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HomeMy WebLinkAbout17 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT 2022-0002-THE JESSUP AT 17802-17842 IRVINE BLVDDocusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 MEETING DATE TO: FROM: SUBJECT: SUMMARY: Agenda Item 17_ AGENDA REPORT Reviewed: ^�a City Manager Q5 Finance Director 9 SEPTEMBER 17, 2024 ALDO E. SCHINDLER, CITY MANAGER JUSTINA L. WILLKOM, COMMUNITY DEVELOPMENT DIRECTOR FIRST AMENDMENT TO DEVELOPMENT AGREEMENT 2022-0002 — THE JESSUP AT 17802 — 17842 IRVINE BOULEVARD The project is a request for the first amendment to Development Agreement 2022-0002, an agreement between the City of Tustin and Tustin 40 Development LLC. for "The Jessup" residential project. The proposed amendment is a request to eliminate the owner's requirement to pay for the Voluntary Workforce Housing Incentive Program In -Lieu Fee in conjunction with the project. On July 9, 2024, the City of Tustin Planning Commission held a public hearing on the proposed request and adopted Resolution No. 4492, recommending that the City Council adopt Ordinance No. 1544 approving the first amendment to Development Agreement 2022-0002. APPLICANT: EMILIE SIMARD OF INTRACORP TUSTIN 40 DEVELOPMENT LLC 895 DOVE STREET, SUITE 400 NEWPORT BEACH, CA 92660 RECOMMENDATION: PROPERTY OWNER: TUSTIN 40 DEVELOPMENT LLC 411 1STAVENUE SOUTH, SUITE 650 SEATTLE, WA 98104 That the City Council conduct first reading of Ordinance No. 1544, by title only, for the first amendment to Development Agreement 2022-0002 and set second reading to the next available Council meeting. ENVIRONMENTAL REVIEW: The request was evaluated and determined to be exempt pursuant to the California Environmental Quality Act Section 15061(b)(3) of the State California Environmental Quality Act 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 Development Agreement will have a significant effect on the environment. Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 City Council Agenda Report The Jessup First Amendment to DA 2022-0002 September 17, 2024 Page 2 FISCAL IMPACT: The estimated fiscal impact of waiving the in -lieu fee for the Voluntary Workforce Housing Incentive Program is $289,560. CORRELATION TO THE STRATEGIC PLAN: The proposed project furthers the objectives of Strategic Plan Goal A — Economic and Neighborhood Development #15: Create affordable and workforce housing options because eliminating the owner's requirement to pay for the In -Lieu Fee reduces financial barriers that would otherwise limit housing options for lower income households which was the premise of City Council Resolution No. 24-14 as discussed below. APPROVAL AUTHORITY: Pursuant to Tustin City Code Section 9611, approval of a Development Agreement and any amendments thereto are subject to a public hearing before the Planning Commission. Pursuant to Tustin City Code Sections 9612-9614, following a recommendation by the Planning Commission, the City Council may accept, modify or disapprove the Development Agreement. Pursuant to Tustin City Code Section 9614, the Development Agreement shall be approved by the adoption of an ordinance. BACKGROUND AND DISCUSSION: On February 7, 2023, the City Council adopted Ordinance No. 1532, approving Development Agreement (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 Tustin City Code (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 an 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 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 City Council Agenda Report The Jessup First Amendment to DA 2022-0002 September 17, 2024 Page 3 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 (Exhibit A to Attachment 3 (Ordinance No. 1544)) 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) affordable units to very -low income households on -site would remain the same. On July 9, 2024, the Planning Commission held a public hearing on the proposed request and adopted Resolution No. 4492 (Attachment 2), recommending that the City Council adopt Ordinance No. 1544 approving the first amendment to DA 2022-0002 (Attachment 3). PUBLIC HEARING NOTICE: The public hearing notice for the August 20, 2024, City Council hearing was published in the Tustin News on August 8, 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 August 8, 2024, more than 10 days in advance of the scheduled public hearing date. Since the City Council meeting of August 20, 2024 focused on discussion related to local redevelopment authority, the item was continued to the City Council meeting on September 17, 2024. CONCLUSION: Based on the findings provided, staff recommends the City Council conduct the first reading of Ordinance 1544, by title only, for the first amendment to DA 2022-0002, to eliminate owner's requirement to pay for the In -Lieu Fee in the amount of $289,560 in conjunction with "The Jessup" residential project. Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 City Council Agenda Report The Jessup First Amendment to DA 2022-0002 September 17, 2024 Page 4 Prepared by: i Leila Carver, Senior Planner Consultant Approved by: f Jus 'na L. Willkom Community Development Director Attachments: 1. Radius and Project Location Map 2. Planning Commission Meeting Minutes of July 9, 2024 and Resolution No. 4492 3. Ordinance 1544 (First Amendment to DA 2022-0002) Exhibit A: First Amendment to DA 2022-0002 i -Owl r.,Rv e - d 78 NIS,r' or 16 i ". . A- I on" '30 0 IL v A 00 .1 PW Q 300 Feet Xw Source ESRL City of Tustin 77 .: Docusign Envelope ID: A378D9AB-B8A3-461 D-8C58-E562DC6AAEA6` TAC H M E NT 2 MINUTES COUNCIL CHAMBER & VIDEO CONFERENCE TUSTIN PLANNING COMMISSION MEETING JULY 9, 2024 7:00 p.m. CALLED TO ORDER. Given. PLEDGE OF ALLEGIANCE: Commissioner Kozak Present ROLL CALL: Commissioners Kozak, Mason, Mello, Chair Pro Tern Douthit & Chair Higuchi Absent Commissioner Mello Schindler City Manager, Aldo Schindler introduced himself to the Commission. The Commission welcomed City Manager, Aldo Schindler. PUBLIC INPUT: Hurtado Hurtado confirmed there was no public input. CONSENT CALENDAR: 1. APPROVAL OF MEETING MINUTES—JUNE 25, 2024 RECOMMENDATION: That the Planning Commission approve the Minutes of the June 25, 2024 Planning Commission meeting, as provided. Hurtado Hurtado confirmed there was no public input received on the Consent Calendar. Motion. It was moved ,by Mason, seconded ,by Kozak, to approve the Consent Calendar, as provided. Motion carried 4-0-.1. PUBLIC HEARING: Adopted Reso. 2. FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (DA) 2022-0002 Na 4492. APPLICANT: EMILIE SIMARD OF INTRACORP TUSTIN 40 DEVELOPMENT LLC 895 DOVE STREET, SUITE 400 Minutes — Planning Commission Meeting — July 9, 2024 — Page 1 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 NEWPORT BEACH, CA 92660 PROPERTY OWNER: TUSTIN 40 DEVELOPMENT LLC 411 1STAVENUE SOUTH, SUITE 650 SEATTLE, WA 98104 LOCATION: 17802 AND 17842 IRVINE BOULEVARD 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. RECOMMENDATION: Thatthe Planning Commission adopt Resolution 4492, recommending that the City Councit 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. Carver Carver provided a presentation to the Commission. She mentioned one email was received by staff requesting the notice be described in simplified terms, due to the complex nature of the request. Carver provided an email response to the individual, who lives in the Palm Wood Condominiums next door to the project site. Douthit Douthit asked Carver to read the simplified response to the individual. Minutes — Planning Commission Meeting — July 9, 2024 — Page 2 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Carver In response to Douthit's question, Carver stated a simplified response was emailed to the individual (she did not have the email correspondence at the dais) and the individual did not respond to Carver's response email. Mason Mason also asked Carver to simplify the project requestto the Commission as well as what the impact to the City would be once the in -lieu fees are eliminated. Willkom Willkom explained, in great detail, to the Commission what is being asked of the applicant. The proposed project is located outside of the DCCSP. At the time the project was submitted, the City and the developer agreed with the terms of the development agreement which included the provision of affordable housing and payment of in -Lieu fees. The requirements mirror what was required in the DCCSP and the total amount of affordable housing and provisions of the in -lieu fee mirror the requirement under the Voluntary Workforce Housing Ordinance. Subsequent to the approval, the City Council adopted the policy which would suspend the provision of the housing in -lieu fee temporarily for 36 months. The objective of that policy is to stir development and to incentivize development within the Specific Plan areas. Following that policy adoption, Intracorp requested that the City extend the elimination of the payment in -lieu fee fortheir project, which is why the item has been brought to the Commission. Staff will need to amend the approved Development Agreement to remove the provision. Past payment of in - Lieu fees has been ear -marked for Families Forward project (six to eight affordable housing units) which is forthcoming. Higuchi Higuchi commented on the City Councit's recent approval of in -lieu fees being eliminated for the KB Home. He asked Willkom for the reason why the in -lieu fees were taken back to the City Council for elimination. Willkom In response to Higuchi's question, Willkom stated the reason KB Home projectwas brought back to the City Council was due to the KB Home project being approved prior to the adoption of the new policy. Hurtado Hurtado confirmed no public input was received on this item. Masan Mason made favorable comments regarding the item. Douthit Douthit made favorable comments towards the applicant. Overall, his final comments included, in general: he did not feel the City needs to impose unnecessary fines or fees regardless if they are in -lieu or mirror something close to the area; the City needs to build more housing; Higuchl Higuchi's final comments generally included: he was supportive of staff's recommendation; not in favor of housing in -Lieu fees; concerned with the impact of Minutes — Planning Commission Meeting — July 9, 2024 — page 3 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 the Voluntary Indusionary Housing ordinance; commended Intracorp on this project; he asked Emilie on the number of units remaining to be sold. Applicant In response to Higuchi's last question, Emilie Simard stated there are 10 for -sale units remaining in the community. Intracorp has released 3.5 production phases of the released units with a few left to sell. Motion: It was moved by Kozak, seconded .by Douthit, to adopt Resolution No, 4492, as provided. Motion carried 4-0-1. AdoptedReso. 3. CODE AMENDMENT 2024-0004 (ORDINANCE NO. 1543) - No. 4491, as (ORDINANCE UPDATES RELATIVE TO THE IMPLEMENTATION OF THE amended. 6T" CYCLE 2021-2029 HOUSING ELEMENT) Code Amendment (CA) 2024-0004 is a City -initiated request to amend various sections of Article 9 (Land Use) of the Tustin City Code (TCC) to implement the following programs of the City's adopted Housing Element of the General Plan: • Program 1.5(a)- This amendment will streamline the requirements for triplexes in the R-2 and R-3 zones and for residential uses Citywide in all zones by removing the Conditional Use Permit requirements. • Program 2.1(a) - This amendment will add definitions for transitional and supportive housing and consider transitional and supportive housing to be a residential use and explicitly permits them subject only to those zoning regulations that apply to other residential dwellings of the same type in the same zone as required by AB 2162. ENVIRONMENTAL: The proposed CA 2024-0004 is not subject to the California Environmental Quality Act (CEQA) pursuant to California Code of Regulations, Title 14, Chapter 3, Sections 15060 (c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) because it has no potential for resulting in physical change to the environment, directly or indirectly. RECOMMENDATION: Minutes -- Planning Commission Meeting -- July 9, 2024 — Page 4 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 That the Planning Commission adopt Resolution No. 4491, recommending that the City Council adopt Ordinance No. 1543, amending various sections of Article 9 (Land Use) of the TCC to implement the certain programs of the City's adopted Housing Element of the General Plan. Maldonado Presentation given. Mason Mason asked what the impacts of this item would be to the City if the recommended action were to be approved. Willkom In response to Mason's previous question, Willkom stated TCC residential zoning originally came from the County Code — over the years certain sections have been updated and certain sections remain the same. In the R2 and R3 Districts, triplexes require approval of a CUP. A CUP generally was intended to regulate operational characteristics of uses (i.e. CUP for restaurants, the City may regulate the hours of operation or how live entertainment would be provided). Triplexes are permanent land use and the City cannot revoke approved CUP or remove triplexes once they are built. In addition, the recommended action is consistent with State law where HCD is asking the City to allow residential development meeting certain criteria by right, subject to objective design standards. Hurtado Hurtado confirmed no public comments received on this item. The Commission, collectively, was in support of the item presented. Motion: It was moved by Mason, seconded by Douthit, to adopt Resolution No. 4491, as amended. Motion carried 4-0-1. Vwlwil0 :1I` � Received & 4. DEVELOPMENT STANDARDS IN THE DOWNTOWN COMMERCIAL filed. CORE & RED HILL AVENUE SPECIFIC PLANS FOR MULTI -FAMILY RESIDENTIAL PARKING AND PRIVATE STORAGE On December 5, 2023, the City Council was provided an assessment of the Downtown Commercial Core Specific Plan (DCCSP) and the Red Hill Avenue Specific Plan (RHASP). The assessment was prepared by Economic Planning Systems (EPS), Inc., and identified potential plan revisions that would remove barriers to development and would better align the plans with the existing real estate market. The Council received and filed the report, and directed staff to bring the recommended policy actions back to the City Council for individual consideration and action. Minutes — Planning Commission Meeting — July 9, 2024 — Page 5 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Two considerations presented by EPS included (1) a reduction in the number of parking spaces required for multi -family residential development, and (2) changes to the amount of private storage required for dweLLing units. This report provides an assessment of these two potential. actions. Staff witl receive feedback and incorporate the Commissions feedback in Specific Plan Amendments (SPA), which wiLL be brought back to the Commission and Council for final action. RECOMMENDATION: That the Planning Commission: 1. Receive and file this staff report; 2. Discuss potential. revisions to multi -family residential parking requirements in the DCCSP and RHASP; 3. Discuss potential. revisions to multi -family residential. private storage requirements in the DCCSP and RHASP; and 4. Provide feedback on changes to DCCSP and RHASP development standards. Eastman Eastman provided a presentation to the Commission. A& Gabriel Mr. Groen joined the meeting via Zoom. He voiced his support on eliminating Groen parking mandates and to consider removing parking requirements entirely. The Commission deliberated and discussed, in great detail., staff's recommendations. Commission The Commissioners each asked questions regarding the application of parking and private storage standards and expressed opinions and concerns. Douthit Douthit agreed that tandem parking should be aLLowed without discretion. He would Like to eliminate public parking requirements compteteLy. Douthit expressed that even if there is no minimum parking requirement, developers wiLL provide parking they feel is needed for their project. He thinks that the City should eliminate the requirement for private storage space, and instead allow developers the option to provide private storage space as part of their private open space requirement. Minutes — Planning Commission Meeting — July 9, 2024 — Page 6 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Kozak Kozak expressed a concern with the changes in the minimum private storage space requirement. He was concerned that residents would not have places to store large items if developers are not providing storage area. But he agreed that the City should not dictate private open space. Kozak stated that he thinks the parking requirement recommendation in the staff report is reasonable and he supports it. He also supported allowing tandem parking. Mason Mason stated that the City has a parking situation. She said that while she also does not want the City to mandate parking, she Lives two blocks away from a street that gets parked with over 100 cars a night. She wants to attract developers, but the City needs to deal with the reality that we lack public transit to support the elimination of a parking requirement. Mason supported staff's recommendation to scale parking requirements to the size of the unit, similar to what other cities provide. She expressed concern with larger multi -bedroom multi -unit projects because the City currently has parking problems. Mason supported tandem parking. She does not believe that the City should require developers to build private storage areas. Higuchi Higuchi identified four types of housing that is likely to occur in the two specific plans: big 150+ unit multi -family development; affordable multi -family development; boutique small multi -family developments; and for -sale single- familytownhome development. Higuchi stated that big and affordable projects witL use density bonus Law to reduce their parking requirements, so changing the standard does not impact them. Higuchi said he is supportive of a new standard to support small boutique multi -family development on small parcels, which is often done by smalt entrepreneurial developers. Higuchi wants to encourage for -sale housing because multi -family (apartments) are not currently viable in the current economic market. He supported staff's recommendation regarding parking revisions, including allowing tandem. Higuchi did not support private storage area requirements. The item was received and filed. STAFF CONCERNS: Willkom WiLLkom did not have any concerns. COMMISSION CONCERNS: Mason Mason did not have any concerns. Kozak Kozak commended the Parks and Recreation department for the Concerts in the Park series. Minutes -- Planning Commission Meeting -- July 9, 2024 -- Page 7 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Douthit Douthit requested that Code Enforcement staff address the issues with residents parking on lawns, sidewalks (specifically near Red HiLL Avenue and Bryan Avenue, and Pine Tree and Pepper Tree Parks). Higuchi Higuchi echoed Kozak's favorable comments with regards to the Concerts in the Park. He also commended staff again for Historic Preservation Week. 903p.m. ADJOURNMENT: The next regular meeting of the Planning Commission is scheduled for Tuesday, July 23, 2024. ERIC HIGUC Chairperson 4JUSNA L. WILLKOM Planning Commission Secretary Minutes — Planning Commission Meeting — July 9, 2024 — Page 8 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 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: 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: 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 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 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. Il. 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 9t' day of July 2024. ERIC HIGUCHI Chairperson JUS NA L. WILLKOM Planning Commission Secretary Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Resolution No. 4492 Page 3 APPROVED AS TO FORM: MICHAEL DAUD Assistant City Attorney Exhibit A: Draft Ordinance 1544 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 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: djjAlb),� JU INA L. WILLKOM Planning Commission Secretary Douthit, Higuchi, Kozak, Mason (4) Mello Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 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 Planning Commission. The Planning 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 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. E. That the DA Amendment is supported by the following findings: 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. Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 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. Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Ordinance 1544 Page 3of3 PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin on this _tn 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 _�h 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 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 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 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 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 Tustin 40 Development LLC, a Delaware limited liability company By: Name: Its: Date: CITY City of Tustin, a municipal corporation By: _ Name: Its: Date: `a Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 ATTACHMENT 3 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 17802 AND 17842 IRVINE BOULEVARD. 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 17802 and 17842 Irvine Boulevard. B. That a public hearing was duly called, noticed, and held on said application on July 9, 2024, by the Planning Commission. The Planning Commission adopted Resolution No. 4492 recommending that the City Council approve the first amendment to the DA by adopting Ordinance 1544. C. That a public hearing was duly called, noticed, and held on said application on August 20, 2024, by the City Council. D. That the public hearing was continued to the September 17, 2024, City Council meeting. E. 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. F. That the DA Amendment is supported by the following findings: 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 No. 1544 Page 1 of 3 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 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 No. 1544 Page 2 of 3 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin on this 17' day of September 2024. AUSTIN LUMBARD, Mayor ERICA N. YASUDA, City Clerk APPROVED AS TO FORM: DocuSigned by: �„dam DA 8EF31 P DIG, 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 17t" day of September, 2024; a printed copy was made available to the public prior to the meetings 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: COUNCILMEMBER RECUSED: ERICA N. YASUDA, City Clerk Exhibit A — FIRST AMENDMENT TO DA 2022-0002 Ordinance No. 1544 Page 3 of 3 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 EXHIBIT A - FIRST AMENDMENT TO DA 2022-0002 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Tustin 300 Centennial Way Tustin, CA 92780 Attn: City Clerk SPACE ABOVE THIS LINE RESERVED 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. RFf ITAI C 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 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 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 Tustin 40 Development LLC, a Delaware limited liability company By: _ Name: Its: Date: CITY City of Tustin, a municipal corporation By: _ Name: Its: Date: 2