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17-0606_ADVANCED GROUP 99-SJ & 03-79-2 (ARES)_E13_Agenda ReportT O: FROM: SUBM ITIED BY: DATE: SUBJECT: City of San Juan Capistrano Agenda Report Honorable Mayor and Membe rs of the City Council ~ Siegel, City Manager Maria Morris , City Clerk ~\1\A June 6, 2017 6/6/2017 E13 Adoption of Ordinance Approving a Second Amendment to the Development Agreement for the Plaza Banderas Hotel and Mixed Use Project to Extend the Term of the Development Agreement from August 3, 2017 , to August 3, 2018 (Assessor Parcel Numbers 124-170-12, 14, 15, & 16) (South Coast In vestors II , LLC) (The "Plaza Bande ras Hotel Project") RECOMMENDATION : By motion, app ro ve the second reading and adoption of an ordinance entitled "AN ORDINANCE OF THE CITY COUNCIL OF THE C ITY OF SAN JUAN CAPISTRANO , CALIFORNIA, APPROVIN G AND ADOPT ING A SECOND AMENDMENT TO THE DEVELOPMENT AGREEMENT FOR THE PLAZA BANDERAS HO T EL AND MIXED US E PROJECT, BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND SOUTH COAST INVESTORS II, LLC , EXTENDING T HE TERM OF THE DEVELOPMENT AGREEMENT FROM A UGUST 3, 2017 TO AUGUST 3 , 2018, FOR A 3.18-ACRE SITE LOCATED AT 26891 ORTEGA HIGHWAY (ASSESSOR PARCEL NUMBERS 124-170-12, 14, 15, &16) (APP LICANT: JAKE GRIFFITH, SOUTH COAST IN VESTORS II , LLC) (THE "PLAZA BANDERAS HOTEL PROJECT")." EXECUT IVE SUMMARY: On May 16, 2017, the City Council approved the fi rs t reading and introduction of an Ordinance (Attachment 1) approving a Second Amendment to the Development Agreement for the Plaza Banderas Hotel and Mixed Use project extending the term of the Development Agreement from August 3, 2017 , to August 3, 2018. The Ordinance will go into effect 30 days after its passage. DISCUSSION/ANALYSIS: Not appl icab le . City Council Agenda Report June 6, 2017 Page 2 of 2 FISCAL IMPACT: Not applicable. ENVIRONMEN TAL IMPACT: Not applicable. PRIOR CITY COUNCIL REVIEW: • At its May 16, 2017, meeting, the City Council approved the first reading and introduction of the Ordinance approving a Second Amendment to the Development Agreement for the Plaza Banderas Hotel and Mixed Use project extending the term of the Development Agreement from August 3, 2017, to August 3, 2018. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: Not applicable. NOTIFICATION: The City Clerk's office will provide all necessary publications and posting of the Ordinance as required by law. ATTACHMENT(S): Attachment 1 -Ordinance ORDINANCE NO. 1048 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 3.18-ACRE SITE LOCATED AT 26891 ORTEGA HIGHWAY (ASSESSOR PARCEL NUMBERS 124-170- 12, 14, 15, &16) (APPLICANT: JAKE GRIFFITH, SOUTH COAST INVESTORS II, LLC) (THE "PLAZA BANDERAS HOTEL PROJECT") WHEREAS, South Coast Investors II, 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 Impact Report ("EIR") certified by the City Council on October 5, 2010; and, 01048 ATIACHMENT 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 EIR, 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 CITY 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 Impact Report (EIR) that was prepared and approved for the Plaza Banderas Hotel and Mixed Use Project and was certified by the City Council (Resolution 10-1 0-05-05) on October 5, 2010 (SCH #201 0051 075). 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 Development Agreement Second Amendment under provisions of California Environmental Quality Act Section 21157.1. 2 SECTION 3. 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 & Utilities Element because the project includes provisions for addressing project-related capital facility impacts to the City's infrastructure. It 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 the 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 Investors II, LLC", which is attached as Exhibit A, and incorporated herein by reference. The Mayor is hereby authorized to execute said agreement on behalf of the City of San Juan Capistrano. 3 SECTION 5. Severability. If 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 invalid 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 6th day of June 2017. KERRYFERGUSON,MAYOR ATTEST: MARIA MORRIS, CITY CLERK 4 RECORDING 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 §§27383, 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 Project, Between the City of San Juan Capistrano and South Coast Investors II, 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 for the Plaza Banderas Hotel and Mixed Use Project (the "Second Amendment"), is entered into between the City of San Juan Capistrano, a municipal corporation ("City"), and South Coast Investors II, LLC ("Owner"). City and Owner are referred to collectively within this Amendment as the "Parties." RECITALS A. Owner owns the real property within the City (the "Property"), which is described and shown on Exhibit "A" and Exhibit "8" to this Amendment. The Property represents the 3.18-acre development project located at 26891 Ortega Highway (Assessor Parcel Numbers 124-170-12, 14 , 15, & 16) known as the "Plaza Banderas Hotel and Mixed Use Project" (the "Project"). B. In 2011, City and Owner's predecessor-in-interest, Stroscher G3, LLC, entered into a Development Agreement for the Project ("Development Agreement"). C. In 2015, Stroscher G3, LLC, duly assigned its interest in and to the Property to South Coast Investors II, LLC. D. In 2016 , the City Council approved the first amendment to the Development Agreement, extending the term of the Development Agreement from August 3, 2016 to August 3, 2017. E. The Parties have now agreed to a second extension of the Term of the Development 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 . AGREEMENT The Parties agree as follows : Section 1. Pursuant to Section 2 .3 of the Development Agreement, the term of the Development Agreement is extended for one year, to and including August 3, 2018 . Section 2 . Except as so modified, all provisions of the Development Agreement shall remain in full force and effect. This Second Amendment has been signed as of ____ , 2017 , the effective date of the ordinance approving this Second Amendment. [Signatures on following page] SIGNATURE PAGE TO SECOND AMENDMENT TO DEVELOPMENT AGREEMENT FOR THE PLAZA BANDERAS HOTEL AND M~ED USE PROJECT, BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND SOUTH COAST INVESTORS II, LLC "City" City of San Juan Capistrano, a municipal corporation By ______ ~~--------- Mayor Attest: Maria Morris, City Clerk Approve as to Form City Attorney "Owner" South Coast Investors II, LLC By ____________________ __ Name __________________ __ Title --------------------- A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ____ _ ) ) ) On , 20_, before me, , Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name is subscribed to the within instrument and acknowledged to me that he/she/they 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 CURRENT RECORD OWNER EXHIBIT 'A' LOT LINE ADJUSTMENT LL 2015-LLA. lt;-004- (LEGAL DESCRIPTION) EXISTING PARCELS A.P. NUMBERS SOUil:I COAST INVESTORS II, l.LC POR. LOT 12 OF TRACT NO. 103 A.P. 124-170-12 SOUTII COAST INVESTORS II l.LC POR. LOT 12 OF TRACT NO. 103 A.P. 124-170-12 SOUTII COAST INVESTORS II, LLC POR. LOT 12 OF TRACT NO. 103 A.P. 124-170-12 Parcel1: PROPOSED PARCELS REFERENCE NUMBERS PARCELl PARCELl PARCELl Page 1 of 2 In the City of San Juan Capistrano, County of Orange, State of California, being a portion of Lot 12 of Tract No.1 03 filed in Book 11, 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 81°19'47" 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 parallel with 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°08'12" 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 iine the following three (3) courses: 1) North 73°02'22" East 119.14 feet to the beginning of a non-tangent curve concave northerly having a radius of 729.69 feet, a radial bearing to said point bears South 08°55'33" East, ·-·· . -.. . .. . .. 3) and North 69°46'02" East 282.05 f~et to the southwesterly line of the land described as Parcel 2 of said Deed recorded in Book 411 0 Page 520 of 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°27'02" West 435.39 feet to a point that· is distant South 84°27'02" East 120.00 ftft{fiJG'rlifh~~bfthwest corner of said Lot; thence perpendicular South 05°32'58" West 60.00 feet; E I I 'A' LOT LIN A JUST ENT LL lOIS .. L..LA lt;·OO+ RECORD OWNER PARCELl P CELl PARCELl Page 2 of 2 thence perpendicular North 84•27'02'" West 105.22 feet to th e west ltne of said Lot; thence along aald west tn So h a•17'5e· East 240.41 f et to the Point of Beginning. The bearings and di. tances herein are per Record of Surv y -1078 filed in k 246, Pa 32 through 43, inclusive of Re s of Surveys in the Office n the c unty Surv r of said County. I he distances were for the p ~ of this d · ption. ntaining an area of 3. a more or less Note: There u1 IN na of ~cold d lin ated and ff • 11 J 11 lire und rfy 'llg maps or tlrerr mn ~ tlr r rrl d r m .,, 11 'tbin dte area ~i11g adjusted that arr t101 h '" on this d Wfl m 1/rul uld n um :said parceb herrin. As sh 1 on Exhibit "8" att h hereto and this reference m· e a pan thereof. This description was prepared by me or un r my direction. Robert L Wheeler IV, LS. 8639 My Uccnse · : 12131/201~ Date: II November 18, 2015 WO. -lT H&A UA 1384 By C. Tripi Ch By. R. Wheeler Current Record Owner(S) SOUTH COAST INVESTORS II, LLC SOUTH COAST INVESTORS II, LLC SOUTH COAST INVESTORS II, LLC LEGEND NOTE REVISED LOT LINE LOT LINE TO BE REVISED LOT LINE TO REMAIN VACANT NO STRUCTURES ON SITE LINE TABLE LINE BEARING LENGTH L1 N81"19' 47"W 67.36' L2 N84"43'58"W 4.32' L3 N73"02'22"E 119.14' CURVE TABLE CURVE I DELTA I RADIUS I LENGTH C1 I 4"08'12" I gso.oo'l 69 .31' Exhibit "B" Lot Line Adjustment LLA 2015-.L..l-A\~-004- (MapJ Existing Parcel AP Number 124-170-12 124-170-14 124-170-15, 16 Proposed Parcels Reference Number Parcel1 STATE ROUTE 5 FREEWAY SHEET 1 OF 1 SCALE: 1"=100' 11110/2015 .,..o 0~ ..).Cj, ~ POR . LOT !2 ~o \.>!!~ %:.t '::)· TRACT NO. i0 3 '0'2, ~~\ a:> "o.Q ~0 ;cr o. ~ .-~ \0 Y}. ~ a> "!. ':t. ~ •W \ct-l«,ci, 0 ~ ,: ~~\i \ ~. I ~(). IJ.! ..... ICk 'Z 1-b · (.?e ::;~ et ....J • PARCEL 3 . .0 ~ t;, \ ~ g 0 ¥£ ~ ~ IN ST. NO. ~I ,~ $ o. ~ ~ -~ g =:~ ~ ;£? 2015000156891, O.R. •f,!,\ -~'A~ ~~ ~ -~ """ "I()\~ o..,. r \\ ~ \>.!\ II z l~f ~ PARCEL 1 'f\~ ~~ ;l ~()!. ~ N • iB 1 ~ ~ .f:: 3.098 ACRES "Z\..__ , f:'l 10 ~R s ··-?--s '1".78 ______ , ~ 12 """; .. r·.;u. _uv ··iU z ~ ~ R.S.B. 246/32 ··43 ,_ ~ I IN£ PCL 1 tfj ~ NVI'6\~ 4110/5~ ~· .w ~-t;; ~ JR /"'~24-no-~2 I ., f;:j. pt>,RCEL 2 ~ :0 g NO 20' 20 APN 124-170-15,16 • 00 40' ~~ N .!!J z 0 . I \NSI. . 0 R C2 ~ t5 20'5Q0015S89,, .:_.:.__ -~ I --Q..-. -~~-~,--=::::::::-1 ~ . V")l / ,/ \ I I APN 124-1 ~0-~4.~! -.~-.-_: ____ .- H&A LLA NO. 1384 DWG BY: R. JESUS CHECKED BY: R. WHEELER I:\ Mission Inn SJC\LLA\ 1 J84\EXH.B-SHT01.dwg • I I I --- v ', PARCEL 1 r-..:~ I / I T No oro:: , INS • . ~~ I \\ 2015000156891, ~I / ~ I .31: I O.R. . . ~I -:.~-~-. ~ ~ l' ; ? 9 '2 '2 ;:: T · · ·' <1 ' VAR en ~ r~:'i.r:'l. .:; _ · ... ~..,) ----' ~ ~ 4f I -.j-240 . , ')f'• I ~ '56" VI 302.20 : ... ;, t-~os·n _, • -;;;:;-368.21' . N08"H 56 " R,£.Al El cAM\NO P·.Ci:Ei SW COR LOT 12