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'
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Lot Line Adjustment
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(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
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LEGEND
RTVISED LOT LINE
LOT LINE TO BE REVISED
LOT LINT TO REMAIN
NOTE
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LINE TABLE
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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