09-19-18 Item #17 Development Agreement Clarificationsprovides limited vesting for Tie r 1. The Vallco Specific Plan provides the zoning criteria for the
Property and the balance of the Vallco Specific Plan area, which require certain amendments to
the General Plan.
L. On Sept ember_, 2018, in advance of the overall 180-day streamlined approval
process deadline set forth in SB 35, the City issued a letter approving the SB 35 Project.
M. The Planning Commission on Se ptember 4. 2018, recommended
the following action by adoption of Resolutions Nos. 6 860, 686 1. 6 863 and,
6865 to the City Council: certification of the Vall co FEIR, approval of a General Plan
amendment, approval of the Vallco Specific Plan, and approval of this Development Agreement.
N. Prior to or concur rently with approval of this Agreement, the City has taken or
will take the following actions (collectively, the "Specific Plan Approvals"):
1. Certification of the Vallco FEIR by Resolution No. -------,--18 -
0 84 adopted by the City Council on , 2018;
2. Approval of General Plan amendments by Resolution No.
------18-085,adopted by the City Council on , 2018;
3. Approval of the Vallco Specific Plan by =========-__,,!'...,l<0H-.
Res o luti on No. 18-08 6 , adopted by the City Council on _______ _
2018; and
4 . Approval of rezoning by Ordinance No. ========::.,·1.1~8~~2~l k)78~adopted by .
the City Council on , 2018.
0. In accordance wi1h the Specific Plan Approvals, Developer has proposed to
provide community benefits and develop the Tier 2 pr ogram on the Property as follows (the
"Project"):
1. Upto 2,668 residential units, including 20% affordable LLnits-. 40 of which
shall be de signated for Ex trem el y Lo w Income Househol ds that Deve loper has Ero pose d to rent
with a preference for in divid uals w ith developmental disabilities, and 80 market -rate senior
housing units, as more particularly described in the Housing Plan;
2 . Up to 1,750,000 square feet of -office uses, at least 250,000 square feet of
which is limited to Office Amenity Space, as described in the Specific Plan Approvals;
3. At least 485,000 square feet of retail uses, as described in the Vallco
Specific Plan, including up to 85,000 sf of civic and education uses, as more particularly
described in Article 5 (Community Benefits);
4 . A hotel, as such us ·e is defined in the Specific Plan, with up to 191 rooms,
and ancillary uses and amenities as described in the Vallco Specific Plan;
5. Parking and loading a.s described in the Vallco Specific Plan;
17571.00 I 4831-2539-5313 .2 3
OAK 114845-7844-0814 ~-:,'23
EXHIBITD
HOUSING PLAN
1. Residential De v elopment. A total of 2,668 Residential Units can be developed on
the site, including the applicaole density bonus , as described in the Vallco Specific Plan. There
are no restrictions on rent a l or for sale rates for Market Rate Units. No more than 50% of the
total number of Residential Un its, excluding any units financed with Low Income Housing Tax
Credits , may be parceljzed as condominium umts for individual sale.
2. BMR Units. A total of twenty percent (20%) of all Residential Units developed
on the Property shall be af for dable to Extremel y Lo w Inc ome Ho usehol ds ,.__ Very Low Income
Households, Low Income Howehold Hou s eho lds and Moderate Income Households
(collectively, the "BMR Unit s;"). Residential Units that are not BMR Units are permitted to be
Market Rate Units. Based on t he maximum development of 2,668 Residential Units permitted
under this Agreement, 534 Residential Units would be BMR Units.
a. Ex treme ly Low an d Very Low Income Urti t s. Eleven percent of the base
permitted density,, or 196 Residential Units (7.34 percent of the tot al maximum permitted density
with the applicable density bonus), would be Very Low Income Residential Units. Very Low
Income means the rental rate is se t such that it is affordable to a household with an income that is
not more than 50% of area mel'.lian income ('~AMI"), adjusted for :household size appropriate for
the unit. All-Forty (4 0) of the :Very Low lnco me Resid ential Units wou ld be fw iher res tricted as
Extremely Low In co me Res idertt ial Uni t s. "Extremely Low Inco m e" or "ELI" m ea ns the rental
rate is set su ch th a t it is affo rd able to a h ousehold wi th an income t hat is not more than 30% of
AM I, ad iusted fo r hou s ehold s.i ze a ppro priate fo r the uni t. Devel oper i s permi tted t o include
preferences for develo p mentall y dis ab le d i nd ividuals that Devel oper has pro po sed as part of the
Proj ect to the extent consistent wi th appl icable fair housing la ws. All Extre me l y Low Inc ome
and Very Low Income Units will be renta l units. Rents for the EKtre mely Low Income and Ve ry
Low Income Units shall be set at an affordable rent as defmed in Section 50053 of the Health
and Safety Code~
b. Low Income Units. 7 .66 percent of the Residential Units (when comb ined
with the Extremely Low [ncom e and Ve ry Low Income Units, 15% of the total Residential
Units), or 205 Residential Units based on the maxirrmm permitted density, would be Low
Income Residential Units. Lov.r Income means the rental rate is set such that it is affordable to a
household with an income that is not more than the 80% AMI level, adjusted for household size
appropriate for the unit, and m~y be set lower at the Developer's discretion to compete for Low
Income Housing Tax Credit (LIHTC) financ i ng. All Low Income Units will be rental units.
c. Moderat e Income Unit s. Five percent of the Residential Units, or 133
Residential Units would \Je Moderate Income Residential Units . Moderate Income means the
rental rate is set such that it is affordable to a household with an income that is at the 120% AMI
level for rental units , adjusted f or household size appropriate for the unit, and the sales price is
affordable to a household with. an income that is at the 150% AMI level for for-sale units.
[7571.0014831-2539-53!3.2
OAK #4845-7844 -081 4 ~
Exhibit D-1