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06-0117_CRYSTAL CATHEDRAL MINISTRIES_G2a_Agenda Report 1/17/2006 AGENDA REPORT G 2a TO: Dave Adams, City Manager FROM: Molly Bogh, Planning Director SUBJECT: Consideration of Initiation of Proceedings for Prezoning and Annexation and Approval of a Property Tax Exchange Agreement Between the City and the County of Orange for the Rancho Capistrano Property. (Approximately 92 Acres of Uninhabited Unincorporated Territory Located West of Camino Capistrano, Approximately 1.2 Miles North of Junipero Serra)(Crystal Cathedral Ministries)(APNs 637-082-64, -65, -66, -67, and - 68). RECOMMENDATION By motion, adopt the attached Resolution initiating prezoning and annexation proceedings and approving a property tax exchange agreement between the City and the County of Orange for the Rancho Capistrano property. SITUATION A. PROPERTY OWNER Crystal Cathedral Ministries 13280 Chapman Avenue Garden Grove, 92840 B. Introduction "Rancho Capistrano" is a 92 acre "island" of unincorporated territory located adjacent to the City's northwest boundary (see Exhibit "A" of Attachment 1). It is surrounded by the incorporated cities of San Juan Capistrano to the south, east and west, and by Laguna Niguel to the North. California Government Code Section 56375.3 (part of the Cortese-Knox- Hertzberg Local Government Reorganization Act) allows Local Agency Formation Commissions (LAFCOs) to expeditiously process annexations of unincorporated islands of less than 150 acres without a protest hearing. Since the Rancho Capistrano property is such an island, containing 92 acres within the City of San Juan Capistrano's LAFCO-adopted Sphere of Influence, LAFCO staff has requested that the City initiate annexation proceedings. Agenda Report Page 2 January 17, 2006 In response to the LAFCO request, City staff has discussed the possibility of annexation with representatives of the Crystal Cathedral Ministries. They indicated that the Ministry was willing to cooperate with the City in the processing of this annexation provided there is no cost to the Ministry and provided the property is prezoned in a matter which will permit the uses identified in the current General Plan. The General Plan's "Planned Community" designation includes the following "Allowed Land Use Mix Guidelines': "80% Public Institutional (includes retreat center) and 20% Assisted Care Facility (which may include a wellness center)..." (Land Use Element Table LU-3). This issue will be addressed by the Planning Commission in its review of prezoning for the property. In conjunction with the initiation of annexation proceedings, it is also necessary for the City to prezone the property and approve a property tax exchange agreement with the County. C. General Plan and Prezoning The Rancho Capistrano property is already designated "Planned Community" on the City's General Plan. Consistent with that designation, staff is recommending that Council initiate consideration of prezoning to "PC — Planned Community". After initiation of this action the proposed prezoning will then be referred to the Planning Commission for review and back to Council for final adoption. D. Property Tax Exchange with County One of LAFCO's requirements for processing proposed annexations is that a property tax exchange agreement be adopted by the County and the City. The attached resolution confirms for the subject annexation the Master Property Tax Transfer Agreement between the City and County adopted in 1980. The terms of the agreement are described below under "Financial Considerations". E. Environmental Review Initiation of annexation proceedings and prezonings and approval of a property tax exchange agreement do not constitute a "project" under the California Environmental Quality Act (CEQA). Environmental review will be required, however, upon actual review of the annexation and the prezoning by the City. COMMISSION AND BOARD REVIEW Not applicable. Agenda Report Page 3 January 17, 2006 FINANCIAL CONSIDERATIONS Upon annexation by the City, the City will receive 43.8931% and the County will receive 56.1069% of the County's share of the 1% basic levy of property tax generated within the area to be annexed, pursuant to Master Property Tax Transfer Agreement 80-2092. Because the property's land use is nonresidential, it is unlikely that its annexation will result in a burden to the City in terms of service costs versus revenue. In addition, the annexation would extend City jurisdiction over land use at its "front door", would "fill out" the City's northern sphere of influence, and would create more coherent and logical City boundaries in the area. PUBLIC NOTIFICATION A public hearing is not required for initiation of annexation proceedings and prezonings or for property tax agreements. The property owner has been notified that this item is on the agenda and has received a copy of the staff report. Copies of this agenda item have been mailed to the following individuals: Roger Grable Cheryl Ellison" RECOMMENDATION By motion, adopt the attached Resolution initiating prezoning and annexation proceedings and approving a property tax exchange agreement between the City and the County of Orange for the Rancho Capistrano property. Respectfully submitted, Prepared by, Molly Bo h Lai r N. Lawrence 9 rY Planning Director Consulting Case Planner Attachment: 1. Resolution Initiating Annexation Proceedings and Prezoning and Approving Property Tax Exchange Agreement, with attached Exhibit A: "Boundaries of Rancho Capistrano Annexation"