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HomeMy WebLinkAbout06/03/2008, C8 - PRE-ANNEXATION AGREEMENTS PROPOSED FOR SAN LUIS OFFICE PARK AND HANSON AGGREEMENTS IN THE AIRPORT A Ancouncil aGEnaa REpout CITY OF SAN LU IS O B 1 S P 0 FROM: John Mandeville, Community Development Director Prepared By: Michael Codron, Associate Planner SUBJECT: PRE-ANNEXATION AGREEMENTS PROPOSED FOR SAN LUIS OFFICE PARK AND HANSON AGGREGATES IN THE AIRPORT AREA. CAO RECOMMENDATION Authorize the Mayor to execute Pre-Annexation Agreements with San Luis Business Park and Hanson Aggregates in substantially the same form as the drafts attached to this report and approved by the City Attorney. DISCUSSION Background On February 20, 2007, the City Council adopted a phasing plan for annexation of the Airport Area and endorsed a standard pre-annexation agreement for properties with unique circumstances (Attachment 1, City Council Minutes, 2-20-07). The City of San Luis Obispo subsequently submitted an application to the Local Agency Formation Commission (LAFCO) for annexation of the first 620 acres of land in the annexation area, including the remaining unincorporated portions of the Margarita Area. LAFCO formerly approved the City's annexation request on April 17, 2008, however, the annexation will not go into effect until mid-June at the soonest due to the noticing requirements for the reconsideration and protest hearings associated with the annexation process. At this time, staff does not have any information indicating that a protest will be successful and the annexation is expected to be finalized 10 days after the protest hearing, scheduled for June 19, 2008. In preparation for the annexation of Phase la of the Airport Area, on April, 1, 2008, the Council approved a pre-annexation agreement for Air-Vol Block, located on 117 Suburban Road. Two additional pre-annexation agreements are now proposed for the San Luis Office Park, located on 4251 South Higuera Street, and Hanson Aggregates, 131 Suburban Road (Attachment 2, Vicinity Map). These are the last pre-annexation agreements that can be proposed for Phase IA. General Discussion of Pre-Annexation Agreements Annexation agreements have been used to define future services by the City to facilitate many of the annexations undertaken in recent years. In the past, these agreements have e / Airport Area—Pre-Anne. ..ion Agreements Page 2 been used to stipulate City services that would be available to property owners upon completion of the annexation. Pre-annexation agreements for interim Airport Area annexations also allowed property owners to pre-pay water and sewer impact fees and open space in-lieu fees. In order to secure orderly and favorable annexation, pre-annexation agreements can be offered to property owners with unique circumstances such as pending applications for development in the county. The pre-annexation agreement template endorsed by the Council recites the current standards and codes that apply to all property in the Airport Area. Pre-annexation agreements cannot be used to circumvent current codes or standards; they simply clarify how existing codes and standards would be applied relative to the property in question. Pre-annexation agreements are a benefit to property owners because they elaborate how City policies will be applied in the future, providing more certainty regarding interpretation and application of code standards. San Luis Office Park The San Luis Office Park is a unique office park in the San Luis Obispo Area. The site offers flexible office spaces for start-up businesses that can then expand on-site or to other locations. The office park offers shared resources such as fax machines and copiers that facilitate growth of new businesses by allowing them to reduce typical overhead costs associated with operating an office. The office park also includes long-term occupants, such as GST Call America, a telecommunications company with a focus on business services. The pre-zoning for San Luis Office Park is Service-Commercial, Specific Plan (C-S-SP). The zoning allows for certain types of office uses, but professional offices are not allowed. The office park currently hosts some attorneys and other professional offices. The Zoning Regulations allows for non-conforming uses to continue indefinitely. However, if a non-conforming use is discontinued for a period of six months, it can only be replaced with an allowed use. The Zoning Regulations also allow for one non- conforming use to be replaced with another type of non-conforming use with the approval of an Administrative Use Permit. The proposed pre-annexation agreement is consistent with these limitations. Hanson Aggregates Hanson Aggregates operates a batch concrete plant and its use involves preparing concrete to be loaded onto mixing trucks and distributed to construction sites. This use is defined in the Zoning Regulations as Heavy Manufacturing. Heavy Manufacturing is conditionally allowed in the Airport Area (Manufacturing Zone) with the approval of an Administrative Use Permit. Once annexed, the use will become legal, non-conforming until an Administrative Use Permit is obtained. As a legal, non-conforming use, the business can continue indefinitely in its current state. Proposed expansion of the existing use by adding building floor area, however, will Airport Area—Pre-Anne.-- .ion Agreements - Page 3 trigger the requirement to obtain an Administrative Use Permit. In this case, approval of an Administrative Use Permit would eliminate the non-conforming status of the business. The property owners are not likely to pursue approval of an Administrative Use Permit without a requirement to do so because of permit fees and code requirements, such as frontage improvements, that are normally triggered by discretionary approvals. Proposed Pre-Annexation Agreements The proposed pre-annexation agreements are consistent with the standard pre-annexation agreement for Airport Area properties endorsed by the City Council on February 20, 2007. Additional sections that pertain specifically to San Luis Office Park and Hanson Aggregates operations include provisions regarding water and sewer service, replacement of non-conforming uses, and parking. Both owners also have ongoing permit applications with the County. In the case of San Luis Office Park, exterior aesthetic improvements are currently being implemented under a construction permit from the County. Hanson Aggregates has a County zoning clearance to install a new water and concrete reclaimer, an environmentally superior piece of equipment that will recycle up to 100% of left-over concrete mix, and 80% of the water used during the reclaiming operation. The pre-annexation agreement recognizes the County zoning clearance and allows Hanson to apply for a City building permit to install the reclaimer without triggering other City planning approvals. The agreements also recite City policy regarding connections to City water and sewer service. These connections would only be required upon further development of the sites with building floor area, and the existing water wells and septic systems may be replaced if they fail. CONCURRENCES The proposed pre-annexation agreements were developed in consultation with the Utilities Department, the Public Works Department, the City Attorney's Office, the Finance Department and City Administration. FISCAL IMPACT There is no fiscal impact associated with approving pre-annexation agreements because the agreements simply confirm current City policy. Overall, annexation of the Airport Area is expected to have a positive fiscal impact. ALTERNATIVES 1. Revise pre-annexation agreement. Direct staff to make revisions to the proposed pre-annexation agreements if there are specific changes that the Council would like to make. This will require re-negotiation with the owners and may impact the ability to complete these agreements prior to annexation of the area. Airport Area—Pre-Anne:. .,on Agreements Page 4 2. Continue discussion. Continue consideration of the proposed pre-annexation agreement and direct staff to provide additional information to the City Council regarding the agreement at a future meeting. This option is not recommended because the next Council meeting is scheduled for June 17, 2008, and the annexation is expected to be finalized on June 19, 2008. 3. Do not approve agreement. The Council may also choose not to approve the pre-annexation agreement for this property. This option is not recommended because the agreement is consistent with Council direction provided on February 20, 2007. ATTACHMENTS 1. City Council Minutes 2-20-07 2. Vicinity Map 3. San Luis Office Park Pre-Annexation Agreement 4. Hanson Aggregates Pre-Annexation Agreement T:Wtto y\A eution Agw==\dokzlldvaasompm-nn=(CAR).dm City Council Meeting C" 179 1 Tuesday, February 20,2007-4:00 p.m. 6. REVIEW STEPS RELATED TO THE,CITY'S PROPOSED ANNEXATION OF THE MARGARITA AREA AND AIRPORT AREA, Community Develo ment Director Mandeville and Associate Planner Codron presented the staff report. They and Cao Hamman,Finance Director Statler and Utilities Director Moss responded to questions. Public Comments Warren Dolezal,owner of property at the intersection of Los Osos Valley Road and South Higuera Street,asked Council to consider amending CAO recommendation#3 to allow other phase 1 property owners to be included In the discussion regarding interim wastewater service as part of the annexation process. Scott Lathrop.San Luis Obispo,explained why it would not be advantageous to include property with which he has been involved(in the vicinity of Brad Stmt)In the annexation process. His concerns Included the timing of his project and the length of time before City sewer systems would be available. Tv Safreno.San Luis Obispo,referred to his business,Trust Automation company,located on the western comer of Tank Farm Road and the realigned Santa Fe Road. He opposed annexation because of the length of the process and lack of benefits to his project. He also expressed concern regarding the fees that would result Terry Simons,representing the Damon Garcia family,explained their property Is planned to be annexed as part of phase 1 and asked that an Interim solution for the sewer services be granted as part of the development agreement. Bill Almas,San Luis Obispo,questioned requiring new development to pay for pre-existing conditions and problems that have not been mitigated,and suggested that creative ways need to be found to fund this Infrastructrure. Patricia Wllmore, representing Chamber of Commerce,referred to a letter from the Chamber (on file In the City Clerk's office)containing their concerns regarding fees and asking that creative fee financing or bonding be Implemented to make development feasible. John.French San Luis Obispo,expressed concern that the free structure will create a situation where properties with the same zoning could have a fee structure that is twice as large for transportation fees as a property Immediately adjacent to it. Charley Senn.San Luis Obispo,owner of property on the east side of Broad Street,expressed concern regarding the length of time it will take to accomplish the annexation and the need for the City to provide utilities for properties that will be annexed so that owners can rely on their avallibility In order to develop the property within a specific period of time. --end of public comments— Staff and Paul Hood,LAFCO Executive Officer,responded to Council's questions. Council Member Settle spoke in support of the CAO recommendation,but discussed the need to allow flexibility that would enable phase 1 property owners to receive services as soon as feasible. City Council Meeting - Attadment 1 Tuesday,February 20,2007-4:00 p.m. Vice Mayor Mulholland said she has not heard new Information that would change her position of continuing to oppose annexing the Airport area. Council Member Brown spoke In support of the CAO recommendation. Council Member Carter also spoke In support of the CAO recommendation,but wanted It to be amended to permit extending service agreements for interim wastewater service to property owners adjacent to existing infrastructure. Mayor Romero also spoke In support of the CAO recommendation and extending service agreements for interim wastewater service as noted by Council Member Carter. ACTION: Moved by Settle/Romero to: 1)Pursue annexation of Margarita Area and Airport Area properties according to the proposed phasing plan,which Identifies sub-areas that could be annexed In two or more phases. 2)Endorse the use of a standard pre-annexatlon agreement between the City and interested property owners with unique circumstances. 3) Endorse discussions with the Fiero Lane Mutual Water Company to allow for Interim wastewater service as part of the annexation process, based on the policy advantages to the City and the unique circumstances applying to this area 4)Directed staff to return with an analysis of what would be Involved in extending service agreements for Interim wastewater service,in addition to Flero Lane Mutual Water Company,to property owners adjacent to existing Infrastructure;motion carried 4:1 (Mulholland opposed). There being no further business to come before the City Council,Mayor Romero adjourned the meeting at 11:10 p.m.to Tuesday,March 6,2007,in the Council Chamber,990 Palm Street, San Luis Obispo. Audrey Hoopfr City Clerk APPROVED BY COUNCIL: 03/06/07 —le 4251 HIGUERA S 100 - Tr�c11n1enZ L 076-071-013 MPHR FARM r � 1 �1 r 1� UBURBAN - 4 LoR'0R4&Vk«EY CHOwu sl CITY OF SAN LUIS OBISPO he information contained in this database is intended for informational use only. This information is provided for the convenience of users,but GEODATA SERVICES lossnot necessarily constitute precise property ownership or legal descriptions of any property,and should not be relied upon as an official 955 MORRO STREET roperty record.The City of San Luis Obispo makes every effort to ensure the accuracy of this data;however,the accuracy of this material is SAN LUIS OBISPO,CA 93401 of guaranteed and users assume responsibility for independent verification of any and all information contained herein prior to use or reliance pon such information for any official purpose.The City San Luis Obispo disclaims any responsibility or liability for any direct or indirect 805 781-7167 Jarnages resulting from the use of this data �_ W2008 11:03 Attachment 3 RECORDING REQUESTED BY AND WHEN RECORDED R.ETUR.NL TO7 City of San Luis Obispo City Clerk's Office 990 Palm Street San Luis Obispo, CA 93401-3249 APN- 076-071-013 PRE-ANNEXATION AGREEMENT BY AND BETWEEN THE CITY OF SAN LUIS OBISPO AND THE DOLEZAL FAMILY LIMITED PARTNERSHIP Attachment 3 Table of Paragraphs and Exhibits i[No. Paragraph Heading Page Table of Paragraphs and Exhibits i Recitals 1 Findings 2 1. Incorporation of Recitals and Findings 2 2. Annexation of Property 2 A. Urban Services 3 i. Fine Protection and Police Services 3 ii. Water Service 3 a. Use of On-Site Water Resources 3 b. New Development Triggering City Service 3 c. Effect of MAP on Water Service 3 d. Well Repair and Abandonment 4 iii. Sewer Service 4 B. Existing and Future Development 4 i. Non-Conforming Uses 4 ii. Expansion of Existing Uses 4 iii. Non-Conforming Structures 5 C. Compliance with City Standards 4 D. Parking 5 E. Property Improvements 5 F. City Business Licenses 5 3. Zoning 6 4. Waiver of Protest Rights 6 5. Successors,Heirs,and Assigns 6 6. Costs of Annexation 6 7. Amendments,Time Extension, or Cancellation 6 8. Default;Attorneys'Fees 6 9. Notices 6 10. Counterparts 7 11. Term of Agreement 7 12. Intent of the Parties 7 Signatures and Notarial Acknowledgements 9 Exhibit A: Legal Description of Property Exhibit B: Inventory of Established Existing Uses on Property Exhibit C: Vesting Tentative Parcel Map SLO 08 0020 i �- ATTACHMEMT 3 PRE-ANNEXATION AGREEMENT This Agreement is dated, for reference purposes only, this day of May 2008, and is entered into by and between the CrrY of SAN Luis OBISPO, a chartered municipal corporation, (hereinafter referred to as "CITY") whose mailing address is 990 Palm Street, San Luis Obispo, California 93401; and THE DoLEZAL FAMILY LIMITED PARTNERSHIP, a Nevada Limited Partnership, whose mailing address is 4251 S. Higuera Street, Suite 900, San Luis Obispo, CA 93401 (hereinafter referred to as -OWNER-), pursuant to the authority of the City Charter and the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 as set forth in Sections 56000, et. seq., of the California Government Code. CITY and OWNER shall hereinafter be referred to collectively as "PARTIES." RECITALS WHEREAS, The Dolezal Family Limited Partnership is the OWNER in fee of certain improved real property in an unincorporated area of the County of San Luis Obispo, commonly known as the San Luis Business Park, 4251 S. Higuera Street, San Luis Obispo, CA 93401, APN # 076- 071-013, (hereinafter referred to as the "PROPERTY"), a legal description of which is attached hereto as Exhibit and incorporated herein; and WHEREAS, the CITY, by vote of its City Council on May 1, 2007 on File No.: ANNX 172-05 has proposed that PROPERTY be annexed to the City of San Luis Obispo; and WHEREAS,the Airport Area Specific Plan (AASP) and the related Facilities Master Plans have been adopted for the purpose of identifying appropriate land uses for the PROPERTY and other properties within the.annexation area; and WHEREAS, the AASP identifies the infrastructure needed to serve existing and future development of the PROPERTY, including, but not limited to, utilities, water and sewer service, roadways, bikeways, transit lines, and drainage improvements, and includes mechanisms to finance these public improvements; and WHEREAS, upon annexation the PROPERTY is entitled to the same level of police and fire protection that is available to other users in the CITY and subject to the same laws, rules, regulations,and fees; and WHEREAS, the PROPERTY, as maintained and operated, is an integrated mixed-use development. An inventory of established existing uses of the PROPERTY is attached hereto as Exhibit B and incorporated herein. The existing uses are conforming uses under the San Luis Obispo County Land Use Ordinance however, under the AASP and the City's zoning ordinance, some number of the PROPERTY's existing and established uses may be rendered legal, non- conforming uses under the CITY's Zoning Ordinance and AASP. The preservation of the diversity of uses and of the continued viability of the.PROPERTY as an integrated mixed use project will require cooperation between CITY and OWNER, including, in the near tern, to work closely together to *minimize the risk that tenant transitions and successions may result in 1 Attachment integrate such legal non-conforming uses into the CITY's zoning regulation and AASP to the fullest extent feasible and consistent with CITY's planned growth and development; and WHEREAS, the Parties hereby acknowledge that OWNER has submitted an application with the City for approval of a Vesting Tentative Parcel Map SLO 08 0020 (herafter referred to as "MAP"), attached hereto as Exhibit C. The parties further acknowledge that the Map, as submitted, does not propose to create new floor space and does not seek approval of substantial physical or structural changes, but seeks only to affect a legal "air-space" parcel subdivision of the PROPERTY's existing units; and WHEREAS, to provide for the CITY's orderly growth and development, consistent with the General Plan, the PARTIES anticipate that the PROPERTY will be annexed to the CITY pursuant to terms and procedures of the California Government Code 56000 et seq.; and WHEREAS, on April 17, 2008, the Local Agency Formation Commission conducted a public hearing at which CITY's and OWNER's representatives, among others, testified. In response to LAFCO commissioners' concerns that there be assurances that existing uses be "grandfathered in", and "stay as they are", City representatives testified, inter alfa, that"the City has no greater interest than to insure that these businesses remain successful and are able to grow and mature after they are annexed into the city,"that "annexation only affects new uses"and to the extent, if any, that "there are differences between County zoning and CITY zoning, the CITY will work very hard to minimize those," that in any event "all existing uses will be entitled to remain for as long as the property owner and the business want to keep those in use", and that the "City will provide ... flexibility in how that six-month period will be determined from start to finish and make sure that they are able to continue to operate their business the way they have"; and WHEREAS, the CITY finds and determines that, as of the effective date of this Agreement, the conditions, limitations, and rights undertaken by this Agreement: i. Are not detrimental to the health, safety, or welfare of persons working or living at PROPERTY or within the vicinity of PROPERTY; ii. Use of PROPERTY, as provided in this Agreement, does not jeopardize persons or property within the vicinity of PROPERTY; and iii. Will not damage the resources of the PROPERTY or its surroundings; NOW THEREFORE, in consideration of the mutual promises, covenants and agreements stated herein,PARTIES agree as follows: 1. INCORPORATION OF RECITALS AND FINDINGS. The foregoing Recitals and Findings are made apart hereof and incorporated by this reference. 2. ANNEXATION OF PROPERTY. CITY shall apply for and diligently pursue annexation of the PROPERTY subject to the following terms and conditions: 2 Attachment 3 A. URBAN SERVICES Upon annexation, the PROPERTY shall be entitled to the full range of City services, including but not limited to water and sewer services, police and fire protection, and general government services, some of which are described below in more detail, subject to the same laws, rules, regulations, and fees applicable to other new users in the CITY: i. Fire Protection and Police Services. CITY agrees to provide fire protection and police services to the PROPERTY subject to the same laws, rules; and regulations applicable to other similarly situated property within the CITY; ii. Water Service. CITY agrees to provide water service, as available, for fire fighting and domestic uses to the PROPERTY upon request of OWNER, subject to the same laws, rules, regulations, and fees applicable to other new users in the City under similar circumstances. a. Existing Use of On-Site Water Resources. Use of on-site ground water for potable and non-potable uses may continue for existing development as long as Owner would like. Even if and when OWNER requests potable water service for existing domestic purposes, including office premises, on the PROPERTY, the OWNER may, in its sole discretion, continue to use groundwater from the wells on the PROPERTY for on-site irrigation, landscaping, and non-potable uses and for any other reasonable and beneficial use to the extent consistent with State, County and City laws and regulations and with the understanding that such uses do not include regular provision of water to other properties within the CITY absent CITY permission. b. New Development Triggering City Service. New development on the Property that results in the addition of floor area that is inhabited and adds net additional fixture units that would require additional water supplies, may trigger a requirement, as determined by the Utilities Director and Community Development Director, to hook up to City service for such new development, but may utilize on-site groundwater for on-site non-potable uses indefinitely, provided applicable State, County, and CITY standards are met. c. Effect of MAP on Water Service. Upon any airspace-based subdivision of the PROPERTY, resulting.in no addition of new net floor area, new airspace parcels or lots within the present boundaries of existing buildings may continue to be served from the existing potable wells. This right is contingent upon OWNER's obligation to ensure, through appropriate recorded agreements with parcel/lot purchasers, that such purchasers shall have appropriate easements and/or access rights to facilitate their connections to City services at the option of such purchasers. New parcels may be converted to City water in accordance with this Agreement and with City. regulations and policies in place at that time. Development creating new floor area with net additional fixture units may require conversion of such new development to CITY water service consistent with then current City standards. 3 �- Attachment 3 d. Well Repair and Abandonment. In the event the abandonment of wells becomes necessary, OWNER shall comply with applicable State and County regulations regarding well abandonment. Nothing herein is intended or shall be construed to limit or restrict the OWNER's right to make such repairs and perform maintenance as necessary on its wells, to drill a new well or wells, or to alter or modify OWNER's groundwater rights. iii. Sewer Service. City agrees to provide sanitary sewer service to the PROPERTY upon request of the OWNER subject to the same laws, rules, regulations, and fees applicable to other new users in the City under similar circ5.unstances. Use of existing on-site septic systems may continue, including the right to expand, maintain and repair existing septic systems, including.but not limited to the leach lines, at the option of OWNER, for existing and approved on-site development, provided applicable State, County Health Department, and City standards are met. In the event of abandonment or failure of existing septic system(s), OWNER shall comply with applicable State and County regulations regarding septic tank repair or abandonment. B. EXISTING AND FUTURE DEVELOPMENT. Upon annexation, the PROPERTY may be further developed consistent with this Agreement and with CITY policies that would be applied to other properties in the City under similar circumstances including, but not limited to, the General Plan, the Airport Area Specific Plan (AASP), and other provisions of the Municipal Code and State Laws. i. Non-Conforming Uses. Annexation may affect new uses on PROPERTY but will not require change in existing uses on PROPERTY and to the extent, if any, that differences between the pre-annexation County zoning and City zoning exist, City will work hard to minimize those. Existing uses will be entitled to remain for as long as the OWNER and the business wants to keep them in use. Established existing uses on the PROPERTY that are not interpreted or found to conform to the list of allowed uses provided in the AASP, or the City's Zoning Regulations, shall be allowed to continue indefinitely, consistent with the CITY's zoning ordinance, as interpreted under the recitals of this Agreement. Non-conforming uses existing as of the date of annexation shall be allowed to continue and to relocate within existing structures located on the PROPERTY. CITY will endeavor to integrate such non-conforming uses into, and to provide for such uses on PROPERTY,:in the next revision of the CITY's zoning regulations and AASP. With the approval of an Administrative Use Permit, a non-conforming use maybe replaced with any other non-conforming use, provided the Hearing Officer determines that the new use has similar or less severe impacts on its surroundings in terms of noise, traffic, parlang demand, hours of operation and visual incompatibility. A non-conforming single-family home may be continued without limitation. ii. Expansion of Existing Uses. Nothing herein is intended to limit the addition or expansion of otherwise conditionally allowable uses, consistent with existing City procedures for review and approval of such additions and/or expansions. 4 C", Attachment 3 procedures for review and approval of such additions and/or expansions. iii. Non-Conforming Structures. The existing structures on PROPERTY lawfully existed on the date of annexation, and may be used indefinitely by OWNER and its successors in interest, including the right to maintain and make reasonable repairs to such structures and to replace the structures consistent with CITY regulations. Changes to structural elements (with the proper CITY permit), interior partitions or other nonstructural improvements and repair may be made to any of the structures. No required infrastructure or fees will result from annexation until and unless the commencement of new development or connection with CITY services is required or requested after annexation. C. COMPLIANCE WITH CITY STANDARDS. No pre-annexation CITY rules and regulations shall be applied retroactively to PROPERTY or improvements thereon, nor shall any OWNER or its successors in interest be required to pay for any infrastructure improvements or fees unless and until new development is proposed on PROPERTY or connection with CITY services is required or requested. Once annexed, the PROPERTY will be subject to the same rules, regulations, laws, fees, and taxes that would be applied to other properties, residences, businesses, and customers in the City, under similar circumstances and consistently with the good faith interpretation of the application of existing CITY plans, ordinances, zoning, taxes, and policies discussed herein. It is the belief and intent of the PARTIES that this Agreement is consistent with applicable municipal codes and state laws. D. PARKING. The current onsite parking practices for employees and customers may be continued as long as it is consistent with existing practices. The current onsite parking practices may continue indefinitely, and unless OWNER or a successor in interest expands or intensifies the operation, there is no need for additional parking spaces or to change the parking arrangement. E. PROPERTY IMPROVEMENTS. Only at the time of future development or redevelopment; commencing after the effective date of annexation, shall it be the responsibility of the OWNER to install and/or pay for improvements and fees which may be required by permit, law, rule, or regulation. For purposes of this Agreement, "future development or redevelopment" does not include completion of improvements for which permits have already issued (e.g. ongoing construction per building permits approved by the County, in connection with parapet repair and replacement). The Parties agree that the Map shall be processed through the City's standard development review process and that any conditions or requirements of Map approval shall be fair, reasonable and in proportion to the nature and scope of the project as proposed, or as subsequently amended by the OWNER in the course of the development review process. F. CITY BUSINESS LICENSES.In determining the appropriate City business 5 Attachment 3 treated in the same manner as any new business beginning operations within the City, so that the first year's tax shall be charged at the minimum rate then applicable. 3. ZONING. The Parties acknowledge that the current uses and structures on the PROPERTY, as of the effective date of the annexation, are permitted uses or legally non- conforming uses on the PROPERTY. CITY will endeavor to integrate such non-conforming uses into, and to provide for such uses on PROPERTY, in the next revision of the CITY's general plan, zoning regulations, and AASP. 4. WAIVER OF PROTEST RIGHTS. In exchange for the extension of City sewer and water services to the PROPERTY, OWNER expressly waives for itself and its successors, transferees, assignees, and subsequent'purchasers of the PROPERTY, or any portion thereof, the right to challenge or contest the validity of the annexation. 5. SUCCESSORS, HEIRS, AND ASSIGNS. This Agreement shall be recorded with the County Recorder and remain in effect and run with the PROPERTY until the termination or modification of this Agreement. The covenants established in the Agreement shall be binding on the PROPERTY, for the benefit and in favor of the CITY and OWNER and any successor in interest to the PROPERTY (or any part thereof). This Agreement is binding upon and shall inure to the benefit of the successors, heirs, assigns, and personal representatives of the PARTIES. 6. COSTS OF ANNEXATION. CITY, without reimbursement or contribution from OWNER, shall bear the full cost of annexation, including but not limited to LAFCO costs and compliance with the California Environmental Quality Act and other regulatory requirements. 7. AMENDMENTS, TME EXTENSION OR CANCELLATION. This Agreement may be amended, extended, or canceled at any time by mutual consent of the PARTIES or their successors in interest & DEFAULT; ATTORNEYS' FEES. Each Party shall have the right, if this Agreement or any of its covenants is breached, to exercise all rights and remedies and to maintain any actions or suits in law or in equity or other property proceedings to enforce the curing of such breach, to which it is entitled. Notwithstanding the foregoing, if a Party contends that another Party is in default hereunder such Party shall give ten (10) days written notice to cure the claimed default to the Party allegedly in default. In the event of any controversy, claim, or dispute relating to this agreement or the breach thereof, the prevailing Party shall be entitled to recover from the other Party its reasonable expenses, attorney's fees, and costs. 9. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered, or sent by registered or certified mail, postage prepaid,return receipt requested, or overnight courier, or facsimile, and shall be deemed received upon the earlier of(a) if personally delivered, the date of delivery to the address of the person to receive such notice, (b)if mailed, four(4)business days after the date of posting at United States Post Office (provided that the sender has in its possession the return receipt to prove actual delivery), (c) if given by overnight courier, upon receipt by the person to receive such notice (provided that the sending party receives a confirmation of actual delivery from the courier), or 6 Attachment 3 (d)if sent by facsimile, when sent unless after 5:00 PM at the place of sending in which case the notice shall be deemed received at 9:00 AM on the next business day. Any notice or other communication sent by facsimile must also be delivered by personal delivery, United States mail or overnight courier in accordance with the foregoing and such notice or communication must be personally delivered, deposited in the United States mail, or delivered to the overnight courier service within twenty-four(24)hours of the sending of the facsimile: To OWNER: THE DOLEzAL FAMILY LIMITED PARTNERSHIP Attn.; Warren Dolezal;Brad Dolezal. 4251 S. Higuera Street, Suite 900 San Luis Obispo, CA 93401 Facsimile: 805.784.0888 To CITY: CITY of SAN Luis OBISPO Atm.; City Clerk 990 Palm Street San Luis Obispo, CA 93401 Facsimile: 805.781.7109 With a Copy To: City of San Luis Obispo Attn.: City Attorney 990 Palm Street San Luis Obispo, CA 93401 Facsimile: 805.781.7409 Notice of change of address shall be given by written notice in the manner detailed in Section 9. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice or communication sent. 10. COUNTERPARTS. This Agreement may be executed in counterparts, each of which shall for all,purposes be deemed to be an original, and which shall together constitute but one and the same instrument. 11. TERM OF AGREEMENT. The term of this agreement shall begin upon the effective date of the annexation. The agreement shall remain in effect until modified or terminated by mutual consent of the PARTIES. In the event the annexation shall not be completed and become effective for any reason whatsoever, within a period of two years from the date of this Agreement, this Agreement shall terminate and have no force and effect, as if it had never been entered into by the PARTIES. 12. INTENT OF THE PARTIES. This Agreement is intended to set forth the PARTIES' understandings and agreements as to the annexation of the PROPERTY and to such other matters 7 Cry/� Attachment the PARTIES believe can be adequately addressed at this time. This Agreement represents the good faith interpretation of the application of existing CITY plans, ordinances and policies discussed herein to OWNER'S PROPERTY and it is the belief and intent of the PARTIES that this Agreement is consistent with applicable CITY plans, ordinances and policies. It is not the intention of the PARTIES to diminish or limit the CITY's non-delegable discretionary powers. The PARTIES expressly agree that they will fully perform this Agreement. IN WITNESS WHEREOF, this Agreement is executed on the date above stated at San Luis Obispo, California. r Si�gnaiures and Notarial Ackno 71edg men#s fallow on''suceessrve pagV1,; s Attachment 3 ALL SIGNATURES MUST BE NOTARIZED CITY: OWNER: CITY OF SAN LUIS OBISPO, THE DOLEZAL FAMILY LIMITED A Chartered Municipal Corporation PARTNERSHIP, A Nevada Limited Partnership BY: BY: Mayor David F. Romero Warren F. Dolezal General Partner ATTEST: State of California } County of San Luis Obispo } On May_, 2008,before me, , City Clerk Audrey Hooper a notary public for the State of California, personally appeared Warren Dolezal, who proved to me on the basis of satisfactory APPROVED AS TO FORM: evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that �A. by his signature on the instrument the entity upon behalf of which he acted, executed City Attomey Jonathan Lowell.1 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, Signature: [SEAL] 9 Q �d Attachment 3 NOTARIAL ACKNOWLEDGEMENTS State of California } County of San Luis Obispo } On May_, 2008, before me,. , a Notary Public for the State of California,personally appeared_ , who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the entity upon behalf of which he acted, executed the instrument. 1 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, Signature: _ [SEAL] State of California } County of San Luis Obispo } On May 2008, before me, , a Notary Public for the State of California,personally appeared , who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the entity upon behalf of which he 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, Signature: [SEAL] 10 Attachment 3 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY ��02� Attachent 3 File Number.t88000I7 Amended No.l LEGAL DESCRIMON That portion of Lot 1 of the Partition of Joseph$ee's Land in Sections 10 and 15,Township 31 South, Range 12 East,Mount Diablo Base and Meridian,in the County of San Luis Obispo,State of California, according to Map recorded in Book 1,Page 53 of Record of Surveys,described as follows: Beginning at a Stake marked No. 14, standing in the Eastdrly line of the San Luis Obispo and Avila Road,distant-5outh 29030'West,29832 feet$our theiatersection of said Easterly line of the San Luis Obispo and Avila Road with the Westerly line of the Buckley Road; Thence South 29030'West along the Easterly line of said San Luis Obispo and Avila Road,453.98 feet to the Northwest comer of the land described in-the deed to Tony S.Roderick,et ux.,recorded February it 1934 in Book 147,Page 87 of Official Records; Thence East along the North lime of the land described in the deed to Tony S.Roderick,et ux.,and along the North line of the land described in the deed to Pacific Qas and Electric Cony,a California Corporation,recorded June 4, 1954 in Book 759,Page 363 of Official Records,388.96 feet to a point on the center line of Buckley Road,said point also being the Northeast comer of the land described in the deed to Pacific Gas and Electric Company,a California Corporation; Thence North along the center line of said Buckley Road,351.28 feet to a stake markedNo. 1; Thence North 75'15' West, 171.60 feet to the Point of Beginning: Assessor's Parcel No: 076,071,013 End of Legal Description L l Attachment 3 EXIMIT B INVENTORY OF ESTABLISHED EXISTING USES ON PROPERTY Stated Uses City Land Use Bankinst Administration,Davelopment,Programming and Sery icing Banks and Financial Services Employment encies Business Support Services Small Scale Manufacturing Business Support Services Security Business Support Services Labor Union Club Lodge or Private meeting hall Oi Gong and Pilates Training Fitness/Health Facility Credit information Office—Processing Computer Software Development,Programming,Marketing and Sales Office—Processing Telecommuting and Internet Programming Administration Office—Protcessin Internet Service Providers Office—Processing Internet Marketing and Administration Office-Processing Wholesale Communications Sales Office—Processing Real Estate Offices Office-Business and Services Life and Health Insurance Brokers Office-Business and Services Engmeenng and Architecture Office—Production and Administrative Malin,Advertisin and Marketing Office—Production and Administrative Video Conferencin Office—Production and Administrative Media Progrararning,Scheduling and Product Sales Office—Production and Administrative Telemarketing and Internet Product Sales Office—Production and Administrative -Legal Attorneys Office—Professional Legal Remediation and Arbitration Office—Professional Certified Public Accountants/Income Tax Preparation Office—Professional Court Reporting Office—Professional Commercial and Residential Construction Office—Professional Financial Planning Office—Professional Medical and Acupuncom Medical Service—Doctor office Soeech and Hearine Therapy Medical Service—Doctor office Drug Testing Medical Service—Clinic Lab Urgent Care Home Medical Services and Administration Medical Service—Clinic Lab Urgent Care Automobile Advertising and Internet Marketing Photo hic Studio Conference Room Rentals Public Assembly Family Planning and Counseling Social Service Organization Educational Lesson Planning and Scheduling School—Specialized Education Religious Administration and Training School—Specialized Education Computer Traimag School-Specialized Education Cosmetic Sales,Distribution and Training School—Specialized Education Wholesaling&Distribution Wholesale Marketing and Distribution - Wholesaling&Distribution Professional An,Artist Sales and Exhibiting Studio—ArtDance O Attachment 3 EXHIBIT C VESTING TENTATIVE PARCEL MAP SLO 08 0020 Attachment 3 LU IOL t e > � eB �i ti a B-' IM Qcc oWgR I � z0 Ill j 9i i Qi LL VO O11 ! III! oval, i I ,; u I fn iBBBB1 ! ,�,B igi € aii B€�, i B B.agii �� Z j o m — °d i Q� —� Loa o ester I I I 4 e � � B�ii i�e i is B� B if is CO a Z�3 _ 9@�eBCO LLI z _ a N 1101 m stall o of 'o ^o d:i W - �N �N J - 1 s � / j . (il i i i m14�, "f r � �y a -- Attachment 4 e 5/14/08 REVISED DRAFT HANSON EDITS RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: CITY of San Luis Obispo CITY Clerk's Office 990 Palm Street San Luis Obispo, CA 93401-3249 APN: 076-352-025 PRE-ANNEXATION AGREEMENT BY AND BETWEEN THE CITY OF SAN LUIS OBISPO AND HANSON AGGREGATES WEST,INC. This Pre-annexation Agreement ("Agreement") is made and entered into this day of , 2008, by and between the CITY of San Luis Obispo, a chartered municipal corporation, (hereinafter referred to as "CITY") whose address is 990 Palm Street, San Luis Obispo, California 93401; and Hanson Aggregates West, Inc., with headquarters located at (hereinafter referred to as "HANSON"), pursuant to the authority of the CITY Charter and the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, California Government Code section 56000 et seq. CITY and HANSON shall hereinafter be referred to collectively as the"PARTIES." RECITALS WHEREAS HANSON is the owner in fee of certain real property in the County of San Luis Obispo, identified in the Assessor's Records as APN 076-352-025, with a street address at 131 Suburban Road, San Luis Obispo, California, further described in the attached Exhibit A (the "Property"); and WHEREAS CITY, by vote of its City Council on May 1, 2007 on File No. ANNX 172-05, has proposed that the Property be annexed to the City of San Luis Obispo along with other adjacent and nearby properties, and has applied to the Local Agency Formation Commission for San Luis Obispo County ("LAFCO") for such annexation pursuant to the procedures of California Government Code section 56000 et seq. (the "Annexation"); and WHEREAS the Property is located in an area identified by CITY as the Airport Area and is subject to an Airport Area Specific Plan ("AASP") and a related Facilities Masters Plan, which CITY has adopted for the purpose of identifying appropriate land uses for the Property and other properties within the Annexation area; and WHEREAS CITY anticipates that, upon annexation, the Property will be subject to the CITY's General Plan, the AASP, and all current and future zoning regulations adopted by the CITY; WHEREAS HANSON has objected to the Annexation of the Property to the extent that HANSON may be required, under the General Plan, the AASP or the CITY's Zoning 1 Attachment 4 a 5/14/08 REVISED DRAFT HANSON EDITS Regulations, to conform the Property to standards more stringent than those currently applicable to the Property under the zoning ordinances and prior approvals of the County of San Luis Obispo; and WHEREAS CITY has endeavored to address HANSON's concerns and resolve, to the greatest extent possible, HANSON's objections to the annexation of the Property; NOW THEREFORE, in consideration of the mutual promises, covenants and agreements stated herein, the PARTIES agree as follows: 1. BASELINE CONDITIONS. The PARTIES agree that the dimensions of the PROPERTY and the location and dimensions of all structures on the Property are substantially as depicted on Exhibit B hereto (the "Baseline Conditions"), which is incorporated herein by reference. The PARTIES acknowledge that the Baseline Conditions include the area defined for a new "reclaimer," which HANSON is installing as an environmentally-sound improvement and a replacement for the existing equipment used to manage process water from operations. The County of San Luis Obispo has reviewed HANSON's plans for the reclaimer and has provided planning and zoning clearance to HANSON based on consistency with a Development Plan for the Property approved by the Planning Commission of the County of San Luis Obispo on August 14, 1986 under County Resolution No. 86-76. CITY agrees to accept the County's planning and zoning determination, such that CITY will not require HANSON to apply for additional planning or zoning review by CITY and will permit HANSON to apply to C= for building, electrical and other"counter" permits in accordance with CITY standards. Any proposed discharge from the reclaimer to the CITY's sewer system shall comply with all applicable Federal, State and CITY discharge standards. 2. EXISTING AND FUTURE DEVELOPMENT POTENTIAL. The Parties acknowledge HANSON's concern that to have an economically viable concrete batching plant, HANSON likely will need to make adjustments in its operations over time, including modifications to structures or replacements of structures, consistent with changing industry standards and applicable environmental regulations. CITY specifically states its intention to facilitate HANSON's operation of an economically viable concrete batching plant on the PROPERTY for as long as it wishes to continue such operations, and to assist HANSON in making adjustments in its operations, including modifications to structures or replacement of structures, to the extent such modifications and replacements are consistent with the CITY's Municipal Code and/or its permitting procedures. Unless this Agreement allows otherwise, additional development of the PROPERTY after the effective date of the Annexation shall be subject to CITY policies that would be applied to other properties in the CITY under similar circumstances, including, but not limited to, the General Plan, the Airport Specific Plan and provisions of the Municipal Code and State laws. 2 C ;.26 g _ Attachment 4 5/14/08 REVISED DRAFT HANSON EDITS 3. FUTURE CONFORMING AND NONCONFORMING USES AND STRUCTURES. The PARTIES agree that the concrete batching plant on the Property is currently a legal use conditionally permitted in CITY's Manufacturing "M" zoning district proposed for the Property and that the structures identified as Baseline Conditions on Exhibit B, with the exception of the "bunkers" and the "batch plant," represent conforming structures under current CITY zoning requirements. The "bunkers" and the "batch plant" shall be deemed legally nonconforming structures. As to the existing legally non-conforming structures, and as to any use or structure subsequently made legally nonconforming by CITY's adoption of changes in its Zoning Regulations (Title 17 of the Municipal Code), the following shall apply: A. Non-Conforming Uses. Established existing uses that become nonconforming under CITY's Zoning Regulations and/or the AASP shall be allowed to continue indefinitely. When a non-conforming use ceases for a period of six months, the non- conforming status will be lost and any new use must conform to current zoning as well as the AASP. With the approval of an Administrative Use Permit, CITY shall allow HANSON to replace a non-conforming use with any other non-conforming use, provided that CITY's Hearing Officer determines that the new use has similar or less severe impacts on its surroundings in terms of noise, traffic, parking demand, hours of operation and visual incompatibility. A non-conforming single-family home may be continued without limitation. B. Expansion of Existing Uses. With the approval of an Administrative Use Permit, expansion of the existing use shall be allowed. C. Non-Conforming Structures. HANSON and its successors in interest may continue to maintain and occupy any structure legally existing at the time such structure becomes nonconforming under zoning, and shall have the right to make reasonable repairs to such structures and to replace the structures consistent with CITY regulations. CITY acknowledges that height limitations under its existing Zoning Regulations may be an impediment to HANSON's ability to make necessary improvements to its plant. CITY agrees to consider amendments to its Zoning Regulations that will have the effect of rendering nonhabitable structures necessary to plant operations conforming under CITY standards. 4. URBAN SERVICES. Upon annexation, the Property shall be entitled to the full range of CITY services on the same terms and conditions applicable to all CITY properties, including but not limited to water and sewer services, police and fire protection, and general government services, some of which are described below in more detail: A. Water Service. Upon request of HANSON, CITY agrees to provide water service to the Property, as available, for fire fighting and domestic purposes, subject to the same laws, rules, regulations, and fees applicable to other new users in the CITY. HANSON shall not be required to purchase water from CITY and may continue to use indefinitely groundwater from 3 C Attachment 4 5/14/08 REVISED DRAFT HANSON EDITS its on-site well sources for all existing development, including but not limited to landscaping and the production of concrete, in lieu of or in addition to any water service made available by CITY, provided that applicable State, County and City standards are met. Use of groundwater for new development will comply with CITY policies and standards. In the event of abandonment of well(s), HANSON shall comply with applicable State and County regulations regarding well abandonment. B. Sewer Service. CITY agrees to provide sanitary sewer service, as available, to the subject property upon request of the HANSON subject to the same laws, rules, regulations, and fees applicable to other new users in the CITY under similar circumstances. Use of existing on-site septic systems may continue for approved on-site development, provided applicable State, County and CITY standards for commercial discharges are met. Use of existing on-site septic systems for new development will not be permitted. In the event of abandonment or failure of existing septic system(s), HANSON shall comply with applicable State, County and CITY regulations regarding septic tank repair or abandonment. 5. COMPLIANCE WITH CITY STANDARDS. Once annexed, the Property will be subject to the same rules, regulations, laws, fees, and taxes that would be applied to other properties, residences, businesses, and customers in the CITY under similar circumstances including, but not limited to the Building Code, Fire Code, Zoning Regulations, environmental regulations (California Environmental Quality Act), fees, taxes (including business taxes and utility user taxes) and other provisions of the Municipal Code and state laws, subject to the clarifications set forth in this Agreement. 6. PROPERTY IMPROVEMENTS. At the time of future development or redevelopment, it shall be the responsibility of HANSON to install and/or pay for improvements and fees which may be required by permit, law, rule, or regulation. 7. WAIVER OF PROTEST RIGHTS. HANSON expressly waives for itself and its successors, transferees, assignees, and subsequent purchasers of the Property, or any portion thereof, the right to challenge or contest the validity of the annexation of the Property under CITY's pending Annexation application. In the event that CITY's pending application to LAFCO pursuant to CITY's File No. ANNX 172-05 does not result in the annexation of the Property, HANSON's waiver under this section shall be void for all other purposes, including but not limited to any subsequent efforts of CITY to annex the Property. 8. TERM OF AGREEMENT. The term of this Agreement shall begin upon the effective date of the Annexation, as the same may be determined under applicable provisions of California Government Code section 56000 et seq. This Agreement shall remain in effect until modified or terminated by mutual consent of the PARTIES. In the event the Annexation does not become effective for any reason whatsoever, this Agreement shall terminate and have no force and effect, as if it had never been entered into by the PARTIES. 4 Attachment 4 5/14/08 REVISED DRAFT HANSON EDITS 9. SUCCESSORS, HEIRS, AND ASSIGNS. This Agreement shall be recorded with the County Recorder and shall bind and inure to the benefit of the successors, heirs, assigns, and personal representatives of the PARTIES. 10. AMENDMENTS, TIME EXTENSION OR CANCELLATION. This Agreement may be amended, extended, or canceled at any time by mutual consent of the PARTIES or their successors in interest. 11. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of California. IN WITNESS WHEREOF, the PARTIES have executed this Agreement on the date above stated. ALL SIGNATURES MUST BE NOTARIZED HANSON BY: CITY OF SAN LUIS OBISPO, A Chartered Municipal Corporation BY: Mayor David F. Romero ATTEST: CITY Clerk Audrey Hooper APPROVED AS TO FORM: C Attorney Jonathan Lowell 5