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HomeMy WebLinkAbout05 SECOND READING OF ORDINANCE NO. 1581 - MARINERS CHURCH PROJECT Agenda Item 5 Reviewed: City Manager_______ AGENDA REPORT Finance Director N/A MEETING DATE: OCTOBER 6, 2026 TO:ALDO E. SCHINDLER, CITY MANAGER FROM:ERICA N. YASUDA, CITY CLERK SUBJECT:SECOND READING AND ADOPTION OF ORDINANCE NO. 1581 DEVELOPMENT AGREEMENT 2026-0002 FOR THE MARINERS CHURCH TUSTIN LEGACY PROJECT SUMMARY: Adoption of Ordinance No. 1581approves Development Agreement 2026-0002 to facilitate the development and conveyance of the 3.324-acre City-owned site for the Mariners Church Tustin Legacy project. RECOMMENDATION: That the City Council have second reading by title only and adoption of Ordinance No. 1581. FISCAL IMPACT: There is no fiscal impact associated with this item. CORRELATION TO THE STRATEGIC PLAN: The proposed project furthers the objectives of Strategic Plan Goal A –Economic and Neighborhood Development. Specifically, this item implements Strategy 1, which is to develop critical phases of Tustin Legacy. BACKGROUND AND DISCUSSION: On September 15, 2026, the City Council had first readingby title only of Ordinance No. 1581: ORDINANCE NO. 1581 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT 2026-0002 BETWEEN THE CITY OF TUSTIN AND MARINERS CHURCH,A CALIFORNIA NON-PROFIT RELIGIOUS CORPORATION FORTHE DEVELOPMENT OF A 33,422 SQUARE FOOT RELIGIOUS City Council AgendaReport Second Reading and Adoption of Ordinance No.1581 October 6, 2026 Page 2 ASSEMBLY USE WITHIN NEIGHBORHOOD D OF THE TUSTINLEGACY SPECIFIC PLAN _____________________ Erica N. Yasuda, City Clerk Attachment: 1.Ordinance No. 1581 ORDINANCE NO.1581 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT 2026- 0002 BETWEEN THE CITY OF TUSTIN AND MARINERS CHURCH, A CALIFORNIA NON-PROFIT RELIGIOUS CORPORATION FOR THE DEVELOPMENT OF A 33,422 SQUARE FOOT RELIGIOUS ASSEMBLY USE WITHIN NEIGHBORHOOD D OF THE TUSTIN LEGACY SPECIFIC PLAN he City Council of the City of Tustin, California does hereby ordain as follows: T SECTION 1. The City Council finds and determines as follows: A.That a proper application has been submitted by Issac Luevano of Carlile Coatsworth Architects on behalf of Mariners Church, a California non-profit religious corporation, for the development of a new religious assembly use comprised of 33,422 square feet of building area including a 622-seat sanctuary space, meeting/worship rooms, service spaces and 276 on-site parking spaces with landscaping and associated site improvements, on Lot 15 of Tract 18197, an approximately 3.32-acre site currently owned by the City of Tustin within Planning Area (PA) 8, 13, and 14 (Neighborhood D) of the Tustin Legacy Specific Plan (TLSP). B.That Development Agreement (DA) 2026-0002 provides public benefits in the form of public/quasi-public and/or institutional usage as a new religious assembly usewithin the City; installation of on-site and off-site improvements; and the creation and retention of jobs. In addition, the DA requires the developer to: 1.Design and construct sidewalk, parkway landscape, and irrigation systems adjacent to the project along Warner Avenue, Veteran’s Way and John Johnson Way. 2.Enter into a Landscape Installation and Maintenance Agreement with the City for the construction, maintenance, repair, and replacement of landscaping within the landscape area; 3.Annex the property and project improvements into Community Facilities District (CFD) 18-01, Zone 4, for the provision of maintenance and essential services at Tustin Legacy; and 4.Pay the Project Fair Share Contribution for backbone infrastructure in Tustin Legacy. ________________ Ordinance No. 1581 DA 2026-0002 Page 1 C.That TLSP Section 4.2.7 requires all private nonresidential development at Tustin Legacy to obtain a DA in accordance with Section 65864 et seq. of the Government Code and Sections 9600 to 9619 of the Tustin City Code (TCC). In compliance with TCC Section 9611, the Tustin Planning Commission must make a recommendation on the proposed DA to the City Council. D.That a public hearing was duly called, noticed, and held on said application on August 25, 2026, by the Planning Commission. The Planning Commission adopted Resolution No. 4557recommending that the City Council approve the DA. E.That a public hearing was duly called, noticed, and held on said application on September 15, 2026, by the City Council. F. On January 16, 2001, the City of Tustin certified the Program Final Environmental Impact Statement/Environmental Impact Report (FEIS/EIR) for the reuse and disposal of MCAS Tustin.On December 6, 2004, the City Council adopted Resolution No. 04-76 approving a supplement to the FEIS/EIR for the extension of Tustin Ranch Road between Walnut Avenue and the future alignment of Valencia North Loop Road. On April 3, 2006, the City Council adopted Resolution No. 06-43 approving an addendum to the FEIS/EIR. On May 13, 2013, the City Council adopted Resolution No. 13-32 approving a second addendum to the FEIS/EIR. On July 5, 2017, the City Council adopted Resolution No. 17-23 approving a second supplement to the FEIS/EIR. On December 17, 2024, the City Council adopted Resolution No. 24-76 approving a third supplement to the FEIS/EIR (the TLSP 2025 SEIR, State Clearinghouse No. 1994071005), which evaluated the environmental effects in conjunction with an amendment to the TLSP to implement the programs and policies of the City’s Sixth Cycle Housing Element Rezone Project, which increased residential capacity within TLSP Neighborhoods D (North and South) and G (Housing Element Sites 1A, 1B and 2). The FEIS/EIR, along with its addenda and supplements, is a program EIR under the California Environmental Quality Act (CEQA). The FEIS/EIR, addenda, and supplements considered the potential environmental impacts associated with development on the former Marine Corps Air Station, Tustin. Because the proposed project includes the construction and establishment of a new religious assembly use within a new two-story building, the project has been evaluated through an addendum tiering from the TLSP 2025 SEIR pursuant to CEQA Guidelines Sections 15164, _________________ Ordinance No. 1581 DA 2026-0002 Page 2 15162, and 15168.The addendum concludes that the project is within the scope of the development previously analyzed in the TLSP 2025 SEIR, that none of the conditions described in CEQA Guidelines Section 15162 calling for preparation of a subsequent or supplemental EIR have occurred, and that no further environmental documentation is required. On August 25, 2006, the Planning Commission adopted the Addendum to the TLSP 2025 SEIR with Resolution No. 4557. G. That the DA can be supported by the following findings: 1. The project is consistent with the objectives, policies, general land uses and programs specified in the General Plan and the TLSP in that churches and other religious institutions are conditionally permitted within Planning Area (PA) 8, 13, and 14 of Neighborhood D. 2. The project is compatible with the uses authorized in the district in which the real property is located (PA 8, 13, and 14) in that similar and compatible uses are envisioned within proximity of the project site. 3. The project is in conformity with the public necessity, public convenience, general welfare, and good land use practices in that the agreement incorporates public benefits in the form of a new religious assembly use, to serve the need of residents in both Tustin Legacy and throughout the city; sidewalk, parkway landscape, and irrigation improvements along the project’s Warner Avenue, Veteran’s Way and John Johnson Way frontages; ongoing landscape maintenance secured by a Landscape Installation and Maintenance Agreement; annexation into CFD 18-01, Zone 4, for maintenance and essential services; increased tax revenues; and the creation and retention of jobs. 4. The project will not be detrimental to health, safety, and general welfare in that the project will provide a public/quasi-public and/or institutional usein an area designated for such uses. That, as conditioned, the construction and use of the project will not be detrimental to health, safety, and general welfare. 5. The project will not adversely affect the orderly development of property in that the existing and surrounding properties are improved or planned for residential, institutional, and park uses, and the project is orderly, well designed, and equipped with necessary infrastructure and amenities to support existing and future residents of Tustin Legacy. ________________ Ordinance No. 1581 DA 2026-0002 Page 3 ORDINANCE NO. 1581 I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is 5; that the above and foregoing Ordinance No. 1581 was duly and regularly introduced at a regular meeting of the Tustin City Council, held on September 15, 2026, and was given its second reading, passed, and adopted at a regular meeting of the City Council held on _______ ___, 2026, by the following vote: COUNCILMEMBER AYES: ___________________________________ COUNCILMEMBER NOES: ___________________________________ COUNCILMEMBER ABSTAINED: ___________________________________ COUNCILMEMBER ABSENT: ___________________________________ COUNCILMEMBER RECUSED: ___________________________________ ERICA N. YASUDA City Clerk Exhibit A: Development Agreement 2026-0002 ________________ Ordinance No. 1581 DA 2026-0002 Page 5 Recorded at request of: ) City Clerk) City of Tustin ) ) When recorded return to: ) City of Tustin ) 300 Centennial Way ) Tustin, CA 92780) Attention: City Clerk ) ) Exempt from filing fees pursuant to Government Code §6103 DEVELOPMENT AGREEMENT NO. 2026-0002 A DEVELOPMENT AGREEMENT BETWEEN CITY OF TUSTIN and MARINERS CHURCH 55136.00461\\42107206.4 4908-3018-6947, v. 1 DEVELOPMENT AGREEMENT NO. 2026-0002 This Development Agreement (hereinafter “Agreement”), effective ___________, 20___, is between the City of Tustin, California (“City”), and Mariner’s Church, a California non-profit religious corporation (“Owner”)with reference to the following facts: RECITALS WHEREAS, City is authorized to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property, under Section 65864 et seq. of the Government Code; and WHEREAS, the City and Owner made and entered into that Purchase and Sale Agreement and Joint Escrow Instructions, dated September 17, 2025 (“Purchase and Sale Agreement”) pursuant to which Owner is purchasing from City certain real property within the City. Specifically, the property consists of approximately 3.324 gross acres/144,793.44 gross square feet, located within a portion of Disposition Area 8 at Tustin Legacy, in the City of Tustin, County of Orange, State of California, commonly referred to as Assessor’s Parcel Numbers 430-481-13, 430-481-14, and 430-481-15 (altogether, the “Property”), all as more fully described in Exhibit A and depicted in Exhibit B, both of which are attached hereto and incorporated herein by reference. The Purchase and Sale Agreement is incorporated herein by reference; and WHEREAS, Owner desires to develop the Property with religious facilities comprised of a new two story building consisting of a 33,422 square foot worship center and has submitted applications to the City for a Conditional Use Permit for religious assembly and Design Review for site layout building design; and WHEREAS, proceedings have been taken in accordance with, and consistent with the rules and regulations of City, including, without limitation, Tustin Legacy Specific Plan Section 4.2.7 regarding development agreements and Tustin City Code (“TCC”) Chapter 6 of Article 9 regarding the process and procedure governing development agreements; and WHEREAS, this Agreement constitutes a current exercise of City’s police powers to provide predictability to Owner in the development approval process by vesting the permitted uses, density, intensity of use, and timing and phasing of development consistent with the Development Plan as defined in Section 1.1.9 below in exchange for Owner’s commitment to provide public benefits to City as set forth in Section 4 below; and WHEREAS, this Agreement will enable the City to support the development of underutilized properties within the City, allow for additional religious facilities, create a community gathering place, and facilitate the well-being of residents and visitors, all of which will therefore implement numerous General Plan and other public policies of the City; and WHEREAS, the best interests of the citizens of the City and the public health, safety, and welfare will be served by entering into this Agreement; and -1- 55136.00461\\42107206.4 WHEREAS, the physical effects, if any, of the Project and this Agreement have been analyzed in accordance with the California Environmental Quality Act (“CEQA”) (Pub. Res. Code section 21000 et seq.); and WHEREAS, all actions taken and approvals given by City have been duly taken or approved in accordance with all applicable legal requirements for notice, public hearings, findings, votes, and other procedural matters. COVENANTS NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: 1. DEFINITIONS AND EXHIBITS. 1.1 Definitions. The following terms when used in this Agreement shall be defined as follows: 1.1.1“Agreement” means this Development Agreement and any amendment properly approved and executed pursuant to Section 2.6. 1.1.2“City” means the City of Tustin, a California municipal corporation. 1.1.3 “City Council” means the duly elected city council of the City of Tustin. 1.1.4 “Commencement Date” means the date the Term of this Agreement commences. 1.1.5 “Development” means the improvement of the Property for the purposes of completing the structures, improvements, and facilities comprising the Project including, but not limited to: grading; the construction of infrastructure and public facilities related to the Project whether located within or outside the Property; the construction of buildings and structures; and the installation of landscaping. “Development” does not include the maintenance, repair, reconstruction, or redevelopment of any building, structure, improvement, or facility after the construction and completion thereof. 1.1.6 “Development Approvals” means all permits and other entitlements for use subject to approval or issuance by City in connection with development of the Property including, but not limited to: (a) General Plan and Specific Plans, including amendments thereto; (b) Conceptual Site Plan and Design Review and Final Site Plan and Design Review; (c) Tentative Parcel or Tract Maps and Final Parcel or Tract maps; -2- 55136.00461\\42107206.4 (d) Conditional Use Permits, Temporary Use Permits, Master Sign Plans, Minor Adjustments, Variances and Design Review; (e) Modification to Conditions of Approval; (f)Grading, Building and/or Encroachment Permits; and (g) CEQA compliance for the Project. 1.1.7 “Development Exaction” means any requirement of City in connection with or pursuant to any Land Use Regulation or Development Approval for the dedication of land, the construction of improvements or public facilities, or the payment of fees in order to lessen, offset, mitigate or compensate for the impacts of development on the environment or other public interests. 1.1.8 “Development Impact Fee” means all fees established and imposed upon the Project by the City pursuant to the Mitigation Fee Act as set forth in Government Code Section 66000 et seq. “Development Impact Fees” shall not include any fees that have not been established and imposed pursuant to the Mitigation Fee Act. 1.1.9“Development Plan” means the plan for development of the Property as set forth in Exhibit “C”. 1.1.10“Effective Date”means the date the ordinance approving and authorizing this Agreement becomes effective. 1.1.11“Land Use Regulations” means all ordinances, resolutions, codes, rules, regulations and official policies of City governing the development and use of land, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement, and construction standards and specifications applicable to the development of the Property. “Land Use Regulations” does not include any City ordinance, resolution, code, rule, regulation, or official policy, governing: (a) the conduct of businesses, professions, and occupations; (b) taxes (special or general) and assessments; (c) the control and abatement of nuisances; (d) the granting of encroachment permits and the conveyance of rights and interests that provide for the use of or the entry upon public property; (e) the exercise of the power of eminent domain. 1.1.12 “Owner” means the persons and entities listed as Owner on page 1 of this Agreement and their successors in interest to all or any part of the Property. -3- 55136.00461\\42107206.4 1.1.13 “Mortgagee” means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security-device lender, and their successors and assigns. 1.1.14 “Project” means the development of the Property contemplated by the Development Plan as such Plan may be further defined, enhanced or modified pursuant to the provisions of this Agreement. 1.1.15 “Public Benefit” refers to those benefits provided to the City and the community by Owner pursuant to Section 4 below. 1.1.16 “Reservation of Rights” means the rights and authority excepted from the assurances and rights provided to Owner under this Agreement and reserved to City under Section 3.3 of this Agreement. 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: Exhibit “A” – Legal Description of the Property. Exhibit “B” – Map and Depiction of Property and its location. Exhibit “C” – Development Plan. 2. GENERAL PROVISIONS. 2.1 Binding Effect of Agreement. The Property is hereby made subject to this Agreementand development of the Property shall be carried out in accordance with the terms of the Development Plan and this Agreement. 2.2 Ownership of Property. Owner represents and covenants that it is the owner of the fee simple title to, or has an equitable interest in, the Property or a portion thereof. 2.3 City Council Findings. The City Council finds that: 2.3.1This Agreement is consistent with the objectives, policies, general land uses and programs specified in the City’s General Plan and the Tustin Legacy Specific Plan. 2.3.2 This Agreement ensures a desirable and functional community environment, provides effective and efficient development of public facilities, infrastructure, and services appropriate for the development of the Project, and enhances effective utilization of resources within the City. 2.3.3 This Agreement provides public benefits beyond those which are necessary to mitigate the development of the Project. 2.3.4This Agreement strengthens the public planning process, encourages private participation in comprehensive planning, and reduces costs of development and government. -4- 55136.00461\\42107206.4 2.3.5 The best interests of the citizens of the City and the public health, safety, and welfare will be served by entering into this Agreement. 2.4 Term. The term of this Agreement shall commence on the date (the “Commencement Date”) that is the Effective Date, and shall continue for a period of five years thereafter, unless this term is modified or extended pursuant to the provisions of this Agreement. Thereafter, the Owner shall have no vested right under this Agreement, regardless of whether or not Owner has paid any Development Impact Fee. 2.5 Assignment. 2.5.1Right to Assign. Owner shall have the right to sell, transfer or assign the Property in whole or in part (provided that no such partial transfer shall violate the Subdivision Map Act, Government Code Section 66410 et seq.) to any person, partnership, joint venture, firm, or corporation at any time during the term of this Agreement; provided, however, that any such sale, transfer, or assignment shall include the assignment and assumption of the rights, duties,and obligations arising under or from this Agreement and be made in strict compliance with the following conditions precedent: (a) No sale, transfer, or assignment of any right or interest under this Agreement shall be made unless made together with the sale, transfer, or assignment of all or a part of the Property. (b) Concurrent with any such sale, transfer, or assignment, Owner shall notify City, in writing, of such sale, transfer, or assignment and shall provide City with an executed agreement (“Assignment and Assumption Agreement”), in a form reasonably acceptable to City, by the purchaser, transferee, or assignee and providing therein that the purchaser, transferee, or assignee expressly and unconditionally assumes: (1) all the duties, obligations, agreements, covenants, waivers of Ownerunder this Agreement, including, without limitation, the covenants not to sue and waivers contained in Sections 6.2 and 7.5 hereof, and (2) all the applicable duties, obligations, agreements, covenants, waivers of Owner under the Purchase and Sale Agreement, including, without limitation, the Restrictive Covenant. Any sale, transfer, or assignment not made in strict compliance with the foregoing conditions shall constitute a default by Owner under this Agreement. Notwithstanding the failure of any purchaser, transferee, or assignee to execute the agreement required by Paragraph (b) of this Subsection 2.5.1, the burdens of this Agreement shall be binding upon such purchaser, transferee, or assignee, but the benefits of this Agreement shall not inure to such purchaser, transferee, or assignee until and unless such agreement is executed. 2.5.2 Release of Transferring Owner. Notwithstanding any sale, transfer, or assignment, a transferring Owner shall continue to be obligated under this Agreement with respect to the transferred Property or any transferred portion thereof, unless such transferring Owner is given a release in writing by City, which release shall be provided by City upon the full satisfaction by such transferring Owner of the following conditions: -5- 55136.00461\\42107206.4 (a) Owner no longer has a legal or equitable interest in all or any part of the Property subject to the transfer. (b) Owner is not then in default under this Agreement. (c) Owner has provided City with the notice and executed agreement required under Paragraph (b) of Subsection 2.5.1 above. (d) The purchaser, transferee, or assignee provides City with security equivalent to any security previously provided by Ownerto secure performance of its obligations hereunder. 2.5.3Subsequent Assignment. Any subsequent sale, transfer, or assignment after an initial sale, transfer, or assignment shall be made only in accordance with and subject to the terms and conditions of this Section 2.5. 2.5.4Utilities. The Project shall be connected to all utilities necessary to provide adequate water, sewer, gas, electric, and other utility service to the Project, prior to the issuance of a certificate of occupancy for any portion of the Project. 2.6 Amendment or Cancellation of Agreement. This Agreement may be amended or canceled in whole or in part only by written consent of all parties in the manner provided for in Government Code Section 65868. This provision shall not limit any remedy of Cityor Owner as provided by this Agreement. The parties may mutually consent to adopting “Minor Changes” through their signing of an “operating memorandum” reflecting Minor Changes, which shall mean changes to the Project that are consistent with the Development Approvals, which do not result in a change in use, an increase in density or intensity of use, significant new or increased environmental impacts that cannot be mitigated, or violations of any applicable health and safety regulations in effect on the Effective Date. Neither the Minor Changes nor any Operating Memorandum shall require public notice or hearing. The City Attorney and City Manager shall be authorized to determine whether proposed modifications and refinements are “Minor Changes” subject to this Section 2.6 or more significant changes requiring amendment of this Agreement. The City Manager may execute any operating memoranda without City Council action. 2.7 Termination. This Agreement shall be deemed terminated and of no further effect upon the earliest to occur of the following events: (a) Expiration of the stated term of this Agreement as set forth in Section 2.4. (b) Entry of a final judgment setting aside, voiding, or annulling the adoption of the ordinance approving this Agreement. (c) Adoption of a referendum measure overriding or repealing the ordinance approving this Agreement. -6- 55136.00461\\42107206.4 (d) Completion of the Project in accordance with the terms of this Agreement including issuance of all required occupancy permits and acceptance by City or applicable public agency of all required dedications. The foregoing notwithstanding, this Agreement shall not terminate if the Owner has filed an application for amendment of this Agreement (and any associated Development Approvals) prior to completion of the Project. If the Owner has filed such application, this Agreement shall not terminate until the earliest of: (1) the City approves the amendment and the Project, as amended, is completed; (2) the City denies the amendment application; or (3) the Owner formally withdraws the amendment application. Termination of this Agreement shall not constitute termination of any other land use entitlements approved for the Property. Upon the termination of this Agreement, no party shall have any further right or obligation hereunder except with respect to any obligation to have been performed prior to such termination or with respect to any default in the performance of the provisions of this Agreement that has occurred prior to such termination or with respect to any obligations that are specifically set forth as surviving this Agreement. 2.8 Notices. All notices, demands, and correspondence required or permitted by this Agreement shall be in writing and delivered in person or mailed by first class or certified mail, postage prepaid, return receipt requested, addressed as follows: If to City: City of Tustin 300 Centennial Way Tustin, CA 92780 Attention: City Manager Copy to: Deputy City Manager – Real Property City of Tustin 300 Centennial Way Tustin, CA 92780 Attention: Deputy City Manager – Real Property Email: DCM-RP@tustinca.org City Attorney Woodruff & Smart, APC 555 Anton Blvd., Suite 1200 Costa Mesa, CA 92626 Attention: David E. Kendig, Esq. Email: dkendig@woodruff.law -7- 55136.00461\\42107206.4 Best Best & Krieger LLP 18101 Von Karman Ave. Irvine, CA 92612 Attention: HongDao Nguyen Email: hongdao.nguyen@bbklaw.com If to Owner: Mariners Church 5001 Newport Coast Drive Irvine, CA 92603 Attention: Earl Roberson Email: eroberson@marinerschurch.org Copy to: Allen Matkins Leck Gamble Mallory & Natsis LLP th 2010 Main Street, 8 Floor Irvine, CA 92614 Attention: Gary S. McKitterick, Esq. Phone: (949) 851-5432 Email: gmckitterick@allenmatkins.com Notice shall be deemed given upon personal delivery or, if mailed, two (2) business days following deposit in the United States mail. City or Owner may change its address by giving notice in writing to the other at the addresses listed above. Thereafter, notices, demands, and correspondence shall be addressed and transmitted to the new address. 3. DEVELOPMENT OF THE PROPERTY. 3.1 Rights to Develop. Subject to the terms of this Agreement including the Reservation of Rights, Owner shall have a vested right to develop the Property in accordance with, and to the extent of, this Agreement. Except as expressly provided otherwise herein, the Project shall remain subject to all Land Use Regulations and Development Approvals in effect on the Effective Date that are required to complete the Project as contemplated by the Development Plan. Except as otherwise provided in this Agreement, the permitted uses of the Property, the density and intensity of use, the maximum height and size of proposed buildings, and provisions for reservation and dedication of land for public purposes shall be those set forth in the Land Use Regulations and Development Approvals in effect on the Effective Date or, if consented to by Owner, thosesubsequently adoptedor amended. Owner shall comply with all mitigation measures required to be undertaken pursuant to any document prepared in compliance with the California Environmental Quality Act with respect to the Project. 3.2 Effect of Agreement on Land Use Regulations. Except as otherwise provided under the terms of this Agreement including the Reservation of Rights, the rules, regulations and official policies governing permitted uses of the Property, the density and intensity of use of the Property, -8- 55136.00461\\42107206.4 the maximum height and size of proposed buildings, and the design, improvement, and construction standards and specifications applicable to development of the Property shall be the Land Use Regulations and Development Approvals in effect on the Effective Date of this Agreement or any amendments thereto. In connection with any subsequently imposed Development Approvals and except as specifically provided otherwise herein, City may exercise its discretion in accordance with the Land Use Regulations then in effect, as provided by this Agreement, including, but not limited to, the Reservation of Rights. City shall accept for processing, review and action all applications for subsequent development approvals, and such applications shall be processed in the same manner and the City shall exercise its discretion, when required or authorized to do so, to the same extent it would otherwise be entitled in the absence of this Agreement. 3.3 Reservation of Rights. 3.3.1Limitations, Reservations and Exceptions. Notwithstanding any other provision of this Agreement, the following regulations shall apply to the development of the Property: (a) Processing fees and charges of every kind and nature imposed by City to cover the estimated actual costs to Cityof processing applications for Development Approvals or for monitoring compliance with any Development Approvals granted or issued. (b) Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals,and any other matter of procedure. (c) The requirements and obligations of the Purchase and Sale Agreement. (d) Regulations, policies, and rules governing engineering and construction standards and specifications applicable to public and private improvements, including, without limitation, all uniform codes adopted by the City and any local amendments to those codes adopted by the City, including, without limitation, the City’s Building Code, Plumbing Code, Mechanical Code, Electrical Code, and Grading Ordinance. (e) Regulations imposing Development Exactions unless otherwise provided herein; provided, however, that no such subsequently adopted Development Exaction shall be applicable to development of the Property unless such Development Exaction is applied uniformly to development, either throughout the City or within a defined area of benefit which includes the Property. No such subsequently adopted Development Exaction shall apply if its application to the Property would physically prevent development of the Property for the uses and to the density or intensity of development set forth in the Development Plan. (f) Regulations that may be in material conflict with this Agreement but that are reasonably necessary to protect the users of the project or the immediate community from a condition perilous to their health or safety. To the extent possible, any such regulations shall be applied and construed so as to provide Owner with the rights and assurances provided under this Agreement. -9- 55136.00461\\42107206.4 (g) Regulations that are not in material conflict with this Agreement or the Development Plan. Any regulation, whether adopted by initiative or otherwise, limiting the rate or timing of development of the Property shall be deemed to materially conflict with the Development Plan and shall therefore not be applicable to the development of the Property. (h) Regulations that are in material conflict with the Development Plan; provided Owner has given written consent to the application of such regulations to development of that Property in which the Owner has a legal or equitable interest. (i) Regulations that impose, levy, alter or amend fees, charges, or Land Use Regulations relating to consumers or end users, including, without limitation, trash can placement, service charges, and limitations on vehicle parking. (j) Regulations of other public agencies, including but not limited to Development Impact Fees, adopted or imposed by such other public agencies, although collected by City. 3.3.2 Subsequent Development Approvals. This Agreement shall not prevent City, in acting on subsequent development approvals and to the same extent it would otherwise be authorized to do so absent this Agreement, from applying subsequently adopted or amended Land Use Regulations that do not materially conflict with this Agreement, except as specified in Section 3.2. 3.3.3Modification or Suspension by State or Federal Law. In the event that State, County or Federal laws or regulations, enacted after the Effective Date of this Agreement, prevent or preclude compliance with one or more of the provisions of this Agreement, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations; provided, however, that this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such remaining provisions impractical to enforce. 3.3.4Intent. The parties acknowledge and agree that City is restricted in its authority to limit certain aspects of its police power by contract and that the foregoing limitations, reservations and exceptions are intended to reserve to City all of its police power that cannot be or are not expressly so limited. This Agreement shall be construed, contrary to its stated terms if necessary, to reserve to City all such power and authority that cannot be,or is not by this Agreement's express terms,so restricted. 3.4 Regulation by Other Public Agencies. It is acknowledged by the parties that other public agencies not within the control of City may possess authority to regulate aspects of the development of the Property separately from or jointly with City and this Agreement does not limit the authority of such other public agencies. 3.5 Timing of Development. Because the California Supreme Court held in Pardee Construction Co. v. City of Camarillo, 37 Cal. 3d 465 (1984), that the failure of the parties in that case to provide for the timing of development resulted in a later-adopted initiative restricting the timing of development to prevail over the parties’ agreement, it is the specific intent of the parties -10- 55136.00461\\42107206.4 hereto to provide for the timing of the Project in this Agreement. To do so, the parties acknowledge and provide that Owner shall have the right, but not the obligation, to complete the Project in such order, at such rate, at such times during the term of this Agreement, and in as many development phases and sub-phases as Owner deems appropriate in its sole subjective business judgment. 3.6 Conditions, Covenants and Restrictions. Owner shall have the ability to reserve and record such covenants, conditions, and restrictions (CC&Rs) against the Property as Owner deems appropriate, in its sole and absolute discretion. Such CC&Rs may not conflict with this Agreement, the Purchase and Sale Agreement, the Tustin City Code, the Tustin Legacy Specific Plan, or the General Plan. 3.7 Amendments. Owner may apply to City for permits or approvals necessary to modify or amend the Projectspecified in the DevelopmentApprovals. This Agreement does not constitute a promise or commitment by City to approve any such permit or approval, or to approve the same with or without any particular requirements or conditions, and City’s discretion with respect to such matters shall be the same as it would be in the absence of this Agreement. 4. PUBLIC BENEFITS. 4.1 Public Benefits. 4.1.1General. The Owner will contribute activation of the Property as a gathering place for community members who participate in their faith community. Owner will also provide broader public benefits through community outreach activities including, without limitation, providing food for the needy, youth mentoring, counseling, and spiritual, mental, and emotional support for those in recovery, children, youth, parents, singles, men, and women. The Project will also serve to revitalize an undeveloped siteand will provide off-site and on-site infrastructure upgrades. Moreover, the Project will implement numerous City planning and economic development policies which benefit the health and fiscal welfare of the City and its residents. 4.1.2 Community Facilities District. The City has previously established Community Facilities District 18-01 with a Tax B component to pay for various essential services at Tustin Legacy (“District”). As a condition to the Close of Escrow and as further set forth in the Purchase and Sale Agreement, the City, by action of the City Council, annexed the Property into the District as CFD 18-01 Zone 4. Owner agreed to the imposition of the special tax lien of CFD 18-01 Zone 4, the proceeds of which shall be used by the City to fund a portion of City essential services. The Property shall be obligated to pay the City an annual fee of $0.50 per square foot of permitted building square footage actually constructed on the Property (“CFD Fee”), subject to a 2% annual escalation fee, and continuing in perpetuity, in accordance with the Purchase and Sale Agreement. 4.1.3Project Fair Share Contribution. In accordance with the terms of the Purchase and Sale Agreement, Owner shall pay to City a Project Fair Share Contribution relating to the Tustin Legacy Backbone Infrastructure Program of One Million Six Hundred Forty Thousand Two Hundred Seventeen Dollars and Eighty Three Cents ($1,640,217.83) which is equal to Four Hundred Ninety Three Thousand Four Hundred Forty Seven Dollars ($493,447) per acre -11- 55136.00461\\42107206.4 of land conveyed to Owner by the City pursuant to the Purchase and Sale Agreement(“Project Fair Share Contribution”). The Fair Share Contribution constitutes the full, complete and final satisfaction of the project fair share contribution for the Property and Project under the Tustin Legacy Backbone Infrastructure Program and no further payment shall be owed or payable thereunder with respect thereto. 4.1.4 Development Impact Fees. Owner shall pay all Development Impact Fees applicable to the Project at the time such amounts are due, but no later than prior to the issuance of building permits. The City retains discretion to prospectively revise such fees as the City deems appropriate and to adopt new Development Impact Fees from time to time, in its sole discretion. 4.1.5Prepayment. In no event shall the prepayment of any Development Impact Fees required hereunder establish a vested right on the part of Owneror any other owner of the Property or any person or entity with an interest therein to develop the Project or the Property following the expiration, cancellation or termination of this Agreement. Following the expiration, cancellation or termination of this Agreement, all Development Impact Fees then in effect shall be applicable to the Project and Property notwithstanding any provision of this Agreement and notwithstanding the prepayment of Development Impact Fees, any increase or amendment of any Development Impact Fee, or any combination thereof. 4.2 Dedication of On-Site Easements and Rights of Way. Owner shall dedicate to City all on-site rights of way and easements deemed necessary for public improvements, as specified in the Development Approvals. 4.3 Landscape and Maintenance Agreement. In accordance with the terms of the Purchase and Sale Agreement, a separate landscape installation and maintenance agreement (“Landscape Installation and Maintenance Agreement”) has been negotiated and finalized. 4.4 Timing of Construction of Off-Site Infrastructure. Approval of any building permits on the Property shall be conditioned upon City's determination, in its sole discretion, that sufficient progress is being made on construction of on-site and off-site infrastructure serving development of Owner's Property. 5. REVIEW FOR COMPLIANCE. 5.1 Periodic Review. Pursuant to, and in accordance with Government Code Section 65865.1 and TCC Chapter 6 of Article 9, City shall review the good faith compliance of Owner with the terms of this Agreement at least once during every twelve (12) month period of the Term. 6. DEFAULT AND REMEDIES. 6.1 Remedies in General. It is acknowledged by the parties that City would not have entered into this Agreement if it were to be liable in damages under this Agreement, or with respect to this Agreement or the application thereof. In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except that City shall not be liable in damages to Owner, or to any successor in interest of Owner, or to any other person, and Owner covenants not to sue for damages or claim any damages: -12- 55136.00461\\42107206.4 (a) For any breach of this Agreement or for any cause of action that arises out of this Agreement; or (b) For the taking, impairment or restriction of any right or interest conveyed or provided under or pursuant to this Agreement; or (c) Arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement. 6.2 Release. Except for non-monetary remedies, Owner, for itself, its successors and assignees, hereby releases City, its officers, agents and employees from any and all claims, demands, actions, or suits of any kind or nature arising out of any liability, known or unknown, present or future, including, but not limited to, any claim or liability, based or asserted, pursuant to Article I, Section 19 of the California Constitution, the Fifth and Fourteenth Amendments to the United States Constitution, or any other law or ordinance which seeks to impose any other liability or damage, whatsoever, upon City because it entered into this Agreement or because of the terms of this Agreement. Owner hereby acknowledges that it has read and is familiar with the provisions of California Civil Code Section 1542, which is set forth below: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.” By initialing below, Ownerhereby waives the provisions of Section 1542 in connection with the matters that are the subject of the foregoing waivers and releases. _______________ Owner’s Initials 6.3 Termination or Modification of Agreement for Default of Owner. City may terminate or modify this Agreement for any failure of Owner to perform any material duty or obligation of Owner under this Agreement, or to comply in good faith with the terms of this Agreement (hereinafter referred to as "default"); provided, however, Citymay terminate or modify this Agreement pursuant to this Section only after providing written notice to Owner of default setting forth the nature of the default and the actions, if any, required by Owner to cure such default and, where the default can be cured, Owner has failed to take such actions and cure such default within sixty (60)days after the effective date of such notice or, in the event that such default cannot be cured within such sixty (60)day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default. 6.4 Termination of Agreement for Default of City. Owner may terminate this Agreement only in the event of a default by City in the performance of a material term of this -13- 55136.00461\\42107206.4 Agreement and only after providing written notice to Cityof default setting forth the nature of the default and the actions, if any, required by City to cure such default and, where the default can be cured, Cityhas failed to take such actions and cure such default within sixty (60) days after the effective date of such notice or, in the event that such default cannot be cured within such sixty (60) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default. Owner shall have no right to monetary damages from City for any reason except for fraud, gross negligence, or willful misconduct. 7. LITIGATION. 7.1 Third Party Litigation Concerning Agreement. Owner shall, at Owner’s expense, defend, indemnify, and hold City, its agents, officials, officers, and employees harmless from any claim, action, or proceeding against the City, its agents, officials, officers, and employees to attack, set aside, void, or annul the approval of this Agreement, or the approval of any Development Approvals granted pursuant to this Agreement. City shall promptly notify Owner of any such claim, action, or proceeding, and City shall cooperate in the defense of any such claim, action, or proceeding. 7.2 Indemnity.In addition to the provisions of Section 7.1, Owner shall hold City, its agents, officials, officers, and employees free and harmless from any liability whatsoever, based or alleged upon any act or omission of Owner, its officers, agents, employees, subcontractors and independent contractors for property damage, bodily injury or death (Owner’s employees included) or any other element of damage of any kind or nature, relating to or arising out from Development of the Property, except for claims for damages arising through active negligence or willful misconduct of City. Owner shall indemnify and defend at Owner’s expense, including attorneys’ fees, City, its officials, officers, employees from any liability whatsoever arising from the alleged negligence or willful misconduct of Owner, its officers, agents, employees, subcontracts, and independent contractors in connection with development of the Project, this Agreement or the Development Approvals. City, may in its discretion, participate in the defense of such legal claim, action, or proceeding. 7.3 Environmental Assurances. Owner shall indemnify and hold City, its officials, officers, agents, and employees free and harmless from any liability, based or asserted, upon any act or omission of Owner, its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns, and independent contractors for any violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Property, including, but not limited to, soil and groundwater conditions, and Ownershall defend, at its expense, including attorneys' fees, City, its officers, agents and employees in any action based or asserted upon any such alleged act or omission. City may in its discretion participate in the defense of any such action. 7.4 Reservation of Rights. With respect to Sections7.1, 7.2 and 7.3herein, City reserves the right to either (1) approve the attorney(s) that the indemnifying party selects, hires or otherwise engages to defend the indemnified party hereunder, which approval shall not be unreasonably withheld, or (2) conduct its own defense; provided, however, that the indemnifying -14- 55136.00461\\42107206.4 party shall reimburse the indemnified party forthwith for any and all reasonable expenses incurred for such defense, including attorneys' fees, upon billing and accounting therefor. 7.5 Challenge to Existing Land Use Approvals. By accepting the benefits of this Agreement, Owner, on behalf of itself and its successors in interest, hereby expressly agrees and covenants not to sue or otherwise challenge any land use approval affecting the Property and in effect as of the Effective Date. Such agreement and covenant includes, without limitation, the covenant against any direct suit by Owneror its successor in interest, or any participation, encouragement or involvement whatsoever that is adverse to City by Owner or its successor in interest, other than as part of required response to lawful orders of a court or other body of competent jurisdiction. Owner hereby expressly waives, on behalf of itself and its successors in interest, any claim or challenge to any land use approval affecting the Property and in effect as of the Effective Date. In the event of any breach of the covenant or waiver contained herein, City shall, in addition to any other remedies provided for at law or in equity, be entitled to: (a) impose and recover (at any time, including after sale to a member of the public or other ultimate user) from the party breaching such covenant or waiver, the full amount of Development Impact Fees that the breaching party would have been required to pay in the absence of this Development Agreement; and (b) impose any subsequently adopted land use regulation on those land use approvals for which the breaching party had not, as of the time of such breach, obtained a building permit. Owner hereby acknowledges that it has read and is familiar with the provisions of California Civil Code Section 1542, which is set forth below: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” By initialing below, Owner hereby waives the provisions of Section 1542 in connection with the matters that are the subject of the foregoing waivers and releases. _______________ Owner’s Initials 7.6 Survival. The provisions of Sections 6.1, 6.2 and 7.1 through 7.5, inclusive, shall survive the termination of this Agreement. 8. MORTGAGEE PROTECTION. The parties hereto agree that this Agreement shall not prevent or limit Owner, in any manner, at Owner's sole discretion, from encumbering the Property or any portion thereof or any -15- 55136.00461\\42107206.4 improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. City acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with Owner and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. City will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any Mortgagee of the Property shall be entitled to the following rights and privileges: (a) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law. (b) The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, which Mortgagee, has submitted a request in writing to the City in the manner specified herein for giving notices, shall be entitled to receive written notification from City of any default by Owner in the performance of Owner's obligations under this Agreement. (c) If City timely receives a request from a mortgagee requesting a copy of any notice of default given to Owner under the terms of this Agreement, City shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to Owner. The Mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. (d) Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of Owner's obligations or other affirmative covenants of Owner hereunder, or to guarantee such performance; provided, however, that to the extent that any covenant to be performed by Owner is a condition precedent to the performance of a covenant by City, the performance thereof shall continue to be a condition precedent to City's performance hereunder, and further provided that any sale, transfer or assignment by any Mortgagee in possession shall be subject to the provisions of Section 2.5 of this Agreement. 9. MISCELLANEOUS PROVISIONS. 9.1 Recordation of Agreement. This Agreement and any amendment or cancellation thereof shall be recorded with the Orange County Recorder by the Clerk of the City Council within ten (10) days after the City enters into the Agreement, in accordance with Section 65868.5 of the Government Code. If the parties to this Agreement or their successors in interest amend or cancel this Agreement, or if the City terminates or modifies this Agreement as provided herein for failure of the Owner to comply in good faith with the terms and conditions of this Agreement, the City Clerk shall have notice of such action recorded with the Orange County Recorder. -16- 55136.00461\\42107206.4 9.2 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings, or ancillary covenants, undertakings or agreements that are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 9.3 Severability. If any term, provision, covenant, or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this Agreement. Notwithstanding the foregoing, the provision of the Public Benefits set forth in Section 4of this Agreement are essential elements of this Agreement and City would not have entered into this Agreement but for such provisions, and therefore in the event such provisions are determined to be invalid, void, or unenforceable, this entire Agreement shall be null and void and of no force and effect whatsoever. 9.4 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof. 9.5 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 9.6 Singular and Plural. As used herein, the singular of any word includes the plural. 9.7 Joint and Several Obligations. If at any time during the Term of this Agreement the Property is owned, in whole or in part, by more than one Owner, all obligations of such Owners under this Agreement shall be joint and several, and the default of any such Ownershall be the default of all such Owners. Notwithstanding the foregoing, no Owner of a single lot that has been finally subdivided and sold to such Owner as a member of the general public or otherwise as an ultimate user shall have any obligation under this Agreement except as expressly provided for herein. 9.8 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 9.9 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter. -17- 55136.00461\\42107206.4 9.10 No Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement. 9.11 Force Majeure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the party's control, (including the party's employment force), government regulations, court actions (such as restraining orders or injunctions), or other causes beyond the party's control. If any such events shall occur, the Term of this Agreement and the time for performance by either party of any of its obligations hereunder may be extended by the written agreement of the parties for the period of time that such events prevented such performance, provided that the Term of this Agreement shall not be extended under any circumstances for more than five (5) additional years. 9.12 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party. 9.13 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and (c) is binding upon each party and each successor in interest during ownership of the Property or any portion thereof. 9.14 Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. 9.15 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the Countyof Orange, State of California, and the parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 9.16 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the development of the Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between City and Owner is that of a government entity regulating the development of private property and the owner of such property. -18- 55136.00461\\42107206.4 9.17 Further Actions and Instruments. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either party at any time, the other party shall promptly execute and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. 9.18 Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by City of its power of eminent domain. 9.19 Agent for Service of Process. In the event Owner is not a resident of the State of California or it is an association, partnership or joint venture without a member, partner or joint venturer resident of the State of California, or it is a foreign corporation, then in any such event, Owner shall file with the City Manager, upon its execution of this Agreement, a designation of a natural person residing in the State of California, giving his or her name, residence and business addresses, as its agent for the purpose of service of process in any court action arising out of or based upon this Agreement, and the delivery to such agent of a copy of any process in any such action shall constitute valid service upon Owner. If for any reason service of such process upon such agent is not feasible, then in such event Owner may be personally served with such process and such service shall constitute valid service upon Owner. Owner is amenable to the process so served, submits to the jurisdiction of the Court so obtained and waives any and all objections and protests thereto. 9.20 Authority to Execute. The person or persons executing this Agreement on behalf of Owner warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership or business entity and warrants and represents that he or she/they has/have the authority to bind Owner to the performance of its obligations hereunder. (Signatures on following page) -19- 55136.00461\\42107206.4 CALIFORNIA ALL PURPOSE ACKNOWLEDGEMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of _________________________________ On _________________ before me, ________________________________________________, Date (Insert Name and Title of the Officer) personally appeared ___________________________________________________________ Name(s) of Signer(s) ____________________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Place Notary Seal and/or Stamp above Signature: ______________________________________ Signature of Notary Public -21- 55136.00461\\42107206.4 EXHIBIT “A” (Legal Description of the Property) Exhibit A 55136.00461\\42107206.4 EXHIBIT “B” (Map and Depiction of the Property) Exhibit B 55136.00461\\42107206.4 EXHIBIT “C” (Development Plan) Specific Plan No. SP-1 Design Review No. 2025-0020 Conceptual Site Plan and Design Review No. \[N/A\] Zoning Ordinance Amendment No. \[N/A\] Conditional Use Permit No. 2025-0022 55136.00461\\42107206.4 ACTION MINUTES COUNCIL CHAMBER & VIDEO CONFERENCE TUSTIN PLANNING COMMISSION MEETING AUGUST 25, 2026 CALL TO ORDER: 6:00 p.m. PLEDGE OF ALLEGIANCE: Commissioner Gullo ROLL CALL: Let the record reflect all Commissioners are present, except Chair Pro Tem Kozak, who is absent due to illness. PUBLIC INPUT: Hurtado confirmed no public input was received. CONSENT CALENDAR: 1.APPROVAL OFMEETING MINUTES – AUGUST 11, 2026 RECOMMENDATION: That the Planning Commission approve the Minutes of the August 11, 2026 Planning Commission meeting, as provided. Hurtado confirmed no public input was received regarding Item No. 1. Mo tion: It was moved by Gullo, seconded by Douthit, to approve the Consent Calendar, as provided. Roll Call Vote: Hurtado Motion carried: 4-0-1 PUBLIC HEARING: 2.DESIGN REVIEW (DR) 2025-0009, SUBDIVISION (SUB) 2025-0010/TENTATIVE PARCEL MAP (TPM) 2026-108 APPLICANT: Jocelyn Wan HPA, Inc. 18831 Bardeen Avenue, Suite 100 Action Minutes – Planning Commission Meeting – August 25, 2026 – Page 1 Irvine, CA 92612 PROPERTY OWNER:EBS Realty Partners Attn: Michael McKenna 18881 Von Karman Avenue, Suite 1450 Irvine, CA 92612 LOCATION:2441 Michelle Drive APN: 432-471-16 and 432-391-59 REQUESTS: 1. DR 2025-0009 for site layout and building design of two new industrial warehouse buildings consisting of a total of 177,696 square feet. 2.SUB 2025-0010/TPM 2026-108 to subdivide the site into two numbered parcels and one lettered lot. ENVIRONMENTAL: This project is consistent with the City’s previously certified General Plan Environmental Impact Report (State Clearinghouse No. 92101104) and does not require additional environmental review in accordance with Section 15183 of the California Environmental Quality Act (CEQA). A Streamline Exemption analysis was prepared pursuant to CEQA Guidelines Section 15183,which evaluated the project against the previously certified environmental document. RECOMMENDATION: Recommend the Planning Commission: 1.Adopt Resolution No. 4555 approving the following: • DR 2025-0009 for site layout and building design of two new industrial warehouse buildings consisting of approximately 177,696 square feet on an 8.3-acre site; and • SUB 2025-0010/TPM 2026-108 to subdivide the site into two numbered parcels and one lettered lot. Presentation provided by Erica H. Demkowicz, AICP, Senior Planner. Commissioner Higuchi inquired about the proposed fencing along Interstate 5, noting that a chain-link fence currently appears to exist adjacent to the site, possibly associated with Action Minutes – Planning Commission Meeting – August 25, 2026 – Page 2 OCTA property or an easement. He sought clarification on whether a chain-link fence would be installed as part of the proposed project. In response, Demkowicz stated the existing fence type is chain link; however, the proposed project includes an 8-foot wrought iron fence surrounding the perimeter of the site. Commissioner Douthit referenced the Spirit and Truth Church project approved by the Commission and recalled that part of the church’s agreement with Kaiser Permanente required construction of a sidewalk connection between the two properties. Referring to the project renderings, he asked whether the proposed sidewalk improvements were being coordinated with the church or whether they would satisfy that requirement. Barragan explained that a condition of approval for the Spirit and Truth Church project, approved by the Commission on August 11, 2026, requires completion of the sidewalk improvements associated with the proposed project before the church may utilize its joint- use parking agreement with KaiserPermanente. Commissioner Gullo disclosed email correspondence with City staff regarding traffic concerns. Specifically, she had expressed concern with traffic queuing along Walnut Avenue at Tustin Ranch Road, including vehicles backing up past Franklin Avenue because they needed to turn north at Tustin Ranch Roadto access Interstate 5. She noted that staff responded that the City’s Traffic Engineer has not received any complaints regarding the Walnut Avenue and Tustin Ranch Road intersection. In response, Eastman stated that staff is not currently aware of any specific traffic issues at the intersection but recognizes that congestion occurs at numerous intersections throughout the City during peak travel periods. He noted that staff would review conditions at Walnut Avenue and Tustin Ranch Road to determine whether recurring congestion exists. Eastman further explained that the project site is currently developed with an industrial building, and that the proposed net increase in industrial floor area is relatively modest, approximately 50,000 square feet. Given the site's industrial zoning and intended use, staff does not anticipate any traffic impacts resulting from the project. Michael McKenna, applicant, expressed his gratitude to City staff with regards to the application process. Chair Mason asked the applicant whether any outreach had been conducted with neighboring residents or the surrounding community. Mr. McKenna, applicant, stated that public hearing notices were mailed to surrounding property owners and residents. No comments or concerns were received from residents along Tustin Ranch Road. He noted that while the project site appears to be in close proximity to those residences, a significant grade separation exists between the site and the Action Minutes – Planning Commission Meeting – August 25, 2026 – Page 3 homes. As a result, he does not anticipate any substantial impacts to the adjacent neighborhood. Commissioner Douthit asked, if the project was approved, how quickly tenants could be secured and when construction of the new buildings would begin. In response, Mr. McKennastated that market conditions have changed significantly in recent years due to inflation and impactsfrom the COVID epidemic. Despite these challenges, the applicant has already begun marketing the project and has received interest from several prospective businesses and industrial users. He estimated that the project would be constructed in phases over approximately 10 to 12 months. He further noted that preparation of construction documents and the plan check process would take approximately six months. Hurtado confirmed no public input was received regarding Item No. 2. Commissioner Higuchi’s closing comments included commending staff for using the CEQA Section 15183 exemption and expressed appreciation for the project’s architectural elevations along Interstate 5. Commissioner Gullo’s closing comments included support for the project and encouragement to continue monitoring traffic conditions in the area. She noted concerns regarding bicycle circulation near the Irvine bicycle trail, which currently terminates at the Tustin border near Myford Road. She described the project as well planned, beneficial to the City's industrial and employment base, and appropriately located. Motion: It was moved by Douthit, seconded by Gullo, to approve Item no. 2, as provided. Roll Call Vote: Hurtado Motion carried:4-0-1 3.DEVELOPMENT AGREEMENT (DA) 2026-0002, CONDITIONAL USE PERMIT (CUP) 2025-0022, DESIGN REVIEW (DR) 2025-0020, FOR THE DEVELOPMENT AND OPERATION OF A 33,422 SQUARE FOOT RELIGIOUS ASSEMBLY USE WITHIN NEIGHBORHOOD D OF THE TUSTIN LEGACY SPECIFIC PLAN(TLSP) APPLICANT: Blake Crane, on behalf of Mariners Church 5001 Newport Coast Drive Irvine, CA 92603 PROPERTY Action Minutes – Planning Commission Meeting – August 25, 2026 – Page 4 OWNER: City of Tustin 300 Centennial Way Tustin, CA 92780 LOCATION: Northeast corner of Warner Avenue and John Johnson Way (vacant lot) REQUESTS: To establish a 33,422 square foot, two-story religious assembly building and use with 276 on-site parking spaces and other site improvements on a 3.32-acre site. The project includes the following requests: DR 2025-0020 for the design and site layout. CUP 2025-0022 to establish and operate an assembly use. DA 2026-0002 to facilitate the development and conveyance of the 3.32-acre City-owned project site. The project also includes GPC 2026-0003 to determine that the location, purpose, and extent of the proposed disposition of the 3.32-acre City-owned site (APN 430- 481-015) within Neighborhood D South of the TLSP, for the development of the proposed project, is in conformance with the General Plan and the TLSP. ENVIRONMENTAL: An addendum to the TLSP 2025 Supplemental Environmental Impact Report (SEIR) has been prepared pursuant to California Environmental Quality Act (CEQA) Guidelines Sections 15164, 15162, and 15168. The addendum concludes that none of the conditions requiring preparation of a subsequent or supplemental Environmental Impact Report have occurred, therefore further environmental documentation is not required. RECOMMENDATION: 1. Recommend the Planning Commission adopt Resolution No. 4556, determining that the location, purpose, and extent of the proposed disposition of the 3.32-acre site within Neighborhood D of the TLSP for the development of the proposed project is in conformance with the City’s adopted General Plan. 2. Recommendthe Planning Commission adopt Resolution No. 4557, for the following: Action Minutes – Planning Commission Meeting – August 25, 2026 – Page 5 a.Approval of DR 2025-0020 for the design and site layout of the proposed project; b.Approval of CUP 2025-0022 to establish and operate a religious assembly use within a 33,422 square foot building; c.Recommend that the City Council adopt Ordinance No. 1581, approving DA 2026-0002 to facilitate the development and conveyance of the 3.32-acre City-owned site; and d.Adopt an Addendum to the TLSP 2025 SEIR, finding that, pursuant to CEQA Guidelines Sections 15164, 15162, and 15168, the proposed project is within the scope of the TLSP2025 SEIRand that no subsequent or SEIRis required. Presentation provided by Erica H. Demkowicz, AICP, Senior Planner. The applicant, Blake Crane, spoke on behalf of Mariners Church and provided background information regarding the church and its history. He introduced several church representatives in attendance and expressed appreciation to City staff for the opportunity to present the project. Commissioner Higuchi referred to the site plan and asked for clarification regarding the proposed parking supply, specifically whether the 276 parking spaces identified were exclusively on-site. He also questioned references to street parking shown on an earlier site plan and asked whether the basins surrounding the project site were intended for water quality treatment. Additionally, he noted that colored building elevations were not included in the Planning Commission packet. In response, Demkowicz confirmed that the 276 parking spaces are all located on-site. She explained that the specific site plan referenced by Commissioner Higuchi reflected an earlier iteration of the project and not the current proposal. She further confirmed that the basin is forwater quality management. Demkowicz noted that colored elevations were included in the PowerPoint presentationbutappear to not have made it intothe meeting packet. Commissioner Douthit asked about future development plans on the opposite side of Warner Avenue and raised questions regarding pedestrian access between the proposed church site and the Linear Park pedestrian bridge crossing Warner Avenue. He emphasized the importance of ensuring a safe connection between the park and the church. Douthit also asked whether residents within the nearby Irvine Company residential development had received public hearing notices,and whether any responses had been received. Action Minutes – Planning Commission Meeting – August 25, 2026 – Page 6 Demkowicz stated that the residential tract referenced by Commissioner Douthit was included in the public hearing notice mailing and that no comments were received. Eastman explained that the area north of Warner Avenue is designated for future residential and mixed-use development and is currently undeveloped. He noted that portions of the area remain under Navy ownership and have not yet been released. Eastman further explained that a pedestrian bridge is planned over Warner Avenue as part of the Linear Park, which willcontinue northeast of the project site. While detailed pedestrian circulation plans were not available at this time, he indicated that pedestrians would likely utilize sidewalks and existing street crossings to access the church site. Chair Mason asked about the anticipated occupancy of the facility and the typical weekly activities planned by the church. Demkowicz referenced the applicant's Letter of Operations and explained that the church anticipates holding two Sunday services, with peak attendance occurring between approximately 8:30 a.m. and 1:00 p.m. Weekday small-group meetings are proposed between 6:00 p.m. and 9:00 p.m. Attendance is estimated at up to 600 individuals on Sundays and approximately 100 individuals during weekday activities. She clarified that these figures represent anticipated attendance rather than maximum building occupancy under the Building Code. Chair Mason also asked whether the traffic analysis accounted for larger gatherings and whether parking is permitted on Warner Avenue. Eastman stated that the traffic analysis evaluated the proposed use as presented. He noted that church-related traffic would primarily occur during off-peak Sunday hours when overall traffic volumes are lower. He further stated that parking is not permitted on Warner Avenue. Commissioner Higuchi asked about the limited office space and kitchen area shown on the site plan. Mr. Crane explained that the church has adopted a hybrid operating model, with staff spending more time in the community rather than working from traditional office spaces. As a result, the project minimizes administrative space and prioritizes areas that directly serve the community. He noted that the kitchen area is intended primarily for coffee service. Chair Mason made favorable comments regarding the proposed project. Hurtado confirmed no public input was received regarding Item No. 3. Action Minutes – Planning Commission Meeting – August 25, 2026 – Page 7 Commissioner Gullo's closing comments included support for the project, noting that it was thoughtfully designed, appropriately located, and a positive addition to the community. She also observed that while parking is not permitted on Warner Avenue, a bicycle lane is provided along the roadway. Commissioner Douthit's closing comments included noting that nearby residents had been properly notified and that the absence of public comments indicated a generally favorable response. He expressed support for the project and complimented its overall design. Commissioner Higuchi shared a personal connection to Mariners Church, recalling that it was the first church group he attended as a youth. While expressing support for the applicant and the project, he encouraged additional consideration of pedestrian connections between the church and nearby park facilities, greater opportunities for outdoor gathering spaces, and potential improvements to site access and circulation. He concluded by commending the applicant for the proposed project. Motion: It was moved by Mason seconded by Douthit, to approve Item No. 3, as provided. Roll Call Vote:Hurtado Motion carried:4-0-1 REGULAR BUSINESS: None. OTHER BUSINESS: Alexa Smittle, Community Development Director, provided verbal updates regarding CDD. PLANNING COMMISSION COMMENTS AND REPORTS: Commissioner Higuchi did not have any comments. Commissioner Gullo attended the Local Redevelopment Agency meeting as well as the Camino Real Park ribbon cutting on August 25, 2026. Commissioner Douthit informed the Commission and audience of theDive Bar history tour lead by the Tustin Historic Society, to occur theweekendof August 29, 2026. Chair Mason commended staff with regards to all of the development occurring in Tustin. ADJOURNMENT 6:51 p.m.: The next regular meeting of the Planning Commission is scheduled for Tuesday, September 8, 2026. Action Minutes – Planning Commission Meeting – August 25, 2026 – Page 8 AMY MASON Chairperson ALEXA SMITTLE Planning Commission Secretary Action Minutes – Planning Commission Meeting – August 25, 2026 – Page 9 RESOLUTION NO. 4556 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TUSTIN, CALIFORNIA, DETERMINING THAT THE LOCATION, PURPOSE, AND EXTENT OF THE PROPOSED DISPOSITION OF LOT 15 OF TRACT 18197, AN APPROXIMATE 3.32-ACRE SITE WITHIN PLANNING AREA 8, 13, AND 14 (NEIGHBORHOOD D) OF THE TUSTIN LEGACY SPECIFIC PLAN, FORTHE DEVELOPMENTOF A RELIGIOUS ASSEMBLY USE PROJECT LOCATED AT THE NORTHEAST CORNER OF WARNER AVENUE AND JOHN JOHNSON WAY, IS IN CONFORMANCE WITH THE GENERAL PLANAND TUSTIN LEGACY SPECIFIC PLAN The Planning Commission of the City of Tustin, Californiadoes hereby resolve as follows: I.The Planning Commission finds and determines as follows: A.That a proper application was submitted by Issac Luevano of Carlile Coatsworth Architects, on behalf of Mariners Church c/o Blake Crane for development of a two-story, 33,422 square foot religious assembly building and other site improvements on an approximately 3.32-acre site. The site is currently owned by the City of Tustin and located within Planning Area 8, 13, and 14 (Neighborhood D) of the Tustin Legacy Specific Plan. B. That the City wishes to dispose of Lot 15 of Tract 18197, an approximate 3.32-acre site within Planning Area 8, 13, and 14, to accommodate the development of a new religious assembly use including a 622-seat sanctuary, administrative, meeting and service spaces along with 276 on- site parking spaces, landscaping and associated site improvements. C. That Government Code Section 65402(a) provides that no real property shall be disposed of until the location, purpose, and extent of the project has been reported upon by the local planning agency as to the conformity with the adopted general plan. D. That the disposition of the site is subject to the Surplus Land Act (Government Code Section 54220 et seq.). The City declared the property exempt surplus land on June 15, 2021, pursuant to Government Code Section 54221(f)(1)(H), and the California Department of Housing and Community Development approved the City’s determination on September 15, 2022. Resolution No. 4556 August 25, 2026 Page 2 E. That the General Plan designates the site as Tustin Legacy Specific Plan, which envisions the area as an active living, working, shopping, and recreation environment with access to amenities and facilities that support the community. The proposed disposition supports several General Plan Land Use goals, including the following: 1. Land Use Element Goal 1: Provide for a well-balanced land use pattern that accommodates existing and future needs for housing, commercial and industrial land, open space and community facilities and services, while maintaining a healthy, diversified economy adequate to provide future City services. 2. Land Use Element Goal 3: Ensure that new development is compatible with surrounding land uses in the community, the City’s circulation network, availability of public facilities, existing development constraints and the City’s unique characteristics and resources. 3. Land Use Element Goal 4: Assure a safe, healthy and aesthetically pleasing community for residents and businesses. 4. Land Use Goal 6: Improve urban design in Tustin to ensure development that is both architecturally and functionally compatible, and to create uniquely identifiable neighborhoods, commercial and business park districts. 5. Land Use Goal 8: Ensure that necessary public facilities and services should be available to accommodate development proposed on the Land Use Policy Map. 6. Land Use Goal 14: Continue to implement the Specific Plan/Reuse Plan for MCAS Tustin \[the Tustin Legacy Specific Plan\] which maximizes the appeal of the site as a mixed-use, master planned development. F. That the proposed project would provide public/quasi-public and/or institutional services responsive to the needs of the City’s population in Tustin Legacy, consistent with the General Plan goals identified above. G. That Section 65402(a) of the Government Code authorizes the Planning Commission to determine whether the location, purpose, and extent of the proposed disposition of real property is consistent with the General Plan. H. That a public hearing was duly noticed, called, and held on the associated entitlement project and General Plan Conformity (GPC) 2026-0003 by the Planning Commission on August 25, 2026. Resolution No. 4556 August 25, 2026 Page 3 I.That the General Plan Conformity determinations required by Government Code Section 65402(a) are not “projects” requiring environmental review pursuant to the California Environmental Quality Act. II. The Planning Commission hereby determines the location, purpose, and extent of the disposition of Lot 15 of Tract 18197 to Issac Luevano of Carlile Coatsworth Architects, on behalf of Mariners Church for the development of a new religious assembly use including a 622-seat sanctuary, administrative, meeting and service spaces along with 276 on-site parking spaces, landscaping and associated site improvements is in conformance with the General Plan and the Tustin Legacy Specific Plan. Resolution No. 4556 Page 4 PASSED AND ADOPTED by the Planning Commission of the City of Tustin at a regular meeting held on the 25thday of August 2026. AMY MASON Chairperson ALEXA SMITTLE Planning Commission Secretary APPROVED AS TO FORM: ___________________________ MICHAEL DAUDT Assistant City Attorney Resolution No. 4556 Page 5 STATE OF CALIFORNIA) COUNTY OF ORANGE) CITY OF TUSTIN ) I, ALEXA SMITTLE, the undersigned, hereby certify that I am the Planning Commission Secretary of the City of Tustin, California; that Resolution No. 4556 was duly passed and adopted at a regular meeting of the Tustin Planning Commission, held on the 25th day of August 2026. PLANNING COMMISSIONER AYES: DOUTHIT, GULLO, HIGUCHI, MASON _____ (4) PLANNING COMMISSIONER NOES: _________________________________ PLANNING COMMISSIONER ABSTAINED: _________________________________ PLANNING COMMISSIONER ABSENT: KOZAK (1) ___________________________ ALEXA SMITTLE Planning Commission Secretary RESOLUTION NO. 4557 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING DESIGN REVIEW 2025-0020AND CONDITIONAL USE PERMIT 2025-0022 AUTHORIZING THE DEVELOPMENT OF A 33,422 SQUARE FOOT, TWO-STORY RELIGIOUS ASSEMBLY BUILDINGAND OTHER SITE IMPROVEMENTSANDAUTHORIZING THE ESTABLISHMENT AND OPERATION OF A RELIGIOUS ASSEMBLY USE,RECOMMENDING THAT THE CITY COUNCIL ADOPT ORDINANCE NO. 1581 FOR DEVELOPMENT AGREEMENT 2026-0002AND ADOPTINGAN ADDENDUMTO THE TUSTIN LEGACY SPECIFIC PLAN 2025 SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT FOR THE PROJECT LOCATED ONA 3.32-ACRE SITE ON THE NORTHWEST CORNER OF WARNER AVENUE AND JOHN JOHNSON WAY WITHIN THE TUSTIN LEGACY SPECIFIC PLAN AREA (APN 430-481-15) The Planning Commissionof the City of Tustin does hereby resolve as follows: I.The Planning Commission finds and determines as follows: A.That a proper application has been submitted by Isaac LuevanoofCarlile Coatsworth Architects on behalf on Mariners Church c/o Jim Franklin or Blake Crane,requesting authorization toestablish a 33,422 square foot, two-story religious assembly building,276 on-site parking spaces, landscaping and other site improvements on Lot 15 of Tract 18197, an approximately 3.32-acre site currently owned by the City of Tustin within Planning Area (PA) 8, 13, and 14 (Neighborhood D) of the Tustin Legacy Specific Plan (TLSP).The request also includes the approval of a development agreement. B.That the Development Application requests the following approvals: 1. Development Agreement (DA) 2026-0002 to facilitate the development and conveyance of the approximately 3.32-acre City-ownedprojectsite. 2.Design Review (DR) 2025-0020 for the design and site layout of a new 33,422 square foot, two-story assembly buildingthat includes a 622-seat sanctuary space, meeting/worship rooms and service spaces with surface parking, landscaping, and associated site improvements. 3.Conditional Use Permit (CUP) 2025-0022 to establish and operate a religious assembly use. Exhibit A Resolution No. 4557 DR 2025-0020&CUP 2025-0022 Page 2 C.That a General Plan Conformity (GPC) 2026-0003is required to determine that the location, purpose, and extent of the proposed disposition of the 3.32- acre city-owned site (APN 430-481-15) within Neighborhood D of the Tustin Legacy Specific Plan, for the development of the proposed project, is in conformance with the General Plan and the Tustin Legacy Specific Plan. Findings in support of GPC 2026-0003 were adopted by the Planning Commission via Resolution No. 4556. D.That the site is zoned as TLSP (SP-1) within PA 8, 13, and 14 (Neighborhood D), and designated as TLSP by the General Plan. In addition, the project has been reviewed for consistency with the Air Quality Sub-element of the City of Tustin General Plan and has been determined to be consistent with the Air Quality Sub-element. E.That TLSP Section 4.2.7 requires all private nonresidential development at Tustin Legacy to obtain a DA in accordance with Section 65864 et seq. of the Government Code and Sections 9600 to 9619 of the Tustin City Code. In compliance with TCC Section 9611, the Planning Commission must make a recommendation on the proposed DA to the City Council. The recommendation to City Council can be supportedby the following findings: 1.The project is consistent with the objectives, policies, general land uses and programs specified in the General Plan and the Tustin Legacy Specific Plan. 2.Theprojectincludes a use compatiblewithotherusesauthorizedinthe districtinwhichtherealpropertyislocated(PA8,13,and14)inthat churchesandotherreligiousinstitutionsareconditionallypermitted,and similarandcompatibleusesareconstructedandenvisionedwithin close proximityoftheprojectsite. 3.Theprojectisinconformitywiththepublic necessity, public convenience,generalwelfare,andgoodlandusepracticesinthatthe projectwouldprovidepublic/quasi-publicand/orinstitutionalusewithin thearea responsive tothecommunitywelfareoftheTustinLegacy populationandtoallresidentsthroughouttheCityofTustin. 4.Theprojectwillnotbedetrimentaltothehealth,safety,andgeneral welfare.TheprojectwillcomplywiththeTLSP,TCC,andother regulationstoensurethattheprojectwillnotbedetrimentalinanyway. 5.Theprojectwillnotadverselyaffecttheorderlydevelopmentofproperty inthattheproposedprojectisorderly,welldesigned,andequippedwith necessaryinfrastructureandamenitiestosupportexistingandfuture residentsinTustinLegacyandthroughouttheCityofTustin. Exhibit A Resolution No. 4557 DR 2025-0020&CUP 2025-0022 Page 3 6.TheprovisionsoftheproposedDAandconditionsofapprovalwill ensurethattheprojectwillhave a positive fiscal impactontheCity. F.That pursuant to the TLSP andTCCSection 9272, the Planning Commission finds that the location, size, architectural features, and general appearance of the proposed development will not impair the orderly and harmonious development of the area, the present or future development therein, or the occupancy as a whole. In making such findings, the Commission has considered at least the following items: 1.Height, bulk, and area of buildings. The two-story assembly building has a maximum height of 37feetwith an overall lot coverage of 16%with the majority of the site designated as parking for the use.The overall building square footage of 33,422square feet will bedistributed across the 3.32- acre site such that building mass is concentrated towards the northeast corner of the site at John Johnson Way and Warner Avenue. 2.Setbacks and site planning.The building is designed with four-sided architecture withparking located to the south of the building. The building will be situated towards the northeast corner of the site with no encroachments into the required building setbacks along John Johnson Way and Veteran’s Way. The building includes visual fenestration and architectural relief on all elevations including a secondary entry offWarner Avenue. 3.Exterior materials and colors.The building’suseof a warm to cool-gray color palette on the concrete tilt up panels with decorative tile insets and use of solar blue glazing with black aluminum mullions is consistent with TLSP Section 3.19. 4.Type and pitch of roofs.The proposedbuildingincludes the use of a low- sloped roof concealed behind aparapet, with maximum building heights measured to the top of parapet. 5.Size and spacing of windows, doors, and other openings. Window and door openings are distributed and located to articulate each façade and reduce apparent building mass. 6.Roof structures.Rooftop mechanical equipment is screened from public view by parapetsthat are integrated into the overall architectural design. 7.Location, height, and standards of exterior illumination.Exterior lighting is designed to provide safe pedestrian and vehicular circulation while shielding and directing light downward to avoid spillover onto adjacent properties. As conditioned, exterior illumination will comply with the standards of the TustinSecurity Ordinance. Exhibit A Resolution No. 4557 DR 2025-0020&CUP 2025-0022 Page 4 8.Landscaping, parking area design, and traffic circulation. The project provides 15,638 square feet of landscaping, including drought-tolerant trees and shrubs along the site boundaryandwithin parking areas.A total of 276parking spaces isprovided, which exceedsthe minimum number of spaces required for weekday and weekend uses. A total of fifty-sixtrees is proposed on the site which will help to define and highlight the building. Site access is taken from either John Johnson Way orVeterans Way. 9.Location and appearance of equipment located outside an enclosed structure.Ground-mounted mechanical, electrical, and utility equipment is located away from street frontages and screened by walls and landscaping, and rooftop equipment is screened by parapets. 10.Location and method of refuse storage. Refuse and recycling for the building will be in a designated trash enclosure located adjacent to John Johnson Way. The enclosure will be screened from view and painted to match the building. 11.Physical relationship of proposed structures to existing structures in the neighborhood.The site is bounded by public streets on all four sides. Similar to the adjacent two-story assisted living and memory care building, the proposed projectprovides a gentler visual for most of the project frontage on John Johnson Way, facing the park. 12.Appearance and design relationship of proposed structures to existing structures and possible future structures in the neighborhood and public thoroughfares.The contemporary architecture and warmto cool-graycolor palette are consistent with the design character established elsewhere in Neighborhood D. Building orientation and façade articulation along Warner Avenue, Veterans Way, and John Johnson Way establish a consistent street presence that will complement future development on adjoining parcels. 13.Development Guidelines and criteria as adopted by the City Council. The project complies with TLSP Section 3.19, Urban Design Guidelines, and with the development standards applicable to Planning Area 8, 13, and 14. G.That TLSP Section 3.11 lists a “church and other religious institution” as a conditionally permitted use within PA 8, 13, and 14, and TCC Section 9291 grants the Planning Commission the authority to consider and act on such requests for a CUP. The proposedreligious assembly building falls within this land use category. H.That in determining whether to recommend approval of the CUP application, the Planning Commission finds that the establishment, maintenance, and operation of the proposed use will not, under the Exhibit A Resolution No. 4557 DR 2025-0020&CUP 2025-0022 Page 5 circumstances of this case, be detrimental to the health, safety, morals, comfort, or general welfare of the persons residing or working in the neighborhood of such proposed use, nor be injurious or detrimental to the property and improvements in the neighborhood of the subject property, or to the general welfare of the City of Tustin, in that: 1.The proposed religious assembly useis a conditionally permitted use within PA 8, 13, and 14 pursuant to Tustin Legacy Specific Plan Section 3.11. 2.The building and useis compatible with the Mixed-Use Urban designation of Neighborhood D and with the adjacent residential community andrecently approved assisted living and memory care facility (located directly to the east), and with the future extension of the Legacy Linear Park to the south. 3.The operations of the religious assembly useoccur entirely within the enclosed 33,422 square foot building,which is comprised ofa 622-seat sanctuary space, meeting/worship rooms, service spaces and on-site parking spaces. 4.The facility provides 276on-site parking spaces, exceeding the spaces required by TCC Section 9263 based upon the anticipated use during the weekdayeveningsand peak usage on Sundays. 5.That Parking/Trip/Vehicle MilesTraveled Screening & Level of Service Analysiswere reviewed and accepted by the City’s Traffic Engineer and both studies concluded that the project will not create either traffic or parking nuisances in the general vicinity of the project site. 6.Conditions of approval have been included to address the development and ongoing operation of the facility. I.That theproject is consistent with Tustin General Plan Land Use Element goals and policies related to commercial development including: Goal 1: Provide for a well-balanced land use pattern that accommodates existing and future needs for housing, commercial and industrial land, open space and community facilities and services, while maintaining a healthy, diversified economy adequate to provide future City services. Policy 1.6: Ensure an adequate supply of commercial and industrial land within the City of Tustin for potential commercial and industrial expansion and development. Exhibit A Resolution No. 4557 DR 2025-0020&CUP 2025-0022 Page 6 Goal 5: Revitalize older commercial, industrial and residential uses and properties. Goal 6: Improve urban design in Tustin to ensure development that is both architecturally and functionally compatible, and to create uniquely identifiable neighborhoods, commercial and business park districts. Policy 6.2: Encourage and promote high-quality design and physical appearance in all development projects. J. That a public hearing was duly called, noticed, and held on said applications on August 25, 2026, by the Planning Commission. K.On January 16, 2001, the City of Tustin certified the Program Final Environmental Impact Statement/Environmental Impact Report (FEIS/EIR) for the reuse and disposal of MCAS Tustin.On December 6, 2004, the City Council adopted Resolution No. 04-76 approving a supplement to the FEIS/EIR for the extension of Tustin Ranch Road between Walnut Avenue and the future alignment of Valencia North Loop Road.On April 3, 2006, the City Council adopted Resolution No. 06-43 approving an addendum to the FEIS/EIR. On May 13, 2013, the City Council adopted Resolution No. 13- 32 approving a second addendum to the FEIS/EIR.On July 5, 2017, the City Council adopted Resolution No. 17-23 approving a second supplement to the FEIS/EIR.On December 17, 2024, the City Council adopted Resolution No. 24-76 approving a third supplement to the FEIS/EIR(the TLSP 2025 SEIR, State Clearinghouse No. 1994071005), which evaluated the environmental effects in conjunction with an amendment to the TLSP to implement the programs and policies of the City’s Sixth Cycle Housing Element Rezone Project, which increased residential capacity within TLSP Neighborhoods D (North and South) and G (Housing Element Sites 1A, 1B and 2). The FEIS/EIR, along with its Addenda and supplements, is a program EIR under the California Environmental Quality Act (CEQA). The FEIS/EIR, Addendum, and supplements considered the potential environmental impacts associated with development on the former Marine Corps Air Station, Tustin. Because the proposed project includes a religious assembly use and therefore considered a nonresidential use, the project has been evaluated through an addendum tiering from the TLSP 2025 SEIR pursuant to CEQA Guidelines Sections 15164, 15162, and 15168. An addendum to the TLSP 2025 SEIR has been prepared for the proposed project and is supported by project-specific technical studies. Based upon the addendum, the Planning Commission finds that: Exhibit A Resolution No. 4557 DR 2025-0020&CUP 2025-0022 Page 7 1.The proposed project is within the scope of the development previously analyzed in the TLSP 2025 SEIR; 2.No substantial changes are proposed in the project, and no substantial changes have occurred with respect to the circumstances under which the project is undertaken, that would require major revisions to the TLSP 2025 SEIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 3.No new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the TLSP 2025 SEIR was certified, has become available; 4.None of the conditions described in CEQA Guidelines Section 15162 calling for preparation of a subsequent or supplemental EIR have occurred, and only minor technical changes or additions are necessary, such that an Addendum is the appropriate document pursuant to CEQA Guidelines Section 15164; and 5.Pursuant to CEQA Guidelines Section 15164(c), the Addendumneed not be circulated for public review, and pursuant to Section 15164(d), the Addendum has been considered together with the TLSP 2025 SEIR prior to making a decision on the project. All mitigation measures from the MCAS Tustin FEIS/EIR, TLSP 2017 SEIR, and TLSP 2025 SEIR Mitigation Monitoring and Reporting Programs applicable to the project have been incorporated into the conditions of approval attached hereto as Exhibit B. II.The Planning Commission hereby adopts Resolution No. 4557, approvingCUP 2025-0022 and DR 2025-0020, subject to the conditions attached hereto as Exhibit B,recommendingthat the City Council adoptOrdinance No. 1581 for DA 2026- 0002 attached hereto as Exhibit A, and adoptingthe Addendumto the TLSP 2025 SEIRattached hereto as Exhibit C for the project. III.The Planning Commission’sapproval of CUP 2025-0022 and DR 2025-0020is contingent upon the City Council’s subsequentapproval of DA 2026-0002.CUP 2025-0022 and DR 2025-0020shall take effect concurrently with Ordinance No. 1581. Exhibit A Resolution No. 4557 DR 2025-0020&CUP 2025-0022 Page 8 PASSED AND ADOPTED by the Planning Commission of the City of Tustin at a regular th meeting on the 25day ofAugust, 2026. AMY MASON Chairperson ALEXA SMITTLE Planning Commission Secretary APPROVED AS TO FORM: ___________________________ MICHAEL DAUDT Assistant City Attorney Exhibit A Resolution No. 4557 DR 2025-0020&CUP 2025-0022 Page 9 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) I,Alexa Smittle, the undersigned, hereby certify that I am the Planning Commission Secretary of the City of Tustin, California; that Resolution No. 4557 was duly passed and th adopted at a regular meeting of the Tustin Planning Commission, held on the 25day of August,2026. PLANNING COMMISSIONER AYES: DOUTHIT, GULLO, HIGUCHI, MASON (4) PLANNING COMMISSIONER NOES:___________________________________ PLANNING COMMISSIONER ABSTAINED:________________________________ PLANNINGCOMMISSIONER ABSENT: KOZAK (1) ALEXA SMITTLE Planning Commission Secretary Exhibit A – Draft Ordinance No. 1581 and Development Agreement 2026-0002 Exhibit B – Conditions of Approval Exhibit C -Addendum to the Tustin Legacy Specific Plan 2025 SEIR SOURCE CODES (1)STANDARD CONDITION(5)RESPONSIBLE AGENCY REQUIREMENT (2)CEQA MITIGATION(6)LANDSCAPING GUIDELINES (3)UNIFORM BUILDING CODE/S(7)PC/CC POLICY (4)DESIGN REVIEW*** EXCEPTION treat . . Appendix G (Environmental Checklist Form) 300 Centennial Way, Tustin, CA 92780 (714)573-3100 !!!!!!!!!!!!!!!!!!! 2 | Page 3 | Page Qsfqbsfs;!Ebuf;! Fsjdb!I/!Efnlpxjd{-!BJDQ!Tfojps!Qmboofs! 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