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Chapter 4 Findings on the Settlement Agreement and the Revised Station District Project CHAPTER 4 Findings on the Settlement Agreement and the Revised Station District Project 4.1 INTRODUCTION As discussed above, the unincorporated association "Friends of the Lacy Historic Neighborhood" filed a Petition for Writ of Mandamus against the City and Agency challenging the certification of the EIR and approval of the TZC, the Station District Project and the related purchase and demolition of certain structures in the Lacy Neighborhood in Orange County Superior Court Case No. 30-2010-00388033- CU-WM-CXC (the "Litigation"). The parties to the litigation entered into a Settlement Agreement to resolve and settle all claims related to the Litigation. The Settlement Agreement relates to and affects the development of the Station District/Developer Project. This chapter describes the primary differences between the Station District Project as previously approved and the Station District Project as modified. It also describes the other terms of the Settlement Agreement. Finally, this chapter includes findings that the Settlement Agreement does not result in any substantial changes to the Station District Project or the circumstances under which the Station District Project is undertaken that would require any major revisions in the Final EIR, and there is no new information with respect to the Project that would require such revisions. Additionally, no other terms of the Settlement Agreement would require revisions to the Final EIR or further environmental analysis because the terms do not involve new significant environmental impacts or a substantial increase in the severity of an impact, and/or have no potential to result in a direct or indirect physical change in the environment, and/or are otherwise exempt from CEQA. 4.2 PREVIOUSLY APPROVED STATION DISTRICT PROJECT The Station District Project approved by the City and Agency in June 2010 proposed to construct 112 rental units and 32 for sale units. Construction of these units was proposed to occur on 43 Agency- owned parcels in the Lacy Neighborhood. This construction would have resulted in the demolition of as many as eighteen (18) residential properties, some of which were determined in the Final EIR to be potentially significant historical resources and one of which is listed on the Santa Ana Register of Historical Properties (SARHP). (See Final EIR, Section 4.4.) 4.3 REVISED STATION DISTRICT PROJECT The Station District Project, as revised, would result in demolition of eight (8) residential properties and would rehabilitate ten (10) residential properties, including the SARHP-listed property (501 E. Fifth Street), all of which would be offered as rental units to very low and extremely low income tenants. In total, the Revised Station District Project would construct 99 rental units and 24 for sale units. Though Revised Station District Project and FOL Settlement Agreement Findings of Fact/Statement of Overriding 4-1 Considerations