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Home My WebLink AboutRDA MOD TO DPA 06-18-90AUL DATE: JUNE 18, 1990 TO: WILLIAM HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: REQUEST FOR MODIFICATION AGREEMENT (DPA) WITH RED PACIFIC COMMERCIAL CENTER RECOMMENDATION QEDEVELOPMENT AGENCY NO. 7 6/18/90 Inter - Com TO DEVELOPMENT PARTICIPATION HILL EDINGER PARTNERSHIP FOR RM 1A051 - 1 dQ1 VnTAnPV It is recommended that the Agency either: 1. Deny the request for modification, or 2. Continue the matter. BACKGROUND The Redevelopment Agency at its regular meeting of May 21st reviewed a request from the Red Hill Edinger Partnership to expand allowable uses on the site to allowable uses permitted under current zoning, including churches (subject to a Conditional Use Permit) on the subject property. (See attached staff report dated May 21, 1990). The matter was continued to permit staff to meet and share information with Mr. Wolfe representing the prospective church use. Staff provided Mr. Wolfe with a list of approximately 15 alternative sites within the City's Industrial Zones. A number of the sites complied with the City's guidelines for church locations and there were approximately 6 sites which were impacted by the current church guidelines. The Planning Commission, however, does have the flexibility to review each request on an individual basis and approve a location.that does not comply with the guidelines. Mr. Wolfe has reviewed a number of sites and for a variety of reasons approximately 9 sites have been eliminated largely due to existing condominium associations within a project not wanting a church use, there being a lack of parking, or a project was "for sale" instead of rent. He seems prepared to continue to explore all alternatives. He has, however, raised an issue about the Red Hill Partnership site. The City in September of 1986 approved a Conditional Use which permitted an expansion of retail uses as part of the research and development portion of the project (Resolution 2361). He feels that this may indicate a precedent for modifying the Development Participation Agreement (DPA) on the site. Redevelopment Agency Report Red Hill Edinger Partnership June 18, 1990 Page 2 Staff, however, in reviewing the matter and status of the DPA do not believe that the previous Planning Commission action in late 1986 negatively impacted the original revenue estimates for the project nor future consistency with the Pacific Center East Specific Plan. The Executive Director at this time still does not believe that an amendment to the DPA, as requested would be in the Agency's or City's best interest. We would however, be prepared to continue to meet and provide assistance to the church or to explore other options and alternatives with the developer. r' Christine Shingleton Director of Communit evelopment CAS:mas Attachments Community Development Department ALi L IN U A 157 [E: TO: FROM: SUBJECT: MAY 21, 1990 WILLIAM A. HUSTON, CITY MANAGER COMMUNITY DEVELOPMENT DEPARTMENT TVELOPMENT AGENCY 0. 6 5/21/90 Inter - Com REQUEST FOR MODIFICATION TO DEVELOPMENT PARTICIPATION AGREEMENT (DPA) WITH RED HILL EDINGER PARTNERSHIP FOR PACIFIC COMMERCIAL CENTER AT 1421 - 1481 EDINGER RECOMMENDATION It is recommended that the Agency deny the request for modification to the subject agreement. BACKGROUND In January of 1986 the Redevelopment Agency entered into a Development Participation Agreement (hereinafter referred to as "Agreement") with Red Hill Edinger Partnership who agreed to construct a 5,470 square foot restaurant (now known as Chelsea's) and two research and development buildings (now known as Tustin Commerce Center") totalling 62,100 square feet situated on the north-east corner of Red Hill Avenue and Edinger Avenue. As part of the Agreement, the developer also agreed to use restrictions recorded against the property which limited the subject site to the intended uses. Specifically, the R&D buildings were to be occupied by R&D uses only and the same with the restaurant. The use covenants established in the Agreement, were binding on the Developer and any successor in interest to the property until November 22, 2006 unless provisions were made in the Agreement for earlier termination. Under the Agreement, the Agency committed to reimburse the developer for actual costs of specific off-site improvements, in an amount not to exceed $250,000. As an additional separate concession, the City also agreed to relieve the developer of approximately $111,780 in Interim Circulation Improvement Fees within Specific Plan Area No. 7 (the Pacific Center East project area) . It was originally estimated that the return from the project in the form of annual sales tax and property tax increment would repay the Agency contribution within approximately 5 years. The developer has now requested that the allowable uses for the property be expanded to include all uses, including churches, which may be allowable under the current zoning for the site. It is the developer's belief that additional uses for the site will not be Redevelopment Agency Report Red Hill Edinger Partnership May 21, 1990 Page 2 detrimental to the neighborhood, nor will they place undue strain on resources and infrastructure in the area. STAFF ANALYSIS AND REPORT Staff has reviewed the developer's revenue projections made for the consistency of the request with Specific Plan under preparation. items follows. 1. Revenue Analysis request in light of the original project and also to determine the Draft Pacific Center East A discussion of each of these The original analysis of costs and revenues for the project indicated that return from the project in the form of sales taxes and property tax increment would repay the Agency contribution on the project within approximately five years or up to seven years if one takes into consideration the waiver of circulation improvement fees in the amount of $111,780. This original estimate was based on the use restrictions imposed on the site particularly the encouragement of retail uses (the restaurant and ancillary commercial uses located within the R&D buildings). An examination of revenues received to date on the project have indicated that the project to date has generated approximately $76,050 less revenue than the original $250,000 contribution that the Redevelopment Agency made to the project or approximately $187,825 below the combined Redevelopment Agency contribution and Interim Circulation fee waiver made by the City. Since use restrictions on the site were the original basis for the Agency's contribution to the site, it will be important to maintain the potential for uses on the site which produce revenue in order for the City to fully recover its original contribution to the project. Until a full return on the Agency and City's financial contribution to the project, staff would not support an expansion of permitted uses on the site and removal of current use restrictions contained in the Agreement. The developer knowingly agreed to such restrictions and use covenants on the property through year 2006. In addition, approving such a request could set the precedent for other future requests from projects the Agency has financially assisted and also required Community Development Department Redevelopment Agency Report Red Hill Edinger Partnership May 21, 1990 Page 3 use restrictions on including the Tustin Plaza and Plaza La Fayette projects. 2. Consistency with Pacific Center East Specific Plan - The Pacific Center East Specific Plan which has been in progress for the last 5 years is nearing its completion schedule. The Draft Specific Plan proposes the Chelsea's restaurant site to have a "Commercial Center" designation which would permit family and specialty restaurants as an outright permitted use. The land use designation for the existing Research and Development portion of the RESCO site is proposed as "Technology Center" in the Draft Specific Plan. Under the purpose and intent of the "Technology Center" designation, the uses for this category are for the development of a general research and development, industrial and high technology center, with opportunities for limited ancillary commercial and office uses. Principal land uses for the Technology Center are proposed to be limited primarily to research and development and industrial uses...". Specifically, the listed uses include: Research and Development (including laboratories, product development and manufacturing); Light industrial (including manufacturing assembly and distribution); ° Accessory office, and Accessory Commercial Uses As the Agency is aware, the delay in preparation of the Specific Plan has resulted based on the need to comprehensively plan and design solutions to the major impediments to growth in the area, particularly congestion on areawide arterials serving the project area, unacceptable levels of service at intersections and at freeway ramps and limited access. A comprehensive traffic study has been completed to address these issues within the Specific Plan area and land use restrictions are being drafted based on assumptions in the traffic study and the need to enhance capacity wherever possible. Community Development Department Redevelopment Agency Report Red Hill Edinger Partnership May 21, 1990 Page 4 The developer is now requesting that all uses currently allowed in the Industrial (IN) and Planned Industrial (PM) Districts be permitted on the project site. The request would permit uses not currently authorized by the Agreement and uses which are not anticipated to be permitted or compatible with the Draft Specific Plan. Some of these uses might include: administration and professional offices (as a primary use, not accessory to an R&D use), off-street parking lots, Building Yards, Churches, retail commercial uses (as a primary use not accessory to an R&D use), and professional, instructional, motivational, vocational and/or seminar schools. These potential uses are inconsistent with the current assumed uses approved in the Agreement and could have significant implications on the traffic study and land use assumptions prepared for the Pacific Center East Project Area. CONCLUSION Staff have investigated the status of the Agreement in terms of the original revenue estimates for the project and the consistency of the request with the Draft Pacific Center East Specific Plan. It is not believed that an amendment to the Agreement at this time would be in the Agency's or City's best interest. Christine A. Shingl on Director of Communi y Development CAS:kbc Attachments Community Development Department A REVIEW OF REVENUE ESTIMATES i RESCO PROJECT FISCAL YEAR 1986-87 1987-88 1988-89 1989-90 Property Valuation (1) Restaurant 511673 1085057 1108227 1131854 R&D 2371526 3106431 3172130 4818710 TOTAL 2883199 4191488 4280357 5950564 RDA tax increment(2) 28832 41915 42804 59506 (less 20% housing set -a -side requirement) 5764 8383 8561 11901 Net RDA tax revenue 23068 33533 34243 47605 Sales tax revenue(3) ----- 4219 14485 16801 Total combined revenue 23068 37752 48728 64406 (1) net figure, 1985 taxable values already subtracted (2) 1% of property valuation (3) from all sales tax sources on site, only includes revenues received to date Community Development Department RE Y April 20, 1990 i Ms. Christine Shingleton 3355 `'J, i ".V(, ; ;0171 Director of Community Development NE1'iPLDRT PEACH (:A�IFp1iMA 41:i ! CITY OF TUSTIN 714 -c73 -G500 300 Centennial Way Tustin, CA 92680 RE: DEVELOPMENT PARTICIPATION AGREEMENT ('DPA') WITH REDHILL EDINGER PARTNERSHIP AND TUSTIN COMMUNITY REDEVELOPMENT AGENCY FOR PACIFIC COMMERCENTER, 1421-1481 EDINGER, TUSTIN Dear Ms. Shingleton: Pursuant to the Development Participation Agreement ("DPA') dated January 6, 1986, Redhill Edinger Partnership, the developer of the property located at 1421-1481 Edinger, Tustin, constructed two Research and Development (`R & D`) buildings and a 5,470 square toot restaurant. The DPA allowed for R & D uses of the properly along with the Restaurant. Subsequently, the City of Tustin expanded the allowable uses for the property in�et�iembey, 1986 in Resolution 2361, which allowed retail uses for the prernise5 Sut�;ect to certain parking requirements. At this time, the Developer Is asking that the allowable uses for the property be expanded to include all uses, including churches, which may be allowable under the current zoning for the site. It is the developer's belief that additional uses for the site will not bu detrimental to the neighborhood, nor will they place undue strain on resources and Infrastruciure in the area. Since at least one lease for vacant space is contingent ort this, time is of the essence in this matter. Should you have any questions, please contact nye at (714) 673-6500 ext 231. Thank you for your consideration. Yours Truly, RESCO FINANCIAL ei`2 r1.0 -.7- (ja es K. Biram et Manager 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2361 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TUSTIN, APPROVING USE PERMIT 86-25 AT 1421 AND 1451 EDINGER AVENUE. The Planning Commission of the City of Tustin does hereby resolve as follows: ft I. The Planning Commission finds and determines as follows: A. That a proper application, (Use Permit No. 86-25) has been filed on behalf of Resco Development to authorize retail uses at 1421 and 1451 Edinger Avenue. B. That a public hearing was duly called, noticed and held on said application. C. That establishment, maintenance, and operation of the use applied for will not, under the circumstances of this case, be detrimental to the health, safety, morals, comfort, or general welfare of the persons residing or working in the neighborhood of such proposed use, evidenced by the following findings: The use is in conformance with the Tustin Area General Plan and the proposed Specific Plan No. 7. D. That the establishment, maintenance, and operation of the use applied for will not be injurious or detrimental to the property and improvements in the neighborhood of the subject property, nor to the general welfare of the City of Tustin, and should be granted. E. Proposed development shall be in accordance with the development policies adopted by the City Council, Uniform Building Codes as administered by the Building Official, Fire Code as administered by the Orange County Fire Marshal and street improvement requirements as administered by the City Engineer. F. That this project is categorically exempt from the requirements of the California Environmental Quality Act. G. Final development plans shall require the review and approval of the Community Development Department. FERC Copy 31 L! 9 10 11 12 13 14 15 16 17 13 191 2U 21' 22 23 24 25 26 27 281 Resolution No. 2361 page two II. The Planning Commission hereby approves Conditional Use Permit No. 86-25 to authorize retail commercial uses at 1421 and 1451 Edinger Avenue subject to the following conditions: A. That a master sign plan shall be submitted for review and approval prior to issuance of permits. B. Parking calculations shall be maintained for each tenant improvement. If the calculations of floor areas exceed the number of parking spaces provided, no further permits will be issued for retail uses. The retail uses may not exceed 60% of the gross floor area (37 260 square feet). PASSED AND ADOPT a regular tin a ustin Pla ing Commission, held on the day of 198 • Recording Secretary g C ARLES E. r-CKETT Chairman �IAIG OF CALIFORyIA) COUNiY OF ORANGE- ) CITY OF TU S T I N 11 DONNA ORR , the undersigned, hereby certify that I am the Secretary of the Planning Commission of the City of Tustin, California;, that Resolution No. was duly passed and a g ul ar Ieeti g_ of the Tusti n anni ng Commission, held on / m day of ej DONNA ORR Recordi ng Secretary Recording adopte"t, theft IItI I �-J - Ili jL.,:•-11 05-24-90 A ...................... RENT SIZE OFFICE •........................................ PARK YARD DH GL SPUR SPRK HT --......................................... AMPS SALE CITY COMMENTS 339 0.55G 7,920 550 2:1 P P 3 N Y 16 400 TUSTIN -.,.-..................... POL BLDG 37000 SO FT $4,356 AV 01-90 LOKBOX SUITE 105 271/480 14312 FRANKLIN AVE FRANKLIN / WALNUT AVE THOS.GRID 2485 32049 SF DIV TO 7920 SF - TUSTIN FRWY COMM CENTER 694 B STREET 55 FREEWAY/5 FREEWAY THOS.GRID 23F3 GOOD FREEWAY ACCESS 4000 AMPS AVAILABLE FRONTS 6 STREET AV 30 DAYS CALL AV 01-90 LOKBOX 337 0.55G 7,920 550 2:1 P P 1 N Y 16 400 TUSTIN POL BLDG 37000 SO FT 54,356 SUITE 103 277/480 14312 FRANKLIN AVE FRANKLIN / WALNUT AVE THOS.GRID 2485 32049 SF DIV TO 7920 SF 4000 AMPS AVAILABLE AV 01-90 LOKBOX 338 0.55G 7,920 550 2:1 P P 1 N Y 16 400 TUSTIN POL BLDG 37000 SO FT $4,356 SUITE 104 277/480 14312 FRANKLIN AVE IRANKLIN / WALNUT AVE THOS.GRID 2485 32049 SF DIV TO 7920 SF 4000 AMPS AVAILABLE AV 01-90 LOKBOX 115. 0.45G 8,000 0 2:1 N 2 1 N Y 20 T. S. TUSTIN POL BUILDING 30000 SO FT $3,600 10000 SF DIV TO 2000 SF 14811 MYFORD ROACH HYrORD RD /WALNIJT THOS.GRID 2486 WHSE STORAGE ONLY-UPTO 20005F OFC POSS/TRUCK PKG AV 04-90 CALL 336 0.55G 8,289 550 3:1 P P 1 N Y 16 400 TUSTIN POL BLDG 37000 SO FT 14,559 SUITE 102 277/430 14312 FRANKLIN AVL FRANKLIN / WALNUT AVE THOS.GRID 2485 ;2000 SF PRODUCTION OFC. 32049 SF DIV TO 7920 SF AV 01-90 LOKBOX 857 0.58N 8,292 2,274 2:1 N N 1 N Y 20 400 TUSTIN PART OF MULTI INO'L BLDG $4,809 - TUSTIN FRWY COMM CENTER 694 B STREET 55 FREEWAY/5 FREEWAY THOS.GRID 23F3 GOOD FREEWAY ACCESS FRONTS 6 STREET AV 30 DAYS CALL 1627 0.45G 9,000 0 2:1 N 1 1 N Y 10 T.S. TUSTIN POL BUILDING 60500 SO FY 54,050 DEAD STORAGE ONLY -IDEAL 2922 DOW AVE MYFORD RD /5 FREEWAY THOS.GRID 24A6 FOR RECORD STORAGE 100% D/C AIR CM SPACE AV W/NOTICE CALL 159 0.65G 90489 3,400 2:1 N N 2 N Y 16 200 TUSTIN POSSIBLE PURCHASE AVAIL _ $6,168 3 CONDOS -FI -F2 AND G 2852 WALNUT AVE WALNUT AVE/MYFORD RD THOS.GRID 2485 9489 SF DIV TO 3000 SF VERIFY OFFICE SIZE AV 04-90 CALL Information contained her�:in han hnAn nhtAinrxl frnm sources that we doom reliahlA; hnwtivor, we do not guarantee its accuracy. - 2 - 05-24-90 # RENT SIZE OFFICE PARK YARD DH C,L SPUR SPRK 147 AMPS SALE CITY COMMENTS 661 0.68G 60000 3,000 2:1 N N 2 N Y 16 200 - TUSTIN -PURCHASE -AVAIL -- $4,080 POSSIULE 2852 WALNUT AVE WALNUT AVE/MYFORD RD THOS.GRID 248 5 ? OF 3 CONDOS F1 AND F2 Fl 9489 SF DIV TO SF VERIFY OFFICE SIZE AV 03.90 CALL 815 1.356 6,000 T.S. 4:1 N N N N Y 12 T.S, TUSTIN 58,100 POL BUILDING 48000 SO FT 15001 RED HILL AVE EDINGER AV/RED HILL AVE THOS.GRID 23E5 100% OFFICE TO SUIT UNDER CONSTRUCTION $1.35 FSG/1ST FLOOR SPACE AV 09-90 CALL 103 0.79N 6,025 3,800 4:1 N N 1 N Y 18 400 TUSTIN $41760 PACIFIC COMMERCENTER 1451C EDINGER AVE RED HILL / EDINGER AVE THOS.GRID 23[4 (POLE) 11946 DIV TO 5921 APPROVED RETAIL USE FULL COMMISSION AV 05-89 LOKBOX 131 0.959 6,270 T.S. 4:1 N N 3 N Y 21 T.S. TUSTIN NEKELLAR CENTER — S5,956 14282 FRANKLIN AVE WALNUT AVE/FRANKLIN AVE THOS.GRID 2485 AIR COND NOT IN PLACE $18.00 T.I. ALLOWANCE 3.5:1 PARK/SUITES 103-4-5 AV 04-89 LOKBOX 801 0..i, _ 6,386 1,780 2:1 P N 1 N Y 18 600 TUSTIN 16786 SF DIV TO 6386 SF ri , 31 14251 CHAMBERS MYFORD RD /WALNUT AVE THOS.GRID 2485 2:1 + CAR PARKING ENG AREA IN OFFICE AREA UNIT B / VERIFY AMPS AV 30 DAYS CALL 1670 .0 6, BU 4,8£6 3:1 N N 2 N N 16 1000 $138.00 TUSTIN ALL CASH AGL: 5+ YEARS $950,268 FREE STANDING BUILDING 2695 I)r-4 AVE SURD RD /WALNUT AVE THOS.GRID 2486 GOOD STRFFT FRONTAGE TUSTIN COMMERCE CENTER AV 09-90 CALL 106 0.799 $5,856 14216 3,7874:1 N N 1 N Y 18 ED;'J;ER AVE RED HILL / EDINGER AVE THOS.GRID 400 TUSTIN PACIFIC COMMERMENTER (POLE) 17521 DIV TO 7413 23E4 LEASE OUT FOR SIGNATURE FULL COMMISSION AV 05-89 LOKBOX 1631 0.RON 7,3110 60517 2:1 N 1 N N Y 22 T.S. TUSTIN POL fi11ILDING 58000 SO FT 56,000 6517SF SHOWRM OR OFFICE 15551 RLD HILI AVL RLD HILL /WARNLR AVL IHO,.GRID 230 1 SHARED DH TRUCK DOOR BLDGS CENTER PORTION AV 03-90 CALL Information contained herein hes been obtained frcxn sources that we deem reliable; however, we do not guarantee its accuracy. - 1 -