It appears that the future of downtown housing was indeed
discussed during meetings last year to update Morgan Hill
’s residential growth-control ordinance, despite a comment to
the contrary in last week’s Times.
It appears that the future of downtown housing was indeed discussed during meetings last year to update Morgan Hill’s residential growth-control ordinance, despite a comment to the contrary in last week’s Times.

Downtown housing will definitely be discussed Tuesday at a 7pm Planning Commission meeting when details of the new Downtown Plan are on the agenda – parking, zoning, density, traffic slowing.

Business and property owners and the public are encouraged to attend and speak if they wish; the City Council will consider the plan in January.

Long-time planning commissioner Ralph Lyle said Friday that the update committee had tackled the issue, but not always smoothly.

“Downtown housing was the subject of multiple meetings,” Lyle said, “but there were some areas of controversy.”

The voter-approved ordinance – now Measure C – sets the city’s population at 48,000 by 2020. Developers compete to earn points that, in turn, can lead to building permits – or housing starts. To succeed in the competition, developers work to make their projects attractive with small parks, proper access, attractive design, school area work and other improvements.

Lyle said he proposed setting aside a small number of housing allotments dedicated to downtown areas.

“The discussion was how big is small,” he said.

Property owners had approached Lyle and other committee members asking for a way around the years-long process to secure allotments, owners who might want to add four or five residential units to a second floor, over an existing downtown business. Lyle said he thought 10 would be a good number; the measure eventually named 15 units as the maximum that could be built as one project, with 10 units being allowed in one year.

Housing is an issue downtown because having a population living there, with time and money to spend in nearby restaurants and shops, benefits residents, business owners and, ultimately, the city, which gets sales taxes from business transactions.

“You want to have people moving in whose incomes equal what the stores offer,” Lyle said.

In the past, many downtown residential units have been affordable, targeted to people without a lot of extra funds. “Now, you have to distinguish between moderate and affordable,” Lyle said. “Moderate housing could be for people with incomes of $100,000.”

Affordable and moderate housing are subsidized by developers of market rate projects. They must either build 20 percent of the project at BMR, or below market rate, or pay into a fund that the city uses to join with other groups – South County Housing, for example – to build affordable units elsewhere.

Lyle wants to be sure the practice continues with downtown developers contributing to the fund.

Measure C also insisted on a special setaside for downtown housing, larger than the other 10 unit-per-year allotment – allowing 15 units in 2006-07 and 40 units in 2007-08.

Measure C and the city have already eased the rules for downtown, changing densities in number of units per acre. Parking space requirements have also been reduced, Lyle said. He said rumors that he was against downtown housing are false.

“Certainly I am in favor of putting housing downtown; I just want them to follow the rules,” Lyle said.

In other downtown news, by Thursday’s deadline City Hall had received five grant/loan proposals for downtown sites, taking advantage of some remaining Redevelopment money, three for housing, one for a business expansion and the fifth for a project to renovate the Granada Theater, considered to be a major player in keeping downtown alive and well.

Planning Commission meets 7pm Tuesday, Dec. 14, City Council Chambers, Morgan Hill City Hall, 17555 Peak Ave. Details: www.morganhill.ca.gov or 779-7248.

Carol Holzgrafe covers City Hall for The Times. She can be reached by e-mail at ch********@*************es.com or phoning (408) 779-4106 Ext. 201.

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A staff member wrote, edited or posted this article, which may include information provided by one or more third parties.

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