MINUTES OF THE CITY COUNCIL

 

SAN JOSÉ, CALIFORNIA                        TUESDAY, AUGUST 28, 2001

 

The Council of the City of San Jose convened in Adjourned Regular Session at 5:27 p.m. for a joint meeting with the Redevelopment Agency in Council Chambers at City Hall.

 

Present: Council Members: Campos, Chavez, Cortesé, Dando, Diquisto, LeZotte, Reed, Shirakawa Jr. (entered Chambers at 5:26 p.m.), Williams, Yeager; Gonzales

               Absent: Council Members:  None.

 

ORDERS OF THE DAY

 

Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Reed and unanimously carried, the Orders of the Day and the Amended Agenda were approved. Vote: 10-0-1-0. Absent: Shirakawa, Jr.

 

MERGED

 

7.1            Adoption of resolutions by the City Council and Agency Board amending the City and Agency Inclusionary Housing Policy by:

(a)               Increasing the affordable housing requirement from 15% to 20% of the units in each project; and,

(b)               Allowing for-sale project to fulfill the policy’s requirement with moderate-income units; and,

(c)               Requiring rental projects to fulfill the policy’s requirement with very-low income units.

 

Documents Filed: (1) Memorandum from City Manager Del D. Borgsdorf and from Redevelopment Executive Director Susan F. Shick, dated August 28, 2001, recommending the Council and Agency Board adopt resolutions amending the Redevelopment Area Inclusionary Housing Policy to allow the development of affordable homeownership housing by: (a) Increasing the affordable housing requirement from 15% to 20% of the units in each project; and (b) Allowing for-sale project to fulfill the policy’s requirement with moderate-income units; and, (c) Requiring rental projects to fulfill the policy’s requirement with very-low income units. (2) Supplemental memorandum from Executive Director Susan F. Shick, dated August 27, 2001, transmitting the proposed revised City of San José Policy on implementation of the Inclusionary Housing Requirement of Health and Safety Code Section 33413(b)(2). (3) Memorandum from Mayor Gonzales and Council Member Chavez, dated August 28, 2001, recommending Council (a) Approve direction and goals sought through Amendments of the Inclusionary Affordable Housing policy in Redevelopment Project areas; (b) Proceed with an analysis of the impacts upon the City’s ability to reach affordable housing and unit production goals caused by potential Amendments of the Inclusionary Affordable Housing policy; (c) Direct Staff to convene meetings with stakeholders, including members of the development community and affordable housing advocates, and (d) Staff to return to Council with findings and final recommendations within three weeks.

 

Discussion/Action: Amy Glad, representing Homebuilders Association of Northern California, and Cristina Uribe, representing Santa Clara/San Benito County Labor Council, spoke in support of the amendments with the recommendations; and William J. Garbett spoke against the proposed action. With respect to double fee payments by developers who chose to build affordable units outside a redevelopment area, Council Member Dando asked Staff to review and revise the Inclusionary Policy to include the construction of for-sale units. Upon motion by Council Member Chavez, seconded by Council Member Dando, and unanimously carried, the proposal contained in the August 28, 2001 memorandum from Mayor Gonzales and Council Member Chavez, which recommended Council/Agency (1) approve direction and goals sought through amendments of the Inclusionary Affordable Housing Policy in redevelopment project areas; (2) direct Staff to proceed with an analysis of the impacts upon the City’s ability to reach affordable housing and unit production goals caused by potential amendments of the Inclusionary Affordable Housing Policy; (3) direct Staff to convene meetings with stakeholders, including members of the development community and affordable housing advocates; and (4) direct Staff to return within three weeks to the City Council and Agency Board with findings and final recommendations. Vote: 10-0-1-0. Absent. Shirakawa, Jr.

 

Vice Mayor Shirakawa, Jr. entered Chambers at this point in the meeting.

 

7.2            Approval of the release of the first phase of a Request for Qualifications (RFQ) to solicit developer interest for Greater Downtown Housing Sites.

 

Documents Filed: (1) Memorandum from Executive Director, Susan F. Shick, dated August 28, 2001, recommending the Redevelopment Agency Board and the City Council approve the issuance of a Request for Qualifications (RFQ) to solicit interest for 16 sites as an initial phase to develop housing in the greater downtown area. (2) Memorandum from Mayor Gonzales and Council Member Chavez, dated August 27, 2001, specifying recommendations for approval. (3) Report entitled, The Redevelopment Agency of the City of San José/Greater Downtown Housing Development Opportunities/Request for Qualifications.

 

Discussion/Action: The following individuals commented on various aspects of the proposed Request For Qualifications (RFQ): Juan DeAnda, Elaine Evans, Linda Rae Herman, Brian Padilla, Francine Ruiz, Vic Giacolone, Yolande Reynolds, and Loraine Wallace Rowe. William J. Garbett spoke against the proposed action. Upon motion by Council Member Chavez, seconded by Council Member Dando and unanimously carried, the recommendation contained in the August 27, 2001 memorandum from Mayor Gonzales and Council Member Chavez, that the City Council/Agency Board (a) approve the issuance of a Residential Request for Qualifications that will consider only those parcels that are either owned by the City/Redevelopment Agency or have written consent from property owners to proceed with negotiations; (b) confirm that this effort is the only phase of the Downtown Residential RFQ process; (c) direct Staff to return to the Board both with an analysis of the results of the RFQ effort and with recommendations for continuing an effective housing production strategy in the downtown, after completion of Owner Participation Agreements or Development Disposition Agreements on a majority of these sites; and (d) confirm that the City and the Agency desire a range of housing types and densities to include both ownership and rental opportunities in the downtown area, was approved. Vote: 11-0-0-0.

7.3            Approval by the City Council of an amendment to the agreement with Neighborhood Housing Services of Silicon Valley (NHS) to partially fund tenant improvements, in an amount not to exceed $155,370, for the 5,179 square foot permanent NHS office at the corner of Story and King Roads, and adoption of a resolution by the Agency Board approving reimbursement to the City for one-half of the costs. CEQA: Resolution No. 62615 (STORY ROAD)  [Deferred 8/14/01, Item 7.1]

 

Documents Filed: None.

Discussion/Action: This item was deferred to September 11, 2001.

ADJOURNMENT

 

            The Council of the City of San José recessed at 6:10 and reconvened at 7:00 p.m. to consider proposed amendments to the San José 2020 General Plan.

 

 

RON GONZALES, MAYOR

 

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK