22-0215_JHC AQUISITIONS, LLC_D1_Agenda ReportCity of San Juan Capistrano
Agenda Report
TO: Honorable Mayor and Members of the City Council
FROM: Benjamin Siegel, City Manager
SUBMITTED BY: Joel Rojas, Development Services Director
PREPARED BY: Laura Stokes, Housing Supervisor / Associate Planner
DATE: February 15, 2022
SUBJECT: Architectural Control (AC) 21-023, Tree Removal Permit (TRP) 21-
036, Grading Plan Modification (GPM) 21-024, Sign Program (SP)
22-002, Zone Variance (ZV) 21-011, and Floodplain Land Use Permit
(FP) 21-003; Paseo Adelanto Mixed Use Project, a Proposal to
Construct 50 Apartment Units of Permanent Supportive Housing for
Low-Income Households and a New 16,338 Square Foot City Hall
Office Building at 32400 Paseo Adelanto (APN: 668-101-23); A
Finding that the Proposed Project is Statutorily Exempt from the
California Environmental Quality Act; and Related Agreements with
Jamboree Housing Corporation, CBRE and Griffin Structures
(Applicant: Jamboree Housing Corporation and the City of San Juan
Capistrano) (Project Manager: Laura Stokes, Housing Supervisor /
Associate Planner).
RECOMMENDATION:
Open the public hearing, receive public testimony, close the public hearing; and:
1.Adopt a resolution (Attachment 1) conditionally approving Architectural Control
(AC) 21-023, Tree Removal Permit (TRP) 21-036, Grading Plan Modification
(GPM) 21-024, Sign Program (SP) 22-002, Zone Variance (ZV) 21-011, and
Floodplain Land Use Permit (FP) 21-003 for the proposed Paseo Adelanto Mixed
Use Project, and finding that the proposed project is statutorily exempt from the
California Environmental Quality Act; and,
2.Approve and authorize the City Manager to execute, substantially in the form
attached, an Option to Purchase Real Property Agreement with Jamboree
Housing Corporation (Attachment 2); and,
3.Approve and authorize the City Manager to execute an Exclusive Representation
Agreement with CBRE for services related to securing temporary office facilities
during construction of a new City Hall (Attachment 3); and,
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4. Approve and authorize the City Manager to execute a Professional Services
Agreement with Griffin Structures for services related to program and
construction management of the new City Hall (Attachment 4).
5. Waive the formal bidding process for retention of Griffin Structures for Program
and Construction Management Services pursuant to Municipal Code section 3-
4310(e).
EXECUTIVE SUMMARY:
Since April 2020, staff has been working with Jamboree Housing Corporation
(Jamboree) to investigate the feasibility of developing the current City Hall site with an
affordable housing project as well as a new City Hall facility. As a result of these efforts,
Jamboree has submitted entitlement applications for a proposed mixed-use project that
would involve demolition of the existing City Hall structures and construction of a three-
story, 50-unit apartment building of permanent supportive housing for low-income
households adjacent to a new, two-story 16,338 square foot City Hall. Staff has
analyzed the proposed entitlement applications and believes that all the necessary
findings of fact for approval of the various requested applications can be made. In
addition, the entitlement applications have been reviewed by the Design Review
Committee, Cultural Heritage Commission and Planning Commission and all three
review bodies recommend approval of the proposed project applications. Staff is
recommending that the City Council adopt a Resolution conditionally approving the
requested entitlements for the Paseo Adelanto Mixed Use Project, and finding that the
project is statutorily exempt from the California Environmental Quality Act.
In addition to the project entitlement applications, staff is recommending the City
Council approve an Option to Purchase Real Property Agreement (“Option Agreement”)
with Jamboree. The Option Agreement grants Jamboree the option to purchase 1.2
acres of the project site from the City (where the housing would be located), provided
that the City and Jamboree agree to the terms of a Development and Disposition
Agreement (DDA) within six months. In addition, the Option Agreement conditionally
commits the City to providing $5.9 million in affordable housing bond monies to
Jamboree for the affordable housing project. Staff is also recommending that the
Council approve an Exclusive Representation Agreement with CBRE for services
related to securing temporary office facilities during construction of a new City Hall, and
an Amendment to an existing Professional Services Agreement with Griffin Structures
for construction management of the City Hall project.
DISCUSSION/ANALYSIS:
Jamboree is a full-service real estate development company with more than 30 years of
experience, specializing in the construction, acquisition, and management of affordable
housing for lower income households. Jamboree has developed, managed, and
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maintained ownership of over 9,000 residential units for lower income families and
seniors throughout California. On April 7, 2020, the City Council approved an Exclusive
Negotiating Agreement (ENA) with Jamboree to investigate the feasibility of developing
the current City Hall site with a permanent supportive housing project that includes a
new City Hall facility.
On March 16, 2021, the City Council approved an amended ENA to pursue a City Hall
concept with reduced square footage and associated cost. Under this revised concept,
the Council Chambers would be relocated to the Community Center. Staff has worked
with Jamboree to develop the preliminary plans for the new City Hall building, which
would include energy efficient design elements that allow the City and Jamboree to
pursue additional grant funding. In October 2021, Jamboree submitted project plans and
applications to begin the formal entitlement review of the proposed Paseo Adelanto
Mixed Use Project.
Proposed Project
The 2.22-acre project site is located at the southern terminus of Paseo Adelanto,
between Trabuco Creek and the railroad right-of-way (Attachment 5). The project site is
City-owned, zoned Very High Density (VHD) residential and identified in the City’s 2014
-2021 Housing Element as a site which would accommodate affordable housing. The
VHD zone permits a variety of uses including multifamily housing and public buildings
and facilities, such as a City Hall. The project site is currently developed with City Hall
offices made up of four buildings totaling approximately 15,000 sq. ft., a surface parking
lot, and related landscaping. The proposal calls for demolishing the existing City Hall
office buildings and constructing a new, two-story 16,338 sq. ft. City Hall and adjoining
three-story, 50-unit apartment building of permanent supportive housing, ten of which
will be leased to veteran households.
The proposed Paseo Adelanto Mixed Use Project would involve two adjacent buildings
generally in the current City Hall location, with parking wrapping around the buildings
similar to the current site configuration. The project site is proposed to be divided into a
1.2-acre parcel which would be developed with a three-story, 50-unit affordable housing
building, and a 1.02-acre parcel which would be developed with a two-story, 16,338
square foot City Hall building. The 1.2-acre site would be sold to Jamboree Housing as
part of a Disposition and Development Agreement between the City and Jamboree that
is still being negotiated.
The proposed site plan also details a courtyard dedicated for City Hall activities and a
separate courtyard dedicated for residential activities, which includes a 560 sq. ft.
detached lattice patio cover. The reconfigured parking lot area would provide 88 parking
stalls, 56 of which would be dedicated for City Hall Use, 28 which would be dedicated
for residential use, and four which would be shared. The proposed buildings have been
designed with Spanish Colonial architecture consistent with the traditional architecture
of San Juan Capistrano. The site improvements are intended to be compatible with the
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surrounding properties and provide a desirable environment for residents of the
Jamboree project, City employees and visitors to the City Hall facility.
Project Entitlement Applications
In order to develop the proposed Paseo Adelanto Mixed Use Project, City approval of
the following applications is required:
1) Affordable Housing Requirements & Concessions for a requested density bonus
and waivers of certain development and parking standards;
2) Architectural Control (AC) 21-023 for the review of the architectural design of the
structures, site amenities and landscape;
3) Tree Removal Permit (TRP) 21-036 for the proposed removal of 16 trees and
replacement with 49 trees as a part of the development proposal.
4) Grading Plan Modification (GPM) 21-024 for the review of onsite grading and
elevations to create building pads raised above the flood zone;
5) Sign Program (SP) 22-002 to establish uniform building mounted signage within the
Very High Density residential zone, where it is currently not permitted;
6) Zone Variance (ZV) 21-011 for a proposed encroachment into the 20’ rear yard
setback for the City Hall building, creating a 0’ setback with the proposed residential
property;
7) Flood Plain Land Use Permit (FP) 20-001 for the review and evaluation of potential
flood impacts due to nearby Trabuco Creek.
As a procedural matter, the Planning Commission would typically take final action on
applications one through six listed above. However, since the Land Use Code requires
the Planning Commission to provide a recommendation for final action on the
Floodplain Land Use Permit to the City Council, staff presented all the requested
entitlements together as a single package for Planning Commission review and
recommendation to the City Council, in accordance with Land Use Code Section 9-
2.301(j)(1). A detailed description of each project component subject to the applications
listed above is contained in the January 26, 2022, Planning Commission Staff Report
provided as Attachment 6.
Planning Commission Review
On January 26, 2022, the Planning Commission conducted a public hearing to consider
the proposed project applications. As discussed in the attached Planning Commission
staff report, staff addressed the appropriateness of the proposed project entitlements
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and concluded that the findings could be made to support the project approvals. The
Planning Commission supported the findings and adopted Resolution 22-01-26-02,
recommending that the City Council approve all the proposed entitlement applications
related to the Paseo Adelanto Mixed Use Project.
As described in the attached January 26 Planning Commission Staff Report, while the
Design Review Committee recommended approval of the proposed project, the DRC
also recommended that Jamboree, at its willingness and discretion, return to the DRC at
some time in the future to further review the proposed City Hall architecture and
landscaping. As a result, the Planning Commission recommended that the City Council
consider adding a condition of approval that requires the City Hall architecture and
landscaping to return to the Design Review Committee for further refinement.
Jamboree is amenable to continuing to work with staff and the Design Review
Committee to refine the architecture and landscaping of the City Hall development.
However, the necessary outside funding sources for the project cannot be pursued if the
project is conditioned to return for additional discretionary review. Therefore, if the City
Council supports the Planning Commission’s proposed condition, staff recommends that
the condition be clear that Jamboree is under no obligation to make any further
refinements suggested by the Design Review Committee, and that the entitlement
applications, including the Architectural Control application governing the project’s
design, are approved this evening in final form.
Option Agreement Between Jamboree and the City
The current Exclusive Negotiating Agreement (ENA) between the City and Jamboree is
set to expire on April 4, 2022. In addition to working through the specifics of the project
layout and design, staff and Jamboree have been working on a Disposition and
Development Agreement (DDA) that will address the transfer of 1.2-acres of City-owned
land to Jamboree, identify the funding sources for the affordable housing component,
and memorialize the specifications of the new City Hall building.
The basic premise of the future DDA is that 1.2-acres of the City-owned site would be
sold to Jamboree at fair market value for construction of the affordable housing project.
The proceeds from the sale ($8,750,000) would be used to construct the new City Hall
building. The City would commit $5,900,000 of bond monies from the Successor
Agency, which are restricted for the purpose of developing affordable housing, as well
as $1,330,000 from state Permanent Local Housing Allocation funds toward the
affordable housing project. In addition, the DDA would include Jamboree’s commitment
to construct a new City Hall in strict accordance with completed schematic plan
drawings.
The affordable housing project is proposed to be partially being funded by California
Tax Credits, which require proof that a project is ready for construction and that the land
is controlled by the applicant. Approval of a project’s entitlement applications
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demonstrates that a project is ready for construction, and an executed DDA typically is
used to demonstrate that the land is controlled by the applicant. Since more time is
needed to negotiate and finalize the DDA, an Option Agreement has been prepared
which would allow Jamboree to apply for California Tax Credits as part of the next
funding cycle. The Option Agreement essentially serves as a bridge, granting Jamboree
the option to purchase 1.2 acres of the project site from the City, provided that the City
and Jamboree agree to the terms of a DDA within six months. In addition, the Option
Agreement conditionally commits the City to providing $5.9 million in affordable housing
bond monies to Jamboree for the affordable housing project. If the terms of the DDA are
not mutually agreed upon by the City and Jamboree within six months, the Option
Agreement would no longer be valid. The Option Agreement has been reviewed by staff
and the City Attorney’s office.
CBRE Exclusive Representation Agreement
The first phase of the construction schedule for the new City Hall and Jamboree
Housing project would be the demolition of the existing City Hall buildings, including the
City Council Chambers. To effectively re-use remaining City facilities during
construction, the former Utilities Administration and Operations buildings are anticipated
to be utilized for relocation of the One Stop Shop, inspector workspace and
miscellaneous customer service activities. Due to their location adjacent to the existing
City Hall building, use of the former Utilities building would provide a low-cost,
convenient and established facility for those conducting regular business with City
departments. These existing buildings would need to be modified to allow for their
interim use prior to the demolition of the existing City Hall building.
A second project to support the construction of the new City Hall is relocation of the City
Council Chambers to the Community Center. This relocation would be a permanent
change. The balance of the City’s administrative staff would need to be relocated to off-
site office space for the duration of the construction schedule. In order to secure interim
office space during construction of the new City Hall, staff recommends the City Council
engage CBRE, Inc. for commercial real estate services. Rick Warner with CBRE has
provided the City with excellent real estate services in the past and has submitted an
Exclusive Representation Agreement (Attachment 3) for this proposed transaction. The
agreement calls for CBRE to research and present properties suitable for interim City
offices and assist in lease negotiations. The proposed CBRE agreement is for a twelve-
month term and calls for commission to be paid by the owner/lessor.
Griffin Structures Agreement for Program and Construction Management
The construction of a new City Hall facility and permanent relocation of the City Council
Chambers to the Community Center are an opportunity to create an inviting and efficient
base for civic engagement for the next several decades. Given the importance of these
facilities and the significant investment of City resources, it is appropriate to retain
experts in the field of city hall construction to assist staff in effectively managing the
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project and identifying opportunities for cost savings during design and construction. To
that end, staff is recommending that the City approve an agreement with Griffin
Structures, which has been advising the City throughout the conceptual design phase
and supporting the City in its negotiations with Jamboree.
Griffin Structures has helped numerous cities achieve the development of high-quality,
cost-effective facilities. Local client agencies include the County of Orange, the cities of
Brea, Irvine, Lake Forest, Orange, Rancho Santa Margarita and Yorba Linda. Griffin
also has experience in similar mixed-use projects, blending civic functions and housing
developments. These include the Santa Cruz Downtown Housing and Library Mixed-
Use Project, and the Lillan Court and Bloomington Grove Housing project.
Griffin Structures has submitted a proposal to provide program and construction
management services for the new City Hall, temporary City Hall, relocation of the
Council Chambers and refurbishment of the former Utilities Department space
(Attachment 4). The scope includes oversight of design, schedule management, quality
control, cost control, constructability review, contract administration, construction
observation and project close-out. The final cost estimates for the new City Hall building
and Council Chambers relocation will be determined upon completion of the final design
plans and specifications. Griffin Structures proposed fee is $645,000, which is within
general industry standard for a project of this scope. The agreement with Griffin
includes a performance-based retention clause that provides that up to 10% of the
compensation owed to Griffin is subject to release based solely on the City’s overall
satisfaction with Griffin’s services.
Pursuant to Municipal Code Section 3-4.310(e), staff is recommending that the City
Council find that entering into an agreement with Griffin Structures is exempt from the
request for proposal process. As discussed above, Griffin Structures has been working
with staff and Jamboree for several months and is already very familiar with this unique
mixed-use project, has provided similar services to numerous government clients, and
has specialized knowledge and skills that will assist the City in overseeing the
construction of high-quality, cost-effective public facilities.
FISCAL IMPACT:
A portion of the staff time associated with the preliminary planning phase of this project
is covered by a deposit from Jamboree. The cost to build the new City Hall would be
funded by the sale proceeds of the City Hall site to Jamboree. It is expected that the
cost to reconfigure the Community Center to accommodate a Council Chambers,
program and construction management for the new City Hall and Community Center
improvements, City Hall relocation costs, information technology costs, security costs
and certain internal furnishing costs would be funded by $1.5 million of American
Rescue Plan Act (ARPA) funding, as provided by the City’s ARPA spending plan that
was approved by City Council on October 5, 2021. The City would also commit $5.9
million in Successor Agency bond funding to Jamboree’s Permanent Supportive
Housing project.
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ENVIRONMENTAL IMPACT:
This project has been reviewed in accordance with the California Environmental Quality
Act. The City's Environmental Administrator has determined that the project is statutorily
exempt from further review pursuant to Government Code section 65583.2(h) and (i),
which applies when sites are re-zoned to accommodate the Regional Housing Needs
Assessment allocation for low and very low income housing, and results in the future
approval for multifamily rental projects on those sites to be considered a “use by right,”
which is defined to mean that the review shall not include approval that would constitute
a “project” for purposes of CEQA.
On May 6, 2016, the City adopted Resolution No. 17-05-03-01, which approved a
General Plan Amendment to amend the City’s Housing Element. That resolution
amending the Housing Element identified the City Hall site as a site that would be zoned
for low and very-low income affordable housing. On May 17, 2016, the City adopted
Ordinance No. 1032 to rezone the property to Very High Density to accommodate the
City’s RHNA allocation. This rezoning ensured that the City’s inventory of housing sites
in its Housing Element could accommodate all of the low and very low income RHNA
assigned to the City. Because the Project site was rezoned to accommodate the City’s
RHNA allocation, it would come under the provisions of Government Code Section
65583.2(i) and be considered a “use by right” that would not trigger CEQA review
because it is not a “project” as that term is defined under CEQA.
In conclusion, because the Project site was identified in the City’s Housing Element
inventory of sites suitable for lower income housing, and was subsequently rezoned
after the City adopted the Housing Element under a program to accommodate lower
income housing, it should be considered a “use by right” site, and any City approvals to
implement the Project would not be considered a “project” for purposes of CEQA
compliance. If the Project receives final approval, a Notice of Exemption would be filed
with the County Recorder’s Office within 5 days of such approval.
PRIOR CITY COUNCIL REVIEW:
• On March 16, 2021, the City Council authorized the City Manager to execute an
Amended ENA with Jamboree for further review and consideration of the Paseo
Adelanto mixed use development.
• On April 7, 2020, the City Council authorized the City Manager to execute an ENA
with Jamboree for review and consideration of the Paseo Adelanto mixed use
development.
COMMITTEE AND COMMISSION REVIEW:
• On January 26, 2022, the Planning Commission reviewed all entitlements for the
project and, on a 5-0 vote, adopted a resolution recommending the City Council
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approve the Paseo Adelanto mixed use project, and recommended consideration of
an additional condition that the architecture and landscape plans return to the
Design Review Committee for final refinement.
• On January 25, 2022, the Cultural Heritage Commission (CHC) determined that the
proposed project would be physically and aesthetically compatible with the adjacent
San Juan Hot Springs Dance Hall, a structure identified on the City’s Inventory of
Historic and Cultural Landmarks, in accordance with City Council Policy 603, Section
5.
• On January 13, 2022, the Design Review Committee (DRC) conducted a formal
review of the proposed project’s development design plans. The DRC, on a 3-0 vote,
recommended that the proposed project be approved by the Planning Commission
with three recommended design changes. The changes were incorporated into the
plans considered by the Planning Commission or were added as conditions of
approval. Based on further discussions with the property owner immediately north of
the City Hall property condition of approval number 65, which addresses fencing
between the properties, has been further modified to allow more flexibility in
providing a mutually agreeable fencing solution.
NOTIFICATION:
Pursuant to Title 9, Land Use Code, Section 9-2.302(f), Notification Procedures, and
City Council Resolution 10-18-17-03, a public notification of the proposed project was
mailed to every property owner within 1,000 feet of the project boundaries and was
published in the Capistrano Valley News at least ten days prior to the February 15,
2022, public hearing date. In addition, pursuant to City Council Resolution 10-08-17-03,
on-site signage was posted at least 20 days in advance of the February 15, 2022, public
hearing date.
ATTACHMENT(S):
Attachment 1 – Resolution Approving AC 21-023, TRP 21-036, GPM 21-024, SP 22-
002, ZV 21-011, FP 21-003 and find that the project qualifies for a
statutory exemption under CEQA
Attachment 2 – Option Agreement for City Hall Site
Attachment 3 – Exclusive Representation Agreement with CBRE
Attachment 4 – Griffin Structures PSA and Proposal
Attachment 5 – Project Site Map
Attachment 6 – January 26, 2022, Planning Commission Staff Report
ENCLOSURES:
Enclosure 1 – Residential Development Architectural & Civil Plans