CHC 03-14-96 MINUTES OF THE REGULAR MEETING
OF THE AFFORDABLE HOUSING COMMITTEE
MARCH 14, 1996
CALL TO ORDER
Kathy Robinson called the meeting to order at 3:40 p.m.
Members Present:
Members Absent:
Kathy Robinson, Steve Smith, Dick Schuster,
Sylvia Machamer (arrived at 4:30)
None
Staff Present:
Vera Gil, Yvonne Kelley, Bob Cowan (arrived at 5:25)
Others Present:
Mary Ellen Cheil, Andrew Estigoy, William Wickwire, Ernest Piccone
John Hailey, Andre Bumett, Jill Collins, Susan Russell
Approval of Minutes:
Kathy Robinson wanted to clarify that the last sentence, paragraph 1 should state that "...which is
sometimes better than the housing they currently have if they are currently underhoused". Dick
Schuster moved to approve the minutes with the above mentioned correction, Steve Smith
seconded.
Vote: 3-0
Written Communications:
None
Oral Communications:
None
New Business:
1. Selection of Chairperson: Dick Schuster nominated Kathy Robinson as Chairperson and
Steve Smith as Vice Chairperson, Kathy seconded nomination for Vice Chair and Steve Smith
seconded nomination for Chair.
VOTE: 3-0
2. Request by Tandem Computer on Interpretation of Housing Mitigation Manual: Vera
Gil presented proposal by Tandem Computers requesting the City's consideration of housing
credits if they sell property to a developer and the developer builds housing on the property.
Staffs initial recommendation was to approve the project based on the developer building 31 Iow
and very low income units. After speaking to John Halley this afternoon, this recommendation
may have been presumptuous. John Halley and Ernie Picone are here and will present their
proposal to the Committee.
John Hailey stated that Tandem has been approached by developers inquiring about the
fruitpacking site at Wolfe and Pruneridge. Tandem is interested in selling this land to a
developer whereas they would produce housing and Tandem could receive the credit tbr "causing
to be built" housing units and that mitigation credits could be banked for a future increase in
office/industrial development. Emie Picone, Real Estate Manager for Tandem explained that
this site has been considered by office/commercial and residential developers. The price per
square foot ranges from $27.00 to $30.00 per square foot.
Dick Schuster questioned why Tandem would not just pay the in-lieu fee of $5.00. Mr. Halley
stated that he felt the General Plan encouraged housing rather than paying an in-lieu lee. He also
stated that the fee was the highest fee in the County. Dick Schuster asked tbr clarification on
Tandem's desire to double count units for housing and office/industrial. Mr. Schuster stated that
his interpretation of the housing manual was that these units are exclusive of one another and he
was not in favor of allowing Tandem to receive credit for "causing to be built" housing units
which will also meet the residential mitigation requirements. Mr. Halley explained that he
looked at this proposal as if Tandem were to build a housing project, they would only be required
to mitigate 10% of the total units constructed. He felt that Tandem would be very concerned if
the City would not accept the proposal and require additional units to be built based upon the
office/industrial mitigation and residential mitigation. Mr. Halley added that he had spoken to
Bob Cowan and Don Brown prior to his request for consideration and learned that the City did
not want a request for 40-50 units per acre, but more in the neighborhood of 20-25 units per acre.
Mr. Hailey also added the developer expressed a concern regarding the time it may take to make
a decision and his fight timeline for proceeding with this project.
Kathy Robinson was concemed that the BMR units and the required units will be counted as onc
in the same. The AHC would like to see as much affordable housing as possible and would
prefer that the two be separate and distinct. Ms. Robinson had no problem with Tandem
receiving credit for the units that are built prior to construction of any office development, but
would like to see additional units being built.
Dick Schuster stated that his interpretation of the Nexus Study leaves no doubt in his mind that
the creation of housing creates the need for affordable housing, therefore he would not be in
favor of double counting mitigation requirements for office/industrial and residential mitigation.
Vera Gil stated that her interpretation was that if Tandem were required to provide 45 units,
some of those being market rate and some being rent capped; they would produce those units
through their own efforts and find someone else to produce them. Ms. Gil added that anything
over that would be considered a residential development and the excess units would be subject to
the mitigation requirement. However, Bob Cowan's interpretation was if Tandem is causing
those units to be built and Tandem is also causing those excess units to be built and they would
be taking credit for both then they would not be subject to the mitigation requirement. Staff's'
overall concern is that the housing gets built and that there are low and very low units in the
mitigated units.
John Hailey is confident that Tandem and the City could work out the differences regarding the
below market units and rent capped units. At this point he is concerned about whether the
process works in reverse, i.e. housing being built before office/industrial is constructed and that
the credits would apply to Tandem.
Steve Smith commented on Tandem possibly selling the property to a commercial builder [br
$30 square foot, taking an approximate 1.5 million and paying the in-lieu tee and the City not
getting any housing on that property. He further stated that his opinion was that City and
Tandem could reach a reasonable compromise where it is a win/win situation.
Steve Smith suggested that due to the lateness of the hour and the need to approve the remaining
agenda items that we need to continue this item and schedule a special meeting to discuss this in
more detail.
3. 1997 CDBG Request: Vera Gil presented the annual requests for CDBG funding. The
requests received this year were from the CCS Rotating Shelter, the affordable housing
placement program, Social Advocates for Youth. Social Advocates for Youth proposal is new
and does not meet the priorities as set. However, the committee can recommend *hnding ol'
$9,375 for this year only. The program is for runaway or troubled youths to seek a "safe place"
until intervention can take place.
Mary Ellen Chell explained the rotating shelter program and its value to the community and
success in helping to transition homeless men into full employment and housing. The aflbrdable
housing program manages the BMR program and Chateau Cupertino. The demand [br this type
of housing is extraordinary.
Andre Bumett, Outreach Counselor for Social Advocates for Youth, spoke about the program
and explained the program as being a non-profit social & crisis intervention program Ibr youth in
Santa Clara Valley. The purpose of this particular element of the program is to identify
businesses where teens can go when they are in trouble to wait for intervention from a counselor.
The purposes of the request is to cover overhead, printing of flyers, cards to hand out to teens,
and small staff costs.
Vera Gil asked if the program has identified the target population here in Cupertino. She stated
that CDBG guidelines require that low and very low income families be target in order to
receive this funding. Mr. Burnett answered that he has spoken with CCS and will identify that
population and provide those numbers. Dick Schuster asked that program quarterly reports be
furnished to the committee.
Dick moved to accept staffs recommendation of this year's CDBG requests. Sylvia seconded.
Vote: 4-0
4. Request from the Housing Action Coalition to include AHC in planning a conference:
Vera Gil read a letter from Leslee Coleman asking the City to join in an outreach program.
Kathy Robinson asked that the Committee defer this item until the next meeting.
Adjournment: 5:35
The meeting is adjourned to Tuesday, March 26, 7:00 a.m.
SUBMITTED BY:
APPROVED BY:
Yvonne Kelley,
Admin. Secretary
ATTEST:
Kimberly Smith, City Clerk
c/windows/housing~ath31496
Kathy Robinson, Chairperson