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HomeMy WebLinkAboutNS-2518 - Approving the Amendment to the Development Agreement Between City of Santa Ana and Mullrock Mortgage, LLC ORDINANCE NO. N8 -2518 0EEO I~0, ,,, ,, ~ ~ ~- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF SANTA ANA AND MULLROCK MORTGAGE, LLC THE CITY COUNCIL OF THE CITY OF SANTA ANA ORDAINS AS FOLLOWS: Section 1: The City Council hereby finds, determines and declares as follows: The City is authorized pursuant to Government Code Sections 65864 through 65869.5 to enter into development agreements with persons having legal or equitable interests in real property for the purpose of establishing certainty for both City and Owner in the development process. Pursuant to this authority, the City and BentallNVestminster Partners, predecessor in interest to Mullrock Mortgage LLC, previously entered into a Development Agreement dated on or about December 12, 2000. The City enters into this Amendment to Development Agreement pursuant to the provisions of the Government Code and applicable City policies. Co The Planning Commission has, following a public hearing, on November 12, 2002 recommended approval of this Amendment to Development Agreement. Entering into this Amendment to Development Agreement would provide the City with extraordinary and significant benefits that are of regional significance, relate to existing deficiencies in public facilities, require Mullrock Mortgage, LLC to contribute a greater percentage of benefits than would otherwise be required, and represent benefits which would not otherwise be required as part of the development process. The City Council has held a noticed public hearing on this Ordinance, and has considered all testimony presented thereto. Section 2: The City Council has reviewed and considered the information contained in the Final Environmental Impact Report and Addendums (No. 02-286) prepared with respect to this Ordinance. The City Council has, as a result of its consideration, and the evidence presented at the hearings on this matter, determined that, as required pursuant to the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, that this Final Environmental Impact Report and Addendum adequately address the expected environmental impacts of this Ordinance. On the basis of this review, the City Council finds that the Final Environmental Impact Report and Ordinance No, NS-2518 Page 1 of 3 Addendums comply with the requirements of CEQA. The City Council hereby certifies and approves the Final Environmental Impact Report and Addendum and directs that the Notice of Determination be prepared and filed with the County Clerk of the County of Orange in the manner required by law. Pursuant to Title XlV, California Code of Regulations ("CCR") § 735.5(c)(1), the City Council has determined that, after considering the record as a whole, there is no evidence that the proposed project will have the potential for any adverse effect on wildlife resources or the ecological habitat upon which wildlife resources depend. The proposed project exists in an urban environment characterized by paved concrete, roadways, surrounding buildings and human activity. Therefore, pursuant to Fish and Game Code § 711.2 and Title XIV, CCR § 735.5(a)(3), the payment of Fish and Game Department filing fees is not required in conjunction with this project. Section 3: The Amendment to Development Agreement, a true and correct copy of which is attached hereto as Exhibit 1, is hereby approved, and the Mayor and Clerk of the Council are authorized to execute it on behalf of the City. The Clerk of the City is hereby authorized and directed to cause this Development Agreement to be recorded with the County RecordeCs Office. Section 4: If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. ADOPTED this 2nd day of.December, 2002. ,/~L~el A7 ~lid6 //,"Mayor APPROVED AS TO FORM: Joseph W. Fletcher City Attorney i~i~¢m iA~i~taa ifu f/tt c~.r~~y Att o r ney Ordinance No. NS-2518 Page 2 of 3 AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers: Alvarez, Bist, Christy, Franklin, Pulido, Solorio (6) Councilmembers: None (0) Councilmembers Garcia (1) Councilmembers None (0) CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Ordinance No. NS-2518 to be the original ordinance adopted by the City Council of the City of Santa Ana on December 2, 2002, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. ~ Date: ,/o~-~-~2.-~ ~ Clerk of the Council City of Santa Ana Ordinance No. NS-2518 Page 3 of 3 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, California 92702 ATTN: Clerk of the Council FREE RECORDING GOVERNMENT CODE § 6103 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT THIS AMENDMENT is made and entered into this. 18th day of November, 2002, by and between the CITY OF SANTA ANA, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California ("City") and MULLROCK MORTGAGE, LLC, A Delaware Limited Liability Company ("Owner" or "Property Owner"). A. Recitals The parties to this First Amendment to Development Agreement hereby agree as follows 1. City is authorized pursuant to Government Code Sections 65864 through 65869.5 to enter into development agreements with persons having legal or equitable interests in real property for the purpose of establishing certainty for both City and Owner in the development process. City enters into the Agreement pursuant to the provisions of the Government Code and applicable City policies. 2. The City and BentallFvVestminster Partners, Owner's predecessor in interest, have previously entered into a Development Agreement dated on or about December 12, 2000, recorded as Document No. 20000672556 with the Recorder of the County of Orange (hereafter referred to as the "Development Agreement"). 3. Subsequent to execution of the Development Agreement, Bentall/Westminster Partners sold the Property, as that word is defined in the Development Agreement, to Owner. 4. The City and Owner wish to amend the Development Agreement to provide for construction and operation on the Property of (i) an approximate 80,000 square foot, four-story office tower, which may include up to 5,000 square feet of ground floor retail/service, with underground parking of approximately 63 spaces; (ii) an approximate 35,000 square feet 3_ EXHIBIT 1 Ordinance No. NS-2518 two-story health club; (iii) addition of 290 parking spaces to the existing parking structure; and (iv) until commencement of the office tower, surface parking on the Office tower pad as Phase II (as defined in the Development Agreement). 5. The City and Owner additionally wish to amend the Development Agreement to require Owner to pay the City $200,000.00 concurrently with the issuance of the first building permit in full satisfaction of all Exhibit E ELK Mitigation Measures - Project Impact Summary "Traffic and Circulation" mitigation measures other than Traffic and Circulation Mitigation Measure Nos. 1 (TDM program) and 2 (bus turnout), and Exhibit E to the Development Agreement ELK Mitigation Measures - Cumulative Impact Summary "Traffic and Cimulation" mitigation measures. 6. The City and Owner additionally wish to amend the Development Agreement to permit the maximum density and intensity for the Property to be developed to consist ifa maximum of 280,000 square feet of commercial office space (of which up to 5,000 may be ground floor retail/service), a 35,000 square foot health club, and 1,588 parking spaces to be located in the detached parking structure or subterranean parking or surface parking on the Phase II office pad prior to development thereof 7. The City and Owner additionally wish to amend the Development Agreement to require Owner to add an additional $10,000.00 to the cost of the work of public art to be placed on the Property, such that a total of $35,000.00 must be devoted to the work of public art. B. Findings The parties hereto acknowledge and find the following to be true: 1. This Amendment is intended to assure adequate public facilities at the time of development. 2. This Amendment is intended t0~assure development in accordance with City's General Plan, applicable Specific Design Zoning and Capital Improvement Plan. 3.. This Amendment will permit achievement of goals and objectives as reflected in the City's General Plan and all applicable Specific Design Zoning. 4. Owner is required by existing City regulations to provide mitigation for certain impacts and pay certain regulatory fees as conditions of approvals through the regulatory process. : 5. This Amendment will allow City to realize extraordinary and significant public infrastructure facilities and other supplemental benefits in addition to those available through the existing regulatory process. 2 EXItlBIT 1 Ordinance No. NS-2518 : 6. Many of the extraordinary and significant benefits identified as consideration to City for entering into this Amendment represent benefits which would not otherwise be required as part of the development process. 7. On November 11, 2002, the Planning Commission of the City ("Planning Commission"), after giving notice pursuant to Government Code Sections 65090 and 65091, held a public hearing to consider the Owner's application for this Amendment. The Planning Commission recommended to the City Council of City that it execute'this Amendment. On November 18, 2002, the City Council of the City of Santa Ana ("Council"), after providing notice as required by law, held a public hearing to Consider the Owner's application for this Amendment. C. Amendment to the Project. Section 1.2 of the Development Agreement is hereby amended to read as follows: 1.2 Owner. Owner represents and warrants that it has a legal or equitable interest in the real property located in City of Santa gna, California, legally described on Exhibit A attached hereto and incorporated herein, and graphically described on Exhibit B attached hereto and incorporated herein (hereinafter the "Property"). The Property consists of approximately 5.13 acres, located on Tustin Boulevard south of Seventeenth Street in th~ City of Santa Ana. The Owner desires to develop the Property as set forth in Exhibit C on Exhibit B attached hereto and incorporated herein. The Property will be developed with a maximum F.A.R. (floor area ratio)of 1.5. D. Amendment to Public Art'Requirement Section 5.10 of the Development Agreement is hereby amended to read as follows: 5.10 Development, Construction, Installation and Maintenance of Public Art. In consideration for the extraordinary and significant benefits set forth in this Section, the Owner has been legally vested under Section 5.2 with regard to the permitted uses of land, density, and intensity of use, Owner shall cause the design, construction, installation and maintenance of a work of public art on the Property. The work of public art shall be placed on the Property in a location, as approved by the Executive Director of the Planning and Building Agency, that will provide the greatest opportunity for viewing by the general public. It is to be located in an open area viewable from the public right of way, or on the exterior of an assembly. 3 EXHIBIT 1 Ordinance No. NS-2518 The Owner shall expend $35,000 at a minimum on the work of public art. This minimum expenditure may include the work of public art itself (and rendering costs if applicable), the cost of constructing any structure (e.g., a pad) to enable display of the work of public art, the artist's fe~ if separate, and identification plaque(s). This minimum expenditure shall not include any other cost, including but not limited to any costs of land, publicity, administrative costs, art consultant's fee, transportation costs, utility costs to illuminate the artwork, or maintenance costs. To be eligible, the proposed work of public art shall not be: a. a mass produced object from a standard design; b. a reproduction, whether produced by mechanical or other means, of an original work of art; c. elements ofbnilding, designed by the building's architect, as opposed to a public artist commissioned for the express purpose of creating a unique work of public art; nor d. landscaping, in whole or in part. Deliverables specified below must be designed, constructed or executed prior to the triggering event. Deliverable Triggering Event 1. Submit final design and location of Public Art to Planning and Building Agency. Prior to issuance of first.Building Permit, or five (5) years from the effective date of this Agreement, whichever comes first. 2. Install Public Art. 2. Maintenance Agreement with City, binding on Owner and successors, to maintain work of public art in perpetuity. Prior to City's issuance of Certificate of Use and OccuPancy for any building, or six (6) years from the effective date of this Agreement, whichever comes first. Prior to City's issuance of Certificate of Use and Occupancy for any building, or six (6) years from the effective date of this Agreement, whichever comes first. EXHIBIT 1~ Ordinance No. N8-2518 E. Effect of Loss of Use of Health Club Should the health club to be constructed and operated on the Property cease operations in whole or in part, then Property Owner agrees that any future use of all or part of the approximately 35,000 square feet devoted to the health club shall either (a) be utilized by a use for which the parking standard is less than 7.1 parking spaces per 1,000 square feet, or (b) Property Owner shall not seek to utilize the variance to parking standards granted by the City Council of the City in conjunction with this Amendment. F. Exhibit C Exhibit C to the Development Agreement is hereby replaced by Exhibit C attached hereto and incorporated herein by this reference. G. Effect of Amendment The exhibits to this Amendment shall supercede and replace the exhibits to the Development Agreement. Except as necessary to implement the intent of this Amendment, the Development Agreement shall remain in full force and effect. In the event ora conflict, terms contained herein shall prevail over conflicting provisions of the Development Agreement. IN wITNEss WHEREOF, the Parties have executed this Amendment the day and year first above written. 5 EXItlBIT 1 Ordinance No. NS-25t8 ATTEST: Pa~cia E. Healy Clerk of the Council APPROVED AS TO FORM: Joseph W. Fletcher City Attorney By Benjamin Kaufman Chief Assistant City Attomey CITY OF SANTA ANA, a charter city and murdcipal corporation By. David N. Ream City Manager MI3LLROCK MORTGAGE, LLC, A Delaware Limited Liability Company By: TiffS: 6 EXHIBIT l Ordinance No; N$-2518 EXHIBIT C Plan of Development The property is a 5.13-acre parcel located at Tustin Avenue, west of the Costa Mesa (55) Freeway and south of Seventeenth Street in the City of Santa Aha as shown on the map set forth in Exhibit B of this Development Agreement. The assessor's parcbl numbers for the property are 400-21 I'05 and 400-211-04. The development of the property will consist of two phases of development. Phase I will involve construction of a 200,000 square foot, 10-story office tower and a seven level detached parking structure. Phase IIA will consist ofa 35,000 square foot, two-story health club and Phase liB will consist of a 4-story office tower with 80,000 square feet of office space, which may include up to 5,000 square feet of retail space and one level of subterranean parking containing 63 parking spaces. An additional 282 parking space~ will be added to the parking structure to accommodate parking for the Phase II.A. health club and the Phase liB. office tower. The following standards shall specifically apply to the development of the property and are incorporated into this plan of Development for the property: Permitted Uses of theProperty: The uses permitted for the property shall be professional and business offices, commercial/retail uses, and restaurant. II. Density of Use: The density of use for the property .shall consist of a total of 280,570 square feet of commercial office space, 5,000 square feet of commercial retail space, a 35,000 square foot health club, 1,012 parking space~ to be located in one seven level detached parking structure and 63 parking spaces in the subterranean garage to be located within the 4-story office tower. III. Intensity of Use: The intensity of use fqr the property shall be 1.5 of Floor Area Ratio (FAR) (parking structure not included). IV. The Maximum Height and Size of Proposed Buildings: The maximum height and size of the buildings to be constructed in connection with Development of the property shall be subject to a height limitation of 200 feet above ground level, which is defined as the elevation of the top slab of the first floor on-grade, and a total of 337,000 square feet floor area (parking structure not included). 7 EXHIBIT Ordinance No. NS-2518