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FiLEDO Ff iC E OF TH E CIT t C l .ERt

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CITY OF OAKLAND

C I T Y H A L L

J NE BRUNNER

CouncilmemberDistrict

T O :FROM:DATE:

RE:

O N E F R A N K H . O G A W A P L A Z A O A K L A N D , C A L I F O R N I A 94 61 2

(510) 238-7001

FAX (510) 238-6910T T D (510) 238-7413

Council President Reid and Members of the City CouncilCouncilmembers Brunner and De La FuenteJuly 10 2012

A RESOLUTION EXTENDING UNTIL D E C E MB E R 31, 2013 T H EEXPIRATION D AT E O F PERMITS ISSUED UNDER T H EA U T H O R I T Y O F T I T L E 17 O F T H E O A K L A N D MUNICIPALC O D E PLANNING CODE) AND C R E E K P R O T E C T I O NPERMITS ISSUED UNDER T H E A U T H O R I T Y O F C H A P T E R13.16 O F T H E O A K L A N D MUNICIPAL C O D E T H ATOTHERWISE W OUL D XPIR ON OR PRIOR T O JANUARY 1,2013 UPON REQUEST AND PAY ME N T O F ADMINISTRATIVEFEE

We are proposing to extend the expiration date for all development entitlements by oneyear, until December 31, 2013. Due to the slow real estate market and limited financingopportunities, many development projects are unable to move forward. This legislationwill help to retain investment in Oakland and ensure that already-approved projectsactually get built.

B CKGROUND

In November 2008, Council passed a resolution extending a ll development entitlementsuntil December 31, 2011. This extension applied to a ll planning approvals granted underChapter 17 of the Oakland M unicipal Code (Planning Code) such as variances, designreview, and conditional use permits that expired before January 1, 2011. The sameextension applied to creek protection permits issued under the authority of Chapter 13.16of the Oakland M unicipal Code. In June 2011, the Council extended the entitlements foran additional year.

Unfortunately, project developers are facing many of the same barriers that they faced in2008. The housing market is still weak and it is difficult to secure financing fordevelopment projects. Numerous development projects in Oakland are on hold whilethey wait until the market conditions to improve or until they can obtain financing.During this time, capital is at risk for leaving Oakland, development projects may becancelled entirely, and properties are subject to becoming blighted.

ItemCommunity and Economic Development Committee

July 10 2012

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The entitlement process is a costly and time-intensive one, requiring meetings with staff,community members, as w ell as public hearings at the Planning Commission andsometimes Council. If entitlements expire during this time, builders have to choosewhether or not go through the expensive and laborious approval process again. Instead,they may choose to leave their land vacant or leave dilapidated structures in place, oreven put the land on the market for sale.

The current extension expires on December 31 , 2012 putting many projects at risk.

PROPOSED POLICY

The proposed legislation would extend the original extension for one more year, untilDecember 31 , 2013. A l l development approvals granted by the City per Section 17 of theO M C (Planning Code) and Creek Protection Permits issued under the authority of theO MC Secfion 13.16 that would otherwise expire on or before January 1, 2013 could beextended. Applicants would be required to submit their request in writing to theirassigned planner and pay the administrative extension fee, per the master fee schedule.

A s with the original resolution, extensions would not be granted to any property that hasbeen cited as a nuisance property for blight under O M C Chapter 1.12. The appeal sectioncontained in Oakland Municipal Code Chapter 17.132 would also apply to theadministrative determination and interpretations made pursuant to this resolution.

Planning staff estimate that roughly 200-300 projects would apply for the extension. Theadministrative fee for an extension is $450.97. Based on the assumptions above, thispolicy would generate an estimated $90,194 - $135,291 in fees. This would not result inadditional net revenue for the City because the fees cover the costs of administering theextensions.

R E C O M M E N D AT I O N :

When an entitled project is built, it-results in many benefits for the community and theCity. Community benefits include vacant and blighted properties replaced by newconstruction, cleanup of toxics, new housing units or office space, new jobs, andimproved infrastructure and pedestrian amenities. Benefits to the City include propertytaxes and transfer taxes.

Passage of this resolution w ill not create any costs fo r the City and wil l show a confinuedcommitment to those individuals, firms and investors that chose to take a risk and investin Oakland.

We recommend that the Council approve this resolution.

ItemCommunity and Economic Development Committee

July 10^2012

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O F F i C E o r TH E C n > f-'l , Approved as to Form and Legality

^ ' 'OAKLAND C

RESOLUTION NO. C M S

Introduced by: Council Members Brunner and De La Fuente

A RESOLUTION EXTENDING UNTIL D E C E MB E R 31, 2013 THEEXPIRATION D AT E OF PERMITS ISSUED UNDER T H E A U T H O RT Y OFT I T L E 17 OF T H E O A K L A N D MUNICIPAL C O D E PLANNING C O D EAND C R E E K PROTECTION PERMITS ISSUED UNDER THEAUT HOR I T Y OF CHAPTER 13.16 OF THE O A K L A N D MUNICIPALC O D E T H AT OTHERWISE WOULD EXPIRE ON OR PRIOR TOJANUARY 1, 2013 UPON REQUEST AND PAYME NT OFADMINISTRATIVE FEE

W H E R E A S , the extraordinary economic downtown, housing market decline, and difficulty of obtainingloans has resulted in construction projects being stalled, despite having completed the planning approvalsprocess which often entails substantial costs and time; and

W H E R E A S , the City Council wishes to encourage investment and revitalization activities in ourneighborhoods, and encourage the improvement of vacant land and deteriorated buildings; and

W H E R E A S , Senate B i ll 1185, approved by the Governor on July 15, 2008, provided one year extension

to approvals of tentative maps, which allows cities to preserve development application that are set toexpire and that cannot be processed presently due to prevailing adverse economic conditions in theconstruction industry; and

W H E R E A S , on July 15, 2009, -the Governor signed A B 333, which further extended by 2 years the lifeof vesting tentative and tentative maps that had not already expired and that otherwise would have expiredbefore January 1, 2012; and

W H E R E A S , On July 15, 2011, the Governor signed A B 208, which extends the expiration date oftentative subdivision maps and vesting subdivision tentative maps that would have expired between thebil l s passage date and January, 1, 2014 and also applies to projects that were extended pursuant to A B

333;and

W H E R E A S , extending the validity of planning approvals granted by the City would help retaininvestment in Oakland at no cost to the City; now, therefore, be it

R E S O LV E D : That the expiration date of permits issued under the authority of the Oakland M unicipalCode T itle 17 (Planning Code) and Creek Protection Permits issued under the authority of the OaklandMunicipal Code Section 13.16 expiring-on or before January 1, 2013 is hereby extended throughDecember 3 1, 2013 upon request and payment of the adrninistrative-extension fee in the Master FeeSchedule (Ordinance 12880 CMS) ; and be it

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F U R T H E R R E S O LV E D : That this extension shall not apply to properties that have been issued anadministrative citation under Oakland Municipal Code Chapter 1.12 ( blighted property ). Furthermore,in the event that a property included in a permit that has been extended pursuant to this resolution receivesan administrative citation under Oakland M unicipal Code Chapter 1.12 ( blighted property ) that is not

corrected, the City may terminate said extension; and be it

F U R T H E R R E S O LV E D : That this extension shall not apply to permits that have already expired: andbelt '

F U R T H E R R E S O LV E D : That the appeal section contained in Oakland Municipal Code Chapter 17.132applies to the administrative determination and interpretations made pursuant to this Resolution; and be it

F U RT H E R It E SO LV E D : That the City Council may grant further extensions to planning approvals i fnecessitated by economic circumstances.

N C O U N C I L, O A K L A N D / C A L IF O R N I A , ] , 20_

ASSED BY THE FOLLOWING V O T E :

Y E S - B R O O K S , B R U N N E R . D E L A F U E N T E . K A P L A N , K E R N I G H A N , N A D E L , S C H A A F, and P R E S I D E N T REI D

N O E S -

A B S E N T -

STENTION

AT T E S T:LaTonda S immons

City Clerk and Clerk of the Councilof ttie City of Oakland, California

Date of A ttestation: