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Exhibit H
ALTERNATIVE EQUIVALENT
First Street Napa Phase II
Redevelopment
Project
A.
ALTERNATIVE EQUIVALENT SUMMARY
Coombs Street LLC (“Coombs Street”) submits this alternative equivalent proposal for the affordable housing component related to its First Street Napa Phase II Redevelopment Project (“Project") in downtown Napa
and as described in Section 6.1.2 of the proposed Development Agreement by and between the City of Napa and Coombs Street LLC (“Development Agreement”)
. As further described below, Coombs Street proposes to contribute to the First United
Methodist Church proposed development of an affordable housing and workforce project located off the Project site at the Church’s property in downtown Napa , as approved by t
he City or Napa
in project No. PL24
-
0038 on August 6, 2024, which permits the development of 46 dwelling units which includes 45 affordable rental housing for households earning 30% to 60% of Area Median Income and 1 unrestricted manager’s unit
(“Affordable Church Project”)
,
and cause additional
payments to be made into the
City’s Affordable Housing Trust Fund at the time of the first sale of each of
the residential units in
the Project
.
In addition to the payments described herein, in accordance with Napa Municipal Code (NMC) Section 15.94.070B Coombs Street and the owner of the Affordable Housing Parcel (defined below) will enter into an affordable housing agreement with the City which c omplies with the
requirements of NMC Section 15.94.080 (the “Affordable Housing Agreement”). The Affordable Housing Agreement shall be recorded against
that
portion of
certain real property owned by First
United Methodist Church located at 629 & 641 Rando
lph St. & 1301 Fourth Streets Napa, CA
94559
,
Assessor’s Parcel Nos
. 003
-
262
-
006 and 003
-
262
-
007
(the “Affordable Housing Parcel”),
as approved by the City for affordable housing in the
Affordable Church Project
within two years
of the Effective Date of the Development Agreement. The Affordable Housing Agreement will include, among other things, that the Affordable Housing Project include the number of affordable units described above at the identified income lev
els for the period of time required by the N
MC.
This alternative equivalent proposal is intended satisfy Developer’s entire affordable housing requirement related to the Project (“Affordable Housing Obligation”) and the Project shall not be subject to any Affordable Housing Impact Fees or other affordab le housing obligations beyond
this Affordable Housing Obligation.
Provided, however in the event that Coombs Street fails to:
(i) make the payment described herein; or (ii) enter into and cause the Affordable Housing Agreement to
be
recorded at the time s
et forth in herein
, then
Coombs Street shall pay the City the
Affordable Housing Impact Fee in accordance with Chapter 15.94 of the Municipal Code.
Concurrently with the submission of this alternative equivalent proposal, Coombs Street has submitted an application for a Development Agreement and Planned Development Overlay for the
Project. The Project is described in the Development Agreement. The Affordable Housing Impact Fee for the entire Project is estimated to be $2,037,000.00 .
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B.
REGULATORY FRAMEWORK
U
nder the City’s Affordable Housing Impact Fee Ordinance, Chapter 15.94 of the Napa Municipal Code
(NMC)
, Coombs Street is required to pay an affordable housing impact fee for the Project.
The Affordable Housing Impact Fee Ordinance allows applicants to propose and the City to approve an alternative equivalent to the payment of the required impact fee.
Section 15.94.070 of
the NMC allows an applicant to satisfy its affordable housing obligation through the performance of an alternative equivalent proposal
, subject to City approval. Section 15.94.070(A) provides six examples of alternative equivalent proposals:
1. Construction of affordable housing units either on
-
or off
-
site;
2. Dedication of real property to be reserved for the construction of affordable units;
3. Provision of affordable rental units;
4. Conversion of existing market rate units to affordable ownership units;
5. Preservation of affordable units at risk of loss; or
6. Other means consistent with the Housing Element.
Section 15.94.070(A) requires Alternative Equivalent Proposals to further affordable housing opportunities in the City to an equal or greater extent than payment of the affordable housing
impact fees applicable to a project.
C.
FIRST UNITED METHODIST CHURCH OF NAPA SITE PROPOSAL
Concurrently with this alternative equivalent submission, the Church is working with qualified affordable housing developers Burbank Housing Development Corporation and Napa Valley Community Housing, in providing multifamily affordable workforce housing o n its site at the
First United Methodist Church of Napa site a portion of a Church -
owned site located in Downtown
Napa, California (629 & 641 Randolph St. & 1301 Fourth Streets Napa, CA 94559) The church with its affordable housing developer will develop a
workforce and affordable project, along with
other community serving facilities, that will include high quality design, including sustainable and energy efficient spaces, a creative but realistic financing plan, state of the art construction methods, and
a comprehensive plan that includes “wrap
-
around” services for housing residents, the church
and perhaps the community. The Church site is 22,310 sq. ft. (0.51 acres). The City approved the Church’s affordable housing project in project No. PL24 -
0038 on Aug
ust 6, 2024. The Church
and its affordable housing developer
are
pursuing funding for the project.
Coombs Street will not be the affordable housing developer selected by the Church for its housing project. Instead, Coombs Street has offered to provide support to the Church including providing resources to:
1. Evaluate the site,
2. Develop project schemes,
3. Review respondents to the Church’s RFQ submittals,
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4. Assist on contracts,
5. Assist on entitlements,
6. Contribute gap funding on the lease or property acquisition, and
7. Provide a portion of the development funding for the housing project for any amount in excess of the property acquisition or lease payments.
Coombs Street’s alternative equivalent contribution is intended to seed and facilitate the development of the Church’s multifamily workforce housing in downtown Napa. This support will constitute the “Contribution” under this alternative equivalent proposa l. The financial contribution
Coombs Street shall provide the Affordable Church Project for items 6 and 7 shall be a payment of approximately $2,037,000
and the final amount of the payment will be in an amount equal to the amount of the Affordable Housing
Impact Fee that would otherwise be applicable to the Project determined in accordance with Section 5.1 of the Development Agreement (“Affordable Church
Project Payment”). The Affordable Housing Project Payment shall be made by the earlier to occur
of: 1)
within 60
-
days of receipt of notification provided by the Church or the issuance of the first Building Permit
for any portion of the Project or 2) prior to issuance of the first certificate of Occupancy for any portion of the Project
(“Affordable Church
Project Payment Date”)
.
D.
PAYMENTS INTO THE CITY’S AFFORDABLE HOUSING TRUST FUND AT
THE TIME OF THE FIRST SALE OF THE RESIDENTIAL UNITS IN FIRST STREET
NAPA PHASE II REDEVELOPMENT PROJECT
Coombs Street shall cause the first purchaser of each Project residential unit to pay to
the City an
affordable housing fee in an amount of $2.00 per square foot per residential unit (“Additional Residential Fee”). The amount of square feet shall be based on the gross square foot floor area of the unit (as defined by NMC Section 15.94.020). T
he fee shall be paid as a part of the close of
escrow for the initial sale of each residential unit.
E.
AFFORDABLE HOUSING OBLIGATION DEFINED
Coombs Street’s Affordable Housing Obligation will consist of:
1. Payment of the
Affordable Housing Project Payment on or before
the
Affordable Church
Project Payment Date;
2. Payment of the Additional Residential Fee
at the time of the close of escrow for the initial
sale of each residential unit in the Project
; and
3. Recordation of the Affordable Housing Agreement within two years of the Effective Date of the Development Agreement.
This alternative equivalent proposal provides greater value to the City than the payment of a fee because the Project creates and adds both market rate, workforce and affordable housing to downtown Napa, consistent with the City’s vision in the General Pla n Update and in the downtown
Napa Specific Plan and the payments under the Affordable Housing Obligation are in excess of the Affordable Housing Fee for the Project pursuant to the terms of the Development Agreement.
Except as set forth herein, t
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or other affordable housing obligations beyond this Affordable Housing Obligation.
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Exhibit H
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EXHIBIT H
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1 AFFORDABLE HOUSING PARCEL LEGAL DESCRIPTION
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ATTACHMENT 13