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HomeMy WebLinkAbout04-16-2019 Item 12, Ordinance Adoption - Approving Avila Ranch Development Agreement Amendment Department Name: Community Development Cost Center: 40200 For Agenda of: April 16, 2019 Placement: Consent Estimated Time: N/A FROM: Michael Codron, Director of Community Development SUBJECT: ADOPT AN ORDINANCE APPROVING 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 Adopt an Ordinance (Attachment A) to appro ve 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. DISCUSSION On April 2, 2019 the City Council voted 5-0 to introduce an ordinance approving the first amendment to the Avila Ranch Development Agreement. An amendment to the Development Agreement is necessary 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. The Ordinance becomes effective 30 days after its adoption. 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. Packet Pg. 87 Item 12 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 t he 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. ENVIRONMENTAL REVIEW On September 19, 2017, the City Council approved Resolution No. 10832 (2017 Series) which certified an Environmental Impact Report (“EIR”) fo r 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 the First Amendment to the Avila Ranch Development Agreement Packet Pg. 88 Item 12 O ______ ORDINANCE 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 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. Packet Pg. 89 Item 12 O ______ 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 Packet Pg. 90 Item 12 O ______ 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 Packet Pg. 91 Item 12 O ______ 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 sit e 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: Packet Pg. 92 Item 12 O ______ 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 Packet Pg. 93 Item 12 Page intentionally left blank. Packet Pg. 94 Item 12 1010 Marsh St., San Luis Ob (805) 546-8208 . FAX (8C 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: A0" in the year4019. I certify (or declare) under the the penalty of perjury that the foregoing is true and correct. Dated at San Luis Obispo, CaliFQria, this day 1 k ol-. � LSC i ■ , 2019. IF k& sz��_4 Patricia Horton, New Times Legals Adin,& P,si .l/•NI'MOAJmin/NTAIO Offt,43LISINGSS/Public Wie 111 wl al Pub Proof ORDINANCE NO.1662 (2019 Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING 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, AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED APRIL 2, 2019 NOTICE IS HEREBY GIVEN that the City Council of the City of San Luis Obispo, California, at its Regular Meeting of April 2, 2019, introduced the above titled ordinance upon a motion by Council Member Christianson, second by Council Member Gomez, and on the following roll call vote: AYES: Council Members Aaron Gomez, Carlyn Christianson, Erica Stewart, Vice Mayor Andy Pease, and Mayor Heidi Harmon NOES: None Ordinance No. 1662 (2019 Series) - 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 project as approved includes a Development Agreement (DA) and is envisioned to implement the policies and development parameters as articulated in the 2014 Land Use and Circulation Elements (LUCE) update. An amendment to the Development Agreement has been approved 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. NOTICE IS HEREBY FURTHER GIVEN that the City Council of the City of Sah Luis Obispo will consider adopting the aforementioned Ordinance at its Regular Meeting of April 16, 2019 at 6:00 p.m., which will be held in the Council Chamber, located at 990 Palm Street; San Luis Obispo, California. Copies of the complete ordinance are available in the City Clerk's Office in City Hall and online atwww. slocity.org. For more information, contact Michael Codron,781-7187. Teresa Purrington City Clerk April 11, 2019