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.
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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
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Item 12
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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.
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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 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:
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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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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