the initial infrastructure but not the ongoing costs. Commercial and industrial development does a better job of sustaining city services. Gilroy has an advantage over many local cities because of the sales tax generated by the Gilroy Outlets and auto dealers. It is further estimated that cities need to have at least some growth just to maintain services and to generate enough local sales tax to maintain city services.
The complications of growth continue. Municipalities, elected officials, and residents all react to out-of-control growth. The infrastructure lags behind. Schools go on double sessions. Cities slap tight restrictions on growth until infrastructure for streets, water and sewage can catch up with demand. Unfortunately, all of these things happened locally. Morgan Hill went to double sessions at the high school level. Gilroy moved to a yearround schedule to accommodate more students. The City of Gilroy put tight restrictions on growth until the local wastewater plant could meet demands. In the mid’ 70s voters enacted the first of several growth control measures in Morgan Hill( Measure E). The City Council responded by implementing the RDCS( Residential Development Control System) in 1977. In the’ 80s Gilroy launched the RDO( Residential Development Ordinance) which was formally implemented in 1994. Both RDCS and RDO are point-based growth control systems. Builders and developers submit applications for allocations, which are evaluated based on a point system.
Now this is where it gets really complicated. First, bear in mind that, a city itself does not build homes or businesses. The city does, however, determine how the land can be used or zoned. This is usually seen in a general plan which lays out zoning requirements for the next 20 years or so. A builder / developer submits their plans for a project and completes an application requesting an allocation from the RDCS or RDO. Once the builder / developer gets the allocation they must submit their detailed plans to the city for approval.
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All of this can take time— sometimes years of time. Secondly, allocations are often banked until a developer has enough allocations to build economically. Another issue that can add delays are the ups and downs of the economy. The 2008-09 recession put many allocated and approved projects on hold. It is not unusual for lags to occur between the time allocations are awarded to the time the project gets a building permit and is eventually built. A good example of this is the large 1655-unit Glen Loma project on the east side of Santa Teresa Boulevard in Gilroy. The first thirty RDO allocations for the Glen Loma development were issued in 1999. Today, nineteen years later, only about one-third of the total allocations are ready for occupancy and it will be several more years before the remaining units will be built. Once Glen Loma completes its build out, there are no new projects in the pipeline.
Other complications arise when developers present specific plans that include unique features and interpretations of land use. For example, the Hecker Pass Specific Plan called for the preservation of the agricultural and scenic elements of the area. Glen Loma’ s Specific Plan called for seventeen specific“ neighborhoods” within the 392 acres along with 145 acres of open space and parks. These plan elements harmonize with the reasons why people move to the area—
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CITY OF MORGAN HILL | ADOPTED JULY 27, 2016 we have neighborhoods— we have open space.
In both the RDCS and RDO there are some exceptions that further complicate things. Certain areas, like the Downtown, low-income housing or infill projects might be excluded from the basic allocation numbers or receive special consideration. So, while the RDCS or RDO process might allocate about 200 units per year, the exceptions might increase that number. Morgan Hill has put additional restrictions on the number of allocations to keep the total population below certain targets. In addition to all this there are additional state and federal requirements for low and moderate incomehousing options. Currently in Morgan Hill one in eight new units is affordable. Recently the State of California introduced legislation to force some cities to build additional homes, rentals and / or affordable housing. This is a disturbing trend that has many cities anxious. For example, Assembly Bill 2923, which would force more housing around BART stations; and the failed Senate Bill 827; which would have changed plans and penalties for the lack of regional housing.
Then there’ s LAFCO( Local Area Formation Commission). LAFCO can and does restrict growth by controlling changes in city boundaries. For example: Without additional
GILROY • MORGAN HILL • SAN MARTIN JUNE / JULY 2018 gmhtoday. com
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