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Resolution No. ______
Resolution of the Council of the City of Palo Alto Directing Staff to Commence Predevelopment Activities for the Matadero Creek Affordable Housing Site
R E C I T A L S
A. On October 2, 2023, the City Council of the City of Palo Alto adopted Ordinance 5595, adopting a Development Agreement for the redevelopment of the 14.65 acre property at 200-404 Portage Avenue, 3040- 3250 Park Boulevard, 3201 -3225 Ash Street, and 278 Lambert Avenue (“Development Agreement Project”).
B. One of the key public benefits provided under the Development Agreement i s the dedication of 3.25 acres of land to the City, of which approximately one acre is intended as the site of a future affordable housing project (“Matadero Creek Affordable Housing Site” or “Site”).
C. The certified Environmental Impact Report (“EIR”) for the Development Agreement Project included analysis of up to 75 affordable rental units on the site to be dedicated to the City.
D. On October 2, 2023, the City Council adopted Ordinance No. 5600, rezoning the Site to support the future development of a housing project.
E. Several aspects of site preparation for the Site are completed or underway (e.g. Phase I reports, relocation of monitoring wells, and underground utility installation to accommodate the future development);
F. The City has an urgent need for the development of affordable housing and has been awarded funds under the Permanent Local Housing Allocation (“PLHA”) grant program.
G. On July 14, 2023, the Department of Housing and Community Development (“HCD”) and the City executed a Standard Agreement 22 -PLHA-17554 which establishes the requirements and procedures for accessing the City’s entitled PLHA 2019 -2023 Allocations.
H. The City desires to use the City’s Activity (1) PLHA a llocations for calendar years 2019, 2020, and 2021, totaling approximately $ 243,756, for predevelopment activities, construction of, and/or permanent financing for new affordable housing units at the Site, at the affordability level of at or below 60% AMI for a minimum of 55 years.
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NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The City Manager or designee is directed to issue a Request for In formation or Request for Proposals to solicit interest in development of an affordable housing project at the Matadero Creek Affordable Housing Site.
SECTION 2
. The City Council further directs the City Manager or designee to develop a timeline for predevelopment activities and construction of an affordable housing project at the Site that would result in occupancy of the project no later than June 30, 2030.
SECTION 3
. The City Council further directs the City Manager or designee to continue or commence all feasible predevelopment activities on the site as soon as practical.
SECTION 4
. To the extent PLHA funds are disbursed to the City to support predevelopment, construction, and permanent financing for an affordable housing project on the Site, the City certifies that it will use all such funds in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including without limitation all rules and laws regarding the PLHA Program, as well as any and all contracts the City may have with HCD, in accordance with Resolution No. 10080.
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SECTION 5. The Council finds that the adoption of this resolution does not meet the definition of a project under Public Resources Code Section 21065, thus, no environmental assessment under the California Environmental Quality Act is required . The environmental impacts of an affordable housing project of up to 75 units at the Site were analyzed in the 200 Portage Townhome Project Final EIR, which was certified by Resolution No. 10123 on September 12, 2023.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ _____________________________ Assistant City Attorney City Manager
_____________________________
Director of Planning and
Development Services