HomeMy WebLinkAbout12 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT 2022-0002-THE JESSUP AT 17802-17842 IRVINE BOULEVARDDocusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51
MEETING DATE
TO:
FROM:
SUBJECT:
SUMMARY:
Agenda Item
12
AGENDA REPORT Reviewed.
Initial
City Manager
Finance Director
N/A
APRIL 1, 2025
ALDO E. SCHINDLER, CITY MANAGER
JUSTINA L. WILLKOM, COMMUNITY AND ECONOMIC DEVELOPMENT
DIRECTOR
FIRST AMENDMENT TO DEVELOPMENT AGREEMENT 2022-0002
— THE JESSUP AT 17802 — 17842 IRVINE BOULEVARD
A request for the first amendment to Development Agreement 2022-0002, an agreement
between the City of Tustin and Tustin 40 Development LLC (Property Owner) for "The
Jessup" residential project. The proposed amendment is a request to eliminate the
Property Owner's requirement to pay the Voluntary Workforce Housing Incentive Program
In -Lieu Fee ("In -Lieu Fee").
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. On September 17, 2024, the City Council held a public hearing to consider the
Property Owner's requested amendment to Development Agreement 2022-0002. The City
Council's motion failed due to a 2-2-1 vote (Attachment 3). The Property Owner is now
requesting that the City Council reconsider the matter and adopt Ordinance 1564,
approving first amendment to Development Agreement 2022-0002 (Attachment 4).
RECOMMENDATION:
That the City Council conduct first reading of Ordinance No. 1564, 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.
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City Council Agenda Report
The Jessup
First Amendment to DA 2022-0002
April 1, 2025
Page 2
FISCAL IMPACT:
The removal of the In -Lieu Fee will reduce anticipated contributions to the City's Housing
Fund by approximately $289,560; however, the reduction is consistent with the Council's
action to temporarily waive the In -Lieu fee where it applies elsewhere, pursuant to the
Municipal Code, which includes properties within the Downtown Commercial Core Specific
Plan and Red Hill Avenue Specific Plan.
CORRELATION TO THE STRATEGIC PLAN:
The proposed project furthers the objectives of Strategic Plan Goal A — Economic and
Neighborhood Development, which is intended to "enable business opportunities and job
development and enhance the vibrancy and quality of life in all neighborhoods and areas
of the community'. The removal of the applicant's obligation to pay the In -Lieu Fee achieves
Goal A because it establishes parity with the Council's March 5, 2024 action to temporarily
waive the In -Lieu Fee for other housing development in the City that are subject to the
Voluntary Workforce Housing Incentive Program (City Council Resolution No. 24-14).
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 the 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 ("In -Lieu Fee") as a public benefit, even though the affordable housing
units and In -Lieu Fee was not required under the Tustin City Code (TCC). The applicant
had agreed to the affordable housing requirements as part of their request to rezone their
property for residential uses, as these same requirements were applicable to residential
development in the nearby Downtown Commercial Core Specific Plan (DCCSP).
On March 5, 2024, the City Council adopted Resolution No. 24-14, suspending for 36
months the affordable housing in -lieu fee for future residential projects that would otherwise
be required to pay the fee, pursuant to the Voluntary Workforce Housing Incentive Program.
Projects subject to the Voluntary Workforce Housing Incentive Program include residential
development within the DCCSP and Red Hill Avenue Specific Plan (RHASP) areas. The
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City Council Agenda Report
The Jessup
First Amendment to DA 2022-0002
April 1, 2025
Page 3
Council suspended the In -Lieu Fee in order to remove barriers to residential development,
thereby encouraging investment in the City.
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. 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).
A public hearing was scheduled for the August 20, 2024 City Council meeting. The August
20, 2024 public hearing was continued to September 17, 2024, where the City Council's
motion to adopt Ordinance No. 1544 failed due to a 2-2-1 vote (Council Member Clark and
Council Member Gomez opposed, and Mayor Pro Tern Gallagher recused).
On February 13, 2025, the Applicant submitted a request asking that the first amendment
to DA 2022-0002 be reconsidered by the City Council. 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. Providing equitable application of policies
establishes positive relationships with property owners and businesses, which is important
in attracting quality development throughout the City.
The proposed amendment to DA 2022-0002 (Exhibit A to Attachment 4, Ordinance No.
1564) eliminates the owner's requirement to pay the affordable housing in -lieu fee. The
proposed amendment does not alter any of the remaining provisions of the DA, including
the applicant's obligation to provide two (2) affordable units to very -low income households
on -site.
CONCLUSION:
Based on the findings provided, staff recommends the City Council conduct the first reading
of Ordinance 1564, by title only, for the first amendment to DA 2022-0002, to eliminate
owner's requirement to pay for the Housing In -Lieu Fee in the amount of $289,560 in
conjunction with "The Jessup" residential project.
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City Council Agenda Report
The Jessup
First Amendment to DA 2022-0002
April 1, 2025
Page 4
Prepared by:
Signed by:
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Raymond Barragan, Principal Planner
Approved by:
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Signed by:
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Jay Eastman, Assistant Community and Economic Development Director
Signed by:
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Justina L. Willkom
Community and Economic Development Director
Attachments:
1. Radius and Project Location Map
2. Planning Commission Meeting Minutes of July 9, 2024 and Resolution No. 4492
3. City Council September 17, 2024 Minutes and Ordinance 1544
4. Ordinance 1564 (First Amendment to DA 2022-0002)
Exhibit A: First Amendment to DA 2022-0002
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Docusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51 ` TACHMENT 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: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51
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
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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
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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
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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
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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
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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
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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
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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
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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
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Resolution No. 4492
Page 3
APPROVED AS TO FORM:
MICHAEL DAUD
Assistant City Attorney
Exhibit A: Draft Ordinance 1544
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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: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51
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.
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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.
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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
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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
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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
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TTACHMENT 3
Agenda Item 2
Reviewed: 'a'"a'
City Manager
Finance Director NIA
CITY OF TUSTIN MEETING SEPTEMBER 17, 2024
OF THE CITY COUNCIL 300 CENTENNIAL WAY, TUSTIN
ryr COUNCIL CHAMBER
VIDEO CONFERENCE
Ryan Gallagher, Mayor Pro Tem
Letitia Clark, Council Member Austin Lumbard, Mayor
Rebecca Gomez, Council Member
Ray Schnell, Council Member
Aldo E. Schindler, City Manager
Erica N. Yasuda, City Clerk
David E. Kendig, City Attorney
MINUTES OF THE CLOSED SESSION MEETING OF THE CITY COUNCIL
5:30 P.M.
CALL TO ORDER - #3063 at 5:30 p.m.
ROLL CALL — City Clerk
Present: Mayor Austin Lumbard, Mayor Pro Tem Ryan Gallagher, and Council
Members Letitia Clark, Rebecca Gomez and Ray Schnell
Absent: None
City Clerk: Erica N. Yasuda, City Clerk
Others Present: David E. Kendig, City Attorney; Aldo E. Schindler, City Manager
PUBLIC INPUT — None
CLOSED SESSION UPDATE — City Attorney David E. Kendig: The City Council will
convene to discuss Items 1, 3, 4 and 5 as they appear on the agenda, including conference
with its labor negotiators Derick Yasuda, Director of Human Resources and Peter Brown,
Liebert Cassidy Whitmore and its real property negotiators Aldo E. Schinder, City Manager;
Nicole Bernard, Assistant City Manager; Ryan Swiontek, Deputy Director of Economic
Development; Kenneth Piguee, Real Property Manager; and Jerry Craig, Deputy Director
of Economic Development, The Council will not discuss Item 2.
CLOSED SESSION ITEMS - The Brown Act permits legislative bodies to discuss certain
matters without members of the public present. The City Council finds, based on advice
from the City Attorney, that discussion in open session of the following matters will
prejudice the position of the City in existing and anticipated litigation:
City Council September 17, 2024
Meeting Minutes Page 1 of 17
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1. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION -
Significant exposure to litigation pursuant to Government Code § 54956.9(d)(2): (3
cases)
2. CONFERENCE WITH LEGAL COUNSEL —ANTICIPATED LITIGATION -Initiation
of litigation pursuant to Government Code § 54956.9(d)(4): (2 cases)
3. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION —
Significant exposure to litigation pursuant to Government Code § 54956.9(d)(2): (1
case) -- related to the fire at the North Hangar owned by the Navy and the release
of hazardous materials therefrom
4. LABOR NEGOTIATIONS -- [Government Code § 54957.6]:
Agency
Negotiators:
Derick Yasuda, Director of Human Resources and Peter Brown,
Liebert Cassidy Whitmore
Employee
Tustin Municipal Employees Association
Organizations:
Tustin Police Officers Association —Management Unit
Tustin Police Officers Association —Officer Unit
Tustin Police Support Services Management Association
Tustin Police Support Service Association
Unrepresented Confidential Employees
Unrepresented Supervisory Employees
Unrepresented Executive Management and Management
Employees
Unrepresented Part -Time Employees
5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS — Government Code §
54956.8: (2 cases)
A.
Property
Address/Description
APN 430-272-11, 430-272-13, 430-272-14,
430-272-23, 430-272-24, 430-272-27
Agency
City of Tustin
City Negotiators
Aldo E. Schindler, City Manager; Nicole
Bernard, Assistant City Manager; Ryan
Swiontek, Deputy Director of Real Property;
Ken Pi uee, Real Property Manager
Negotiating Parties
Sam's West Inc.
Under Negotiation
Price and Terms of Payment
B.
Property
Address/Description
APN 430-481-13, 430-481-14, 430-481-15
City Council septemoer -I r, zu«
Meeting Minutes Page 2 of 17
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Agency
City of Tustin
City Negotiators
Aldo E. Schindler, City Manager; Nicole
Bernard, Assistant City Manager; Ryan
Swiontek, Deputy Director of Real Property;
Ken Pi uee, Real Property Manager
Negotiating Parties
Mariners Church
Under Negotiation
Price and Terms of Payment
Recessed at 5:31 p.m.
MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL AND TUSTIN
HOUSING AUTHORITY
7:00 P.M.
CALL TO ORDER — #30.63 at 7:01 p.m.
INVOCATION - Pastor Jorge Molina, Mariners Church
PLEDGE OF ALLEGIANCE — Council Member Gomez
PRESENTATIONS —
Mayor Lumbard presented a Certificate of Recognition to Captain Stephanie Nichols for
Twenty-five Years of Service in the Tustin Police Department,
Stacey Cuevas, Acting Assistant Director of Public Works, provided a PowerPoint
presentation regarding the Old Town Improvements Project.
PUBLIC INPUT —
I. Nicole Aragon (Zoom)
CLOSED SESSION REPORT — City Attorney David E. Kendig: The Council took no
reportable action.
CONSENT CALENDAR ITEMS 1-15 --
City Council September 17, 2024
Meeting Minutes Page 3 of 17
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PUBLIC INPUT FOR THE CONSENT CALENDAR— None
Council Member Gomez requested to pull Items 5 and 13.
It was moved by Council Member Gomez and seconded by Council Member Clark to pull
Items 5 and 13 and approve the balance as recommended by staff.
Roll Call Vote — City Clerk
Motion carried: 5-0
1. WAIVE READING IN FULL OF ALL ORDINANCES AND RESOLUTIONS ON THE
AGENDA
Motion: The City Council waived reading in full of all ordinances and resolutions on
the agenda and declared that said titles which appear on the public agenda shall be
determined to have been read by title and further reading waived.
2. APPROVAL OF MINUTES — THE SPECIAL CLOSED SESSION MEETING AND
THE REGULAR MEETING OF THE CITY COUNCIL AND THE COUNCIL ACTING
IN ITS CAPACITY AS THE LOCAL REUSE AUTHORITY HELD ON AUGUST 20,
2024.
Motion: The City Council approved the Action Minutes of the City Council Meetings
held on August 20, 2024,
3. RATIFICATION OF PAYROLL AND DEMANDS
The City Council has approved the use of Government Code Section 37208 to
expedite the payment of City of Tustin obligations that are in accordance with the
approved budget or continued operations authorizations.
Motion: The City Council approved Payroll in the amount of $1,033,525.58 and
$1,057,831.52 and Demands in the amount of $9,661,419.76
4. MEMORANDUM OF UNDERSTANDING WITH THE TUSTIN MUNICIPAL
EMPLOYEES ASSOCIATION
Adoption of the attached Resolution and Memorandum of Understanding will
authorize terms and conditions of employment for employees in classifications
represented by the Tustin Municipal Employees Association in accordance with City
Council direction.
Motion: Adopted Resolution No. 24-65 to amend the City's Classification and
Compensation Plans and approved a Memorandum of Understanding with the Tustin
Municipal Employees Association for the period July 1, 2024 through June 30, 2027,
City Council September 17, 2024
Meeting Minutes Page 4 of 17
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Fiscal Impact: The provisions of this agreement will result in an additional cost of
approximately $756,465 in Fiscal Year 2024-25. By the end of the contract term, the
additional ongoing cost to the City is estimated to be $1,720,649 per year. Staff is
not requesting any supplemental budget appropriations associated with this
agreement at this time; any supplemental appropriations will be incorporated with the
mid -year budget review, which will be presented to the City Council in February 2025.
RESOLUTION NO. 24-65
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
AMENDING THE CLASSIFICATION AND COMPENSATION PLANS FOR THE
CITY OF TUSTIN AND APPROVING THE MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF TUSTIN AND THE TUSTIN MUNICIPAL EMPLOYEES
ASSOCIATION, CONCERNING WAGES, HOURS, AND TERMS AND
CONDITIONS OF EMPLOYMENT
5. TUSTIN HOUSING AUTHORITY ANNUAL MEETING AND ANNUAL REPORT
Pursuant to the Tustin Housing Authority Bylaws and State of California Housing
Authorities Law of the California Health and Safety Code Section 34328, the Tustin
Housing Authority is holding an annual meeting in order to receive and file the
Housing Authority Annual Report of its activities for the preceding fiscal year.
It was moved by Council Member Gomez and seconded by Mayor Lumbard to take
the following actions:
As the Tustin Housing Authority Commissioners:
• Received and filed the Tustin Housing Authority Annual Report for Fiscal Year
2023-2024 and transmit such report to the Tustin City Council.
As the City Council:
• Received and filed the Tustin Housing Authority's Annual Report for Fiscal
Year 2023-2024.
• Directed that a copy of the Housing Authority's Annual Report for Fiscal Year
2023- 2024 be filed with the City Clerk and ex-officio Clerk of the City Council
of the City of Tustin and the California State Department of Housing and
Community Development
Roll Call Vote -- City Clerk
Motion carried: 5-0
Fiscal Impact: The only fiscal impact of this action has been the staff time necessary
to prepare the annual report. Pursuant to Section 34328.1, the Department of
Housing and Community Development could request the Housing Authority
City Council September 17, 2024
Meeting Minutes Page 5 of 17
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reimburse the department for the cost of processing the report. The Housing
Authority is requesting relief from this requirement and has been granted relief in
prior year filings.
6. HOME REPAIR PROGRAM -- REQUEST TO WAIVE BUILDING PERMIT FEES
The City of Tustin has launched a Home Repair Program in partnership with Habitat
for Humanity of Orange County, as a new resource to the Tustin community. The
program is eligible to low and moderate -income Tustin homeowners who are seniors
(62+), disabled, or veterans. It provides grants of up to $15,000 for essential home
repairs, with a focus on improving the health and safety of the home. The program's
goal is to serve eight (8) Tustin homeowners during the first year of the program.
In order to maximize the grant funding homeowners receive, it is recommended the
City Council waive the building permit fees for approved repairs. Waiving these fees
allows the entire grant amount to be expended on labor and material costs, rather
than City permitting fees. Waiving permit fees also increases the possibility of
additional repairs, and that more homeowners are served by the Program funding.
Motion: The City Council adopted Resolution No. 24-57, authorizing the waiver of
the building permit fees incurred by eligible participants in the City of Tustin's Home
Repair Program.
Fiscal Impact_: A request to waive building permit fees for the Home Repair Program
would have a minimal impact on the General Fund. The exact amount cannot be
determined at this.time due to the range of permit types that may be issued to
program participants. Common repairs typically include water heater replacement,
window replacement, plumbing, roof repairslreplacement, and electrical work, with
permit costs ranging from approximately $70 for simple repairs, to $1,000 for more
complex projects. The total amount of waived fees will be tracked and documented
in the program's annual report.
RESOLUTION NO. 24-57
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
ENACTING A WAIVER OF THE CITY'S BUILDING PERMIT FEES FOR THE CITY
OF TUSTIN HOME REPAIR PROGRAM
7. LEGISLATIVE UPDATE
Staff and the City's consultant Townsend Public Affairs have prepared a summary of
state legislative activity.
Motion:
1. Received and filed legislative updates prepared by Townsend Public Affairs
2. Received and filed the updated legislative matrix as of September 5
City Council 5eptemrJer 'I r, /-vz4
Meeting Minutes Page 6 of 17 .
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Fiscal Impact: There's no fiscal impact associated with this report.
8. AUTHORIZATION TO PURCHASE VEHICLES AND EQUIPMENT INCLUDING
DECLARATION OF SURPLUS EQUIPMENT FOR PUBLIC AUCTION
Staff is requesting the City Council authorize the replacement purchases of eight (8)
light -medium duty maintenance vehicles and two (2) pieces of specialty maintenance
equipment that support the Public Works and the Parks and Recreation Departments.
Additionally, it is requested the City Council declare certain City equipment surplus
in accordance with section 1630 (2) of the Tustin City Code and authorize the sale of
surplus equipment at public auction.
Motion: The City Council:
1. Adopted Resolution number 24-60 authorizing the Department of General
Services of the State of California Contract No. 1-22-23-20D to purchase four
(4) 1-ton flatbed trucks, two (2) 3/ ton utility trucks, one (1) 3/ ton pickup truck
and one (1) 1/2 ton pickup truck from Winner Chevrolet, Elk Grove, CA in the
amount of $544,287.22
2. Adopted Resolution number 24-61 authorizing the purchase of one (1) riding
sweeper from Tennant Company, Eden Prairie, MN, utilizing Equalis Group
Contract No. R10-1137B in the amount of $ 62,617.64.
3, Adopted Resolution number 24-62 authorizing the purchase of (1) riding
lawnmower from Turf Star Brea, CA. utilizing Sourcewell Contract No. 031121
TTC in the amount of $107,095.86,
4. Declared, in accordance with the Tustin City Code — Section 1630 (2), the
attached itemized list of equipment as surplus and not required for public use.
5. Authorized the sale of itemized list of surplus equipment at the public auction
and credit net proceeds to applicable City Revenue Fund.
Fiscal impact: The total cost for the ten (10) recommended replacement vehicles
and equipment is $714,000.72 (itemized in table below). Sufficient funds have been
budgeted and approved in the fiscal year 2024-2025 budget within the Vehicle Lease
Fund (Fund 184).
RESOLUTION NO. 24-60
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA
AUTHORIZING THE STATE OF CALIFORNIA DEPARTMENT OF GENERAL
SERVICES PURCHASING PROGRAM TO PURCHASE CERTAIN ITEMS FOR
AND ON BEHALF OF THE CITY
RESOLUTION NO, 24-61
City Council September 17, 2024
Meeting Minutes Page 7 of 17
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA
AUTHORIZING THE PURCHASE OF CERTAIN ITEMS THROUGH THE EQUALIS
GROUP PURCHASING PROGRAM
RESOLUTION NO. 24-62
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA
AUTHORIZING THE PURCHASE OF CERTAIN ITEMS THROUGH THE
SOURCEWELL PURCHASING PROGRAM
9. APPROVE AMENDMENT NO. 1 TO COOPERATIVE AGREEMENT NO. C-9-1421
WITH THE ORANGE COUNTY TRANSPORTATION AUTHORITY FOR THE RED
HILL AVENUE REGIONAL TRAFFIC SIGNAL SYNCHRONIZATION PROJECT
Staff is requesting the City Council approve Amendment No. 1 to Cooperative
Agreement No. C-9-1421 with the Orange County Transportation Authority extending
the term of the agreement to December 31, 2026, to complete the Red Hill Avenue
Regional Traffic Signal Synchronization Project.
Motion: The City Council approved Amendment No. 1 to Cooperative Agreement
No. C-9-1421 with the Orange County Transportation Authority for the Red Hill
Avenue Regional Signal Synchronization Project which extends the term of the
agreement to December 31, 2026, and authorized the Mayor and City Clerk to
execute the extension agreement on behalf of the City.
Fiscal Impact: There is no fiscal impact associated with this extension.
10. ORDINANCE NO. 1546 AMENDING WASTE REDUCTION AND RECYCLING
PROGRAM REQUIREMENTS
Ordinance No. 1546 amends Section 4351 of the Tustin City Code to simplify the
collection of deposits associated with the City's Waste Reduction and Recycling
Program for construction and demolition debris.
Motion: The City Council introduced and had the first reading by title only of
Ordinance No. 1546 and set the second reading at the City Council's next scheduled
meeting.
Fiscal Impact-, All revenue and expenses associated with the Waste Reduction and
Recycling Program are administered through the Solid Waste Fund (Fund 171) and
fluctuate based on construction activity throughout the community. The proposed
Ordinance will reduce the revenue generated from the construction of new single-
family detached homes since only one $50 permit application fee will be collected
rather than three. However, there will be a significant saving of staff time in both the
Public Works and Finance Departments to collect and refund deposits.
ORDINANCE NO. 1546
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN AMENDING
ARTICLE 4, CHAPTER 3, PART 5 OF THE TUSTIN CITY CODE REGARDING
City Council September 17, 2024
Meeting Minutes Page 8 of 17
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WASTE DISPOSAL AND DIVERSION REQUIREMENTS FOR CONSTRUCTION,
DEMOLITION, AND RENOVATION PROJECTS WITHIN THE CITY
11. AUTHORITY TO SETTLE GENERAL, EMPLOYMENT, AND AUTOMOTIVE
LIABILITY CLAIMS
Adoption of the attached Resolution will clarify that the City Manager may appoint a
designee to authorize the settlement of general, employment, and automotive liability
claims.
Motion: Adopted Resolution No. 24-53 to clarify staffs authority to settle general,
employment, and automotive liability claims up to $50,000
Fiscal Impact: There's no fiscal impact associated with this report.
RESOLUTION NO. 24-53
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
INCREASING THE AUTHORITY OF THE DIRECTOR OF HUMAN RESOURCES,
CITY MANAGER, AND CITY ATTORNEY TO SETTLE GENERAL, EMPLOYMENT,
AND AUTOMOTIVE LIABILITY CLAIMS
12. DECLARATION OF SURPLUS EQUIPMENT
The City has accumulated a collection of obsolete and/or damaged equipment,
including but not limited to desktop and laptop computers, access points, servers,
network equipment, camera equipment, printers, scanners, tablets, and phone
devices that are no longer functional or needed for public use.
Motion:
1. Declared the listed equipment as surplus and not required for public use; and,
2. Authorized staff to sell serviceable equipment and dispose of assets beyond
repair.
Fiscal Impact: Surplus property with salvage value will be sent to auction, and the
proceeds from the sale will be deposited into the Information Technology Fund.
13. DESIGNATION OF VOTING DELEGATES AND ALTERNATES -- LEAGUE OF
CALIFORNIA CITIES ANNUAL CONFERENCE SCHEDULED FOR OCTOBER 16-
18, 2024 (LONG BEACH)
In order to vote at the Annual Business Meeting, the City Council must designate a
voting delegate and up to two alternate voting delegates, one of whom may vote in
the event that the designated voting delegate is unable to serve in that capacity.
City Council September 17, 2024
Meeting Minutes Page 9 of 17
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Council Member Gomez requested clarification regarding whether additional
Members of the Council were attending the conference to ensure the City has two
alternate voting delegates. Council Member Clark confirmed she is attending as well.
It was moved by Mayor Lumbard and seconded by Council Member Schnell to
designate the following:
Voting Delegate: Council Member Rebecca `Beckie" Gomez
Alternates: Council Member Ray Schnell and Council Member Letitia Clark
Roll Call Vote — City Clerk
Motion carried: 5-0
Fiscal Impact: The voting delegate and alternate are required to be registered to
attend the conference and be present in order to cast a vote; therefore, the fiscal
impact is limited to the cost of the conference registration.
14. RESPONSE TO 2023-2024 ORANGE COUNTY GRAND JURY REPORT, "E-
BIKES, FRIEND OR FOE"
On June 13, 2024, the City received the Orange County Grand Jury report titled "E-
bikes, Friend or Foe" which examined the impact of E-bikes on Orange County
communities, focusing on regulation., education, and safety. The Grand Jury report
requires the City to respond to three findings and three recommendations outlined in
the report. Pursuant to California Penal Code 933.05(a) and (b), the City's response
must be submitted to the Presiding Judge of the Superior Court by September 19,
2024, unless an extension is granted.
Motion: The City Council reviewed and approved the proposed response to the
2023-2024 Orange County Grand Jury report titled "E-bikes, Friend or Foe" in the
form attached.
Fiscal Impact: There's no fiscal impact associated with this report.
15. ESTABLISHING A SUBCOMMITTEE OF THE CITY COUNCIL. TO ADVISE THE
COUNCIL ON TUSTIN LEGACY MATTERS
At its August 20, 2024, meeting, the City Council directed City staff to agendize
consideration of a standing Council Subcommittee focused on Tustin Legacy
matters.
Motion: The City Council established a Subcommittee of the City Council to advise
the Council on Tustin Legacy matters as described further within this staff report.
Fiscal Impact: Additional public meetings would utilize existing resources and are
expected to incur nominal additional expense to the City.
City Council September 1 (, Luna
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PUBLIC HEARING ITEMS 16-17
16. CODE AMENDMENT 2024-0004 (ORDINANCE NO. 1543) — (ORDINANCE
UPDATES RELATIVE TO THE IMPLEMENTATION OF THE 6TH CYCLE 2021-
2029 HOUSING ELEMENT)
Code Amendment 2024-0004 is a City -initiated request to amend various sections of
Article 9 (Land Use) of the Tustin City Code 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.
Public Hearing opened at 7:45 p.m.
Jorge Maldonado, Associate Planner, provided a PowerPoint presentation.
Public Input — None
Public Hearing closed at 7:50 p.m.
It was moved by Council Member Gomez and seconded by Council Member Clark
to conduct first reading of Ordinance No. 1543, by title only, for Code Amendment
2024-0004 and set second reading to the next available Council meeting.
Roll Call Vote --- City Clerk
Motion carried: 5-0
Fiscal Impact: There is no fiscal impact associated with this report.
ORDINANCE NO, 1543
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, ADOPTING ORDINANCE NO. 1543, AMENDING VARIOUS
SECTIONS OF TUSTIN CITY CODE ARTICLE NINE (LAND USE) TO IMPLEMENT
THE HOUSING IMPLEMENTATION PROGRAM OF THE 6TH CYCLE 2021-2029
HOUSING ELEMENT OF THE GENERAL PLAN (CODE AMENDMENT 2024-0004)
17. FIRST AMENDMENT TO DEVELOPMENT AGREEMENT 2022-0002 — THE
JESSUP AT 17802 — 17842 IRVINE BOULEVARD
City Council September 17, 2024
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Mayor Pro Tern Gallagher recused himself due to a Levine Act conflict and left the
dais.
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.
Public Hearing opened at 7:52 p.m.
Public Input -- None
Public Hearing opened at 7:52 p.m.
It was moved by Mayor Lumbard and seconded by Council Member Schnell to
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.
Roll Call Vote — City Clerk
Motion failed: 2-2-1 (Council Member Clark and Council Member Gomez dissented
and Mayor Pro Tern Gallagher recused)
Fiscal Impact: Staff anticipates that the fiscal impact would be $289,560 to the
inclusionary housing fund due to waiving the fees.
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.
Mayor Pro Tern Gallagher returned to the dais.
REGULAR BUSINESS ITEMS 18-19
18. LONG RANGE TUSTIN LEGACY FINANCIAL MODELING
Jennifer King, Director of Finance, and Jim Fabbian, Consultant, provided a
PowerPoint presentation.
City Council September 17, ZU24
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As requested by the City Council in the Spring of 2024 during the last budget
review/adoption process, a preliminary long range Tustin Legacy financial model tool
is being created. The comprehensive model will enable valuable insight into potential
financial impacts related to buildout of Tustin Legacy on the City's overall fiscal
position.
The City Council received a presentation from staff and the consultant regarding the
model's framework and intended value as an effective evaluation tool.
Public Input — None
It was moved by Mayor Lumbard and seconded by Council Member Schnell to direct
staff to continue to update the model with real data inputs and update Council on a
regular basis.
Roll Call Vote — City Clerk
Motion carried: 5-0
Fiscal Impact: The City has contracted with a municipal advisor, Fieldman Rolapp
& Associates, to prepare this comprehensive financial model. The project is
estimated to cost up to $50,000, and sufficient funding is available in the current fiscal
year's budget to cover this expense.
19. DISCUSSION OF PROPOSED PURCHASING POLICY AMENDMENTS
Jennifer King, Director of Finance provided a PowerPoint presentation.
This report presents options for potential amendments to the City's Purchasing Policy
and Procedures, as outlined in the Tustin Municipal Code section 1621-1630. It seeks
City Council's direction on proposed changes to be considered at a future meeting.
Public Input - None
It was moved by Mayor Lumbard and seconded by Council Member Schnell to direct
staff to adjust the no bidding threshold for non-public project contracts to $30,000
and direct staff to present a draft ordinance for the Council's consideration at a future
meeting.
Roll Call Vote — City Clerk
Motion carried: 5-0
Fiscal Impact,: There is no direct fiscal impact associated with this item.
City Council September 17, 2024
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OTHER BUSINESS/CITY MANAGER AND CITY ATTORNEY
City Manager, Aldo E. Schindler
Announced it was great to celebrate Tustin Police Captain Stephanie Nichols' 25 years of
service.
Announced the City made several key hires to help achieve the Council's vision; reported
Micah Weichbrodt was hired as the Economic Development Management Analyst 11; Micah
has trained with the Business License Team and the Building Division; mentioned Micah
will lead the City's Business Concierge Program to improve services for Tustin's business
community; the City Manager's Office hired Melanie Franceschini as the Senior
Management Analyst; Melanie will help the City become more creative and efficient with
administrative practices citywide while helping to support the council at a higher level; as
part of the City's succession planning for the retirement of Deputy Director of Public Works,
Ken Nishikawa the City hired Kenny Nguyen as Deputy Director of Public Work/ City
Engineer; ensured some overlap to retain institutional knowledge during the transition.
Reported Michael Grisso had served as Acting Public Works Director for almost a year;
announced Michael was appointed as the permanent Director of Public Works; Michael has
done great work for the public realm.
COUNCIL. MEMBER COMMENTS AND REPORTS
Council Member Schnell
Congratulated newly appointed Director of Public Works, Michael Grisso.
August 28
Attended the Mayor's Business Recognition Luncheon event; was a great event; was a
celebration of the hard work, the entrepreneurial spirit, and the success of local Tustin
businesses; CEO of Glove Wrap, Gavin Batarse, a 9-year-old entrepreneur was in
attendance; Gavin was on Shark Tank for his baseball glove wrap design to help break in
baseball gloves; was very cool.
August 29
Attended the Foothill/Eastern Transportation Corridor Agency (TCA) Policy and Agreement
Ad Hoc Committee meeting; reported TCA is focused on the 241/91 connector project; the
project is estimated to break ground by the end of 2025 with completion in 2028; the project
will alleviate a lot of the congestion on the freeway exchange between the 241 toll road
heading into the 91 freeway; discussed different ways TCA can model out controlling the
flow of traffic at peak hours to include dynamic pricing, toll meters, HOV only, and transit
van pool mode; no final decisions have been made yet; TCA is figuring out the best way to
make sure people are benefiting from the connector project.
September 10
Attended the monthly Tustin Economic Development Committee Meeting; the Tustin
City Council September 17, 2024
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Chamber of Commerce, Deputy Director of Economic Development, Jerry Craig, and Tustin
Marketplace businesses were in attendance; discussed the new Tustin businesses that are
coming into the area.
September 12
Attended the Foothill/Eastern Transportation Corridor Agency (TCA) Joint Capital Programs
meeting; approved the habitat conservation fund allocation; was a settlement agreement
from a result of the San Onfre Coalition; reported TCA was obligated to allocate $28 million
in funds to the settlement; reported $8 million was allocated to smaller near term
conservation projects such as Habitat Restoration and a few smaller property acquisitions
by 2025; additionally the remaining $20 million will be allocated and spent by 2030 on
sizable property acquisitions; these funds will help maintain the ecology and the habitat in
those areas.
Council Member Clark
August 28
Attended the Mayor's Business Recognition Luncheon event; is a great event for business
owners to be celebrated and recognized; thanked Communications Manager, Stephanie
Najera, for all her hard work with this event every year; is always fun and well done.
Announced, on behalf of the City Council, she presented a certificate of recognition to
DeShaun Foster for being inducted into Tustin High School's Athletics Hall of Fame;
DeShaun is now the head coach for University of California, Los Angeles' (UCLA) football
team.
Announced, on behalf of the City Council, she presented a certificate of recognition to
Working Wardrobes for celebrating their annual event and fundraiser.
Wished everyone a happy National Hispanic Heritage Month; which starts September 15,
2024, through October 15, 2024.
Council Member Gomez
August 21
Attended the Tustin Effective Apartment Managers (TEAM) luncheon event; discussed
affordable housing; Deputy Director of Economic Development, Jerry Craig, was the
speaker for the event.
August 28
Attended the Mayor's Business Recognition Luncheon event; 9-year-old entrepreneur, CEO
of Glove Wrap, Gavin Batarse was a favorite; thanked Communications Manager,
Stephanie Najera and Deputy Director of Economic Development, Jerry'Craig for putting on
the event.
September 5
Attended the Tustin Senior Advisory Board meeting; stated will report on that meeting at the
next city council meeting.
City Council September 17, 2024
Meeting Minutes Page 15 of 17
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September 6
Attended the be "Red Cross Ready" event, was a disaster preparedness workshop
sponsored by Assemblywoman Cottie Petrie -Norris; was a good workshop; is a great
workshop to have again.
Announced she is looking forward to the Tustin Parks and Recreation Sunset Market event
on September 19, 2024; which is the last Sunset Market event of the season; encouraged
everyone to come out and support the vendors; some vendors went to the city's small
business program.
Congratulated and welcomed all of Tustin's new employees; congratulated those who were
promoted.
Mayor Pro Tem Gallagher
September 9
Attended the Tustin Police Department Open House event; thanked the Tustin Police
Department for another engaging and fun event.
Announced is looking forward to the Tustin Parks and Recreation Sunset Market event on
September 19, 2024; is excited to attend; heard great feedback from those that attended
and heard from people that didn't realize the event was occurring which comes with being
a first-time event; encouraged staff to check in with the vendors to get their feedback on
what changes can be made for next year.
Congratulated newly appointed Director of Public Works, Michael Grisso; well deserved.
Stated would like staff to investigate the safety around opening Moffett Drive into the Tustin
Legacy Academy; when previously mentioned staff hit constraints; reported a new
discussion with Tustin Unified School District (TUSD) last month had concerns with walk to
school safety; stated these two items aligned; reported has been approached by individuals
in the community and are really excited and interested; understands the need to continue
the conversation with TUSD; would like feedback from the discussion with TUSD to know
what the options are on creating the walkway.
Mayor Lumbard
Announced Annette Bartolomucci who ran Mrs. B's Consignments Etc., passed away on
August 24, 2024; thanked Senior Executive Coordinator, Regina Blankenhorn for informing
the Council of her passing.
Stated Mrs. B's Consignment Etc., was ran in the former Tustin Hardware store building in
Old Town Tustin for over 20 years; stated Arvida Books is currently occupying the building;
Annette was a very spunky lady with a lot of opinions; was an educator for a long time in
the Tustin Unified School District (TUSD); was very nice and kind woman who welcomed a
lot of people; gave condolences to her family; stated thoughts and prayers are with the
family.
City Council September 17, 2024
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ADJOURNED at 3:59 p.m. The next meeting is scheduled on Tuesday, October 1, 2024, for
the Closed Session Meeting at 5:30 p.m, and the Regular Business Meeting at 7:00 p.m.
City Council September 17, 2024.
Meeting Minutes Page 17 of 17
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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:
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.
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Ordinance 1644
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.
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Ordinance 1544
Page 3 of 3
PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin
on this _try 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
1, 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
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ATTACHMENT 4
ORDINANCE NO. 1564
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 and Economic Development 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. The City Council's motion to adopt Ordinance 1544 failed
due to a 2-2-1 vote.
E. That on February 13, 2025, the applicant requested that the City Council
reconsider the first amendment to the DA 2022-0002.
F. That a public hearing was duly called, noticed, and held on said application
on April 1, 2025, by the City Council.
G. That the First Amendment is consistent with and advances City Council
Resolution No. 24-14, which has as its aim removing barriers to residential
construction and spurring development to create more housing by
encouraging developers to pursue housing projects, both by reinforcing the
City Council's policy of removing barriers to development and
demonstrating publicly to developers, the California Department of Housing
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Ordinance 1564
Page 2 of 3
and Community Development, and others that the City actively encourages
and removes barriers to development.
H. 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.
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.
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
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Ordinance 1564
Page 3 of 3
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
on this 1 st day of April, 2025.
AUSTIN LUMBARD
Mayor
ERICA N. YASUDA
City Clerk
APPROVED AS TO FORM:
DocuSigned by:
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. 1564 was duly and
regularly introduced at a regular meeting of the Tustin City Council, held on the 1st day
of April, 2025, and was given its second reading, passed, and adopted at a regular
meeting of the City Council held on the day of , 2025 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
ERICA N. YASUDA
City Clerk
Exhibit A — FIRST AMENDMENT TO DA 2022-0002
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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 exemptfrom
the payment of a recording fee pursuant to
Government Code §§ 6103 and 27393.
FIRST AMENDIVIENTTO 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 Soca1-1, LLC, the original "Owner"
signatory to the DA.
RECITALS
A. This Amendment pertains to "The Jessup" residential project iocated at what previously was
1.7802 and 1.7842 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 riot 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
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AGREEMENT
City and Owner mutually agree to amend the DA to eliminate Owner's requirement urider section
3b hand 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:
Name:
Its:
Date:
By: _
Name:
Its:
Date:
2
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EXHIBIT A
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.
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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 , 2025, 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.
RrriTai 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.
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Docusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51
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.
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Tustin 40 Development LLC, a Delaware
limited liability company
M
CITY
City of Tustin, a municipal corporation
as
Name: Name:
Its: Its:
Date: Date:
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