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Ordinance Number 1126 ORDINANCE NO. 1126 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT AMENDMENT 24-001 TO AMEND SECTION 4.1.3 OF THE EXISTING AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND ST. MARGARET OF SCOTLAND EPISCOPAL SCHOOL PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65864 ET SEQ. AND FINDING THAT SAID ACTION IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER CEQA GUIDELINES SECTION 15301, EXISTING FACILITIES (CLASS 1) (APPLICANT: ST. MARGARET OF SCOTLAND EPISCOPAL SCHOOL) WHEREAS, the City of San Juan Capistrano (“City”) has found that development agreements strengthen the public planning process, encourage private participation in comprehensive planning by providing a greater degree of certainty in that process, reduce the economic costs of development, allow for the orderly planning of public improvements and services, allocate costs to achieve maximum utilization of public and private resources in the development process, and ensure that appropriate measures to enhance and protect the environment are achieved; and, WHEREAS, pursuant to California Government Code Sections 65864 et seq., the City of San Juan Capistrano is authorized to enter into development agreements providing for the development of land under terms and conditions set forth therein; and, WHEREAS, on March 2, 2010, the City and St. Margaret of Scotland Episcopal School (the “Applicant” or “SMES”) entered into a Development Agreement (DA) with the City, which was recorded on April 7, 2010, as Document No. 2010000163395 in the Official Records of Orange County; and WHEREAS, the Applicant has requested approval of General Plan Amendment (GPA) 24-001, Code Amendment (CA) 24-003, Conditional Use Permit (CUP) 24-002, and Development Agreement Amendment (DA) 24-001 (collectively, the “Project”) to allow for educational uses within an approximately 3.7-acre area consisting of four parcels located at 31726, 31734, and 31736 Rancho Viejo Road (APNs 666-261-04, 666-261-05, 666-261-12 and a Portion of 666-261-14) (the “Project Site”); and WHEREAS, the Applicant is the owner of the Project Site; and WHEREAS, on March 19, 2024, the City Council approved the initiation of and directed staff to conduct an appropriate study for proposed GPA 24-001 and CA 24-003; and, WHEREAS, the Project has been processed pursuant to the Development Review Procedures set forth in Section 9-2.301 of the San Juan Capistrano Municipal Code (“Municipal Code”); and Ordinance 1126 2 March 18, 2025 WHEREAS, the General Plan Amendment, Code Amendment, Conditional Use Permit and Development Agreement amendment applications were filed concurrently; and, WHEREAS, pursuant to Section 21067 of the Public Resources Code, and, Section 15367 of the California Environmental Quality Act (“CEQA”) Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), the City of San Juan Capistrano is the lead agency for the proposed Project; and WHEREAS, the City's Environmental Administrator has determined that the Project is categorically exempt from CEQA pursuant to State CEQA Guidelines, Section 15301, Existing Facilities (Class 1); and WHEREAS, on February 12, 2025, the Planning Commission conducted a duly noticed public hearing, pursuant to Municipal Code Section 9-2.302 to consider all public testimony on the proposed Project and all relevant public comments and all documents and evidence submitted, including but not limited to the staff report, attachments, and materials submitted by the Applicant. The Planning Commission adopted a resolution recommending that the City Council find the action categorically exempt from CEQA under CEQA Guidelines Section 15301, Existing Facilities (Class 1), and approve GPA 24-001, CA 24-003, CUP 24-002, and DA 24-001; and WHEREAS, on March 4, 2025, the City Council conducted a duly noticed public hearing on this Ordinance pursuant to Municipal Code Section 9-2.302, at which time all persons wishing to testify were heard and the Project was fully considered; and, WHEREAS, the City has approved all necessary entitlements for the Project; and WHEREAS, the City and Applicant have reached mutual agreement and desire to amend the Development Agreement to facilitate the Project subject to conditions and requirements set forth therein; and, WHEREAS, the terms and conditions of the Development Agreement Amendment have undergone review by the City Council at a publicly noticed hearing and have been found to be fair, just and reasonable and consistent with the General Plan. NOW, THEREFORE, the City Council of the City of San Juan Capistrano does hereby ORDAIN as follows: Section 1. The recitals above are incorporated herein by reference as findings of the City Council. Section 2. Pursuant to Resolution No. 25-03-04-01, the City Council has determined that the entire Project, including approval of Development Agreement Amendment 24-001, is Categorically Exempt from CEQA review pursuant to State CEQA Guidelines, Section 15301, Existing Facilities (Class 1) and no exceptions to the exemption in State CEQA Guidelines, Section 15300.2 apply, as further set forth therein. Ordinance 1126 3 March 18, 2025 Section 3. The City Council of the City of San Juan Capistrano does hereby make the following findings pursuant to California Government Code Section 65867.5(b), and based on the entire record before the City Council, including all written and oral evidence presented to the City Council: 1. The proposed Development Agreement Amendment is consistent with the Land Use Element of the General Plan, in that the proposed General Plan Amendment to allow for an approximately 3.7-acre area, currently designated for commercial use, to be utilized by SMES for private school use, would be for the general public benefit and will not impact the financial viability of the City. 2. The proposed Development Agreement Amendment in the best interests of the City and is consistent with good land use practices and would provide substantial benefits to the City, as described in the Amendment, staff report, and Ordinance. 3. The proposed Development Agreement Amendment would promote the public convenience, health, interest, safety, or welfare of the City, and would not adversely affect the orderly development of property or the preservation of property values. The Amendment ensures the orderly expansion of SMES and provides public benefit appropriate to the Project. 4. The proposed Development Agreement Amendment is in compliance with the conditions, requirements, restrictions, and terms of the Municipal Code, in that it includes all mandatory provisions required by Government Code § 65865.2 and does not include any provisions that are not authorized by the Development Agreement Act. Section 4. Pursuant to California Government Code Section 65865, the City Council hereby approves Development Agreement Amendment 24-001, attached hereto as Exhibit "A", entitled “First Amendment to the Development Agreement (St. Margaret’s Episcopal School Expansion Project) Between the City of San Juan Capistrano and St. Margaret of Scotland Episcopal School”. Section 5. The documents and materials associated with this Ordinance 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 Office of the City Clerk is the custodian of records for the record of proceedings. Section 6. This Ordinance shall take effect thirty (30) days after its adoption. Section 7. If any provision of this Ordinance or its application to any person or circumstance is held to be invalid by a court of competent jurisdiction, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this Ordinance 1126 4 March 18, 2025 Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof. Section 8. The City Clerk shall certify to the adoption of this Ordinance and post or publish this Ordinance as required by law. PASSED, APPROVED AND ADOPTED this 18th day of March 2025. _____________________________________ TROY A. BOURNE, MAYOR ATTEST: ________________________________________ CHRISTY JAKL, CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) I, CHRISTY JAKL, City Clerk of the City of San Juan Capistrano, do hereby certify that the foregoing is a true and correct copy of Ordinance No. 1126 which was regularly introduced and placed upon its first reading at the Regular Meeting of the City Council on the 4th day of March 2025 and that thereafter, said Ordinance was duly adopted and passed at the Regular Meeting of the City Council on the 18th day of March 2025 by the following vote, to wit: AYES: COUNCIL MEMBERS: Farias, Hart, Taylor, Campbell and Mayor Bourne NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None _____________________________________ CHRISTY JAKL, CITY CLERK Ordinance 1126 5 March 18, 2025 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss AFFIDAVIT OF POSTING CITY OF SAN JUAN CAPISTRANO ) I, CHRISTY JAKL, declare as follows: That I am the duly appointed and qualified City Clerk of the City of San Juan Capistrano; That in compliance with State laws, Government Code section 36933(1) of the State of California, on the 5th day of March 2025, at least 5 days prior to the adoption of the ordinance, I caused to be posted a certified copy of the proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT AMENDMENT 24-001 TO AMEND SECTION 4.1.3 OF THE EXISTING AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND ST. MARGARET OF SCOTLAND EPISCOPAL SCHOOL PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65864 ET SEQ. AND FINDING THAT SAID ACTION IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER CEQA GUIDELINES SECTION 15301, EXISTING FACILITIES (CLASS 1) (APPLICANT: ST. MARGARET OF SCOTLAND EPISCOPAL SCHOOL) This document was posted in the Office of the City Clerk ________________________________ CHRISTY JAKL, CITY CLERK San Juan Capistrano, California STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss AFFIDAVIT OF POSTING CITY OF SAN JUAN CAPISTRANO ) I, CHRISTY JAKL, declare as follows: That I am the duly appointed and qualified City Clerk of the City of San Juan Capistrano; that in compliance with State laws, Government Code section 36933(1) of the State of California. On the 19th of March 2025, I caused to be posted a certified copy of Ordinance No. 1126, adopted by the City Council on March 18, 2025, entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT AMENDMENT 24-001 TO AMEND SECTION 4.1.3 OF THE EXISTING AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND ST. MARGARET OF SCOTLAND EPISCOPAL SCHOOL PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65864 ET SEQ. AND FINDING THAT SAID ACTION IS CATEGORICALLY EXEMPT FROM THE Ordinance 1126 6 March 18, 2025 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER CEQA GUIDELINES SECTION 15301, EXISTING FACILITIES (CLASS 1) (APPLICANT: ST. MARGARET OF SCOTLAND EPISCOPAL SCHOOL) This document was posted in the Office of the City Clerk ________________________________ CHRISTY JAKL, CITY CLERK San Juan Capistrano, California RECORDING REQUESTED BY: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 WHEN RECORDED, MAIL TO: Christy Jakl, City Clerk City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Exempt from Recording Fees: Government Code §§27383, 6103 City of San Juan Capistrano This Space for Recorder’s Use Only ___________________________________________________________________ First Amendment to the Development Agreement (St. Margaret’s Episcopal School Expansion Project) Between the City of San Juan Capistrano and St. Margaret of Scotland Episcopal School FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT (ST. MARGARET’S EPISCOPAL SCHOOL EXPANSION PROJECT) BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND ST. MARGARET OF SCOTLAND EPISCOPAL SCHOOL This First Amendment to the Development Agreement (St. Margaret’s Episcopal School Expansion Project) (“First Amendment”) is entered into between the City of San Juan Capistrano, a municipal corporation ("City"), and St. Margaret of Scotland Episcopal School , a California non-profit public benefit corporation (“SMES”). City and SMES are referred to collectively within this Amendment as the "Parties." RECITALS A. As of March 2, 2010, the City and SMES entered into a Development Agreement (St. Margaret’s Episcopal School Expansion Project), which was recorded on April 7, 2010, as Document No. 2010000163395 in the Official Records of Orange County (the “Development Agreement”). B. SMES has applied for a General Plan Amendment and Code Amendment to allow for school use on four parcels located at 31726, 31734, and 31736 Rancho Viejo Road (APNs 666-261-04, 666-261-04, 666-261-12 and a Portion of 666-261-14) (“Project Site”). The proposed amendments would allow for an approximately 3.7-acre area, currently designated for commercial use, to be utilized by SMES for school use (the “Project”). C. Pursuant to Section 3.5 of the Development Agreement, the Parties now wish to enter into this First Amendment to account for and mitigate the fiscal impact of the Project to the City. AGREEMENT 1. Incorporation of Recitals. The Parties agree that the above recitals are true and correct and are incorporated herein by reference. 2. Amendment of Section 4.1.3. Section 4.1.3 of the Development Agreement is hereby amended to read in its entirety as follows: “3. As a religious organization, SMES is exempt from paying property taxes on land dedicated to educational and religious uses. SMES does pay property taxes today on the Expansion Parcels, which in the future, upon conversion to school uses, would be subject to the property tax exemption. Also, the CITY would potentially lose sales tax revenue as a result of the Project’s removal of commercial buildings from the Expansion Parcels and development of the Expansion Parcels for non-commercial uses. Notwithstanding the SMES exemption from property taxes by virtue of its status as a religious organization, in exchange for CITY's agreement to enter into and perform its obligations set forth in this Agreement, SMES has agreed that SMES shall make an annual payment to CITY in an amount calculated as set forth in this Section 4.1.3, providing substantial benefits to CITY and its residents: In order to fully mitigate potential impacts of the lost property tax and sales tax revenues associated with the Development Plan and provide financial benefits to CITY and its residents, SMES shall pay to CITY each year an amount calculated as follows for CITY’s General Fund: (1) $25,000 by September 30, 2011 (2) $50,000 by September 30, 2012 (3) $75,000 by September 30, 2013 and by September 30 of every year thereafter (4) The above payments shall be increased by 2% compounded annually beginning October 1, 2013 This is described further in Exhibit “D”. In addition to the annual payments described above and within Exhibit “D”, in order to fully mitigate potential impacts of the lost property tax and sales tax revenues associated with the Project and provide financial benefits to CITY and its residents, SMES shall pay to CITY each year an amount calculated as follows for CITY’s General Fund: (1) $164,461 by September 30, 2025 (2) The above payment shall be increased by 3% compounded annually beginning October 1, 2030” 3. Continuing Effect of Development Agreement. Except as modified by this First Amendment, all other provisions of the Development Agreement remain unchanged and are in full force and effect. From and after the date of this First Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this First Amendment. 4. Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this First Amendment. 5. Severability. If any portion of this First Amendment is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. This First Amendment has been signed as of __________, 2025, the effective date of the ordinance approving this First Amendment. [signatures on following page] “City” “SMES” City of San Juan Capistrano, a municipal corporation By _______________________ Name: Troy Bourne Title: Mayor St. Margaret of Scotland Episcopal School, a California non-profit public benefit corporation By ________________________________ Name _____________________________ Title ______________________________ Attest: ___________________________ Christy Jakl, City Clerk Approve as to Form ___________________________ City Attorney A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) COUNTY OF _____________ ) On ________________, 20___, before me, _______________________, Notary Public, personally appeared _________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name is subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ________________________________ (seal)