Loading...
HomeMy WebLinkAboutORD 1520 (2022) DocuSign Envelope ID:6251569E-BD8C-4EDF-90A4-29FB3B46EC1 C ORDINANCE NO. 1520 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, APPROVING DEVELOPMENT AGREEMENT (DA) 2021-0003 BETWEEN THE CITY OF TUSTIN AND FLIGHT PHASE I OWNER, LLC. TO ALLOW AN AMENDMENT TO THE TUSTIN LEGACY CORNERSTONE DEVELOPMENT AGREEMENT (DA 2016-0001) FOR THE CREATIVE OFFICE CAMPUS DEVELOPMENT KNOWN AS "THE FLIGHT AT TUSTIN LEGACY" LOCATED WITHIN A PORTION OF PLANNING AREA 9-12 OF THE TUSTIN LEGACY SPECIFIC PLAN (SP-1). The City Council of the City of Tustin does hereby ordain as follows: SECTION 1. The City Council finds and determines as follows: A. That proper application has been submitted by Flight Phase I Owner, LLC. requesting an amendment to the Tustin Legacy Cornerstone Development Agreement (DA 2016-0001) for "The Flight at Tustin Legacy", a creative office campus development location within the Tustin Legacy Specific Plan area (SP-1). B. That Phase I of the project was completed by the applicant in 2019 and the City issued a Certificate of Compliance for this phase signifying that the applicant has completed all obligations under the Disposition and Development Agreement (DDA) for the project. As a result, the DDA for Phase I is terminated. C. That Tustin Legacy Specific Plan Section 4.2.7 requires all private development at MCAS Tustin to obtain a Development Agreement 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 , approval of a Development Agreement (DA) and any amendments thereto are subject to a public hearing before the Planning Commission. Pursuant to TCC Sections 9612-9614, following a recommendation by the Planning Commission, the DA must be approved by the City Council by the adoption of an ordinance at a separate noticed public hearing. D. That a public hearing was duly called, noticed, and held on said application on December 14, 2021, by the Planning Commission. The Planning Commission adopted Resolution No. 4443 recommending that the City Council adopt Ordinance No. 1520. E. That a public hearing was duly called, noticed, and held on said application on February 1 , 2022, by the City Council. Ordinance No. 1520 Page 1 of 4 DocuSign Envelope ID:6251569E-BD8C-4EDF-90A4-29FB3B46EC1 C F. Per CEQA Section 15061(b)(3), an environmental analysis is not necessary given the nature of the DA amendment, which is changes to the text within the document. The DA amendment includes no construction and has no possibility for causing a significant effect on the environment; therefore, the project is not subject to CEQA. G. That the amendment to the Development Agreement can be supported by the following findings: 1 . DA 2021-0003 as an amendment to the TLCDA, is consistent with the objectives, policies, general land uses, and programs specified in the General Plan and TLSP in that the project is consistent with Tustin General Plan Land Use Element Policies 14.1, 14.2, and 14.4 and would further the goals and objectives of the City within this portion of Planning Area 9-12 of the TLSP by continuing to provide for orderly development envisioned at the project site, as follows: Policy 14.1: Promote new uses and design which will peacefully coexist with surrounding residences and businesses in Tustin and adjacent cities, minimizing impacts on noise, air quality, traffic, and other environmental features wherever possible. Policy 14.2: Encourage a development pattern that offers a connectedness between buildings and uses, and has a strong sense of place through architectural style and creative landscape design. Policy 14.4: Implement a balanced reuse plans that responds to community needs but does not drain City resources. Wherever possible, tax revenues generated by uses on the site should offset the costs of public services. 2. DA 2021-0003 as an amendment to the TLCDA, is consistent with the TLSP. While no project or construction is proposed at this time, any future development and uses within the Specific Plan area (i.e. Phase II) will be further analyzed at the time of development proposals for consistency with the TLSP. 3. DA 2021-0003 as an amendment to the TLCDA, is in conformance with the public necessity, public convenience, general welfare, good land use practices, and the orderly development of property, in that the modifications to certain provisions of text contained within the Original DA are minor in nature and would provide further clarity regarding Phase I of Ordinance No. 1520 Page 2 of 4 DocuSign Envelope ID:6251569E-BD8C-4EDF-90A4-29FB3B46EC1 C the project and future development for Phase 2. There is no construction planned in conjunction with this amendment. 4. In addition, DA 2021-0003 (as an amendment to the TLCDA), complies with all applicable Federal, State, and Local rules and regulations. 5. DA 2021-0003, an amendment to the TLCDA, will have a positive fiscal impact on the City in that it will provide further clarity in language that would allow for potential development of Phase 2 of the project. SECTION 2. The City Council hereby approves Development Agreement 2021-0003 attached hereto as Exhibit A and subject to final approval of the City Attorney. SECTION 3. Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Tustin hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin on this 15th day of February, 2022. _5 DocuSigned by: tu, inn bar AU TiIDLBARD, Mayor FDOCUSIgned by: IU"'S'J.a. ERIC m,yAwIDA, City Clerk Ordinance No. 1520 Page 3 of 4 DocuSign Envelope ID:6251569E-BD8C-4EDF-90A4-29FB3B46EC1 C APPROVED AS TO FORM: DocuSigned by: � uP DA\Y)iDBE—KEN IG, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF TUSTIN ) I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is 5; that the above and foregoing Ordinance No. 1520 was duly and regularly introduced at a regular meeting of the Tustin City Council, held on the 1 st day of February, 2022, and was given its second reading, passed, and adopted at a regular meeting of the City Council held on the 15th day of February, 2022, by the following vote: COUNCILMEMBER AYES: Lumbard, Cooper, Clark Gallagher, Gomez (5) COUNCILMEMBER NOES: (0) COUNCILMEMBER ABSTAINED: (0) COUNCILMEMBER ABSENT: (0) FDocuSigned by: u,"S'JI E R I&A-4476YA4SUPDA, City Clerk Ordinance No. 1520 Page 4 of 4 DocuSign Envelope ID:6251569E-BD8C-4EDF-90A4-29FB3B46EC1 C EXHIBIT A Development Agreement 2021-0003 DocuSign Envelope ID:6251569E-BD8C-4EDF-90A4-29FB3B46EC1 C CITY OF TUSTIN OFFICIAL BUSINESS REQUEST DOCUMENT BE RECORDED AND BE EXEMPT FROM PAYMENT OF A RECORDING FEE PER GOVERNMENT CODE 6103 AND 27383 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Tustin 300 Centennial Way Tustin, California 92780 Attn: City Clerk Space Above This Line Reserved for Recorder's Use Only FIRST AMENDMENT TO TUSTIN LEGACY CORNERSTONE I DEVELOPMENT AGREEMENT This FIRST AMENDMENT TO TUSTIN LEGACY CORNERSTONE I DEVELOPMENT AGREEMENT ("First Amendment")is entered into as of[•], 2021,by and between the CITY OF TUSTIN, a California municipal corporation ("City"), and FLIGHT PHASE I OWNER LLC, a Delaware limited liability company ("Developer"). The City and Developer are collectively referred to herein as the "Parties" and individually as a"Party." RECITALS A. City and Flight Venture LLC, a Delaware limited liability company ("Original Developer"), as predecessor-in-interest to Developer, previously entered into that certain Tustin Legacy Cornerstone I Development Agreement (Ordinance No. 1471), with an "Effective Date" (as defined in Section 1.1.31 of the Original DA) as of December 15, 2016 (the "Original DA"). The Original DA was recorded in the Official Records of Orange County, California ("Official Records")on March 30, 2017 as Instrument No. 2017000128365. The Original DA and this First Amendment are collectively referred to herein as the "Agreement." B. The Original DA was timely executed and accordingly did not terminate pursuant to Section 2.3.2 of the Original DA. C. Original Developer assigned the Original DA to Developer, and Developer assumed the Original DA from Original Developer, pursuant to that certain Assignment and Assumption Agreement (Cornerstone I) dated as of June 29, 2017 (the "DA Assignment"). The DA Assignment was recorded in the Official Records on June 29, 2017 as Instrument No. 2017000270813. D. As of the Effective Date, (1)the Original DA, as modified by the DA Assignment, Tustin Cornerstone First Amendment to DA I City of Tustin/Cornerstone I 12-07-2020(agd).docx DocuSign Envelope ID:6251569E-BD8C-4EDF-90A4-29FB3B46EC1 C remains in effect, and (2) Developer is not in default. E. City and Developer are also parties to that certain Tustin Legacy Disposition and Development Agreement Cornerstone I dated as of November 15, 2016, as amended by (1) that certain First Amendment to Tustin Legacy Disposition and Development Agreement Cornerstone I dated as of June 20, 2017, (2)that certain Second Amendment to Tustin Legacy Disposition and Development Agreement Cornerstone I dated as of October 1, 2019, and (3)that certain Third Amendment to Tustin Legacy Disposition and Development Agreement Cornerstone I dated as of December 1,2020 (collectively, and as the same may be amended from time to time,the"DDA"). A Memorandum of the Second and Third Amendments to the DDA was recorded in the Official Records on December 22, 2020 as Instrument No. 2020000759139. F. The Phase 1 Parcel was conveyed to Developer on June 29, 2017, and a Certificate of Compliance for the Phase 1 Project dated March 26, 2020 was recorded in the Official Records on March 26, 2020 as Instrument No. 2020000137939 (the "Recorded Phase 1 Certificate of Compliance"). Accordingly,the DDA has terminated as to the Phase 1 Parcel and is of no further force and effect with respect to Phase 1 or the Phase 1 Parcel. G. The Parties now desire to modify certain provisions of the Original DA as more particularly set forth herein. Any capitalized word or term used in the Agreement and not defined in this First Amendment shall have the definition or meaning ascribed to such word or term as provided in the Original DA, and where a capitalized word or term is not defined herein or in the Original DA, it shall have the meaning set forth in the DDA. AGREEMENT NOW,THEREFORE,in consideration of the above recitals,which are incorporated herein by this reference, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. DEFINITIONS. The definition of"Option Year" in Section 1.1.55 of the Original DA is hereby deleted in its entirety and replaced with the following: ""Option Year" means the First Option Year and each succeeding twelve month period following the First Option Year through the fifth(5th)Option Year for which Developer obtains an extension of the Option pursuant to Section 4.3.3(b) of the DDA and with respect to the sixth (6th) Option Year shall mean the period from June 29, 2022 to December 30, 2022." 2. TERM. 2.1 Phase 1. All pre-conditions for the partial termination of the Original DA as to Phase 1 set forth in Section 2.5.4(a)(vi) of the Original DA have been satisfied, including without limitation the City's issuance of the Recorded Phase 1 Certificate of Compliance. Accordingly,the City and Developer hereby agree that the Original Tustin Cornerstone First Amendment to DA 2 City of Tustin/Cornerstone I 12-07-2020(agd).docx DocuSign Envelope ID:6251569E-BD8C-4EDF-90A4-29FB3B46EC1 C DA is terminated as to Phase 1 and the Phase 1 Parcel. From and after the effective date of this First Amendment, neither the approval nor the signature of the owner of Phase 1 or any Phase 1 Developer shall be required to terminate, extend,modify, or amend this Agreement. 2.2 Phase 2. Section 2.3.1(b) of the Original DA is hereby deleted in its entirety and replaced with the following: "(b) with respect to Phase 2,the term (the"Phase 2 Term") shall terminate upon the occurrence of the earlier to occur of the following dates, provided that in no event, after taking into account Force Majeure Delay, shall the Phase 2 Term be extended beyond the fifteenth (15th) anniversary of the Effective Date: i. the date upon which the Option terminates without exercise thereof, or ii. four (4) years from the Phase 2 Commencement of Construction (as defined in the DDA); or iii. December 15, 2029, as such date may be automatically extended during the period of any Force Majeure Delay established pursuant to Section 9.11 for a maximum of two (2) additional years." 3. WITHHOLDING OF PHASE 2 GRADING, FOUNDATION AND/OR BUILDING PERMITS. The Parties acknowledge and agree that the City shall have the right(but not the obligation) to withhold the issuance of any grading, foundation and/or building permits with respect to construction on the Phase 2 Parcel until such time that the City has issued a Satisfaction Date Notice pursuant to the terms of the DDA. Developer hereby waives its right to challenge such withholding by the City of such grading, foundation and/or building permits with respect to the Phase 2 Parcel in accordance with this Section 3; provided, however, that the foregoing waiver shall not be interpreted to limit Developer's ability pursuant to the terms of the DDA to contest in good faith City's determination that the Phase 2 Construction Commencement Conditions have been satisfied in accordance with the terms of the DDA. 4. MISCELLANEOUS. 4.1 The Recitals set forth in this First Amendment are affirmed by the Parties to be true and correct and are incorporated into the Agreement by this reference. 4.2 This First Amendment 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 one original. 4.3 Each person executing this First Amendment on behalf of each Party warrants and represents that he, she, or they have the authority to execute this First Amendment on behalf of Tustin Cornerstone First Amendment to DA 3 City of Tustin/Cornerstone I 12-07-2020(agd).docx DocuSign Envelope ID:6251569E-BD8C-4EDF-90A4-29FB3B46EC1 C such Party and warrants and represents that he, she, or they has/have the authority to bind such Party to the performance of its obligations hereunder. 4.4 The Parties intend hereby to amend the Original DA only as set forth herein, and the Parties hereby agree that, except as expressly amended hereby, all other terms and conditions of the Original DA are hereby confirmed and shall remain in full force and effect. 4.5 This instrument shall be interpreted and construed in accordance with the laws of the State of California. (remainder of page is blank;signatures commence on the following page) Tustin Cornerstone First Amendment to DA 4 City of Tustin/Cornerstone I 12-07-2020(agd).docx DocuSign Envelope ID:6251569E-BD8C-4EDF-90A4-29FB3B46EC1 C SIGNATURE PAGE TO FIRST AMENDMENT TO DEVELOPMENT AGREEMENT IN WITNESS WHEREOF,the Parties hereto have executed this First Amendment on the day and year set forth below. "City" CITY OF TUSTIN, CALIFORNIA By: Austin Lumbard, Mayor ATTEST: By: Erica N. Yasuda, City Clerk Dated: APPROVED AS TO FORM: Office of the City Attorney By: David E. Kendig, Esq. [Signatures continued on next page] Tustin Cornerstone First Amendment to DA S-1 City of Tustin/Cornerstone I 12-07-2020(agd).docx DocuSign Envelope ID:6251569E-BD8C-4EDF-90A4-29FB3B46EC1 C "Developer" FLIGHT PHASE I OWNER LLC, a Delaware limited liability company By: Name: Title: Tustin Cornerstone First Amendment to DA S-2 City of Tustin/Cornerstone I 12-07-2020(agd).docx DocuSign Envelope ID:6251569E-BD8C-4EDF-90A4-29FB3B46EC1 C 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 Tustin Cornerstone First Amendment to DA S-3 City of Tustin/Cornerstone I 12-07-2020(agd).docx DocuSign Envelope ID:6251569E-BD8C-4EDF-90A4-29FB3B46EC1 C 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 Tustin Cornerstone First Amendment to DA S-3 City of Tustin/Comerstone I 12-07-2020(agd).docx