Staff Report
PREPARED BY: ROBERT SHULTZ
Town Attorney
Reviewed by: Town Manager, Town Attorney, Finance Director, and Community Development Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
TOWN COUNCIL REPORT
MEETING DATE: 10/16/2018
ITEM NO: 8
DATE: OCTOBER 11, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: ROBERT SCHULTZ, TOWN ATTORNEY
SUBJECT: APPROVAL OF AN EXCLUSIVE NEGOTIATING AGREEMENT (ENA) WITH
SARAH CHAFFIN TO DEVELOP AFFORDABLE TEACHER HOUSING AT 20
DITTOS LANE.
RECOMMENDATION:
Staff recommends that the Town Council authorize the Town Manager to sign an Exclusive
Negotiating Agreement (ENA) with Sarah Chaffin for the siting and development of affordable
teacher housing at 20 Dittos Lane.
BACKGROUND:
On September 19, 2017, the Town Council provided guidance regarding the disposition of 20
Dittos Lane. The Town Council confirmed that the property should be utilized for BMP housing
in keeping with the original intent of the property acquisition. In addition, the Council opined
that the preferred goals for the property would entail a maximum of four units, target low and
moderate affordability income ranges, and attempt to preserve the historic and environmental
nature of the site. Per the Council’s direction, interested parties were encouraged to submit
proposals reflective of the aforementioned goals by October 22, 2017.
On February 6, 2018, the Town Council reviewed the elements of the five proposals and
discussed the unique nature of the property and the challenges associated with each proposal.
At the conclusion of Council’s deliberations, it selected proposals by Habitat for Humanity and
Support Teacher Housing to continue in the evaluation process. The Habitat for Humanity
proposal was based on accessing the property from College Avenue and constructing a
minimum of 12 units within two, two story structures. The Support Teacher Housing proposal
PAGE 2 OF 3
SUBJECT: APPROVAL OF AN EXCLUSIVE NEGOTIATING AGREEMENT (ENA) WITH SARAH
CHAFFIN TO DEVELOP AFFORDABLE TEACHER HOUSING AT 20 DITTOS LANE.
OCTOBER 11, 2018
S:\COUNCIL REPORTS\2018\10-16-18 Closed Session\08 ENA for Dittos\Staff Report.docx 10/11/2018 5:16 PM
BACKGROUND (Continued):
envisioned two homes and two accessory dwelling units with access from the current Dittos
Lane. Council directed staff to engage with both parties to understand how each would address
the challenges and concerns that the Council identified during delibera tions.
On May 1, 2018, the Town Council reviewed supplemental information from Support Teacher
Housing and Habitat for Humanity for Below Market Price (BMP) housing at 20 Dittos Lane and
directed Staff to move forward with an ENA with Support Teacher Housing.
DISCUSSION:
The Town may legally enter into an Exclusive Negotiating Agreement with Sarah Chaffin for the
sale or lease of property. In fact, the California Municipal Law Handbook states: “A city may sell
property essentially in any way it chooses, if sale is for the common benefit of the City’s
citizens”.
Staff recommends that the Town Council authorize the Town Manager to sign the ENA
(Attachment 1). The purpose of the ENA is to set the parameters between the Town and Sarah
Chaffin (Developer) that will guide the negotiations of a Development Agreement (DA). The DA
will set the contractual relationship between the Town and Sarah Chaffin, and define the
project to be developed, the financial relationships, and the performance milestones for both
parties. The Developer has informed Town staff that she is comfortable with the terms of the
ENA. The ENA does not remove the Developer from the Town’s normal planning and
development application requirements and process, and all financial parameters and
obligations of the Town and Developer will be fully discussed with the Town Council. Upon
entering into exclusive negotiations, the parties will begin to meet regularly to discuss the
various issues described above, as well as new issues not yet identified.
CONCLUSION:
Based on the Council’s previous action, Council should authorize the Town Manager to sign an
Exclusive Negotiating Agreement (ENA) with Sarah Chaffin for the siting and development of
affordable teacher housing at 20 Dittos Lane.
COORDINATION:
This report was coordinated with the Town Manager’s Office and Director of Community
Development.
PAGE 3 OF 3
SUBJECT: APPROVAL OF AN EXCLUSIVE NEGOTIATING AGREEMENT (ENA) WITH SARAH
CHAFFIN TO DEVELOP AFFORDABLE TEACHER HOUSING AT 20 DITTOS LANE.
OCTOBER 11, 2018
S:\COUNCIL REPORTS\2018\10-16-18 Closed Session\08 ENA for Dittos\Staff Report.docx 10/11/2018 5:16 PM
FISCAL IMPACT:
No fiscal impact at this time but there will be additional staff time required.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. Exclusive Negotiating Agreement