RD:VMT:JMD 03/27/2017 RESOLUTION NO. A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN JOSE SPECIFYING THE COUNCIL'S DETERMINATIONS ON PROPOSED AMENDMENTS TO THE ENVISION SAN JOSE 2040 GENERAL PLAN PURSUANT TO TITLE 18 OF THE SAN JOSE MUNICIPAL CODE Spring 2017 General Plan Amendment Cycle (Spring 2017 General Plan Amendments including General Plan Text Amendments Pertaining to the Protection of Existing Mobilehome Park Residents, Little Portugal Urban Village Plan Amendment, and Roosevelt Urban Village Plan Amendment) WHEREAS, the City Council is authorized by Title 18 of the San Jose Municipal Code and state law to adopt and, from time to time, amend the General Plan governing the physical development of the City of San Jose; and WHEREAS, on November 1, 2011, the City Council adopted the General Plan entitled, "Envision San Jose 2040 General Plan, San Jose, California" by Resolution No. 76042, which General Plan has been amended from time to time (hereinafter the "General Plan"); and WHEREAS, on November 19, 2013, the City Council approved the Little Portugal Urban Village Plan and the Roosevelt Park Urban Village Plan (hereinafter respectively the "Little Portugal Urban Village Plan" and the "Roosevelt Park Urban Village Plan"); and WHEREAS, the original copies of the General Plan, Little Portugal Urban Village Plan, Roosevelt Park Urban Village Plan, and previous amendments to those documents are on file in the office of the Director of the Department of Planning, Building and Code Enforcement; and 1 T-1201.043/1401581. doc Council Agenda: 4-11-17 Item No.: 10.4 DRAFT - Contact the Office of the City Clerk at (408)535-1260 or CityCIerk@sanjoseca.gov for final document.
RD:VMT:JMD 03/27/2017 WHEREAS, in accordance with Title 18 of the San Jose Municipal Code, all general and specific plan amendment proposals are referred to the Planning Commission of the City of San Jose for review and recommendation prior to City Council consideration of the amendments; and WHEREAS, on January 13, 2016, the Planning Commission held a public hearing to consider the proposed approvals and text amendments to the General Plan pertaining to the protection of existing mobilehome park residents, File No. GPT15-006 specified in Exhibit "A" hereto ("Spring 2017 General Plan Amendments"), at which hearing interested persons were given the opportunity to appear and present their views with respect to said proposed amendments; and WHEREAS, at the conclusion of the public hearing, the Planning Commission transmitted its recommendations to the City Council on the proposed Spring 2017 General Plan Text Amendments; and WHEREAS, on February 23, 2016, the Council held a duly noticed public hearing and deferred to a time uncertain the Spring 2017 General Plan Text Amendments, to be heard at a later date; and WHEREAS, on November 16, 2016, the Planning Commission held a public hearing to consider the following proposed approvals and amendments to the Little Portugal Urban Village Plan and the Roosevelt Urban Village Plan, at which hearings interested persons were given the opportunity to appear and present their views with respect to said proposed amendments and plans: A. The Little Portugal Urban Village Plan amendments, Project/File No. GPT16-010 specified in Exhibit "B," hereto ("Little Portugal Urban Village Plan Amendments"); and 2 T-1201.043/1401581.doc Council Agenda: 4-11-17 Item No.: 10.4 DRAFT - Contact the Office of the City Clerk at (408)535-1260 or CityClerk@sanjoseca.gov for final document.
RD:VMT:JMD 03/27/2017 B. The Roosevelt Park Urban Village Plan amendments, Project/File No. GPT16-010 specified in Exhibit "C." hereto ("Roosevelt Park Urban Village Plan Amendments"). WHEREAS, at the conclusion of the public hearings, the Planning Commission transmitted its recommendations to the City Council on the proposed Spring 2017 General Plan Amendments, the Little Portugal Urban Village Plan Amendments, and the Roosevelt Park Urban Village Plan Amendments; and WHEREAS, on December 13, 2016 at 7:00 p.m., the Council held a duly noticed public hearing and dropped both the Little Portugal Urban Village Plan Amendments and the Roosevelt Park Urban Village Plan Amendments to be heard at a later date. WHEREAS, copies of the proposed Spring 2017 General Plan Amendments, the Little Portugal Urban Village Plan Amendments, and the Roosevelt Park Urban Village Plan Amendments are on file in the office of the Director of Planning, Building and Code Enforcement of the City, with copies submitted to the City Council for its consideration; and WHEREAS, pursuant to Title 18 of the San Jose Municipal Code, public notice was given that on April 11, 2017 at 1:30 p.m. and continued to 6:00 p.m. in the Council Chambers at City Hall, 200 East Santa Clara Street, San Jose, California, the Council would hold a public hearing where interested persons could appear, be heard, and present their views with respect to the proposed Spring 2017 General Plan Amendments, the Little Portugal Urban Village Plan Amendments and the Roosevelt Park Urban Village Plan Amendments (Exhibits "A," "B." and "C," respectively); and 3 T-1201.043/1401581.doc Council Agenda: 4-11-17 Item No.: 10.4 DRAFT - Contact the Office of the City Clerk at (408)535-1260 or CityClerk@sanjoseca.gov for final document.
RD:VMT:JMD 03/27/2017 WHEREAS, on April 11, 2017 at 1:30 p.m. and continued to 6:00 p.m. the Council held a duly noticed public hearing and gave all persons full opportunity to be heard and to present their views with respect to the proposed Spring 2017 General Plan Amendments, the Little Portugal Urban Village Plan Amendments, and the Roosevelt Park Urban Village Plan Amendments (Exhibits "A," "B," and "C," respectively); and WHEREAS, prior to making its determination on the Spring 2017 General Plan Amendments and the Little Portugal Urban Village Plan and the Roosevelt Park Urban Village Plan, the Council reviewed and considered all of the following environmental documents for the following projects: For the Spring 2017 General Plan Amendments (File No. GPT15-006) (Exhibit "A"), the Exemption for file number GPT15-006 pursuant to Section 15061(b)(3) because these changes provide additional policies and regulation for processes already authorized by State law and thus have no potential for causing a significant effect on the environment; and For the Little Portugal and Roosevelt Park Urban Village Plans (File No. GPT16-010) (Exhibits "B" and "C." respectively), the Envision San Jose 2040 General Plan Environmental Impact Report ("EIR") (certified by Resolution No. 76041), and Supplemental Environmental Impact Report to the Envision San Jose 2040 General Plan EIR (certified by Resolution No. 77517), and Addenda thereto for file number: GPT16-010; and WHEREAS, the Council is the decision-making body for the proposed Spring 2017 General Plan Amendments, the Little Portugal Urban Village Plan Amendments, and the Roosevelt Park Urban Village Plan Amendments. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE AS FOLLOWS: 4 T-1201.043/1401581.doc Council Agenda: 4-11-17 Item No.: 10.4 DRAFT - Contact the Office of the City Clerk at (408)535-1260 or CityClerk@sanjoseca.gov for final document.
RD:VMT:JMD 03/27/2017 SECTION 1. The Council's determinations regarding the Spring 2017 General Plan Amendments, Little Portugal Urban Village Plan Amendments, and the Roosevelt Park Urban Village Plan Amendments are hereby specified and set forth in Exhibits "A," "B," and "C." respectively, attached hereto and incorporated herein by reference. SECTION 2. This Resolution shall take effect thirty (30) days following the adoption of this Resolution. ADOPTED this day of, 2017, by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: ATTEST: SAM LICCARDO Mayor TONI J. TABER, CMC City Clerk 5 T-1201.043/1401581.doc Council Agenda: 4-11-17 Item No.: 10.4 DRAFT - Contact the Office of the City Clerk at (408)535-1260 or CityClerk@sanjoseca.gov for final document.
RD:VMT:JMD 03/27/2017 STATE OF CALIFORNIA ) ) ss COUNTY OF SANTA CLARA ) I hereby certify that the amendments to the San Jose General Plan specified in the attached Exhibits A, B, and C were adopted by the City Council of the City of San Jose on, as stated in its Resolution No.. Dated: TONI J. TABER, CMC City Clerk 6 T-1201.043/1401581.doc Council Agenda: 4-11-17 Item No.: 10.4 DRAFT - Contact the Office of the City Clerk at (408)535-1260 or CityClerk@sanjoseca.gov for final document.
RD:VMT:JMD 03/27/2017 EXHIBIT "A" Spring 2017 General Plan Amendments GPT15-006. Various amendments of the General Plan text as follows: 1. Amend General Plan text in Chapter 4, entitled "Quality of Life," "Housing" section as follows: a. Policies "Housing - Social Equity and Diversity" are hereby amended as follows: 1) Policy H-1.1 is hereby amended in its entirety to read as follows: "H-1.1 Through the development of new housing and the preservation and rehabilitation of existing housing, facilitate the creation of economically, culturally, and demographically diverse and integrated communities." 2) Policy H-1.11 is hereby added to read as follows: "H-1.11 Preserve existing mobilehome parks throughout the City in order to reduce and avoid the displacement of long-term residents, particularly senior citizens, the disabled, low-income persons, and families with school-age children, who may be required to move from the community due to a shortage of replacement mobilehome housing, and to maintain a variety of individual choices of tenure, type, price, and location of housing." b. Actions "Housing - Social Equity and Diversity" are hereby amended as follows: 1) Action H-1.11 is hereby renumbered as Action H-1.12. 2) Action H-1.12 is hereby renumbered to Action H-1.13. 3) Action H-1.13 is hereby renumbered to Action H-1.14. 4) Action H-1.14 is hereby renumbered to Action H-1.15. 5) Action H-1.15 is hereby renumbered to Action H-1.16. 7 T-1201.043/1401581.doc Council Agenda: 4-11-17 Item No.: 10.4 DRAFT - Contact the Office of the City Clerk at (408)535-1260 or CityClerk@sanjoseca.gov for final document.
RD:VMT:JMD 03/27/2017 6) Action H-1.16 is hereby renumbered to H-1.17. 7) Action H-1.17 is hereby renumbered to H-1.18. 8) Action H-1.18 is hereby renumbered to H-1.19. 9) Action H-1.20 is hereby added to read as follows "H-1.20 Encourage all proposed conversions of mobilehome parks to other uses to include mitigation measures that provide displaced residents with housing options that are affordable once any short-term subsidy has elapsed." 2. Amend General Plan text in Chapter 6, entitled "Land Use and Transportation," "Growth Areas" section, Goal LU-2 "Growth Areas" in its entirety to read as follows: "Goal LU-2 - Growth Areas Focus new growth into identified Growth Areas to preserve and protect the quality of existing neighborhoods, including mobilehome parks, while establishing new mixed use neighborhoods with a compact and dense form that is attractive to the City's projected demographics i.e., a young and senior population, and that supports walking, provides opportunities to incorporate retail and other services in a mixed-use format, and facilitates transit use." 3. Amend General Plan text in Chapter 7, entitled "Implementation," "Urban Village Planning" section, "Policies - Urban Village Planning" as follows: a. Policy IP-5.1, Section 2 is hereby amended in its entirety to read as follows: "2. Urban Village Boundaries and Land Uses: Identify potential adjustments to the identified Urban Village Boundaries and potential modifications to the Land Use / Transportation Diagram as necessary to best utilize existing land use growth capacity, address neighborhood context, and promote economic development through the identification of optimal sites for retail and other employment uses. Provide adequate job growth capacity for retail, office and other employment uses to accommodate both the existing levels of activity plus the planned amount of growth for each job type category. Identify and designate existing land uses, including but not limited to residential uses such as existing 8 T-1201.043/1401581. doc Council Agenda: 4-11-17 Item No.: 10.4 DRAFT - Contact the Office of the City Clerk at (408)535-1260 or CityCIerk@sanjoseca.gov for final document.
RD:VMT:JMD 03/27/2017 mobilehome parks, within the Urban Village Area boundaries, which should be retained rather than made available for redevelopment. Match the planned land uses for any areas within the Urban Village Area which have already been addressed through an overlapping Urban Village plan." b. Policy IP-5.4 is hereby amended in its entirety to read as follows: "IP-5.4 - Urban Village Planning Prepare and implement Urban Village Plans carefully, with sensitivity to concerns of the surrounding community, residents, and property owners and developers who propose redevelopment of properties within the Urban Village areas. Proceed generally in the order of the following timeline, although some steps may be taken concurrently: 1. City Council approves commencement of the Plan growth Horizon which includes the Urban Village Area during a Major General Plan Review. Completing Urban Village Plans for Urban Villages within the current Horizon is of greatest priority, but it is possible to prepare an Urban Village Plan for an Urban Village in an upcoming Horizon. 2. The City completes preparation of and Council reviews an Urban Village Plan. 3. The City or private property owners initiate rezoning for specific properties within the Urban Village as needed to implement the Urban Village Plan. Because most Urban Village sites initially have commercial zoning, rezoning will be necessary to provide for redevelopment and intensification with residential or residential mixed use projects on those sites. 4. Private property owners or developers propose individual site designs and building architecture to be reviewed and determined through a Development Permit application and review process." c. Policy IP-5.7 is hereby amended in its entirety to read as follows: "Carefully consider the best land uses and urban design standards for properties located along an Urban Village periphery to minimize potential land use conflicts with adjacent properties. In particular, address interfaces with established Residential Neighborhood areas including mobilehome parks." 9 T-1201.043/1401581. doc Council Agenda: 4-11 -17 Item No,: 10.4 DRAFT - Contact the Office of the City Clerk at (408)535-1260 or CityClerk@sanjoseca.gov for final document.
RD:VMT:JMD 03/27/2017 Citywide. CEQA: File No. PP10-068. Not a Project. General Procedure and Policymaking: Code or Policy change that involves no changes in the physical environment or even if it is a project it is exempt pursuant to Section 15061(b)(3) because these changes provide additional policies and regulation for processes already authorized by State law and thus have no potential for causing a significant effect on the environment;. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval of File No. GPT15-066 (1/13/2016) (6-0-0-1; Yob abstained). Council Action. 10 T-1201.043/1401581.doc Council Agenda: 4-11-17 Item No.: 10.4 DRAFT - Contact the Office of the City Clerk at (408)535-1260 or CityClerk@sanjoseca.gov for final document.
EXHIBIT "B" Proposed Updated Little Portugal Implementation Chapter This Chapter provides the framework for the implementation of the Little Portugal Urban Village Plan ("Plan"). The private development community will play a key role in the implementation of this Plan as it relies on development investment within the Plan area to achieve the identified improvements and many of the Plan's goals. While some sites in the Plan may generate early development interest, others could take significantly longer and implementation of the entire Little Portugal Urban Village ("Urban Village") could take many years. Continued community interest and political will is needed for the Urban Village to become the engaging, mixed-use, walkable, bikeable, and well-designed neighborhood envisioned in the Plan. With the end of the Redevelopment Agency program in California and San Jose ("City"), the City does not have the same level of resources from the Redevelopment Agency for capital improvements. Nevertheless, there are other steps the City can take to implement the Plan, including rezoning property within the Urban Village boundary to facilitate development consistent with the land use and urban design policies of this Plan. Implementation topics covered in this chapter include: H Consistency with the Envision San Jose General Plan Land Use " Zoning " Funding Mechanisms for Identified Public Improvements Affordable Housing Additional Financing and Implementation Strategies Implementation Actions A. Consistency with the General Plan The Little Portugal Urban Village Plan is consistent with the Envision San Jose 2040 General Plan ("General Plan"), and furthers implementation of the General Plan's Urban Village Major Strategy. The Urban Village Major Strategy was established as the policy framework to focus new job and housing growth to create walkable and bike-friendly Urban Villages with good access to transit, services, amenities, and other existing infrastructure and facilities. The General Plan phases the development of Urban Village areas into three development Horizons. The Little Portugal Urban Village Plan is part of a critical corridor between Downtown, Highway 101, and East San Jose. As such the Village was placed in the first Horizon of the General Plan to facilitate near term redevelopment. These Horizons are intended to phase the amount and location of new housing developments in order to achieve a more sustainable balance between jobs and housing. With an emphasis on growing new jobs in San Jose, these T-26714.003/1402068.doc 1
EXHIBIT "B" Horizons do not phase employment development, and jobs development can move forward in any of the Urban Villages at any time. With City Council approval of this Urban Village Plan, mixed-use residential development can move forward in this Village consistent with the goals and policies of both the Little Portugal Urban Village Plan and the General Plan. In particular, consideration of a residential mixed-use development needs to be consistent with the Implementation Strategy outlined in this Chapter. B. Land Use The Little Portugal Urban Village Plan is a long-term plan for new development within the Plan area and has the same implementation timeframe as the General Plan. New development within the boundaries of the Urban Village must conform to the standards included in this Plan, the most important of these standards being land use. The City has the following two primary land use controls (among others such as Specific Plans, Area Development Plans and Policies, etc.) that guide future development: 1) General Plan land use designations and 2) zoning districts found in Chapter 20 of San Jose the Municipal Code. With the adoption of this Plan, the land use designations identified on the Land Use Plan of this document are also incorporated into the General Plan Land Use/Transportation Diagram. Any future changes to the land use designations in the Plan will require an Amendment to the General Plan Land Use/Transportation Diagram. The General Plan land use designation identifies locations, types, and intensities of future development. New development is required to conform to the General Plan land use designation, which may require a rezoning of the property as part of the entitlement process for a proposed project. This Plan does not change the zoning districts to be consistent with the land use designations in the General Plan and this Plan. C. Zoning The City does not redevelop properties, but the City can and should take proactive steps to encourage development in the corridor. One key step will be to rezone the corridor with zoning districts that are consistent with the design guidelines and land uses policies of this Plan and will further the goals of this Plan. Rezoning the properties in the Little Portugal Urban Village would clear away a major entitlement hurdle for urban, pedestrian-oriented development. The present Commercial General (CG) Zoning District that is applied to most of the properties within the Little Portugal Urban Village boundary precludes the construction of a more urban, pedestrian-oriented development, as the CG District requires a 25-foot front setback. For most properties to develop consistent with the policies of this Plan, a developer would need to rezone to the Main Street or similar urban zoning district before proceeding with other development permits. To be consistent with the Urban Village Amenities Strategy discussed below, a City-initiated rezoning of the Urban Village area would not rezone any property within the Urban Village to allow mixed-use residential development and only allow commercial development consistent T-26714.003/1402068. doc 2
EXHIBIT "B" with the Plan. Any proposed mixed-use residential project would be required to rezone consistent with the Plan and meet the requirements of the jobs and housing balance in order to allow for residential uses. D. Public Improvement Implementation Program This Plan proposes a number of improvements within the Urban Village for which the City has some existing funding and implementation mechanisms. The City's established mechanisms, however, are often not sufficient to implement all of the improvements identified in this Plan. The public projects/improvements identified in the Plan are listed below with a discussion on existing funding and implementation mechanisms. 1. Parks, Trails, and Urban Plazas The goal of maintaining, enhancing, and expanding parks, trails, and urban plazas within the Plan area is discussed in the Trails and Urban Plazas Chapter of this Plan. Public parks, trails, and plazas are overseen by the City's Department of Parks, Recreation, and Neighborhood Services (PRNS). PRNS has a number of approaches to the development and financing of new public parks, trails, and plazas, all which contribute to the PRNS Capital Improvement Program (CIP): The Parkland Dedication and Park Impact Ordinances Construction and Conveyance Taxes Outside funding sources from grants, gifts, and other agencies like the County and State. Cooperative and Joint Use Agreements (most often with school districts or other public agencies) Bond Funding (when available) The PRNS CIP implements the Parks and Community Facilities component of the City's Adopted Capital Budget, which is approved by Council each June for the following fiscal year. The CIP is comprised of park, trail, and recreation facility projects throughout the City and is planned over a five year forecast. The most recent 2016-2021 Adopted CIP includes approximately $309 million in open space and park projects. Projects within the CIP are financed through a variety of funding mechanisms, described below. The City is, however, constantly in search of new tools to improve the City's park, trail, and recreational facilities, as well as vital services offered through PRNS. Parkland Dedication and Park Impact Ordinances (PDO/PIO) As the Urban Village develops, the primary and most direct funding mechanism for parks and trails is through the implementation of the Parkland Dedication Ordinance (PDO) and Park Impact Ordinances (PIO). Through the PDO/PIO, PRNS will receive in-lieu fees, land dedication, or turn-key improvements, or a combination thereof, with each new residential development. PDO/PIO land dedication and fees will help fund the development of trails, public parks, and where appropriate, urban plazas, serving the Plan area. Flowever, the PDO/PIO is wholly based on the development of new housing, and therefore, it is both a limited and inconsistent funding source. Further, the PDO/PIO are subject to state and federal law limitations on the amount of T-26714.003/1402068.doc 3
EXHIBIT "B" fees that may be required on each residential project as well as limitation on where the fees should be spent; the nexus" requirement, which means that that the fees collected are required to be spent within close proximity to the project. Even if all of the planned housing units in this Plan are built, a significant funding gap will remain for parks, plazas, and trail development within the Urban Village. Therefore, additional funding sources and community benefit tools will likely be needed in order to finance trail and urban plaza projects in the Urban Village. Construction and Conveyance Taxes The City collects taxes on construction of certain buildings and the conveyance of certain real property located within the City. A limited amount of these Construction and Conveyance Taxes (C&C) are allocated towards the development and rehabilitation of park and recreational facilities on an annual basis. Similar to the PDO/PIO, C&C taxes are somewhat market driven and an unreliable source of funding. While these revenues do not have a nexus requirement and would provide more flexibility than the PDO/PIO, C&C taxes must be allocated for various City facilities and services in accordance with a strict formula in the San Jose Municipal Code. As C&C taxes can be spent more flexibly, they are often used to support parks projects in areas not experiencing significant new residential development and where PDO/PIO funds are extremely limited. Grants, Gifts, and Partnership Funding Beyond the application of the PDO/PIO and C&C taxes as described above, PRNS frequently seeks grants from outside agencies and is occasionally the beneficiary of charitable donations or resources bequeathed to the City by private will. Both of these potential resources enable the City to achieve more within its own limited capacities, but are infrequent, often difficult to anticipate, apply to specific projects, and/or require re-allocation of staff resources away from scheduled projects. In addition, grant funding is most frequently awarded on a reimbursement basis which encumbers City funds to front the grant until reimbursement becomes available. PRNS is also able to enter into partnerships with developers to create privately owned publicly accessible open spaces (POPOS). This mechanism leverages private funds to create publicly accessible spaces and provides for their long-term care. An example of a POPOS could be an urban plaza that is developed as part of a private development and then maintained by the property owner, but is publicly accessible. Joint Use, Cooperative, and Partnership Agreements Throughout the City, PRNS has a number of Joint Use, Cooperative, and Partnership Agreements, which typically allow for public recreational use of non-city property, or in some cases, the provision of recreational services by non-city agencies/organizations on City property. Where opportunities are present within or serving the Urban Village, City staff may work with other agencies to develop mutually beneficial arrangements for the expansion of public parks and recreational facilities. T-26714.003/1402068.doc 4
EXHIBIT "B" Bond Funding San Jose has a strong track record of community investment in parks and recreational facilities through voter approved bond measures. Most recently, voters in 2000 approved Measure P for the issuance of $228 million in general obligation bonds for the improvements of parks and recreation facilities. This bond fund has contributed to major advancements in PRNS facilities, including upgrades to Happy Hollow Zoo, construction or rehabilitation of nine (9) community centers, trail expansion, and improvements to more than 69 neighborhood parks. At the time of adoption of this Plan, the Measure P Bond Fund will be engaged with completion of its final two funded projects, both City-wide sports field projects. There are currently no plans for additional parks and recreation bond measures, but it is likely that over the duration of this Plan such options may be presented for voter consideration. However, it is important to note that bond funding does not cover operation and maintenance of the new or improved park and recreational facilities. 2. Streetscape Amenities and Circulation Improvements Many streetscape and circulation improvements are identified in the Pedestrian Circulation chapter of this Plan. The proposed streetscape amenities and improvements presented exceed the City of San Jose's Department of Transportation (DOT) standard transportation requirements, and are not included in the DOT Capital Improvement Plans (CIPs) that fund street improvements and maintenance. Street and public infrastructure projects will need to be financed and implemented through a combination of public and private funding mechanisms. Through the entitlement process for new construction, a developer will be required to plant street trees where they do not exist in front of their development, as well as dedicate right-of-way as necessary for the widening of the sidewalk. In some instances, private developers could propose funding identified improvements because these improvements would add substantial appeal to their projects. For example, such improvements could include special pedestrian scale streetlights, sidewalk furniture, corner curb bulb-outs, enhanced landscaping, public art, etc. Street improvements could also include Green Infrastructure. Green Infrastructure incorporates stormwater management techniques into the built environment through enhanced landscaping and pervious surfaces rather than channeling water directly to the storm system. Regional, State, and Federal funds are other potential funding sources for the implementation of streetscape and circulation improvements. These sources do not, however, typically fund all on-going maintenance costs. To fund maintenance costs, as well as the capital improvement costs for additional services required by new development, a Special Financing District could be formed for the Little Portugal Urban Village. Special Districts are further discussed below. 3. Public Art The integration of public art within this Urban Village is a goal of the Plan. Public art can play a key role in reinforcing the visual identity of the area and add significant value to both public infrastructure and private development. T-26714.003/1402068.doc 5
EXHIBIT "B" The City's public art program allocates one percent of all eligible City of San Jose capital project costs towards the design, fabrication, and installation of public artwork to enhance the design and add to the character of the community served by its capital improvements. Public art funds within the City are managed by the Public Art Program/Office of Cultural Affairs, and specific projects are implemented in collaboration with stakeholders and capital project managers. Public art projects that are developed by outside agencies could also contribute to public art; however, a public arts contribution would have to be negotiated on a case-by case basis. As an example of an outside agency funding public art, Santa Clara Valley Transportation Authority (VTA) funded the public art enhancement program as part of the Bus Rapid Transit project along the East Santa Clara Street and Alum Rock Avenue corridor. A Special Financing District, such as a Business Improvement District, could be a resource for the creation and maintenance of public art and other amenities. Such districts have been established in Downtown San Jose and along Lincoln Avenue in the Willow Glen neighborhood Forming a Special Financing District for this Urban Village is an option that will be further discussed below in this chapter. While there is currently no private development funding requirement for public art, the inclusion of public art and public art maintenance into private development projects is highly encouraged, and is a demonstrated benefit for developers. For this Urban Village to meet its public art goals, additional funding sources or strategies need to be identified. As discussed in the Streetscape Chapter, this Plan recommends that the City explore expanding the one percent for public art program to private development by establishing a public art fee in the Little Portugal Urban Village as well as other Urban Villages. Similar funding strategies exist nationwide, producing impactful projects for developments and communities. E. Affordable Housing Providing more affordable housing is one of the greatest challenges facing San Jose, and providing affordable housing within the Urban Villages is a major goal of the Envision San Jose 2040 General Plan. In addition, the Plan also contains a policy to integrate affordable housing within the Urban Village. While sources of funding now exist for creating more affordable housing, additional measures are needed to incent its production. Presently, there are both financing and programmatic tools available to increase the amount of affordable housing in San Jose. The financing tools include Tax Exempt Bond Financing, where developers of mixed-income or 100 percent affordable rental properties can work with the City to issue tax-exempt bonds, the proceeds of which are administered as loans by conventional lenders. Developers that build 100 percent income-restricted housing can assemble a variety of funding sources to finance their project, including federal and state low-income housing tax credits, tax-exempt bond financing, federal project-based rental vouchers, and low-cost "soft" financing subsidies from the City, County, State, and Federal Home Loan Bank. The availability of some tax credits and most subsidy sources is typically very limited and not predictably available in all locations or at a large scale. T-26714.003/1402068.doc 6
EXHIBIT "B" The two programmatic tools to support the development of affordable housing are the City's Inclusionary Housing Ordinance and its Affordable Housing Impact Fee. On January 12, 2010, the City Council approved an Inclusionary Housing Ordinance which requires that new for-sale residential developments of 20 or more units include housing affordable and price-restricted to moderate-income purchasers. Developers may satisfy their Inclusionary Housing requirement by providing 15 percent affordable homes on-site within their projects, or through a variety of developer options including off-site construction of 20 percent affordable units, payment of the in-lieu fee, dedication of qualifying land in lieu of construction, purchasing surplus inclusionary housing credits from another developer, the acquisition and rehabilitation of existing units, providing deed-restricted units that are available to lower-income households through agreement between the developer and the U.S. Department of Housing and Urban Development, or any combination of these methods that will achieve the requisite amount of affordable housing. Because of litigation over the validity of this ordinance, the City was only able to implement this requirement in 2016 after it prevailed in the lawsuit. With regard to market-rate rental housing, the City Council adopted the Affordable Housing Impact Fee (AHIF) Program on November 18, 2014, and which took effect on July 1, 2016. AHIF requires new market-rate rental housing developments with three or more apartments to currently pay a one-time Affordable Housing Impact Fee of $17 per finished livable square foot. The City will use collected fees to subsidize the development of restricted affordable housing in San Jose for units serving prescribed income levels. F. Additional implementation Strategies Given that the existing funding mechanisms by themselves will not be adequate to implement many of the identified improvements and amenities in this Plan, additional funding mechanisms or other tools are needed. While future tools could include using local tax increment financing for community development purposes as authorized by the State, this Plan focuses on two currently available mechanisms. This Plan supports establishing some form of Special Financing District for the Urban Village. Each property that redevelops within the Urban Village would be required to be annexed into the district and assist in paying for the additional City facilities and services. This Plan also establishes an Urban Village Amenities Program as a strategy to provide the Urban Village community with amenities, including public art, affordable housing, additional open space or parkland, and street improvements, all as further discussed below. 1. Special Financing Districts As many of the streetscape and circulation improvements identified in this Plan are outside the Department of Transportation's (DOT) core services, and are typically not included in the DOT Capital Improvement Plans (CIPs), an additional funding mechanism will need to be established. The establishment of a Special Financing District could help finance the construction and/or maintenance of public infrastructure improvements within the Little Portugal Urban Village. A Special District Financing Strategy could take many forms, including a Property & Business T-26714.003/1402068.doc 7
EXHIBIT "B" Improvement District (PBID), a Community Business Improvement District (CBID), or a Business Improvement District (BID). PBIDs, CBIDs, and BIDs are Special Financing Districts established by local businesses and/or property owners as a "special benefit assessment" to fund maintenance and capital enhancements in a defined area ("District"). Special Financing District funds can also be used for marketing, small business assistance, maintenance, supplemental security services, public art, and special events. The assessments must be based on the benefit received and only special benefit can be assessed that are above and beyond the services already provided by the City. The funds are collected annually through the tax collector and distributed to an operating entity, typically a nonprofit organization or public/private enterprise established for this special purpose. The funds can be used on a "pay-as-you-go" basis, or can be used as the basis for a larger bond to be used over time. Special Financing District assessments may be placed upon businesses or on property owners or both depending on the type of district. In either case, the formation of the District must be approved by a simple majority of affected parties. Establishing a Special District is a two-step process. The first step is an affirmative petition to the City of over 50 percent of affected property and/or business owners in the District, with the votes weighted according to what each property and/or business owner would pay. The City would then prepare a ballot initiative to enact the Special District, which will pass if more than 50 percent of returned ballots indicate support, again weighted by each assessment. The City of San Jose supports the formation of Special Districts when the work within the District will; 1) contribute to the City's economic, social, environmental, or aesthetic enhancement; 2) the amount of the assessment is supported by the benefit derived; and 3) the operating entity is financially responsible and accounts for funds received and expended in the manner required by law. The City's Special Districts group in the Department of Public Works facilitates the formation and ongoing administration of these Districts. The cost to form these Special Districts must be covered by the applicant and is typically around $30,000. In addition, there are other similar funding mechanisms under State law that could also be explored to assist in the funding of City facilities and services. 2. Urban Village Amenities Program This Plan establishes an Urban Village Amenities Program as a tool to provide amenities for the community within the Urban Village. When property within the Urban Village develops, the Urban Village Amenities Program will provide a way for San Jose to derive greater benefit from new development in exchange for granting planning entitlements that increase the value of the property. For residential mixed-use development to be approved and constructed in the Little Portugal Urban Village area, such development will need to provide Urban Village Amenities that are above and beyond the contributions or improvements that are required by the City's existing public improvement funding requirements, as noted in Sections D and E described above. The Urban Village Amenities that would be sought are discussed below. T-26714.003/1402068.doc 8
EXHIBIT "B" In addition to providing the Urban Village Amenities listed below, residential mixed-use development must also conform to the Plan's land use and urban design policies, and include at least the minimum amount of commercial space prescribed in the Plan. It should be noted that a purely residential project is not allowed in the Roosevelt Urban Village Plan Area. A mixeduse residential project must exhibit high-quality architectural and site design features that create an attractive pedestrian-scale street presence, which enhances the character of the Little Portugal area and encourages further private investment, economic activity, and the provision of urban village amenities. a. Residential Mixed-Use Entitlement Process To be consistent with the goals, policies, and land use designations under this Plan and the General Plan, development proposals that include residential uses in a mixed-use project will require the approval of a Rezoning and development permit, which will establish the required Urban Village Amenities. In order to determine the appropriate level of Urban Village Amenities to be provided by a project, the applicant/developer shall fund the City's financial analysis of the value added to the project from the proposed change to residential uses in a mixed-use project versus that of a commercial only project. The ordinance or resolution containing the agreed upon Urban Village Amenities shall be considered by the City Council concurrently with a development permit. b. Principles for Securing Urban Village Amenities through the Entitlement Process The goal of this Urban Village Plan is to facilitate residential mixed-use development that is consistent with the objectives and policies of the Plan, while also securing additional contributions or improvements from this development that will further this Plan's implementation. To this end, the Plan includes the following principles to guide the process of securing Urban Village Amenities (UVA's) from residential mixed-use development: i. The amount and type of Urban Village Amenities provided will be negotiated between the developer and the City and will be based upon a sharing of the increase in value of the site attributable to residential uses. Some development could contribute towards multiple Amenities identified in this Plan, and other developments might provide more towards just one Amenity. ii. The level of Amenities provided by the Developer shall be reasonable and in proportion to the value added as a result of residential uses, but should not be at a level that would make mixed-use residential projects which are otherwise consistent with the Urban Village Plan financially infeasible. T-26714.003/1402068. doc 9
EXHIBIT "B" iii. The negotiation process and scope of Amenities should reflect market conditions in the local residential housing market and the appraised increase in value attributable to the proposed residential uses. iv. To identify how much financial capacity a given development would have to contribute towards Urban Village Amenities, a financial analysis/appraisal will be conducted by real estate economist for the City. Developers are expected to provide project information that would assist the City with this analysis and shall fund this financial analysis as part of the consideration of the entitlement process for the proposed residential use. c. Identified Urban Village Amenities The following are the identified Urban Village Amenities that will be sought as a part of the entitlement process for a residential mixed-use development. " Affordable Housing Affordable Housing is one of the highest priority Urban Village Amenities that may be secured by the City through this Urban Village Amenities program. The City's goal, as supported by the General Plan and the Housing Element, is to integrate well-managed restricted affordable housing in neighborhoods throughout the City, particularly in Urban Villages with their access to transit, and community and commercial amenities. This Plan, therefore, strongly encourages residential mixed-use developments to include deed restricted housing units on-site as one of their primary Urban Village Amenities. The amount and type of affordable housing units sought would depend on the particulars of a given development proposal and site. To be considered an Urban Village Amenity, development would need to integrate more deed restricted affordable housing units than the current baseline below or above what would be required by future amendments to City policies, programs, and ordinances, whichever is greater. The current baseline, for which developers would need to materially exceed to meet this Urban Village Amenity, is as follows: For-sale residential projects would need to create more affordable units and/or a deeper level of affordability, compared to the baseline standard of 15 percent of homes affordable to moderate-income households with maximum incomes at 120 percent Area Median Income (AMI). Rental residential projects would need to provide more affordable units and/or a deeper level of affordability, compared to the baseline standard of 9 percent of apartments affordable to moderate-income households with maximum incomes at 80 percent AMI and 6 percent of apartments affordable to very-low income households at or below 50 percent AMI. Note that certain deed T-26714.003/1402068.doc 10
EXHIBIT "B" restricted affordable rental units earn reduced housing impact fees, as outlined in the City's Affordable Housing Impact Fee program. Exemption for Affordable Projects Individual developments that offer 100 percent restricted low, very-low, extremely-low, and/or moderate affordable housing ("Affordable Housing") are considered an Urban Village Amenity in and of themselves; therefore, development of this housing is encouraged wherever possible in locations close to transit, commercial, and other community amenities. Projects that are 100 percent Affordable Housing would not need to provide additional Urban Village Amenities, but would still need to be consistent with the goals and policies of this Plan, and would need to provide at least the minimum amount of employment/commercial space identified for a given area by the Plan. Five Wounds Trail Improvements Development of the Five Wounds Trail is a high priority Urban Village Amenity for which there is limited funding. Residential development is encouraged to contribute towards the design and development of the trail. Through the Urban Village Amenities Program, new development could fund from the agreed upon increase in value from the residential project the development of the trail or special assistance to the City for acquisition of the trail right-of way, or improve and/or dedicate land for the trail; any of these efforts that are above and beyond the required contributions of the Parks Impact Fee would be considered an Urban Village Amenity. Urban Plazas While private, but publicly-accessible urban plazas are a desired amenity on this Plan, there is inadequate funding mechanisms to build and maintain these amenities. Through the Urban Village Amenities Program, new development could pay additional fees to the City, provide or finance maintenance on City facilities, or improve and/or dedicate land for public plazas. Development could also incorporate plazas into their development that are publicly accessible, but privately maintained. These spaces are often called Privately-Owned Public Open Spaces (POPOS). " Streetscape Amenities Contributions for identified streetscape amenities that go above and beyond standard City requirements could be considered Urban Village Amenities. These include street furniture, pedestrian scale lighting, drinking fountains, historic placards, integrated public art, street banners, and attractive trash and recycling receptacles. Streetscape amenities can also include landscaping within the park strip and at corners that will beautify the corridor. The preference is that development projects construct and maintain these amenities, but monitory contributions could be considered if construction is not feasible or appropriate. Landscaping Improvements should only be provided if there is a written agreement that these improvements are to be maintained T-26714.003/1402068.doc 11
EXHIBIT "B" by the property owner or there is an established Special Financing District to provide ongoing maintenance. Circulation Improvements This Plan calls for circulation improvements like corner bulb-outs, enhanced sidewalks, enhanced crosswalks, and the incorporation of green infrastructure in sidewalks and urban plazas. Improving pedestrian facilities like these can go towards meeting the Urban Village Amenities Program requirements. In addition to pedestrian circulation, certain parking improvements called out in the Plan that go above and beyond typical development requirements can also be considered Urban Village Amenities. Public Art To encourage the integration of public art within the Little Portugal Urban Village, development could incorporate public art within the project, or contribute money to fund public art elsewhere within Urban Village area. Developers that include public art within their project should engage the community on the design and content of the artwork. Another option is to include a public artist on the project development design team for a more integrated approach to aesthetic enhancements. The Office of Cultural Affairs can provide developers with assistance on the design and selection process. For art pieces on public property, the Office of Cultural Affairs would manage the Public Art process and engage the community in the selection of artists. Alternatively, a project can provide publicly-accessible private art that is viewable from a public right-of-way, but located on private property. The key difference from public art is that this art would be privately developed and maintained. The City would only control the location and size in regards to setback and height regulations. " Commercial Development Should a residential mixed-use project construct commercial space at 50 percent or more above the minimum commercial space requirement under this Plan, it can be considered as a community benefit that goes towards meeting the Urban Village Amenity requirements. As with all Urban Villages throughout San Jose, entirely commercial development that is in keeping with the applicable Zoning Ordinance and General Plan Land Use Designation can move forward at any time and is exempt from providing the additional Urban Village Amenities described in this section. " Special Financing District If it is demonstrated that a majority of the property and/or business owners along the corridor or within a portion of the corridor are interested in establishing a Special Financing District, a developer could fund the City costs and other outside costs associated with establishing this District. If and when a property based District is established, one of the Urban Village Amenities that would be requested would be for the property owner to join such District. T-26714.003/1402068.doc 12