City Council

4.A. Mercury Senior Apartments Project: Approval of a Density Bonus, Environmental Impact Report\nAddendum, financial requests, and associated agreements\n— 1. Approve an Affordable Housing Agreement, including Notice of Affordability Restrictions,\nwith Brea Mercury LP for the Mercury Senior Apartments Project;\n— 2. Approve a Loan Agreement with Brea Mercury LP, which includes a loan of $2,331,800\nfrom the City’s Housing Trust Fund (270) and up to $659,311 in deferred development impact\nfees for the development of said affordable project;\n— 3. Adopt Resolution No. 2025-057 approving the following: a. Density Bonus (DB) No. 202501, a request to utilize the Density Bonus parking standards and two Density Bonus waivers of\ndevelopment standards to allow for reduction in required minimum common open space and\nbicycle parking, subject to conditions of approval provided as Exhibit A of the said resolution;\nb. Addendum to the Final Environmental Impact Report (FEIR) for the Mercury Lane Project (EIR\nSCH No. 2018121032 Addendum No. 1) pursuant to California Environmental Quality Act\n(CEQA) Guidelines Section 15164;\n— 4 Approve an Affordable Housing and Regulatory Agreement and Declaration of Restrictive\nCovenants (Density Bonus Agreement) with Brea Mercury LP;\n— 5 Find the Affordable Housing Agreement, Loan Agreement, and Density Bonus Agreement\nexempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3);\n— 6. Amend the Fiscal Year 2025-27 Operating Budget to appropriate $2,331,800 in the City’s\nHousing Trust Fund (270) for a loan payment to the development of said affordable housing\nproject;\n— 7. Approve the deferral of development impact fees for said affordable housing project in an\namount not-to-exceed $659,311, as stated in the Loan Agreement; and\n— 8. Authorize the City Manager or designee to: a. Execute the Affordable Housing Agreement,\nincluding Notice of Affordability Restrictions, with Brea Mercury LP; b. Execute the Loan\nAgreement with Brea Mercury LP; c. Execute the Density Bonus Agreement with Brea Mercury\nLP; and d. Administratively make non-monetary revisions to the three above-mentioned\nagreements and related documents as necessary or appropriate.