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21-0615_ADVANCED GROUP 99-SJ & 03-79-2 (ARES)_Agenda Report_E8City of San Juan Capistrano Agenda Report TO: Honorable Mayor and Members of the City Council FROM: Benjamin Siegel, City Manager SUBMITTED BY: Maria Morris, City Clerk DATE: June 15, 2021 SUBJECT: Adoption of an Ordinance Approving an Amendment to Development Agreement (DA) 21-001; A Request for Approval of a Three-year Extension to the Development Agreement Between the City of San Juan Capistrano and Advanced Group Related to the Distrito La Novia - San Juan Meadows 154-acre Mixed Use Residential and Commercial Project. (Applicant: Robb Cerruti, Advanced Group 99- SJ & Advanced Group 03-79-2) RECOMMENDATION: Approve the second reading and adoption of an ordinance entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING AND ADOPTING THE SECOND AMENDMENT TO THE DEVELOPMENT AGREEMENT FOR THE DISTRITO LA NOVIA – SAN JUAN MEADOWS 154-ACRE MIXED USE RESIDENTIAL AND COMMERCIAL PROJECT, BETWEEN THE CITY OF SAN JUAN CAPISTRANO, ON THE ONE HAND, AND ADVANCED GROUP 99-SJ AND ADVANCED GROUP 03-79-2, ON THE OTHER, FOR A PROJECT LOCATED GENERALLY EAST OF INTERSTATE 5 AND VALLE ROAD, SOUTHWARD FROM SAN JUAN CREEK ROAD TO LA NOVIA AVENUE, AND FROM VISTA MARINA NORTHWARD TO LA NOVIA AVENUE WEST OF THE SAN JUAN HILLS GOLF CLUB (ASSESSOR PARCEL NUMBERS 666-292-01, AND 02, 666-311-02, THROUGH 04 AND 666-312-01) (THE "PROJECT").” EXECUTIVE SUMMARY: On June 1, 2021, the City Council approved the first reading and introduction of an ordinance approving a three-year extension to the Development Agreement with Advance Group 99-SJ and Advance Group 03-79-2 for the Distrito La Novia-San Juan Meadows Project. The ordinance will go into effect 30 days after passage. DISCUSSION/ANALYSIS: Not applicable. 6/15/2021 E8 City Council Agenda Report June 15, 2021 Page 2 of 3 FISCAL IMPACT: Not applicable. ENVIRONMENTAL IMPACT: This project has been reviewed in accordance with the California Environmental Quality Act (“CEQA”). A previous Environmental Impact Report (EIR) was prepared and approved for the Distrito La Novia – San Juan Meadows project and was certified by the City Council (Resolution 10-11-02-01) on November 2, 2010 (SCH #2008061078). The Development Agreement is consistent with the certified EIR; therefore, the EIR serves as the environmental documentation for this Development Agreement amendment under provisions of CEQA Section 21157.1 in that except for a term extension, no changes have been made to the project. The extension implements the equestrian facilities obligation of the Applicant as set forth in Section 7.1 and Exhibit “C” to the Development Agreement. The in-lieu fee obligation of this extension is merely establishing a funding mechanism for the provision of future public benefits and, as such, this extension is not “an essential step culminating in action that may affect the environment”, and therefore environmental review required under CEQA will be performed when one or more projects funded by the in-lieu fee are chosen and defined. (Kaufman & Broad-South Bay, Inc. v. Morgan Hill Unified School District, (1993) 9 Cal.App.4th 464). Likewise, the second in-lieu obligation (community gathering open space area in the location of the equestrian facility) will undergo environmental review if, and when, that eventuality takes place. PRIOR CITY COUNCIL REVIEW: • On June 1, 2021, the City Council approved the first reading and introduction of an ordinance approving a three-year extension to the Development Agreement with Advance Group 99-SJ and Advance Group 03-79-2 for the Distrito La Novia- San Juan Meadows Project. • On June 6, 2017, the City Council approved the first amendment to the DA which extended the DA from June 7, 2017, to June 7, 2021. • On June 7, 2011, the voters passed Measure B, upholding the City Council’s decision to approve the project. • On February 15, 2011, the City Council called a Special Municipal Election to be held June 7, 2011, for the purpose of submitting to the voters “Measure B” which asked the voters to consider the City Council’s November 2, 2010, approval of the Distrito Project. • On November 2, 2010, the City Council adopted four ordinances and several Resolutions approving the project, including the original DA. City Council Agenda Report June 15, 2021 Page 3 of 3 COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: • On April 27, 2021, the Planning Commission adopted a resolution recommending that the City Council approve the Applicant’s requested three-year extension to the DA and require the developer to pay the City an in-lieu fee if the project’s equestrian facility is not constructed, with the in-lieu fee utilized for equestrian uses. • On April 25, 2017, the Planning Commission adopted a resolution recommending City Council approval of a four-year DA extension pursuant to the terms of the original DA. • On April 27, 2010, the Planning Commission forwarded a recommendation of denial for the various project entitlements to the City Council. The main reasons given for the negative recommendation were concerns regarding increased traffic generated by the proposed residential uses, and the loss of a previously approved 300-room hotel on the site. NOTIFICATION: The City Clerk’s office will provide all necessary publications and posting of the Ordinance as required by law. ATTACHMENT(S): Attachment 1 – Draft Ordinance 1 O 1088 ORDINANCE NO. 1088 AN ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA APPROVING AND ADOPTING THE SECOND AMENDMENT TO THE DEVELOPMENT AGREEMENT FOR THE DISTRITO LA NOVIA – SAN JUAN MEADOWS 154-ACRE MIXED USE RESIDENTIAL AND COMMERCIAL PROJECT, BETWEEN THE CITY OF SAN JUAN CAPISTRANO, ON THE ONE HAND, AND ADVANCED GROUP 99-SJ AND ADVANCED GROUP 03-79-2, ON THE OTHER, FOR A PROJECT LOCATED GENERALLY EAST OF INTERSTATE 5 AND VALLE ROAD, SOUTHWARD FROM SAN JUAN CREEK ROAD TO LA NOVIA AVENUE, AND FROM VISTA MARINA NORTHWARD TO LA NOVIA AVENUE WEST OF THE SAN JUAN HILLS GOLF CLUB (ASSESSOR PARCEL NUMBERS 666-292-01, AND 02, 666-311-02, THROUGH 04 AND 666-312-01) (THE "PROJECT") WHEREAS, Advanced Group 99-SJ and Advanced Group 03-79-2 (together, the “Developer”) and the City of San Juan Capistrano (the “City”) are parties to that certain Development Agreement, dated as of November 16, 2010, and recorded on December 29, 2010, as Document No. 2010000704146 in the Official Records of Orange County (the “Development Agreement”); and WHEREAS, the parties entered into that certain First Amendment to Development Agreement as of July 6, 2017, and recorded on August 4, 2017, as Document No. 2017000323104 in the Official Records of Orange County (the “First Amendment”); and WHEREAS, on March 25, 2021, Developer submitted a request to extend the Development Agreement for an additional three years; and WHEREAS, on April 27, 2021, 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 (a) grant a three-year extension to the term of the Development Agreement, and (b)require the developer to pay the City an in-lieu fee if the approved project’s equestrian facility is not constructed, with the in-lieu fee utilized for equestrian uses; and WHEREAS, the City Council conducted a duly-noticed public hearing on June 1, 2021, pursuant to Government Code Section 65867 and Title 9, Land Use Code, Section 9-2.302 to consider the proposed 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 ATTACHMENT 1 2 O 1088 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 of the City of San Juan Capistrano hereby finds that the Development Agreement is covered under the previously adopted EIR and that except for a term extension, no changes have been made to the project. This extension implements the Equestrian Facilities obligation of the Owner as set forth in Section 7.1 and Exhibit “C” to the Development Agreement. The in-lieu fee obligation of this extension is merely establishing a funding mechanism for the provision of future public benefits and, as such, this extension is not “an essential step culminating in action that may affect the environment”, and therefore environmental review required under CEQA will be performed when one or more projects funded by the in-lieu are chosen and defined. (Kaufman & Broad-South Bay, Inc. v. Morgan Hill Unified School District, (1993) 9 Cal.App.4th 464). Likewise, the second in-lieu obligation (community gathering open space area in the location of the equestrian facility) will undergo environmental review if and when that eventuality takes place. SECTION 3. Findings. The City Council of the City of San Juan Capistrano makes the following additional findings: 1. The proposed extension to the Development Agreement remains consistent with the General Plan, including its Circulation Element because the project includes provisions for addressing project-related capital facility impacts to the city's infrastructure. 2. The proposed amendment and subsequent extension would not materially change or expand the scope of the development allowable under the original project approvals and the current Development Agreement for the Distrito La Novia - San Juan Meadows mixed-use development project. 3 O 1088 3. Extending the Development Agreement is in the public interest because it will provide for the development of equestrian facilities on the Project site, or the provision of $2,000,000 in public benefit funding as well as a community gathering open space area on the Project site should construction of the Project’s equestrian facilities not occur. 4. The proposed Development Agreement amendment is authorized and consistent with the provisions of Government Code Sections 65864 through 65869.5 and related City ordinances and policies. SECTION 4. Second Amendment. Pursuant to Government Code Section 65868, the City Council does hereby approve and adopt the "Second Amendment to the Development Agreement for the "Distrito La Novia - San Juan Meadows project" by and between the City of San Juan Capistrano and Advanced Group 99-SJ, and Advanced Group 03-79-2, 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. 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. 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, 4 O 1088 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 15th day of June 2021. _____ JOHN TAYLOR, MAYOR ATTEST: MARIA MORRIS, CITY CLERK