Resolution Number 18-11-05-01RESOLUTION NO. 18-11-05-01
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, DENYING THE APPEAL OF, AND
AFFIRMING THE DETERMINATION MADE ON SEPTEMBER 25, 2018,
REGARDING THE PLANNING COMMISSION'S APPROVAL OF A
MODIFICATION TO THE INN AT THE MISSION HOTEL SITE PLAN
ASSOCIATED WITH ARCHITECTURAL CONTROL (AC) 18-024: INN AT
THE MISSION, FORMERLY PLAZA BANDERAS HOTEL LOCATED AT
26891 ORTEGA HIGHWAY (ASSESSOR PARCEL NUMBERS 124-170-12,
14, 15, & 16)(APPLICANT: DAN FRIESS, MISSION COMMERCIAL
PROPERTIES, INC.)
Whereas, Dan Friess, on behalf of Mission Commercial Properties, Inc.,
31866 Camino Capistrano, San Juan Capistrano, CA 92675 (the "Applicant"), has
requested approval of Architectural Control (AC) 18-024, requesting site plan
modifications to the approved project to revise the location of the swimming pool, parking
areas, and the entry driveway; and,
Whereas, on October 19, 2010, the City Council certified the Final
Environmental Impact Report ("FEIR") for the Plaza Banderas Hotel Project ("Original
Project") and the entitlements for the Original Project including General Plan Amendment
to change the land use designation (GPA 10-001), the Plaza Banderas Hotel
JComprehensive Development Plan (CDP 10-01) and a Rezone to the City's Zoning Map
(RZ 10-001) (collectively "Entitlements"); and,
Whereas, the DRC reviewed the plans on July 19, 2018 and voted to
forward the project to the Planning Commission with a condition that the exit driveway
lane at Ortega Highway be narrowed to deter vehicles from turning into the exit lane; and,
Whereas, on October 9, 2018, the City received an appeal of the Planning
Commission's approval made on September 25, 2018. The appeal was from Charles S.
Krolikowski, Newmeyer & Dillion, LLP representative of Save Our Mission — San Juan
Capistrano; and,
Whereas, the October 9, 2018 appeal made six assertions (quoted directly
from the appeal):
1. "The Applicant must think that the City of San Juan Capistrano
("City") and its Planning Commission are a bunch of incompetent
fools. In 2017, when the Applicant was seeking yet another
extension of the Development Agreement ("DA") for the Project,
it represented that the final plans would be submitted in 6 weeks.
That did not happen. Further, in 2018, Applicant representatives
Dan Friess and Rick Friess looked this Commission and the City
Council straight in the eyes and said they were building Plaza
11/5/2018
Banderas as it was approved in 2010. They flat out
misrepresented their intentions to the City."
2. "And after all of these misrepresentations about the Project and
their "stated intent" to build Plaza Banderas, the Applicant now
seeks further revisions to now modify the agreed upon
components of the Project, namely the 6,467 square feet of retail
space, 3,702 of office space and a 6,095 square foot restaurant,
which were identified in the DA, the Comprehensive
Development Plan ("CDP") and the Environmental Impact Report
("EIR"). As a matter of law, materially changing the Project, even
if done in piecemeal fashion like here, is subject to further CEQA
review."
3. "Attached hereto and incorporated herein by reference as
Exhibits 1, 2, and 3 are prior letters sent to the City explaining that
SOM knew all along that the Applicant was going to change the
Project to eliminate or nearly eliminate the agreed-upon and
required retail/office/restaurant components of the Project. One
of the most critical reasons Plaza Banderas was approved in the
first instance was due to these components, which was to create
the vibrant mixed-use atmosphere encouraged and required by
the City."
4. "In fact, over a year ago, the City advised the Applicant in writing
that it was required to identify the interior building space to show
the commercial/retail uses for consistency purposes. This letter
states as follows:
In addition, we noted that the interior space for Buildings A
and B is not identified in the submitted plans. As you are
aware, the approved 2011 Plaza Banderas Hotel plans
identify the commercial component of the project that is
comprised of Buildings A and B as consisting of approximately
6,467 square feet of retail, 6,095 square feet of restaurant,
and 3,702 square feet of private office. Please identify the
interior building space of Buildings A and B so as to ensure
consistency with the approved 2011 Planning Commission
plans."
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5. "Finally, SOM has serious concerns that the City is providing a
gift of public funds to the Applicant as the City is apparently
agreeing that the Applicant can simply use City -owned and
controlled property to support the proposed changes to the
Project- assuming that the City even owns or controls this
property. (Exhibit 5.) This type of side -deal smacks with
corruptness and a complete lack of transparency to which the City
is now or may become complicit."
6. "As the Staff Report for these proposed Project modifications was
just released, SOM has not had sufficient time to review, analyze
and comment on all of the City's staff s analysis and the proposed
findings (including numerous proposed CEQA findings) and
requests that this hearing be continued to allow SOM to do so.
Proper notice of proposed CEQA determinations was not
provided."
Whereas, on November 5, 2018, the City Council conducted a duly -noticed
appeal hearing pursuant to SJCMC Section 9-2.311 to consider public testimony on the
Appeal; and,
Whereas, the findings and conclusions made by the City Council in this
Resolution are based upon the oral and written evidence presented as well as the entirety
of the administrative record, which is incorporated herein by this reference. The findings
are not based solely on the information provided in this Resolution; and,
Whereas, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW THEREFORE BE IT RESOLVED, the City Council makes the
following findings and determinations as to the Appellant's assertions in the October 9,
2018 appeal:
1. "The Applicant must think that the City of San Juan Capistrano ("City")
and its Planning Commission are a bunch of incompetent fools. In 2017, when the
Applicant was seeking yet another extension of the Development Agreement ("DA") for
the Project, it represented that the final plans would be submitted in 6 weeks. That did not
happen. Further, in 2018, Applicant representatives Dan Friess and Rick Friess looked
this Commission and the City Council straight in the eyes and said they were building
Plaza Banderas as it was approved in 2010. They flat out misrepresented their intentions
to the City."
The appeal asserts that the Applicant identified to the Planning Commission
and City Council that they were building Plaza Banderas as it was approved in 2010 and
that they misrepresented their intentions. The decision appealed is the Planning
j Commission's decision on September 25, 2018, to approve Architectural Control (AC)18-
024 with conditions. AC 18-024 included modifications to the location of an approved
parking area, swimming pool, and entry driveway. The Planning Commission made the
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six findings required by San Juan Capistrano Municipal Code, section 9-2.313(c) for
approval of an AC permit. The first finding required is that "[t]he proposed use and design
of the project comply with all applicable provisions of Title 9 of the San Juan Capistrano
Municipal Code [the City's Land Use Code] and any applicable specific plan or
comprehensive development plan." (SJCMC, § 9-2.313(c)(1).) For this project, the
applicable comprehensive development plan was the Plaza Banderas Hotel
Comprehensive Development Plan (CDP 10-01). The staff report to the Planning
Commission for the September 25 item detailed how AC 18-024 conformed to the
controlling regulations and design guidelines of CDP 10-01 and the requirements of the
Land Use Code. The appellant does not explain whether or how AC 18-024 fails to comply
with CDP 10-01 or the Land Use Code.
Based upon the entire record and the foregoing, the City Council rejects this
basis for appeal of the Planning Commission's approval.
2. "And after all of these misrepresentations about the Project and their
'stated intent' to build Plaza Banderas, the Applicant now seeks further revisions to now
modify the agreed upon components of the Project, namely the 6,467 square feet of retail
space, 3,702 of office space and a 6,095 square foot restaurant, which were identified in
the DA, the Comprehensive Development Plan ("CDP") and the Environmental Impact
Report ("EIR"). As a matter of law, materially changing the Project, even if done in
piecemeal fashion like here, is subject to further CEQA review."
The appeal asserts that, first, the Applicant proposed changes to the square
footage of uses; second, that these revisions were subject to further CEQA review beyond
the project's current certified EIR; and, third that the project changes have been "done in
a piecemeal fashion."
First, the Planning Commission's decision on AC 18-024 did not concern or
in any way change the land use square footages set by the CDP 10-01, or the Final
Environmental Impact Report for the Plaza Banderas Project (certified October 2, 2010,
SCH No. 2010051075) (EIR). As explained in the response to the Assertion 1, AC 18-024
concerned modifications to the location of an approved parking area, swimming pool, and
entry driveway, and the Planning Commission made the six findings required by San Juan
Capistrano Municipal Code, section 9-2.313(c) for approval.
Second, as shown in the September 25 staff report, AC 18-024 was
reviewed as required by CEQA, and the Planning Commission determined that no further
environmental review was required:
Pursuant to State CEQA Guidelines, section 15162, the Planning
Commission determined that the AC 18-024 did not require a new EIR.
The Planning Commission found that AC 18-024's modifications were
not substantial project revisions, that no substantial changes in
circumstances for the project have occurred, and no new information of
substantial importance has surfaced since the current EIR was certified.
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• Pursuant to section 15164, the Planning Commission determined that
AC 18-024 did not require an addendum to the current EIR. The
Planning Commission found that there was no new potential for
environmental impacts and the modifications were already covered by
the current EIR.
• Further, the Planning Commission determined that AC 18-024 was
entirely exempted from further environmental review as a project
consistent with General Plan and zoning designations (Pub. Res. Code,
§ 21083.3(a), -(b); State CEQA Guidelines, § 15183(d)), entirely
exempted under the Class 1 exemption for existing facilities (State
CEQA Guidelines, § 15301), entirely exempted under the Class 3
exemption for new construction of small structures (§ 15303), entirely
exempted under the Class 11 exemption for minor accessory structures
(§ 15311).
Third, no piecemeal environmental review has occurred. The entirety of the
Inn at the Mission project, formerly referred to as Plaza Banderas, was previously
analyzed in an environmental impact report. That analysis considered the whole of the
project, including any reasonably foreseeable future consequences of the project. At
issue now is the Planning Commission's approval of AC 18-024, which proposes only
minor site plan modifications (revised location of the parking area, swimming pool and
entry driveway). As explained above, these modifications are not subject to further
environmental review.
Based upon the entire record and the foregoing, the City Council rejects this
basis for appeal of the Planning Commission's approval.
3. "Attached hereto and incorporated herein by reference as Exhibits 1, 2,
and 3 are prior letters sent to the City explaining that SOM knew all along that the
Applicant was going to change the Project to eliminate or nearly eliminate the agreed-
upon and required retail/office/restaurant components of the Project. One of the most
critical reasons Plaza Banderas was approved in the first instance was due to these
components, which was to create the vibrant mixed-use atmosphere encouraged and
required by the City."
The appeal asserts that the Applicant notified the City of changes to the
approved land uses. As explained in the response to Assertion 2 above, the Planning
Commission's decision on AC 18-024 did not concern or in any way change the land use
square footages for the project. As explained in the response to Assertion 1 above, AC
18-024 concerned modifications to the location of an approved parking area, swimming
pool, and entry driveway and the Planning Commission made the six findings required by
San Juan Capistrano Municipal Code, section 9-2.313(c) for approval.
Based upon the entire record and the foregoing, the City Council rejects this
basis for appeal of the Planning Commission's approval.
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4. "In fact, over a year ago, the City advised the Applicant in writing that it
was required to identify the interior building space to show the commercial/retail uses
for consistency purposes. This letter states as follows:
In addition, we noted that the interior space for Buildings A and B is
not identified in the submitted plans. As you are aware, the approved
2011 Plaza Banderas Hotel plans identify the commercial
component of the project that is comprised of Buildings A and B as
consisting of approximately 6,467 square feet of retail, 6,095 square
feet of restaurant, and 3,702 square feet of private office. Please
identify the interior building space of Buildings A and B so as to
ensure consistency with the approved 2011 Planning Commission
plans."
The appeal asserts that the City notified the Applicant regarding changes to
the approved land uses. As explained in the response to the Assertion 2, the Planning
Commission's decision on AC 18-024 did not concern or in any way change the land use
square footages for the project. As explained in the response to Assertion 1, AC 18-024
concerned modifications to the location of an approved parking area, swimming pool, and
entry driveway and the Planning Commission made the six findings required by San Juan
Capistrano Municipal Code, section 9-2.313(c) for approval.
Based upon the entire record and the foregoing, the City Council rejects this
basis for appeal of the Planning Commission's approval. 7
5. "Finally, SOM has serious concerns that the City is providing a gift of
public funds to the Applicant as the City is apparently agreeing that the Applicant can
simply use City -owned and controlled property to support the proposed changes to the
Project- assuming that the City even owns or controls this property. (Exhibit 5.) This type
of side -deal smacks with corruptness and a complete lack of transparency to which the
City is now or may become complicit."
The appeal asserts, first, that the Applicant's use of the City's highway
easement area is a gift of public funds and, second, that the review process was not
transparent.
First, the Applicant's use of the City's highway easement area is not a gift
of public funds. The California Constitution prohibits a city from making a gift of public
funds to a private party. (Cal. Const., art. XVI, § 6.) In the case of AC 18-024, the City
made no gift of funds, or grant of property for that matter, to the Applicant. The City holds
a highway easement over a strip of the project site. The Applicant may use this easement
area "as long as the use does not 'interfere unreasonably' with the easement's purpose,"
in this case for the City to build the highway. (Scrubby v. Vintage Grapevine, Inc. (1995)
37 Cal.AppAth 697, 702-703.) In Condition E of its approval of AC 18-024, the Planning
Commission required that:
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In the event that the City needs to construct highway improvements
within the easement the Applicant shall remove all applicable parking
spaces from the easement area at the applicant's sole expense.
The Applicant's use of the easement area is still limited by California law
governing easements and now further limited by AC 18-024. Accordingly, the City is not
affording any gift of public funds or grant of property to the applicant.
Second, as staff identified in the staff report to the Planning Commission,
[T]he proposed swimming pool modification shifts hotel parking onto
a portion of the Applicant's property that contains a City highway
easement. The City Attorney has reviewed this request and has
determined that the hotel parking spaces can be located within the
highway easement provided that the Applicant agrees to remove the
parking spaces from the highway easement if at any time in the future
the City needs to construct highway improvements within the
easement. The City's decision to activate the easement, will trigger
review under CEQA. A condition of approval (#E) to this effect has
been included in the attached Resolution.
As such, the Applicant's request to use the highway easement area was
fully disclosed in the staff report and resolution.
Based upon the entire record and the foregoing, the City Council rejects this
basis for appeal of the Planning Commission's approval.
6. "As the Staff Report for these proposed Project modifications was just
released, SOM has not had sufficient time to review, analyze and comment on all of the
City's staffs analysis and the proposed findings (including numerous proposed CEQA
findings) and requests that this hearing be continued to allow SOM to do so. Proper notice
of proposed CEQA determinations was not provided."
The appeal asserts that the City did not provide proper notice of the
Planning Commission meeting and staff report, specifically the CEQA determination. The
City provided notification pursuant to Title 9, Land Use Code, Section 9-2.302(f),
Notification Procedures. As such, the City satisfied the required project notification.
Based upon the entire record and the foregoing, the City Council rejects this
basis for appeal of the Planning Commission's approval.
NOW, THEREFORE, BE IT FURTHER RESOLVED, based upon the oral
and written evidence presented as well as the entirety of the administrative record for the
Project, the City Council hereby denies the Appeal and affirms the Planning
Commission's approval of Architectural Control (AC) 18-024 made on September 25,
2018. The City Council's decision is final. Judicial review of this decision may be sought
by following the procedure outlined in Code of Civil Procedure Section 1094.5 and within
7 11/5/2018
the time limits provided in Code of Civil Procedure Section 1094.6, except that where a
shorter time is provided by any state or federal law, such shorter time limit shall apply.
NOW, THEREFORE, BE IT FURTHER RESOLVED, that, based on the
entire administrative record, including all oral and written testimony presented to the City
Council, the City Council does hereby find that the Architectural Control (AC) 18-024) is
fully consistent with and covered by the Plaza Banderas FEIR. Based on all evidence in
the administrative record, including all oral and written testimony presented, the City
Council hereby finds and determines that preparation of a subsequent or supplemental
EIR or any other CEQA document is not required under California Public Resources Code
section 21166 and State CEQA Guidelines section 15162, because the proposed
Architectural Control (AC) 18-024:
• Does not constitute a substantial change to the project that will require major
revisions of the EIR due to the involvement of new significant environmental effects
or a substantial increase in the severity of previously identified significant effects;
• Does not constitute a substantial change with respect to the circumstances under
which the project is administered that will require major revisions of the EIR due to
the involvement of new significant environmental effects or a substantial increase
in the severity of the previously identified significant effects; and
• Does not involve new information of substantial importance that was not known
and could not have been known with the exercise of reasonable diligence at the
time the EIR was certified that shows any of the following: (a) the offer of dedication
will have one or more significant effects not discussed in the EIR; (b) significant
effects previously examined will be substantially more severe than shown in the
EIR; (c) mitigation measures or alternatives previously found not to be feasible
would in fact be feasible and would substantially reduce one or more significant
effects of the project, but the City Council declined to adopt such measures; or (d)
mitigation measures or alternatives considerably different from those analyzed in
the EIR would substantially reduce one or more significant effects on the
environment, but which the City Council declined to adopt.
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Council
of the City of San Juan Capistrano hereby denies the appeal and upholds the Planning
Commission's approval of Architectural Control (AC) 18-024, subject to those conditions
of approval established by Exhibit A attached hereto and incorporated herein; and
including those applicable conditions of approval established in the Administrative
Record, specifically City Council Resolution 10-10-05-05, Architectural Control (AC) 10-
002.
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 Development Services Director is the custodian of the
record of proceedings. 7
8 11/5/2018
NOTICE OF DETERMINATION: The City Council herby directs Staff to
prepare, execute, and file a Notice of Determination within five working days after the City
Council approves this Resolution.
SEVERABILITY: If any provision of this Resolution is held invalid, the
remainder of this Resolution shall not be affected by such invalidity, and the provisions of
this Resolution are severable.
EFFECTIVE DATE AND EXECUTION: This Resolution shall become
effective upon its adoption. The Mayor shall sign this Resolution and the City Clerk shall
attest to the adoption thereof.
PROTEST OF FEES, DEDICATIONS, RESERVATIONS OR OTHER
EXACTIONS: Pursuant to Government Code Section 66020, the Applicant may protest
the imposition of fees, dedications, reservations or other exactions imposed on this
development project by taking the necessary steps and following the procedures
established by Sections 66020 through 66022 of the California Government Code.
PASSED, APPROVED AND ADOPTED this 5th day of November 2018.
=ARIAS, MAYOR
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
COUNTY OF SAN JUAN CAPISTRANO)
I, Maria Morris, appointed City Clerk of the City of San Juan Capistrano, do hereby certify
that the foregoing Resolution No. 18-11-05-01 was duly adopted by the City Council of
the Cof San Juan Capistrano at an Adjourned Regular meeting thereof, held the 51h
day of overpber 2018, by the following vote:
AYES: NCIL MEMBERS: Ferguson, Reeve, Patterson, Maryott and Mayor Farias
NOES: O NCIL MEMBERS: None
ABSENT: C �U CILMEMBEW, None
MARIA\M6Aklk"C'ITY CLERK
11/5/2018
EXHIBIT A
CONDITIONS OF APPROVAL
Project #: Architectural Control (AC)18-024
Project Name: Inn at the Mission, formerly known as Plaza Banderas
Hotel
APPROVAL DATE: November 5, 2018
These conditions of approval apply to Architectural Control (AC) 18-024 to allow site plan
modifications to the location of an approved parking area, swimming pool and entry driveway,
located at 26871 & 26891 Ortega Highway (Assessor Parcel Number 124-170-12,14,15,16).
General Conditions:
A. Consistency with Approved Architectural Control Plans. The project shall be
constructed in accordance with all the approved plans and conditions of approval,
including but not limited to site plan. If all improvements cannot be installed prior to
occupancy, the City may approve a Deferred Improvement Agreement to defer the
completion of the improvements provided that a bond, cash deposit, or other surety
in a form and substance approved by the City Attorney, is submitted to the City in
lieu of installation of the improvements, that application and required fees are
submitted, and that the incomplete improvements will not create an unsafe
condition on the site. The term of the deferral shall be as determined by the
Development Services Director.
B. Legal Defense. The applicant shall defend, indemnity, and hold harmless the City
of San Juan Capistrano and its officers, employees, and agents from and against
any claim, action, or proceeding against the City of San Juan Capistrano, its
officers, employees, or agents to attack, set aside, void, or annul any approval or
condition of approval of the City of San Juan Capistrano concerning this project,
including but not limited to any approval or condition of approval of the City
Council, Planning Commission, or City Planner. The City shall promptly notify the
applicant of any claim, action, or proceeding concerning the project and the City
shall cooperate fully in the defense of the matter. The City reserves the right, at its
own option, to choose its own attorney to represent the City, its officers,
employees, and agents in the defense of the matter.
C. Consistency. In the event that exhibits and written conditions are inconsistent, the
written conditions shall prevail. If there are any disparities between these
conditions and the plans or final revised plans that are approved for any
subsequent phase, the conditions and/or plans as stipulated in the later approval
shall prevail.
D. Valet Service. If the hotel hosts more than one special event at the same time,
valet service with tandem parking shall be required to be implemented.
E. Highway Easement. In the event that the City needs to construct highway
improvements within the easement the applicant shall remove all applicable
parking spaces from the easement area at the applicant's sole expense. The
City's decision to activate the easement will trigger review under CEQA.