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Home My WebLink About05 SECOND READING AND ADOPTION OF ORDINANCE NO. 1564 (THE JESSUP)Docusign Envelope ID: 69AC4BE1-C8C1-48ED-981C-2B9F4B7E6EE8 MEETING DATE TO FROM Agenda Item 5 AGENDA REPORT Reviewed: Initial City Manager a`V� Finance Director N/A APRIL 15, 2025 ALDO E. SCHINDLER, CITY MANAGER ERICA N. YASUDA, CITY CLERK SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1564 — FIRST AMENDMENT TO DEVELOPMENT AGREEMENT 2022-0002 (THE JESSUP AT 17802 — 17842 IRVINE BOULEVARD) SUMMARY: Adoption of Ordinance No. 1564 approves 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 amendment eliminates the owner's requirement to pay the Voluntary Workforce Housing Incentive Program In -Lieu Fee. RECOMMENDATION: That the City Council have second reading by title only and adoption of Ordinance No. 1564. FISCAL IMPACT: There is no fiscal impact to the General Fund associated with this item. 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). Docusign Envelope ID: 69AC4BE1-C8C1-48ED-981C-2B9F4B7E6EE8 City Council Agenda Report Second Reading and Adoption of Ordinance No. 1564 April 15, 2025 Page 2 BACKGROUND AND DISCUSSION: On April 1, 2025, the City Council had first reading by title only of Ordinance No. 1564: ORDINANCE NO. 1564 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, 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. 5"?d -&, � Erica N. Yasuda City Clerk Attachment: 1. Ordinance No. 1564 Docusign Envelope ID: 69AC4BE1-C8C1-48ED-981C-2B9F4B7E6EE8 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 Docusign Envelope ID: 69AC4BE1-C8C1-48ED-981C-2B9F4B7E6EE8 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 Docusign Envelope ID: 69AC4BE1-C8C1-48ED-981C-2B9F4B7E6EE8 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