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Home My WebLink About07 SECOND READING AND ADOPTION OF ORDINANCE NO. 1560-DEVELOPMENT AGREEMENT 2024-0007Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 AGENDA REPORT s� MEETING DATE TO FROM FEBRUARY 18, 2025 ALDO E. SCHINDLER, CITY MANAGER ERICA N. YASUDA, CITY CLERK Agenda Item 7 Reviewed: Initial City Manager QS Finance Director N/A SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1560 - DEVELOPMENT AGREEMENT 2024-0007, AMENDING DEVELOPMENT AGREEMENT 2020-0001 REGARDING TERMS AND PUBLIC BENEFIT SUMMARY: Adoption of Ordinance No. 1560 approves Development Agreement (DA) 2024-0007 amending the term and sponsorship contributions previously established in DA 2020-0001. The proposed amendment will extend the term of the agreement and establish a methodology for calculating the annual sponsorship contribution. RECOMMENDATION: That the City Council have second reading by title only and adoption of Ordinance No. 1560. FISCAL IMPACT: The proposed amendment would have a positive fiscal impact, as it includes an escalated financial contribution from the Tustin Auto Center Merchants Association based on the average annual growth rate of car sales tax, providing proportional increases to the City's public benefit funding for Parks and Recreation events and programming. CORRELATION TO THE STRATEGIC PLAN: This amendment supports Strategic Plan Goal A — Economic and Neighborhood Development, by enabling business growth and fostering economic vitality through strategic public -private partnerships. Additionally, it aligns with Goal C — Financial Strength, by ensuring increased fiscal contributions proportional to economic growth, and Goal D — Strong Community and Regional Relationships, by maintaining collaborative partnerships with local businesses. Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 City Council Agenda Report Second Reading and Adoption of Ordinance No. 1560 February 18, 2025 Page 2 BACKGROUND AND DISCUSSION: On February 4, 2025, the City Council had first reading by title only of Ordinance No. 1560. ORDINANCE NO. 1560 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT 2024-0007 AMENDING THE TERM AND SPONSORSHIP CONTRIBUTION PREVIOUSLY ESTABLISHED BY DEVELOPMENT AGREEMENT 2020-0001 BETWEEN THE CITY OF TUSTIN AND TUSTIN AUTO CENTER MERCHANTS ASSOCIATION FOR A FREEWAY ADJACENT DIGITAL DISPLAY BILLBOARD AT THE TUSTIN AUTO CENTER Erica N. yasuda Erica N. Yasuda City Clerk Attachment: 1. Ordinance No. 1560 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 ORDINANCE NO. 1560 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT 2024-0007 AMENDING THE TERM AND SPONSORSHIP CONTRIBUTION PREVIOUSLY ESTABLISHED BY DEVELOPMENT AGREEMENT 2020-0001 BETWEEN THE CITY OF TUSTIN AND TUSTIN AUTO CENTER MERCHANTS ASSOCIATION FOR A FREEWAY ADJACENT DIGITAL DISPLAY BILLBOARD AT THE TUSTIN AUTO CENTER 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 on June 16, 2020, the City Council adopted Ordinance No. 1507 approving Development Agreement (DA) 2020-001, which established terms and conditions addressing public benefits and annual performance review in conjunction with the operation of a freeway adjacent digital display billboard at the Tustin Auto Center. B. That the DA 2020-0001 term expires on December 31, 2024. C. That DA 2020-0001 provided public benefits in the form of a $25,000 annual contribution towards four (4) Parks & Recreation events and it was understood the contribution would be negotiated annually. D. That DA 2020-0001 did not establish a methodology for the annual negotiation of the sponsorship contribution. E. That a public hearing was duly called, noticed, and held on December 10, 2024, by the Planning Commission. The Planning Commission adopted Resolution No. 4511 recommending that the City Council adopt Ordinance No.1560. F. That a public hearing was duly called, noticed, and held on said application on February 4, 2025, by the City Council. G. That this project has been determined to be Categorically Exempt pursuant to Section 15301 (Class 1) of the California Environmental Quality Act in that the subject project involves no physical modifications to an existing structure and results in negligible expansion of an existing use. Ordinance No. 1560 DA 2024-0007 Page 1 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 H. That the DA can be supported by the following findings: The project is consistent with the objectives, policies, general land uses and programs specified in the General Plan and the Auto Center Planned Community regulations in that the proposed freeway adjacent digital display billboard use is a conditionally permitted use that supports the Tustin Auto Center and City programs. 2. The project is compatible with the uses authorized in the district in which the real property is located in that the site is approved for a freeway digital display billboard and the proposed project is a minor expansion of the allowed use. 3. The project is in conformity with the public necessity, public convenience, general welfare, and good land use practices in that the agreement incorporates public benefits in the form of advertisements for city events and financial contributions to City programs. 4. The project will not be detrimental to the health, safety, and general welfare in that the freeway adjacent digital display billboard structure is existing. That, as conditioned, the billboard structure and use will not be detrimental to health, safety, and general welfare. 5. The project will not adversely affect the orderly development of property in that the existing and surrounding properties are already improved with landscaping, signage and multiple automobile dealerships. 6. The project will have a positive fiscal impact on the City in that the provisions of the proposed DA and conditions of approval will ensure that the project will have a positive fiscal impact on the City. SECTION 2. The City Council hereby approves DA 2024-0007 attached hereto as Exhibit A and subject to final approval of the City Attorney. SECTION 3. 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. 1560 DA-2024-0007 Page 2 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin on this February 4t", 2025. AUSTIN LUMBARD Mayor ERICA N. YASUDA City Clerk APPROVED AS TO FORM: DocuSigned by: D�,W&&X&NDIG City Attorney Ordinance No. 1560 DA 2024-0007 Page 3 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF TUSTIN ) ORDINANCE NO. 1560 I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is 5; that the above and foregoing Ordinance No. 1560 was duly and regularly introduced at a regular meeting of the Tustin City Council, held on February 4, 2025, and was given its second reading, passed, and adopted at a regular meeting of the City Council held on , 2025, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: COUNCILMEMBER RECUSED: ERICA N. YASUDA City Clerk Ordinance No. 1560 DA-2024-0007 Page 4