24-0507_ADVANCED GROUP 99-SJ & 03-79-2 (ARES)_Agenda Report_E9City 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: Paul M. Garcia, AICP, Principal Planner
DATE: May 7, 2024
SUBJECT: Extension of Development Agreement No. 21-001 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 to Extend its Duration by Three Years; and, a
Finding That Said Action is Consistent with the Environmental Impact
Report (EIR) Prepared and Approved for the Distrito La Novia – San
Juan Meadows Project (SCH #2008061078), Therefore, the EIR
Serves as the Environmental Documentation for This Action Under
Provisions of Public Resources Code Section 21166 and State
CEQA Guidelines Section 15162 and no Further CEQA Review is
Required (Property Owner: Robb Cerruti, Advanced Group 99-SJ &
Advanced Group 03-79-2)
RECOMMENDATION:
1.Authorize the Mayor to execute a First Operating Memoranda to Development
Agreement 21-001 (Attachment 1) between the City of San Juan Capistrano and
Advanced Group Related to the Distrito La Novia,- San Juan Meadows Project, to
extend its duration by three years to June 7, 2027; and
2. Make a determination that no further environmental review is required for said
action pursuant to Public Resources Code section 21166 and State CEQA
Guidelines Section 15162.
EXECUTIVE SUMMARY:
The Distrito La Novia – San Juan Meadows project is an approved 154-acre mixed use
residential/commercial development that encompasses two sites separated by La Novia
Avenue (Attachment 2). The project entitlements and a Development Agreement (“DA”)
between the City and property owner (“Applicant”) were approved in 2010. Pursuant to
Section 5.4 of the DA, changes and adjustments to the DA can be made without
5/7/2024
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City Council Agenda Report
May 7, 2024
Page 2 of 6
amendment, and rather through an operating memorandum. The DA has been extended
twice since 2010 and is currently set to expire on June 7, 2024. The proposed First
Operating Memoranda would extend the duration of the DA for an additional three years,
to June 7, 2027.
DISCUSSION/ANALYSIS:
Project History
The 154-acre Distrito La Novia – San Juan Meadows project encompasses two sites
separated by La Novia Avenue. The Distrito La Novia site is 18.7 acres located between
San Juan Creek Road southward to La Novia Avenue, eastward from Valle Road to the
San Juan Hills Golf Club. The San Juan Meadows site is 137 acres located south of La
Novia Avenue and north of McCracken Hill and the Pacifica San Juan project. A 75-acre
portion of the San Juan Meadows project area was the site of the former Forster Canyon
Landfill, which was operated by the County of Orange between 1958 and 1975.
In 2010, the City approved project entitlements allowing the development of 130 attached
residential unit and 75,100 square feet of commercial space and 16,000 square feet of
office space on the Distrito site, and 94 single-family residential dwellings and an
equestrian facility on the San Juan Meadows site (Attachment 3).
In 2011, the approved project was subject to a referendum that forced a ballot measure
asking voters to consider overturning the Council’s decision to grant a General Plan
Amendment for the project. In June 2011, Ballot Measure B was passed by the voters,
affirming the City Council’s decision to approve the General Plan Amendment that
allowed the project to proceed as approved in 2010. During that same year, the Applicant
began working to put forth a water quality control plan to the California Regional Water
Quality Control Board (“CRWQB”) for the post-closure of the Forster Canyon Landfill site.
In December 2016, the project’s water quality control plan was approved by the CRWQB,
allowing the Applicant to move forward with the project as originally proposed.
In approving the project in 2010, the City Council conditioned the project to decrease the
density and commercial square footage. As a result, City approval of a revised
Architectural Control (“AC”) application for the Distrito portion of the project is required to
occur prior to the issuance of a grading permit for the Distrito site. In addition, approval of
an AC application will also be required for development of the single-family homes within
the San Juan Meadows site. Furthermore, approval of a Conditional Use Permit is
required for the equestrian facility.
In December 2022, rough grading plans for the San Juan Meadows site were issued and
grading activities commenced shortly thereafter and continue to this day. The rough
grading plan allows the Applicant to rough-grade and “balance” the site prior to the
issuance of a precise grading permit.
Project Development Agreement
City Council Agenda Report
May 7, 2024
Page 3 of 6
On November 16, 2010, the DA between the City of San Juan Capistrano and Advanced
Group 99-SJ & Advanced Group 03-79-2 for the Distrito La Novia – San Juan Meadows
project was entered into (Attachment 4). The DA includes a description of the approved
entitlements, a legal description for both project sites and a list of the public benefits to
the City and obligations of the developer. The term of the DA was originally set to expire
on November 16, 2016.
In 2017, the Applicant asserted that the term of the DA was extended to June 2017 due
to the “Force Majeure” clause in Section 12.3 of the DA, which makes provisions for
extension of time of performance due to “delays and defaults due to… voter initiative or
referenda” among other factors. The City Attorney agreed that a Force Majeure delay was
caused by the 2011 referendum and concurred that the delay resulted in an extension of
the DA to June 7, 2017. Subsequently, on June 6, 2017, the parties entered into a First
Amendment to the DA that extended the duration of DA from June 7, 2017, to June 7,
2021 (Attachment 5). Thereafter, on June 1, 2021, the Parties entered into a Second
Amendment to the DA which extended the duration of the DA again from June 7, 2021,
to June 7, 2024 and required 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
(Attachment 6).
First Operating Memoranda to Development Agreement
The current DA as amended by the Second Amendment, is set to expire on June 7, 2024.
Pursuant to Section 2.3 of the DA, as amended by the Second Amendment, the City has
the unilateral right to extend the term of the current DA for an additional three years
beyond June 7, 2024, for the purpose of enforcing the property owner’s DA obligations.
Staff believes that the DA should be extended under this provision since the property
owner has invested material resources in moving the project forward and has been
subject to certain weather-related delays. The extension would be memorialized through
the execution of a First Operating Memoranda pursuant to DA Section 5.4. Said section
allows the use of a memoranda to document mutually agreed upon changes, adjustments
or clarifications to the DA without a formal DA amendment.
The proposed First Operating Memoranda extends the duration of the DA by three years,
from June 7, 2024 to June 7, 2027. Except as outlined within the First Operating
Memoranda, the remainder of the terms and conditions of the DA would remain
unchanged and are in full force and effect. The property owner has signed the
Memoranda. Staff is recommending that the City Council approve and authorize the
Mayor to execute the Memoranda.
FISCAL IMPACT:
There is no fiscal impact associated with the recommended action. The costs associated
with this action are being funded by the Applicant through a developer deposit account.
ENVIRONMENTAL IMPACT:
City Council Agenda Report
May 7, 2024
Page 4 of 6
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). Once
an EIR has been certified, the lead agency may not require preparation of a subsequent
or supplemental EIR unless one of three triggering conditions exists: (1) substantial
changes are proposed in the project that will require major revisions of the EIR, (2)
substantial changes occur in circumstances under which the project is being undertaken
that will require major revisions in the EIR, or (3) new information of substantial
importance to the project that was not known and could not have been known when the
EIR was certified as complete becomes available. (State CEQA Guidelines, § 15162;
Pub. Resources Code, § 21166.)
Staff recommends that no further environmental review is required because, except as
outlined within the First Operating Memoranda, no changes have been made to the
project. The proposed actions are consistent with the previously certified Environmental
Impact Report (EIR) for the Distrito La Novia – San Juan Meadows project (SCH
#2008061078). The action would not:
1. Constitute a substantial change to the project that will require major revisions of
the certified Final Environmental Impact Report for the Distrito La Novia – San
Juan Meadows project (State Clearinghouse No. 2008061078) due to the
involvement of new significant environmental effects or a substantial increase in
the severity of previously identified significant effects;
2. Constitute a substantial change with respect to the circumstances under which
the project is administered that will require major revisions of the certified Final
Environmental Impact Report for the Distrito La Novia – San Juan Meadows
project (State Clearinghouse No. 2008061078) due to the involvement of new
significant environmental effects or a substantial increase in the severity of the
previously identified significant effects; and
3. 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
Final Environmental Impact Report for the Distrito La Novia – San Juan Meadows
project (State Clearinghouse No. 2008061078) was certified that shows any of
the following: (a) the project will have one or more significant effects not
discussed in the certified Final Environmental Impact Report for the Distrito La
Novia – San Juan Meadows project (State Clearinghouse No. 2008061078); (b)
significant effects previously examined will be substantially more severe than
shown in the certified Final Environmental Impact Report for the Distrito La Novia
– San Juan Meadows project (State Clearinghouse No. 2008061078); (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 project proponents decline to adopt the mitigation measure
or alternative; or (d) mitigation measures or alternatives which are considerably
different from those analyzed in the certified Final Environmental Impact Report
for the Distrito La Novia – San Juan Meadows project (State Clearinghouse No.
City Council Agenda Report
May 7, 2024
Page 5 of 6
2008061078) would substantially reduce one or more significant effects on the
environment, but the project proponents decline to adopt the mitigation measure
or alternative.
A Notice of Determination (NOD) will be filed with the County Recorder's Office and
submitted to the State Clearinghouse within 5 days should the project receive final
approval.
PRIOR CITY COUNCIL REVIEW:
• On June 1, 2021, the City Council approved the Second Amendment to the DA
which extended the DA from June 7, 2021 to June 7, 2024, and became effective
July 15, 2021.
• 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,and became effective July 6,
2017.
• 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.
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 following individuals have received a courtesy notification of this item:
Robb Cerruti, Advanced Group 99-SJ & Advanced Group 03-79-2 (Applicant)
ATTACHMENTS:
City Council Agenda Report
May 7, 2024
Page 6 of 6
Attachment 1 – First Operating Memoranda to Development Agreement
Attachment 2 – Aerial Photo of the Project
Attachment 3 – Approved Conceptual Plans
Attachment 4 – Development Agreement
Attachment 5 - Development Agreement Amendment #1
Attachment 6 - Development Agreement Amendment #2
ATTACHMENT 1
Aerial PhotoProject Site
Distrito La Novia Conceptual Site Plan
ATTACHMENT 3
San Juan Meadows Conceptual Site Plan
ATTACHMENT 5
ATTACHMENT 6