nearby town-center location. I doubt there are similar rental properties in Los Gatos with such a profile. For the above reasons, we do not support Lyon group's request to convert apartments to condos. And while these reasons certainly are personal, they also seem suitable for consideration by the town planning representatives - a sure way to help maintain the integrity of current neighborhood and help to keep some semblance of diversity within Los Gatos. In the five years we have lived at the Bay Tree, there have been three owners. When the Lyon group tools over, it was clear, there was a new agenda: Get top-dollar rents and trim property- related expenses. Tenants realized the following; - units were renovated when vacant, then rented at considerable increase (usually for corporate housing or locals while their house was remodeled) - bathrooms were plumbed for washer/dryer hook-ups even for those units that have not been renovated. So, while we don't want a built-in washer/dryer, we endured a week's construction. - all public area water faucets were capped and locked. On request one was reopened so tenants can wash their cars. for vacated units, water utility bills were made part of tenant's responsibility all but two laundry rooms have been closed; rooms were made part of an adjacent unit basic cable service was transferred from property to tenant contract. In April, I received a voice mail from a Lyon group representative who pitched benefits of a conversion plan. He mentioned, since we were long-term tenants, we could receive favorable consideration if interested in buying a unit. Well, we are not interested; it's not part of our long term plan to remain in Los Gatos. However, a Bay Tree condominium at most any price does not interest us. Like many residents, we consider Lyon group's efforts to prepare the building for sale as cosmetic like lipstick on a. pig. Consider this: FLOORS Our's is a downstairs unit with carpeted floors. Yet, the floor squeaks as you walk from room to room. Upstairs is a renovated unit with new wooden floors, Even so, we can hear their footsteps - and the floors still squeak, too. PLUMBING Plumbing seems to be strained. Recently, our unit and several others have had plugged and backed up drains. And, when running the shower, the pipes sing. FENCES A walk through the property also will show individual yard fencing and building-siding have spot termite and dry-rot damage. On more than one occasion, I reported termite droppings in our unit - inside and outside. One time; a termite inspection service came, and based on what the service rep saw in and around our unit, he advised tenting the building. Evidently, that was the end of that discussion. 5o, yes, we would like to continue to rent our old apartment with termites and singing pipes, If things ever get extreme, we will call in maintenance. However, in the event the committee decides to green light the conversion, I would expect the approval process to include a series of structural inspections. Left unchecked would pass on costly repairs to the condo home-owners' association. I hope my comments are useful for your discussions. If you would like to discuss any aspect of this letter, I can be reached at (408) 399-5398. RECEIVED To: Los Gatos Town Council From: Sebastian Bohm Subject: Objection to Bay Tree Apartments Condo Conversion June 2nd, 2008 Dear Los Gatos Town Council, IJUN 0 2 2000 MAYOR &TOWN COUNCIL Please find the enclosed written statements and signed petition opposing the conversion of the Bay Tree Apartments on 347 Massol Av. Hopefully these will help the Council in making their decision to reject Lyon's proposal. Thanks for your consideration, Seb stian Bohm 347 Massol Av. Apt. 207 Los Gatos (408) 395-2506 E C , 1 rf1 E Dear Los Gatos City Council, Sunday, June 0p`; 08 JUN n 3 2008 ~ - a>~t.~-~D TOWN OF ut.OS GATOS This letter is concerning the requested condo conversion by Lion M na n4E(cPARTMENT Bay Tree Apartments in which I reside. I would like to express my concerns rega the approval of this conversion based on the following points. 1) Parking: Currently I rent a two bedroom unit however am only afforded a single parking spot leaving my roommate to park on the street in front of the complex. There have been concerns brought up by the neighboring home owners about the congested street parking issues. We were informed from Lion Management that two bedroom units are offered only one parking space but could purchase an additional spot for $50 per month! If these units were to "go condo" the City Traffic study stated that parking and traffic congestion would increase and become more of an issue than it already is. 2) Below Market Price: Lion is requesting a lower percentage of 'below market' units from what the city normally requires, and I believe this would be a detriment to those individuals making below $75,000 a year with hopes of home ownership in Los Gatos. 3) Maintenance: My patio maintenance issue remains unsolved from my date of move in (3 years ago) as the paint is peeling off from the concrete and is impossible to keep clean. Also, the weekly leaf blowing at peak season forces all yard trimmings into my patio (I have a ground level unit) and forces me to clean up after them. 4) Forced move out: If the City Council were to allow Lion's conversion and the current tenants (myself included) could not afford the asking price perhaps due to divorce or raising children, I would be forced to leave Los Gatos all together. As you know Los Gatos has rent control and a move would force me into a higher "at market" rental price elsewhere. Also what's to stop an investor from buying a bunch of units and simply re- renting them? And, if that were to happen why not just leave them as rentals in the first place instead of displacing all of the current tenants? 5) Current mortgage crisis: In my opinion rentals are a necessity as the current foreclosure rate is at an all time high because of the subprime loans, which were necessary to be able to even afford homes here in California. I sincerely appreciate your time and consideration of my concerns. Above all, I love living in Los Gatos and hope that with your help I may continue to do so. Please feel free to contact me should you have any questions. Raul M. Rodriguez 347 Massol Ave. Unit #601 Los Gatos, CA 95030 408.596.0933 J F C f v r e, s x V la1 EEI JINN 1 12008 JUNE 10, 2008 TOWN OF LOS GATOS PLANNING DIVISION TO: TOWN COUNCIL, TOWN OF LOS GATOS SUBJECT: PROPOSED CONDO CONVERSION, 347 MASSOL AVE. (BAY TREE) Attached as Exhibit 1 is a copy of the Letter to the Editor published in the Los Gatos Weekly Times on May 20, 2008. The letter suggests that the best way to handle the Lyon proposal in the above-referenced matter is to deny it in its entirety without prejudice to refiling while The Planning Department, the Planning Commission and ultimately the Town Council develop and approve a specific ordinance that governs condominium conversions. Such denial is without legal risk to the town because the Lyon proposal is deficient in many ways including, but not limited to, BMP, parking, and 360-degree architecture. A future ordinance would set a roadmap or "rules to fairness" that would address many requirements now present in other ordinances up and down Silicon Valley and across the U.S. Rules are used to define the path to fairness and should largely eliminate the need for exceptions. Without rules, all interested constituencies would view what will likely be a patchwork quilt of results and leave many with the feeling that the approval process is largely the result of which constituencies lobby most effectively. Parenthetically, the Planning Commission approved at its April 23`d meeting Single Family and Two Family Residential Guidelines. They were developed over some period of tinge and either have or shortly will be submitted to the Town Council for approval. These are the rules to fairness administered by the Planning Department and are available to all constituencies when they enter into development in these sectors of housing within the town. Analogous rules can be developed for condominium conversion and would once again put the Planning Department back into the process with a roadmap that would only require exceptions to reach The Planning Commission and/or The Town Council. THE LYON PROPOSALS Lyon has not changed its position on BMP, parking and 360-degree architecture since its original letter of September 28, 2006, and the Bay Tree Proposal Summary submitted to The Planning Commission on April 23, 2008. Below is its history: LYON LETTER OF SEPTEMBER 28, 2006 Affordable Housing/BMP The letter uses the term "Practical Affordable" and states that it will work with the Housing Department to provide a mutually beneficial solution. There is no mention of BMP. Parking "The current condominium ordinance requires that parking be increased to 168 spaces or three per unit. This is infeasible considering the size and density of the property." k., ATTACIWNT 7 Neighborhood Compatibility/360-degree Architecture "The members of the CDAC, in varying degrees, discussed the need for `360-degree' improvements to the property. It will be financially impossible for the developer to redesign the entire property and maintain the projected price of the condominium units as `Practically Affordable."' BAY TREE PROPOSAL SUMMARY OF APRIL 23, 2008 Affordable Housing/BMP "To comply completely with the current code would cost the applicant $3.2M and render the condominium conversion financially infeasible." Parking "While it is infeasible to meet the current code ...etc." Neighborhood Compatibility/360-degree Architecture Statements indicate the changed facade and landscaping will be commensurate with the historic context of the surrounding neighborhood. "The current use as a rental project is not consistent with the surrounding area." There is no mention of 360-degree architecture, and no intent to comply with that requirement. DISCUSSION Lyon is a large company with presumed expertise to analyze and snake decisions regarding what properties it will buy and develop. It is not a stretch to conclude that all of the items they now balk at were known when the decision was made to purchase Bay Tree as a possible condominium conversion. This is not a party that can claim surprise. On the contrary, the maxim CAVEAT EMPTOR should apply. In each instance in which they use the words "impossible" or "infeasible", it means is that the item will cost more and impact its profitability. My recollection is not entirely clear as to whether a question posed by a Planning Commission member applied only to BMP or also to parking, but there was an exchange like this: Member: What will happen if you do not get the exceptions)? Lyon Representative: We will not do the deal. At another time, either a Planning Commission member or the Lyon representative said: "They/we want to bargain with the Town Council." There has been no change in pricing: rather than address the specific requirements of BMP, Lyon would have the Town Council adopt a broader term called "Practical Affordable." This latter term is general: BMP is specific and should control. Lyon stands on its offer of 92 parking spaces, less than two spaces per household when a new condominium would be required to provide three spaces per household or in this case 168 spaces. There is no mention of guest parking and recreational vehicles. Presumably, the entire overflow would simply go on the streets... hardly an acceptable solution to the neighbors and also probably not acceptable to the Town, given the proximity of a notoriously troublesome intersection. And finally, the update of only the front side of the building at a cost of $3.3 million: This is truly a failure of imagination and a design for "show" only. Lyon's assertion that even the one side would be commensurate with the "historic context of the surrounding neighborhood" is complete nonsense. Bay Tree blends in now and doesn't need a one-sided, stone-trimmed-front with the ever-included, albeit small, tower. PALO ALTO ORDINANCE Attached as Exhibit 2 is a copy of Chapter 21.40, the Palo Alto condominium conversion ordinance, its path to fairness. In 21.40.010, Purposes, it states in (a): (3) To protect the supply of rental housing for low and moderate income persons and families; (4) To reduce and avoid displacement of tenants, particularly senior citizens and families with school-age children, who may be required to move from the community due to a shortage of replacement rental housing; It then goes on to define "vacancy rates: which are used to determine whether or not any condominium conversions can be filed. Attached as Exhibit 3 is the Dec. 10, 2007, Residential Vacancy Rate Determination. The Town of Los Gatos does not have a similar measure so one has no idea as to whether there is any place for the Bay Tree tenants to go. And there are many other requirements in the Palo Alto ordinance. As its Attachment D, of its April 23 submission to the Planning Commission, Proposed Relocation Program, Lyon appoints its own Relocation Coordinator, offers no exceptions for anyone; and offers the paltry sum of $500 for moving with very limited additions for extreme hardship. It does not contain fair rules. CONCLUSION The Lyon proposals are lacking in good faith attempts to accommodate the Town Plan and supporting regulations. If the Town had condominium conversion ordinance, Lyon would know explicitly what would be required. It is not the Town Council's charter to give these extraordinary exceptions simply to make it work for a developer that either knew or should have known the Town's requirements, as piece-meal as they are currently. There is no compelling need to convert Bay Tree to condominiums at this time. Other landlords, neighbors, and renters can wait a year for an ordinance specifying "rules to fairness." If the development of an ordinance is not acceptable to the Town Council, the Lyon proposal should be rejected outright. bm" ed, hub R*asAve. 3Los Gatos, CA 95030 ~)l(4 ~ ~ J- cPe A Creuru News 00 Mercurftws.com LETTERS: Making residents aware of condo conversions From the readers of the Los Gatos Weekly-Times Article Launched: 05120/2006 04:25:14 PM PDT NOTE: The following letters are unedited and reflect only the views of the author. The purpose of this letter is to make all Los Gatos residents - tenants, neighbors and landlords - aware of an important issue that is facing the town of Los Gatos: apartment conversions to condominiums. It is my hope that residents will become interested enough to show up at the town council meeting on June 16. There are currently about 13,000 dwellings in Los Gatos, about 4,600 (35 percent) of which are rental units. On April 23 the planning commission heard for the first time the proposal of Lyon Realty Advisors Inc. of Newport Beach to convert Lyon Bay Tree Apartments at 347 Massol Ave. into condominiums. The planning commission staff report, also dated April 23, concluded: "The commission must recommend denial of the proposed general amendment and zone change because the project does not meet the BMP (below market pricing) requirement." The entire matter was bumped up to the town council, scheduled to meet Juno 16 to discuss the Lyon condo conversion proposal, I The planning commission also heard other issues I surrounding the Lyon proposal, and it was also found deficient in required parking, 360-degree architecture and open space requirements, all of which may come up for discussion June 16. Advertisement http://www.inercuiynews.com/tdop'!12132U438S 0 8 This is the first proposed condo conversion to reach the town council in recent times and is important to tenants and neighbors throughout Los Gatos. The planning departmentstaff report stated: "Staff has had conversations with other apartment complex owners in town who are awaiting the outcome of this (Lyon) proposal. If this application is ultimately approved by the town council, (planning) staff expects additional condominium applications will be filed." Many towns and cities in Silicon Valley have condominium conversion ordinances including Saratoga, Palo Alto and Cupertino. These ordinances address "vacancy surplus rates," "defined housing market," "tenants consent," BMP and many procedural/zoning/building requirements. Los Gatos has no ordinance for condo conversions. What this means is that the various constituencies neighbors, tenants, landlords, etc. - have no predictability in any part of the process and no requirements specified at any stages of these important changes. In order to approve the Lyon proposal, the town council would have to look to other provisions of the building and zoning regulations and select which ones will govern. This pick-and-choose procedure is hardly fair to any affected persons. Residents and neighbors should know how these matters will be handled and be able to have voice in the conversion process. My wife and I live directly across the street from the Lyon property. While we are primarily concerned with parking issues and architectural compatibility within our historic neighborhood, we believe BMP has served Los Gatos well, and Lyon should not be given a free pass on either BMP, parking or any of the other issues that it wants exceptions for. A~ hy.ro. G~ pr cro-C s~ wwwxities byfoot.com Print Powered Byf3ntrti' I of? 6/11/2008 10:13 AM http://www.mei-curynews.coin/fdcp?1213204385088 z4cAeratr~ ews N ivlercuryNews.com Lyon is a new landlord that bought to convert. Some of the supporting documents date back to 2005. Concerns about BMP, parking and architectural requirements have not been adequately addressed since then, except by Lyon indicating that it needs exceptions to make the conversion profitable. It has not made serious, good-faith attempts to satisfy any of the significant items highlighted by planning. Approval would leave a mess for town council as the newly filed condo conversions would increasingly occupy its agenda and leave the planning department and planning commission without power to guide conversions through the approval process. A guiding ordinance would allow the system to work the way it's supposed to with the town council handling exceptional situations not first-line approvals. And it's fine if this one doesn't go through now. Saratoga, Palo Alto and Cupertino have had long periods of time when none are permitted because their "trip-wires" - usually rental occupancy rates - are not satisfied, To be heard, all constituencies need to take an interest and attend the town council meeting currently scheduled for June 16. All residents are entitled to planning department documents before that meeting. William J. Kaschub Los Gatos aqa by,,, .f O rocs, www.citiesbyfoot.com Print Powered By E rratrii' 2 of 2 6/11/2008 10:13 AM Advertisement Document 21 Page 1 of 9 Title 21 SUBDIVISIONS AND OTHER DIVISIONS OF LAND* Chapter 21.40 CONVERSIONS OF RENTAL HOUSING TO CONDOMINIUMS AND OTHER COMMUNITY HOUSNM Chapter 21.40 CONVERSIONS OF RENTAL HOUSING TO CONDOMINIUMS AND OTHER COMMUNITY HOUSING PROJECTS Sections: 21.40.010 21.40.020 21.40.030 21.40.040 21.40,050 21.40.060 21.40.070 21.40.080 21.40.090 21.40.010 Pu Purposes. Definitions. Scope. Determination of vacancy rate and surplus, When an application for conversion may be filed. Approval of a map for conversion. Contents of an application, Time limits. Severability. rposes. (a) The purposes of this chapter are: (1) To seek a reasonable balance of rental and ownership housing in the city in a variety of individual choices of tenure, type, price, and location of housing; (2) To protect the supply of multi-family rental housing; (3) To protect the supply of rental housing for low and moderate income persons and families; (4) To reduce and avoid displacement of tenants, particularly senior citizens and families with school- age children, who may be required to move from the community due to a shortage of replacement rental housing; (5) In the event of a conversion, to assure that purchasers have adequate information on the physical conditions of the structure and that the structure meets adequate health and safety standards; (6) In the event of a conversion, to give priority for purchase of units to existing tenants; (7) To meet'the goals of the comprehensive plan, including the below-market-rate programs. (Ord. 3295 § 1 (part), 1981: Ord. 3157 § 1 (part), 1979) 21.40.020 Definitions. (a) For the purposes of this chapter, the following definitions are adopted: (1) "Community housing" and "community housing project" mean and include the following: (A) "Community apartment," which means a.project in which an undivided interest in the land is coupled with the right of exclusive occupancy of any apartment thereon; (B) "Condominium," which means an estate in real property consisting of an undivided interest in common in a portion of a parcel of real property together with a separate interest in space in a residential building on such.real property; (C) "Planned development," which means a real estate development having either or both of the following features: (i) . Any contiguous or noncontiguous lots, parcels or areas owned in common by the owners of the separately owned lots, parcels or areas consisting of areas or facilities the beneficial use and enjoyment of which is reserved to some or all of the owners of separately owned lots, parcels or areas. (ii) Any power exists to enforce any obligation in connection with membership in the owners association, or any obligation pertaining to the beneficial use and enjoyment of any portion of, or any interest in, either the separately or commonly owned lots, parcels or areas by means of a levy or assessment which may become a lien upon the separately owned lots, parcels or areas of defaulting owners or members, which said lien may be foreclosed in any manner provided by law for the foreclosure of mortgages or deeds of trust, with or http://nt2.scbbs. cornlcgi-binlom_isapi,dll?clientID=2676 55206&hitsperheading=on&infobasc=pro... 4/30/2008 Document . Page 2 of 9 without a power of sale; (D) "Stock cooperative," which means a corporation which is formed or availed of primarily for the purpose of holding title, either in fee simple or for a term of years, to improved real property, if all or substantially all of the shareholders of such corporation receive a right of exclusive occupancy in a portion of the real property, title to which is held by the corporation, which right of occupancy is transferable only concurrently with the transfer of the share or shares of stock or membership certificate in the corporation held by the person having such right of occupancy. The term "stock cooperative" does not include a limited-equity housing cooperative as defined in California Business and Professions Code Section 11003.4; (E) Such oilier forms of 0,411crs1lip in A hich a parcel or parcel; of real proper[} , includiira ail ~AfuctuJcZ~ thereon, are wholly or partially rented or leased for residential purposes and are proposed to be divided, as land or air space, into three or more parcels, units or rights of exclusive occupancy. (2) "Conversion" means a change, including a proposed change, in the type of ownership of a parcel or parcels of land, together with the existing structures, from a rental housing complex to a community housing project, regardless of whether substantial improvements have been made to such structures. (3) "DRE report" means the final subdivision public report issued by the California Department of Real Estate pursuant to Section 11018.2 of the California Business and Professions Code. (4) "Rental housing complex" means a structure or structures containing at least three rental units on the same parcel or adjoining parcels of property. (5) "Rental unit" means an element of a rental housing complex designed to be rented to one family independently. (6) "Tenant" means a person who enters into a written or oral lease or rental agreement with the owner, or owner's agent, of a rental housing complex, "Tenant" does not include a subtenant or sublessee. (7) "Unit" means the element of a community housing project which is to be exclusively owned or occupied individually, and not in common with the owners of other elements of the project. (8) "Vacancy deficiency" means the number of vacant rental units needed to raise the vacancy rate to three percent. (9) "Vacancy rate" means the number of rental units being offered for rent or lease in the city of Palo Alto, shown as a percentage of the total number of rental units both being offered and actually under a rental or lease agreement (10) "Vacancy surplus" means the number of rental units being offered for rent or lease in excess of the three-percent vacancy rate. (Ord. 3295 § 1 (part), 1981: Ord. 3157 § 1 (part), 1979) 21.40.030 Scope. All conversions involving a change in the type of ownership of three or more rental units are subject to the provisions of this chapter. Nothing in this chapter shall be interpreted to exempt any conversion from the operation of any other chapter under this title or from the requirements of any other statute, ordinance, or regulation. (Ord. 3295 § I (part), 1981: Ord. 3157 § 1(part), 1979) 21.40.040 Determination of vacancy rate and surplus. In April and November of each year, the director of planning and community environment shall determine from the city utility meter records the vacancy rate and the vacancy surplus, if any, within the city limits. New market-priced rental units available to the general public, for which a certificate of use and occupancy has been issued since the last vacancy survey, shall be added on a unit-for-unit basis either to reduce the vacancy deficiency or to increase the vacancy surplus. {Ord. 3295 § 1 (part), 1981: Ord. 3157 § 1 (part), 1979) 21.40.050 When an application for conversion may be filed. (a) No application for consideration of a tentative or preliminary parcel map for a subdivision to be created from a conversion may be filed with the city unless there is a vacancy surplus as of the most recent determination pursuant to this chapter. (1) When there is a vacancy surplus as of the most recent determination pursuant to this chapter, an application for consideration of a tentative or preliminary parcel map for a subdivision to be created from a conversion may be filed with the director of planning and community environment if the number of lots, units http://nt2.scbbs.com/cgi-bin/om_isapi. dll?clientID=267655206&hitsperheading=on&infobase=pro... 4/30/2008 Document Page 3 of 9 or rights of exclusive occupancy in such proposed conversion does not exceed the vacancy surplus by more than forty percent. (b) An application for consideration of a tentative or preliminary parcel map for a conversion may be filed, regardless of whether a vacancy surplus exists, if both of the following conditions are met: (1) One below-market-rate rental unit must be provided for every two non-below-market-rate units to be converted. (A) The below-market-rate unit(s) must be of comparable size and condition (prior to any rehabilitation done for purposes of conversion) to the non-below-market-rate units to be converted; (9) For the purposes of this section, a below-market-rate rental unit is a unit provided within the city for permanent low and moderate income rental housing in accordance with either the city's below-market-rate program, the city's rental housing acquisition program, or such similar program expressly approved by the city council as being in accord with the city's comprehensive plan's goals and objectives for low and moderate rental income, and which the city, or its designee, is willing and able to accept. The provision of low and moderate income housing in accordance with this subsection shall satisfy the city's below-market-rate requirement for subdivisions set forth in Housing Program 17 of the comprehensive plan, and as thereafter may be amended. And: (2) The tenants of at least two-thirds of the rental units in the rental housing complex consent to convert the rental housing complex to a community housing project in accordance with the following provisions: (A) Each rental unit (including any units subject to the tentative or preliminary parcel map which are to be provided to the city as below-market-rate units pursuant to Section 21.40.050(b)(1) above) is entitled to one consent and such consent must be signed under penalty of perjury by all tenants of the rental unit; (13) The following units shall not be eligible to sign consent forms: (i) A rental unit in which the tenants do not all agree to consent to the conversion or do not all sign the consent form.; (ii) A rental unit in which one or more of the tenants has not resided in the rental housing complex for at least one year before signing the consent form; (iii) A rental unit occupied by a tenant employed by or related to the owner or manager of the rental housing complex or to the applicant for the conversion; (iv) A rental unit which is vacant on the date the consent forms are sent to tenants or which is vacated between that date and the last date for returning signed consent forms to the applicant for conversion. (C) The following consent form shall be used by the applicant for conversion in calculating the number of consenting units: CONSENT FORM FOR PROPOSED CONVERSION TO COMMUNITY HOUSING [Specify Type]: THIS CONSENT IS IRREVOCABLE ADDRESS: The units in the rental housing complex at the above address may be converted to [specify type of community housing] if the tenants of at least two-thirds of the units in the rental housing complex consent to the conversion. The applicant for conversion is [name] [address]. DECLARATIONS http://nt2. scbb s. comlegi-binlom_isapi . dll?clientID=2676 5 5 206 &hitsp e,rheading=on&infobase=pro 413 012 0 0 8 Document Page 4 of 9 I and each of the signatories below represent all of the tenants in possession of unit . I am not employed by or related to the owner or manager of the rental housing complex or to the applicant for conversion. I irrevocably consent to the conversion. I declare under penalty of perjury that the representations made herein are true and correct. (print name) signature length of continuous tenancy in rental housing complex date (print name) signature length of continuous tenancy in rental housing complex date (print name) signature length of continuous tenancy in rental housing complex date (D) The city must be notified on the date consent forms are first given to tenants, and the consent forms must be signed no later than ninety days from the date the consent forms are first given io the tenants; (E) Notice to Prospective Tenants. No rental unit in a rental housing complex shall be leased or rented to any person after the consent forms are first given to tenants unless said person has been notified of the proposed conversion immediately prior to the acceptance of any rent or deposit from the prospective tenant in the following written form: NOTICE TO PROSPECTIVE TENANT This rental housing complex is in the process of obtaining the consent of its tenants to convert the complex to a community housing project. If you become a tenant, if two-thirds of the rental units consent to conversion and if the conversion application is approved by the city council, the unit you are considering leasing or renting will be offered to you for purchase; if you do not desire to purchase the unit, you will be offered an extended lease. As a new tenant, you will be ineligible to sign a consent form. (Ord. 3295 § 1 (part), 1981: Ord. 3157 § 1 (part), 1979). http://nt2.sebbs.comlegi-binlom_isapi, dtl?clientID=267655206&liitsperheading~on&infobase=pro 4/30/2008 Document Page 5 of 9 21.40.060 Approval of a map for conversion. (a) A tentative map, preliminary parcel map, final map or parcel map for a subdivision to be created from a conversion shall not be approved or recommended for approval unless such map is consistent with the purposes and requirements of state law, the Palo Alto comprehensive plan, this title, this chapter, and unless all of the following conditions are or will be met: (1) Tenant Protections. (A) Application Timely. if the applicant for conversion procures tenant consents pursuant to Section 21.40.050(b)(2) above, the tentative or preliminary parcel map for conversion must be received by the city within sixty days of the last dale on which the signed consent folios may be returned w the applicant for conversion. (B) Notice to Tenants in Accordance with Government Code Sections 66452.9 and 66427.1. The applicant for conversion shall give notice in the following form to each tenant of the rental housing complex at least sixty days prior to the filing of the tentative or preliminary parcel map: To the occupants of [address] The owner(s) of this building, at plans to file an application with the City of Palo Alto to convert this building to a [specify community housing project]. You shall be given notice of each hearing for which notice is required pursuant to Sections 66451,3 and 66452.5 of the Government Code, and you have the right to appear and the right to be heard at any such hearing. (date) (signature of owner) Attached to this notice must be an explanation of all tenant protections required by this Section 21.40.060 (a)(1). (C) Right of First Refusal. Each of the tenants of the proposed community housing project has been or will be given notice of an exclusive right to contract for the purchase of their respective rental units upon the same teens and conditions that such units will be initially offered to the general public or terms more favorable to the tenant. Each of the tenants who was a tenant on the date of the completed conversion application shall be given such a right to purchase upon the terms and conditions, if any, quoted to the tenants and set forth in the subdivision application. Such rights to purchase shall run for a period of not less than ninety days from the date of issuance of the DRE report, unless the tenant gives prior written notice of his or her intention not to exercise the right. (D) Extension of Leases. Tenants in the proposed community housing project on the date of recordation of the final map for said project have been provided assurances that they will have the opportunity to remain in their respective rental units after conversion as tenants under extended leases. Such extended leases shall be subject to the following provisions: (i) Any tenant who has reached or will reach the age of sixty years at the end of the calendar year in which that tenant's unit is offered for sale shall be offered a lifetime lease to his or her rental unit. (ii) Any tenant who does not qualify for a lifetime lease pursuant to subsection (a)(1)(13)(i) above shall be offered a ten-year lease to his or her rental unit. (iii) Any lease(s) offered pursuant to subsections (a)(1)(D)(i) or (ii) above must: a. Be circulated to all tenants at least sixty days before the consent forms are required to be returned to http://nt2. scbb s. comlcgi-binlom_isapi. dll?clientlD=267655 206&hitsperheading=on&infobase=pro... 4/30/2008 Document Page 6 of 9 the applicant for conversion, if the applicant for conversion procures tenant consents pursuant to Section 21.40.050(b)(2) above; b. Restrict the rent on each unit to the monthly rent charged two years prior to the date the conversion application is received by the city, with increases in the monthly rent for each ensuing year after such date not to exceed seventy-five percent of the preceding years increase in the Consumer Price Index for the San Francisco Bay Area for All Urban Consumers (all items), as published by the Bureau of Labor Statistics, United States Department of Labor, or any other standard recognized cost-of-living index which is published by the United States Government in lieu of the index; C. Be subject to airy "just cause" c% fiction ordinance adopted by the city; d. Not be subordinated to the CC & R's adopted by the community housing project with regard to tenants' rights and tenants' financial obligations or other liabilities; e. Be recorded by the applicant for conversion in the Santa Clara County recorder's office. (iv) The applicant for conversion, upon the request of the tenants of at least one-third of all the rental units, must pay the standard hourly fees for an attorney selected by those tenants to represent them in negotiating the terms of the lease(s) offered pursuant to subsections (a)(1)(D)(i) and/or (ii) above, provided that such expenses may not exceed the fees for more than forty hours. (v) The city's rental housing mediation task force shall be available to mediate any disputes arising from any lease(s) offered pursuant to subsections (a)(1)(13)(i) or (ii) above. (vi) In the event that a tenant or tenants in a unit held by the city or its designee as below-market-rate rental housing pursuant to Section 21.40.050(b) is eligible to receive any available rental-housing assistance payments, such tenant or tenants may choose to enter into a lease providing for such rental-housing assistance payments in lieu of the extended lease required by this section. (E) Termination of Tenancy by Developer. Each of the tenants of the proposed community housing project who does not choose to purchase his or her respective rental unit or does not choose to enter into an extended lease pursuant to Section 21.40.060(a)(1)(D) above must have been given one hundred eighty days' written notice of intention to convert prior to termination of tenancy due to the conversion or proposed conversion. The provisions of this subsection shall not deter or abridge the rights or obligations of the parties in performance of their covenants, including but not limited to the provision of services, payment of rent, or the obligations imposed by Sections 1941, 1941.1 and 1941.2 of the Civil Code. (F) Termination of Tenancy by Tenant. The applicant for conversion shall permit a tenant to terminate any lease or rental agreement without any penalty whatsoever after notice has been given of the intention to convert the tenant's rental unit to a community housing project in accordance with Section 21.40.060(a)(1)(B) above, if such tenant notifies the applicant for conversion in writing thirty days in advance of such termination. Such right to terminate shall expire if the application for conversion is denied. (G) Notice to Prospective Tenants in Accordance with Government Code Section 66452.8. (i) Commencing on a date not less than sixty days prior to the filing of a tentative or preliminary parcel map, the applicant for conversion or his or her agent shall give notice of such filing to each person applying after such date for rental of a unit of the subject property immediately prior to the acceptance of any rent or deposit from the prospective tenant. (ii) The notice shall be as follows: To the prospective occupant(s) of [address] The owner(s) of this building, at (address), has filed or plans to file an application with the City of Palo Alto to convert this building to a [specify community housing project]. No units may be sold in this building unless the conversion is approved by the City of Palo Alto and until after a public report is issued by the Department of Real Estate. If you become a tenant of this building, you shall be given notice of each hearing for which notice is required pursuant to Sections 66451.3 and 66452.5 of the Government Code, and you have the right to appear http://nt2.scbbs.com/egi-bin/om_isapi. dll?clientlD=267655206&hitsperheading=on&infobase=pro... 4/30/2008 Document Page 7 of 9 and the right to be heard at any such hearing. In addition, if you become a tenant, if two-thirds of the rental units have consented to conversion and if the conversion application is approved by the City Council, the unit you rent will be offered to you for purchase; if you do not desire to purchase the unit, you will be offered an extended lease in accordance with Chapter 21.40 of the Palo Alto Municipal Code. (signature of owner or owner's agent) (dated) I have received this notice on: (date) (prospective tenant's signature) (H) Remodeling. Repairs and/or remodeling proposed to be made in connection with the conversion shall not be performed without the tenant's consent during the ninety-day period from the date of issuance of the DRE report. If repairs and/or remodeling of the unit require the tenant's temporary relocation, the applicant for conversion must assume all moving costs and rent for comparable replacement housing for the tenant who is displaced on a temporary basis. (I) Engineer's Report. In order to assist the tenants in their decisions whether to purchase their units upon conversion, the applicant for conversion must send a copy of the property report and structural pest report required pursuant to Section 21.40.060(a)(2)(B)(i) and (ii) to all tenants on or before the date of issuance of the DRE report. (J) Notice of Compliance with State Law, The applicant for conversion must provide written evidence of compliance with Government Code Section 66427.1. (2) Buyer Protections. (A) Age Discrimination. No community housing project shall prohibit sales of units to persons with children unless it is determined by the director of planning and community environment upon review of a preliminary parcel map or the city council upon review of a tentative map that from the time of its development, the project was designed and built for the exclusive occupancy of persons sixty years of age or older. (B) Certificate of Use and Occupancy. Prior to the sale or occupancy of any units which have been converted to community housing, a certificate of use and occupancy for community housing shall be obtained from the chief building official pursuant to Chapter 16.38 and subject to the following additional requirements: (i) The applicant for conversion shall submit a property report describing the condition and useful life of the roof, foundations, mechanical, electrical, plumbing and structural elements of all existing buildings and structures. Such report shall be prepared by a registered civil or structural engineer, or a licensed general building contractor or general engineering contractor. (ii) The applicant for conversion shall submit a structural pest report. Such report shall be prepared by a licensed structural pest-control operator pursuant to Section 8516 of the Business and Professions Code, relating to written reports on the absence or presence of wood-destroying pests or organisms. (iii) The consumption of gas and electricity within each dwelling unit shall be separately metered so that the unit owner can be separately billed for each utility. A water shut-off valve shall be provided for each unit. The requirements of this subsection may be waived where the chief building official finds that such would not be practical. (iv) All permanent mechanical equipment, including domestic appliances, which are determined by the chief building official to be a source or potential source of vibration or noise, shall be shock-mounted, isolated from the floor and ceiling, or otherwise installed in a manner approved by the chief building official to lessen t the transmission of vibration and noise. (v) The wall and floor/ceiling assemblies between dwelling units shall conform to the sound- performance criteria of Title 25 of the California Administrative Code. (vi) Accessible attics shall be insulated to meet the energy conservation requirements of Title 24 of the http://nt2.scbbs.comlegi-binlom isapi.dll?clientID=267655206&hitsperheading=on&infobase=pro... 4/30/2008 Document Page 8 of 9 California Administrative Code. (vii) Electrical control panels shall be provided in accessible locations controlling the entire service to each unit. (viii) The wall and floor/ceiling assemblies between dwelling units shall meet one-hour fire-resistive construction as specified in the latest edition of the Uniform Building Code. (ix) Smoke detectors approved by the fire prevention division shall be provided in each unit. (x) Any multiple-unit building three stories or more in height or containing more than fifteen dwelling units shall have an approved fire alarm system as specified in the Fire Prevention Code. (3) Below-'_1larket-Rate Requircmcnt. In conversions of tcn or more rental units, not less than tcn percent of the units in the community housing project shall be provided for sale to the city for permanent low and moderate income housing in accordance with either the city's below-market-rate program, the city's rental housing acquisition program, or such similar program expressly approved by the city council as being in accord with the city's comprehensive plan's goals and objectives for low and moderate income housing. The provision of such low and moderate income housing in accordance with this subsection shall be in compliance with the city's below-market-rate requirement for subdivisions set forth in Housing Program 17 of the comprehensive plan, and as thereafter may be amended. This section shall be considered fulfilled if the applicant for a conversion meets the condition set forth in Section 21.40.050(b). (Ord. 3295 § I (part), 1981: Ord. 3157 § 1 (part), 1979) 21.40.070 Contents of an application. (a) In addition to the other requirements of this title, an application for approval of a tentative or preliminary parcel map for a conversion shall be accompanied by the following information: (1) Age and length of occupancy of every tenant including children, in the rental housing complex on the date of the conversion application; (2) Current rents for each unit and the date and amount of all rental increases within the two years prior to the date the conversion application is received; (3) The approximate proposed sales price of each unit and the pro forma budget proposed for submission to the real estate commissioner or a similar estimate of projected annual operating and maintenance fees or assessments; and (4) A statement of any repairs or improvements proposed to be completed prior to the sale of units, along with a time schedule therefor; (5) A statement of proposed tree and landscaping removal and/or planting, if any; (6) A parking plan, including the total number of spaces actually provided, the total number of covered and uncovered spaces, and the location and number of guest parking spaces; (7) A report describing the building's utilities, storage space and laundry facilities; (8) Any other information which, in the opinion of the director of planning and community environment, will assist the city in determining whether the proposed conversion is consistent with the purposes of this chapter and the comprehensive plan. (Ord. 3295 § 1 (part), 1981) 21.40.080 Time limits. (a) Withdrawal. If a tentative or preliminary parcel map for a subdivision to be created from a conversion is withdrawn before city council review, a map for said subdivision cannot be submitted again for one year after the date of withdrawal. (b) Expiration. If a tentative or preliminary parcel map for a subdivision to be created from a conversion which has been approved or conditionally approved by the city council expires, pursuant to Government Code Section 66452.6, a map for said subdivision cannot be submitted again for one year after the date of expiration. (c) Denial. If a tentative or preliminary parcel map for a subdivision to be created from a conversion is denied by the city council, a map for said subdivision cannot be submitted for one year after the date of denial. (d) Sale. All rental units approved for conversion shall be offered for sale within two years of the issuance of the DRE report. (Ord. 3295 § 1 (part), 1981) 21.40.090 Severability. http://nt2.sebbs.comlcgi-binlom_isapi. dll?clientID=267655206&hitsperheading=on&infobase=pro... 4/30/2008 Document Page 9 of 9 If any provision or clause of this chapter or the application thereof to any person or circumstance is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other chapter provisions, and clauses of this chapter are declared to be severable. (Ord. 3295 § i (part), 1981) http://nt2.scbbs.conVegi-binlom_isapi. dll?c iientID=26765 5206&hitsperheading=on&infobase=pro... 4/30/2008 E~( V_~ k 9c, I ~c 3 ~O~ PALfl PLANNING DIVISION U O Memorandum `QLIFOR~ Date: December 10, 2007 To: Planning Staff From: Roland Rivera, Senior Planner Subject: Residential Vacancy Rate Determination The Director of Planning and Community Environment is required by the provisions of the Palo Alto Municipal Code, Chapter 21.40, to determine the vacancy rate of Palo Alto's rental housing stock in April and November each year. The vacancy rate is calculated for the purpose of regulating the conversion of housing developments containing a minimum of three dwelling units from rental-type tenancy to condominium uses. The following data is based upon information obtained from the Bureau of the Census, Building Division records, Utilities Department records and previous Residential Vacancy Rate Determination reports. Total Rental Housing Dwelling Units: 7,613 Approximate Number of Vacant Units: 136 Vacancy Rate: 1.78% Number of Vacant Units if Vacancy Rate were 3%: 228 Vacancy Surplus in Dwelling Units: n/a Vacancy Deficiency in Dwelling Units: 92 This data indicates that in November, 2007, the vacancy rate for rental housing was 1.78%. Since this vacancy rate falls below the minimum 3% threshold established by Chapter 21.40, an application for consideration of a tentative or preliminary parcel map for conversion may be filed only if the conditions set forth in Section 21.40.050(b) are met. Apartment Vacancy Rate Calculation (November, 2007) Housing Stock Data Total Renter-Occupied units in 3+ DU structures. (as of June, 2007) 7,613 Changes in Rental Housing Stock (3+ DU structures) (tuner, 2007 November, 2007) Demolished Units New Units Built Total Rental Housing Stock in 3+ DU structures (November, 2007) 7,613 Electric Meter Data Utility Records Date Active multi-family accounts Inactive multi-family accounts Estimated Vacancy Rate 11/07/07 9,716 172 1.77% 11/14/07 9,724 168 1.73% 11/21/07 9,722 176 1.81% 11/28/07 9,720 178 1.83% November, 2007 Vacancy Rate (average) 1.78% Estimated # of Vacant Units 136 # of Vacant Units at 3% Rate 228 Vacancy Surplus 0 Vacancy Deficiency 92 June 10, 2008 DECEIVED To Town Council, Town of Los Gatos JUN 11 2008 Subject: 347 Massol Ave. Condo Conversion. 70WN of LOS GATOS PLANNING DiVI&ON We are residents living adjacent to 347 Massol at 315 Massol Ave. Our relationship with the existing renters and management for the last ten years has been a positive one. It has been our experience that home ownership versus rentals increases the responsibility of the individuals involved. This can only help to improve the neighborhood and surrounding community. After attending and participating in the Planning Commission meeting when this proposed conversion was discussed we have the following comments to add to the discussion. 1)Guidelines: Must be developed for "condo conversions.' Single Family and Two Family Residential Guidelines were approved by the Planning Commission at its May 23 meeting. These are "just and impartial rules" developed by the Planning Department and are available to all parties when they enter into development in these sectors of housing within the town. Similar rules have to be developed in a logical and consistent manner for the conversion of rental units to condominiums. It is better to take time and now and develop guidelines to prevent a patchwork quilt of results that would leave many with the feeling that the approval process is largely up to the party that lobbies most effectively. 2)Parking: The present 56 spaces for rental units is inadequate presently. You have to live nearby to experience the recreational vehicles, boats in tow and extra vehicles competing for the existing available parking spaces on the street. The parking department had to be called this past week again for a truck parked for over 7 days on the street. The Urban Institute indicates that the number of cars per condo unit is proportional to the sales price of the unit. With these units being in the $650K range the requirement of 168 spaces for 56 units may be not be adequate. Possibly there may be room for elevated or elevator parking found in other urban areas? 3)Neighborhood Compatibility: With 360-degree Architecture. It will be financially impossible for the developer to redesign the property and maintain the price for condominium units that are affordable and meet the Affordable Housing IBMP guidelines. The present plans show improving the architecture facing Massol. Will a building looking like a movie set in the front and the other three sides not matching be appropriate for the Almond Grove historic district? A clear set set of guidelines for rental to condo conversion would allow Lyon's and other such developers to present practical good faith plans that would be in keeping with the character and long term plans for developments in Los Gatos. Sincerely, Wilfrid Ho ®orothy H d~ l~ 315 Massol Ave. Los Gatos, Ca. LYON CAPITAL VENTUREI S BAY TREE PROPOSAL SUMMARY Town Council Hearing - June 16, 2008 Backaround: The applicant first approached the Town regarding the condominium conversion in September 2005. With subsequent meetings ranging from meetings with the CDAC, Town Staff, GPAC, Planning Commission and multiple appointments with the past and current Town Manager, Lyon has demonstrated their willingness to work collaboratively with the Town to draft a mutually beneficial proposal. Applicant request: Applicant requests the approval of a Planned Development Permit, Tentative Map and General Plan Amendment to convert the Bay Tree Apartments to for- sale condominiums. The number of units and unit sizes will remain the same. However, the Applicant plans to improve the exterior facade of the property to bring it more in line with the architecture of the Almond Grove Historic District. Project Benefits: 1. Housing prices have increased to a point that there is a significant barrier to entry. 2. Los Gatos housing prices, surveyed in March 2008, prove that point: - Median single family house prices are $1.536M - Median condominium /town home prices are $821k 3. Bay Tree Condominiums are respectively 29% smaller than the average Los Gatos condominium (990SF vs 1400SF). Thus, the expected sales prices are expected to be proportionately lower than comparable properties. 4. This lower cost of entry would assist: ■ Empty Nesters buying down to tap into home equity for retirement • First-time buyers who grew up in Los Gatos but could not afford to purchase ■ Adults who purchase the homes for their aging parents for care- taking purposes ■ Los Gatos public sector employees (police, fire, teachers, etc.) 5. The Town has a unique opportunity to further increase the diversity of housing at the lower end of the buying spectrum for its residents. ATTACMIENT 8 LYON CAPITAL VENTURES Considerations: 1. Below Market Price 1 Affordable Housing: After extensively meeting with Town elected officials and Staff members, the Applicant agrees to fully comply with the BMP Ordinance and Guidelines. However, the Applicant requests that we are given the opportunity to work with Staff to modify the agreement if more beneficial BMP ordinances and/or guidelines are adopted in the future. In addition, the Applicant wants to clarify that the BMP requirements will not be in effect until the owner markets the individual units for sale to the public. 2. Parking: Present Condition: ■ The Bay Tree was built in 1960 with 1 space per unit (1:1), 56 spaces. ■ Today the Town requires 3 spaces per unit (3:1), 168 spaces. ■ Parking demand and patterns have not changed. A 1962 study by the Institute of Transportation Engineers (ITE) found average peak demand in "Low/Mid-Rise Suburban Apartments" to be 1.26 spaces per unit. (Exhibit A) - Current ITE figure is 1.2 spaces per unit (Exhibit B) Projected Parking Demand: ■ Staff predicts a 22% increase from 1.2 spaces per unit to 1.46 spaces per unit based on ITE studies of "Low/Mid-Rise Apartment Suburban" and "Residential Condominium/Townhouse." (Exhibit C) ■ Bay Tree condominiums will be smaller than most condominiums and townhouses in the area. ■ Location within easy walking distance of downtown. M Condominium buyers expected to include many seniors. ■ Like Los Gatos as a whole, Bay Tree residents tend to be older than average. Bay Tree condominiums are expected to attract even more retirees and empty nesters. ITE finds "Senior Adult Attached Units" have peak parking demand of between .33 and .5 spaces. Exhibit D , YON CAPITAL _.ENTURES Proposed Additions: ■ 38 new spaces to 94 total, an increased of 68% to 1.68 spaces per unit. (Exhibit E) ■ Minor variances in dimensions/configuration required. ■ Other options such as car lifts were explored, but none proved feasible based on comments from various Town committee members. ■ HOA Governance - Car decal program, two-car limit to be controlled by condominium HOA. Other Considerations: Concerns were noted at the Planning Commission hearing on April 23rd about congestion on Massol as the result of overflow parking from the apartment property. Based on this comment, the Applicant had an independent consultant study the existing parking use and found the following: ■ On-Street Parking - 36 existing on-street parking spaces are available on Massol from Bachman to Highway 9 (Exhibit F) ■ Counts taken during the week of May 7-19 found neither side of street ever close to capacity. (Exhibit G) 3. Density: All but one of the Town's General Plan requirements is currently met. The one exception is the site's existing density. Under the property's current zoning (medium density residential [RM 5:12]), the existing site is 16 units over the maximum allowed when utilizing the density bonus granted in the BMP code. No change to the existing number of dwelling units is proposed, however, a General Plan Amendment is proposed to accommodate the site's density under the current General Plan and Zoning Code. If the General Plan Amendment is property is modified to High Density full compliance with the General Plan. approved and the zoning for the Residential, the project would be in 4. Private Open Space: Current code requires 200 square feet for ground floor units and 120 square feet for balconies. LYON CAPITAL VENTURES The property is substantially in compliance with the Town's requirement for Private Open Space. 5 of the 56 units are shy of the requirement by less than 4 square feet. The remaining 51 units are significantly over the Town's requirements. The total square footage of Private Open Space required at the Bay Tree is 8,960 SF. The actual square footage provided is 14,853, an increase of 5,893 SF or 166% of what is required. 5. Neighborhood compatibility: The architectural design of the existing buildings is not consistent with the rest of the homes in the Almond Grove Historic District. As part of the application, the owner will invest significant capital to dramatically renovate the exterior facade of the development, and add site amenities such as increased parking, recreation areas and landscaping commensurate with the historic context of the surrounding neighborhood. Please see Gary Schloh's design concept on Exhibit H. The current use as a rental project is not consistent with the surrounding area. Bay Tree is the only apartment development with frontage on a main street in the historic district. Most apartments are set back from the street. Though the proposed project would not modify the frontage or setbacks, it would transition the units from rental to owner-occupied in keeping with the owner-occupied context of the historic district. As such, the proposed conversion would bring the use and facade in line with its surrounding area. 6. Additional questions from Council Members: ■ Traffic impact? - No traffic impact is expected with the approval of this application. Please see e-mail confirmation from Randy Tsuda (Exhibit I). ■ How will this project help benefit the Town? The General Plan, Goal #1: "Expand the choice of housing opportunities for all economic segments of the community through a variety of housing types and sizes, including a mixture of ownership and rental housing. " - The current rental mix is 35%. The Town's General Plan outlines the goal of maintaining a minimum of 30% rental units. F-A VENTURES - The conversion of the Bay Tree Apartments reduces the Town's actual rental stock to 34.2%, well above the Town's goal. - The condominium conversion of the Bay Tree Apartments would exchange high-end, premium priced rental units for lower-cost home ownership opportunities. - Demographic of anticipated buyers of Bay Tree Condominiums: o Empty Nesters buying down to tap into home equity for retirement o First-time buyers who grew up in Los Gatos but could not afford to purchase o Adults who purchase the homes for their aging parents for care-taking purposes o Public sector employees looking to purchase in the community of their employment. - The conversion assists the Town in its pursuit of increasing housing Diversity by delivering 48 "practical affordable" units to the market and 8 BMP units to the existing Town stock of 40 units (a substantial 20% increase). Land Use: 221 Exhibit A Low/Mid-Rise Apartment For the. urban study sites, the parking demand data consisted -of single or discontinuous hourly counts and therefore a time--of-day distribution was not produced. The following table .presents a time-of-day Bas d vn 1~eftF les per, r ' Llll 11r~1Br7. S ' Vlfeek, Data Hour Beginning , Percent of Peak.Pedod: ' Number 6fData Points ` 12-00--4:00 a.m. °E00 19. 5:00 s, m. 96 15 6.00:a:rn. 92 . 22 7,00.a:m. 74 15 T 4a 64- 9 9:00 a.m. 0 10:00 a.m.. - 0 11:-0 a.m.. 0 12:00 .M.. q 1:00 :rn. 0 2.00 m 0 3x00• .rn. - 0 4:00 .m. 44 1 S:00 .m. 59 1 -"0 pan 7t Q0 .m; 66 10 8:00 ;rrt._ 75 9 9:00..M. 77 11 10:00 _m. 92 .26 1 t 00 P.M. :94 11 Subset of database Larking studies of apartments should attempt to obtain information on occupancy. rate and on_ the mix of.a artment sizes in other words, number of bedrooms. per apartment :and number of units In the complex). Future'parfcfng studies should also Indicate the number o eves contained n e apartment building, Additional Data Apartment occupancy can affect parking demand ratio. In the United States, successful apartment complexes 'Wrnmonly have a vacancy rate between 5 -and :8 percent.2 While auto ownership has. increased over time, based on the limited data sample, the parking -demand ratite for thn provided data sat dirt nn ary sign- cantlywith ale. There is a vide range of data from the 1.960s to 2000s (prirtlarily fram the 1980s to 2000s) in the.database. In fact, a series surveys conducted in. iWl and 1963 found a peak parking. demand ratio very similar to the data collected in Parking Generation, The study conducted in Hayward, CA. surveyed 53 apartment complexes witha total.of 1,759 dwelling units between the hours of 3:00and.5:00 a.m. on seven consecutive days in both years. The study found an average 6T 1.26 puked ve io es per dwelling unit, 2 Rental and Homeowner Vacancy Rates. for the United States: 1960 to 2001, U.S. Census Bureau. www census,;govlhheslwww/housing/hvs/g401 tabl :htrnl a Crommelin, Robert. Planning for Parking; Resrdeptlal Requirements; rogeedings of the 16th California Street and Highway Conference, UC Berkeley: Institute of Transportation Studies, Anuary:30; 1964. .institute of Transportation Engineers PeAlig Generation; 3rd lld. ion Land Use 21 Exhibit s Low/Mid-Rise Apartment Average Peak Period Parking Demand vs: Dwelling Units On a. Weekday Location; Suburban C ::D Weekday Suburban Peak Period Parking Demand 2000 U P = 1.43x , 46 _ B 150'0 R= 0,93 1000 f~ i 500---- 0 IL 0 500 1000 1500 x = 'Dwelling Units + Actusil Data Points Fitted Curve - - - - Average :Rate Institute of Transportation Engineers ~J~i1R Peak: Period 12*00-5-.00 a:m; Number of Stud Sites Average Size of 19 -20 wAt -Asmagge . Peak Period Parkin Dematfd Standard Deviation 1.20 vehicles er dwellin unit Coefficient of Variation 26% Range 6.68-J A4 vehicles per dweliin unit 85th Percentile 1.46 vehicles er:dwellin ' unit 33rd-Pemcentile 1.0.9 vehicles. per dwellin unit F'a►tcinq Generation, 3rd Edfilon Land Use Group. 230 Residential Condominium/Townhouse Average Peak Period Parking Demand vs: Dwelling Units On a; Weekday Location. Suburban Peak Period Number of Stu i es 6:00- Bi0o a.m. Averse Size of Stud Sites sera e e 120 dwellin units e ides er dwellin unit Standard deviation 0.33 Coefficient of Variation 23% Range 1104-~-1.96 vehicles er dwelfin unit 85th.Percentile 1.68vehicles erdwellln unit 33rd Percentile 1.38.vehicles per dwelling. unit WeekdaySubuIrban Peak Period Parking Demand N 4400 350 300 250 200 J 150 ci 100 50 ~ 0 0 100 200 300 x = Dwelling Units - P 95.8Ln(x) - 272 R2 = 0.90 • Actual Bata Points Institute of Transportation Engineers Pitted Curve - - - - Average Rate Nit GaneraNoe, 3rd Ed%ian ibit C Land Use: 252 Exhibit D Senior Adult Housing-Attached Land Use Description Senior adult housing consists of attached independent living developments, including retirement communities,. age-restricted housing and active adult communities. These ;developments may include limited social or recreational services. However, they generally lack ceritraiized dining and on-site medical facilities. Residents, in these communities live Independently, are typically active (requiring little to no medical supervision) and may or may not be:retlred. Congregate care facility (i,.and Use 258) and continuing care retirement community (Land'Use 255) are related uses. Database Description The database consisted of two study sites. The study sites had 46 and 91 dwelling units. • Parldrig supply ratio: 1.2 and 1.4 spaces per dwelling unit, respectively. Weekday,peak parking demand ratio. 0.50 and 0.33.parked vehicles per dwelling unit at the 46. and 01-unlt sites. respectively. • Saturday peak parking demand ratio: 0.50 and 0.34 parked vehicles per dwelling unit at the 46- and 91-unit sites, respectively. Parking demand counts were submitfed for the hours beginning at 9:00 a,m., 10:00 a:m., 2:00 p.m. and 5:00 p.m. From these limited data, no definitive peak hour or peak:pedod was established, Study SitesfYears Huntington Beach, CA `(1989) fnsUtui of MwisparbWan EngEneers 60 / Pdiog Generation, 3rd Edon Exhibit E i r r ~ l LYON CAPITAL VENTURES _(D Lam. ~ I THE RAY TREE SITE PLAN- PROPOSED 347 SCL AVENUE w8wos,I'Ag 48[I &fi F ?c171N1$PAs I,>3 hlE1+J SPAMSNCs'Alhl WAtiE0 ~ u 80 @a 0 Exhibit F - Massol Off-Street Parking Exhibit G - Massol Parking Observation Data P ~ `UTtir Bay -Tree ' # of cars (oppose A ~ Wednesday, May 07, 008 10:59 AM 4 9 13 23 hursday, May 08, 008 9:30 AM 3 6 9 27 aturday, May 10, 008 11:00 PM 7 9 16 20 unday, May 11, 008 6:39 PM 9 2 11 25 uesday, May 13, 008 7:00 AM 5 4 9 27 uesday, May 13, 008 11:40 PM 8 5 13 23 ednesday, May 14, 008 6:11 PM 7 5 12 24 ednesday, May 14, 008 11:09 PM 11 3 14 22 hursday, May 15, 008 9:12 AM 8 3 11 25 hursday, May 15, 008 8:12 PM 11 2 13 23 Friday, May 16, 2008 9:25 AM 8 6 14 22 Friday, May 16, 2008 10:20 PM 9 2 11 25 Saturday, May 17, 008 9:10 AM 6 11 17 19 aturday, May 17, 008 7:09 PM 12 7 19 17 unday, May 18, 008 10:30 AM 13 7 20 16 Sunday, May 18, 008 12:23 PM 10 10 20 16 Monday, May 19, 008 8:13 AM 10 4 14 22 vera es 8.3 5.6 93.9 22.1 CAPITAL _ENTURES Exhibit H Before: After: Page 1 of 1 Exhibit I Ron Cole .From: Randal Tsuda lRTsuda@losgatosca.gov] Sent: Tuesday, June 20, 2006 10:50 AM To: Ron Cole Subject: Re: Bay Tree Ili Ron.: Our traffic engineer reviewed the trip generation rates betwoon apartments and condoiIiiliimunls. The traffic data indicates that the traffic levels for your property may actually drop with a conversion, Given this, no traffic report or traffic mitigation fees would be required, Randy Randy Tsuda Town of Los Gatos Assistant Coirununity Development Director 408.354.6s06 Phone 408,354.7593 Fax rtsuda 1losg,fltosca.gov "Ron Cole" <roncole ci Lyonl.com> 06/14/2006 4:54:18 PM Randy, It was good meeting with you today. Thanks for the time bnd guidance. Per your request, the unit mix is: 15 One-bedroom units 41 Two-bedrooln units Ron Ron Cole Lyon Apartment Companies Acquisitions Development Managennent 4001 Birch St. Newport Beach, CA 92560 Direct Dial: (949) 838-1221 Direct Fax: (949) 838-9202 nlallwa-0n_COW-0yon .00111 hup;//www.lyonap artments.coin Sent from my BlackBerry Wireless Handheld 7/6/2006 N Lei IIf N r9 O W Q N Ql O d V 1.1 Ji F'. i C ~j 10 !6 ri N N vi I6 ro lc bl H bk -rl Q1 4 T) 44 O rt ~j C W •ri (Q Iif Z1 If .A A C Q , U C Q ro N N I r~ 4A LO O - 1 E O -(A N S1 r.1v 'V7 ~ O L m C7 .i b ••I .-1 I N H Ql + 44 Pf w 44 E. v Q x (V C4 L~4 o • Q7 G a1 Ste' FC 41 m H ro N w E+ 11 O O u -4 N k 1n 41 ro i1 H ro •ri w O H ro L) iJ G N 'Ii L mu X v IA 01 r: ~ 4S71 r1 U N H 0 fti E b m C O N w O w •r1 r1 C b W `,i C tl iT C 14 C Q Q) .4 J-1 41 N N Q U Q C W •14 Lo N r A • i 0 N 'O Q1 'U •H m (D S1 O r1 cu 0 ,l o ri w 1d 41 4 m 5 01 p N G 0 N 'd ,i 4' Q 10 .'I o ro C O u >1 a m 5 ro w j4 0 m 'I 7 m a O o w Q) o U q 9L1 H :j Q x >1 u • > •.i m m Q r4 - C ?1 H ~ v Q ro CQ U W a O w 1 1 C7 3 rn 4J 1 1 C O C'a 7 Q H a H r6 O L1 O H N 4J @ 9 O O W q 0 bl C U M 3 p U L4 Su -W v RRR, 0 g g m to B ~r a n• ~ c 11 ~ ~ 3 ° Ql • i Ae L n H 1 1 O - %a w a SSGG m m R a N w O . 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Fri 44 1? N C 0 0 0) a) 41 4~ a) Li 'i ~o ro ~ q o •A o "1 14 H ro H H u u f* a, H .4 a v o u H v u 44 ei N M C 111 t` 90 Q1 O r-i H N N r] ~ N r 6 .-1 N W N .-i .f rl rl ri M N ri N N N N N N O N N ~ O 9 H ~ O N O U ~ r z rn H ~ M a ~ P, 0 J1 H ~ [9 0 M cc TOWN OF LOS GATOS PLANNING COMMISSION STAFF REPORT gas oA ug Meeting Date: April 23, 2008 PREPARED BY: Joel Paulson, AICP Associate Planner APPLICATION NO.: General Plan Amendment GP-08-01 Planned Development PD-07-002 ITEM NO.: 3 LOCATION: 347 Massol Avenue. (347 Massol Avenue is located on the west side of Massol Avenue approximately 190 feet south of Highway 9) APPLICANT: Lyon Realty Advisors PROPERTY OWNER: Lyon Baytree Apartments LLC CONTACT PERSON: Ron Cole, (949) 838-1221 APPLICATION SUMMARY: Requesting approval of a General Plan amendment from Medium Density Residential (5-12 dwelling units per acre) to High Density Residential (12-20 units per acre) and a zone change from RM:5-12 to RM:12-20:PD for a fifty-six lot residential subdivision to convert the existing apartments to condominiums. APN 510-14-004 DEEMED COMPLETE: April 9, 2008 FINAL DATE TO TAKE ACTION: General Plan amendments and rezoning applications are considered to be legislative acts and are not governed by the Permit Streamlining Act. RECOMMENDATION: Forward a recommendation of denial to the Town Council for the General Plan amendment and zone change. PROJECT DATA General Plan Designation: Zoning Designation: Applicable Plans & Standards Parcel Size: Surrounding Area: Medium Density Residential RM-5:12 General Plan 2.687 acres ..Existing Land Use.,._~ ...General Plan Zoning North Commercial ! Central Business C-2 / Residential District / Unknown - Unknown - Monte Sereno Monte S ereno Planning Commission Staff Report - Page 2 347 Massol Avenue April 23, 2008 East Residential Medium Density R-1D:LHP Residential south Reside ntial Medium Density . R-1D:LHP/ Residential R- 1D:LHP:PD ..Wes..._..-.. t Rcsidential Unknown Monte Unknown Sereno Monte Sereno CEQA: Categorically Exempt pursuant to Section 15301 (k) of the State Env ironmental Guidelines as adopted by the Town because there is no expansion of the existing use and there are no physical changes involved that would not otherwise be exempt. FINDINGS: N The Planning Commission must make a finding that the General Plan Amendment is internally consistent with the General Plan if their recommendation is for approval. a The Planning Commission must make a finding that the zone change is consistent with the General Plan ''if their recommendation is for approval. ■ The Planning Commission must make a finding that the work proposed is consistent with the Redevelopment Plan for the Central Los Gatos Redevelopment Project Area (Section IV.B) if their recommendation is for approval. ACTION: 1. Recommendation to the Town Council for the General Plan amendment and zone change. EXHIBITS: I. Location Map 2. Findings 3. Conditions of Approval (3 Pages) 4. Letter of Justification/Project Description from the applicant (16 pages), received September 29, 2006 5. Proposal summary from applicant (4 pages), received April 8, 2008 6. CDAC minutes for the meeting of August 9, 2006 (2 pages) 7. Existing apartment complexes 8. Development Plans (4 pages), received April 9, 2008 Planning Commission Staff Report - Page 3 347 Massol Avenue April 23, 2008 PROJECT DESCRIPTION: The applicant is requesting approval of the following: • A General Plan amendment from Medium Density Residential (5-12 dwelling units per acre) to High Density Residential (12-20 dwelling units per acre); • A zone change from RM-5:12 to RM-12:20:PD; • Conversion of the existing apartments to condominiums; and • Minor exterior modifications to the existing apartment buildings. REMARKS A. General Plan Amendment and Rezoning The existing General Plan Designation of the parcel is Medium Density Residential (5-12 units per acre). The existing Zoning Designation of the parcel is RM-5:12 (Multi-Family Residential 5-12 units per acre). The existing density of the project is 20.8 dwelling unit per acre (du/ac) which exceeds the current General Plan Designation as well as the Town's maximum allowed-density of 2Q:du/ac. _ The applicant proposes to amend the General Plan designation from Medium Density Residential (5-12 du/ac) to High Density Residential (12-20 du/ac) and to change the Zoning from RM-5:12 (Multi-Family Residential 5-12 du/ac) to RM-12:20:PD (Multi-Family Residential 12-20 du/ac with a Planned Development Overlay). These designations will more closely match the current density of the project. With the proposed amendments, the project would still exceed the 20 du/ac maximum. However, the applicant proposes to provide eight Below Market Price (BMP) units with the condominium conversion. BMP units are not counted in a project's density calculation. However, the applicant proposes to sell the proposed BMP units at a higher sales price than the adopted BMP Guidelines. The applicant's proposed pricing is included in Exhibit 5. If the Council determines that this is appropriate and the density bonus still applies, the resulting density for the proposed project with the BMP unit deduction is 179 du/ac, which would conform to the proposed General Plan density range and zoning designation. B. Subdivision / Conversion to Condominiums The applicant is proposing to subdivide the existing single parcel which currently contains 56 apartments. The subdivision would create 56 air space condominium parcels (one for each existing apartment) and one common parcel. If the General Plan amendment and zone change are approved the applicant will be required to file a Subdivision application for approval of the subdivision. Planning Commission Staff Report - Page 4 347 Massol Avenue April 23, 2008 Policy H.P.3.1 of the Housing Element states the following: Support preservation and conservation of existing housing units that provide affordable housing opportunities for Town residents and workers and strive to ensure that at least 30% of the housing stock are rental units. Currently, the Town's housing stock is comprised of approximately 35% rentals. The conversion of the existing 56 apartments to condominiums will not result in a dramatic reduction in the Town's current rental housing stock. If the General Plan amendment and zone change are approved the Town will continue to maintain rental housing stock in excess of the 30% illustrated in the General Plan policy above. The applicant asserts that the conversion will provide market rate units at a "practical affordability" sales price and that this is beneficial for people who may not otherwise be able to purchase housing in the Town (See Exhibit 5). This assertion may be correct, however there is no guarantee of this because the Planned Development does not restrict the sales price of the market rate units. The units will be sold at market rate. Attachment 7 is a map which shows the location of apartment complexes similar to the subject property (Baytree). If this conversion is approved, staff estimates that 1485 units will be eligible for conversion assuming similar circumstances exist at these other existing projects. Staff-is concerned about the precedent setting aspect of this project.= Wo apArtment complexes have been converted in the Town in over 30 years because of the parking, open r~ space, and BMP requirements. Additionally, with the exception of the Sobrato project no" apartment complexes have been built in that same time frame. Given the significant potential implications of condo conversions staff will add "condo conversions" as a policy issue to be addressed in the Housing Element Update so that the issue can be discussed and studied and appropriate policy direction can be provided. C. BMP Units The Town Code requires that all projects, including condominium conversions, provide BMP units. The Code requires the provision of eight BMP units for this project and the BMP Guidelines establishes the sales price for the units. The applicant proposes to provide eight Below Market Price (BMP) units with the condominium conversion. However, the applicant proposes to sell the proposed BMP units at a higher sales price than set forth in the BMP Guidelines. The applicant's proposed pricing is included in Exhibit 5. This option would necessitate an amendment or reinterpretation of the BMP Guidelines by the Town Council to allow the applicant to sell the units at a higher price than the established sales prices in the adopted BMP Guidelines. Additionally, the Council would have to determine whether it is appropriate to grant a density bonus for the eight BMP units that will be sold at a higher rate than allowed by the BMP Guidelines. Planning Commission Staff Report - Page 5 i. 347 Massol Avenue April 23, 2008 D. Parking The Town Code requires three parking spaces per unit for condominiums which equals 168 spaces for this project. The complex currently has 56 spaces. The applicant proposes to provide 36 additional parking spaces, including 20 tandem spaces which are not permitted by Town Code (See Exhibit 5). The proposed total of 92 spaces will not comply with the Town Code requirement. E. Private Qpen Space The Town Code requirement for private open space is 200 square feet for ground floor units and 120 square feet for second floor units. Six of the units will not comply with these requirements (See Exhibit 4). F. Facade Improvements The applicant has also provided conceptual renderings of proposed exterior facade improvements (See Exhibit 5). If the General Plan amendment and zone change are approved the applicant will be required -to file an Architecture and Site application for approval of the facade improvements. G. Traffic The Parks and Public Works Department has determined that the conversion of the apartments to condominiums will not result in any traffic impacts. The trip generation rates for condominiums are less than the rates for apartments. H. Trees No trees are proposed to be removed. 1. CEQA Determination Categorically Exempt pursuant to Section 15301 (k) of the State Environmental Guidelines as adopted by the Town because there is no expansion of the existing use and there are no physical changes involved that would not otherwise be exempt. TOWN COMMITTEE MEETINGS: A. General Plan Committee On April 9, 2008, the General Plan Committee (GPC) considered the applicant's request to amend the General Plan and zoning designation for the existing parcel. The GPC expressed Planning Commission Staff Report - Page 6 347 Massol Avenue April 23, 2008 numerous comments about the proposal. The GPC recommended approval of the General Plan amendment and zone change by a 4-3 vote, In general the GPC was concerned about the number of BMP units and parking. B. Conceptual Development Advisor Committee The Conceptual Development Advisory Committee (CDAC) reviewed this proposal on August 6, 2006. The CDAC's comments are attached (Attachment 6). The Committee expressed numerous comments about the proposal. In general the CDAC was concerned about the loss of rental units and parking. GENERAL PLAN GOALS POLICIES AND STRATEGIES a. Goal L.G.2.3 of the Land Use Element calls for preservation of the quality of the personal open space (yards) throughout the town. b. Policy L.P.2.5 of the Land Use Element states that the usable open space in all developments shall be maximized. c. Policy L.P.3.5 - Assure that the type -and intensity of land use shall be consistent with that of the immediate neighborhood. d. Policy L.P.4.1 - Continue to encourage a variety of housing types and sizes that is balanced throughout the Town and within neighborhoods and that is also compatible with the character of the surrounding neighborhood. e. Policy L.P.4.5 of the Land Use Element calls for maintaining the Town's capacity to meet its housing needs as identified in the Housing Element, f. Goal H.G. L l of the Housing Element calls for expanding the choice of housing opportunities for all economic segments of the community through a variety of housing types and sizes, including a mixture of ownership and rental housing. g. Policy H.P.1.1 - Continue to designate sufficient residentially zoned land at appropriate densities to provide adequate sites to meet Los Gatos' new construction need for 2002-2007. h. Strategy H.I.1.1 - The Town will ensure that there is sufficient land available at appropriate zoning categories to meet its need for very low and moderate income households. i. Strategy H.I.13 of the Housing Element states the following: Development Standards: Continue to review and, where feasible, reduce development standards (e.g. parking requirements, open space requirements, etc.) for housing developments that will guarantee affordable units on a long-term basis for low and moderate-income households, j. Strategy H.I.1.7 - A finding that the proposed development is consistent with the Housing Element and addresses the Town's housing needs identified in the Housing Element must be made. Planning Commission Staff Report - Page 7 347 Massol Avenue April 23, 2008 k. Policy H.P.3.1 of the Housing Element states the following: Support preservation and conservation of existing housing units that provide affordable housing opportunities for Town residents and workers and strive to ensure that at least 30% of the housing stock are rental units. 1. Strategy H.1.3.3 of the Housing Element states the following: Rental Housing Conservation Program: The Town's existing multi-family, privately owned rental units provide housing opportunities for households of varied income levels. The Town will continue to implement Section 29.20.155 of the Zoning Ordinance that addresses conversions of residential use, Specifically, Section 29.20.155(a)(2) that requires that any proposed conversion satisfy the housing goals and policies as set forth in the General Plan. CONCLUSION: Staff has carefully considered the Town Code requirements, applicable General Plan goal, policies, and strategies, as well as, comments made by the applicant and Town Committees. Based on the above information and the applicant's proposal, staff has made the following conclusion about the project: - = The Commission must recommend denial of the proposed General Plan Amendment and Zone Change because the project does not meet the BMP requirements. This conclusion is based on staff s determination that the Commission does not have the authority to approve projects, including Planned Developments, that do not meet the BMP requirements of the Town Code or make policy decisions regarding the BMP Guidelines relating to sales price. Additionally, staff wanted to express a concern relating to condominium conversions in general. Historically, condominium conversion applications have not been submitted because existing conditions precluded property owners from meeting one or more of the following Town Code requirements: • Providing required parking; • Providing required private open space; • Meeting existing density requirements; and/or • Providing required BMP units. Staff has had conversations with other apartment complex owners in Town who are awaiting the outcome of this proposal. If this application is ultimately approved by the Town Council staff expects additional condominium conversion applications will be filed. As previously mentioned, staff has prepared Exhibit 7 illustrating areas of Town which currently contain apartments. Planning Commission Staff Report - Page 8 347 Massol Avenue April 23, 2008 RECOMMENDATION: If the Planning Commission concurs with staff's summary above, the Commission should recommend denial of the proposed General Plan amendment and zone change. If the Commission decides to recommend denial of the applications, the Commission should provide input on the following issues as this will be helpful to the Council as this project moves forward: 1. The proposed number of parking spaces; 2. The proposed private open space; 3. The proposed number and sales price of BMP units; 4. Loss of rental units; and 5. Potential impacts of future applications for condominium conversions. As an alternative to the recommendation above, the Commission could recommend approval of the proposed General Plan amendment and zone change. If the Commission decides to recommend approval Condition #2 and #3 of Exhibit 3 would need to be modified to read: 2. BELOW MARKET PRICE (BMP) UNITS: Eight (8) BMP units must be provided as part of the approved development plan per,, Town Code Section 29.10.3025 and 29.10.3030. The applicant shall meet with the Director of Community Services prior to the issuance of any permits or the recordation of the final subdivision map to commence the BMP process for the units. 3. DEED RESTRICTION. Prior to issuance of a building permit or recordation of the final subdivision map, a deed restriction shall be recorded by the applicant with the Santa Clara County Recorder's office, stating that the required BMP units must be sold as a below market priced units pursuant to the Town's BMP Guidelines. Pfepared by: /Joel Paulson, Associate Planner L Approved by: Bud N, Lortz, Director of Community Development BNL: JP cc: Lyon Realty Advisors, Attn: Ron Cole, 4901 Birch St., Newport Beach, CA 92660 Lyon Baytree Apartments, LLC, 4901 Birch St,, Newport Beach, CA 92660 N;IDEV\ EPORTS12 0 0 813 4 7Massol,doe 347 Massol Avenue EXHIBIT 1 REQUIRED FINDINGS FOR 347 Massol Avenue General Plan Amendment GP-08-01 Planned Development Application PD-0702 Requesting approval of a General Plan amendment from Medium Density Residential (5-12 dwelling units per acre) to High Density Residential (12-20 units per acre) and a zone change from RM:5-12 to RM:12-20:PD for a fifty-six lot residential subdivision to convert the existing apartments to condominiums. APN 510-14-004 PROPERTY OWNER: Lyon Baytree Apartments LLC APPLICANT: Lyon Realty Advisors FINDINGS ■ All General Plan Amendments must be found to be internally consistent with the General Plan. ■ That the zone change is consistent with the General Plan. ■ That the work proposed is consistent with the Redevelopment Plan for the Los Gatos Redevelopment Project Area (Section IV.B). NADEVIFINDINGS1347Masso1. doe EXHIBIT 2 CONDITIONS OF APPROVAL 347 Massol Avenue General Plan Amendment GP-08-01 Planned Development Application PD-07-02 Requesting approval of a General Plan amendment from Medium Density Residential (5-12 dwelling units per acre) to High Density Residential (12-20 units per acre) and a zone change from RM:5-12 to RM:12-20:PD for a fifty-six lot residential subdivision to convert the existing apartments to condominiums. APN 510-14-004 PROPERTY OWNER: Lyon Baytree Apartments LLC APPLICANT: Lyon Realty Advisors TO THE SATISFACTION OF THE DIRECTOR OF COMMUNITY DEVELOPMENT: (Planning Division) 1. APPROVAL: This application shall be completed in accordance with all of the conditions of approval listed below and in substantial compliance with the plans approved and noted as Attachment ? of the report to the Town Council for the 2008 meeting. Any changes or modifications made to the approved plans shall be approved by the Director of Community Development, Development Review Committee, Planning Commission or the Town Council, depending on the scope of the change(s);. 2. BELOW MARKET PRICE (BMP) UNITS: Three (3) BMP units will be provided as part of the approved development plan per Town Code Section 29.10.3025 and 29.10.3030. The applicant shall meet with the Director of Community Services prior to the issuance of any permits or the recordation of the final subdivision map to commence the BMP process for the units. 3. DEED RESTRICTION. Prior to issuance of a building permit or recordation of the final subdivision map, a deed restriction shall be recorded by the applicant with the Santa Clara County Recorder's office, stating that the required BMP units must be sold as a below market priced units pursuant to the Town's BMP Guidelines. 4. ARCHITECTURE AND SITE REQUIRED: An Architecture and Site application and approval is required for the facade improvements. The Development Review Committee may be the deciding body for the Architecture and Site applications. 5. SUBDIVISION REQUIRED: A tentative map application shall be approved prior to the submittal of building permits. The Development Review Committee may be the deciding body for the tentative map. 6. COMPLIANCE MEMORANDUM: A memorandrun shall be prepared and submitted with the building permit and/or final subdivision map detailing how the Conditions of Approval will be addressed. (Building Division) 7. PERMITS REQUIRED: A building permit shall be required for exterior facade improvements and parking lot modifications. Separate building permits are required for site retaining walls, water tanks, and swimming pools; separate electrical, mechanical, and plumbing permits shall be required as necessary. 8. CONDITIONS OF APPROVAL: The Conditions of Approval must be blue-lined in full on the EXHIBIT 3 347 Massol Avenue / GP-08-01 and PD-07-02 04/11/2008 Page 2of3 cover sheet of the construction plans. 9. SIZE OF PLANS: Four sets of construction plans, maximum size 24" x 36. 10. STREET NAMES & HOUSE NUMBERS: Submit requests for new unit numbers from the Building Division prior to the building permit application process. 11. TITLE 24 ENERGY COMPLIANCE: California Title 24 Energy Compliance forms CF-1R and MF-1R must be blue-lined on the plans. 12. SPECIAL INSPECTIONS: When a special inspection is required by UBC Section 1701, the architect or engineer of record shall prepare an inspection program that shall be submitted to the Building Official for approval prior to issuance of the building permit. The Town Special' Inspection form must be completely filled-out, signed by all requested parties and be blue- lined on the construction plans. Special Inspection forms are available from the Building Division Service Counter or online at www.losgatosca.gov. 13. NONPOINT SOURCE POLLUTION STANDARDS: The Town standard Santa Clara Valley Nonpoint Source Pollution Control Program shall be part of the plan submittal as the second page. The specification sheet is available at the Building Division Service Counter for a fee of $2 or at San Jose Blue Print. 14. PLANS: The construction plans shall be prepared under the direct supervision of a licensed architect or engipe.er.,(Business.and. Professionals Code Section 5538) 15. APPROVALS REQUIRED: The projectrequires the following agencies approval before issuing ' - a building permit:' 1. Community Development: Joel Paulson at 354.6879 2. Engineering Department: Fletcher Parsons at 395-3460 3. Santa Clara County Fire Department: (408) 378-4010 4. West Valley Sanitation District: (408) 378-2407 5. Local School District: (Contact the Town Building Service Counter for the appropriate school district and to obtain the school form.) TO THE SATISFACTION OF THE DIRECTOR OF PARKS AND PUBLIC WORKS: (Engineering Division) 16. FINAL MAP. A final map shall be recorded. Two copies of the final map shall be submitted to the Engineering Division of the Parks & Public Works Department for review and approval. Submittal shall include closure calculations, title reports and appropriate fee. The map shall be recorded before any permits are issued. 17. DEVELOPMENT AGREEMENT. The Applicant shall enter an agreement to construct public improvements in accordance with Town Code §24.40.020. 18. UTILITY COMPANY REVIEW. Letters from the electric, telephone, cable, and trash companies indicating that the proposed improvements and easements are acceptable shall be provided prior to recordation of the final map. 19. PUBLIC IMPROVEMENTS. The following improvements shall be installed by the developer. Plans for those improvements shall be prepared by a California registered civil engineer, reviewed and approved by the Town, and guaranteed by contract, Faithful 347 Massol Avenue / GP-08-01 and PD-07-02 04/1.1/2008 Page 3 of 3 Performance Security and Labor & Materials Security before the issuance of a building permit or the recordation of a map. The improvements must be completed and accepted by the Town before a Certificate of Occupancy for any new building can be issued. a. Massol Ave - Curb, gutter, sidewalk, street lights, tie-in paving, signing, striping, storm drainage and sanitary sewers, as required. 20. GENERAL. All public improvements shall be made according to the latest adopted Town Standard Drawings and the Town Standard Specifications. All work shall conform to the applicable Town ordinances. The adjacent public right-of-way shall be kept clear of all job related dirt and debris at the end of the day. Dirt and debris shall not be washed into storm drainage facilities. The storing of goods and materials on the sidewalk and/or the street will not be allowed unless a special permit is issued. The developer's representative in charge shall be at the job site during all working hours. Failure to maintain the public right-of-way according to this condition may result in the Town performing the required maintenance at the developer's expense. 21. ENCROACHMENT PERMIT. All work in the public right-of-way will require a Construction Encroachment Permit. All work over $5,000 will require construction security. 22. PUBLIC WORKS INSPECTIONS. The-developer or his representative shall notify the Engineering Inspector at least twenty-four (24) hours before starting any work pertaining to on-site drainage facilities, grading or paving, and all work in the Town's right-of-way. Failure to do so will result in rejection of work that went on without inspection. 23. RESTORATION OF PUBLIC IMPROVEMENTS. The developer shall repair or replace all existing improvements not designated for removal that are damaged or removed because of developer's operations. Improvements such as, but not limited to: curbs, gutters, sidewalks, driveways, signs, pavements, raised pavement markers, thermoplastic pavement markings, etc. shall be repaired and replaced to a condition equal to or better than the original condition. Existing improvement to be repaired or replaced shall be at the direction of the Engineering Construction Inspector, and shall comply with all Title 24 Disabled Access provisions. Developer shall request a walk-through with the Engineering Construction Inspector before the start of construction to verify existing conditions. 24. CC&R'S. A copy of the CC&R's shall be submitted for review and approval by the Town Attorney and Planning Division prior to map recordation. N:1DEVICONDITNS1200 81347Massol. doe ~ - LYON LYON REALTY ADVISORS, INC. 4901 BIRCH STREET, NEWPORT BEACH, CA 92660 (949) 252-9101, FAX (949) 252-9202 September 28, 2006 RECEIVED Mr. Bud Lortz SEP 2 9 2006 Community Development Director TOWN OF LOS GATOS Town of Los Gatos PLANNING DIVISION 110 E. Main St. Los Gatos, CA 95032 Re: Description of the Bay Tree Condominium Project and Letter of Justification Dear Mr. Lortz: Thank you for the opportunity to present our application and plans for the conversion of the Bay Tree Apartments to condominiums. This letter will serve as a response to the requirements for a Description of Proposed Project, Letter of Justification and to address any other questions regarding the project's benefits to the Town and its residents. Description of Prooosed Proiect: Lyon Baytree Apartments, LLC, the property owner, is proposing to convert the.existing 56 apartments at the Bay Tree Apartments to 56 for-sale condominiums. As part of the conversion, the owner is prepared to significantly upgrade the exterior elevation facing Massol Avenue to make the property's design consistent with the Almond Grove Historic District. In addition, the owner will work with the Town to address specific areas -identified to obtain approval of the Planned Development and Tentative Map applications. Letter of Justification: This section will address the history of the property, compliance with the Town's General Plan and the conversion's benefits to the residents and greater community. History of Bay Tree Apartments: Approved in 1959 and constructed in 1960, Bay Tree Apartments resides in the Almond Grove Historic District in the Town of Los Gatos. It has operated as an apartment project since inception. Lyon Baytree Apartments, LLC purchased the property in June 2005 as part of a larger portfolio acquisition from the Gibson Speno Company. Since the acquisition, Lyon has implemented a renovation strategy which includes significantly improving the interiors of the units with quality finishes ranging from cherry wood cabinetry to stainless steel appliances. To date, approximately twenty (20) of the fifty-six (56) units have been completed. MULTI-FAMILY REAL ESTATE SPECIALISTS EXRTBTT 4 LYON REALTY ADVISORS, ]NC 4901 BIRCH STREET, NEWPORT BEACH, CA 92660 (949) 2529101, FAX (949) 252-9202 General Plan Compliance: Section Subsection Topic Bay Tree/Lyon Com [lance ffi., A t Land Use Density designation - Medium Density Under current zoning, the 2.4.1 Residential - 5-12 units per acre property is 6ver density. 32 units are allowed, 56 units exist. Land Use To preserve, promote, and protect the Goal LG existing small town character and 1.1 quality of life within Los Gatos. Policies Development shall be of high quality Lyon will update the LP 1.1 design and construction, a positive exterior fagade to better addition to and compatible with the match quality and feel of Town's ambiance. Development shall the Almond Grove Historic enhance the character and unique District. identity of existing commercial and/or residential neighborhoods. Policies Encourage developers to engage in Lyon engaged the LP 1.2 early discussions regarding the nature staff/Town by requesting and scope of the project and possible a preliminary review - Impacts and mitigation requirements. 6114146 and a CDAC These discussions should, occur as meeting on 8119106,- early as possible in the project where we requested planning stage, preferably preceding feedback on our proposal. land acquisition. In addition, Lyon representatives met with a sample of 9 residents to discuss the conversion. They were all very supportive and registered interest in potentially purchasing a unit. Implementation Traffic Impact Policy: Review Per e-mail from Asst. LI 1.5 development applications for Comm. Dev. Director consistency with the required findings Randy Tsuda, do traffic for Traffic Impact Policy, report or mitigation fee is required. Land Use To preserve the quality of the No reduction in private or Goal LG personal open space (yards) community open space 2.3 throughout the town. with conversion. Policies Maximize quality usable open space No reduction in private or LP2.5 in all new developments community open space with conversion. Land Use To preserve and enhance existing Goal LG community and neighborhood 4.1 character and sense of lace. MULTI-FAMILY REAL ESTATE SPECIALISTS LyoN LYON REALTY ADVISORS, Ica 4901 BIRCH STREET, NEWPORT BEACH, CA 92660 (949) 252-9101, FAX (949) 252-9202 Policies Maintain the Town's capacity to meet The conversion will not LP 4.5 its housing needs as identified in the negatively impact the Housing Element. Town's ability to meet its stated rental stock of 30%. The town is collecting business license tax on approximately 33% of the total housing units - 4,261 of just under 13,000 dwellings. With the addition of the Sobrato project of 290 units, the Town's rental stock increases to 35%. Land Use To maintain a balanced, economically Goal LG stable community with in 5.2 environmental goals. Policies Only allow land uses for which public The approval of this LP 5.7 costs can be justified by overall application delivers 56 community benefit. additional units of "Practical Affordable" = - homes to. thin residents of the Town of Los Gatos. Housing Expand the choice of housing Conversion will add to the HG 1.1 opportunities for all economic "Practical Affordable" segments of the community through a ownership mix, meaning variety of housing types and sizes, lower cost for-sale including a mixture of ownership and housing, in the area. rental housing. Policies Develop and utilize all available Lyon will work with HP 1.3 funding resources in order to provide Housing Department to the maximum amount of affordable provide a mutually housing as feasible, beneficial solution. Implementation Development Standards: Continue to Lyon will work with HI 1.3 review and, where feasible, reduce Housing Department to development standards (e.g. parking provide a mutually requirements, open space beneficial solution. requirements, etc.) for housing developments that will guarantee affordable units on a long-term basis for low and moderate-income households. MULTI-FAMILY REAL ESTATE SPECIALISTS 2 LYON REALTY ADVISORS, INC. 4961 BIRCH STREET, NEWPORT BEACH, CA 92664 (949) 252-9101, FAX (949) 252-9242 Policies Support preservation and Lyon will work with HP3.1 conservation of existing housing units ;-lousing Department to that provide affordable housing provide a mutually opportunities for Town residents and beneficial solution. workers and strive to ensure that at Housing mix will still meet least 30%4 of the housing stock is Town goals. rental units. Implementation Rental Housing. Conservation Lyon will work with HI 3.3 Program: The Town's existing Housing Department to multifamily, privately owned rental provide a mutually units provide housing opportunities for beneficial solution. households of varied income levels. The Town will continue to implement Section 29.20.155 of the Zoning Ordinance that addresses conversions of residential use, Specifically, Section 29.20.155(a)(2) that requires that any proposed conversion satisfy the housing goals and policies as set forth in the General Plan. Community Design CDG 1.1 To preserve and enhance the Town'su character through exceptional community design. Policies Multiple family residential Existing common space is CDP 1.20 developments shall include common suitable for group open space suitable for group gathering. The property gathering. offers a garden-style environment with more than 50% of the land area dedicated to open space (non-paved, non-built area Policies All residential developments shall No reduction in private or CDP.1.21 Include privately owned open space in community open space proportion to the building size. with conversion. MULTI-FAMILY REAL ESTATE SPECIALISTS 1l 1 LYON LYON REALTY ADVISORS, INC. 4901 BIRCH STREET, NEWPORT BEACH, CA 92660 (949) 252-9101, FAX (949) 252-9202 Community Benefits, The following information outlines the benefits to both the Town and its residents: • Dramatic architectural improvements compatible with the surrounding Almond Grove Historic District. - The owner plans to invest over $3.3 Million by extensively renovating the exterior fapade of the property facing Massol Avenue and carrying the design queues throughout the property. Improvements also include significantly upgrading the interiors of the units as detailed by the attached photographs. • Increased "Practical Affordable" home ownership opportunities - Based on figures gather by Coldwell Banker Los Gatos, the average condominium price in Los Gatos is in excess of $650,000, roughly half the cost of a single family home ($1.32 Million) in the Town. Many of those who grew up in the Town would like to purchase in the area but are unable due to the lack of "Practical Affordable" homes in the area. An increase in the stock of these lower priced homes will assist those who want to continue thpir.roats in the area. Empty Nesters - Many long-time residents have expressed their desire to downsize on their homes due to their changing needs. Many of them no longer need larger homes because their children have grown and moved out. Purchasing a High-quality condominium home like that at the Bay Tree will facilitate a lower maintenance life-style, help fund retirement with the equity from their previous home and remain a member of the Los Gatos community. • Customized Resident Assistance Programs to mitigate conversion impacts. • More off-street parking spaces near the downtown. The added value created with the condominium conversion approval will help fund the addition of a number of new parking spaces on the property. This is the only way it will be feasible to significantly increase the number of existing parking spaces. • A healthy period of renewal as residents increase their stakes in the community. MULTI-FAMILY REAL ESTATE SPECIALISTS 6~ LYON REALTY ADVISORS, INC. 4901 BIRCH STREET, NEWPORT BEACH, CA 92660 (949) 252-9101, FAX (949) 252-9202 CDAC areas of focus: The owner met with the CDAC on August 19, 2005. The following items were discussed at the meeting. Parking. The apartment project was approved in the late 1950's with 56 parking spaces and has operated with that number to the present. The parking has been adequate on a performance basis historically. The current condominium conversion ordinance requires that the parking be increased to 168 spaces. This is infeasible considering the size and density of the property. However, the owner is optimistic that it can add an additional 36 parking .spaces, some of which will require a parking development standards variance from the building department. See Attachment A for a site plan of the newly proposed spaces. This 64% increase in parking will substantially enhance the parking at the property, especially considering the following: 1. The study by the Institute of Traffic Engineers confirming that condominiums generate lower parking volumes than similar apartment developments. 2. 'The attached memo from Randy Tsuda also confirms that lower traffic volumes are expected as a result of the conversion. (Attachment 13), Density: The property is currently zoned RM 5-12 but was approved under different zoning requirements in the late 1950's. The owner requests that the project be approved with the existing number of units of 56. The approval will provide high quality condominiums at a price point needed in the community. Private Open Space: Requirement; 200 square feet for ground floor units and 120 square feet for balconies. The property is virtually compliant with the Town's requirement for Private Open Space. 5 of the 56 units are shy of the requirement by less than 4 square feet. The remaining 51 units are significantly over the Town's requirements. The total square footage of Private Open Space required at the Bay Tree is 8,960 SF. The actual square footage provided is 14,853, 166% of what is required. The full measurement analysis is provided as an attachment to this letter. (Attachment C) MULTI-FAMILY REAL ESTATE SPECIALISTS Q LYON REALTY ADVISORS,. INC. 4901 BIRCH STREET, NEWPORT BEACH, CA 92664 (949) 252-9101, FAX (949) 252-9202 Architectural Enhancement: The owner is prepared to significantly improve the property facing Massol Avenue to make the architecture consistent with the Almond Grove Historic District, The members of the CDAC, in varying degrees, discussed the need for °360 degree" improvements to the property. It will be financially impossible for the developer to redesign the entire property and maintain the projected price of - - -the condami-nium-units-as"Practically-Affordable However-~i.t-is-possible-to--.- carry the design theme throughout with paint and select design queues. The renovation is expected to cost the owner in excess of $3.3 Million. Resident Assistance Programs: The owner is prepared to provide special class residents (elderly, handicapped, etc.) with relocation and homeowner assistance programs to ensure a smooth transition. Enclosed is a Relocation Assistance and Homeowners Assistance program that the owner would like the Town to consider. (Attachment D) Conclusion: The William Lyon Companies have a long history of building and providing quality homes . in California. Over the past 50 years, Lyon has worked hard to foster a reputation of commitment and`service to our residents and home buyers. Wewill continue to strive to maintain this reputation as we work with the Town of Los Gatos, the current residents and the community at large to matte this proposed project a huge success in everyone's eyes. Sincerely, Ron W. Cole Lyon Realty Advisors MULTI-FAMILY REAL ESTATE SPECIALISTS -Attachment A i mJ ` to I \ C97 r^--- cY I ' '.{S y Q I l ''I 1 POOL ( I ` ~ G I s` OIL ING g gU1LD NG 1 I MASSOL AVENUE 56 EXISTING SPACES 36 NEW SPACES SHOWN SHADED a sa 60 90 THE BAY TREE SITE PLAN- PROPOSED 347 MASSOL AVENUE LOS CATC}S, CA 95030 Attachment B Fr..rp;. l altd i 7 udo [f Tsucfa(0 sOatosoa,0ovi :seat: T'Uesei,iy, June 20, 2006 x:0;60 AM TO, ROR C- ale: :§.0.0 6t,. 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CJ ea]y p p - a7 2 d O - Q O a C) c) d O c) O La O O N Q - O O 4 O O N _ Ili in Lo t' 13eiv c) C? ca (D N C) O a O °0 O 4 O 0 °o p o q m f~ - 7 N h 0 E eeiv co LO N Y =F F~ 0 cc? N -,t 4 d o 4- m w N 0 N dt V [D N m N m N - d w r W Iti a O 0 U) P'llowl eBJy I" ll M [1!) q C - J •r a N ° Oi O d' Cr) al -t N z oNO. h cNY7 N h ~ a0 N N o h ~ ~ a N f~ m 0q of co N ao V N N co N oo O N =sFF C Q b eaJy 1 C> LO -;77 CD M N (o ~O 0 n7 a) N a~ J Lo 11% 1 w N N ' N N N N N 4 N L N 6 - puz Jo Is ~ Joo[ j {f t C o a a a n N N V - - a G c ~~-T N N N a N ) 3 w AUOO1e81oi}ed W M. KIM- co W m W a W o W m W p - s _a'z= ~a- - ' C) n W p-- _ a l 1.u(1 N o N n :u-.TTY Q p : . ~ 1 - o o o C7 ~tl m 5 O `nr.;vg .w~ Cl) c+7 m Attachment D Attached are Relocation and Homeowners Assistance Programs that the owner is proposing as the basis for an agreement with the Town of Los Gatos. This proposal is based on a successful program that Tryon utilized in previous conversions. Proposed Relocation Program: Qualified Residents is defined as a resident who resided in a unit at the time of receipt of the 180 Day Notice of Intent to Convert, pursuant to the provisions of Section 66427.1 of the Government Code. To assist in the relocation process for all Qualified Residents, the Owner shall engage an individual or firm to act in the capacity of "Relocation Coordinator." The Relocation Coordinator shall be the primary coordination and referral point for all Qualified Residents during all phases of the relocation process. The Relocation Coordinator shall survey all Qualified Residents to determine potential eligibility for relocation assistance and to determine if the resident meets the Extreme Hardship Designation under Section 1 of this proposal outlined below. The Relocation.Qoordiriator:shajl develop an Individual Relocation Plan, including any related recommendations for any household that meets one or more criteria in Section 1. All Extreme Hardship household's Relocation Plan findings and recommendations shall be provided to the City's Housing and Property Manager within 45 days prior to the marketing of any unit(s). The Developer shall ensure that the Relocation Coordinator complies with the following: 1. During the initial survey/interviewing process, the Relocation Coordinator shall determine whether Qualified Residents meet one or more of the Extreme Hardship Criteria defined below: • Elderly Households over 62 years and tenancy -for five or more years, or elderly tenants 70 years or older who cannot physically prepare for a move; • Disabled Households with a disabled household member, as defined under the Social Security Act, and who cannot physically prepare for a move • Low-income Households Households earning under 80% of Median Income as determined by income limits as determined by the State of California Housing Department, with tenancy for five or more years, and unable to reasonably locate replacement housing. 2. Moving expenses, to be paid by the Developer, for the Extreme Hardship households shall include: • Boxes from the movers for household belongings • Actual cost of moving belongings to a location less than 10 miles from the Bay Tree Apartments • Any security deposits, not covered by any other agency • Packing expenses, if necessary 3. The Developer shall provide notice to prospective residents that move to the project that a condominium conversion is underway. This notice shall also be provided to the residents, in writing, at the time a rental agreement or lease is signed. Under Government Code Section 66452.8, any resident that does not receive the notice at such time and who does not purchase their unit, shall be entitled to an amount equal to the sum of the following; . • Actual moving expenses incurred when moving from the subject ; site, not to exceed $500. • A portion of the first month's rent on the tenant's new rental unit, if any, immediately after moving from the subject property, but not to exceed $500. Proposed Homeowners Assistance Program For the purposes of this program, a Qualified Resident is defined as that resident who resided in the Project unit at the time of receipt of a 180 Day Notice of Intent to Convert prior to termination of tenancy, pursuant to the provisions of Section 66427.1 of the Government Code. 1. 90 Day Right of First Refusal to Purchase: Pursuant to Government Code 66427.9 and for a period of 90 days form the issuance of a Final Subdivision Public Report under Section 11018.2 of the Business and Professions Code, Developer will provide all residents with a Right of First Refusal to purchase their unit. All Qualified Residents shall be given notice of receipt of the Final Subdivision Report within ten (10) days of receipt of such report, as provided by the relevant provisions of the cited code sections. All resident's right to purchase will be at the price units are first offered for sale to the general public. Additionally, the provisions of .Government Code 66459 of the Subdivision Map Act shall also apply and tenants occupying a rental unit following Final Map approval for the condominium project shall receive notice and be given a Right of First Refusal to purchase the unit as specified in Section 66459, -.2.. Qualified _-Resident Purchasd:' :D1s.caunt Program: All Qualified Residents desiring to purchase their Project unit will receive a discount equal to three percent (3%) of the price at which their unit is first offered for sale to the general public. The price is established by the Developer for each individual unit plus adjustments based on each unit's views, location and amenities. 3. Loan Pre-Screening and Qualification: At Developer's expense, Developer will engage a "Homeownership Coordinator" to provide loan pre-screening and loan qualification services for residents wishing to purchase their unit. The Homeownership Coordinator shall also screen applicants for income and household size qualifications for the Affordable Housing Units. 4. Homeownership Counseling: The Homeownership Coordinator shall provide counseling to residents desiring to purchase their unit or any other unit in the Project. The Homeownership Counselor shall also refer current residents who wish to purchase their units to the City's Down Payment Assistance Program, debt counseling services, lender services, and other current services and programs to maximize the potential for homeownership for all current residents. 5. Reduced Escrow Costs: A single Title Company will be used by the Developer for market rate units to provide reduced escrow fees to current qualified residents purchasing units. 6. Reduced Loan Fees and Charges: shall refer all pre-qualified residents to origination fees, reduced interest rates, other special incentives for financing. The Homeownership Counselor lenders that offer reduced loan mortgage credit certificates or 7. Phase One Pricing: Any Qualified Resident will have the right to purchase a for sale Project unit at Phase One.Pricing, regardless of the phase in which the unit is located. Phase one pricing will be those List Prices initially established and published by the Developer for each type of market rate unit in the first phase of Project units to be released for sale at the Project. This benefit will enable Qualified Residents currently living in areas of the Project scheduled to be sold in later phases to avoid paying higher prices due to demand driven inflation LYON CAPITAL VENTURES BAY TREE PROPOSAL SUMMARY Planning Commission Hearing - April 23, 2008 Background: The applicant first approached the Town regarding the condominium conversion in September 2005. With subsequent meetings ranging from meetings with the CDAC, Town Staff, Town housing consultant, Seifel Consulting, GPAC and multiple appointments with the past and current Town Manager, Lyon has demonstrated their willingness to work collaboratively with the Town to draft a mutually beneficial proposal. A iicant re nest: Applicant requests the approval of a Planned Development Permit, Tentative Map and General Plan Amendment. Given the amount of time that Lyon has committed to the Planning Process, and to ensure that we can keep this project moving forward, if the Planning Commission cannot move to recommend approval of the General Plan Amendment/Zone Change to the Town Council, the applicant respectfully requests that the Planning Commission recommend denial of our application request, without prejudice, so that Lyon may appeal to the Town Council whereby the "policy" implications of this project can be fully considered. Considerations: 1. General Plan: All but one of the Town's General Plan requirements is currently met. The one exception is the site's existing density. Under the property's current zoning (medium density residential [RM 5:12]), the existing site is 16 units over the maximum allowed when utilizing the density bonus granted in the BMP code. No change to the existing number of dwelling units is proposed, however, a General Plan Amendment is proposed to accommodate the site's density under the current General Plan and Zoning Code. If the General Plan Amendment is property is modified to High Density full compliance with the General Plan. approved and the zoning for the Residential, the project would be in EXHIBIT LYON CAPITAL VENTURES 2. Affordable housing. Eight BMP units are offered as part of this proposal. As you can see, the proposed prices are higher than the guidelines outlined in the Town's Below Market Price Housing Program. The estimated sales prices are based on today's market. The guideline pricing adopted by the Town is significantly below market. To comply completely with the current code would cost the applicant $3.2M and render the condominium conversion financially infeasible. . .h Lirn~~ a ao e t eY~nce ~i ~ r { 3 - ~ r i t ~A,~] 1 ~cQ. , V S 5 ~ ! ~ ~ ~ ~ 3-V~ R u " ~ ft i i die s _ C '.t +ft _ , • _d~~~Y Y 1 1 Bed/ 1 Bath 782 $535,670 $168,963 $366,707 $369,950 $165,720 2 1 Bed/ 1 Bath 782 $535,670 $233,975 $301,695 $369,950 $165,720 3 2 Bed / 2 Bath 1011 $630,864 $193,113 $437,751 $490,950 $139,914 4 2 Bed 12 Bath 1011 $630,864 $267,400 $363,464 $490,950 $139,914 5 2 Bed / 2 Bath 1052 $649,084 $267,400 $381,684 $515,950 $133,134 6 2 Bed / 2 Bath 1106 1663,600 1193,113 1470,487 $535,950 1127,650 7 2 Bed/ 2 Bath 1114 $673,970 $267,400 $406,570 $549,950 $124,020 8 2 Bed / 2 Bath 1114 $673,970 $193,113 $480,857 $549,950 $124,020 Total Cost to Applicant $3,209,215 $1,120,092 As you can see, under the proposal, the financial impact to the applicant is $1.12M. Earlier in our discussions with the Town, Lyon offered to contribute the amount as an in-lieu fee to the affordable housing fund. However, the Planning staff and the Town Manager expressly communicated that the town is in greater need of actual BMP housing units given the shortage of available housing sites within the Town. Thus, Lyon proposes to contribute 8 BMP units into the Town's long-term affordable housing stock as part of the overall project. Considering that the median sales price for condominiums/town homes is $821k (base on a 5 month average ending January 31, 2008), the proposed BMP prices are significantly discounted off the market average. 3. Parkin : The apartment project was approved in the late 1950's with 56 parking spaces and has operated with that number to the present. The current condominium conversion ordinance requires that the parking be increased to 168 spaces. Historically, parking has been adequate on a performance basis. The Town's traffic engineer has also determined that no traffic study or traffic mitigation fees are necessary. Based on his trip generation analysis, traffic will likely decrease with implementation of the condominium conversion. See Attachment A. LYON CAPITAL VENTURES While it is infeasible to meet the current code (due to site topography, changes in parking width requirements, back-up distances, and roadway widths, etc.), the applicant has prepared a parking plan that would add up to 36 (64% increase) parking spaces, some of which will require a parking development standards variance from the building department for the reasons noted above. See Attachment B. 4. Neiahborhood compatibility: a) The architectural design of the existing buildings is not consistent with the rest of the homes in the Almond Grove Historic District. As part of the application, the owner will invest significant capital to dramatically renovate the exterior facade of the development, and add site amenities such as increased parking, recreation areas and landscaping commensurate with the historic context of the surrounding neighborhood. Please see Gary Schloh's design concept on Attachment C. b) The current use as a rental project is not consistent with the surrounding area. Bay Tree is the only apartment development with frontage on a main street in the historic district. Most apartments are set back from the street. Though the proposed project would not modify the frontage or setbacks, it would transition the units from rental to owner-occupied in keeping with the owner-occupied context of the historic district. As such, the proposed conversion would bring the use in line with its surrounding area. 5. Private Open Space: Current code requires 200 square feet for ground floor units and 120 square feet for balconies. The property is generally in compliance with the Town's requirement for Private Open Space. 5 of the 56 units are shy of the requirement by less than 4 square feet. The remaining 51 units are significantly over the Town's requirements. The total square footage of Private Open Space required at the Bay Tree is 8,960 SF. The actual square footage provided is 14,853, an increase of 5,893 SF or 166% of what is required. Page 1 of 1 Ron Cole From: Randal Tsuda [RTsuda@losgatosca.gov] Sent: Tuesday, June 20, 2006 10:50 AM To: Ron Cole Subject: Re: Bay Tree Hi Ron: Our traffic engineer reviewed the trip generation rates between apartments and condortrinimtims. The traffic data indicates that the traffic levels for your property may actually drop with a conversion. Given this, no traffic report or traffic mitigation fees would be required. Randy Randy Tsuda Town of Los Gatos Assistant Community Development Director 408.354.6806 Phone 408.354.7593 Fax rtsuda cc,losgtttosca.gov "Ron Cole" <roncole @Lyon l .cona> 06/14/2006 4:54:18 PM Randy, h was good meeting with you today, Thanks for the time and guidance, Per your request, the trait mix is: 15 One-bedroom units 41 Two-bedroom units Ron Ron Cole Lyon Apartment Companies Acquisitions Development Management 4901 Birch St. Newport Beach, CA 92660 Direct Dial: (949) 838-1221 Direct Fax: (949) 838-9202 rnailto;roncole Nlyon Lcom lrttp;/lww~v.ly. c~t~al~artments.coiiz Sent from niy BlackBer y Wireless Handheld 7!612006 LYON r A DITA T V LIN I U =i Attachment B r r I rw II L UIL LNG g ~1110 ' I aii EXMING WAC:ES - - - - - 16 NEW SRAC<ES SHOWN SHAVED N _ '0 A7 ~9 ME BAY TREE SITE PLAN- PROPOSE-0 347MASSOL AVENUE ,M GATOS, CAQSM on Attachment C Before: After: LYON CAPITAL VENTURES TOWN OF LOS GATES 110 East Main ,Street, Los GATES, CA 95032 (408) 354.6872 SUMMARY OF DISCUSSION OF A REGULAR MEETING OF THE CONCEPTUAL DEVELOPMENT ADVISORY COMMITTEE OF THE TOWN OF LOS GATES FOR AUGUST 9, 2006 HELD IN THE TOWN COUNCIL CHAMBERS, CIVIC CENTER, 110 EAST MAIN STREET, LOS _GATES, CALIFORNIA. The meeting'was called to order at 4:30 P.M. ATTENDANCE Members Present: Absences: Diane McNutt Stephen M. Rice Joe Pirzynski Lee Quintana Joanne Talesfore Staff Present: Bud N. Lortz, Director of. Community Development; Randy Tsuda, Assistant Community Development Director and Joel Paulson. Associate Planner. VERRAL..COMMUNICATIONS: Ray Davis: Commented he is protesting the Swanson Ford item and he does not support the proposed project. '11'EM 1: 347 Massol Avenue Conceptual Development Application CD-06-11 Requesting preliminary review of plans to change the .zoning of 2.5 acres from RM:5-12 to RM:5-12:PD to convert an-existing apartment complex into condominiums, APN 51.0-14-004. PROPERTY OWNER: Lyon Baytree Apartments, LLC APPLICANT: Ron Cole Committee Comments- 1. Information will need to be provided regarding the percentage of rental versus ownership housing to ensure compliance with the General Plan. 2. Loss of apartments may be a concern because there may not be many new apartment projects in the near future. 3. Concerned that only the Massol Avenue elevation is proposed to be modified. 360 degree architecture is required by the General Plan. 4. Parking is a concern. 5. Loss of apartments in the Downtown is a concern. Loss of rental units is a concern.. 6, Issues illustrated in the staff Memorandum to the CDAC must be addressed. 7. Affordable units would be beneficial. 8. Parking and circulation are concerns. EXHIBIT 6 CDAC - Aug= 9, 2006 - Page 2 , 9. Maximize the number of parking spaces but that should not be at the detriment of other issues. 10. Look at enhancing common and private open space. 11. Only modifying the Massol Avenue elevation is not appropriate. 12. Need to be creative in finding parking solutions. 13. Putting parking along the creek is not a benefit when you consider the impacts. 14. Consider merging units. 15. 2 parking spaces per unit may be appropriate. 16. 2.5.3 parking spaces may be appropriate. 17. Information on noise attenuation between units will be necessary. 18. Look at the amount of parking supplied for other condominium projects. 19. Spillover parking onto the public street is a concern. 20. Practical affordability is beneficial. 21. This will be a challenging undertaking given the parking and open space requirement in the Town Code. 22 Neighbors should be involved very early on in the process. 23. Careful analysis of the erosion of the rental stock will be necessary. 30 % rental housing must be maintained. 24. The application may set a precedent for other conversions. ITEM 2: 16005 Los Gatos Blvd and 625 Blossom Hill Road Conceptual Development Application CD-06-12 Requesting preliminary review of plans to demolish a vacant car dealership on a 4.5 acre parcel to construct a mixed use development consisting of 31,000 to 53,000 square feet of retail and 103 residential units on property zoned CH. APNS 529-16-025 and 053 PROPERTY OWNER: CHL Ventures, LP APPLICANT: Kenneth Rodrigues Item continued to the September 13, 2006 meeting. ADJOURNMENT Meeting adjourned at 5:20 p.m. The next regular meeting of the Conceptual Development Advisory Committee is Wednesday, September 13, 2006. Prepa Bud N. Lortz, Director of Community Development cc: Planning Commission Chair N ADEVICDACIMINUTES1200618-9 -06, min, wp d EXHIBIT 7 MAC'S AVAILABLE FOR VIEWING I THE CLERK DEPARTMENT