Item 24 - Agreement No. 2025-01 - MLC Holdings

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Density Bonus Agreement No. 2025-01 — MLC Holdings, Inc./Meritage Homes at 2020 East First Street April 15, 2025 Page 7 A CEQA Section 15168 Consistency Memorandum was prepared by First Carbon Solutions, the applicant's environmental consultant. The purpose of the memorandum was to determine whether the proposed project was exempt from further review, pursuant to the relevant 2007 MEMU Program EIR, certified in 2007, and the MEMU Subsequent EIR, certified in 2018. This memorandum was reviewed by City staff and the City's environmental consultant, Ardurra Consulting. Upon review, it was determined that the project does not introduce new or more severe environmental effects beyond those previously identified. Additionally, there are no substantial changes in environmental circumstances that would necessitate further review. Moreover, as required under CEQA Guidelines Section 15168(c)(3), all applicable mitigation measures from the MEMU EIR and SEIR will be incorporated into the project. Based on this analysis, the project qualifies for an exemption under CEQA, and no further environmental documentation is necessary. Therefore, a Notice of Exemption, Environmental Review No. 2024-53, will be filed for the project. FISCAL IMPACT There is no fiscal impact associated with this action. However, a Fiscal Impact and Economic Benefit Analysis was prepared by the applicant for the proposed project. The analysis indicates that the project is anticipated to result in an increase in General Fund revenues following buildout of the project, which is estimated at approximately $340,716 per year. In addition, there would be an increase in General Fund expenses estimated at approximately $231,055 per year. Accordingly, there is expected to be an annual surplus of approximately $109,662 to the General Fund following buildout of the project. Additionally, the project is anticipated to result in a one-time economic benefit to the City during the construction phase. Specifically, construction of the project would result in an increase in employment by 140.26 full-time equivalent construction -related jobs and an increase in labor income of approximately $12,250,665. Moreover, the applicant is anticipated to pay approximately $2,189,502 in development impact fees to the City. Further details related to the Fiscal Impact and Economic Benefit Analysis included in the report prepared by the applicant's consultant Zimmerman Group is included in Exhibit 3. EXHIBITS 1. Resolution — Density Bonus Agreement 2. Draft Density Bonus Agreement 3. March 24, 2025 — Planning Commission Staff Report and Exhibits Submitted By: Ali Pezeshkpour, AICP, Acting Executive Director of Planning and Building Agency, and Michael L. Garcia, Executive Director of Community Development Agency Approved By: Alvaro Nunez, City Manager