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PURPOSE:
The
purpose of this report is for the City Council and Redevelopment Agency to
consider the development of a Housing and Childcare Center Demonstration
Project by M. David Paul and Associates including Planned Development No.
2000-3 (PD), a Disposition and Development Agreement (DDA) and related
documents.
BACKGROUND:
The
lack of quality and affordable childcare services has been a widely recognized
problem facing states and localities across the nation.
In recognition of this problem, the City developed a Childcare Master
Plan to determine the childcare needs within the City and identify ways to
increase the amount of quality childcare throughout the City. Reflecting the nationwide trends, the Master Plan determined
that there is a chronic shortage of childcare for infants (0-2 years old), and
a substantial shortage of childcare for toddlers and pre-schoolers (2-5 years
old).
In
response to these shortages, the City Council formed a Policy Group to study
the development of a Childcare Center Demonstration Project to facilitate the
development of quality childcare centers within the City. The Policy Group set
specific goals for the Demonstration Project including the following:
1.
The Demonstration Project should specifically address the lack of
infant care within the City.
2.
A percentage of the childcare spaces should be available at affordable
levels.
3.
The Center should be designed and operated in a high quality fashion.
4.
If possible, the Center should not be constructed with funds from the
City�s General fund, nor should it operate with any ongoing subsidy from the
City or Redevelopment Agency.
 It was
also recommended that the Demonstration Project be located in the Golden State
neighborhood near the Airport. The
City and Redevelopment Agency have targeted this multi-family neighborhood for
revitalization efforts due to numerous factors that have led to the
deterioration of the neighborhood. The
Golden State neighborhood and the proposed location of the Demonstration
Project are illustrated on the map.
The
Burbank Redevelopment Agency approved the acquisition of select properties to
develop the childcare center in conjunction with a housing project, utilizing
Redevelopment 20% Set-aside Funds for affordable housing.
The Agency strategically acquired those properties that were in the
poorest condition, so that the new improvements would have the greatest impact
on improving the appearance of the entire neighborhood.
A
total of eight properties were acquired ranging from vacant lots,
non-conforming businesses, and substandard apartment buildings.
All of the residents and businesses have been relocated with the
assistance of a variety of relocation benefits from the Agency, and the site
has been cleared of all buildings and is ready for development.
The
Redevelopment Agency issued a Request For Proposal (RFP) to select a developer
to build the proposed Housing and Childcare Center Demonstration Project.
The RFP specifically requested that developers build an ownership
housing project, to bring more stability into the multi-family neighborhood,
while also offering new homebuying opportunities in the City.
After
reviewing the developer proposals, the Agency ultimately selected M. David
Paul to develop the project. M.
David Paul proposed to develop 20 small-lot single-family homes along with an
8,600 square foot childcare center. The
plans for the project have been circulated among the various City Departments
to receive comments on the design and various entitlements necessary for the
construction of the project.
PROJECT
DESIGN AND ENTITLEMENTS
DESIGN
 The
20 homes are designed as a cluster housing project typified by small lots
offset by adjacent common open space areas (Exhibit �A�). Each home is
3-stories in height and will contain three bedrooms, or 2-bedrooms plus a den
with the parking located within the first floor garage.
The average lot size is approximately 1,175 square feet, and the
average square feet of the homes are 1,400 square feet.
The childcare
center is a one-story building containing approximately 8,600 square feet,
which can accommodate approximately 92 children (Exhibit �A�). The childcare center includes a playground to the rear of the
building, and a 12-space parking lot to accommodate the drop-off of the
children during the weekdays. This
parking lot also serves as guest parking for the homes during evenings and
weekends. Employee parking will
be provided across the street in the Media Center North office project.
The architectural style of the childcare center and the homes utilizes
�Cape Cod� features and elements.
PLANNED
DEVELOPMENT AND OTHER ENTITLEMENTS
The
zoning of the property is R-4 Residential Multi-Family Medium Density.
However, the project has characteristics of both single-family and
multi-family development. This cluster style housing found in many new housing
developments contain development standards, which currently are not reflected
in the Burbank Municipal Code. These
alternative design standards may be considered on their merit through the
Planned Development process allowed by the code.
As
discussed below, staff believes that the proposed modifications meet the
intent of the Planned Development provisions in the code.
The following exceptions are being proposed under the Planned
Development as alternatives to the R-4 development standards specified in the
code:
1. Exceptions
a.
Lot Area � The
Burbank Municipal Code states that each standard single family lot shall have
a minimum of 6,000 square feet. The
proposed residential lots have been designed with lot sizes of 1,131 square
feet and 1,218 square feet in size. This
is typical of a cluster housing project with small lots offset by adjacent
common open space. In this case,
the project includes 11,338 square feet of common open space areas for the
entire project, which will be owned and maintained by a homeowners
association.
b.
Front Yard Setbacks�
R-4 residential lots require a front yard not less than fifteen feet deep. The
proposed residential lots have been designed with a maximum of seven-foot
(7�) front yards. The front
yards would be designed as landscaped �aprons� to a traditional front
porch treatment for each dwelling.
c.
Side, and Rear Yard Setbacks - Each residential lot shall
have a side and rear yard not less than five feet (5�) deep.
The proposed residential lots have been designed with seven-foot (7�)
side yards setbacks and zero (0�) rear yard setbacks. All �rear yards�
would be adjacent to an open driveway. Since
the planned development site plan would control issuance of building permits
for the project, each unit would be separated by a minimum of seven (7) feet. All rear yards would e adjacent to an open driveway.
d.
Lot Coverage � No more than sixty (60) percent of the lot
area shall be occupied by buildings. The
proposed dwellings have been designed with eight (8) lots having sixty-five
percent (65%) lot coverage while the remaining twelve (12) lots would meet
this lot coverage requirement with a maximum of sixty percent (60%).
This is without counting adjacent common open space.
e.
Lot Dimensions � The Burbank Municipal Code states that
each lot shall have a minimum width of fifty feet (50�) and a minimum depth
of one hundred feet (100�). The
proposed site plan indicates that most lots will have a width of 28 feet and a
depth of 43.5 feet. This yields a
lot area of 1,131 square feet. Several
other lots with slightly larger dimensions have an area of 1,218 square feet. Again this is typical of cluster home development with small
lots offset by adjacent common open space.
f.
Childcare Center Setbacks � The underlying zone is R-4
which requires the front yard setback to have a minimum of fifteen (15) feet. The proposed childcare center has been designed with reduced
setbacks that have a minimum of three (3) feet at its lowest point while
tapering to seven feet eight inches (7�8�) and again to ten feet five
inches (10�5�) at it�s widest point.
It should be noted that the childcare committee has recommended that
the play yard should be placed in an area away from the street.
Due to lot size constraints, play yard specifications as per state
regulations, and safety concerns, the project has been designed in its
proposed configuration. As
mitigation for this small setback from the street, the daycare center fa�ade
has been designed to provide visual relief along the Ontario Street frontage.
g.
Childcare Center use in an R-4 Zone - The Burbank Municipal
Code allows a public or private educational institution (childcare facility)
to be operated in a R-4 residential multi-family medium density zone upon the
granting of a conditional use permit. It
is staff�s assessment that a childcare facility is compatible with the
proposed residential development and the other multi-family residential
dwellings in the vicinity, particularly as a transition from the office
complex across the street to multi-family residential.
In this case, discretionary review and approval of the Planned
Development would take the place of a conditional use permit approval.
h.
Comparison Summary Table -
The table below summarizes in more comprehensive detail the comparison of
R-1 and R-4 development standards with the features of the proposed project.
|
Comparison
of Burbank Municipal Code Standards to Proposed Project
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|
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R-1
|
R-4
|
Proposed
Residential Dwellings
|
Proposed
Child Care Center
|
|
Density
|
7
d.u./ac.
|
58
d.u./ac.
|
20
d.u./ac.
|
N/A
|
|
Lot
Area
|
6,000
sf
|
6,000
sf
|
1,218
sf
|
*23,171
sf
|
|
Lot
Coverage
|
60%
|
70%
|
60%
/ 65%
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*37%
|
|
Front
Yard Setback
|
25�
|
15�
|
7�
|
3�
/ 7�8� / 10�5�
|
|
Side
Yard Setback
|
5�
|
5�
|
7�
/ 0�
|
*5�
/ 70�
|
|
Rear
Yard Setback
|
0-5�
|
5�
|
0
|
*5�
|
|
Lot
Dimensions
|
50x100
|
50x100
|
28x43.5
|
*174�
x 136�
|
|
Second
Story Setback
|
N/A
|
5�
|
**N/A
|
N/A
|
|
Guest
Parking
|
N/A
|
1
per 5 d.u.
|
12
Shared
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*12
On-Site
*12
Off-Site
|
|
Common
Open Space
|
N/A
|
150
sf per unit
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*
566 sf per unit
|
N/A
|
|
Private
Open Space
|
N/A
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50
sf per unit
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*50
sf per unit
|
N/A
|
|
Landscaping
|
N/A
|
15%
of Lot
|
*
11,338 sf total c.o.s.
|
*Yes
|
|
Building
Entries
|
N/A
|
Entry
or Alcove
|
**
N/A
|
N/A
|
|
Outdoor
Amenities
|
N/A
|
Yes
|
In
Open Space Areas
|
N/A
|
|
Trash
Enclosure
|
N/A
|
Yes
|
Individual
Containers
|
Yes
|
|
Balcony
Design
|
N/A
|
Yes
|
Yes
|
N/A
|
|
Fa�ade
Requirements
|
N/A
|
Yes
|
**N/A
|
N/A
|
|
Driveways
|
N/A
|
Decorative
Paving
|
**N/A
|
N/A
|
*
Note: The following
section 3 meets or exceeds the requirements of either the single-family or
multi-family residential development standards.
**
The R-1 development standards have been applied to this section and are
therefore non-applicable.
2.
Permitted and Conditional Uses
The
property development standards for the proposed project shall be those set
forth by the project development plan, and the development agreement,
including but not limited to, permitted uses, density, setbacks, and
landscaping. All uses not specifically mentioned are by default prohibited
uses.
3.
Interdepartmental Review Comments:
The
subject application and plans were routed to city departments for review and
comment on August 14, 2000. The recommended conditions of approval and list of
code requirements that cover these comments are in the Development Agreement
(Exhibit �B�).
4.
Mitigated Negative Declaration:
Consistent
with the provisions of the California Environmental Quality Act (CEQA), a
mitigated negative declaration has been prepared (Exhibit �C�). This document indicates that with the mitigation measures
proposed, this project will not have a significant adverse affect on the
environment. A comprehensive list
of mitigation measures is included within this document. These mitigation
measures are also included in the recommended conditions of approval.
Issues addressed in the �Initial Study� upon which the mitigated
negative declaration is based include the following:
a.
Traffic: Transportation
planning staff prepared a Trip Generation Impact Study dated 9/28/00, that
concludes that no significant traffic impacts are anticipated as a result of
the development of this project.
b.
Parking: Although
the Burbank Municipal Code does not require guest parking for single family
dwellings, guest parking would be available by allowing the utilization of
idle childcare center parking during non business hours of the childcare
facility. As per a report dated
November 13, 2000, Crain & Associates has reviewed the shared parking
concept between residential guest parking and unoccupied childcare facility
parking and has concluded that this can be accomplished successfully.
Guests would be allowed to park within the childcare center parking lot
during evening hours Monday through Friday and all day on weekends.
c.
Noise: Typically
the intent of the California Environmental Quality Act (CEQA) is to analyze
the effects that the project would have on its physical environment.
However, in this case the physical environment could potentially have a
significant effect on project residents caused by the ambient noise from
nearby noise generators such as the Burbank-Glendale-Pasadena Airport. To
mitigate any potentially significant effects on the residential dwellings
and/or occupants of the childcare center, the developer shall provide a noise
attenuation analysis to determine the extent of how much mitigation would be
required to reduce noise levels to acceptable levels.
Additionally, the proposed buildings shall be designed in such a manner
that the interior spaces are exposed to a weighted day/night noise level (Ldn)
of no more than 45 decibels (dB). Some
recommendations to satisfy this requirement would be as follows:
�
Installing sound-rated windows suitable for the noise reduction
required;
�
Configuring and insulating exterior walls and roofing systems to
reduce the interior noise to acceptable levels; and
�
Complying with the recommendations prescribed within the
required noise attenuation analysis.
5.
Vesting Tentative Tract Map:
The
proposed project incorporates a Vesting Tentative Tract Map, which creates a
total of twenty-two (22) lots with Lot 1 designed for the childcare center.
Lot 2 is designed to include all the common areas controlled by a
homeowners association and lots 3-20 have been designed for individually owned
residential dwelling units (Exhibit �D�).
Utility and vehicle access easements shall be provided within the
childcare center driveway.
6.
Notice:
Notice
of the proposed project was published in the Burbank Leader and mailed to
property owners and tenants within a 1000-foot radius of the subject property
on January 31, 2001.
7.
Development Agreement:
A
Development Agreement, which includes a list of the proposed Conditions of
Approval has been prepared (Exhibit �B�).
PLANNING
BOARD HEARING
A
hearing on the Planned Development, Vesting Tract Map and Mitigated Negative
Declaration was held by the Planning Board on February 12, 2001, and
subsequently rescheduled to May 14, 2001.
At the May 14th hearing, the Planning Board voted (3-2) to
adopt Resolution No. 2820 recommending that the City Council approve the
proposed entitlements as requested by M. David Paul & Associates.
Board members Vander Borght, Jackson, and Olsen voted in support of the
project, while Board members Berlin and Hunt voted against the project due to
concerns of incompatibility with
the nearby airport.
DISPOSITION
AND DEVELOPMENT AGREEMENT
While
the Planned Development and related documents were being prepared, the Agency
was also working with the developer to conclude the major terms for conveying
the site to the developer and the terms for developing the improvements.
These parameters are outlined in the Disposition and Development
Agreement (Exhibit �E�). The
major deal points are summarized as follows:
1.
The Agency will sell the entire site consisting of approximately 1.56
acres to the developer for one dollar. The
site will be sold clear of buildings and utilities.
2.
The developer will construct 20 detached homes averaging 1,400 square
feet on approximately two-thirds of the site. In addition, the developer will construct the shell of an
8,600 square foot childcare center and a drop-off parking area on the
remaining one-third of the site.
3.
Once completed, the developer will sell the childcare center including
the underlying land to a non-profit organization identified by the Agency for
one dollar. With the Agency�s
assistance, the non-profit organization will complete the interior
improvements to the facility. In
addition, the Agency will be responsible for installing the electrical
transformers for the site.
4.
The developer will sell 10 of the homes to buyers whose incomes are
restricted to moderate income levels (120% of median income), at a sales price
of $190,000 each. The remaining
10 homes will be sold on a market rate basis estimated at $225,000.
The Agency will retain a promissory note on the 10 restricted income
households for the difference between the $190,000 purchase price, and the
fair market value of the homes ($225,000 - $190,000 = $35,000). If the
homebuyer remains in the home for 30 years, the loan will be forgiven.
If the homebuyer sells the home to another income-restricted homebuyer
before the 30-year period expires, the note may be assigned to the new
homebuyer. If, however, the
homebuyer sells the home prior to the end of 30 years to a non-qualified
buyer, the Agency shall receive the entire amount of the note ($35,000) plus a
share in the appreciation of the home value.
The intent of the promissory note is to continue targeting these homes
to moderate income households for as long as reasonably possible as required
under Redevelopment Law.
5.
In addition to the promissory note on the moderate-income homes,
the Agency shall also receive 50% of the net profits on the market-rate
homes for any home that sells in excess of $240,000.
For example, if the home sells for $250,000, the Agency will receive
50% of $10,000, or $5,000. The
intent of this provision is to restrict the developer from receiving excess
profits should the housing market improve markedly.
CHILDCARE
CENTER
While
the 20 new homes are intended to improve the existing conditions in the
multi-family neighborhood, an equally important goal for this project is to
provide quality childcare for the community.
Part of the reason that there is such a shortage of childcare centers
is that there is little incentive for the private sector to construct centers,
because there is virtually no profit in doing so.
The only two privately developed centers in Burbank were built by
Warner Bros. and Disney. Both
were built to recruit and retain employees, and are not available to the
public.
The
only other center-based providers are owned by the School District (Horace
Mann) and the YMCA, which are both non-profit owner/operators.
In previous reports to the Agency, it was demonstrated that the revenue
generated from tuition fees usually just covers the operating costs necessary
to run the centers. This leaves
virtually no resources for major capital costs associated with land
acquisition and the construction of the center. The capital costs associated
with land acquisition and construction are the main obstacles for having more
center-based care.
The
utilization of Redevelopment Agency funds for site assemblage in partnership
with a housing developer who will construct the shell of the childcare center,
allows the Demonstration Project to overcome the obstacles associated with
these capital costs. However, to
accomplish this, and maintain a high percentage of affordable units in the
housing project, the DDA proposes to waive the Agency�s policy of
encouraging the use of prevailing wages by the developer, and the non-profit
organization that will own and construct the interior improvements of the
childcare center. This
recommendation is consistent with other affordable housing projects undertaken
by the Agency.
Even
with the Agency�s assistance, the non-profit owner of the childcare center
may still need to obtain additional resources for operating the center. The
current plan for the childcare center is to accommodate 92 children. This includes 12 spaces for infant care. Many childcare
centers do not provide infant care because of the high cost associated with
the staff levels needed for infant care, which requires a high staffing ratio
that is often prohibitively expensive.
In fact, to ensure that the center operates to the level of the highest
accreditation standards, high staffing levels are proposed for all age groups.
The City�s Childcare Committee felt it was particularly important
that the Center operates at the highest standard, if the Demonstration Project
was to be a model for future centers. Furthermore, it is proposed that the
Center reserve as much as 20% of the spaces at subsidized tuition rates.
The impact these program targets have on the operation costs can be
quite costly.
To
address these operational issues, staff is looking at three possible funding
sources to supplement the tuition fees for the Center.
The funding sources include: 1) Federal, State and local grant programs
for childcare; 2) partnerships with local businesses that could help subsidize
the operation of the center; and, 3) funding from the non-profit corporation
that will ultimately own the facility. Staff
is already in discussions with the non-profit Burbank Housing Corporation as a
potential owner of the facility. The
Burbank Housing Corporation may be able to utilize rent revenue from its
housing portfolio as a means to provide additional support, similar to the way
the Burbank Housing Corporation funds the operation of the Achievement Center
on Elmwood Avenue.
By
utilizing Redevelopment Agency funds to assist with the capital improvements,
and with the other operational funding sources being targeted, a quality
childcare center should be able to be built and operated without requiring any
assistance from the City�s General Fund.
SUMMARY
REPORT
Section
33433 of the California Health and Safety Code requires a Summary Report to be
prepared to address the economics of the proposed Disposition and Development
Agreement (Exhibit �F�). The
Summary Report, among other things, looks at the salient points of the
Agreement and analyzes the cost of the Agreement to the Agency and addresses
the re-use value of the properties being sold.
Most
of the Agency costs are associated with land acquisition, relocation and
demolition. The Agency is also responsible for certain utility improvements
and interior improvements to the childcare center, which will be undertaken by
the non-profit organization that will own and operate the childcare center.
Since this project is located outside of a Redevelopment Project Area,
there will not be any tax increment revenue generated from the project.
The following outlines the costs to the Agency.
Site Acquisition
$2,248,500
Relocation
426,400
Demolition
257,300
Utility Relocation
75,000
Electrical Transformer Installation
75,000
Interior Improvements for the Childcare Center
385,000
Total Cost to the Agency
$3,467,200
FISCAL IMPACT:
The
Agency has budgeted and carried-over $3,470,000 in the FY 2000-01 Annual
Budget.
CONCLUSIONS:
The proposed
Housing and Childcare Center Demonstration Project has several important
goals. The project removes
substandard apartment buildings and non-conforming business uses, and replaces
them with single family homes. These
homes will offer new homeownership opportunities, and provide more stability
into the multi-family neighborhood, which has suffered the negative affects of
a transitory resident base. More
importantly, the project offers the City and Agency an opportunity to help
alleviate the major shortage of quality childcare in the City without using
the City�s General Fund that is earmarked for other City services such as
Police, Fire, Parks and Recreation services.
The Childcare Center also offers a special amenity to the immediate
neighborhood including the opportunity for more affordable, quality childcare.
In a sense, this project will serve as a cornerstone of the Golden
State neighborhood, much like the Achievement Center has been for the Elmwood
neighborhood.
The proposed
project has received the support and endorsement of the Golden State Citizen
Advisory Committee, and the City�s Childcare Committee.
It is therefore recommended that the Agency and City Council approve
the proposed project.
RECOMMENDATION:
It
is recommended that the City Council and Redevelopment Agency approve the
proposed Resolutions approving the development of the Housing and Childcare
Center Demonstration Project.
EXHIBITS:
A
Conceptual Plans and Applications
B
Development Agreement and Conditions of Approval
C
Mitigated Negative Declaration
D
Vesting Tentative Tract Map
E
Disposition and Development Agreement
F
Summary Report
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