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O1367 . . CA:RMM:JSH:jhordrmm City Council Meeting 4-30-86 Santa Monica, California ORDINANCE NUMBER 1367(CCS) (City council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA IMPLEMENTING THE PROJECT MITIGATION MEASURES OF THE LAND USE AND CIRCULATION ELEMENTS THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Pro;ect Mitiqation Measures. Whenever the City requires as a condition of approval for the development of any general office development, including medical office buildings, in excess of 15,000 square feet of new construction or 10,000 square feet of additions to existing development, that such development satisfy the Project Mitigation Measures of the Land Use and CirCUlation Elements of the General Plan ("Project Mitigation Measures"), the developer may satisfy the Project Mitigation Measures by complying with either Section 2 or section 3 of this Ordinance. SECTION 2. In-Lieu Fees. (a) The Project Mitigation Measures may be satisfied by an in-lieu fee paid to the City in accordance with this Section. (b) The amount of the fee pursuant to this section shall be determined as follows: $2.25 per square foot for the first 15,000 square feet of net rentable square footage and $5.00 per - 1 - . e square foot for the remainder of the net rentable square footage. The net rentable square footage of a building shall be the total square footage of the buildings minus the exterior and load bearing walls, elevator shafts, stairwells, equipment rooms, and parking. (c) Any fee pursuant to this Section shall be adjusted for inflation by the percentage change in the Consumer Price Index ("CPIn) between October, 1984 through the month in which payment is made. For purposes of this Section, CPI shall mean the index for urban Wage Earners and Clerical Workers for the Los Angeles/Long Beach statistical area, as published by the united states Department of Labor, Bureau of Labor statistics. (d) Any payment required by this section shall be made by payment of at least twenty-five percent (25%) of the total obligation prior to the issuance of a Certificate of Occupancy for the development. The balance of the fee shall be due in equal annual installments with payment in full no later than three years after the issuance of the Certificate of Occupancy. All payments are subject to the adjustment for inflation as provided in subsection (c). (e) Any fee required by this Section shall be secured by execution of an irrevocable letter of credit or other form of security acceptable to the city in favor of the City for the full amount of the obligation. The letter of credit or other acceptable security shall be delivered to the City prior to the issuance of a building permit for the development. (f) This section shall not apply to any office development for which the City has approved, prior to the adoption of this - 2 - . e Ordinance, an agreement between the developer and a non-profit corporation to satisfy the Project Mitigation Measures. SECTION 3. On-site or Off-Site Development. (a) Upon the mutual agreement of the developer and the City, the developer may satisfy the proj ect Hi tigation Measures by providing low and moderate income housing or developing new park space, on or off the project site. The number of units of housing or square footage of park space to be provided by the developer shall be established at the level equal to the amount of the in-lieu payment which would be required for the project pursuant to Section 2 of this ordinance. This shall be determined by valuing each housing unit at $30,060, and each square foot of improved park space at $48. No set percentage of either housing or parks shall be required for any individual development. The valuations of $30,060 per housing unit and $48 per square foot of improved park space shall be adjusted for inflation by the percentage change in the Consumer Price Index as specified in Section 2(0) of this Ordinance, except that adjustments shall commence upon the effective date of this Ordinance. Cb) If the developer elects to develop the required parks or housing on-site, the parks and housing must be approved by the City prior to issuance of a building permit, unless it is being constructed in a separate phase. If the developer elects to develop the parks and housing off-site, or on-site in a later phase of the development, completion of the parks and housing shall be secured by a letter of credit or other form of security - 3 - . e acceptable to the city in favor of the City delivered prior to issuance of a building permit. The developer must submit the necessary plans, evidence of site control, and financing plans to the city prior to issuance of the Certificate of Occupancy. If the developer does not so demonstrate, prior to issuance of a certificate of Occupancy, that the parks and/or housing developments will be completed in a timely manner, the developer shall pay the first 25% installment of the in-lieu fee to the City, and subsequent annual installments, as required by section 1. If the developer does demonstrate that the parks and housing developments are feasible and will be completed in a timely manner, the security device shall remain in full force and effect until the parks and/or housing developments are completed. (c) Park space developed on-site or off-site pursuant to this section shall meet the following minimum requirements: (1) All required setbacks of the development shall be provided and shall not count as park space. (2) Park space shall be separated by a clearly defined physical barrier, such as a fence, hedge, or other landscaping treatment, from each adjacent building. The physical barrier must be separated from each building by the normally required setback. (3) The park shall be a minimum of one-half acre. (4) Park space shall be accessible to the general public directly from public thoroughfares. Parks shall be located so as to be highly visible from the surrounding streets. (5) Parking spaces for the park shall be provided according to a parking demand analysis which shall be the - 4 - , . responsibility of the developer and which must be approved by the city parking and Traffic Engineer. The parking for the park may be counted as park square footage only if the parking is dedicated solely to park users and can reasonably be restricted for that purpose. For any park of less than one acre, the parking provided shall not be included in the park square footage. (6) Park space shall be improved to the satisfaction of the city. I f any improvements required by the ci ty can be clearly demonstrated to exceed $6.00 per square foot, averaged for the entire park, as adjusted for inflation, the cost in excess of $6.00 per square foot shall be credited to the developer against the requirement under this section. The burden of proof of excessive cost shall lie with the developer, and the City shall clearly approve any excess expenditure as part of its approval process. (7) Park space shall be dedicated to, and maintenance shall be the responsibility of, the City, unless alternative mutually acceptable agreements are made between the City and the developer. (d) Low and moderate income housing developed on-site or off-site pursuant to this section shall meet the following minimum requirements: (1) All units must be affordable to households earning no more than 80% of the median area income, as published by the united states Department of Housing and Urban Development and amended from time to time. - 5 - . . (2) The formulas for establishing rents shall be the same as those established for the City's inclusionary housing program of the Housing Element. (3) Units that are required to be provided on-site or off-site under the terms of a Removal Permit from the Rent Control Board by an office development that will displace existing controlled rental units may not be counted towards the satisfaction of the requirements of this Section. (4) Units shall be targeted primarily to families and shall have an average of at least two bedrooms. (5) A management plan describing how tenants will be selected and how the building will be managed shall be approved by the City. (6) Units must be deed-restricted for at least fifty (50) years to remain affordable to low and moderate income persons. At the end of this 50 year period, the units shall be dedicated to the City or its designee. SECTION 4. Use of In-Lieu Fees. (a) Each payment made pursuant to section 1 of this Ordinance shall be deposited into two Reserve Accounts in the General Fund as follows: (1) Forty-five percent (45%) shall be deposited into a Housing Mitigation Fund to be used for the development of low and moderate income housing. (2) Forty-five percent (45%) shall be deposited into a Parks Mitigation Fund to be used for the acquisition and - 6 - . e development of new parks or for significant capital improvements which increase the recreational opportunities of existing parks. (3) Ten percent (10%) shall be deposited into an account which may be transferred to either the Housing Mitigation Fund or Park Mitigation Fund. (b) If any development meeting the Project Mitigation Measures under Section 3 of the Ordinance does not provide such mitigation measures in accordance with a 50% (housing) 50% (park) formula, the value of the excess contribution for housing or parks shall result in a transfer from the appropriate Reserve Account as follows: (1) If the value of the park was more than 50% of the total value of the project Mitigation Measures, the following amount shall be transferred from the Park Reserve Account to the Housing Reserve Account: 50% of total value of the Project Mitigation Measures less the value of housing actually provided. (2) If the value of the housing was more than 50% of the total value of the Project Mitigation Measures, the following amount shall be transferred from the Housing Reserve Account to the Park Reserve Account: 40% of the total value of the Project Mitigation Measures less the value of the park actually provided. SECTION 5. Inconsistent provisions. Any provision of the Municipal Code or appendices thereto inconsistent with the provisions of this ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this ordinance. - 7 - . . SECTION 6. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council hereby declares that it would have passed this ordinance and each and every section, subsection, sentence, clause or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 7. Execution. The Mayor shall sign and the city Clerk shall attest to the passage of this ordinance. The city Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. The ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: ^ ...J_ _ ..c. \ \__ , '"V"'"" IrJoV'l ",-. - - 0- - - ROBERT M. MYERS City Attorney - 8 - , . . . Adopted and approved thiS 30th day of April, 1986. lV,-ic, ~ 1 ~ ! " Mayor . I hereby cert ify that the foregoing Qrd inance No. 1367 (CCS) was duly and regularly introduced at a meeting of the City Council on the 22nd day of April 1986; that the said Ordinance was thereafter duly adopted at a meeting of the City Council on the 30th day of April 1986 by the following Council vote: Ayes: Councilmembers: Epstein, A. Katz, Zane and Mayor Reed Noes: CounCilmembers: Conn Abstain: Councilmembers: None Absent: Councilmembers: Jennings and H. Katz ,L . F ~ ~ -...... - - -~:..,~ ~~-~::~: ~~ .~ ~_ .0--./ _... 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