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Home My WebLink AboutORD 1564 (2025)Docusign Envelope ID: 22B5F71A-416D-49BF-BDDC-360ED355817B 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 Ordinance No. 1564 Page 1 of 4 Docusign Envelope ID: 22B5F71A-416D-49BF-BDDC-360ED355817B City Council's policy of removing barriers to development and demonstrating publicly to developers, the California Department of Housing 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: 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. Ordinance No. 1564 Page 2 of 4 Docusign Envelope ID: 22B5F71A-416D-49BF-BDDC-360ED355817B 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. PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin on this 15th day of April 2025. DS Signed by: i, aS'J. E R DN04YA8SU DA, City Clerk APPROVED AS TO FORM: DocuSigned by: 7�'Z'179 DAVtD8EF3WENDIG City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) Signed by: AU I`qDLUMABARD, Mayor 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 15th day of April 2025 by the following vote: COUNCILMEMBER AYES: Lumbard, Nielsen, Gallagher, Schnell, (4) COUNCILMEMBER NOES: Fink (1) COUNCILMEMBER ABSTAINED: (0) COUNCILMEMBER ABSENT: (0) COUNCILMEMBER RECUSED: (0) Ordinance No. 1564 Page 3 of 4 Docusign Envelope ID: 22B5F71A-416D-49BF-BDDC-360ED355817B DS Signed by: `t'�V'i(& a.Sd& ER ADf't.041AASU DA, City Clerk Exhibit A — FIRST AMENDMENT TO DA 2022-0002 Ordinance No. 1564 Page 4 of 4 Docusign Envelope ID: 22B5F71A-416D-49BF-BDDC-360ED355817B RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Tustin 300 Centennial Way Tustin, CA 92780 Attn: City Clerk SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE This Agreement is recorded at the request and for the benefit of the City of Tustin and is exempt from the payment of a recording fee pursuant to Government Code §§ 6103 and 27383. FIRST AMENDMENT TO DEVELOPMENT AGREEMENT 2022-0002 BETWEEN THE CITY OF TUSTIN AND TUSTIN 40 DEVELOPMENT LLC (17802 and 17842 Irvine Boulevard, Tustin, California) This First Amendment (the "Amendment") to Development Agreement 2022-0002 (the "DA") is entered into as of , 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. RWITAI C A. This Amendment pertains to "The Jessup" residential project located at what previously was 17802 and 17842 Irvine Boulevard in the City (the "Project") and which is currently under construction by Owner. B. The DA for the Project was approved by the City Council on January 17, 2023, with the second reading of the ordinance authorizing the DA approved on February 7, 2023. The DA was recorded on May 25, 2023 as document No. 2023000123947 in Official Records, Orange County, California. C. Under Section 3b of the DA, Owner agreed to pay a voluntary workforce housing incentive program in -lieu fee (the "In -Lieu Fee") as a public benefit and in consideration of the Owner's vested right to develop the Project, even though the In -Lieu Fee was not required under the Tustin City Code. D. The City and Owner would like to modify the DA with respect to the In -Lieu Fee. 1 Docusign Envelope ID: 22B5F71A-416D-49BF-BDDC-360ED355817B AGREEMENT City and Owner mutually agree to amend the DA to eliminate Owner's requirement under Section 3b (and any related provisions) of the DA to pay the In -Lieu Fee. In all other respects, the DA remains the same. This Amendment has been signed by the Parties on the dates indicated below. OWNER Tustin 40 Development LLC, a Delaware limited liability company By: _ Name: Its: Date: CITY City of Tustin, a municipal corporation By: _ Name: Its: Date: 2