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Home My WebLink About09 SECOND READING AND ADOPTION OF ORDINANCE NO. 1561-APPROVING DEVELOPMENT AGREEMENT 2024-0003 BETDocusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 MEETING DATE TO FROM Agenda Item 9 AGENDA REPORT Reviewed: Initial City Manager Q� Finance Director N/A FEBRUARY 18, 2025 ALDO E. SCHINDLER, CITY MANAGER ERICA N. YASUDA, CITY CLERK SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1561 - APPROVING DEVELOPMENT AGREEMENT 2024-0003 BETWEEN THE CITY OF TUSTIN AND IRVINE COMPANY FOR THE DEVELOPMENT OF A 19.4-ACRE SITE WITHIN TUSTIN LEGACY WITH 1,336 APARTMENT HOMES INCLUDING 334 AFFORDABLE UNITS ��Il►�iIJi1_1:�'1� Adoption of Ordinance No. 1561 approves Development Agreement (DA) 2024-0003 to facilitate the development of a total of 1,336 apartment units, which includes 334 affordable units within Neighborhood D South of the Tustin Legacy Specific Plan and conveyance of a 19.4-acre project site. RECOMMENDATION: That the City Council have second reading by title only and adoption of Ordinance No. 1561. FISCAL IMPACT: The applicant paid the required application fees for the proposed project. The fiscal impact resulting from the sale of the property, and other actions related to the sale, will be addressed within the City Council's consideration of the project's Disposition and Development Agreement (DDA). CORRELATION TO THE STRATEGIC PLAN: The proposed amendments further the objectives of Strategic Plan Goal A — Economic and Neighborhood Development, through implementing policy recommendations to encourage residential development and creating affordable housing units and workforce housing options. BACKGROUND AND DISCUSSION: On February 4, 2025, the City Council had first reading by title only of Ordinance No. 1561. Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 City Council Agenda Report Second Reading and Adoption of Ordinance No. 1561 February 18, 2025 Page 2 ORDINANCE NO. 1561 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT 2024-0003 BETWEEN THE CITY OF TUSTIN AND IRVINE COMPANY FOR THE DEVELOPMENT OF A 19.4-ACRE SITE WITHIN TUSTIN LEGACY WITH 1,336 APARTMENT HOMES INCLUDING 334 AFFORDABLE UNITS N . Ya4ad al Erica N. Yasuda City Clerk Attachment: 1. Ordinance No. 1561 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 ORDINANCE NO. 1561 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT 2024-0003 BETWEEN THE CITY OF TUSTIN AND IRVINE COMPANY FOR THE DEVELOPMENT OF A 19.4- ACRE SITE WITHIN TUSTIN LEGACY WITH 1,336 APARTMENT HOMES INCLUDING 334 AFFORDABLE UNITS 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 by Irvine Company for the development of 1,336 apartment homes on Lots 11, 12, and 13 of Tract 18197, currently owned by the City of Tustin within Planning Areas 13 and 14 (Neighborhood D) of the Tustin Legacy Specific Plan. B. That Development Agreement (DA) 2024-0003 provides public benefits in the form of street and right-of-way dedications and easements for public sidewalks and public access, a 0.66-acre publicly accessible park and cafe and pedestrian paseos, 334 affordable housing units and repair/maintenance of landscaping within the project boundary and the publicly accessible common areas, as well as the donation of the Katherine Spur Property to City. C. That Tustin Legacy Specific Plan Section 4.2.7 requires all private development at Tustin Legacy to obtain a Development Agreement (DA) in accordance with Section 65864 et seq. of the Government Code and Sections 9600 to 9619 of the Tustin City Code (TCC). In compliance with TCC Section 9611, the Tustin Planning Commission must make a recommendation on the proposed DA to the City Council. D. That a public hearing was duly called, noticed, and held on said application on January 14, 2024, by the Planning Commission. The Planning Commission adopted Resolution No. 4515 recommending that the City Council approve the DA. E. That a public hearing was duly called, noticed, and held on said application on February 4, 2025, by the City Council. F. On January 16, 2001, the City of Tustin certified the Program Final Environmental Impact Statement/Environmental Impact Report (FEIS/EIR) for the reuse and disposal of MCAS Tustin. On December 6, 2004, the City Ordinance No. 1561 DA 2024-0003 Page 1 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 Council adopted Resolution No. 04-76 approving a Supplement to the FEIS/EIR for the extension of Tustin Ranch Road between Walnut Avenue and the future alignment of Valencia North Loop Road. On April 3, 2006, the City Council adopted Resolution No. 06-43 approving an Addendum to the FEIS/EIR. And, on May 13, 2013, the City Council adopted Resolution No. 13-32 approving a second Addendum to the FEIS/EIR. On July 5, 2017, the City Council adopted Resolution No. 17- 23 approving a second Supplement to the FEIS/EIR. On December 17, 2024, the City Council adopted Resolution No: 24-76 approving a third Supplement to the FEIS/EIR, which evaluated the environmental effects in conjunction with an amendment to the TLSP to implement the programs and policies of the City's Sixth Cycle Housing Element Rezone Project, which increased residential capacity within TLSP Neighborhoods D (North and South) and G (Housing Element Sites 1A, 1 B and 2). The FEIS/EIR, along with its addendums and supplements, is a program EIR under the California Environmental Quality Act (CEQA). The FEIS/EIR, addendums and supplemental considered the potential environmental impacts associated with development on the former Marine Corps Air Station, Tustin. Pursuant to CEQA Guidelines section 15182, Projects Pursuant to a Specific Plan, a residential project that is undertaken pursuant to and in conformity with a specific plan, and the specific plan's EIR, is exempt from CEQA. G. That the DA can be supported by the following findings: 1. The project is consistent with the objectives, policies, general land uses and programs specified in the General Plan and the Tustin Legacy Specific Plan in that residential uses are permitted uses within Planning Areas 13 and 14 of Neighborhood D. 2. The project is compatible with the uses authorized in the district in which the real property is located (Planning Areas 13 and 14) in that similar and compatible uses are envisioned within the close proximity of the project site. 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 street and right- of-way dedications and easements for public sidewalks and public access, a 0.66-acre publicly accessible park and cafe and pedestrian paseos, 334 affordable housing units and repair/maintenance of Ordinance No. 1561 DA-2024-0003 Page 2 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 landscaping within the project boundary and the publicly accessible common areas. 4. The project will not be detrimental to the health, safety, and general welfare in that the project will provide market rate and affordable rate apartments in an area designated for residential use. That, as conditioned, the project construction 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 residential development and parks. 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 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 3. The City Council hereby approves DA 2024-0003 attached hereto as Exhibit A and subject to final approval of the City Attorney. 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. 1561 DA 2024-0003 Page 3 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 day of , 2025. AUSTIN LUMBARD Mayor ERICA N. YASUDA City Clerk APPROVED AS TO FORM: DocuSigned by: F DAWD7E4FKFSN0 I G City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF TUSTIN ) ORDINANCE NO. 1561 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. 1561 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 XXXX, 2025, by the following vote: Ordinance No. 1561 DA-2024-0003 Page 4 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: COUNCILMEMBER RECUSED: ERICA N. YASUDA City Clerk Ordinance No. 1561 DA 2024-0003 Page 5