City of South Lake Tahoe 6

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1 City of South Lake Tahoe 6 "making a positive difference now" STAFF REPORT CITY COUNCIL MEETING OF NOVEMBER 5, 2013 TO: FROM: RE: City Manager Judy Finn, Associate Planner Request to Transfer a Privately Owned Residential Unit of Use from the City of South Lake Tahoe to Douglas County RECOMMENDATION: 1) Hear Staff Report; Receive Public and Council Comments; and Approve the Request to Transfer a Privately Owned Residential Unit of Use to Douglas County. 2) Require a Fee of $12, to Offset the Loss of Property Tax Revenue to the City. ISSUE AND DISCUSSION: Planning Staff has received an application to transfer a privately owned Residential Unit of Use (RUU) from the City of South Lake Tahoe to Douglas County (Attachment A). The applicant has purchased one RUU from the property owner of a 15-unit multiple-family residence that has been removed at 3768 Osgood Avenue. An RUU is a development right combined with a residential allocation that gives the owner the right to obtain a building permit without waiting for an available allocation from the individual jurisdiction. An RUU is required for the development of a residential property in the Lake Tahoe Basin. RUUs can be owned and transferred by private and public buyers. The 15 RUUs were verified and banked through a TRPA process. The property has been restored and is currently vacant. The subject RUU will be used to construct a four-plex in the Round Hill/Zephyr Cove area of Douglas County. The Transfer of Land Use Commodities including RUUs outside the City limits is regulated by South Lake Tahoe City Code (SLTCC) Chapter 32 Sections through 67. SL TCC was revised in October 2013 to allow transfers of RU Us outside the City limits subject to approval of the City Council. SL TCC also grants the City Council the ability to require a fee in its sole discretion to offset the loss of property tax revenue to the City of South Lake Tahoe. Community Development Department Planning Division 1052 Tata Lane South Lake Tahoe, CA (530) (530) FAX

2 Transfer Residential Unit of Use to Douglas County November 5, 2013 Page 2 of 3 Staff is recommending that Council approve the request to transfer the privately owned Residential Unit of Use to Douglas County and impose the $12, fee that is approved on the 2013 Master Fee Schedule for transfers to El Dorado County. Residential units of use generate tax revenue to the City when a single family residence is constructed and transferring the RUU out of the City would result in the loss of that revenue. In 2006, the City Council approved a contract with Solimar Research Group to conduct a financial impact analysis regarding the transfer of residential development rights and residential units of use outside the City limits. The final report dated July 17, 2007 entitled "Evaluation and Suggested Policy Framework for the City's Transferable Development Rights" estimated that a median priced single-family residence would generate property tax revenues of $19, to the City. The report concluded that although the fee charged did not fully compensate for the property tax revenue and there would still be a negative net tax impact, there might be some public benefits from RUU transfers, including goodwill to another jurisdiction. Staff feels that since this RUU is being transferred to Zephyr Cove in Douglas County there could be some reciprocal economic benefits to the City's local economy due to the close proximity of shopping and restaurants in the city limits. STRATEGIC PLAN AND BUSINESS PLAN RELEVANCE: This project is not included in the adopted Business Plan because this is a privately owned land use commodity. However, the Residential Unit of Use exists because a blighted residential property was demolished, which contributes to the goal to "Improve the Built Environment".

3 Transfer Residential Unit of Use to Douglas County November 5, 2013 Page 3 of 3 FINANCIAL AND/OR POLICY IMPLICATIONS: The transfer of a Residential Unit of Use outside the City could result in a loss of residential property tax to the City. The approved fee of $12, on the 2013 Fee Schedule offsets that loss of revenue. ATTACHMENTS: Attachment A: Request from Clinton Schue to transfer RUU from the City to Douglas County Attachment B: City Code Section through SIGNATURES: By: Concurrence: J. y FifiA Associate Planner Reviewed and Approved by:

4 City of South Lake Tahoe ma/..! t 11~ a fi<1~ i Ii,.,. d i//f"' r1u11,. 11 u u RECEIVED TRANSFER OF DEVELOPMENTAPPLICATION (To be used/or Out of City Transfers Only) Type of Rights Being Transferred: \?_.e:'::;~~~' U V\\1-- 0.C--llfSe- +-.\)e.c~, 1 D Commercial Floor Area (CFA) Sending Parcel: D Tourist Accommodation Unit (TAU) fl~\.1\"'. ~ l}"t::-tt. ~ Lde- Q ~Jdue-- SiteAddress: s-r 0'6 QS<;oo9 ~ S:cl( ea- 1U fsu o/,.1/tj Assessor's Parcel Number: () d.-/-() g d-"'"") ~ l 2,).. ( ~ <> t 3 Lj: Property Owner Name,CS(oo<{) ~ Owner Phone#: 71')4'i'l (-OS-/ 4 Owner Mailing Address: f (J ~o X lf--5 {p City ~ c{ ~ State: }J J Zip Cede: i '7 '! 'f 'g Receiving Parcel: Site Address: SS"" ' ll V\ brrv-- CJ-: tr\<- Assessor's Parcel Number: \ 3 ( i - )-Y ~ f ~ 0 I ~ Property Owner Name: Al \J \\ \tald bo5 Owner Phone#: SX> 'S"Cf f.{j() 3 Owner Mailing Address: f? (.) ~ \ cj-6 7) CityS. L-~ +Ci\~<! Representative or Agent Name:e \ tlr\ ~ <;_,L.vt..e..- Mailing Address: (-/D 'De;~ l D ~ 7 ~ State: t4:: Zip Code: qt) td Phone#: S-~u -)~.?- ~7 J Y City:S- ~ 4..-~~ State: I.A- Zip Code: Clu ( s~ Rev Page 1 of3 ATTACHMENT A

5 Declaration: I hereby declare under penalty of perjury that this 'application and all information submitted as part of this application are true and accurate to the best of my knowledge. I am the owner(s) of the subject property or have been authorized to represent this application as the applicant. I understand that should any information or representation be submitted in connection with this application be incorrect or untrue, the City may rescind any approval or take other appropriate action. Fees /fe,o - ~#t- /tll Amount Paid: ~ 'JO ~ Received By:7JJ.. ~/J!f Date: 3-2-/~ 4 ~ Gsk...:-t ~ es -bjol,s ~ ~~ 1> PURPOSE: TRANSFER OF DEVELOPMENT APPLICATION INFORMATION FOR OUT OF CITY TRANSFERS The Tahoe Regional Planning Agency (TRP A) allows the transfer of several types of legally existing development from one parcel to another parcel. Only development legally banked or verified by TRP A as existing is eligible to be transferred. In addition to TRP A approval of transfers, approval from the City of South Lake Tahoe is required. The transfer of rights can have economic, social, or environmental impacts within the City, especially when rights are transferred out of the City. Transfers of CFA or TA Us from within to outside the Ci~y limits require review by the City Council. ========================================================================== INFORMATION ON SUBMITTING A COMPLETE APPLICATION Each application shall contain the following information. Some applications may require additional information. Consult with the counter planner ( ) to determine whether additional materials are required. If any required information is not provided, the application will not d"' be accepted. ~~ of Development Application and Fees [J.(1\uthorization to Transfer Rights Form Page2 of3

6 ld ~\\~ t, ~ of latest recorded grant deed for both the sending and receiving parcels Book Guarantee or Title Report for the sending parcel, issued within 30 days of the of transfer application submittal (l- (,~.I~.-t./:. ~,I Id::]" Verified land capability or IPES score for the sending and the receiving parcel(s) ~Written evidence the receiving parcel has applied for a project which will utilize the transferred coverage/use proposed in this application; i.e., a photocopy of a dated stamped application, a conditional permit, etc. g Evidence oftrpa approval of the transfer (Conditional Permit) For Transfers ofcfa or TAUs from Within To Outside the City In addition to the items above, the following information is required to be submitted with any application to transfer CF A or TA Us out of the City: I timeline, D A description and amounts of all taxes paid to the City associated with the CF A or TAUs on the sending parcel for the last five years (i.e. sales, tax, transient occupancy tax, property tax, etc.) D A description of the receiving parcel project, including an outline of project completion proposed operations, products or services provi.ded estimated annual revenue, tax payments, jobs created, potential local competitors, etc. D Describe the Sending parcel and any environmentally se~sitive, cultural, or historic. resources that would be preserved 'Q Indicate whether the Sending parcel is located in a Redeyelopment Plan Area D A description of the social, economic, or environmental benefits associated with the transfer (housing, infill, services, transit, sustainability, etc.) Note: Transfers of CPA or TA Us from within to outside the City will be subject to the following: Prior to the transfer of any TA Us or CPA outside the City limits, approvals shall be issued by the City for the Sending Parcel to be developed or redeveloped or the restoration of the Sending Parcel to its natural condition and/or any other projects conditioned by the transfer. If the transfer oftaus or CPA to the Receiving Parcel has not been completed within thirty-six (36) months of City approval, the transfer shall be void. The applicant may request one twelve ( 12) month extension from the City Council. Additional fees for any consulting services required to review the application or mitigation fees required by the City Council could be assessed. Any and all conditions of approval, imposed by the Council for the transfer shall be complied with prior to the transfer of the TA Us and/or CPA to the Receiving Parcel. In lieu of complying with the conditions of approval, the Council may, in its sole discretion, allow the applicant to submit an adequate surety, performance bond or other financial security acc~ptable to the City, to secure the completion of the conditions of approval. Page3 of3

7 32-63 valid for a period not to exceed the term specified by the granting authority. If a term is not so specified, such permit shall be valid until terminated or revoked. Each such use permit or variance granted and utilized shall run with the land, shall apply to the parcel specified in such use permit or variance, regardless of any change of ownership but may not be transferred to another parcel. H. Effective Date of Authorization. Each use permit or variance granted shall become effective and be issued no sooner than five business days after the date of the granting of such use permit or variance. If, prior to the expiration of such five-day period, an appeal is filed, the use permit or variance shall not be issued until the granting of the use permit or variance is affirmed on appeal. I. Reapplication Limitation. No application shall be reconsidered and no new application shall be considered by the zoning administrator or the planning commission for the same or a substantially similar use or variance upon the same property, whether by the same applicant or by some other person, previously acted upon by the commission within one year after the date of such action, unless the zoning administrator or the commission established that there has been a substantial change in the circumstances under consideration in the original proceedings or the original application was denied without prejudice. (Ord ; Ord. 902) Article VIII. Fee Schedule Fee schedule. By resolution, the city council will adopt a planning division fee schedule, which will be updated from time to time. (Ord. 902) Article IX. Transfer of Land Use Commodities Program purpose and intent, description and goals. A. Purpose and Intent. The provisions of this article set forth the requirements for regulating the transfer of land use commodities outside the city limits in conjunction with other provisions of this city code, the city's general plan, community plans and plan area statements. This article regulates, in an orderly fashion, growth and development within the city limits. The overriding purpose is to prohibit the transfer of tourist accommodation units and commercial floor area outside the city limits without the city receiving a benefit (i) economically, (ii) socially, and/or (iii) environmentally. The approval of the transfer of a land use commodity does not give the recipient thereof a right to develop a project. B. Applicability. No person shall construct a project or commence a use or activity which requires a transfer of land use commodities outside the city limits unless (a) approval of the transfer is obtained in accordance with this chapter; (b) the parcel the land use commodities are being transferred to is eligible to use the land use commodity; and ( c) the project, if any, on the sending parcel is approved by the city. The council may in its sole discretion approve, approve with conditions or deny the transfer of land use commodities outside the city limits. C. Description. 1. The transfer of land use commodities is a market-driven program involving willing sellers and willing buyers. The Tahoe Regional Planning Agency (TRPA) regulates the rate and timing of growth by, among other means, creating land use commodities in the Lake Tahoe Basin. Such commodities include: commercial floor area (CFA), tourist accommodation units (TAU s ), residential development rights (RDRs) and residential units of use (RUU). Each is required for some aspect of the development of residential, commercial, industrial, public service facilities and tourist properties and the commodities can be transferred by private and public buyers. 2. In developing this article, the city council has reviewed the transferability of land use commodities outside the city limits to develop appropriate standards, criteria, and land uses that reflect the long range needs of the city in light of current and future development, economics and environmental standards and to ensure that proper standards are crafted and adopted to address in particular the development and maintenance of TAUs and CFA. The transfer of additional TAUs and CF A outside the city limits will have a significant impact on the ability of the city to implement the goals of the general plan and the planning of the city. The goal is that prior to the transfer of CF A and TAUs outside the city limits there be specific findings made of economic, social or environmental benefits by the city council ofbenefit to the city. (Revised 10/10) ATTACHMENT B

8 South Lake Tahoe City Code Applicant shall fulfill the conditions of approval prior to the transfer of the TAU s or CF A or a bond or other security acceptable to the city shall be filed with the city to ensure the completion of said conditions of approval. D. Definitions. "City" means the city of South Lake Tahoe. "City council" or "council" means the governing body of the city. "Commercial floor area (CF A)" consists of the right to construct or retain built commercial square footage as authorized in Chapter 18, Table of Primary Uses, of the TRPA Code of Ordinances. "Land use commodities" means tourist accommodation units, commercial floor areas, residential development rights and residential units of use as defined herein and by the TRP A Code of Ordinances. "Receiving parcel" means a parcel outside city limits within the Tahoe Basin region that receives a land use commodity from the sending parcel. "Residential development right (RDR)" means the right to develop a residential use which is attached to certain parcels in the Tahoe Basin region in accordance with Section 21.6 of the TRP A Code of Ordinances. "Residential units of use (RUU)" represent legally existing residential units, as verified by TRPA. "Sending parcel" means the parcel or property within the city limits that is transferring the land use commodity outside the city to another area in the Tahoe Basin region. "Tahoe Basin region" or "region" includes Lake Tahoe, the adjacent parts of Douglas and Washoe Counties and Carson City, which for the purposes of the compact shall be deemed a county, lying within the Tahoe Basin in the state of Nevada and the adjacent parts of the counties of Placer and El Dorado (including but not limited to the city of South Lake Tahoe) lying within the Tahoe Basin in the state of California, and that additional adjacent part of the county of Placer outside of the Tahoe Basin in the state of California which lies southward and eastward of a line starting at the intersection of the basin crestline and the north boundary of section 1, thence west to the northwest comer of section 3, thence south to the intersection of the basin crestline and the west boundary of section 1 O; all sections referring to township 15 north, range 16 east, M.D.B. & M. (Tahoe Regional Plan Compact). "Tahoe Regional Planning Agency (TRP A)" means the bi-state (California and Nevada) agency created by the Tahoe Regional Planning Compact by the United States, and as may be amended from time to time. "Tourist accommodation units (TAU)" means one bedroom, or a group of two or more rooms with a bedroom, with or without cooking facilities, primarily designed to be rented by the day or week and occupied on a temporary basis, as defined in the TRPA Code of Ordinances. (Ord ) Transfer of tourist accommodation units and commercial floor areas outside city limits. 1. Commercial Floor Area (CF A) Transfers. a. Transfers of CF A from within the city limits to outside the city limits may be approved by city council if the council finds the transfer of CF A will benefit the city (i) economically, (ii) socially, and/or (iii) environmentally. The benefits to the city may include, but are not limited to, the payment of a mitigation fee to the city, environmental benefits to sensitive lands and providing low and moderate income housing. In addition, all transfers shall be conditioned on the development or redevelopment of the sending parcel or the restoration of the sending parcel to its natural condition. b. The council in making its findings on the benefit to the city of transferring CF A outside the city limits shall consider, but is not limited to, the following: i. The offset of lost tax opportunity of sales taxes, property taxes and tax increment (as applicable) for at least the next 30 years. ii. In determining a mitigation fee, the council shall consider the impact of the receiving parcel's development on the city's economy, including impacts on businesses and jobs in the city. iii. If the sending parcel transferring the CF As is located in a redevelopment plan area. iv. Whether the sending parcel contains environmentally sensitive land that the city desires to preserve. v. The social benefits including the provision of low and moderate income housing, infill projects, priority to services and transit, environ (Revised 10/13)

9 32-66 mental and sustainable buildings and other social benefits to the community. vi. The transfer of CF A must be found to be consistent with the goals and policies of the city's adopted general plan. 2. Tourist Accommodation Unit (TAU) Transfers. a. Transfers of TAUs from within the city limits to outside the city limits may be approved by the city council if the council finds the transfer of TA Us will benefit the city (i) economically, (ii) socially, and/or (iii) environmentally. The benefits to the city may include, but are not limited to, the payment of a mitigation fee to the city, environmental benefits to sensitive lands and providing low and moderate income housing. In addition, all transfers shall be conditioned on the development or redevelopment of the sending parcel or the restoration of the sending parcel to its natural condition. b. The council in making its findings on the benefit to the city of transferring TA Us outside the city limits shall consider, but is not limited to, the following: i. The offset of lost tax opportunity of transit occupancy taxes, sales taxes and property taxes for at least the next 30 years. ii. In determining a mitigation fee, the council shall consider the impact of the receiving parcel's development on the city's economy, including impacts on city businesses, hotels and motels, housing and jobs in the city. iii. If the sending parcel transferring the TAUs is located in a redevelopment plan area. iv. Whether the sending parcel contains environmentally sensitive land that the city desires to preserve. v. The social benefits including the provision of low and moderate income housing, infill projects, priority to services and transit, environmental and sustainable buildings and other social benefits to the community. vi. The transfer of TA Us must be found to be consistent with the goals and policies of the city's adopted general plan. (Ord ) Restrictions on all transfer of land use commodities outside the city limits. All transfers of land use commodities outside the city limits are subject to the following conditions and shall not be finalized until the applicant demonstrates the following: a. Prior to the transfer of any TA Us or CFA outside the city limits, approvals shall be issued by the city for the sending parcel to be developed or redeveloped or the restoration of the sending parcel to its natural condition and/or any other projects conditioned by the transfer. b. If the transfer oftaus or CFA to the receiving parcel has not been completed within 36 months of city approval, the transfer shall be void. The applicant may request one 12-month extension from the city council. c. Any and all conditions of approval, imposed by the council for the transfer shall be complied with prior to the transfer of the TAUs and/or CFA to the receiving parcel. In lieu of complying with the conditions of approval, the council may, in its sole discretion, allow the applicant to submit an adequate surety, performance bond or other financial security acceptable to the city, to secure the completion of the conditions of approvals. (Ord ) Restrictions on transfer ofresidential development rights and residential units of use. RDRs and RUU may be transferred outside the city limits subject to approval of city council. The city council may require a fee in its sole discretion for the transfer in order to offset the loss of property tax revenue. (Ord (Exh. A); Ord ) (Revised 10/13) 32-26

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