If it’s built, the San Carlos Transit Village must comply with the city’s affordable housing requirements.
That’s what the city council decided Monday night when it unanimously rejected the project developer’s request to drop or reduce the rules.
Legacy Partners proposes to build 280 upscale apartments as well as office and retail buildings on a 10.5-acre strip parallel to the city’s train tracks, from Arroyo Avenue to Northwood Drive.
Barring any changes to its plan, Legacy would be expected to pay the city about $7.9 million in impact fees to help cover affordable housing needs, according to a memo from City Attorney Gregory Rubens. In lieu of paying that amount, Legacy could charge lower rent for 15 percent of the apartments so low-income households could afford them.
An attorney hired by Legacy sent letters to San Carlos in July asking it to waive the affordable housing requirement altogether or allow the developer to charge lower rent for 10 percent of the apartment units so moderate-income households could live there.
Before the council vote, Legacy senior managing director Jeff Byrd said the company wants to provide some affordable housing but believes that fully complying with the city requirement is “not financially possible.”
The council voted to tentatively deny the request last month and Monday’s vote made it official.
A resolution the council approved Monday says independent consultants hired by the city concluded that the Transit Village would be financially feasible even if subject to affordable housing requirements, that Legacy provided “no factual evidence” to prove otherwise, and that other developments in the city have complied with the law.
It also states that “further discussions between the City and Legacy may occur regarding compliance with the program.”
Email Bonnie Eslinger at beslinger@dailynewsgroup.com; follow her at twitter.com/bonnieeslinger.
