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Home My WebLink About04 SECOND READING AND ADOPTION OF ORDINANCE NO. 1538 (CITY VENTURES)Agenda Item 4 Reviewed: City Manager Finance Director N/A MEETING DATE: TO: FROM: SUBJECT: NOVEMBER 21, 2023 NICOLE BERNARD, ACTING CITY MANAGER ERICA N. YASUDA, CITY CLERK SECOND READING AND ADOPTION OF ORDINANCE NO. 1538 APPROVING DEVELOPMENT AGREEMENT (DA) 2023-0002 (CITY VENTURES HOMEBUILDING, LLC) SUMMARY: Adoption of Ordinance No. 1538 approves Development Agreement 2023-0002 accepting the provision of community public benefits, by including two (2) affordable housing units for very low-income households, payment of a voluntary workforce housing incentive program in-lieu fee, and provision of a 1,392 square foot public amenity space. RECOMMENDATION: That the City Council have second reading by title only and adoption of Ordinance No. 1538. BACKGROUND: On November 7, 2023, the City Council had first reading by title only of Ordinance No. 1538. ORDINANCE NO. 1538 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, APPROVING DEVELOPMENT AGREEMENT (DA) 2023-0002 BETWEEN THE CITY OF TUSTIN AND CITY VENTURES HOMEBUILDING, LLC TO ACCEPT THE VOLUNTARY PROVISION OF COMMUNITY PUBLIC BENEFITS, BY INCLUDING TWO (2) AFFORDABLE HOUSING UNITS FOR VERY-LOW INCOME HOUSEHOLDS, PAYMENT OF VOLUNTARY WORKFORCE HOUSING INCENTIVE PROGRAM IN-LIEU FEE, AND A 1,392 SQUARE FOOT PUBLIC AMENITY SPACE FOR A NEW, LIVE/WORK AND RESIDENTIAL CONDOMINIUM DEVELOPMENT PROJECT THAT WOULD INCLUDE THIRY-FIVE (35) RESIDENTIAL CONDOMINIUM UNITS AND SEVEN (7) LIVE/WORK UNITS, FOR A TOTAL OF FORTY TWO (42) UNITS IN SIX BUILDINGS, INCLUDING TWO (2) AFFORDABLE UNITS, ON APPROXIMATELY TWO (2) ACRES AT 14042 NEWPORT AVENUE Attachment: 1.Ordinance No. 1538 AGENDA REPORT DocuSign Envelope ID: 557DD670-3DA3-4124-8D82-13570A97468F ______________________ Ordinance No. 1538 Page 1 of 5 ORDINANCE NO. 1538 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, APPROVING DEVELOPMENT AGREEMENT (DA) 2023-0002 BETWEEN THE CITY OF TUSTIN AND CITY VENTURES HOMEBUILDING, LLC TO ACCEPT THE VOLUNTARY PROVISION OF COMMUNITY PUBLIC BENEFITS, BY INCLUDING TWO (2) AFFORDABLE HOUSING UNITS FOR VERY-LOW INCOME HOUSEHOLDS, PAYMENT OF VOLUNTARY WORKFORCE HOUSING INCENTIVE PROGRAM IN-LIEU FEE, AND A 1,392 SQUARE FOOT PUBLIC AMENITY SPACE FOR A NEW, LIVE/WORK AND RESIDENTIAL CONDOMINIUM DEVELOPMENT PROJECT THAT WOULD INCLUDE THIRY-FIVE (35) RESIDENTIAL CONDOMINIUM UNITS AND SEVEN (7) LIVE/WORK UNITS, FOR A TOTAL OF FORTY TWO (42) UNITS IN SIX BUILDINGS, INCLUDING TWO (2) AFFORDABLE UNITS, ON APPROXIMATELY TWO (2) ACRES AT 14042 NEWPORT AVENUE The City Council of the City of Tustin does hereby ordain as follows: SECTION 1. The City Council finds and determines as follows: A.That a proper application has been submitted to the City of Tustin (the City) Community Development Department by City Ventures Homebuilding, LLC for a Subdivision Map (SUB 2023-0003) / Vesting Tentative Tract Map (VTTM No. 19164), Design Review (DR) 2023-0019, Final Approval of RAR, Density Bonus requests for one (1) concession to remove the requirement for full replacement of frontage improvements along El Camino Real; two (2) waivers to reduce the minimum required ground floor commercial development standards within the live/work units that include the interior depth from 45 feet to 13 feet-8 inches (13’-8”) and first (1st) floor plate height of the live/work units from sixteen (16) feet to 10’1” feet; and use of State Density Bonus Law parking standards, which allow tandem parking; and Development Agreement (DA) 2023-0002 to construct a new, live/work and residential condominium development project that would include thirty-five (35) residential condominium units and seven (7) live/work units, for a total of forty-two (42) units in six (6) buildings, including two (2) affordable units, on approximately two (2) acres. The project would also include an enclosed, two-car garage and private open space for each dwelling unit, a total of seventeen (17) guest surface parking spaces, common open space areas, landscaping, and a 1,392 square foot (SF) public amenity space fronting El Camino Real. The project is located at 14042 Newport Avenue within Downtown Commercial Core Specific Plan (DCCSP; SP12). B.That Section 6.1.3.1 of DCCSP requires that approval of a Development Agreement shall be required for approval of a Subdivision Map. Applications DocuSign Envelope ID: D6D49AF1-372F-4200-8994-5F57C33E90EBDocuSign Envelope ID: 557DD670-3DA3-4124-8D82-13570A97468F ______________________ Ordinance No. 1538 Page 2 of 5 for Development Agreements shall be processed in accordance with Section 6.1.4, Approval Authority of DCCSP and Article 9, Chapter 6, Development Agreements, of the Tustin City Code (TCC). C.That TCC Section 9611 requires the applicant and the City to enter into a DA for the voluntary provision of community public benefits, by including two (2) affordable housing units for very-low income households, payment of voluntary workforce housing incentive program in-lieu fee, and a 1,392 square foot public amenity space. D.That the proposed voluntary provision of community public benefits, by including two (2) affordable housing units for very-low income households, payment of affordable housing in-lieu fee, and a 1,392 public amenity space is in the best interest of the public in that it increases the diversity in available housing for existing and new residents in the City of Tustin. E.That Section 65864 et seq. of the Government Code and Sections 9600 to 9619 of the TCC authorize the Tustin City Council to enter into a Development Agreement. In compliance with TCC Section 9611, the Tustin Planning Commission must make a recommendation on the proposed Development Agreement (DA) 2023-0002 to the City Council. F.That a public hearing was duly called, noticed, and held on said application on October 10, 2023, by the Planning Commission. The Planning Commission adopted Resolution No. 4479 recommending that the City Council approve the DA. G.That a public hearing was duly called, noticed, and held on said application on November 7, 2023, by the City Council. H.That the DA is supported by the following findings: 1.That the DA is consistent with the General Plan and Zoning and the project will be consistent with the objectives, policies, general land uses and programs specified in the General Plan in that residential uses are permitted uses within the Downtown Commercial Core Specific Plan (DCCSP) land use designation and the Downtown Commercial Core Specific Plan (DCCSP, SP-12) zoning district. 2.That the project is compatible with the uses authorized in the district in which the property is located. 3.That the project is in conformity with the public necessity, public convenience, general welfare and good land use practices in that the DocuSign Envelope ID: D6D49AF1-372F-4200-8994-5F57C33E90EBDocuSign Envelope ID: 557DD670-3DA3-4124-8D82-13570A97468F ______________________ Ordinance No. 1538 Page 3 of 5 project would provide forty (40) market-rate for sale units and two (2) affordable housing units for very-low income households for new and existing Tustin residents thereby providing additional options of housing types to the City’s house stock. 4.The project will not be detrimental to the health, safety and general welfare. The project will comply with the DCCSP, TCC, mitigation measures and conditions of approval and other regulations to ensure that the project will not be detrimental to the community. 5.The project will not adversely affect the orderly development of property in that the proposed project is orderly, well designed and equipped with the necessary infrastructure and amenities to support existing and future residents and businesses in the City. 6.That the approval of the DA will provide for two (2) Very Low Income units and payment of affordable housing in-lieu fee. 7.A Fiscal Impact Statement was prepared and submitted along with the DA which verifies that the project would have a positive fiscal impact on the City over and above that of the currently vacant site. I.That the provisions of DA 2023-0002 are consistent with DCCSP and the policies of the General Plan, as evidenced by the following findings: 1.That the project is adjacent to and surrounded by other commercial promoting pedestrian-oriented development and walkability community while maintaining a commercial emphasis of the project area. 2.That a mix of live/work and residential uses are more beneficial to adjacent uses consistent with the overall vision, goals and intent of the DCCSP. J.That the proposed project is consistent with the General Plan Housing Element Goal 1 in that the project would facilitate the provision of an adequate supply of housing to meet the need for a variety of housing types and the diverse socio-economic needs of all community residents and supports State Housing Law as implemented by the Regional Housing Needs Assessment (RHNA). The project provides for forty (40) market-rate for sale units and two (2) affordable units. In furtherance of Goal 1 of the Tustin General Plan Housing Element, the applicant will provide two (2) Very Low Income units on site and pay an in- DocuSign Envelope ID: D6D49AF1-372F-4200-8994-5F57C33E90EBDocuSign Envelope ID: 557DD670-3DA3-4124-8D82-13570A97468F ______________________ Ordinance No. 1538 Page 4 of 5 lieu affordable housing fee which will be used for development of affordable housing in another location within the City. K.That on June 19, 2018, the Tustin City Council adopted Resolution No. 18- 24 adopting and certifying the Final Environmental Impact Report (EIR) and Mitigation Monitoring and Report Program (MMRP) for the Downtown Commercial Core Specific Plan (DCCSP). L.That the project meets the criteria for statutory exemption from CEQA pursuant to State CEQA Guidelines Section 15182(c). The Section 15182(c) statutory exemption allows residential projects implementing a Specific Plan if a public agency has adopted an Environmental Impact Report (EIR) on a specific plan after January 1, 1980, and no subsequent EIR has been completed. The Downtown Core Commercial Specific Plan EIR was certified in 2018 and none of the conditions described in CEQA Section 15162 calling for the preparation of a subsequent EIR/Notice of Determination have occurred. Therefore, the Planning Commission recommends that the City Council find the project exempt from CEQA pursuant to CEQA Guidelines Section 15182(c). SECTION 2. The City Council hereby approves DA 2023-0002 attached hereto as Exhibit A and subject to final approval of the City Attorney. SECTION 3: The City Manager is hereby authorized to take such actions, and execute such documents and instruments as deemed necessary or desirable to implement the terms of the DA and other documents as necessary. SECTION 4. Severability. 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 Tustin 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. PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin 21st day of November, 2023. DocuSign Envelope ID: D6D49AF1-372F-4200-8994-5F57C33E90EBDocuSign Envelope ID: 557DD670-3DA3-4124-8D82-13570A97468F _________________________________ AUSTIN LUMBARD, Mayor ____________________ _____ ERICA N. YASUDA, City Clerk APPROVED AS TO FORM: ____________________ ____ DAVID E. KENDIG, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS. CITY OF TUSTIN ) I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is 5; that the above and foregoing Ordinance No. 1538 was duly and regularly introduced at a regular meeting of the Tustin City Council, held on the 7th day of November, 2023 and was given its second reading, passed, and adopted at a regular meeting of the City Council held on the 21st day of November, 2023 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: COUNCILMEMBER RECUSED: ERICA N. YASUDA, City Clerk Exhibit A – Development Agreement 2023-0002 ______________________ Ordinance No. 1538 Page 5 of 5 DocuSign Envelope ID: D6D49AF1-372F-4200-8994-5F57C33E90EBDocuSign Envelope ID: 557DD670-3DA3-4124-8D82-13570A97468F