COUNCIL
DISTRICT: 3
SNI AREA: St. James
Square; Washington
Adopt an Ordinance amending the Park Impact and Parkland Dedication Ordinances in order to eliminate the exemption for the Downtown Core Area, and adopt a resolution establishing a transition period for residential projects in the Downtown Core Area subject to Park Impact Ordinance.
BACKGROUND
The Park Impact Ordinance (“PIO”), Chapter 14.25 of the San Jose Municipal Code, and Park Dedication Ordinance (“PDO”), Chapter 19.38 of the San Jose Municipal Code, require residential projects to dedicate land, construct park improvements, and/or payment of in-lieu fees in accordance with the standard of 3.0 acres per 1,000 residents. In 1998, the City Council adopted comprehensive amendments to both the PIO and PDO, including an exemption for residential projects within the Downtown Area and the Downtown Core Area. The Downtown Area exemption ended on July 1, 2001. The City Council on June 26, 2001, indicated a desire to also end the exemption for the Downtown Core Area. The Downtown Core Area is defined as the area bounded by Julian Street to the north, Fourth Street to the east, Highway 280 to the south and Highway 87 to the west.
ANALYSIS
The 1998 amendments to the PIO and PDO sunset the exemption for the projects within the Downtown Area (Frame) as of July 1, 2001. However, the Downtown Core Area continues to be exempt. To eliminate the exemption for the Downtown Core Area requires an Ordinance change to the PIO and PDO.
The PDO, enacted in 1988, applies to residential projects, which require the subdivision of real property. The requirement to comply with the PDO is imposed by placing a condition on the tentative map for the residential project. Residential developers, subject to the PDO, satisfy the requirement by paying the in-lieu fee, dedicating property or entering into a parkland agreement prior to the approval of the final map.
The PIO was later enacted in order to parallel the parkland fee and dedication requirements of the PDO, for residential units that are not developed through the subdivision map process. The PIO requires the developer to satisfy the Park Impact requirement at the time of the issuance of the first building permit.
Currently, residential subdivision projects within the Downtown Core Area that have approved tentative maps prior to elimination of the exemption will continue to remain exempt from the PDO. However, PIO projects in the Downtown Area will be required to pay an in-lieu fee or dedicate real property if the issuance of the first building permit for the project occurs on or after the date of the elimination of the exemption. This means that a PIO project in the Downtown Core Area could be far along in the development process prior to the expiration of the exemption, but would be subject to the PIO.
In order to treat both PIO and PDO projects in the pipeline in a similar manner, staff is recommending that there be a transition period for any residential projects located within the Downtown Core Area subject to the PIO requirements that have received a Planned Development Zoning or Planned Development Permit prior to the elimination of the exemption, which will take place 60 days after the second reading of the Ordinance. In order to accomplish this, Council should adopt a resolution amending the fees imposed under the PDO and PIO to set the Park Impact Fee as $0 for projects meeting the above criteria for a period ending on July 1, 2005. This date is consistent with the sunset date for the PIO projects in the Downtown Area.
The amendments in 1998 also established a transition fee for multi-family units with the Downtown Area at $1500 for a period of three years. On June 26, 2001, Council reduced this transition period to 18 months. In order to handle the Downtown Core Area in a consistent manner with the transition for the Downtown Area, would require that the fee for multi-family units be set at $1500 until December 31, 2002.
This change in the Ordinances will provide additional funding and/or land dedications to expand recreational opportunities in the downtown core area of the City. Despite little land for development, Council District 3, which encompasses the downtown core area, is expected to add 6,000 new residents by 2005. This number equates to 21 additional acres of neighborhood/ community parklands needed to meet the City’s service level objectives of 3.5 acres per 1000 population. The use of the PDO/PIO land dedications and in-lieu fees will help the City to try a meet the service level objectives for these new residents.
The financial gain to the City will depend on the number of dwelling units approved and constructed in the Downtown Core Area after the exemption to the PIO and PDO is eliminated.
PUBLIC OUTREACH
Notice of the public hearing on November 6, 2001, will be published in the newspaper. Persons requesting advance notice of such fee changes will also be notified by mail along with the Home Builders Associations and the Tri-County Apartment Association.
This memorandum has been coordinated with the City Attorney’s Office, Planning, Building & Code Enforcement Department, the Department of Public Works, and the Redevelopment Agency.
Exempt
Mark Linder
Director of Parks, Recreation and Neighborhood Services