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Res 2022-051 Policy Regarding TRPA Commodities RevisionPage 1 of 5 Resolution 2022-051 Adopted by the City of South LakeTahoe City Council May 3, 2022 Policy Regarding Disposition of Tahoe Regional Planning Agency (TRPA) Development Commodities Owned by City of South Lake Tahoe (Replacing Resolution 2019-067) BACKGROUND A.The Tahoe Regional Planning Authority (TRPA) is the land use authority and has established a development rights system to manage future development and a system to regulate the amount of land coverage in the Tahoe basin. B.The TRPA development rights are land use units that must be acquired before a property can be developed. Development rights include potential residential units of use (PRUs), single and multi-family residential units of use (RUUs), tourist accommodation units (TAUs), and commercial floor area (CFA). C.Permanent land coverage is also regulated by the TRPA to protect the Lake Tahoe watershed. Parcels are limited to a specified amount of land coverage and, in some cases, may be transferred to maximize the allowable amount on a given parcel. D.The City of South Lake Tahoe is subject to applying the development rights and land coverage systems to our review and approval of land use entitlement applications that are subject to the TRPA/City Memorandum of Understanding. E.The City has TRPA development rights and land coverage which have accumulated from various sources (e.g., Environmental Improvement Projects, implementation of Community Plans and Area Plans, City purchase of land with attached development rights, the retirement of rights, and TRPA allocation of development). F.The City has been approached by project developers/applicants interested in securing development rights and land coverage from the City. G.The City has independently sold or provided various TRPA development rights and land coverage to project developers/applicants based on the merits of the individual project. H.Through the sale of TRPA development rights and land coverage the City has also provided an environmental and economic incentive to projects which otherwise would not have been economically feasible. I.The City believes it is appropriate, and transparent, to establish a policy that addresses the future distribution and sale of development rights and land coverage maintained by the City. Res 2022-051 May 3, 2022 Page 2 of 5 BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe: 1.Acknowledges and reserves the right to retain all necessary TRPA development rights and land coverage to support City-sponsored municipal projects; and 2. Hereby authorizes the distribution and sale of City maintained TRPA development rights and land coverage subject to the provisions of this policy; and 3.The City Council adopts the following policy for the distribution and sale of TRPA development rights and land coverage: A.Distribution and sale of TRPA development rights and land coverage shall be directed toward the development of residential, commercial, mixed-use, and industrial properties in the City of South Lake Tahoe. B.Distribution and sale of City-owned TRPA development rights and land coverage shall be consistent with the TRPA Regional Plan, TRPA Code of Ordinances, City of South Lake Tahoe General Plan and Municipal Code, and all other applicable community or area plan policies. i.When a developer/applicant requests City maintained TRPA development rights and/or land coverage for a project to be located within the City, the proposed project shall be evaluated to ensure the project is consistent with the following criteria; a.The subject property must be in the City of South Lake Tahoe; and b.The developer/applicant must have a planning application on file with the Development Services Department, prior to a project developer/applicant requesting development rights and/or land coverage; and c.The proposed project provides an environmental and/or economic benefit for the community. C.The distribution and sale of development rights and land coverage shall be to the affected parcel(s), not the developer/applicant; and i.Any change to an approved project (e.g., elevations, building size or siting, land uses, or density) may result in the revocation of prior reservation and/or allocated development rights and/or land coverage. The City Manager has the discretion to require any project change to be reviewed by the City Council to determine whether development rights or land coverage should be revoked. If revoked, the developer/ applicant will return to the City the allocated development rights and/or land coverage. The City shall reimburse the developer/applicant the price of sale, less the City's Res 2022-051 May 3, 2022 Page 3 of 5 administrative processing fee. D.The distribution and sale of TRPA development rights and land coverage shall be at no cost for the following projects: i.The sale of city-owned development rights and land coverage shall be at no cost to single or multi-family residential projects, which are deed restricted to accommodate low, very-low, and moderate-income families, as defined by the Department of Housing and Community Development (HCD) annual State Income Limits, pursuant to Health & Safety Code Section 50093. ii.The sale of city-owned development rights and land coverage shall be at no cost to a developer/applicant of a multi-family residential project or a mixed-use project containing multi-family residential units, if the project is located with the boundaries of an identified Town Center. a.A mixed-use project can be the horizontal or vertical mix of uses (residential, commercial and industrial). iii.The sale of city-owned development rights and land coverage shall be at no cost to commercial/industrial projects, when the property is deemed to be distressed and/or blighted, and the value of the proposed improvements and/or new construction are greater than fifty-one percent of the El Dorado County assessed value. iv.Up to 20 City banked Tourist Accommodation Units may be converted to Residential Units of Use and sold at no cost for the construction of new Accessory Dwelling Units. v.Up to 20 City banked Tourist Accommodation Units may be converted to Residential Units of Use and sold at no cost for the construction of new multi- family (2 or more units) projects where the developer/applicant provides evidence that all residential units utilizing converted City Tourist Accommodation Units are deed-restricted for occupancy by a tenant employed at least 30 hours per week at a place of business located in the Tahoe Basin. Should an approved residential, commercial, mixed-use, or industrial project later choose to subdivide the land (pursuant to the Subdivision Map Act), all previously required deed restrictions will remain in force or the developer shall reimburse the City the full market rate for said development rights/land coverage at the time of subdivision. E.Should the City provide or sell development rights or land coverage for a project containing residential units, a deed restriction shall be placed on the property prohibiting use as a Vacation Home Rental as defined in City Code Section 3.50.370. F.Commercial Floor Area shall only be provided or sold to a commercial project and shall Res 2022-051 May 3, 2022 Page 4 of 5 not be converted to other development right types. 4.The City Council adopts the following implementation strategy for the distribution and sale of development rights and land coverage: A.The Development Services Department will have an appraisal prepared by a California licenses appraiser, analyzing the sale of each development right (potential residential units of use (PRUs), single and multi-family residential units of use (RUUs), tourist accommodation units (TAUs), commercial floor area (CFA); and land coverage), for the preceding calendar year. i.The appraiser shall prepare the above-described report for presentation to the City Council on or before February 1 of each calendar year. a.The report shall describe the methodology used in determining the value of each development right category, including commercial floor area, and b.The report shall contain recommendations for each development right category, including land coverage; and c.The report shall also include a recommended tiers rate structure to address variances based on the scale of the project. ii.The City Council reserves the right to annually set the price point for each development right type and/or land coverage; and a.The established cost per category, shall be based upon one-third of the recommended appraisal rate. iii.A developer/applicant shall have one-year from the date of the approved development right/land coverage request to submit and obtain a building permit, issued through the City. If this milestone is unachievable the applicant may apply for an extension or relinquish the City granted development rights and land coverage. iv.One, one-year extension for the retention of approved development rights/ land coverage may be granted by the City Manager, based on the project continuing to meet the distribution policy and proceeding in a diligent manner, or relinquish the City granted development rights and land coverage. v.The sale and transfer of development rights/land coverage shall be completed prior to the issuance of a Certificate of Occupancy. vi.If any of the associated City Planning, Building and/or TRPA permits expire, the allocated development rights/land coverage shall be returned to the City. The City shall also reimburse the developer/applicant for the cost of those development rights/land coverage, less the City's administrative processing fee. Res 2022-051 May 3, 2022 Page 5 of 5 vii.Should the project parcel(s) change ownership the development rights may be transferred to a new owner so long as the project is constructed as approved. Any change to an approved project (e.g., elevations, building siting, interior configuration) may result in the revocation of prior reservation and/or allocated development rights and/or land coverage. viii.When approved development rights/land coverage is banked on a sending parcel, the developer/applicant shall obtain TRPA Transfer of Development Rights approval prior to the issuance of a certificate of occupancy. ix.The proceeds from the sale of city-owned development rights/land coverage shall be dedicated to the City's Workforce Housing Fund to support the City's affordable housing initiatives. B.The City Council hereby delegates to the City Manager the authority to approve or deny, and to complete the distribution and sale of the development rights/land coverage inside the City of South Lake Tahoe consistent with the criteria outlined in this policy. C.The City Council reserves the sole right to distribute and sell development rights/land coverage to private developers and other public agencies outside the City of South Lake Tahoe, and all such distribution and sales shall be at the full market rate at that time. D.The City Council hereby directs the implementation of an annual review process of this policy to be completed prior to February 1, of each calendar year. E.These policies supersede all other distribution and sale of development rights and land coverage policies adopted by the City Council through Resolution No. 2017-73. Adopted by the City of South Lake Tahoe City Council on May 3, 2022 by the following vote: Yes: Bass, Creegan, Friedrich, Middlebrook and Wallace ________________________ Date:_________ Devin Middlebrook, Mayor Attest: _______________________ Susan Blankenship, City Clerk The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council. Res 2022-051 May 3, 2022 Sue Blankenship (May 25, 2022 09:04 PDT) Devin Middlebrook (May 25, 2022 09:25 PDT)May 25, 2022 Res 2022-051 Policy Regarding TRPA Commodities Revision Final Audit Report 2022-05-25 Created:2022-05-25 By:jo Mcdonough (jmcdonough@cityofslt.us) Status:Signed Transaction ID:CBJCHBCAABAAtGyrc2ECgvByyBwRi0dvs3q0zrXmOaug "Res 2022-051 Policy Regarding TRPA Commodities Revision" History Document created by jo Mcdonough (jmcdonough@cityofslt.us) 2022-05-25 - 3:51:49 PM GMT- IP address: 128.92.136.146 Document emailed to Sue Blankenship (sblankenship@cityofslt.us) for signature 2022-05-25 - 4:00:12 PM GMT Email viewed by Sue Blankenship (sblankenship@cityofslt.us) 2022-05-25 - 4:04:13 PM GMT- IP address: 128.92.136.146 Document e-signed by Sue Blankenship (sblankenship@cityofslt.us) Signature Date: 2022-05-25 - 4:04:28 PM GMT - Time Source: server- IP address: 128.92.136.146 Document emailed to Devin Middlebrook (dmiddlebrook@cityofslt.us) for signature 2022-05-25 - 4:04:30 PM GMT Email viewed by Devin Middlebrook (dmiddlebrook@cityofslt.us) 2022-05-25 - 4:24:45 PM GMT- IP address: 66.189.255.213 Document e-signed by Devin Middlebrook (dmiddlebrook@cityofslt.us) Signature Date: 2022-05-25 - 4:25:04 PM GMT - Time Source: server- IP address: 66.189.255.213 Agreement completed. 2022-05-25 - 4:25:04 PM GMT