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Mayor Lee requested Councilmembers disclose any connections they have had with this project.
Councilmember Swegles disclosed that he previously met with Margaret Ecker Nanda and Clarum Homes. Margaret Ecker Nanda has done work for the company Brandenburg, Staedler, and Moore, which is the company where Councilmember Swegles is employed. Councilmember Swegles stated Ms. Ecker Nanda worked for Brandenburg, Staedler, and Moore on a contract basis and she is not an employee of this company.
Mayor Lee disclosed that he previously met with Margaret Ecker Nanda and Clarum Homes. He also had visited the mobile home park and met with some of the residents including Margaret Baker a few months ago.
Planning Officer Trudi Ryan presented the staff report.
Councilmember Moylan inquired why the staff report was not reviewed by the Housing and Human Services Commission. Officer Ryan stated staff followed the requirement as listed in the Municipal Code, which requires that the Planning Commission and City Council review the report.
Councilmember Moylan requested confirmation that the task before Council is whether the Conversion Impact Report (CIR) conforms to the Municipal Code. Officer Ryan confirmed that was accurate.
Councilmember Moylan requested confirmation that Council does is not able to make a decision on whether the mobile home park will be closed. Officer Ryan confirmed that was accurate.
Councilmember Moylan requested confirmation that Council policy requires 400 acres be zoned for mobile homes and that at present the City has approximately 420 acres of mobile home parks. Officer Ryan confirmed currently approximately 422 acres of land are being used as mobile home parks with the City and 414 of the 422 acres are zoned for a mobile home park. The parks that remain have other zoning designations as does the Flick’s Mobile Home Park.
Councilmember Moylan inquired if the Council policy stated that 400 acres are to be zoned for mobile home parks or just for the use of mobile homes. Officer Ryan stated the quantified objective is to retain 400 acres of zoning for mobile home parks.
Councilmember Moylan inquired if the reason this parcel (Flick’s Mobile Home Park) could not be zoned into a mobile home park is due to the small size of the parcel. Officer Ryan stated that was accurate as the zoning code requires a minimum of nine acres for mobile home park zoning. Councilmember Moylan inquired as to the size of the Flick’s parcel and Officer Ryan confirmed it was 1.85 acres.
Councilmember Howe confirmed with Officer Ryan that the designation for the Flick’s parcel is R3 and could not be changed.
Councilmember Howe inquired as to how many units could be placed on 1.85 acres (including the density bonus). Officer Ryan stated approximately 50 units.
Councilmember Howe inquired how many citizens were successfully (to their desire) relocated during the closure of the Oasis Mobile Home Park. Officer Ryan stated 100 percent of the residents were relocated to appropriate housing; however, they may have not received their first choice so that is a difficult question to answer.
Public hearing opened 7:52 p.m.
Stuart Welte, Architect from Clarum Homes, gave a brief overview of Clarum Homes and their proposal. He stated they are proposing 36 homes at this site. Mr. Welte explained that his company has retained the services of Catholic Charities to assist the residents in relocating. He introduced Brooke Scharnke and Joanne Rivera of Catholic Charities to explain their relocation efforts.
Brooke Scharnke spoke about the Catholic Charities organization and their involvement with the current Flick’s project. Ms. Scharnke stated although they have been hired by the developer, it has been the understanding of both the residents and developer that the role of Catholic Charities is to assist the residents.
Margaret Nanda, attorney with Clarum Homes, stated she would like to address an issue that came up at the Planning Commission hearing regarding the second appraisals that some residents have received. Ms. Nanda stated the applicant obtained appraisals for each unit based on fair market value. She identified that all the people at this park own their homes and under the terms of the ordinance, they are allowed the right to obtain a second appraisal. There are 29 total spaces (27 are occupied and two are unoccupied) of which 12 homeowners obtained second appraisals. Ms. Nanda explained that the ordinance states if the difference in the appraisals that are obtained is less than 15%, the two appraisals are averaged. In reviewing the 12 homeowners who obtained second appraisals, three were under the 15 percent difference and nine appraisals were greater (one case was 78 percent higher). Ms. Nanda noted that the same appraiser was hired by all twelve homeowners.
Ms. Nanda explained that in every case where second appraisals were obtained Clarum Homes sent out letters stating that they would split the difference in the two appraisals with all parties. The owners are eligible to reject that offer and request a third appraisal but as late, there have not been any requests for this action.
Ms. Nanda stated that after the Planning Commission hearing, all of the mobile homeowners (with the exception of four who have been unavailable) have received copies of proposed purchase and sale agreements. The escrow company is Escrow Control and currently there are four homes in escrow.
Councilmember Moylan confirmed with Ms. Nanda that 27 appraisals were obtained and there are 27 owners need to be relocated. He inquired as to how many have successfully found a new location. Ms. Scharnke stated that not all the owners are interested in using Catholic Charities services, but they have been working with 24 of the 27 owners in addition to the 4 apartments on the outside perimeter of the park. Currently, there are approximately six households that have not identified housing. Ms. Nanda further explained that payment from the developer to the owners will not occur until after City Council approves the conversion report. There are two owners who have physically moved from the park and a number of owners who are waiting for Council approval and then for the developer to complete the sale.
Councilmember Howe asked what fees the owners are required to pay for closing costs and commissions. Ms. Nanda stated the only fee required from the owners would be property taxes and any loan they have on the property.
Vice Mayor Spitaleri asked about accommodation options will be offered if the six remaining owners do not secure housing. Ms. Scharnke stated they have been working on this since October 2006 and once approval is received they still have six months to continue to find housing for these individuals. She stated they work to find appropriate housing and meet expectations to their income.
Vice Mayor Spitaleri inquired if, of the six remaining owners, there are things such as age, medical conditions, transportation issue, and the inability to travel that are preventing these people from getting housing. Ms. Scharnke stated it is a combination of all of these items and a variety of additional issues.
Vice Mayor Spitaleri inquired as to how the owners who are restricted by income will find housing. Ms. Scharnke stated there are not any owners for whom income would prevent them from obtaining housing, but for a lot of the housing in the community there is a waiting list. She stated the approach is to get them on as many waiting lists as possible. Vice Mayor Spitaleri inquired as to where these owners will live if they are not able to get into an affordable unit by the deadline and Ms. Scharnke stated they may participate in a shared home program as a back-up plan.
Councilmember Chu inquired as to how many of the owners have been able to find housing in Sunnyvale. Joanne Rivera from Catholic Charities stated that she is aware of one person who bought another mobile home in Sunnyvale. She explained that the highest space rent at Flick’s was $425 and the lowest at other Sunnyvale mobile home parks is $800 per space which makes it hard for the owners to find replacement housing in Sunnyvale. Ms. Rivera stated where she found that the most affordable housing has been in San Jose where they have rent control. Ms. Rivera clarified that there are approximately six to eight owners that have not identified housing.
Councilmember Howe confirmed with Officer Ryan that the ordinance calls for 75 percent of the 50 allowable homes to be built which equates to 37 homes.
Councilmember Howe asked Ms. Nanda what the incentive is for early move out and she confirmed that if the owner moves out within 45 days of approval of the conversion, they receive an additional $5,500.
Councilmember Howe inquired as to how many of the six to eight owners have not secured housing due to limited means of what is available to them. Ms. Scharnke stated these families are currently looking for housing with Ms. Rivera.
Councilmember Swegles inquired if Ms. Rivera visited Willow Ranch mobile home park. She stated she had not and only visited the ones on the list from the Conversion Impact Report (CIR). Councilmember Swegles stated he wished to clarify this as Ms. Rivera had stated she visited all the mobile home parks in Sunnyvale.
Councilmember Swegles stated he is aware of lower space rents than the $800 as stated by Ms. Rivera. He also is aware of affordable mobile homes, with some selling for between 10 to 15 thousand dollars. Ms. Rivera stated she has not gone to small parks because some are in jeopardy of rezoning and she would not want the owners to have to experience relocation again. Councilmember Swegles stated the parks he is speaking about are larger parks and he requested Ms. Rivera’s contact information to follow up with her at a later time.
Mayor Lee inquired how long after approval of the CIR the checks will be cut. Ms. Nanda stated the agreement must be signed and then it would be a matter of days but would be based on when the escrow company could complete the transaction.
Mayor Lee inquired whether the six to eight homeowners that are without a relocation residence are seniors. Ms. Scharnke stated the majority of these owners are seniors and some are disabled. The other challenge is that a few of the owners have families and want to keep their children in the same school district.
Marilyn Baker stated losing her home is very difficult. She is on a fixed income and needs to be near her doctors and dialysis center. She said she can’t find anything she can afford. She stated the waiting lists are very long for housing.
Vice Mayor Spitaleri verified Ms. Baker’s income is $1,123 per month plus $138 from her spouse’s pension. She stated she has lost her children and does not have anyone to help.
Tim Persyn stated his concerns over the fate of the residents at the Flick’s mobile home park and the loss of affordable housing in Sunnyvale.
Don Galvan, resident of Flick’s mobile home park, requested that residents not have to pay rent any longer to allow all residents to save some money. Many residents’ are on fixed incomes.
Pia Medina stated she has requested to stay in her mobile home until her son graduates from junior high and she was told no. She stated it is only one month beyond the 45 day limit as her son is out of school on June 14, 2007. She stated that is not too much to ask from the developer. She stated she believes that less than 75 percent of the residents have found housing.
Vice Mayor Spitaleri confirmed with Ms. Medina that her understanding of the early move out offer of $5,500 will be reduced by $500 every 15 days past the 45-day move out.
Sergio Correa stated (through translation by Ms. Rivera) that he was one of the owners that requested a second appraisal and is asking Council to assist him in obtaining the full amount of the second appraisal and an additional $5,000 for his relocation and moving expenses. It is important for him to stay in the Sunnyvale area.
Mayor Lee inquired as to the difference between first and second appraisal.
Julio Correa stated he received a second appraisal. He stated Ms. Nanda had told him that he would get the amount of the second appraisal if it came in higher and now they are not upholding that statement.
Javier Ortiz stated he is in a critical situation. He does not make enough for the BMR program and the apartments have waiting lists. He received a second appraisal and is requesting to receive the amount of the second appraisal. He also would like to have answers to his petitions. He stated Catholic Charities is not available when the residents are home from work.
Luis Trujeque stated he had a second appraisal which was only $5,000 more than the first appraisal and the developer stated they would not honor that amount. Mr. Trujeque is asking for help to receive the amount of his second appraisal.
Vice Mayor Spitaleri confirmed with Ms. Nanda that Clarum will not be operating the mobile home park.
Vice Mayor Spitaleri asked staff if Council could be involved with asking the current owner if he is willing to assist in relocation of the current owners. Planning Officer Ryan stated the question could be asked of the owner or developer, but could not be made a part of the CIR.
Councilmember Howe asked Ms. Nanda how she would define the group of people that will lose their early move out bonus. Ms. Nanda stated the early move out bonus is not a feature of the City ordinance. The ordinance only requires that mobile homeowners receive 85 percent of their appraised value and the services of a housing relocation expert. She explained that Clarum Homes is offering an incentive early move out bonus and a housing relocation bonus.
Councilmember Howe stated that was not his question. He stated he wanted to know if Ms. Nanda were to take the six to eight homeowners who are unable to take advantage of the early move out incentive because of a waiting list or some other reason that makes it impossible to relocate, how she would define that group. Ms. Nanda stated she would define that group as a group who are having a difficult time finding housing. She continued that Clarum Homes held two informational hearings in December 2006 and expected Council would hear this item in January. Therefore, the owners have had a longer than anticipated notice of the 45-day time limit from the approval of the CIR.
Ms. Nanda continued to speak about comments made during public comments. She stated that her organization treats all people the same. She recognizes that there are people with compelling circumstances, but special circumstances and preferential treatment are not allowable under the City ordinance.
Vice Mayor Spitaleri stated in this situation it is hard to treat all owners equally since there is such a wide variety of circumstances, including concerns for the elderly.
Councilmember Hamilton inquired if there will be BMR units with this development and Mr. Welte confirmed that there will be several BMR properties.
Councilmember Hamilton confirmed with Mr. Welte that the displaced residents will have first rights to the BMR properties and inquired as to the date the developer anticipates the home will be ready. Mr. Welte stated they would like to have them ready by Spring 2008.
Mayor Lee asked City Attorney David Kahn if the developer could offer more incentives to some owners due to special circumstances. City Attorney Kahn stated the ordinance provides a baseline but the property owner or developer can exceed the baseline equally for all the owners. From a legal standpoint, he is not aware of anything that would preclude the developer or property owner from making a decision to provide benefits that would be higher for some tenants due to their special needs. City Attorney Kahn stated from a policy standpoint and perception by the other tenants that should be taken into account prior to this action occurring.
Mayor Lee encouraged the developer to look into offering those with higher needs the extra assistance they need to relocate. Mr. Welte stated they are willing to help the owners and that is why they have gone the extra mile to hire Catholic Charities to assist the owners. He stated he accepts the Mayor’s advice but stated it is a difficult process to determine who actually has the special needs.
Councilmember Howe confirmed with Ms. Scharnke of Catholic Charities that she has the six or eight households that do not currently have relocation plans in place in her records.
Mayor Lee inquired if Mr. Welte would consider extending the early move out benefit to 60 days and Mr. Welte stated Clarum Homes would take it into consideration, but that it impacts their ability to move forward and is not without significant carrying costs.
Public hearing closed 9:37 p.m.
MOTION: Councilmember Howe moved and Councilmember Swegles seconded to approve Alternative No. 1: Council certifies that the Conversion Impact Report complies with the requirements of Sunnyvale Municipal Code 19.72
with addition:
Developer and applicant are strongly encouraged to assure that none of the residents are left homeless as a result of the conversion of the mobile home park.
Councilmember Swegles offered a friendly amendment to request the property owner stop charging space rentals until the residents relocate.
Friendly amendment accepted.
Councilmember Moylan inquired if Councilmember Chu would join him in sponsoring a proposed 2008 Study Issue to consider revisions to Ordinance 19.72 Conversions of Mobile Home Parks to Other Uses (including a Work Plan). Councilmember Chu agreed to sponsor this study issue with Councilmember Moylan.
Mayor Lee offered a friendly amendment to add to the study issue to also look into surrounding neighborhoods of other cities as to how they handle incentives and bonuses.
City Attorney Kahn stated Council could request a report back within 30 days from Clarum Homes regarding what decisions and actions they have taken and additionally a status report from Catholic Charities on the residents that have moved out and those that remain.
Councilmember Howe amended his motion to request Clarum Homes provide Council within 30 days a report regarding the decisions and actions they have taken and a status report from Catholic Charities on the residents that have moved out and those that remain.
Councilmember Swegles accepted the amendment to the motion.
VOTE: 7-0
Councilmember Hamilton wished to add to the proposed study issue that staff explore adding a condition to the ordinance that mobile homes stay in place until BMR units are built when a mobile home park is being converted to housing. |