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

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SPR No. 2025-01, VTTM No. 2025-01, and DBA No. 2025-01 — MLC Holdings, Inc./Meritage Homes (2020 East First Street) March 24, 2025 Page 2 Santa Ana Municipal Code (SAMC) Sections 41-1600 through 41-1607. Staff recommends approval of the applicant's request as the project aligns with the intent of the General Plan and MEMU overlay district to establish residential mixed -use and employment centers that are well-connected to public transportation. Additionally, the project contributes to the community's affordable and market -rate ownership housing stock, represents a significant reinvestment in a currently -vacant site, does not result in adverse environmental impacts or serious public health concerns, and is consistent with various goals and policies of the General Plan. DISCUSSION Table 1: Project and Location Information Item Information Project Address and Council Ward 2020 East First Street — Ward 3 Nearest Intersection East First Street and Golden Circle Drive General Plan Designation District Center — Medium High (DC — 3) Zoning Designation General Commercial (C2); Active Urban (AU) within the Metro East Use Overly Zone MEMU Surrounding Land Uses North Eating Establishment/Commercial East Multifamily Residences South School in the City of Tustin West Medical Office and Recreation Field Property Size Gross Area: 3.72 acres 161,956 square feet Net Area: 3.68 acres 160,130 square feet Existing Site Development 118,192-s uare-foot office building Current) Vacant Use Permissions Multi-Famil Residential Zoning Code Sections Affected Uses Article XVI.I (Density Bonus); Active Urban within the Metro East Mixed Use Overlay Zone (MEMU); and Chapter 34 (Subdivisions) Background and Context The project site is currently developed with a five -story, 118,192-square-foot office building and a parking lot, both constructed in 1985. The office building is currently vacant and has been vacant since December 2012. The vacant building would be demolished as part of the proposed project. The project site is located within the MEMU Overlay Zone. The MEMU Overlay Zone was adopted in 2007 to facilitate mixed -used development opportunities in a portion of the City between the Santa Ana (1-5) and Costa Mesa (SR-55) freeways centered on First and Fourth streets. In 2018, the City approved an expansion of the MEMU primarily along First Street to Grand Avenue that resulted in an additional 33 acres of potential mixed - use development. As part of the MEMU expansion in 2018, the City Council certified a Subsequent Environmental Impact Report (SEIR), which contained an updated Mitigation