HomeMy WebLinkAbout02 PC REPORT DA 2022-0002 r
All AGENDA REPORT ITEM # 2
MEETING DATE: JULY 9, 2024
TO: PLANNING COMMISSION
FROM: COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (DA) 2022-0002
APPLICANT: EMILIE SIMARD OF INTRACORP
TUSTIN 40 DEVELOPMENT LLC
895 DOVE STREET, SUITE 400
NEWPORT BEACH, CA 92660
PROPERTY TUSTIN 40 DEVELOPMENT LLC
OWNER: 411 1ST AVENUE SOUTH, SUITE 650
SEATTLE, WA 98104
LOCATION: 17802 AND 17842 IRVINE BOULEVARD
GENERAL PLAN: HIGH DENSITY RESIDENTIAL (HDR)
ZONING: MULTI-FAMILY RESIDENTIAL (R3)
REQUEST: A REQUEST FOR THE FIRST AMENDMENT TO
DEVELOPMENT AGREEMENT (DA) 2022-0002, AN
AGREEMENT BETWEEN THE CITY OF TUSTIN AND TUSTIN 40
DEVELOPMENT LLC, FOR THE "THE JESSUP" RESIDENTIAL
PROJECT. THE PROPOSED AMENDMENT IS A REQUEST TO
ELIMINATE OWNER'S REQUIREMENT TO PAY FOR THE
VOLUNTARY WORKFORCE HOUSING INCENTIVE PROGRAM
IN-LIEU FEE IN CONJUNCTION WITH THE PROJECT.
ENVIRONMENTAL: THE COMMUNITY DEVELOPMENT DEPARTMENT HAS
EVALUATED THE REQUEST AND DETERMINED IT TO BE
EXEMPT PURSUANT TO THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT ("CEQA") SECTION 15061(B)(3) OF THE STATE
CEQA GUIDELINES AS IT CAN BE SEEN WITH CERTAINTY
THAT THERE IS NO POSSIBILITY OF A SIGNIFICANT EFFECT
ON THE ENVIRONMENT.
Tustin 40 Development LLC
First Amendment to DA 2022-0002
July 9, 2024
Page 2
RECOMMENDATION:
That the Planning Commission adopt Resolution 4492, recommending that the City
Council adopt Ordinance No. 1544 for the first amendment to DA 2022-0002, an
agreement between the City of Tustin and Tustin 40 Development LLC, to eliminate the
requirement to pay for the Voluntary Workforce Housing Incentive Program In-Lieu Fee
in conjunction with the "The Jessup" residential project located at what was previously
17802 and 17842 Irvine Boulevard and which is currently under construction.
APPROVAL AUTHORITY:
Pursuant to Tustin City Code (TCC) Section 9611, approval of a DA and any amendments
thereto are subject to a public hearing before the Planning Commission. Pursuant to TCC
Sections 9612-9614, following a recommendation by the Planning Commission, the DA
must be approved by the City Council by the adoption of an ordinance at a separate
noticed public hearing.
BACKGROUND/DISCUSSION:
On February 7, 2023, the City Council adopted Ordinance No. 1532, approving DA 2022-
0002 for a development of 40 residential condominium units, with two (2) units being
affordable to very-low income households, at 17802 and 17842 Irvine Boulevard. Pursuant
to DA 2022-0002, the owner agreed to provide two (2) affordable units on-site and pay a
voluntary workforce housing incentive program in-lieu fee (the "In-Lieu Fee") as a public
benefit, even though the In-Lieu Fee was not required under the TCC.
On March 5, 2024, the City Council adopted Resolution No. 24-14, temporarily suspending
the affordable housing in-lieu fee for residential projects located in the Downtown
Commercial Core Specific Plan (DCCSP) and Red Hill Avenue Specific Plan (RHASP)
areas with the intent of removing barriers to residential construction and spurring
development. Although the project is not located within either of the specific plan areas, it
is located in close proximity to the DCCSP area. Similarly, the applicant proposed, and was
approved to provide both affordable units and the payment of in-lieu fee, consistent with
housing projects proposed in either the DCCSP and RHASP.
On June 6, 2024, the applicant submitted a request to amend the subject DA, deleting the
provision for the payment of the affordable housing in-lieu fee, consistent with City Council's
action on March 5, 2024. Staff finds the subject amendment would result in an equitable
application of the temporary suspension of the affordable housing in-lieu fee for residential
projects and would secure quality affordable housing in the City.
The proposed amendment to DA 2022-0002 (Attachment B) includes modifications to
eliminate the owner's requirement to pay the affordable housing in-lieu fee, in conjunction
with the project and the remaining provisions of the DA, including the provision of two (2)
units being affordable to very-low income households remain the same.
Tustin 40 Development LLC
First Amendment to DA 2022-0002
July 9, 2024
Page 3
PUBLIC HEARING NOTICE:
The public hearing notice for the July 9, 2024, Planning Commission hearing was published
in the Tustin News on June 27, 2024, and the Community Development Department mailed
a notice of public hearing to each of the property owners, within 300 feet of the project site,
inclusive of the project itself. Public notices were physically posted on the project site on
June 27, 2024, more than 10 days in advance of the scheduled public hearing date.
ENVIRONMENTAL REVIEW:
The Community Development Department evaluated the request and determined it to be
exempt pursuant to the California Environmental Quality Act (CEQA) and determined it to
be exempt pursuant to Section 15061(b)(3) of the State CEQA Guidelines (Cal. Code of
Regs., Title 14, Section 15061(b)(3)), as it can be seen with certainty that there is no
possibility that the approval of the first amendment to the DA will have a significant effect on
the environment.
CONCLUSION:
Based on the findings provided, staff recommends the Planning Commission adopt
Resolution 4492, recommending that the City Council adopt Ordinance 1544 for the first
amendment to DA 2022-0002, to eliminate owner's requirement to pay for the voluntary
workforce housing incentive program in-lieu fee in conjunction with the project.
Tustin 40 Development LLC
First Amendment to DA 2022-0002
July 9, 2024
Page 4
Prepared by:
'"V
Leila Carver, Senior Planner Consultant
Approved by:
RaymondBarra n, Principal Planner
�t
Jay Eastman, AICPI, Assistant Director — Planning
t
Justi L. Willkom, Community Development Director
Attachments:
A. Radius and Project Location Map
B. Resolution No, 4492
Exhibit A, Ordinance 1544 (First Amendment to DA 2022-0002)
ATTACHMENT A
RADIUS MAP AND LOCATION MAP
.I
° COLUMBU 5 TU STIN 5.
MIDDLE SCHOOL
CO LU MBU S ,
�rWyy TU STlh PARK -
�rL
a
PALMWOO6 -
GARDENSHOA
PROSPECT ••
PARK HOA
a
N 300 4
0 Feet
CITY HALL+Source:ESRI,City of Tustin }�
ATTACHMENT B
RESOLUTION NO. 4492
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF TUSTIN RECOMMENDING THAT THE CITY
COUNCIL ADOPT ORDINANCE 1544, APPROVING FIRST
AMENDMENT TO DEVELOPMENT AGREEMENT (DA) 2022-
0002, TO ELIMINATE OWNER'S REQUIREMENT TO PAY
FOR THE VOLUNTARY WORKFORCE HOUSING
INCENTIVE PROGRAM IN-LIEU FEE FOR THE "THE
JESSUP" RESIDENTIAL PROJECT LOCATED AT WHAT
WAS PREVIOUSLY 17802 AND 17842 IRVINE BOULEVARD
AND WHICH IS CURRENTLY UNDER CONSTRUCTION.
The Planning Commission does hereby resolve as follows:
I. The Planning Commission finds and determines as follows:
A. That a proper application has been submitted to the City of Tustin (the City)
Community Development Department by Tustin 40 Development LLC for a
request for the first amendment to DA-2022-0002, an agreement between
the City of Tustin and Tustin 40 Development LLC, to eliminate the
requirement to pay for the Voluntary Workforce Housing Incentive Program
In-Lieu Fee in conjunction with the "The Jessup" residential project located
at what was previously 17802 and 17842 Irvine Boulevard and which is
currently under construction.
B. That a public hearing was duly called, noticed, and held on said application
on July 9, 2024, by the Planning Commission.
C. That the application for a DA is governed by 65864 et seq. of the Government
Code and Sections 9600 to 9619 of the TCC. In accordance with TCC 9611,
the Planning Commission must make a recommendation on the amendment
to the DA to the City Council. The DA attached hereto as Exhibit A can be
supported by the following findings:
1. That the amendment to DA-2022-0002 is consistent with the
objectives, policies, general land uses and programs specified in
the General Plan in that residential uses are permitted uses within
the High Density Residential (HDR) land use designation and the
Multi-Family Residential (R-3) zoning district.
2. That the amendment to DA-2022-0002 is in conformity with the
public necessity, public convenience, general welfare and good
land use practices in that the project would provide two (2)
affordable housing units for very-low income households thereby
Resolution No. 4492
Page 2
providing additional options of housing types to the City's house
stock.
3. The amendment to DA-2022-0002 will not be detrimental to the
health, safety and general welfare.
4. The amendment to DA-2022-0002 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.
5. A Fiscal Impact Analysis was prepared and submitted along with
the DA which verifies that the project will have a positive fiscal
impact on the City over and above that of the current commercial
and office uses.
D. That the request has been determined to be exempt pursuant to Section
15061(b)(3) of the State CEQA Guidelines (Cal. Code of Regs., Title 14,
Section 15061(b)(3)), as it can be seen with certainty that there is no
possibility that the approval of the first amendment to the DA will have a
significant effect on the environment.
II. The Planning Commission hereby recommends that the City Council adopt
Ordinance No. 1544 approving the first amendment to DA 2022-0002, to eliminate
owner's requirement to pay for the voluntary workforce housing incentive program in-
lieu fee in conjunction with the project located at 17802 and 17842 Irvine Boulevard,
as identified in Exhibit A attached hereto.
PASSED AND ADOPTED by the Planning Commission of the City of Tustin, at a regular
meeting on the 9th day of July 2024.
ERIC HIGUCHI
Chairperson
JUSTINA L. WILLKOM
Planning Commission Secretary
Resolution No. 4492
Page 3
APPROVED AS TO FORM:
MICHAEL DAUDT
Assistant City Attorney
Exhibit A: Draft Ordinance 1544
Resolution No. 4492
Page 4
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
I, Justina L. Willkom, the undersigned, hereby certify that I am the Planning Commission
Secretary of the City of Tustin, California; that Resolution No. 4492 was duly passed and
adopted at a regular meeting of the Tustin Planning Commission, held on the 9th day of
July, 2024.
PLANNING COMMISSIONER AYES:
PLANNING COMMISSIONER NOES:
PLANNING COMMISSIONER ABSTAINED:
PLANNING COMMISSIONER ABSENT:
JUSTINA L. WILLKOM
Planning Commission Secretary
EXHIBIT A
TO RESOLUTION NO. 4492
ORDINANCE NO. 1544
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, APPROVING FIRST AMENDMENT TO DEVELOPMENT
AGREEMENT (DA) 2022-0002, TO ELIMINATE OWNER'S
REQUIREMENT TO PAY FOR THE VOLUNTARY WORKFORCE
HOUSING INCENTIVE PROGRAM IN-LIEU FEE FOR THE "THE
JESSUP" RESIDENTIAL PROJECT LOCATED AT WHAT WAS
PREVIOUSLY 17802 AND 17842 IRVINE BOULEVARD AND
WHICH IS CURRENTLY UNDER CONSTRUCTION.
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 Tustin 40 Development LLC for a
request for the first amendment to DA-2022-0002, an agreement between
the City of Tustin and Tustin 40 Development LLC, to eliminate the
requirement to pay for the Voluntary Workforce Housing Incentive Program
In-Lieu Fee in conjunction with the "The Jessup" residential project located
at what was previously 17802 and 17842 Irvine Boulevard and which is
currently under construction.
B. That a public hearing was duly called, noticed, and held on said application
on July 9, 2024, by the Planninq Commission. The Planninq Commission
adopted Resolution No. 4492 recommending that the City Council approve
the first amendment to the DA.
C. That a public hearing was duly called, noticed, and held on said application
on , 2024, by the City Council.
D. That the request has been determined to be exempt pursuant to Section
15061 (b)(3) of the State CEQA Guidelines (Cal. Code of Reqs., Title 14,
Section 15061 (b)(3)), as it can be seen with certainty that there is no
possibility that the approval of the first amendment to the DA will have a
significant effect on the environment.
E. That the DA Amendment is supported by the following findings:
1. That the amendment to DA-2022-0002 is consistent with the
objectives, policies, general land uses and programs specified in
the General Plan in that residential uses are permitted uses within
the High Density Residential (HDR) land use designation and the
Multi-Family Residential (R-3) zoning district.
Ordinance 1544
Page 2 of 3
2. That the amendment to DA-2022-0002 is in conformity with the
public necessity, public convenience, general welfare and good
land use practices in that the project would provide two (2)
affordable housing units for very-low income households thereby
providing additional options of housing types to the City's house
stock.
3. The amendment to DA-2022-0002 will not be detrimental to the
health, safety and general welfare.
4. The amendment to DA-2022-0002 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.
5. A Fiscal Impact Analysis was prepared and submitted along with
the DA which verifies that the project will have a positive fiscal
impact on the City over and above that of the current commercial
and office uses.
SECTION 2. The City Council hereby approves the first amendment to DA 2022-0002
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.
Ordinance 1544
Page 3 of 3
PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin
on this t" day of , 2024.
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. 1544 was duly and
regularly introduced at a regular meeting of the Tustin City Council, held on the th day
of , 2024 and was given its second reading, passed, and adopted at a regular
meeting of the City Council held on the day of , 2024 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
ERICA N. YASUDA
City Clerk
Published:
Exhibit A - FIRST AMENDMENT TO DA 2022-0002
EXHIBIT A TO ORDINANCE NO. 1544
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of Tustin
300 Centennial Way
Tustin, CA 92780
Attn: City Clerk
SPACE ABOVE THIS LINER ESE RVED FOR RECORDER'S USE
This Agreement is recorded at the request and for
the benefit of the City of Tustin and is exempt from
the payment of a recording fee pursuant to
Government Code§§6103 and 27383.
FIRST AMENDMENT TO DEVELOPMENT AGREEMENT 2022-0002
BETWEEN THE CITY OF TUSTIN AND TUSTIN 40 DEVELOPMENT LLC
(17802 and 17842 Irvine Boulevard, Tustin, California)
This First Amendment (the "Amendment") to Development Agreement 2022-0002 (the "DA") is
entered into as of , 2024, by and between the City of Tustin, a California municipal
corporation (the "City"), and Tustin 40 Development LLC, a Delaware limited liability company
("Owner"). Owner is the successor-in-interest to Intracorp Socal-1, LLC, the original "Owner"
signatory to the DA.
RECITALS
A. This Amendment pertains to "The Jessup" residential project located at what previously was
17802 and 17842 Irvine Boulevard in the City (the "Project") and which is currently under
construction by Owner.
B. The DA for the Project was approved by the City Council on January 17, 2023, with the second
reading of the ordinance authorizing the DA approved on February 7, 2023. The DA was
recorded on May 25, 2023 as document No. 2023000123947 in Official Records, Orange
County, California.
C. Under Section 3b of the DA, Owner agreed to pay a voluntary workforce housing incentive
program in-lieu fee (the "In-Lieu Fee") as a public benefit and in consideration of the Owner's
vested right to develop the Project, even though the In-Lieu Fee was not required under the
Tustin City Code.
D. The City and Owner would like to modify the DA with respect to the In-Lieu Fee.
1
AGREEMENT
City and Owner mutually agree to amend the DA to eliminate Owner's requirement under Section
3b (and any related provisions) of the DA to pay the In-Lieu Fee. In all other respects, the DA
remains the same.
This Amendment has been signed by the Parties on the dates indicated below.
OWNER CITY
Tustin 40 Development LLC, a Delaware City of Tustin, a municipal corporation
limited liability company
By: By:
Name: Name:
Its: Its:
Date: Date:
2