13 Desk Item - 347 Massol Avenueowa of
!ps • GA~9g
COUNCIL AGENDA REPORT
DATE: August 18, 2008
TO: MAYOR AND TOWN COUNCIL
FROM: ORRY P. KORB, TOWN ATTORNEY
MEETING DATE: 8118108
ITEM NO:
DESK ITEM
SUBJECT: ADOPT PLANNED DEVELOPMENT 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 AT 347 MASSOL AVENUE (APN
510-14-004) (BAY TREE APPARTMENTS)
REMARKS :
The attached information (Attachments 9-11) was received after the report on this matter was
finalized.
Attacbments:
1-8. Previously Submitted
9. Resident Assistance Analysis submitted by applicant (2 pages), received August 15, 2008
10. Letter f Tom residents (4 Pages), received August 18, 2008
11. E-mail from resident, received August 18, 2008
PREPARED BY
t Y P. KORB BUD N. LORTZ
WN ATTORNEY COMMUNITY DEVELOPMENT DIRT C1'OR
N:IDrV1CNCLRPT512 0 0 813 47 Mass ol 2Desk. doc
Reviewed b)- -own Manager
Clerk Administrator Finance Community Development
Page I of 1
Patsy Garcia - Supplemental information for Monday Council Meeting
re. Bay Tree - Item #13
From: Bud Lortz
To: Barbara Spector; Diane McNutt; Joe Pirzynski; Mike Wasserman; Steve
Glickman
Date: 8/15/2008 3:52 PM
Subject: Supplemental information for Monday Council Meeting re. Bay Tree - Item
#13
CC: Greg Larson; Jackie Rose; Marilyn Cosden; Orry Korb; Patsy Garcia
Attachments: Bay Tree Resident Assistance Local Analysis.pdf
Dear Mayor and Council Members:
Per Council request, attached is supplemental information for the Bay Tree Item scheduled for Monday night (Item #13). Greg
Larson approved that I may send this directly to Council. This information is from Lyon and provides background about other
city's housing assistance requirements for Condominium Conversion Projects.
If you have any questions, please contact me or Greg. Have a great weekend!
Sincerely,
Bud Lortz
Bud N. Lortz, AICP
Director of Community Development
Town of Los Gatos
blortz@losgatosca.gov
(408) 354-6867
(General note for your information:
All Town of Los Gatos staff have new email addresses. All Town email addresses ending with "@town.los-gatos.ca.us" will now
end with "@losgatosca.gov", my new email address is as listed in the "from" field of this email.)
Attachment 9
file:HC:1Docurnents and Settingslpgarcia.1,0 SGATOSCA1Local Settings\TemplXPgrpwise148A'
Lyon Assistance Program Review and Local Comparison
Pursuant to California Government Code Section 66427. 1, conversion of residential
rental property to a condominium project must provide, at minimum, certain protections
for current tenants. Jurisdictions may choose to require additional actions or programs of
the owner/developer.
Table 1, attached, compares the following actions/programs proposed in the Lyon
Assistance Program with those required by other cities in Santa Clara County:
• Monetary Relocation Assistance
• Additional Hardship Assistance (for specific populations)
+ Homeownership Assistance, and
+ Terms for Vacation of Units.
The cities researched in this comparison include Sunnyvale, Gilroy, Cupertino, Campbell,
Mountain View, Saratoga, Los Altos, Palo Alto, Santa Clara and Milpitas.
Our research finds the following:
• Generally speaking, the Lyon Assistance Program provides tenant assistance
above and beyond the programs required by surrounding cities.
• Many of the surrounding cities do not have specific local requirements related to
tenant protection and relocation in conjunction with condominium conversions. It
is assumed that tenants will be provided the minimum protections required by
State law.
• The Lyon Assistance Program provides monetary relocation assistance for all
tenants. The cities researched generally do not require monetary relocation
assistance.
• Of the 10 cities compared, two require additional hardship assistance in the form
of a lease extension or lifetime leases to specific populations. The Lyon
Assistance Program provides for similar lifetime leases for qualified senior
households. In addition, the Lyon Assistance Program provides for monetary
assistance for low-income tenants or tenants with disabilities on top of the
standard relocation assistance.
• Generally, the other jurisdictions do not require the owner/developer provide
homeownership assistance. The Lyon Assistance Program provides a 5 percent
discount on purchase price as well as other favorable purchase terms, which could
increase the effective discount by 2-5 percent.
• Terms for vacation of units vary by jurisdiction. State law requires tenants be
given a minimum of 180 -days' written notice of intention to convert prior to
termination of tenancy due to the conversion or proposed conversion. Generally
speaking, the cities included in this comparison require somewhere between the
State minimum and one year before tenants must vacate the unit. The proposed
Lyon Assistance Program allows elderly tenants to remain in their units until they
voluntarily vacant.
To: Los Gatos Town Council RECEIVED
From: Carla de Mos and Bay Tree tenants listed on the following page AUG 18 2008
Subject: Objection to Lyon's Resident Assistance Program for the MAYOR TOWN COUNCIL
Bay Tree Condominium Conversion
Date: August 18, 2008
Dear Los Gatos Town Council,
Lyon's intentions in regards to relocating the tenants of the Bay Tree apartment complex are inadequate.
The following amendments, to be effective as of August 18, 2008 if the proposal for the Bay Tree to be
converted into condominiums is accepted by the Los Gatos Town Council, would be considered fairer for the
tenants:
1. Reduce the age of seniors in the proposal to include those aged 60 and older, regardless of move-in
date.
2. No further increases in rent. In fact, due to the stress and inconvenience caused by the conversion,
roll back the rent to the previous year amount. Lyon generally increases the rent by the maximum
allowed 5% per 12 month period, hardly fair for people that are being forced out of their homes.
3. Remove the "pass through" cost that was added to the last rental increase. We have asked Lyon's
Ron Cole for the pass through formula used to calculate the pass through increase to our rents. The
formula is cryptic, see Attachment 41. What are we being charged for exactly?
4. Increase the distance for the moving assistance for low-income and disabled households to 30 miles
The goal is to help people to find comparable apartments in Los Gatos but because Los Gatos only
has an estimated 0.8% vacancy rate they may be unable to find something within the 10 mile limit.
5. General Relocation tenants: increase the compensation to $3000.00. The availability study showed
that comparable apartments rents are at a premium and most of us will probably have to look outside
of our beloved Los Gatos.
6. For those tenants who will be inconvenienced even further due to renovations, especially due to the
extensive exterior renovations planned for the front of the complex:
a. No increase in rent
b. If necessary due to construction noise/inconvenience, tenant may choose to move
at Lyon's expense into another unit at the Bay Tree or elsewhere
c. Make sure that construction times are limited to within the hours of 8-5
d. No work on weekends or holidays.
7. Offer long term leases to tenants which have lived at the Bay Tree before October 27, 2005.
8. Rental protection for those brave enough to stand up against "The Lyon"
We are all strongly opposed to Lyon's plan to convert the Bay Tree apartments into condominiums.
Sincerely, The Bay Tree tenants listed on the following page.
Attachment 10 1 Z
e0bjection to Lyon's Resident Assistance Program for the Bay Tree Apartment Condo Conversion
Apt. #
Name
Signature
ZO 71
e-i- d e
or
~Lwd~ f V4-A
016A) ~ y>
le "e G
fti Ru c. ~ . ~c~ 2 l U L
L
FIZ~
r
Page 2/-*
Attachment #1
Lyon's answer to the Bay Tree Tenants ' question regarding
the reason for the Pass through Increase added to the Rent
Bay Tree resident meeting follow up - Inbox - Yahoo! Mail
Page 1 of 1
Bay Tree resident meeting follow up
From, "Ron Cole" <roncole@Lyon1,com>
Wednesday, August 6, 2008 1:32 PM
To. "Barbara and Mike Suglian° <mbm@tdl.com>, "Cindy Cloud" <cacloud@g mail. com>, "Jim and Nordy
Raymond" <jraymond@rayso€t.com>, "Jim Cox" <jcox@95030>
Town Desciption - Standards of Reasonableness for Rent Increases.pdf (472KB)
Dear Bay Tree Residents:
It was a pleasure meeting you all last night. It is always great meeting people face to face. As I committed yesterday, I am
writing to follow up to cover the rent increase guidelines and more specifically the calculation for the pass thru amount. First,
the Town's guidelines which are attached allow for:
1. The Town allows the greater of the two: an increase of 5% or 70% of the Consumer Price Index (CPI) ceiling available
bi-monthly from the Bureau of Labor and Statistics for the San Francisco - Oakland area.
-
2. A pass thru amount that is defined on the bottom of page one and top of page two.
As for our specific calculation:
Lyon follows the steps outlined by the Town of Los Gatos in calculating the monthly pass-through:
1. Operating Expenses (minimum 2 years of information, this includes payroll, utility, advertising and other related
expenses):
Compare most recent 12 months of expenses to the prior 12 months and determine increase. This is divided by
12 and then by the number of units at the property (56).
2. Capital Improvements (ie. -common area improvements, etc.):
Most recent 12 months of expenses divided by 60 (5 yrs) and then the number of units at the property (56).
3. Debt Service
o Compare most recent 12 months of expenses (Principal & Interest) to the prior 12 months and determine
increase. 80% is the allowable pass-through as long as the LTVR (Loan to Value Ratio) is below 70%. This is
divided by 60 (5 yrs) and then by the number of units at the property (56).
Again, it was a pleasure meeting all of you. Please respond with any questions or feel free to contact me at the phone number
below.
Regards,
Ron
Ron W. Cole
Lyon Capital Ventures
Lyon Management Group
Acquisitions Development Management
4901 Birch Street
Newport Beach, CA 92660
949.838.1221 - ❑irect Phone
949.252.9202 - Fax
roncole .1yon[.co>n - E-mail
http:llus.mc570.mail.yahoo. comlmclshowMessage?fid=Inbox&sort=date&order=down&st... 8/16/2009
Conversion of 347 Massol Avenue
Dear Mayor Spector, Town Council Members, and Town Staff,
Page 1 of 1
Unfortunately I am not able to attend and speak at the meeting this evening. I have had the opportunity to share with some
of you, but wanted to express my feelings about the conversion to all of you. When I was first approached by Lyon
Management about the possibility of my apartment turning into a condo I was very excited. I have been living at 347
Masso] for four plus years. I have worked and volunteered my time in Los Gatos for over five years.
I continue to support the conversion. As a single, professional, I would love to continue to live at 347 Massol, but now have
the opportunity to buy real estate in Los Gatos. I understand that this is a first time opportunity for the Town to approve a
conversion. I hope that others will be able to take advantage of this chance to live and own a condo in Town. We live and
work in such a beautiful place. When you make your final decision I trust you will take my thoughts along with the many
other residents that live at 347 Massol, to allow us the occasion to purchase real estate in the Town of Los Gatos.
Thank you very much for your time and consideration.
Sincerely,
Mollie Drake
ATTACHKMT 11
file://CADocutnents and Settingsljpaulson.LOSGATOSCA1Local SettingslTemplXPgrpw... 08/18/2008