Laserfiche WebLink
<br />l\UNUTES Page 7 <br />City of San Leandro City Council and San Leandro Redevelopment Agency Joint Meeting-November 15, 2004 <br /> <br />Paul Starn, EF Communities, addressed the City Council, commenting that while the <br />ordinance provides greater clarity and more flexibility to developers, it places the entire <br />financial burden for affordable housing on the landowner and developer. Mr. Starn <br />suggested this burden should be spread over the entire community, and the City could <br />provide incentives to mitigate the financial burden to the landowner and developer. <br /> <br />Charles McKeag, Citation Homes, addressed the City Council, commending staff for <br />bringing the development community into the process of drafting the inclusionary <br />zoning ordinance. Mr. McKeag C0111nlented favorably on the greater flexibility the <br />ordinance provides. He stated that, while he does not disagree with the goal, the <br />development community does not see this as the most efficient or effective Inechanism <br />for producing affordable units. <br /> <br />Robert Caruso, San Leandro resident, addressed the City Council, commenting that <br />he is a principal in a property management cOlnpany. Mr. Caruso noted that for an 8 <br />unit in-fill townhome project, the developer costs including the inclusionary <br />requirenlent total 15-190/0. He expressed concern that the City needs to provide <br />subsidies to make the risk of construction worth\vhile to potential investors. He <br />expressed concern from a social perspective that developers not be allowed to build a <br />1000/0 nlarket rate project on one site \vith the affordable component on another site. <br /> <br />There being no further conlments from the public, and without objection, the Public <br />Hearing was closed. <br /> <br />Councilmember Stephens relninded the Council that at the Work Session held the <br />previous Monday, he had expressed concerns as to whether the ordinance could be <br />understood and enforced. He stated that his concerns have been alleviated tonight by <br />the conl111ents from staff and developers. <br /> <br />Councilnle111ber Nardine asked whether upgrades would be available for low- and <br />nloderate-inconle households. Conlmunity Development Director Hanson HOln noted <br />that it would be possible to upgrade an affordable unit provided that the amount does <br />not cause the household to exceed its maxinlunl affordable mortgage. <br /> <br />Councilmember Nardine asked for clarification regarding the "risk" on a construction <br />site 111entioned by one of the speakers. Mr. J enl1anis indicated that the speaker was <br />referring to the risk of investll1ent in a project. He cOlnmented that with this ordinance <br />the City Council is asking developers to provide housing units in exchange for the <br />Council's action to rezone property to allow residential units to be built. It asks <br />developers to assist the City in meeting the Housing Element. Mr. Jermanis noted that <br />the City does not ask developers to disclose the profit margin they make on a project, <br />and no developer has approached the City with the claim that it cannot afford to build <br />units due to the inclusionary housing requirement in the redevelopment area. He stated <br />that if a developer could demonstrate that its profit objective could not be reached due to <br />the inclusionary requirement, staff would notify the Council that S0111e assistance to the <br />developer could be considered. San Leandro has strived to make its ordinance as <br />reasonable and accoll11110dating as possible to developers of in-fill projects. He noted <br />