HomeMy WebLinkAbout04-02-2019 Item 14 - Ordinance Introduction for Avila Ranch Development Agreement Amendment
Department Name: Community Development
Cost Center: 40200
For Agenda of: April 2, 2019
Placement: Public Hearing
Estimated Time: 15 Minutes
FROM: Derek Johnson, City Manager
Prepared By: Michael Codron, Director of Community Development
SUBJECT: ORDINANCE INTRODUCTION TO APPROVE THE FIRST AMENDMENT
TO THE AVILA RANCH DEVELOPMENT AGREEMENT TO RECOGNIZE
THE INTENT OF BOTH THE CITY AND THE DEVELOPER THAT THE
PROJECT BE SUBJECT TO FEES INCLUDED IN THE PENDING UPDATE
OF THE LOS OSOS VALLEY ROAD FEE PROGRAM
RECOMMENDATION
As recommended by the Planning Commission, introduce an ordinance (Attachment A) to
approve the First Amendment to the Avila Ranch Development Agreement, which ensures that
the project will be subject to the fees included in a pending update of the Los Osos Valley Road
fee program, rather than the current fees.
DISCUSSION
Background
Avila Ranch, LLC has an approved development agreement related to its residential
development with up to 720 units on a 150-acre site north of Buckley Road within the
boundaries of the Airport Area Specific Plan (“AASP”). The approved project plans also include
a “Town Center” with 15,000 square feet of neighborhood-serving retail and office uses next to a
neighborhood park, as well as the preservation of some of the existing onsite agricultural uses
and open space. The project as approved includes a Development Agreement and is envisioned
to implement the policies and development parameters as articulated in the 2014 Land Use and
Circulation Elements (LUCE) update, other elements of the General Plan, the Airport Area
Specific Plan, and the City’s Community Design Guidelines.
An amendment to the Development Agreement is now proposed to address a delay in the
completion of an update to the Los Osos Valley Road (LOVR) Interchange Impact Add-On Fee.
The City had committed to updating this fee program to reflect the land uses within the Avila
Ranch project and changes to other land uses contemplated within the fee program area. Avila
Ranch is now ready to record the first phase of its Final Map for the subdivision, however,
according to the DA doing so would lock fees in place at their current amounts. Because the
current fee structure does not accurately reflect the land uses in the Avila Ranch project, an
update to the DA to allow for this fee to be updated in the future is necessary.
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Scope of Amendment
The proposed amendment is provided in its entirety in Exhibit 1 to the recommended ordinance
(Attachment A), and the complete text changes to Section 5.04.2 of the DA follow.
The City has retained a consultant, Economic and Planning Systems (EPS), to complete the fee
program update. The fee program update was contemplated to have occurred during the summer
of 2018 (Attachment B), but initiation of this fee program update was delayed and is now
contemplated to be completed during Summer 2019.
Planning Commission Review
The Planning Commission reviewed this item on March 13, 2019, and recommended approval to
the City Council after confirming that impact fees are due and payable at the time of building
permit issuance.
Policy Context
The recommendation is consistent with the original approval and is necessary to ensure that the
Development Agreement reflects the intent of both the City and the Developer to pay an updated
fee for the Avila Ranch project. The updated fee will ensure that appropriate infrastructure is
provided to serve the development, consistent with City policy.
Public Engagement
Public engagement was performed at the “inform” level of outreach, which entails official notice
and two public hearings in this case. In addition, the recommended action would introduce an
ordinance with final approval proposed to occur after published notice of the action in the local
newspaper.
CONCURRENCE
The City’s Finance and Administration Departments concur with this recommendation.
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ENVIRONMENTAL REVIEW
On September 19, 2017, the City Council approved Resolution No. 10832 (2017 Series) which
certified an Environmental Impact Report (“EIR”) for the Project. The Planning Commission
determined in its recommendation to the City Council that Amendment No. 1 to the DA is not a
“project” as defined by CEQA Guidelines Section 15378. Section 5 of the proposed ordinance
further finds and determines that even if Amendment No. 1 to the DA is a project as defined by
CEQA, no further environmental review is needed per CEQA Guidelines Section 15162, because
Amendment No. 1 to the DA does not involve substantial changes to the project, does not
involve substantial changes regarding the circumstances under which the project is undertaken,
does not cause any new or more severe significant effects on the environment, and does not
affect the feasibility nor materially alter any mitigation measure.
FISCAL IMPACT
The action of amending the existing Development Agreement will have no fiscal impact on the
City and is intended to clarify the intent of both parties to the agreement. However, it will allow
for impact fees related to the development to be updated and therefore guarantee appropriate fee
levels being collected in the future.
ALTERNATIVE
Do not amend the Development Agreement. This alternative is not recommended because not
amending the Development Agreement would cause a delay in the recording of the final map for
the first phase of the Avila Ranch development pending completion of the pending fee program
update.
Attachments:
a - Ordinance approving First Amendment to the Avila Ranch Development Agreement
b - Letter Agreement Between City and Developer
c - Reading File - Consolidated Avila Ranch Development Agreement
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ORDINANCE NO. _____ (2019 Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA APPROVING A FIRST AMENDMENT TO THE
DEVELOPMENT AGREEMENT BETWEEN THE CITY OF SAN LUIS
OBISPO AND AVILA RANCH, LLC REGARDING THE AVILA RANCH
PROJECT
WHEREAS, on October 3, 2017, the City of San Luis Obispo (City) adopted Ordinance
No. 1639 approving a Development Agreement (the “DA”) between the City and Avila Ranch,
LLC (“Developer”) regarding the Avila Ranch project located on a 150-acre site North of Buckley
Road (the “Project”); and
WHEREAS, Section 5.04.2(b) of the DA needs to be amended because the timing of
recordation of the final map for phase 1 of the Project is now anticipated to occur prior to the
City’s update to the Los Osos Valley Road (“LOVR”) Interchange Impact Fees; and
WHEREAS, it is the intent of the City and Developer to make development in the phase
1 final map area subject to the updated LOVR Interchange Impact Fees, and not the current fees;
and;
WHEREAS, all transportation impact fees are required to be paid at the time of building
permit issuance.
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of San Luis
Obispo as follows:
SECTION 1. Recitals. The above recitals are true and correct and are incorporated herein
by this reference.
SECTION 2. Findings. The City Council hereby finds based on evidence, as follows:
a) The proposed amendment to the DA attached hereto as Exhibit “1” is consistent with
the General Plan and Airport Area Specific Plan;
b) The proposed amendment to the DA complies with the City’s zoning regulations, the
subdivision ordinance, and other applicable ordinances and regulations;
c) The proposed amendment to the DA implements the spirit and intent of the DA, allows
the approved Project to move forward and therefore promotes the general welfare,
allows more comprehensive land use planning, and provides substantial public benefits
or necessary public improvements, making it in the city’s interest to amend the DA;
and
d) The proposed amendment to the DA will not adversely affect the health, safety, or
welfare of persons living or working in the surrounding area.
e) Nothing about the amendment to the DA affects the location or the nature or scope of
the Project and therefore, as previously determined on October 3, 2017, the Project
continues to be appropriate at the proposed location and will be compatible with
adjacent land uses.
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SECTION 3. Action. Amendment No. 1 to the DA is hereby approved.
SECTION 4. Effective Date. Upon the effective date of this Ordinance as provided in
Section 6, the Mayor and City Clerk are hereby authorized and directed to execute Amendment
No. 1 to the DA, and upon full execution, record the fully executed document in the Official
Records of San Luis Obispo County.
SECTION 5. Environmental Review. On September 19, 2017, the City Council approved
Resolution No. 10832 (2017 Series) which certified an Environmental Impact Report (“EIR”) for
the Project. The City Council finds that Amendment No. 1 to the DA is not a “project” as defined
by CEQA Guidelines Section 15378. The City Council further finds and determines that even if
Amendment No. 1 to the DA is a project as defined by CEQA, no further environmental review is
needed per CEQA Guidelines Section 15162, because Amendment No. 1 to the DA does not
involve substantial changes to the project, does not involve substantial changes regarding the
circumstances under which the project is undertaken, does not cause any new or more severe
significant effects on the environment, and does not affect the feasibility nor materially alter any
mitigation measure. Moreover, the City Council hereby determines that Amendment No. 1 to the
DA is statutorily exempt from environmental review pursuant to CEQA Guidelines Section 15273.
Amendment No. 1 to the DA simply modifies the contractually created vesting status of the LOVR
fees that the developer will need to pay which is, in some essence, a restructuring of how LOVR
fee will be implemented in regards to the Project and thus statutorily exempt under this section.
Furthermore, the City Council finds and determines that Amendment No. 1 to the DA is otherwise
exempt from environmental review pursuant to CEQA Guidelines Section 15061(b)(3). The
activity is covered by the general rule which exempts activities that can be seen with certainty to
have no possibility for causing a significant effect on the environment. Amendment No. 1 to the
DA simply affects the contractually created vesting status of the LOVR fees that the developer
will need to pay. The amendment does not change anything physical about the Project, does not
change any land uses, or the intensity or manner of development.
SECTION 6. Summary. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days prior to its final passage,
in the Tribune, a newspaper published and circulated in this City. This ordinance shall go into
effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the _____ day of ____________, 2019, AND FINALLY ADOPTED
by the Council of the City of San Luis Obispo on the _____ day of _________________, 2019, on
the following vote:
AYES:
NOES:
ABSENT:
______________________________
Mayor Heidi Harmon
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ATTEST:
_________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
__________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Teresa Purrington
City Clerk
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Exhibit 1
Recording Fees Exempt pursuant to
Government Code § 27383
Recording Requested by
and when recorded return to:
City of San Luis Obispo
c/o City Clerk
990 Palm Street
San Luis Obispo, CA 93401
AMENDMENT NO. 1 TO DEVELOPMENT AGREEMENT BY AND
BETWEEN THE CITY OF SAN LUIS OBISPO AND AVILA RANCH, LLC
RELATING TO THE AVILA RANCH SPECIFIC PLAN
This Amendment No. 1 to Development Agreement (“Amendment No. 1”) is entered
into this _____ day of ______, 2019, by and between, the City of San Luis Obispo, a municipal
corporation and charter city (“City”) and Avila Ranch, LLC, a California limited liability
company (“Avila Ranch” or “Developer”), hereinafter referred to in this Amendment No. 1 as
“Party” and collectively as the “Parties,” as appropriate.
WHEREAS, on October 3, 2017, City adopted Ordinance No. 1639 approving a Development
Agreement (the “DA”) between the City and Avila Ranch, LLC regarding the Avila Ranch project
located on a 150-acre site North of Buckley Road (the “Project”); and
WHEREAS, Section 5.04.2(b) of the DA needs to be amended because the timing of recordation
of the final map for phase 1 of the Project is now anticipated to occur prior to the City’s update
to the Los Osos Valley Road (“LOVR”) Interchange Impact Fees.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Parties agree as follows:
1. Recitals. The above recitals are true and correct and are incorporated herein by this
reference.
2. Effective Date of Amendment. This Amendment No. 1 shall become effective upon the
date that the ordinance approving this Amendment No. 1 becomes effective.
3. Amendment: Section 5.04.2(b) of the DA is hereby amended to read as follows:
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4. Except as set specifically modified herein, the DA remains in full force and effect.
From and after the effective date of this Amendment No. 1, all references in this
Amendment to the DA shall be and be deemed to constitute references to the DA
as amended thereby.
5. Counterparts. This Amendment No. 1 may be executed in counterpart, each of
which shall be deemed an original but which together shall constitute one and the
same instrument.
IN WITNESS WHEREOF, the Parties have executed this Amendment No. 1 as of
the first date above.
CITY:
By:__________________________
Heidi Harmon, Mayor
APPROVED AS TO FORM:
By: __________________________
J. Christine Dietrick, City Attorney
AVILA RANCH, LLC
By:
___________________________
Andrew D. Mangano
Its: Managing Member
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4/2/2019 Item 14, Staff Presentation
1
Avila Ranch Development
Agreement - Amendment #1
April 2, 2019
Recommendation
As recommended by the Planning Commission,
introduce an ordinance to approve the First
Amendment to the Avila Ranch Development
Agreement, which ensures that the project will
be subject to the fees included in the pending
update of the Los Osos Valley Road fee
program, rather than the current fees.
2
1
2
4/2/2019 Item 14, Staff Presentation
2
Next Steps
April 16: Second reading and adoption of ordinance
June 18: Review and adoption of an updated LOVR
Fee program
3
3
1010 Marsh St., San Luis Obispo, CA 93401
(805) 546-8208 . FAX (805) 546-8641
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the united States and a
resident of the county aforesaid; I am over the
age of eighteen years, and not a party interested
in the above entitled matter. I am the principal
clerk of the printer of the New Times, a
newspaper of general circulation, printed and
published weekly in the City of San Luis
Obispo, County of San Luis Obispo, and which
has been adjudged a newspaper of general
circulation by the Superior Court of the County
of San Luis Obispo, State of California, under
the date of February 5, 1993, Case number
CV72789: that notice of which the annexed
is a printed copy (set in type not smaller than
nonpareil), has been published in each regular
and entire issue of said newspaper and not in
any supplement thereof on the following dates,
to -wit:
/ ,L,c &� z `
in the year 2019.
1 certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dated at San Luis Obispo Calirbia. this
day�of , 2019.
Patricia Horton, New Times Legals
Aft,! � Nr,o ,1!-NTMG?.Jini WNTM(1 OO ,013U.SINC,SS/ OF, Noi!0,,/Pw,f,4 VUM1
Proof of Publication of
SLO CITY CLURK
SAN LUIS OBISPO CITY
COUNCIL
NOTICE OF PUBLIC HEARING
The San Luis Obispo City Council invites all interested
persons to -attend a publli on Tuesday, April 2,
2019, at 6:00 p.m. In the City Hall Council Chamber, 980
Palm Street, San Luis Obispo, California, to consider the
following items:
SAN LUIS RANCH COMMUNITY FACILITIES DISTRICT -
1035 Madonna Road
Introduce an Ordinance entitled; An Ordinance of the
City of San Luis Obispo, Calllfomia, levying special taxes
within the City of San Luis Obispo Community Facilities
District No. 2019-1 (San Luis Ranch►."
Introduce an 0rdin:ulc0 entille1, An Ord Inonce of the CI1.y
of San Luis Obiapo, Cxllfomio. adding Chapter 2.43 o1
the City of San Luis Obispo Mon10pal Code aatablfshinu
election boundary for Mello -Roos Community Facilltios
Matrlat Initiative and Referendum Measures."
•AVILA RANCH DEVELOPMENT AGREEMENT -
175 Venture Drive
Review of an amendment to the Avila Ranch Development
Agreement, specifically with respect to Section 5.04.2(b) and
the timing of the contractual vested status of the Los Osos
Valley Road Interchange Impact Fee. Case 1f: OTHR 0455-
2017; Avila Ranch, LLC, applicant.
For more information, you are invited to contact Michael
Codron of the City's Community Development Department at
(805) 781-7187, or by email, mcodron®slocity.org.
The City Council may also discuss other hearings or business
items before or after the items listed above. If you challenge
the proposed project in court, you may be limited to raising
only those issues you or someone else raised at the public
hearing described in this notice, or in written correspondence
delivered to the City Council at, or prior to, the public hearing.
Reports for this meeting will beavailable for review in the
City Clerk's Office and online at www'slocity.org on March
27, 2019. Please call the City Clerk's Office at (805) 781-
7100 for more information. The City Council meeting will be
televised live on Charter Cable Channel 20 and live streaming
on www.slocity.org.
Teresa Purrington
City Clerk
City of San Luis Obispo
March 21, 2019