Staff Report
PREPARED BY: ARN ANDREWS
Assistant Town Manager
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: 5/1/2018
ITEM NO: 13
DATE: APRIL 26, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: REVIEW SUPPLEMENTAL INFORMATION FROM SUPPORT TEACHER
HOUSING AND HABIT FOR HUMANITY FOR BELOW MARKET PRICE (BMP)
HOUSING AT 20 DITTOS LANE AND DIRECT THE TOWN MANAGER TO
ENTER INTO AN EXCLUSIVE NEGOTIATING AGREEMENT (ENA) WITH ONE
OF THE PARTIES
RECOMMENDATION:
Staff recommends that the Town Council review supplemental information from Support
Teacher Housing and Habitat for Humanity for Below Market Price (BMP) housing at 20 Dittos
Lane and direct the Town Manager to enter into an Exclusive Negotiating Agreement (ENA)
with one of the parties.
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 an 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.
Staff received five proposals at the conclusion of the proposal period.
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SUBJECT: BELOW MARKET PRICE HOUSING AT 20 DITTOS LANE
DATE: APRIL 26, 2018
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BACKGROUND (Continued):
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
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 deliberations.
DISCUSSION:
As directed, staff has been engaged with both Habitat for Humanity and Support Teacher
Housing. Provided below is a summary of both parties responses (in bold) to the identified
challenges (in italics) and additional supplemental material.
Support Teacher Housing
The initial architectural rendering provided by the applicant illustrated that the 3-bedroom
homes were designed for communal living with each bedroom housing non -related individuals.
The Town’s BMP program would look at all three individuals’ incomes in total to determine
eligibility as a household for an affordable unit. Under the Town’s BMP program, the initial
proposal would not have met the BMP guidelines.
Response: On April 4, 2018, staff received the revised architectural drawings in Attachment 1
from Chapman Design Studio. While household configuration will ultimately determine
compliance with the Town’s BMP program, the designs are consistent with other BMP
properties.
The proposal envisions ingress/egress from Dittos Lane. In discussions with the proposer, staff
identified at least three areas of easements which would require resolution from two different
property owners.
Response: On March 2, 2018, staff received the letter in Attachment 2 from Gregory Howell
indicating a willingness to grant Support Teacher Housing an easement. In addition , on
March 15, 2018, staff received the letter in Attachment 3 from Ryan Maas indicating a
willingness to grant Support Teacher Housing an easement.
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SUBJECT: BELOW MARKET PRICE HOUSING AT 20 DITTOS LANE
DATE: APRIL 26, 2018
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DISCUSSION (Continued):
Access from Dittos Lane and the site plan layout would require compliance with County Fire
requirements.
Response: On March 28, 2018, staff received the letter in Attachment 4 from Chapman
Design Studio indicating that the firm has discussed the proposal with representatives of
County Fire and based on those discussions, the firm believes the proposed project will
comply.
The proposer’s intention is to make the units provided available only to teachers. Staff
identified that pursuing a housing program for the exclusive use of teachers would likely require
the project to include a School District as a partner in order to take advantage of the Teachers
Housing Act.
Response: On March 7, 2018, staff received the letter in Attachment 5 from the Los Gatos –
Saratoga Union High School District indicating an interest in exploring the Support Teacher
Housing proposal. In addition, on March 9, 2018, staff received the letter in Attachmen t 6
from the Los Gatos Union School District indicating an interest in exploring the Support
Teacher Housing proposal.
Habitat for Humanity
The proposal envisions accessing the property from College Avenue and engineering a new point
of ingress/egress down into the site. Habitat believes that their engineering analysis of the site
makes access from College Avenue feasible. In discussions with the proposer, staff identified
community acceptance as an important element.
Response: On February 21, 2018, staff received the memorandum in Attachment 7
announcing a community meeting for College Avenue residents hosted by Habitat for
Humanity. Staff also attended the meeting.
On March 29, 2018, staff received the updated proposal in Attachment 8 from Habitat for
Humanity. As the proposal indicates, Habitat for Humanity is no longer inclined to pursue
access from College Avenue and instead is considering a Dittos Lane access. The updated
proposal is for development of a portion of the Dittos property with the remaining portion
retained by the Town. Similar to their proposal of April 17, 2017, this proposal envisions two
to four 3- and 4- bedroom homes.
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SUBJECT: BELOW MARKET PRICE HOUSING AT 20 DITTOS LANE
DATE: APRIL 26, 2018
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DISCUSSION (Continued):
On April 24, 2018, staff received an additional updated proposal in Attachment 9 from
Habitat for Humanity. The updated proposal states that Habitat for Humanity contacted the
adjacent property owners seeking agreements for access to 20 Dittos Lane. The proposal
states the owners expressed a willingness to provide agreements but none have been
received to date.
The proposal envisions ingress/egress from Dittos Lane. Staff met with officials from Habitat for
Humanity on April 11, 2018 to share information specific to challenges associated with
ingress/egress from Dittos Lane. Specifically, staff identified at least three areas of easements
which would require resolution from two different property owners.
Response: No response received to date.
Access from Dittos Lane and the site plan layout would require compliance with County Fire
requirements.
Response: No response received to date.
CONCLUSION:
Based on the staff report, Council deliberations, and public and proposer input, the Council
should determine which proposer to direct the Town Manager to enter into an ENA for the
development of 20 Dittos Lane. The assignment of an ENA does not remove the proposer from
the Town’s normal planning and development application requirements and process.
Alternatively, if Council determines that the unique nature of the Dittos property does not
effectively accomplish the Town’s BMP goals then the Council can consider selling the property
for market rate development. As noted in previous staff reports, the original Redevelopment
Agency purchasing documents did not require a minimum number of affordable housing units
be built on the property nor is there any deed restrictions associated with the property. If the
Council determines to monetize the property for market rate development, the proceeds must
be placed in to the Town’s BMP/Affordable Housing Fund.
COORDINATION:
This report was coordinated with the Town Attorney’s Office and Director of Community
Development.
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SUBJECT: BELOW MARKET PRICE HOUSING AT 20 DITTOS LANE
DATE: APRIL 26, 2018
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FISCAL IMPACT:
No fiscal impact at this time.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Support Teacher Housing revised architectural drawings
2. Support Teacher Housing Howell Easement Letter
3. Support Teacher Housing Maas Easement Letter
4. Support Teacher Housing Santa Clara County Fire Engagement Letter
5. Support Teacher Housing Los Gatos-Saratoga Union School District Engagement Letter
6. Support Teacher Housing Los Gatos-Saratoga Union High School District Engagement
Letter
7. Habitat for Humanity College Avenue Residents Meeting
8. Habitat for Humanity Updated Proposal Letter
9. Habitat for Humanity Updated Proposal Letter 2