HomeMy WebLinkAbout2024-068 - Extension of Site Plan Review 2020-03 and Variance No. 2020-06RESOLUTION NO. 2024-068
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA APPROVING A THIRD ONE-YEAR
EXTENSION OF SITE PLAN REVIEW 2020-03 AND
VARIANCE NO. 2020-06 FOR THE 41h AND MORTIMER
MIXED -USE DEVELOPMENT LOCATED AT 409 AND 509
EAST FOURTH STREET
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. On October 12, 2020, the Planning Commission unanimously approved Site
Plan Review No. 2020-03, for a development project over four stories in height,
and Variance No. 2020-06, to allow an increase in the allowable building size and
massing, for a new mixed -use development located at 409 and 509 East Fourth
Street.
B. Pursuant to SAMC Section 41-647, when construction does not commence,
these types of entitlements expire after two (2) years unless the applicant applies
for, and the City Council approves, an extension. Up to three extensions may be
granted.
C. Taking into consideration the difficulties experienced by the development
industry from the global COVID-19 pandemic and its effects on securing funding,
labor, and construction materials, the City Council unanimously approved
Resolution No. 2022-093, approving the applicant's first request for a one-year
entitlement extension on December 6, 2022, extending the subject project
entitlements until December 15, 2023.
D. On August 1, 2023, the applicant obtained all required building permits for
development of the project, including demolition permits for existing buildings at
both project sites.
E. Due to increases in interest rates and their impact on construction loans and
land development costs, the City Council unanimously approved Resolution No.
2023-088, approving the applicant's second request for a one-year entitlement
extension on December 5, 2023, extending the subject project entitlements until
December 15, 2024.
Reso[ution No. 2024-068
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F. In late December 2023, the applicant completed demolition of all existing
onsite buildings, including the former Northgate market.
G. To date, the applicant has been unable to secure acceptable construction
financing to start the project. This is due to high interest rates affecting
construction loans and land development costs, resulting in additional delays to
the project's ability to begin vertical construction. Current loan interest rates have
been 300-500 basis points above historical norms, which not only increases the
cost of construction financing, but also constricts the flow of lender dollars for
construction projects.
H. It is the Planning Division's policy to recommend no more than one-year
extensions at a time, mainly in an effort to encourage the construction of
previously approved projects.
I. The applicant filed a request for the third and final one-year extension on
September 27, 2024. The extension request came before the City Council on
November 19, 2024.
J. In accordance with the California Environmental Quality Act (CEQA) and the
CEQA Guidelines, the extension for this project is exempt pursuant to Section
15061(b)(3). This determination has been made as it has been determined that the
proposed action to extend the existing, approved entitlement does not have the
potential to cause a significant effect on the environment, as the existing, approved
entitlement has already been evaluated pursuant to CEQA.
Section 2. Site Plan Review No. 2020-03 and Variance No. 2020-06 are each
hereby extended for a period of one (1) year until December 15, 2025. This decision is
based upon the evidence submitted, which includes, but is not limited to, the Request
for Council Action dated November 19, 2024, and exhibits attached thereto, and any
public testimony, all of which are incorporated herein by this reference.
Section 3. This Resolution shall take effect immediately upon its adoption by
the City Council, and the City Clerk shall attest to and certify the vote adopting this
Resolution
ADOPTED this 1911 day of November, 2024.
Mayor
Resolution No. 2024-068
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APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
By: 4P-Tp, �jQiJ1�t'u
Melissa M. Crosthwaite
Senior Assistant City Attorney
C%
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
Amezcua, Bacerra, Hernandez, Lopez, _
Penaloza. Phan. Vazauez (7)
one (0
None (0)
ABSENT: Councilmembers None l0
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, JENNIFER L. HALL, City Clerk, do hereby attest to and certify the attached
Resolution No. 2024-068 to be the original resolution adopted by the City Council of the
City of Santa Ana on November 19, 2024.
Date:
Resolution No. 2024-068
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