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21-0615_SOUTH COAST INVESTORS II, LLC_Agenda Report_E7City of San Juan Capistrano Agenda Report TO: Honorable Mayor and Members of the City Council FROM: Benjamin Siegel, City Manager SUBMITTED BY: Charlie View, Assistant City Manager PREPARED BY: Eric P. Bauman, Assistant Utilities Director DATE: June 15, 2021 SUBJECT: Notice of Completion Resolution and Release of Corresponding Sureties Pertaining to the Plaza Banderas Hotel Mixed Use Development (Inn at the Mission), (RD Olson Construction, Inc. c/o South Coast Investors II, LLC) RECOMMENDATION: 1.Adopt a Resolution accepting the onsite public water facility improvements pertaining to the Plaza Banderas Hotel Mixed Use Development (Inn at the Mission); and, 2.Direct the City Clerk to process the recording of the Notice of Completion with the Orange County Recorder; and, 3.Authorize the City Clerk to release the corresponding bonds 35 days after the recordation of the Notice of Completion. EXECUTIVE SUMMARY: The developer of the Plaza Banderas Hotel Mixed Use Development, now the Inn at the Mission, has requested the acceptance of facilities and the release of the water onsite and offsite improvement bonds held by the City. These improvements have been inspected and satisfactorily completed. Staff recommends adoption of a resolution accepting the work as complete, the filing of a Notice of Completion and the release of the corresponding bonds. 6/15/2021 E7 City Council Agenda Report June 15, 2021 Page 2 of 3 DISCUSSION/ANALYSIS: The Inn at the Mission Inn is a mixed-use development on the 3.18 acres located at 26871 & 26891 Ortega Highway, generally located at the northeast corner of Ortega Highway and El Camino Real. The development consists of a 74,973 square foot, 124-room hotel and approximately 14,500 square feet of commercial use including 6,509 square feet of retail commercial floor area, a 5,747 square foot restaurant, and a 1,971 square foot private office. The project was originally approved on October 5, 2010, as the Plaza Banderas Hotel Mixed Use Development. The developer has completed the improvement work as required by the Conditions of Approval. The improvements have been inspected and have been found to be completed per City standards and to the satisfaction of the Assistant Utilities Director. The date of substantial completion is June 8, 2020, the date of the Certificate of Occupancy. With the completion of the improvements and the one-year warranty period, the bond release is recommended as follows: SURETY COVERAGE Developers Surety and Indemnity Company is Federal Insurance Company. Bond Number Type of Improvement Bond Amount Bond #8239-47-14 Water & Appurtenances $ 377,773.00 Total Bond Amount $ 377,733.00 FISCAL IMPACT: There is no fiscal impact associated with the recommended actions. ENVIRONMENTAL IMPACT: The recommended action of adopting a resolution accepting the work of improvements pertaining to Tract Map 16146, 17655 and 17713 is not subject to CEQA pursuant to Section 15060(c)(3) of CEQA Guidelines because the action is not a project as defined in Section 15378 of the CEQA Guidelines, and the action has no potential for resulting in physical change to the environment, directly or indirectly. PRIOR CITY COUNCIL REVIEW: • On November 5, 2018, the City Council adopted a resolution affirming the Planning Commission’s approval of a modification to the Inn at the Mission Hotel site plan associated with Architectural Control (AC) 18-024. • On October 5, 2010, the City Council approved the project with Resolution 10-10- 05-05, as the Plaza Banderas Hotel Mixed Use Development. City Council Agenda Report June 15, 2021 Page 3 of 3 COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: This item does not require commission or committee review. NOTIFICATION: • RD Olson Construction, Inc. c/o South Coast Investors II, LLC ATTACHMENT(S): Attachment 1 - Resolution Attachment 2 - Notice of Completion ATTACHMENT 1, Page 1 of 2 RESOLUTION NO. 21-06-15-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, DETERMINING COMPLETION OF WORK IN ACCORDANCE WITH APPROVED PLANS AND SPECIFICATIONS FOR THE CONSTRUCTION OF ON-SITE AND OFF-SITE IMPROVEMENTS ASSOCIATED WITH PLAZA BANDERAS HOTEL MIXED USE DEVELOPMENT (NOW THE INN AT THE MISSION) (APPLICANT: RD OLSON CONSTRUCTION, INC. C/O SOUTH COAST INVESTORS II, LLC.) WHEREAS, on October 5, 2010, the City Council adopted Resolution No. 10-10- 05-05 conditionally approving the Plaza Banderas Hotel Mixed Use Development (now the Inn at the Mission) on 3.18 acres of land; and, WHEREAS, RD Olson Construction, Inc, c/o South Coast Investors II, LLC, has requested that the City determine that such on-site and off-site improvements are completed and the corresponding remaining surety bonds be released accordingly. The surety release is as follows: SURETY COVERAGE (Federal Insurance Company) Bond Number Type of Improvement Bond Amount #8239-47-14 Water (plan UD16-0008) $ 337,773.00 Total Bond Amount $ 337,773.00 NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Juan Capistrano as follows: SECTION 1. That the improvement work required to be performed by said developer has been completed and approved. SECTION 2. That the completed work with a value of $337,773.00 is accepted. SECTION 3. That the sureties described in the chart above may be released accordingly. PASSED, APPROVED, AND ADOPTED this 15th day of June 2021. John Taylor, Mayor ATTACHMENT 2, Page 2 of 2 ATTEST: _____________________________ Maria Morris, City Clerk APPROVED AS TO FORM: _____________________________ Jeffrey C. Ballinger, City Attorney BEST BEST & KRIEGER LLP ATTACHMENT 2, Page 1 of 1 RECORDED AT REQUEST OF AND RETURN TO: City of San Juan Capistrano City Clerk's Office 32400 Paseo Adelanto San Juan Capistrano, CA 92657 RECORDING FEES EXEMPT DUE TO GOVERNMENT CODE SECTION 27383 _____________________________________ Maria Morris, City Clerk San Juan Capistrano, CA NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN that on October 5, 2010, the City Council approved General Plan Amendment 10-001, with Resolution #10-10-05-05, and Conditions of Approval; for the construction of on-site and off-site improvements relating to the development of Plaza Banderas Hotel Mixed Use Development (now the Inn at the Mission) in San Juan Capistrano. That said work was substantially completed on May 20, 2020, by the successor in interest to the developer RD Olson Construction, Inc. c/o South Coast Investors II, LLC according to plans and specifications and to the satisfaction of the City, and that said work was accepted by the City Council of the City of San Juan Capistrano, as the owner, 32400 Paseo Adelanto, San Juan Capistrano, California 92675, at a regular meeting thereof held on the 15th day of June 2021 by Resolution No. 21-06-15-XX. That upon said contract, Federal Insurance Company a corporation organized and existing under laws of the state of Indiana was surety for the bonds given by the said company as required by law. Dated at San Juan Capistrano, California, this 15th day of June 2021. __________________________________________ Maria Morris, City Clerk City of San Juan Capistrano STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) I, MARIA MORRIS, the duly appointed and qualified City Clerk of the City Council of the City of San Juan Capistrano, California, DO HEREBY CERTIFY, under penalty of perjury that 1) I have read the foregoing document and know the contents thereof, and the facts therein state are true of my own knowledge; 2) I declare the forgoing is true and correct; and 3) the foregoing Notice of Completion was duly and regularly ordered to be recorded in the Office of the Orange County Recorder by said City Clerk. Dated at San Juan Capistrano, California, this 15th day of June 2021. __________________________________________ Maria Morris, City Clerk, City of San Juan Capistrano