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HomeMy WebLinkAbout11 2ND AMEND E.T. DEV 12-04-95NO. ! ! 12-4-95 .~ATE' DECEMBER 4, 1995 lnter-Com TO' FROM' SUBJECT: WILLIAM A. HUSTON, CITY MANAGER OFFICE OF THE CITY CLERK ORDINANCE NO. 1148, SECOND AMENDMENT TO EAST TUSTIN DEVELOPMENT AGREEMENT RECOMMENDATION: Have second reading by title only and adoption of Ordinance No. 1148 (roll call vote). BACKGROUND: The following Ordinance No. 1148 was introduced at the November 20 1995 City Council meeting: ' ORDINANCE NO. 1148 -AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING THE SECOND AMENDMENT TO THE EAST TUSTIN DEVELOPMENT AGREEMENT, AS DEFINED BY SECTION 65865.2 OF THE' CALIFORNIA GOVERNMENT CODE, BETWEEN THE CITY OF TUSTIN AND THE IRVINE COMPANY PERTAINING TO DEVELOPMENT WITHIN THE EAST TUSTIN SPECIFIC PLAN AREA Valerie Crabill Chief Deputy City Clerk 1 ORDINANCE NO. 1148 6 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, APPROVING THE SECOND AMENDMENT TO THE EAST TUSTIN DEVELOPMENT AGREEMENT, AS DEFINED BY SECTION 65865.2 OF THE CALIFORNIA GOVERNMENT CODE, BETWEEN THE CITY OF TUSTIN AND THE IRVINE COMPANY PERTAINING TO DEVELOPMENT WITHIN THE EAST TUSTIN SPECIFIC PLAN AREA The City Council of the City of Tustin does hereby ordain as follows: I . The City Council finds and determines as follows: A. That on April 7, 1986, the East Tustin Specific Plan was adopted by the City Council. . That as a required element of the East Tustin Specific Plan, a Development Agreement was adopted by the City on November 3, 1986, . prior to authorization of any development within the project area. C. That the proposed Second Amendment to the East Tustin Development Agreement has been submitted by The Irvine Company pursuant to applicable provisions of state law and' local ordinances and with the concurrence of the City of Tustin. De That Addendum #5 to EIR 85-2 has been prepared in conjunction with the proposed project .in conformance with the requirements of the California Environmental Quality Act. E. That a public hearing was duly noticed, called and held by the Planning Commission on March 13, 1995 and continued to March 27, 1995, and by the City Council on June 5, 1995. Project scope changes were further considered by the Planning Commission on October 9, 1995 pursuant to Government Code Section 65857. A second public hearing was duly noticed, called and held by the City Council on November 20, 1995. Fe The Second Amendment would be consistent with the objectives, policies, general land uses and programs specified in the General Plan, as amendment by General Plan Amendment 94-001, particularly the Land Use Element which encourages well~ bal'anced land uses and while maintaining a healthy diversified economy. 28 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ordinance No. 1148 Page 2 · Ge The Second Amendment would be compatible with the uses authorized by the East Tustin Specific.Plan, as amended by Zone Change 94-004. H · The Second Amendment would be in conformity with public necessity, public convenience, general welfare and good land use practices in that the Second Amendment would provide for dedication of land devoted for park purposes, while still providing for the overall' residential and commercial development anticipated by the East Tustin Specific Plan. I · The Second Amendment would not be detrimental to the health, safety and general .welfare of the community in that the amendment would reduce the overall allowable dwelling unit count within the Tustin Ranch area from 9,178 units to 8,058 Units which represents a twelve (12%) reduction. J · The Second Amendment would not affect the orderly development of the property in that the land use patterns, as amendment by General Plan Amendment 94-001 and Zone Change 94-004 would provide for potential commercial, and residential development consistent with the capacity of the supporting infrastructure and street improvements. K. The Second Amendment would 'have a positive fiscal impact on the City which is required to be monitored through the East Tustin Fiscal Monitor as the elimination of the hotel from the phasing schedule as a revenue generator woUld be replaced· by an equivalent amount of retail space in the phasing schedule. II. The Irvine Company shall pay City's defense costs (including attorneys' fees) and indemnify and hold City harmless from and against any claims, losses, liabilities, or damages assessed or awarded against City by way of judgement, settlement or stipulation (including awards for costs, attorneys' fees, and expert witness fees), arising from actions filed against the City challenging the City's approval of the Second Amendment to the East Tustin Development Agreement. III. The City Council hereby approves the Second Amendment to the East Tustin Development Agreement as included in Exhibit A attached hereto and subject to final approval of the City Attorney. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ordinance No. 1148 Page 3 PASSED AND ADOPTED by the City Council of the City of Tustin, at a regular meeting on the 20th day of November, 1995. JIM POTTS MAYOR Pamela Stoker, City Clerk STATE 'OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) SS CERTIFICATION FOR ORDINANCE NO. 1148 PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, CalifOrnia, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Ordinance No. 1148 was duly and regularly introduced at a regUlar meeting of the City Council held on the 20th day of November, 1995 and passed and adopted at a regular meeting of the City Council held on the 4th day of December, 1995, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: Pamela Stoker, City Clerk SECOND AMENDMENT TO THE EAST TUSTIN DEVELOPMENT AGREEMENT THIS SECOND AMENDMENT (the "SECOND AMENDMENT") to the East Tustin Development Agreement (the "ETDA") is made effective , 1995, by and between The Irvine Company, a Michigan corporation ("Developer"), and the City' of Tustin, a California municipal corporation ("City"), with respect to the following: RECITALS a. This SECOND AMENDMENT amends the ETDA entered .into by and between City and Developer effective December 3, 1986, and approved by City by Ordinance No. 978. The ETDA concerns all of that real property (the "Property") described in Exhibit "A" to the ETDA and delineated on Exhibit "B" thereto, which description and delineation are incorporated herein by this reference. At the time of its entry into the ETDA, Developer was the fee owner of the Property, and is the fee owner of the areas of the Property specifically involved in this SECOND AMENDMENT. The ETDA has been amended .once previously, effective March 16, 1992, and approved by City by Ordinance No. 1082 ("First Amendment"). "The term "ETDA" is used herein to refer to the ETDA as amended by the First Amendment. o The ETDA provides for -the development of the Property in accordance with the East Tustin Specific Plan adopted by City on March 17, 1986 (the "Specific Plan"). C o The Specific Plan and ETDA provided for the reservation of school and park sites anticipated to be needed to serve the future residents and occupants of the Property. As the Property has been developed, however, certain sites reserved for school- or park purposes are no longer needed for those purposes,~ and should be redesignated for residential development subject to the dedication of a new neighborhood park, and parking for a future neighborhood park.. City and Developer have also considered the feasibility of development of hotel uses on the Property, and have determined that hotel construction is unlikely within the next ten years, and the ETDA should be amended accordingly. D. Amendments to the Specif. ic Plan, approved by the City Council on November 20, 1995, provide for changes in the Land Use Designations of the.East Tustin Land Use Plan relating to the release of certain school and park sites. E . In light of the foregoing, City and Developer desire to further amend the ETDA t'o accomplish the foregoing purposes and to provide for the development 'of the Property in accordance with the Specific Plan, as amended. EXHIBIT A AGREEMENT NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants hereafter contained, and for the purposes stated above, City and Developer hereby agree as follows: 1. Incorporation of Amendments to Specific Plan. Exhibit "C" to the ETDA, as amended, which is the Specific Plan, is hereby amended as set forth in the attached Exhibit "C". Among other minor changes, the amendments to the Specific Plan accomplish the following: ao The LAnd Use Designation of the East Tustin Land Use Plan for Parcel 2 of Parcel Map 88-315 is changed from HS (High School) to designate approximately 16 acres at ML (Medium-Low) Density Residential with a Neighborhood Park Site located at the northeast corner of Tustin Ranch Road and Heritage Way, and approximately 24 acres at M (Medium) Density Residential as generally depicted in Exhibit C-1. o The Land Use Designation of the East Tustin Land Use Plan for Lot 27 of Tract 13627 is changed from GC (General Commercial) to designate approximately 19 acres at MH (Medium-High) Density and approximately 12 acres at GC (General Commercial). o k. B o Site Access, Landscapinq Setback and Buildinq Heiqht, and Special Development Restrictions. Vehicular access to the Medium Density Site from Irvine Boulevard shall be at its signalized intersection with Robinson Road. Vehicular ACcess from Tustin Ranch Road shall be at, or southerly of, the intersection of Palermo and Tustin Ranch Road. An expanded thirty five (35) foot setback along Tustin Ranch Road from the edge of the curb to the residential improvements shall be provided, consisting of nine (9) feet of landscaped right-of-way and an additional twenty six (26) feet of landscaped area, all thirty five (35) feet of which is to be annexed for maintenance purposes to the Tustin Ranch Landscape and Lighting District (the "Lighting District"). The Lighting District shall be responsible for maintenance of the landscaping in all landscape setback .areas around the Medium Density Site and in dedicated right-of-way. Ce De Ee The building height of any future development provided on the Medium DensitY sites shall be limited to two (2) stories. No more than 350 apartment units may be considered on the Medium Density site located adjacent to Irvine Boulevard, away from Tustin Ranch Road. A "For-Sale" townhome or single-family detached residential product shall be-.provided at a maximum of 16 dwelling units per acre on the Medium Density site located at the southeast corner of Irvine Boulevard and Tustin Ranch Road. 3. Neighborhood Park'. Developer shall dedicate by separate instrument at the time of recordation of a final map on Parcel 2 of Parcel Map-88-315, a minimum 3.6 net acre neighborhood park to be located on the northeast corner of Tustin Ranch Road and Heritage Way. The' Developer shall receive land credit in the East Tustin Parkland Dedication Summary maintained by the City's Community Services Department for the amount of land area dedicated to the City for the 3.6 acre dedication. In addition, Developer shall contribute to the City Two Hundred Thousand Dollars ($200,000) toward the improvement of the neighborhood park. No land credit shall be received for the monetary contribution. Developer agrees to sell to City at City's cost and City agrees to purchase 1.4 net acres of additional land adjacent to the dedicated 3.6 acre neighborhood park site required above. Such acquisition shall occur when the 3.6 acres are dedicated. Developer also agrees to advance monies for the design and improvement costs of the total 5 acre neighborhood park and at the City's option, to accept a 'note for the purchase of the 1.4 net acres. No land credit shall be received for the 1.4 acres purchased by City or for improvement costs for which monies are advanced to the City. Payment terms for the 1.4 acres or repayment terms for the design and improvement costs shall be subject to a further negotiated Letter Agreement between the City and Developer, which may be executed by the City Manager, but shall at minimum include the following provisions: ae Payment or/ Payback' Payment or payback schedule of not less than 5 years B. Interest: C. Land Value:. D.. Timing: Not to exceed the Local Agency Investment Fund (LAIF) Rate. Not to 'exceed the' value of buildable residential land with typical urban infrastructure Services to accommodate densities shown on the approved Land Use Plan for Parcel 2 of 'Parcel Map 88-315, as'determined by an appraiser selected by mutual agreement of the City and Developer, with appraisal costs borne by the Developer. The details of when funds will be advanced shall be subject to the Letter Agreement, with the goal of improving the park as soon as possible. 4. Release of Reserved Park'Site. In Order to satisfy Condition 5.1.B of Planning Commission Resolution No. 2603 approving Tentative Tract Map 13627, City has determined in the Specific Plan, as amended, to release Lot 17 of Tract 13627 for residential development provided that. the Developer dedicates to the City an approximate .18 acre portion of Lot 17 of Tract 13627, as generally depicted in Exhibit H, to provide parking for the ~future neighborhood park site located on Lot 16 of Tract 13627. Said dedication Shall occur as part of any future subdivision or development of Lot 17 of Tract 13627. . Apartment Development. k. The second sentence in Section 2.1, Permitted Uses, of the ETDA shall be revised to read as follows: "As a standard governing the exercise of the City's discretion to issue conditional use permits for the construction of apartment projects under' the Specific Plan, the City agrees that the Developer will be allowed to construct apartment projects in the medium high and medium density areas of the Property totalling 25% of the maximum number of dwelling units permitted by the Specific Plan and Tract No. 12345 as of the date of the ETDA (December 1986) which maximum was 9,178 dwelling units." . New sentences shall be inserted after the second sentence in section 2.1, Permitted Uses, of the ETDA and are added to read as follows: "For purposes of calculating the percentage of apartments allowed pursuant to this Agreement, the 1,854 City approved apartment units, as of the date of Amendment No. 2, and 350 apartment units approved by ~City and built by Developer (or any successor) after the date of Amendment No. 2, shall satisfy the 25% apartment unit limitation as stated above. To the extent that Developer or its successors in interest, after the date of Amendment No. 2 convert apartment units to condominium units, the resultant reduction in apartment units can not be used to recalculate the 25% apartment unit limitation and give rise to a claim for additiOnal apartment units. No further approvals for apartment units will be granted by the City." o Hotels. a. The last sentence in Section 1.4 of the ETDA shall be deleted in its entirety. . Section 1.4.1, added by the First Amendment to ETDA is hereby deleted in 'its entirety, and a new Section 1.4.1, Hotel, is added to read as follows: "1.4.1 Hotels. Developer agrees that~ for a period of' ten (10) years following the effective date of this SECOND AMENDMENT, it shall not construct a hotel on its property located between Portola Parkway on the north, the Atchison, Topeka and Santa Fe railroad right-of-way to the south, Myford Road to the west, and Culver Drive to the east." 7. East Tustin Phasinq Plan. The East Tustin Phasing Plan identified in Section 1.9 of the ETDA, and amended by the First Amendment, shall be amended to read as follows: EAST TUSTIN PHASING PLAN CUM. DWELLING DWELLING UNITS UNITS CUM. AUTO SQ. FT. SQ. FT. CENTER RETAIL RETAIL DEALERS 0 0 3 955 955 740 1,695 0 0 4 1,095 2,790 0 0 2 1,303 4i093 400,000 400,000 1 1,273 5,366 663,000 1,063,000 0 1,192 6,558 0 1,063,000 0 1,212 7,770 0 1,063,000 0 288 8,058 80,000 1,143,000 0 8,058 8,058 1,143 , 000 1,143 , 000 10 8. Maximum' Number of Residential Dwellina Units. The maximum number of residential dwelling units authorized by the Specific P~an (7,950 dwelling units) and the Phase I Residential Area as authorized by Tentative Tract No. 12345 (1,228 dwelling units) shall be reduced from a total of 9,178 dwelling units to a total of 8,058 dwelling units. However, the original maximum number of dwelling units permitted by the Specific Plan and Tentative Tract No. 12345 as of the date of the ETDA (December 1986) was a total of 9,178 units and this maximum number of units shall still be uSed for purposes of'calculating the 25% limitation on apartment units'as described in Section 2.1 of the ETDA, as modified by this Amendment No. 2. IN wITNESS WHEREOF, City and Developer have each executed this SECOND AMENDMENT effective as of the date first written above. CITY OF TUSTIN THE IRVINE COMPANY By Mayor By By ATTEST: APPROVED AS TO FORM: City Clerk ETDAREV.2 City Attorney MH Land Use Plan EAST TUSTIN SPECIFIC PLAN City of Tustin LEGEND Q-P-A- & ZONh'~2 t. ANO U~E AREA EXHIBIT C o- 'o C 'o 0 MYFORD ROAD 0 =c -o -°iTl ITl I'rl a-- 7 7 o _~ ~ o o m TR 13627 3.000 ACRES FUTURE: DL~DIC-ATION TO T"HE C.~Ty OF TUSTIN FOR PUBIJC PARK PUrPOSeS II TR 13627 !-7 .2.-'/OO ACRE5 10/31/94