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Home My WebLink AboutO-1662 approving a first amendment to the development agreement regarding the Avila Ranch ProjectORDINANCE NO. 1662 (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 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. 01662 Ordinance No. 1662 (2019 Series) Page 2 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. 01662 Ordinance No. 1662 (2019 Series) Page 3 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 2nd day of April 2019, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 16th day of April 2019, on the following vote: AYES: Council Members Christianson, Gomez, and Stewart, Vice Mayor Pease and Mayor Harmon NOES: None ABSENT: None ATTEST: �4 l Teresa Purrington City Clerk VED AS TO FORM: 1. 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 26 day of XQpr, t , 2019. Teresa Purrington City Clerk 01662 Ordinance No. 1662 (2019 Series) EXHIBIT 1 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 Page 4 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: 01662 Ordinance No. 1662 (2019 Series) EXHIBIT 1 (b) The Developer shall be required to pay all City-wide, and Project -specific development impact fees, excluding sewer and water impact fees addressed in section 5.04.2(c) immediately below, for the Project's fair share of the cost to mitigate Project impacts as identified in the Final Environmental Impact Report (FEIR), Specific Plan, conditions of approval or otherwise specified in the Development Agreement in effect when each final map is recorded in accordance with AB 1600 analysis. City may adjust development impact fees not more than once a year with changes no greater than the inflation index identified upon imposition of the fee. The Developer shall be required to pay the Los Osos Valley Road (LOVR) Interchange Impact Fees as revised generally consistent with the impact fee methodology set forth in the April 3, 2018 letter agreement between the City and Developer. 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: L50 APPROVED AS TO FORM: WE J. Christine Dietrick, City Attorney AVILA RANCH, LLC 51 Andrew D. Mangano Its: Managing Member Page 5 01662