AgdaPkt 2016-10-17 Closed and Special Joint SA PFA

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6.3.C. - Page 2 The Planning Commission, on August 2, 2016, reviewed the Tentative Parcel Map and the Architectural Permit for the new mixed-use building and reviewed the proposed sale of the property to Butler for conformance with the General Plan. The Planning Commission approved the entitlements and determined that the sale of the property for the proposed mixed-use development, was consistent with the General Plan. ANALYSIS Based on the property appraisal, the value of the remnant parcels is $390,000. Staff is recommending that the purchase price be reduced to account for the recently adopted affordable housing impact fee. The appraisal was based on comparable land sales that were completed prior to the fee being adopted. In all, the applicant is responsible for paying an affordable housing fee on $512,000. Staff is recommending a proportional purchase price reduction of $75,000 (City land accounts for 14.6% of the overall land area), resulting purchase price is $315,000. Portions of the City property are contaminated and will need to be remediated in connection with the mixed-use development. The agreement includes holdback escrow funds in an amount up to $95,000 as the City's contribution to the necessary and proportional remediation of the site. Butler will be entitled to these funds based on actual costs associated with the remediation work. Any remaining funds will be released to the City and any excess expenses will be borne by Butler. The Agreement for the Purchase and Sale of Remnant Properties details the terms of the purchase and sale of City remnant properties and defines the obligations of the Developer and the City. The Agreement also requires Butler to indemnify, hold harmless and defend the City against any claims arising from the conveyance of the properties. ALTERNATIVES The City Council may determine not to proceed with the Agreement for Purchase and Sale of Remnant Properties. In which case the developer would need to redesign the project and develop without the City property. FISCAL IMPACT The City will receive $220,000 in net proceeds from the sale of the City remnant properties to Butler. Funds are recommended to be placed in the City's General Fund. Additionally, the City will receive development impact fees for the mixed-use development. ENVIRONMENTAL REVIEW The City has determined that the project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) Guidelines pursuant to Public Resources Code Section 21083.3 and CEQA Section 15183. This exemption applies because the property disposition and the project are consistent with the development density established by existing zoning and General Plan polies for which an EIR was certified and there are no project-specific significant effects which are peculiar to the project or its site. The project is also exempt pursuant to Section 15332 Class 32, "Infill Development Projects," because the project meets the general plan and zoning