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17-0516_SOUTH COAST INVESTORS II, LLC_D2_Agenda ReportCity of San Juan Capistrano Agenda Report TO: Honorable Mayor and Members of the City Council FROM: ø*Siegel, City Manager SUBMITTED BY: Joel Rojas, Development Services Director PREPARED BY: David Contreras, Senior Planner DATE: May 1 6,2017 5t16t2017 D2 Consideration of an Ordinance Amending the Development Agreement (DA) Amendment 17-001 and a Finding of Consistency with Previously Certified Environmental lmpact Report (ElR), Plaza Banderas Hotel; Consideration of the "Second Amendment to Development Agreement" Extending the Term of the Development Agreement for an Additional One Year Period Between the City of San Juan Capistrano and South Coast lnvestors ll, LLC for a 3.18- Acre Site Located at 26891 Ortega Highway (Assessor Parcel Numbers 124-170-12, 14, 15, & 16)(Applicant: South Coast lnvestors ll, LLC) SUBJECÏ RECOMM NDATION: Open the public hearing, receive testimony, close the public hearing and by motion: 1. Find that the recommendation from the Planning Commission that the Second Amendment to the Development Agreement is consistent with the previously certified Environmental lmpact Report (ElR) that was prepared and approved for the Plaza Banderas Hotel and Mixed Use Project and was certified by the City Council (Resolution 10-10-05-05) on October 5, 2010 (SCH #2010051075). 2. Approve first reading and introduction of an Ordinance amending the Development Agreement for the Plaza Banderas Hotel project, thereby granting the Second Amendment to Development Agreement and providing a one-year extension to the term from August 3,2017 to August 3, 2018. City Council Agenda Report May 16,2017 Paoe 2 of 3 EXECUTIVE SUMMARY: On March 27, 2017, Rutan & Tucker, LLP, representing South Coast lnvestors ll, LLC, submitted a request to extend the term of the Development Agreement by and between the City of San Juan Capistrano and Stroscher G3, LLC, predecessor-in-interest to South Coast lnvestors ll, LLC, for an additional one-year period. The current Development Agreement for the Plaza Banderas Hotel and Mixed Use Project expires on August 3,2017. The applicant has requested to extend the term of the Development Agreement for the second of three one-year extensions, pursuant to Section 2.3 of the Development Agreement. The requested amendment would extend the term of the Development Agreement to August 3,2018. On April 25,2017, the Planning Commission adopted a resolution recommending City Council approval of the requested extension. DISCUSSION/ANALYSIS: On July 5, 2011, the City Council adopted Ordinance 988, approving the Plaza Banderas Hotel and Mixed Use Project Development Agreement. The Development Agreement's initial term was for five years and provided that the property owner could request that the City extend the initial term for up to three, one-year extensions. On May 17, 2016, the City Council approved the first one-year extension, extending the term of the Development Agreement for the first time from August 3, 2016 to August 3, 2017. The applicant has completed demolition work and rough grading on the property and has installed a sound wall as required per the certified Environmental lmpact Report (FEIR). The applicant is currently completing the construction plans for the Plaza Banderas Hotel project, which will be subject to review by the Design Review Committee (DRC). The requested second extension would provide additional time for the applicant to complete the construction plans. FISCAL IMPACT The City's processing costs associated with this project are being funded by the applicant through a developer deposit account. ENVIRONME IMPACT A previously certified Environmental lmpact Report (ElR) was prepared and approved for the Plaza Banderas Hotel and Mixed Use Project and was certified by the City Council (Resolution 10-10-05-05) on October 5, 2010 (SCH #2010051075). The Development Agreement and subsequent amendments thereto are consistent with the certified EIR; therefore, the EIR serves as the environmental documentation for this Development Agreement Amendment under provisions of California Environmental Quality Act Section 21157 .1 . City Council Agenda Report May 16,2017 Paoe 3 of 3 PRIOR CITY COUNCIL REVIEW On July 5, 2011, the City Council adopted Ordinance 988, approving the Plaza Banderas Hotel and Mixed Use Project Development Agreement. On May 17,2016, the City Council adopted Ordinance 1033, approving a first amendment to the Development Agreement for the Plaza Banderas Hotel project; thereby extending the term of the Development Agreement from August 3,2016, to August 3, 2017. COMMISSIO M ITTEE/BOARD REVIEW AND RECOMMENDATIONS a On April 25,2017, the Planning Commission adopted a resolution recommending City Council approval of a Second Amendment to the Development Agreement, thereby granting a one-year extension to the term of the agreement from August 3, 2017, to August 3, 2018. Commissioner Williams was selected as the affirmative representative and Commissioner Speros as the alternate affirmative representative to attend the City Council meeting. NOTIFICATION Pursuant to Title 9, Land Use Code, Section 9-2.302(f), Notification Procedures, a public hearing notice has been mailed to all property owners within 1,000 feet as listed on the Orange County Real Property Tax Assessment rolls and has been published in the Orange County Register at least 10 days prior to the hearing. Jake Griffith William Griffith Dan Friess ATTACHMENT(S): Attachment 1 - Draft Ordinance - lncluding the Amendment to DevelopmentAgreement Attachment 2 - Planning Commission Resolution Attachment 3 - Letter, Rutan & Tucker, LLP Attachment 4 - *** 2011 Development Agreement *** Available for review in the City Clerk's Office a ORDINANCE NO. AN ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO APPROVING AND ADOPTING A SECOND AMENDMENT TO THE DEVELOPMENT AGREEMENT FOR THE PLAZA BANDERAS HOTEL AND MIXED USE PROJECT, BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND SOUTH COAST INVESTORS II, LLC, EXTENDING THE TERM OF THE DEVELOPMENT AGREEMENT FROM AUGUST 3, 2017 TO AUGUST 3, 2018, FOR A 3.I8.ACRE SITE LOCATED AT 26891 ORTEGA HIGHWAY (ASSESSOR PARCEL NUMBERS 124-170- 12, 14, 15, &16) (APPLICANT: JAKE GRIFFITH, SOUTH COAST TNVESTORS ll, LLC) (THE "PLAZA BANDERAS HOTEL PROJECT") WHEREAS, South Coast lnvestors ll, LLC ("South Coast") has requested approval of a second amendment to the Development Agreement between the City and South Coast for "Plaza Banderas Hotel and Mixed Use Project", which Agreement was originally executed in 2011 , by and between the City and Stroscher G3, LLC; and, WHEREAS, in 2015, Stroscher G3, LLC, assigned its interest in and to the property subject to the Development Agreement to South Coast, and the City duly approved said assignment; and, WHEREAS, on May 17, 2016, the City Council approved first reading and introduction of an Ordinance amending the Development Agreement for the Plaza Banderas Hotel and Mixed Use Project, extending the term of the Development Agreement from August 3,2016 to August 3, 2017; and, WHEREAS, on June 6, 2016, the City Council approved second reading of an ordinance to amend the Development Agreement for the Plaza Banderas Hotel and Mixed Use Project, extending the term of the Development Agreement from August 3, 2016 to August 3,2017; and, WHEREAS, if approved, the proposed second amendment to the Development Agreement ("Second DA Amendment") would extend the term of the Development Agreement by one (1) year to August 3, 2018, and all other aspects of the Development Agreement would remain the same; and, WHEREAS, the potential environmental impacts of the proposed Second DA Amendment have been previously addressed in full compliance with the provisions of the California Environmental Quality Act (CEQA) and its Guidelines, and no further environmental analysis is required prior to the approval of the proposed Second DA Amendment because: a) The environmental impacts of the Plaza Banderas Hotel Project have been fully analyzed by the Plaza Banderas Hotel Final Environmental lmpact Report ('ElR') certified by the City Council on October 5,2010; and, ATTACH,VIENT 1 b) The proposed Second DA Amendment does not propose any change in the previously approved project or any change which could potentially result in either a direct or indirect physical change in the environment, the proposed Second DA Amendment will not result in new, potentially significant environmental effects; and, c) None of the conditions described in CEQA Guidelines Sections 15162,15163, or 15164 which would call for the preparation of a Subsequent or Supplemental ElR, or an EIR Addendum, would occur as a result of the proposed Second DA Amendment; and, WHEREAS, on April 25, 2017, the Planning Commission conducted a duly noticed public hearing pursuant to the provisions of Section 9-2.335 of Title 9, Land Use Code, Administrative Policy 409, and Planning Department Policy 510 to consider public testimony on the proposed project, and adopted a resolution recommending that the City Council approve the Second DA Amendment; and, WHEREAS, the City Council conducted a duly-noticed public hearing on May 16, 2017 pursuant to Government Code Section 65867 and Title 9, Land Use Code, Section 9-2.302 to consider the proposed Second DA Amendment, and the City Council has considered all relevant public testimony; and, WHEREAS, the record of proceedings on which the City Council's decision is based is located at City Hall for the City of San Juan Capistrano, located at 32400 Paseo Adelanto, San Juan Capistrano, California and the custodian of record of proceedings is the City Clerk. NOW THEREFORE, THE C¡TY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Recitals. The above recitations are true and correct and are adopted as the findings of the City Council. SECTION 2. CEQA. The City Council does hereby find that the second amendment to the Development Agreement is consistent with the previously certified Environmental lmpact Report (ElR) that was prepared and approved for the Plaza Banderas Hotel and Mixed Use Project and was certified by the City Council (Resolution 10-10-05-05) on October 5, 2010 (SCH #2010051075). The Development Agreement and subsequent amendments thereto are consistent with the certified EIR because the only proposed amendment is to extend the term of the Development Agreement with no other project changes. Therefore, the EIR serves as the environmental documentation for this 2 Development Agreement Second Amendment under provisions of California Environmental Quality Act Section 21157.1' SECTIO N3 Findings The City Council of the City of San Juan Capistrano makes the following additional findings: 1. The proposed time extension for the Development Agreement provides for the continued development of the "Plaza Banderas Hotel and Mixed Use Project" consistent with the City's General Plan and as approved by the City Council; and, 2. The proposed DA Amendment makes no other changes to the Development Agreement and is consistent with the General Plan Public Services & Utiliiies Element because the project includes provisions for addressing project-related capital facility impacts to the City's infrastructure. lt is also consistent with the Land Use Element because the project will encourage commercial development which serves community needs and is located in the existing central business district; and because this Element encourages commercial, tourist-oriented, and industrial development that is compatible with existing land uses within tho City to improve the generation of sales tax, property tax, and hotel occupancy tax; and, 3. Extending the Development Agreement is in the public interest because the applicant is diligently pursuing the project, including completion of the demolition work and rough grading on the property and installation of a sound wall. Not extending the agreement would jeopardize completion of the project to the detriment of the City; and, 4. The proposed amendment to the Development Agreement is authorized and consistent with the provisions of Government Code Sections 65864 through 65869.5 and related City ordinances and policies' SECTION 4 Amendment Pursuant to Government Code Section 65868, the City Council does hereby approve and adopt the "Second Amendment to the Development Agreement for the Plaza Banderas Hotel and Mixed Use Project" by and between the City of San Juan Capistrano and South Coast lnvestors ll, LLC", which is attached as Exhibit A, and incorporated herein by reference. The Mayor is hereby authorized to exec.¡te said agreement on behalf of the City of San Juan Capistrano. ) SECTION 5. Severability. lf any section, subsection, subdivision, paragraph, sentence, clause or phrase, or portion of this Ordinance is, for any reason, held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council herby declares that it would have adopted this Ordinance and each section, subsection, subdivision, paragraph sentence, clause or phrase of this Ordinance irrespective of the fact that one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional or irlvalid or ineffective. To this end the provisions of this Ordinance are declared to be severable. SECTION 6. Effective Date. This Ordinance shall take effect and be in force thirty (30) days after its passage SECTION 7 Custodian of Records The documents and materials associated with this Resolution that constitute the record of proceedings on which these findings are based are located at San Juan Capistrano City Hall, 32400 Paseo Adelanto, San Juan Capistrano, California 92675. The City Clerk is the custodian of the record of proceedings. SECTION 8 City Clerk's Certification. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be posted at the duly designated posting places within the City and published once within fifteen (15) days after passage and adoption as required by law; or, in the alternative, the City Clerk may cause to be published a summary of this Ordinance and a certified copy of the text of this Ordinance shall be posted in the Office of the City Clerk five (5) days prior to the date of adoption of this Ordinance; and, within fifteen (15) days after adoption, the City Clerk shall cause to be published the aforementioned summary and shall post a certified copy of this Ordinance, together with the vote for and against the same, in the Office of the City Clerk. PASSED, APPROVED AND ADOPTED THIS 16TH DAY OF MAY 2017. KERRY FERGUSON, MAYOR ATTEST 4 MARIA MORRIS, CITY CLERK RECORD¡NG REQUESTED BY: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 WHEN RECORDED, MAIL TO: Maria Morris, City Clerk City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Exempt from Recording Fees: Government Code SS27383, 6103 City of San Juan Capistrano This Space for Recorder's Use OnlY Second Amendment to Development Agreement for the Plaza Banderas Hotel and Mixed Use Proiect, Between the City of San Juan CaPistrano and South Coast lnvestors ll, LLC EXHIBIT A SECOND AMENDMENT TO DEVELOPMENT AGREEMENT FOR THE PLAZA BANDERAS HOTEL AND MIXED USE PROJECT, BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND SOUTH COAST INVESTORS, II, LLC This Second Amendment to the Development Agreement fo_¡ the Plaza gánOeras Hotel and Mi""d Use Project (the'"Second Amendment"), is entered into between the City of San Juan Óapisirano, a municipal corporation-("City"), ánd South Coast lnúestors ll, LLC ("Owner"). City and Owner are referred to collectively within this Amendment as the "Parties." REC¡TALS A. Owner owns the real property within the city (the "Property"), which is described and shown ori Ein¡b'tt "A" and Exhibit "B" to this Amendment. The Property represents the 3.18-acre developmqn!-pr9¡ect .located at 26891 Ortega higf'way (Assessor Parcel Numbers 124-170-12, 1!, 15, & 16) known as th"e "Plãza aânderas Hotel and Mixed Use Project" (the "Project"). B. ln 2011, City and Owner's predecessor-in-interest, Stroscher G3, LLC, entered into a O'evel'opment Agreerñent for the Project ("Development Agreement")' C. ln 2015, Stroscher G3, LLC, duly assigned its interest in and to the Property to South Coast lnvestors ¡1, LLC. D. ln 2016, the City Council approved the first amendment to the Development- Ágiée.ent, extbnding the'tbrm of the Development Agreement from August 3, 2016 to Augusl 3, 2017 . E. The Parties have now agreed to a second extension of the Term of the Oévetoþment Agreement- to August 3, 2018, pursuant to Section 2'3 thereof. F. This second extension was approved by the City Council by ordinance on _,2017 AGRE MENT The Parties agree as follows: Section 1. Pursuant to Section 2.3 oÍ the Development.Agreement, the term o]-ihãD-evelopment Agreement is extended for one year, to and including August 3,2018. Section 2. Except as so modifie-d, all provisions of the Development Agreernent shall remain in full force and effect. This Second Amendment has been sig ned as of ordinance approving this Second Amendment' lsignatures on following Pagel 2017, the effective date of the SIGNATURE PAGE TO SECOND AMENDMENT TO DEVELOPMENT AGREEMENT FOR THE PLAZA BANDERAS HOTEL AND MIXED USE PROJECT, BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND SOUTH COAST INVESTORS II, LLC "City"ttOwngr" South Coast Investors ll, LLCCity of San Juan Capistrano, a municipal corporation Mayor By Na Tifl me e Attest: Maria Morris, City Clerk Approve as to Form City Attorney A notary public or other officer completing this certificate verifies only the identity of the individúai who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CAL¡FORNIA COUNTY OF On 2O-, before ffio, , Notary ) ) ) Public, personally appeared ' the basis of satisfactory evidence to be the person(s) whose the within instrument and acknowledged to me that he/she/th who proved to me on name is subscribed to ey executed the same in his/her/their authorized capacity, and that by his/her/their signature on the instrument the person, or the entity upon behalf of which the person 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) EXHIBIT A & B Legal Description of the Property EXHIBIT'A' LOT LINE ADJUSTMENT LL20t5- LLA l5-ôú)4 PROPOSED PARCELS REF'ERENCE NUMBERS EXISîING PARCELS A.P. NUMBERS PARCEL 1poR. Lor 12 0FTRACTNO. 103 A,P.tU-170-12 PARCEL 1poR. Lor 12 c)FTRACTNO. 103 A.P.t24-170-LZ PARCEL 1poR, LoT 12 oFTRACTNO. 103 A,P.t24-170-r2 CURRENTRECORD O\ryNER SOUT}I COAST I}TVESTORS LLCSOUTH SOUTI{ Parcel 1:Page 1 of2 ln the City of San Juan Capistrano, County of Orange, State of California, being a portion of Lot 12 of Tract No.103 filed in Book 1 1 , Pages 29 through 33, inclusive, of Miscellaneous Maps, in the Office of the County Recorder of said County described as follows: Beginning at the southwest corner of said Lot 12, thence along the southerly line of said Lot, South 81o19'47" East 67.38 feet to the northerly line of that certain 80.00 feet strip of land conveyed to the State of California by Deed recorded June 28, 1940 in Book 1049, Page 349 of Official Records in said County, said line being parallelwith and distant northerly 40.00 feet from the centerline of Ortega Highway as shown on Record of Survey 2009-1078 filed in Book 246, Pages 32 through 43, inclusive of Records of Surveys in the Office on the County Surveyor of said County; thence along said northerly and parallel line the following two courses: 1) South 84'43'58' East 4.32 feet, to the being to the beginning of a curve concave northerly having a radius of 960.00 feet, 2) easterly along said curve 69.31 feet through a central angle of 4'AB'12" to the northwesterly line of the land described as Parcel 1 in the Deed to the State of California recorded November 21,1957 in Book 4110, Page 520 of Official Records; thence along said northwesterly line the following three (3) courses: 1) North 73"02'22" East 1 19.14 feet to the beginning of a non-tangent curve concave northerly having a radius oÍ 729,69 feet, a radial bearing to said point bears South 08o55'33" East, 2) easte,r,ly along gaid curve 144:00 feet through a central ang_te of 11'18-'25::", 3) and North 69'46'02" East 282.05 feet to the southwesterly line of the land described as Parcel 2 of said Deed recorded in Book 4'110 Page 520 ol Official Records; thence along said southwesterly line North 58'27'15" West 174.45 feet to the northerly line of said Lot 12; thence along said northerly line; North 84'27'a2" west 435.39 feet to a point that is distant south 84'27'02" East 120'00 f44üfJ(ıìftthéffiåitnwest corner of said Lot; thence perpendicular South 05"32'58'West 60.00 feet; ' ' 'i SXHIBIî *A' LÛT LINS Å&TUST*{ENT Lt }CIts - LLå. lç'0o# {"ilRRglì{T R8{'ûA¿} $W!{ ER ¡l'¡VI:ST()RS souTl{ coAsl-l s P*CInû$EA P'rnCEL$ ngFEngNCg F{Tjrd![ns gX$ïNı PÀ*CILT Å-p. 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R" Vt'hcclcr t'lo. $&39 Exhibit "B" Lot Line Adjustment LLA 2015- t-LAl5'æ+ (Map) --Proþosed Parcels Reference Numþef_Exlstlng Parcel A P NumberCurrent Record Owner(S) 124-170-12SOUTH COAST INVESTORS II, LLC 124-170-14SOUTH COAST INVES'TORS II, LLC Parcel 1 124-17CI-15,16SOUTH COAST INVESTORS II, LLC Ð..^:Ë I îzî it _-s" å"$' $00z () V) 32¡.'¡....i{ 41 I l'lral¿ I iTv' :lr ô u. ^ APN f24-170-15,16 i]] Ê i:fi tilJ'¡tl,,,ii1?Ê:ì,rr. :iV, ¿.,!¡.r.J ¡'J ¡ u il.$,ir APN 124-170-14 PARCEL 1 INST. NO. 201 50001 56891, 0.R. I 1,, , PARCEL 3 INST. NO. 2015000156891, 0.R. PARCEL 1 3.098 ACRES t¡J€ .soNtY) 9- rf) I <ao t STATE ROUTE 5 FREEWAY SHEET 1 OF 1 SCALE: 1'=100' 1',|,/10/2015 LEGEND RTVISED LOT LINE LOT LINE TO BE REVISED LOT LINT TO REMAIN NOTE VACANT NO STRUCIURTS ON SITE rcl ,,¡ 20 z t-oJ t!z.J sJz o 'JJ'ú-o CURVE TABLE CURVE DELTA RADIUS LENGTH c1 4009'1r"960.00'6S.31 e¡.,ñС\ 40' ¡oolblrôloltr)GI ¿ THIS MAP HAS BEEN PREPARED BY ME OR e-È, t{.¿l I UNDER MY TION J* I of.\ oi @ I T L. WHETLIR IV, LS 8639 AÏE =¡e(r) r)rf o az oN I H&A LLA NO. 1J84 DWG BY: R. JESUS CHECKED BY: R. WHEELER t;\Mission lnn SJc\LLA\1 J84\EXH.B-SHTo1.dwg P.0,É sw coR LOT 12 LINE TABLE BEARING LENGTHLINE L1 L2 L3 N0.8639 REAL PC RESOLUTION NO. 17-04-25-2 AM D DEVELOP MENT AGRE EMENT A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SAN JUAN CAPISTRANO RECOMMENDING CITY COUNCIL APPROVAL OF A "SECOND AMENDMENT TO DEVELOPMENT AGREEMENT" EXTENDING THE TERM OF THE DEVELOPMENTAGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANOAND SOUTH COAST INVESTORS II, LLC FOR A 3.18.AGRE SITE LOCATED AT 26891 oRTEGA HIGHWAY (ASSESSOR PARCEL NUMBERS 124'170'12, 14, 15' & 16) KNOWN AS THE PLAZA BANDERAS HOTEL AND MIXED USE PROJECTXAPPLICANT: JAKE cRlFFlTH, SOUTH COAST INVESTORS l¡, LLC). WHEREAS, on July 5, 2O11,the City Counciladopted Ordinance 988, apprrrving the Development Agreement with Stroscher G3, LLC for the Plaza Banderas Hotel and Mixed Use Project; and, WHEREAS, on May 17, 2016, the City Council approved first reading and introduction of an Ordinance amending the Development Agreement for the Plaza Banderas Hotel and Mixed Use Project, extending the term of the DevelopmentAgreement from August 3, 2016 to August 3, 2017; and, WHEREAS, on June 6,2016, the City Council approved second reading of an ordinance to amend the Development Agreement for the Plaza Banderas Hotel and Mixed Use Project, extending the term of the Development Agreement from August 3, 2016 to August 3,2017', and, WHEREAS, Rutan & Tucker, LLP, representing South Coast lnvestors ll, LLC, successor-in-interest to Stroscher G3, LLC, submitted a request to extend the term of the Development Agreement by and between the City of San Juan Capistrano and South Coast lnvestorsll, LLC, for á second time, for an additional one (1) year period, orforthe period between August 3,2017 and August 3,2018; and, WHEREAS, the potential environmental impacts of the proposed amendment to the Development Agreement have been previously addressed in full compliance with the provisións of thJçalifornia Environmental Quality Act (CEOA) and its Guidelines, and no further environmental analysis is required priorto the approvalof the proposed amendment because: a) The environmental impacts of the Plaza Banderas Hotel Project have been fully analyzed by the Plaza Banderas Hotel Final Environmental lmpact Report ("ElR") certified by the City Council on October 5,2010; and, b) The proposed amendment does not propose any change in the previously approved' project or any change which could potentially result in either a direct or indirect physicalchange in the environment, the proposed amendmentwillnot result in new, 1 ATTACHMENT 2 potentially significant environmental effects, and, c) None of the conditions described in CEQA Guidelines Sections 15162,15163, or 15164 which would call for the preparation of a Subsequent or Supplemental ElR, or an EIR Addendum, would occur as a result of the proposed amendment; and, WHEREAS, on April 25, 2017, the Planning Commission conducted a duly noticed public hearing pursuant to the provisions of Section 9-2.335 of Title 9, Land Use Code, Administrative Policy 409, and Planning Department Policy 510 to consider public testimony on the proposed project. NOW, THEREFORE, BE lT RESOLVED, that the Planning Commission of the City of San Juan Capistrano hereby makes the following findings: SECTION 1. Recitals. The above recitations are true and correct, and are adopted as the findings of the Planning Commission. SECTION 2. CEQA. The Planning Commission of the City of San Juan Capistrano hereby recommends that the City Council of the City of San Juan Capistrano finC that the second amendment to the Development Agreement is consistent with the previously certified Environmental lmpact Report (ElR) that was prepared and approved forthe Plaza Banderas Hotel and Mixed Use Project and was certified by the City Council (Resolution 1O-10-05-05) on October 5,2010 (SCH #2010051075). The Development Agreement and subsequent amendments thereto are consistent with the certified EIR because the only proposed amendment is to extend the term of the Development Agreement with no other project changes. Therefore, the EIR serves as the environmental documentation for this DevelopmentAgreement Second Amendment under provisions of California Environmental Quality Act Section 21157.1. SECT¡ON 3. Findings for Second Amendment to Development Agreement 1. The proposed, second, one (1) year extension to the Development Agreement provides for the continued development of the construction plans for the Plaza Banderas Hotel project and additional time for the construction of the project consistent with the Plaza Banderas Comprehensive Development Plan (CDP); and as approved by the City Council. 2. The proposed Development Agreement second amendment makes no other changes to the 2011 Development Agreement and remains consistent with the General Plan Public Services Element because the project includes provisions for addressing project-related capitalfacility impacts to the city's infrastructure. 3. The proposed second amendment is consistent with the Comprehensive Development Plan (CDP) 10-01 , Plaza Banderas Hotel, because the extension would not materially change or expand the scope of the development allowable under the original project approvals and the current Development Agreement and the project site. 2 4. Extending the Development Agreement for a second time is in the public interest because the applicant is diligently pursuing the project, including completion-of the demolition work, completion of onsite rough grading and installation of a sound wall, and not extend ing the agreement would jeopardize completion of the project to the detriment of the City. 5. The proposed Development Agreement second amendment is authorized and consistent with the provisions of Government Code Sections 65864 through 65869.5 and related City ordinances and policies' NOW, THEREFORE, BE IT FURTHER RESOLVED, thAt thE PIANN|Ng Commission of the City of San Juan Capistrano hereby recommends that the City Council of the City of San Juan Capistrano approve, via ordinance, the "second Amendment to the Development Agreement for the Plaza Banderas Hotel and Mixed Use Project," as provided in Exhibit A, attached hereto and incorporated herein. pASSED, APPROVED, AND ADOPTED this 25th day of April,2017, by the following vote, to wit: Mark Speros, Chairman Sergio Klotz, AICP, Assistant Director Secretary J mUfAf\ñ Strah l(ruszon¿t Direct Dial: ('il'l) 641-3467 b-mai I : skruszona(¿ìrtltan. conì' ",¡\i. I ]" iti{, r' N4arch 21,2017 VIA R.MAII,AND F'IIDEX Mr. David Clontreras Cìommunity Developrnent Department City of Sail Juan Capistrano 3240Q Paseo Adelanto S¿rn Jr¡an Capistrano, CA 92675 Email : dcontreras(4)sanj uanoapistrano'org Jeffrey S. Ballinger, Esq. City Attorney City of San .luan Capisirano 324A0 Paseo Adclanttr San Juan Capistrano, C.:A t)2"675 Plrone: (949) 493-1171 Ernail: Jeff, Ball inger()bbklaw.com Dear Mr. Contl'eras ancl lr.4r, Ballinger: This firnr represents South Coast Investors ll, LLC, a California limited liability company (,,South Cocst"), .iti*h acquired title to the plopcrty locatod at the courer of Ortega I{ighway and I¡l Camino Real iri the City of San.luan Capisirano (tlie "Prttperty"\ in 2015. As you know,the property is sr-rbject to thar ceflain l)evelopment Agreemenl (Plaza f:]anderas I"lotel and Mixed Use proi*rtj (as arriepcle<J, the "Developmenl Agreement") witlt an effective date of August 3' ?01I (the ",Effective Date") between the City' clf' San .luan Capistrano (the "Citl") ancl South Coast, successor-in-interest tô Strosoher G3, LLC, a California limitecl liability company. All capitalized terms used in this letter sirall have the same meaning ascriberl to them in the Developmen{ Agreemenl, The Term of the Developmenf Agreemcnt currently terminates as of August3,2017 (five years from the Effbctive Date plus one (1) extension term of one (1) year). As discussed in recent pro.¡ect meetings with fhe City, South Coast would like to further extend the Term of the bev"lopn,ent Agree¡rent for the second o1'three (3) one (l) year extension tet'nts, pllrsLlant to Section 2.3 oithe Developmcnt Agrccment' South Coast hereby requests tliat the City appLove the extension of the Ternt of the Development Agreement 1'or one (1) adclitional year, thereby extentling the Tcrm ol the l)evelopment Agreement to August 3, 2018' ATTACHMENT 3611 Anton Blvd., suile 1400, cosla Mesa, CA 92626 P0 Box 1950, cOsta Me$å, CA 92628-.l950 | 714.641.5100 I Fax 714.547.S035 Orango çounty I Palo Altû I Greenw¡ch I www'rutan'com ?ó5010114?5-000 I l0?55106.1 ¡03/2?il7 RUTAf\f Ê! rÀN À I uiin¿:È Ll. $ Mr, David Llontreras Jcl'frcy S. Ballinger, Ðsq. March 27,2017 Page 2 please feel free tCI contâct nre if'the City would like any additional information regarcling this request f'or extension eif the 'I'erm of the Development Agreement' Sincerely, &Tu i,LP cc (via email): Dan Friess William Criffith .Iake Griffith Robert DillawaY, Esq, ?l¡50i0'ì7425-00Û I l0?55106.1 aû3â1/l'l