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1991-0604_SEASIDE RANCHOS_Owner Participation AgreementDOLLEY [SEASIDE RANCHOS I] OWNER PARTICIPATION AGREEMENT by and between the SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, AGENCY and SEASIDE RANCHOS, a California Corporation PARTICIPANT 0 TABLE OF CONTENTS 41 I. [§100] SUBJECT OF AGREEMENT A. [§101] Purpose of Agreement B. [§102] The Redevelopment Plan C. [§103] The Site D. [§104] Parties to the Agreement 1. [§105] The Agency 2. [§106] The Participant 3. [§107] Relationship of Agency and Participant II. [§200] CONSIDERATION FOR AGREEMENT; AGENCY ASSISTANCE A. [§201] Participant Consideration B. [§202] Agency Assistance C. [§203] Conditions Precedent III. [§300] PARTICIPANT OBLIGATIONS A. [§301] On Site and Off -Site Improvements 1. [§302] Scope of Development 2. [§303] Cost of Development 3. [§304] Construction Schedule 4. [§305] Bodily Injury and Property Damage Insurance; Indemnity 5. [§306] Rights of Access 6. [§307] Maintenance of Participant Improvements B. [§308] Taxes, Assessments, Encumbrances and Liens C. [§309] Certificate of Completion (i) El TABLE OF CONTENTS (continued) 41 IV. [§400] USE OF THE SITE A. [§401] Uses B. [§402] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction C. [§403] Rights of Access V. [§500] DEFAULTS AND REMEDIES A. [§501] Defaults -- General B. [§502] Legal Actions 1. [§503] Institution of Legal Actions 2. [§504] Applicable Law 3. [§505] Acceptance of Service of Process C. [§506] Rights and Remedies Are Cumulative D. [§507] Inaction Not a Waiver of Default VI. [§600] GENERAL PROVISIONS A. [§601] Notices, Demands and Communications Among the Parties B. [§602] Conflicts of Interest C. [§603] Enforced Delay; Extension of Times of Performance D. [§604] Non -liability of Officials and Employees of the Agency • TABLE OF CONTENTS (continued) E. [§605] Heirs, Successors and Assigns F. [§606] Special Signage VII. [§700] ENTIRE AGREEMENT; WAIVERS; AMENDMENTS VIII. [§800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY Attachment No. 1 Attachment No. 2 Attachment No. 3 Attachment No. 4 Attachment No. 5 Attachment No. 6 ATTACHMENTS Site Map Legal Description Scope of Development Schedule of Performance Certificate of Completion Covenants 0 0 OWNER PARTICIPATION AGREEMENT THIS AGREEMENT is entered into by and between the SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY (the "Agency") and SEASIDE RANCHOS, a California corporation (the "Participant"). The Agency and the Participant hereby agree as follows: I. [§100] SUBJECT OF AGREEMENT A. [§101] Purpose of Agreement The purpose of this Agreement is to effectuate the Redevelopment Plan (as hereinafter defined) for the Central Redevelopment Project Area by providing for the development of certain property situated within the Project Area (the "Project Area"). That portion of the Project Area to be developed pursuant to this Agreement (the "Site") is depicted on the "Site Map", which is attached hereto as Attachment No. 1 and incorporated herein by reference. This Agreement is entered into for the purpose of developing and maintaining the Site including the construction of certain public improvements (the "Project") and not for speculation in land holding. Completing the development on the Site pursuant to this Agreement is in the vital and best interest of the City of San Juan Capistrano, California (the "City") and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements under which the Project has been undertaken. Agency represents that the development of the Site as described in Section 103 is consistent with the General Plan of the City, the Redevelopment Plan (hereinafter defined), and all applicable other specific plan and zoning requirements. B. [§102] The Redevelopment Plan The Redevelopment Plan was approved and adopted by the City Council of the City of San Juan Capistrano by Ordinance No. 488 as amended by Ordinance Nos. 504, 547 and 582; said Ordinances and the Redevelopment Plan as so approved (the "Redevelopment Plan") are incorporated herein by reference. C. [§103] The Site The Site is that portion of the Project Area designated on the Site Map (Attachment No. 1) and described in the "Legal Description" which is attached hereto as Attachment No. 2 and is incorporated herein by reference. 0 0 D. [§104] Parties to the Agreement 1. [§105] The Agency The Agency is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California. The principal office and mailing address of the Agency (for purposes of this Agreement) is located at 32400 Paseo Adelanto, San Juan Capistrano, California 92675. "Agency", as used in this Agreement, includes the San Juan Capistrano Community Redevelopment Agency and any assignee of or successor to its rights, powers and responsibilities. 2. [§106] The Participant The Participant is Seaside Ranchos, a California corporation. The principal office and mailing address of the Participant for the purposes of this Agreement is 1442 Irvine Boulevard, Suite 205, Tustin, California 92680. Whenever the term "Participant" is used herein, such term shall include any nominee, assignee or successor in interest as herein provided. The Participant qualifies as an owner participant as that term is used in the Redevelopment Plan and the rules for owner participation promulgated pursuant thereto. 3. [§107] Relationship�of Agency and Participant It is hereby acknowledged that the relationship between the Agency and the Participant is not that of a partnership nor joint venture and that the Agency and the Participant shall not be deemed or construed for any purpose to be the agent of the other. II. [§200] CONSIDERATION FOR AGREEMENT; AGENCY ASSISTANCE A. [§201] Participant Consideration As consideration for the Agency to enter into this Agreement, the Participant agrees to satisfy the Conditions Precedent, to complete the Participant Improvements on or prior to the date specified therefor in the Schedule of Performance (Attachment No. 4), to obtain the Certificate of Completion as specified in Section 309 hereof, and to maintain the Site in conformity with this Agreement. 01/23/91 6592n/2299/46 -2- B. [§202] Agency Assistance In consideration of the undertakings of the Participant, the Agency shall provide the following assistance (the "Agency Assistance"). The costs of Public Improvements as specified in the Scope of Development (Attachment No. 3) shall be borne by the Developer, with the exception of such costs which have previously been paid by the Agency in the Owner Participation Agreement between the Agency and Stroscher Properties and with the further exception of those fees, as specified in paragraph 3(a) and 3(b) of the Public Improvements section of the Scope of Development (Attachment No. 3) required by the City which shall be paid by the Agency. C. [§203) Conditions Precedent Prior to and as conditions to disbursement of the Agency Assistance, the Participant shall satisfy all of the following conditions precedent: (a) the Participant has obtained all approvals and permits necessary from the City or other entity necessary to obtain building permits to construct the Participant Improvements; (b) the Participant has tendered payment to the City of the fees specified in paragraph 3(c) and 3(d) of the "Public Improvements" section of Scope of Development (Attachment No. 3) and shall have recorded the Covenants (Attachment No. 6); (c) there exists no Default, as defined in this Agreement, or event, omission or failure of condition which would constitute a Default after notice or lapse of time, or both. The foregoing conditions lettered (a) to (c), inclusive, shall collectively constitute the "Conditions Precedent". III. [§300] PARTICIPANT OBLIGATIONS A. [§301] On -Site and Off -Site Improvements 1. [§302) Scope of Development The Participant shall, by the respective times established therefor in the Schedule of Performance (Attachment No. 4), complete or cause to be commenced and completed those 01/23/91 6592n/2299/46 -3- 0 0 improvements identified as the "Participant Improvements" in the Scope of Development which is attached hereto as Attachment No. 3 and is incorporated herein by reference. As of the time established in this Agreement for completion of the Participant Improvements, the Participant shall have completed the Participant Improvements in conformity with this Agreement including, without limitation, the Scope of Development (Attachment No. 3). The completion of the development of the Site shall include both public improvements and private improvements on the Site and public improvements off-site as required by the City and/or Agency and associated with the development of the Site (collectively, the "Participant Improvements"). [§303] Cost of Development With the exception of the Agency Assistance and as specified in Section 202, all costs for planning, designing and constructing the Participant Improvements shall be borne exclusively by the Participant. The Participant shall also bear all costs related to discharging the duties of the Participant set forth in this Agreement. 3. [§304] Construction Schedule The Participant shall complete all construction and development of the Participant Improvements within the times established therefor in the Schedule of Performance (Attachment No. 4). 4. [§305) Bodily Injury and Property Damage Insurance; Indemnity The Participant shall defend, indemnify, assume all responsibility for, and hold the Agency, its officers, employees and agents, harmless from all claims or suits for, and damages to, property and injuries to persons, including accidental death, relating to the subject matter of this Agreement (including reasonable attorneys fees and costs), which may be caused by any of the Participant's activities under this Agreement, whether such activities or performance thereof be by the Participant or anyone directly or indirectly employed or contracted with by the Participant and whether such damage shall accrue or be discovered before or after termination of this Agreement. Participant shall not be liable for property damage or bodily injury occasioned by the sole active negligence of the Agency or its designated agents or employees. The Participant shall take out and maintain until the completion of the Participant Improvements as determined by the 01/23/91 6592n/2299/46 -4- Agency pursuant to Section 309 of this Agreement (if an "occurrence" policy is obtained) or (ii) the second anniversary of the completion of the Participant Improvements (if a "claims made" policy is obtained), a comprehensive liability policy in the amount of One Million Dollars ($1,000,000.00) per occurrence combined single limit policy, including contractual liability, as shall protect the Participant, City and Agency from claims for such damages. The maintenance of any such policy by a contractor doing construction work for the Participant shall be accepted for the purpose of establishing compliance with this Section 305 by Participant. The Participant shall furnish a notarized certificate of insurance countersigned by an authorized agent of the insurance carrier on a form approved by the Agency setting forth the general provisions of the insurance coverage. This countersigned certificate shall name the City and the Agency and their respective officers, agents and employees as additionally insured parties under the policy. The certificate by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify the City and the Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by the Participant shall be primary insurance and not contributing with any insurance maintained by the Agency or City, and the policy shall contain such an endorsement. The insurance policy or the certificate of insurance shall contain a waiver of subrogation for the benefit of the City and the Agency. The required certificate shall be furnished by the Participant at the time set forth therefor in the Schedule of Performance (Attachment No. 4). The Participant shall also furnish or cause to be furnished to the Agency, upon written request from Agency, evidence satisfactory to the Agency that any contractor with whom it has contracted for the performance of work on the Site or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. 5. [§306] Rights of Access For the purpose of assuring compliance with this Agreement, representatives of the Agency and the City shall have the right of access to the Site without charges or fees after written reasonable notice to Participant, at normal construction hours during the period of construction for the purposes of this Agreement including, but not limited to, the inspection of the work being performed in constructing the improvements, so long as they comply with all safety rules. Such representatives of the Agency or of the City shall be those who are so identified in writing by the Executive Director of the Agency. Agency shall indemnify and hold 01/23/91 6592n/2299/46 -5- 0 0 Participant harmless from any cost, claims, damages or liabilities pertaining to any such entry. 6. [§3071 Maintenance of Participant Improvements The Participant shall maintain the Site and all improvements thereon, including the Participant Improvements, in compliance with the terms of the Redevelopment Plan and with all applicable provisions of the City of San Juan Capistrano Municipal Code until the expiration date of the Redevelopment Plan. B. [§308) Taxes, Assessments, Encumbrances and Liens The Participant shall pay when due all real estate taxes and assessments on the Site. C. [§309] Certificate of Completion Promptly after completion of the Participant Improvements, the Agency shall furnish the Participant with a recordable Certificate of Completion upon written request therefor by the Participant. The Agency shall not unreasonably withhold such Certificate of Completion. The Certificate of Completion shall be substantially in the form of Attachment No. 5. The Executive Director may execute the Certificate of Completion (Attachment No. 5) on behalf of the Agency. Such Certificate of Completion shall be a conclusive determination of satisfactory completion of the Participant Improvements and the Certificate of Completion shall so state. After recordation of such Certificate of Completion, any party then owning or thereafter purchasing, leasing or otherwise acquiring any interest therein shall not (because of such ownership, purchase, lease or acquisition), incur any obligation or liability under this Agreement except as provided in Sections 305, 401 and 601 of this Agreement. A Certificate of Completion shall be in such form as to permit it to be recorded in the Recorder's Office of Orange County. If the Agency refuses or fails to furnish a Certificate of Completion, after written request from the Participant, the Agency shall, within thirty (30) days of written request therefor, provide the Participant with a written statement of the reasons the Agency refused or failed to furnish a Certificate of Completion. The statement shall also contain the Agency's opinion of the actions the Participant must take to obtain a Certificate of Completion. If the Agency shall have failed to provide such written statement within said thirty (30) day period, the Participant shall be deemed entitled to the Certificate of Completion. 01/23/91 6592n/2299/46 -6- Such Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of the Participant to any holder of any mortgage, or any insurer of a mortgage securing money loaned to finance the improvements, or any part thereof. Such Certificate of Completion is not a notice of completion as referred to in the California Civil Code, Section 3093. IV. [§400) USE OF THE SITE A. [§401] Uses The Participant covenants and agrees for itself, its successors, its assigns, and every successor in interest to the Site or any part thereof, that during construction and thereafter, the Participant, such successors and such assignees, shall devote the Site to the uses specified in the Redevelopment Plan and this Agreement for the periods of time specified therein. All uses conducted on the Site including, without limitation, the display of signs, all activities undertaken by the Participant pursuant to this Agreement shall conform to the Redevelopment Plan and all applicable provisions of the Municipal Code of the City of San Juan Capistrano (the "Municipal Code"). The foregoing covenants shall run with the land. The Participant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, nor shall the Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Site. The foregoing covenants shall run with the land. The Participant shall refrain from restricting the rental, sale or lease of the property on the basis of race, color, creed, religion, sex, marital status, handicap, national origin or ancestry of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or non -segregation clauses: 1. In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of 01/23/91 6592n/2299/46 -7- race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." 2. In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, handicap, age, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased." 3. In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the premises." The covenants established in this Agreement and the deeds shall, without regard to technical classification and designation, be binding for the benefit and in favor of the Agency, its successors and assigns, the City and any successor in interest to the Site, together with any property acquired by the Participant pursuant to this Agreement, or any part thereof. The covenants, contained in this Agreement and the deeds shall remain in effect until the termination date of the Redevelopment Plan. The covenants against racial discrimination shall remain in perpetuity. The above covenants shall be recorded by Participant on the Property in the form of Attachment No. 6 "Covenants". 01/23/91 6592n/2299/46 -8- B. [§402) Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction The Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. The Agreement and the covenants shall run in favor of the Agency, without regard to whether the Agency has been, remains or is an owner of any land or interest therein in the Site or in the Project Area. The Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. After issuance of a Certificate of Completion for all grading and improvements to be completed by the Participant pursuant to this Agreement, all of the terms, covenants, agreements and conditions set forth in this Agreement relating to the Site shall cease and terminate as to that portion of the Site for which the Certificate of Completion is issued, excepting only the provisions listed below which shall survive as follows: (a) Section 401 relating to Uses and Access. (b) Section 305 (relating to indemnification and insurance) shall remain in effect in accordance with the terms and conditions set forth therein. (c) Sections 500 to 507 (relating to rights and remedies) shall remain in effect to the extent necessary to enforce other provisions of this Agreement. C. [§403) Rights of Access The Agency, for itself and for the City and other public agencies, at their sole risk and expense, reserves the right to enter the site or any part thereof which is owned or controlled by the Participant, at all reasonable times for the purpose of construction, reconstruction, maintenance, repair or service of any public improvements or public facilities located on the Site. Any such entry shall be made only after reasonable written notice to Participant, and Agency shall indemnify and hold Participant harmless from any costs, claims, damages or liabilities pertaining to any entry. This Section 01/23/91 6592n/2299/46 -9- 0 0 403 shall not be deemed to diminish any rights the Agency, the City or any other public agencies may have without reference to this Section 403. V. [§500] DEFAULTS AND REMEDIES A. [§501] Default The following shall constitute a "Default" under this Agreement: (a) Construction (1) Any material deviation in the work of construction from the approved plans and drawings or the appearance or use of defective workmanship or materials in constructing the Participant Improvements, and Participant's failure to commence to remedy the same to Agency's satisfaction within thirty (30) days of Agency's written demand to do so and diligently prosecute same to completion; or (2) the cessation of construction of the Participant Improvements prior to completion for a continuous period of more than thirty (30) days (except as caused by event for which delay may be permitted under Section 603); or (3) the prohibition, enjoining or delaying (in any manner) of the construction of any of the Participant Improvements for a continuous period of more than thirty (30) days; or (4) the failure to complete the Participant Improvements by the time established therefor in the Schedule of Performance (Attachment No. 4); or (b) Liens The filing of any claim of lien against the Property or the service on the Agency or the City of any bonded stop notice relating to the Participant Improvements on the Property and the continuance of the claim of lien or bonded stop notice for twenty (20) days without discharge, satisfaction or provision for payment; or (c) Performance of Obligations Failure by either party to perform its respective obligations under this Agreement, unless such breach is cured within a reasonable period of time not to exceed thirty (30) days after notice by the non -breaching party; or 01/23/91 6592n/2299/46 -10- 0 F B. [§502] Legal Actions 1. [§503] Institution of Legal Actions In addition to any other rights or remedies and subject to any restrictions herein, either party may institute legal action to seek specific performance of the terms of this Agreement, or to cure, correct or remedy any Default, to recover damages for any Default, or to obtain any other remedy consistent with the purpose of this Agreement. Such legal actions must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California. The party prevailing in any such action shall be entitled to recover against the party not prevailing all reasonable attorneys' fees and costs incurred as part of its judgment. 2. [§504] Applicable Law The laws of the State of California shall govern the interpretation and enforcement of this Agreement. 3. [§505] Acceptance of Service of Process In the event that any legal action is commenced by the Participant against the Agency, service of process on the Agency shall be made by personal service upon the Executive Director or in such other manner as may be provided by law. In the event that any legal action is commenced by the Agency against the Participant, service of process on the Participant shall be made by personal service upon the president of the Participant or in such other manner as may be provided by law. Service shall be valid whether made within or without the State of California. C. [§506] Rights and Remedies Are Cumulative Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. D. [§507] Inaction Not a Waiver of Default Any failures or delays by either party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies, or deprive either such party of its right to 01/23/91 6592n/2299/46 -11- 0 0 institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. VI. [§600] GENERAL PROVISIONS A. [§601] Notices, Demands and Communications Between Written notices, demands and communications between the Agency and the Participant shall be sufficiently given if delivered by hand or dispatched by registered or certified mail, postage prepaid, return receipt requested, to the principal offices of the Agency and the Participant at the addresses specified in Sections 105 and 106, respectively. Such written notices, demands and communications may be sent in the same manner to such other addresses as either party may from time to time designate by mail as provided in this Section 601. Any written notice, demand or communication shall be deemed received immediately if delivered by hand and shall be deemed received on the tenth day from the date it is postmarked if delivered by registered or certified mail. B. [§602] Conflicts of Interest No member, official or employee of the Agency shall have any personal interest, direct or indirect, in this Agreement, nor shall any member, official or employee participate in any decision relating to the Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. C. [§603] Enforced Delay; Extension of Times of Performance In addition to specific provisions of this Agreement, performance by either party hereunder shall not be deemed to be in Default, and all performance and other dates specified in this Agreement shall be extended, where delays or Defaults are due to: war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; lack of transportation; governmental restrictions or priority; litigation; unusually severe weather; inability to secure necessary labor, materials or tools; delays of any contractor, subcontractor or supplier; acts or omissions of the other party; acts or failures to act of the City of San Juan Capistrano or any other public or governmental agency or entity (other than the acts or failures to act of the Agency which 01/23/91 6592n/2299/46 -12- 0 0 shall not excuse performance by the Agency); or any other causes beyond the control or without the fault of the party claiming an extension of time to perform. Notwithstanding anything to the contrary in this Agreement, an extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the mutual agreement of Agency and Participant. Notwithstanding the foregoing portion of this Section 603, the Participant is not entitled pursuant to this Section 603 to an extension of time to perform because of past, present or future difficulty in obtaining suitable temporary or permanent financing for the development of the Site. D. [§604] Non -liability of Officials and Employees of the Agency No member, official or employee of the Agency or the City shall be personally liable to the Participant, or any successor in interest, in the event of any Default or breach by the Agency (or the City) or for any amount which may become due to the Participant or its successors, or on any obligations under the terms of this Agreement. E. [§605] Heirs, Successors and Assigns The terms of this Agreement shall be binding upon and inure to the benefit of the heirs, successors and assigns of the parties. E. [§606] Special Signage If provided by the Agency, the Participant shall place on the Site and maintain thereon for a reasonable time (of approximately thirty (30) days) one sign setting forth the participation of the Agency in assisting with the provision of the Participant Improvements pursuant to this Agreement. VII. [§700] ENTIRE AGREEMENT; WAIVERS; AMENDMENTS This Agreement is executed in three (3) duplicate originals, each of which is deemed to be an original. This Agreement includes pages 1 through 14 and Attachments 1 through 6, which constitute the entire understanding and agreement of the parties. 01/23/91 6592n/2299/46 -13- • This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. All waivers of the provisions of this Agreement must be in writing by the appropriate authorities of the Agency and the Participant, and all amendments hereto must be in writing by the appropriate authorities of the Agency and the Participant. In any circumstance where under this Agreement either party is required to approve or disapprove any matter, approval shall not be unreasonably withheld. VIII. [§800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY This Agreement, when executed by the Participant and delivered to the Agency, must be authorized, executed and delivered by the Agency on or before forty-five (45) days after signing and delivery of this Agreement by Participant or this Agreement shall be void, except to the extent that the Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. The date of this Agreement shall be the date when it shall have been signed by the Agency. 01/23/91 6592n/2299/46 -14- 0 0 IN WITNESS WHEREOF, the Agency and the Participant have signed this Agreement on the respective dates set forth below. June 4 1991 SAN JUAN CAPISTRANO COMMUNITY REDEVELOPM AGENCY, a public body, cor ate and i is By: Lawrence F. uchheim, Chairman GGATTES//T: �YtOw i i ek44-_ "AGENCY" A ency CJ&Ier APPROVED AS TO FORM: Stradling, Yocca, Car son & Rauth, Agency Counsel SEASIDE RANCHOS, a California corporation By: I s: "PARTICIPANT" 01/23/91 6592n/2299/46 -15- m 0 0 F+ fi :t5 j�lYfY 3 ATTACHMENT NO. 2 LEGAL DESCRIPTION SEASIDE RANCHOS I That certain real property located in the City of San Juan Capistrano, Countp of Orange. Stale of California, more particularly described as: PARCEL 1 That portion of Lot 31 of Tract No. 103, as per a map recorded in Book 11. Page 29 and 33 of :Miscellaneous Maps, in the office of the County Recorder of said County described as follows. Beginning at the northerly comer of Lot 33 of said Tract 103; thence south 47° 15' 00" east 105.00 feet along the northeasterly line of said Lot 33 to the t",e point of begin, in6; t11,:1— contLi, nig aiu„g saiu nortneasterV line south 470 15'00" east 608.81 feet: thence north 40' 26 east 127.90 fee to the southwesterly line of the southeasterly prolongation thereof, of the land described in the deed to Paul N. Yorba and Bertha Yorba, his wife, being the second parties therein. recorded May 13, 1946 in Book 1406, Page 574 of Official Records; thence along said southwesterly line and the southeasterly prolongation thereof, north 300 59' 40" west 233.9.5 feet to the true point of beginning. PARCEL 2 That portion of Lot 31 of Tract No. 103, as per map recorded in Book 11, Pages 29 to 33, inclusive of Miscellaneous Maps, in the office of the County Recorder of said County. d�scribrd as follows: Beginning at a point which bears south 470 15' east 233.97 feet and north 0' 59'30'* east 310.10 feet from the most northerly corner of Lot 33 of said Tract No. 103: thence south 38" 10' 20" eats 695.45 feet along the northeasterly line of said Treff land; thence north 400 26' east 126.00 feet to an angle point on the northerly line of said Lot 31; thence along said northerly line north 36' 55'30" west 844.96 feet: thence south 00 59'30" west 225.00 feet to the point of beguining. PARCEL 3 That portion of Lot 31 of Tract No. 103, as per map thereof recorded in Book 11, Pages 29 to 33 of Miscellaneous Maps, in the office of the County Recorder of said County, described as follows: Beginning at the southwest comer of the land described in deed to Reproco, Inc. , recorded April 12. 1968 in Book 8570, Page 886 of Official Records of said County. being a point in the easterly - line of the right of way of the State of California shown as Camino Capistrano on a map filed in Book 12. Page 45 of Parcel Maps, records of said Orange county; thence along said easterly line, south 00 59'30" west 65.00 feet to the true point of beginning; thence continuing along said easterly line south 01 59" 30" west 50.90 feet to the most northerly corner of Lot 33 of said Tract No. 103; thence along the northeasterly line thereof, south 470 15' 00" east 105.00 feet; thence north 33' 001 55" east 142.51 feet along the northwesterly line of the land described in deed to Herman C. Treff and Wife, recorded February 19, 1959 in Book 4592, Page 99 of the Official Records through the true point of beginning; thence along said last mentioned line, north 89` 00'30" west 153.89 feet to the true point of beginning, Those portions of Lot 31 of Tract No. 103 as shown on a map recorded lrr Book 11, Pages 29 to 33 inclusi-e, of Miscellaneous Maps, records of said Orange County. ATTACHMENT NO. 3 SCOPE OF DEVELOPMENT SEASIDE RANCHOS I The development of this site is deemed to be in conjunction with the development of the adjoining 22,500 square foot site, approved by the City of San Juan Capistrano as AC 89-09. also to be developed by Seaside Ranchos. While it is recognized that this development and the adjoining AC 89-09, are to be developed it; conjunction with each other, the development of this site is not contingent upoii ',ire development of the adjoining site. PARTICIPANT IMPROVEMENTS Private Improvements 1. Full development of the 5.29 acre site approved as AC 88-09 2. Improvements as approved by the City of San Juan Capistrano under AC 88-09, including, but not limited to: a. Approximately 55.441 square feet of leasable restaurant/ retail space as approved by the City of San Juan Capistrano under AC 88-09. b. Joint on-site circulation with the adjoining shopping center developed by Stroscher Properties, approved by the City of San Juan Capistrano as AC -05 and the shopping center jointly developed by Paseo Capistrano Limited Partnership and Deering Investment Company, approved by the City of San Juan Capistrano as AC 88-08. C. Joint parking with the adjoining shopping centers approved as AC 86-05 and AC 88-08 d. Landscaping as approved by the City of San Juan Capistrano under AC 88-09. e. An historic depiction program as required in City Council Policy No. 606, and designed by the SanJuan Capistrano Redevelopment Agency. M. . - r} TOM - 1. Design and construction of improvements on Avenida Golondrina, and at the Camino Capistrano/Avenida Golondrina intersection to provide a double southbound left turn pocket for the entrance or. to Avenida Golondrina. 2. Design and construction of a traffic signal at the intersection of Camino Capistrano/Avenida Golondrina with traffic signal interconnect to the Camino Capistrano/Del Obispo Street signal. bi r _ -— '.- t No. 3 • • rinancial participation in the following improvements based upon the levelopment's pro -rate share of generated traffic impacts: t• Ortega Highway widening from Del Obispo Street to Interstate 5. �. Traffic Signals at Avenida Padre/Camino Capistrano, Del Obispo Street/Forster Lane. and Del Obispo Street/Plaza Street. Del Obispo widening at Trabucco Creek. Del Obispo Street pedestrian bridge at TYabucco Creek. ' � S ATTACHMENT NO. 4 SCHEDULE OF PERFORMANCE Seaside Ranchos I Nothing within this schedule shall prevent The Participant from completing any or all actions earlier than provided for in this Schedule of Performance. Approval of Owner Participation Agreement Completion of public and private improvements required under city of San Juan Capistrano AC 88-09, including the Historic Depiction Program Issuance of Certificate of Completion Upon approval by the Board of Directors of the San Juan Capistrano Redevelopment AGency and the city Council of the San Juan Capistrano Redevelopment Agency 180 days after approval o f t h e O w n e r Participation Agreement Upon written notice to Agency by the Participant pursuant to Section 309 San Juan Capistrano Community Redevelopment Agency May 18, 1995 Mr. Robert Dolley Seaside Ranchos 1442 Irvine Boulevard, Suite 205 Tustin, California 92680 Re: Request for Waiver of Condition Dear Mr. Dolley: At their meeting of May 16,1995, the San Juan Capistrano Community Redevelopment Agency Board of Directors considered your request to waive the condition in the Owner Participation Agreement for Seaside Ranchos relating to financial participation in the Del Obispo Street widening at Trabuco Creek and the Del Obispo Street pedestrian bridge across Trabuco Creek. Following their consideration, the Board of Directors took action to approve your request. Please do not hesitate to call if you need any further information. Very truly yours, Cheryl Johns n Agency Secretary cc: Director of Engineering and Building 32400 Paseo Adelanto San Juan Capistrano California 92675 714 - 493-1171 0 0 AGENDA ITEM May 16, 1995 TO: George Scarborough, Executive Director FROM: William M. Huber, Director of Engineering & Building SUBJECT: Denial of Request for Relief from Condition 3(c) of Owner Participation Agreement for Seaside Ranchos/Del Obispo Widening at Trabuco Creek (Dolley) RECOMMENDATION It is recommended that the Community Redevelopment Agency deny the request by Mr. Bob Dolley for relief of Condition 3(c) of the Owner Participation Agreement for Seaside Ranchos/Del Obispo Widening at Trabuco Creek. SITUATION A. Summary and Recommendation Mr. Bob Dolley, developer of Seaside Ranchos, is requesting waiver of a condition providing for his pro rata share ($19,430) of widening Del Obispo Street at Trabuco Creek. His basis for the request is that the Home Furnishings Center was required to participate, but the fee was waived, and two other developments (Marshall's/Wherehouse and Franciscan Plaza) were not even conditioned to participate. Staff is not supportive of the request. B. Background Conditions 3(c) and (d) of Public Improvements, as listed in the Owner Participation Agreement (OPA) for Seaside Ranchos (Dolley), required financial participation in the Del Obispo Widening at Trabuco Creek and Del Obispo Pedestrian Bridge across Trabuco Creek based on the development's pro rata share (Attachment 1). Staff determined, per memorandum (Attachment 2), that Seaside Ranchos' proportionate shares were $112,962 for Del Obispo Widening and $0 for the Pedestrian Bridge. Widening of Del Obispo at Trabuco Creek is an expensive project (estimated at $1,686,000 in 199 1) and is not budgeted in the City's Seven -Year Capital Improvement Program. By law (AB -1600), a project must be budgeted in a five-year horizon for a City to be able to request developer reimbursement. In view of requirement by law, Mr. Bob Dolley has questioned the reasonableness of the condition, therefore, Staff has reviewed its applicability. It was believed that, while the full widening project may not be achievable within the five-year requirement, the project to provide a pedestrian bridge was achievable within the five years and would FOR CITY COUNCIL AGEN2)A— AGENDA ITEM -2- May 16 1995 provide opportunities to improve traffic flow on Del Obispo Street. The pedestrian bridge is proposed to be built south of the existing traffic bridge and would remove the existing pedestrian walk on the traffic bridge. This would free up approximately five feet of additional pavement width which could allow for traffic flow improvements when combined with some widening to the north. It was, therefore, determined that Seaside Ranchos' proportionate share for the Del Obispo Widening should be based on the costs for the Pedestrian Bridge Project. Thus, their share was lowered to $19,430. Mr. Dolley further researched similar developments in the vicinity and has determined that only his project was required to pay a share of the bridge project. On this basis, he is also requesting relief from the condition. The similar projects researched are Deering/Johnson/Yu (the Home Furnishings center), Stroescher (Wherehouse/Marshall's) and Farber (Franciscan Plaza). The results are as follows, relative to the bridge widening: *DeeringJJohnson/Yu - Conditioned to pay its share of the bridge ($55,638) per the OPA. Fees waived administratively in January, 1989. No official record of fee waiver available. * tro her -Not conditioned to participate in bridge widening. *Farber - Not conditioned to participate in bridge widening. While Staff understands Mr. Dolley's position, it is not supportive of the request. Although, from an equity standpoint, it would seem fair to not burden him more than the other developments, he did, however, enter into an agreement under good faith with the Agency in which he was fully aware of the requirements. Each of the referenced agreements are unique and provide specific conditions negotiated between each party. Mr. Dolley should be required to meet his obligation as provided in the agreement's terms, therefore, Staff does not recommend a waiver. COMMISSION/BOARD REVIEW AND RECOMMENDATIONS None FINANCIAL CONSIDERATIONS The fees would be put into a trust account for the future project. There is no impact to the Agency or City General Fund. PUBLIC NOTIFICATION Mr. Bob Dolley 0 E AGENDAITEM -3- May 16 1995 ALTERNATE ACTIONS Approve as recommended. 2. Do not approve. Return to staff for further information. RECOMMENDATION It is recommended that the Community Redevelopment Agency deny the request by Mr. Bob Dolley for relief of Condition 3(c) of the Owner Participation Agreement for Seaside Ranchos/Del Obispo Widening at Trabuco Creek. Respectfully submitted, William M. Huber Director of Engineering & Building PAN TO I M 01 Attachments: 1. Owner Participation Agreement (Dolley/Seaside Ranchos I) 2. City Engineer's Memorandum • DOLLEY [SEASIDE RANCHOS I] OWNER PARTICIPATION AGREEMENT by and between the SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, AGENCY and SEASIDE RANCHOS, a California Corporation I� PARTICIPANT �f 0 • B. [§202] Agency Assistance In consideration of the undertakings of the Participant, the Agency shall provide the following assistance (the "Agency Assistance"). The costs of Public Improvements as specified in the Scope of Development (Attachment No. 3) shall be borne by the Developer, with the exception of such costs which have previously been paid by the Agency in the Owner Participation Agreement between the Agency and Stroscher Properties and with the further exception of those fees, as specified in paragraph 3(a) and 3(b) of the Public Improvements section of the Scope of Development (Attachment No. 3) required by the City which shall be paid by the Agency. C. [§203) Conditions Precedent Prior to and as conditions to disbursement of the Agency Assistance, the Participant shall satisfy all of the following conditions precedent: (a) the Participant has obtained all approvals and permits necessary from the City or other entity necessary to obtain building permits to construct the Participant Improvements; (b) the Participant has tendered payment to the City of the fees specified in paragraph 3(c) and 3(d) of the "Public Improvements" section of Scope of Development (Attachment No. 3) and shall have recorded the Covenants (Attachment No. 6); (c) there exists no Default, as defined in this Agreement, or event, omission or failure of condition which would constitute a Default after notice or lapse of time, or both. The foregoing conditions lettered (a) to (c), inclusive, shall collectively constitute the "Conditions Precedent". III. [§300] PARTICIPANT OBLIGATIONS A. [001) On -Site and Off -Site Improvements 1. [§302) Scope of Development The Participant shall, by the respective times established therefor in the Schedule of Performance (Attachment No. 4), complete or cause to be commenced and completed those 01/23/91 6592n/2299/46 -3- ATTACHMENT NO. 3 SCOPE OF DEVELOPMENT SEASIDE RANCHOS I The development of this site is deemed to be in conjunction with the development of the adjoining 22.500 square foot site, approved by the City of San Juan Capistrano as AC 89-09. also to be developed by Seaside Ranchos. While it is recognized that this development and the adjoining AC 89-09, are to be deveioped ir, conjunction with each other, the development of this site is not contingent upon :he development of the adjoining site. PARTICIPANT IMPROVEMENTS Private Improvements 1. Full development of the 5.29 acre site approved as AC 88-09 2. Improvements as approved by the City of San Juan Capistrano under AC 88-09, including, but not limited to: J JIM -071M a. Approximately 55.441 square feet of leasable restaurant/ retail space as approved by the City of SanJuan Capistrano under AC 88-09. b. Joint on-site circulation with the adjoining shopping center deveioped b_; Stroscher Properties, approved by the City of San Juan Capistrano as AC -05 and the shopping center jointly developed by Paseo Capistrano Limited Partnership and Deering Investment Company, approved by the City of San Juan Capistrano as AC 88-08. C. Joint parking with the adjoining shopping centers approved as AC 86-05 and AC 88-08 d. Landscaping as approved by the City of San Juan Capistrano under AC 88-09. e. An historic depiction program as required in City Council Policy No. 606, and designed by the San Juan Capistrano Redevelopment Agency. 1. Design and construction of Improvements on Avenida Golondrina, and at the Camino Capistrano/Avenida Golondrtna intersection to provide a double southbound left turn pocket for the entrance on to Avenida Golondrina. 2. Design and construction of a traffic signal at the intersection of Camino Capistrano/Avenida Golondrina with traffic signal interconnect to the Carnino Capistrano/Del Obispo Street signal. 0 Attachment No. 3 • Page 2 0 3. Financial participation in the following improvements based upon the development's pro -rate share of generated traffic Impacts: a. Ortega Highway widening from Del Obispo Street to Interstate 5. b. Traffic Signals at Avenida Padre/Camino Capistrano. Del Obispo Street/Forster Lane. and Del Obispo Street/plaza Street. C. Del Obispo widening at Trabucco Creek. d. Del Obispo Street pedestrian bridge at Trabucco Creek. FA • s TO: William M. Huber, Director of Engineerin do Building FROM: Theodore G. Simon, City Engineer SUBJECT: Off -Site Participation for AC 88-9 and Cy..E9-Dolley/Seaside Ranchos), Del Obispo Street/Camino Capistrahtl--,�-L3'`-` In accordance with Resolution No.'s 89-1-10-2 and 90-2-13-1, which were approved by the Planning Commission, conditions require participation in public improvements. This participation is to be based on trip generation as determined by the City Engineer. It is noted that the subject projects are the Dolley portion of Area A and the traffic study generated the traffic for the whole Dolley portion. The following data and calculations are offered for review: 1. Development's Generated Traffic from the Traffic Impact Study Plaza Del Obispo (AC 86-5) dated May 27, 1987, prepared by Donald Frischer and Associates: a. Ortega Highway - Del Obispo Street to 1-5 1,286 ADT b- Del Obispo Street at Trabuco Creek 1,348 c. Camino Capistrano at Avenida Golondrina 1,715 • d. Avenida Golondrina 1,715 e. Avenida Padre 0 f. Plaza Street (Paseo Mercado de Capistrano) 2,635 g. Del Obispo Street at Plaza Street 2,635 - h. Forster Lane 0 L Camino Capistrano at Avenida Padre 638 j. Del Obispo Street at Forster Lane 1,715 *Total ADT generated = 4,350 2. Ultimate Traffic Capacity from Master Plan of Streets and Highways: a. Ortega Highway 20,000 ADT b. Del Obispo Street 20,000 c. Camino Capistrano 30,000 d. Avenida Padre 5,000 e. Plaza Street (Paseo Mercado de Capistrano) 5,000 f. Forster Lara 5,000 3. Cost estimates to improve the following from existing condition to ultimate, including design, construction and overhead: a. Del Obispo Street widening at Trabuco Creek $1,686,000 b. Traffic signal at Camino Capistrano/Avenida Padre 120,000 c. Traffic signal at Del Obispo Street/Forster Lane 120,000 d. Traffic signal at Del Obispo Street/Plaza Street - Paseo Mercado de Capistrano; actual cost 83,102 e. Ortega Highway widening from Del Obispo Street to 1-5 272,000 4'99i �i 4. Participations a. Method Percent Participation = Financial Participation = b. Calculation 0 Development's Generated Traffic Ultimate Traffic Capacity Percent Part. x Cost Estimate to improve facility from existing condition to ultimate (1) Del Obispo Street widening at Trabuco Creek: (1,348/20,000) x 100 6.7% (2) Traffic signal - Camino Capistrano/Avenida Padre: (0/5,000) + (638/30,000)/2 x 100 1.1% (3) Traffic signal - Del Obispo Street/Forster Lane: (0/5,000) + (1,715/20,000)/2 x 100 4.3% (4) Traffic signal - Del Obispo Street/Plaza Street - Paseo Mercado de Capistrano: (2,635/5,000) + (2,635/20,000)/2 x 100 32.9% (5) Ortega Highway widening from Del Obispo Street to 1-5: (1,286/20,000) x 100 = 6.4% Thus, the participation required is as follows: (1) Del Obispo Street widening at Trabuco Creek: 6.7% x $1,686,000 $112,962 (Z Traffic signal - Camino Capistrano/Avenida Padre: F 1.1% x 120,000 1,320 Traffic signal - Del Obispo Street/Forster Lane: �p 4.3% x 120,000 5,160 Traffic signal - Del Obispo Street/Plaza Street Paseo Mercado de Capistrano: 32.9% x 83,102 27,340 ._ .. 33 Ortega Highway widening from Del Obispo Street to I-5: 6.4% x 272,000 = 17,408 (6) Del Obispo Street Pedestrian Bridge at Trabuco Creek; pedestrian traffic generated at this location: 0 Total Participation for off-site improvements: $164,190 TG S:ssg cc: Dick Bobertz v Ray Vincenti L May 15 , 1995 TO: George Scarborough, City Manager n FROM: Cassandra Walker, Community Development Administrator U✓" SUBJECT: Summary of Financial Arrangements Between Seaside Ranchos (Robert Dolley) and the San Juan Capistrano Community Redevelopment Agency Seaside Ranchos is part of the overall development know as Plaza Del Obispo or Area A. In the mid 1980's the Redevelopment Agency worked with four separate property owners to facilitate the joint planning and development of this property into three separate, but uniform centers which have the appearance of one large center: Marshall's - Stroscher Properties Payless - Seaside Ranchos (Robert Dolley) Home Furnishing Center - (Johnson/Yu) The Agency contributed $100,000 to the joint planning and infrastructure that benefited the Area A development. Each property owner entered into a Memorandum of Understanding to share in the costs of the common improvements. In addition to the $100,000 the Agency also paid other developer fees through Owner Participation Agreements to facilitate the development of each of the smaller portions of the Center. The Redevelopment Agency entered into two (2) separate OPA's with Seaside Ranchos. The City entered into a Reimbursement Agreement with Seaside Ranchos for improvement of the Los Golondrinas signal and intersection. The Payless portion of the Center was developed in two phases. The first phase included 55,441 square feet. The second phase included the purchase and incorporation of the 7-11 gas station site into the overall development with 11,610 additional square feet. The terms of these agreements are as follows: Seaside Ranchos I - $51.250 The Agency paid the City developer fees relating to traffic signal improvements at three locations and the Ortega Highway street widening improvements for both phases of the project. The fees totalled approximately 8$1;250. It was the intent for the Agency to owe the City these fees until sufficient tax increment was generated by the project to pay them. Seaside Ranchos H - $150,000 The Agency requested Seaside Ranchos to incorporate the comer 7-I1 gas station site into the development. In order to make this financially feasible the Agency contributed $150,000 toward the purchase of the site. MAY 15 MS 0 0 Reimbursement Aereement - $21,975 Under the conditions of approval for this project the developer was required to put in the signal and intersection at Camino Capistrano and Los Golondrinas. The City entered into a Reimbursement Agreement with Seaside Ranchos for $164,000 to facilitate the reimbursement of signal costs from future development. The Agency will pay on behalf of the Johnson/Yu, their portion of the signal improvements ($9,975) to Seaside Ranchos as part of the OPA with Johnson/Yu. Stroscher Properties has already paid $12,000 to the City as his portion of this fee. These monies should be forwarded to Seaside Ranchos. Outstanding Trabuco Creek/Pedestrian Bridge Fee As a condtion of approval for this project Seaside Ranchos was required to pay their pro rata share for the Del Obispo widening at Trabuco Creek and the construction of a pedestrain bridge in this location. This fee, currently $19,430, was not collected at the time of development and remains outstanding. Similar fees for the other Area A developments were either paid by the Agency or waived. TO: FROM: SUBJECT: c George Scarborough, City Manager Bill Huber, Director of Engineering & Building -i Dolley/Seaside Ranchos Bridge Fee Condition i 12"'(,7 as L CA,461 June 21, 1994 The City Engineer and I reviewed the bridge condition put on Dolley and, at this time, do not feel it can be justified. The original condition was put on Dolley with the intent that the bridge would some day be widened to permit an additional left -turn lane to improve traffic flow. However, no project has appeared in the seven-year CIP to fund the project. Additionally, the original cost estimate used was one to completely rebuild the bridge to accommodate additional channel capacity on Trabuco Creek. The only projects currently contemplated in the CIP are for sidewalk improvements and a pedestrian bridge, but it is my understanding that neither project will improve the traffic capacity. It was originally believed that the pedestrian bridge would permit use of the existing south pedestrian walkway for improved traffic handling, but this simply cannot be done as it would be too much of an offset in the street to accommodate the traffic movements. The bridge needs to be widened to the north. Therefore, with no identified project in the CIP and the proposed project not providing for traffic improvements, there is no nexus to the project, and it is recommended we not pursue the condition on Dolley. FIITU�m�i l 11 0 July 11, 1994 TO: George Scarborough, City Manager FROM: Bill Huber, Director of Engineering & Building SUBJECT: Del Obispo/Trabuco Creek Bridge - Dolley (AC 88-9 & 89-9) Cass and I met on July 6 to arrive at an acceptable solution to the requirement for Dolley's participation in the Del Obispo widening at Trabuco Creek. I have also met with the City Engineer to discuss the issue and understand some of the background. City Council Resolution No. 89-9-12-2, Condition 5d., required Dolley to "... financially participate ... based on the developments pro rata share of generated traffic ...." for the Del Obispo widening at Trabuco Creek. The language is significant for two reasons: 1) It was nonspecific as to an amount to be paid; this was to be determined by staff and 2) It refers to street widening of Del Obispo but not necessarily a bridge widening (see attached). The bridge project has not been in the CIP for the past three to four years as funding is just not available. It is, therefore, not appropriate since it is not in the five- to seven-year horizon to require developer participation. We also do not have a clear understanding, nor figures, for which portion of costs are widening and which are channel -flow improvements. However, it appears that a project was developed and placed in our CIP to install a pedestrian bridge to provide traffic relief on Del Obispo. A case can be made that the pedestrian bridge will provide additional street width for traffic capacity and, therefore, should be considered as the project to satisfy the imposed condition. There may be some practical limitations with the bridge alignment but the project does provide for "widening" of the bridge. It was originally calculated that the developer's share was to be about $112,000 +/-. With the revised cost for the widening, the pro rata share would be $19,430. This revision would not require any action by the Commission or Council as there is no modification to the condition, only a modification to the cost share amount that was not specified in the resolution. Two other issues need to be considered as part of the big picture on this subject. While we are reducing the amount of participation, it appears that the original amount was never collected in 1990 as it should have been with the initial buildings. Dolley may believe he is in the clear on his new building. The share may catch him off guard and become a financial hardship given the current economic climate. We won't know this until we talk to Dolley. No requirement as to timing of the payment was conditioned. 0 0 Memo to George Scarborough -2- July 11, 1994 The second issue relates to monies the CRA owes to Dolley. It is my understanding that, when he pulls the building permit for the comer, he will be reimbursed $150,000 from the CRA. Also, we will owe him about $9,000+/- the share of fees he paid on the JohnsonNue and Stroescher properties. It may be more practical to work out some sort of cross credits and internal fund adjustments to complete a three-way transaction. Please let me know what direction you think we should take at this juncture. WMH:ch Attachment cc: Ted Simon Cass Walker Tony Foster MEMORANDUM TO: George Scarborough, City Manager FROM: Bill Huber, Director of Engineering & Buildinokl`� SUBJECT: Del Obispo/Trabuco Creek Bridge - Dolley (AC 88-9 & 89-9) July 26, 1994 Condition 5d of City Council Resolution No. 89-9-12-2 (attached) for AC 88-9 & 89-9 required the developer to ".... financially participate ... based on the development's pro rata share of generated traffic ... " for the Del Obispo widening at Trabuco Creek. To meet the requirements of AB 1600, the project must be budgeted in the City's long-range Capital Improvement Program to make a reasonable nexus between the development traffic and the need for participation in the project. In the case of the Dolley requirement, the developer was conditioned to participate in a project to widen the bridge to provide additional left -tum capacity at Alipaz and Paseo Adelanto. It was initially envisioned that the bridge would have to be completely rebuilt to provide for this improvement. However, subsequently, it was proposed that a separate pedestrian bridge would free up the existing southerly walkway and provide for the widening as conditioned. Additionally, the project to rebuild the bridge has not been budgeted in the City's Seven-year Capital Improvement Program due to limitations on available revenues (costs estimated at $_ 1 60OA00)! On the other hand, the cost for the pedestrian bridge (estimated at $290,000) is feasible within the Capital Improvement Program. Staff is, therefore, proposing that the condition will be satisfied and will meet the requirements of AB 1600 with Dolley's participation in the pedestrian bridge project. Based on their traffic, the pro rata share will be $19,430. As Dolley is pulling his final permits for the comer parcel, it is imperative that we resolve this issue at our earliest possible convenience. WMH:ch cc: Ted Simon Cass Walker 0 TO: City of San Juan Capistrano FROM: Ken Friess -yi,/q 5 CA,4 G / November 22, 1994 SUBJECT: Summaries of the "Reimbursement Agreement" and OPA As Related to Requests For Reimbursements and Waiver of Charges on Behalf of Bob Dolly and Seaside Ranchos. 1. Reimbursement Agreement In accordance with the "Reimbursement Agreement," dated January 1992, Section 4. Reimbursement to Developer Mr. Dolley will be reimbursed for the cost of the construction of improvements and signalization at the Golondrina/Camino Capistrano intersection. This was to be triggered when the EIR and /or traffic studies for new developments identify traffic impacts to this intersection. In addition, the agreement specifies reimbursement for signal modification and improvements at Del Obispo Street between Camino Capistrano and Plaza Street. The total estimated cost for improvements and signalization at the Golondrinas and Camino Capistrano intersection was $205,000, Mr. Dolley's estimated share was $41,000. The remainder, $164,000, is to be reimbursed in accordance with the City's Fair Share Policy 114. Of the $164, 000, the City has collected, in accordance with the OPA'S, $9, 975 and $12,000 for Johnson/Yu and Stroscher, respectively. (This is for the signalization and not for the street improvements) To date, Mr. Dolley has not received any reimbursement from the City, nor has been compensated for any other developments within the City. It is stated in the agreement that reimbursement for the remainder of the costs will come from other developments which have traffic impacts to this signal. However, We could not identify a tracking system, within the Engineering Department, that would satisfy this requirement. Because of this, we researched Traffic Studies and Environmental Impact Reports for projects approved after issuance of a building permit for Seaside Ranchos in 1991. We were only able to find one traffic study that identified this signal as being impacted by two new developments. They are Franciscan Plaza/Promenade and Historic Town Center. 'Dolley Reimbursement • Rage 2 November 14, 1994 A memorandum, dated November 12, 1986, from the Engineering Department identified that the developer of Franciscan Promenade should financially participate in downtown traffic signal interconnect system and traffic signal designs and construction at Avenida Golondrina and Camino Capistrano. This recommended condition of approval for Franciscan Promenade was not included in the adopted Planning Commission resolution. A reason could not be found for eliminating this condition. Regarding Historic Town Center, it should be noted that the Master Plan will need to identify the entire project's traffic generation and its impact to the signalization to determine the reimbursable amount. This will ensure payment if the entire area is not developed within the agreement's allotted time frame. The EIR's and traffic studies reviewed were Capistrano Collections, Marbella Plaza, Lincoln/Mercury, South Coast Christian Assembly, Toyota (Rosan Ranch), Pacific Point, Plaza de Las Golondrinas, Denny's, Glenfed E, F & H and San Juan Meadows. An additional one to research is Pueblo Serra. To date no City policy or pogram has been established to establish guidelines for the collection of the balance of the money that the City must reimburse to Mr. Dolley. The later issue, street improvements and signal modifications to Del Obispo between Camino Capistrano and Plaza Street, states that Mr. Dolley is to be reimbursed $60, 760 of the total cost of $70, 000. The methodology for determining which new developments would be required to contribute their fair share is not indicated in the agreement. No mechanism is identified in the agreement for administration of this reimbursement, and no policy exists to identify how Mr. Dolley can be reimbursed 2 OPA- Conditions to be Applied to Building ofP>nject Condition 3(c) of Public Improvements as listed in the OPA for Mr Dolley requires financial participation in the Del Obispo pedestrian bridge across Trabuco Creek based upon the development's pro -rate share of generated traffic impacts. Mr. Dolley's share initially was zero. Stroscher was not required to participate and Johnson/Yu's participation was zero. However, in a memo dated July 26, 1994, this amount was increased to $19, 430. The reason, as explained in the memo, is due to Condition 3(b) the widening of Del Obispo at Trabuco Creek no longer is budgeted in the City's Seven -Year Capital Improvement Program. Therefore the Engineering Department is now requesting Mr. Dolley transfer his pro -rate share of $1, 600, 000 ( his share is $112, 962) to the pedestrian bridge whose total cost is $260 ,000 (his share is $19, 430). 11 Dolley Reimbursement' Page 3 November 14, 1994 It is interesting to note that an earlier memo, dated June 21, 1994, stated that the widening of Del Obispo at Trabuco Creek was not funded in the Seven Year Capital Improvement Program. It then said that a nexus could not be found to substitute his share from the bridge widening to the pedestrian bridge. The requirement for paying a pro rata share of cost for the bridge widening was not imposed on the Stroscher development. The Johnson/Yu development share was pro -rated at $55,638. However, the CRA waived this fee, as noted on the December 12, 1989 Parcel Map/ Commercial Fees. We researched other developments and found that Franciscan Plaza/Promenade would meet the threshold for traffic generation to require a pro rate share for both improvements. As stated in a memorandum, dated November 12, 1986, the Engineering Department's recommended conditions of approval included the widening of Del Obispo at Trabuco Creek and the pedestrian bridge. These were not included in the conditions of approval per the Resolution. No explanation could be found as to why they were deleted. The obvious conclusion from the research regarding the pedestrian bridge is that the requirement was waived for every development except, Bob Dolley's. The early staff position was that no nexus could be established to require his participation, however, staffs current position provides no equity for him in relation to other projects. 11TI 11 111 11 11 1 San Juan Capistrano Community Redevelopment Agency June 7, 1991 Mr. Robert C. Dolley Seaside Ranchos 1442 Irvine Boulevard, Suite 205 Tustin, California 92681 /64,ijovns 'z Re: Owner Participation Agreements - Seaside Ranchos I and II Dear Mr. Dolley: At their regular meeting held June 4, 1991, the City Council of the City of San Juan Capistrano and the San Juan Capistrano Community Redevelopment Agency conducted joint public hearings relative to Owner Participation Agreements for the Seaside Ranchos I and II projects. Following the hearings, the City Council and the Agency approved the agreements for the two projects. Enclosed for your records are fully -executed copies of the Owner Participation Agreement for Seaside Ranchos I and Seaside Ranchos II. Enclosed also are copies of Resolutions No. CRA 91-6-4-1 and No. CRA 91-6-4-2, setting forth the Agency approval, and Resolutions No. 91-6-4-3 and No. 91-6-4-4, setting forth the City approval. If you need any further information, please let me know. Very truly yours, Cheryl Johnson City Clerk Enclosures cc: Cassandra Walker (with copies of Agreements/ Resolutions) 32400 Paseo Adelanto San Juan Capistrano California 92675 714 - 493-1171 • 400 RESOLUTION NO. CRA 91-6-4-1 APPROVING OWNER PARTICIPATION AGREEMENT (SEASIDE RANCHOS I/DOLLEY) A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, APPROVING AN OWNER PARTICIPATION AGREEMENT WITH SEASIDE RANCHOS I (SEASIDE RANCHOS/DOLLEY) WHEREAS, the Community Redevelopment Agency (the "Agency") of the City of San Juan Capistrano is engaged in activities necessary to carry out and implement the Redevelopment Plan for the San Juan Capistrano Central Redevelopment Project Area; and, WHEREAS, in order to carry out and implement such Redevelopment Plan, the Agency proposes to enter into an Owner Participation Agreement (the "Agreement") with aaside Ranchos I (the "Participant") toward the contribution by the Agency for certain ublic Improvements associated with development of the Project Area (the "Site"), as described in the Agreement, in the San Juan Capistrano Redevelopment Project Area; and, WHEREAS, the Participant has submitted to this City copies of said proposed Agreement in a form desired by the Participant; and, WHEREAS, pursuant to the California Community Redevelopment Law (California Health and Safety Code, Section 33000 et seq.), the Agency and the City Council of the City of San Juan Capistrano held a joint public hearing on the Agreement, having duly published notice of such public hearing and made copies of the proposed Agreement available for public inspection and comment; and, WHEREAS, the Agreement provides for certain Public Improvement, which are a benefit to the project area and are essential to its redevelopment according to the Redevelopment Plan; the cost of which renders such improvements infeasible without the financial participation by the Agency; and, WHEREAS, the Agency has duly considered all terms and conditions of the proposed Agreement and believes that the redevelopment of the real property pursuant thereto is in the best interests of the City of San Juan Capistrano and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local law and requirements; and, WHEREAS, a Negative Declaration for the Site Development proposed in the Agreement has been approved by the City of San Juan Capistrano Environmental Review Board on July 19, 1988, and no modifications to the proposed Site Development has been made which would require additional environmental review. NOW, THEREFORE, BE IT RESOLVED, by the San Juan Capistrano Community Redevelopment Agency, City of San Juan Capistrano, California, as follows. The Agency has received and heard all oral and written objections to the proposed Agreement and to other matters pertaining to this transaction, and that all such oral and written objections are hereby overruled. -1- r STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF SAN JUAN CAPISTRANO ) 1, JEFFREY C. PARKER, Acting Secretary of the San Juan Capistrano Community Redevelopment Agency, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. CRA 91-6-4-1 adopted by the Board of Directors of the San Juan Capistrano Community Redevelopment Agency, at a regular meeting thereof held on the 4th day of .Trop , 1991, by the following vote: AYES: Directors Jones, Hausdorfer, Friess, Vasquez and Chairman Buchheim NOES: None ABSTAIN: None ABSENT: None (SEAL) -3- 0 0 RESOLUTION NO. CRA 91-6-4-2 APPROVING OWNER PARTICIPATION AGREEMENT ASIDE RANCHOS/DOLLEY) A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, APPROVING AN OWNER PARTICIPATION AGREEMENT WITH SEASIDE RANCHOS II (SEASIDE RANCHOS/DOLLEY) WHEREAS, the Community Redevelopment Agency (the "Agency") of the City of San Juan Capistrano is engaged in activities necessary to carry out and implement the Redevelopment Plan for the San Juan Capistrano Central Redevelopment Project Area; and, WHEREAS, in order to carry out and implement such Redevelopment Plan, the Agency proposes to enter into an Owner Participation Agreement (the "Agreement") with Seaside Ranchos 11 (the "Participant") toward the contribution by the Agency for certain Public Improvements associated with development of the Project Area (the "Site"), as described in the Agreement, in the San Juan Capistrano Redevelopment Project Area; and, WHEREAS, the Participant has submitted to this City copies of said proposed Agreement in a form desired by the Participant; and, WHEREAS, pursuant to the California Community Redevelopment Law (California Health and Safety Code, Section 33000 et seq.), the Agency and the City Council of the City of San Juan Capistrano held a joint public hearing on the Agreement, having dul; iblished notice of such public hearing and made copies of the proposed Agreement available for public inspection and comment; and, WHEREAS, the Agreement provides for certain Public Improvement, which are a benefit to the project area and are essential to its redevelopment according to the Redevelopment Plan; the cost of which renders such improvements infeasible without the financial participation by the Agency; and, WHEREAS, the Agency has duly considered all terms and conditions of the proposed Agreement and believes that the redevelopment of the real property pursuant thereto is in the best interests of the City of San Juan Capistrano and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local law and requirements; and, WHEREAS, a Negative Declaration for the Site Development proposed in the Agreement has been approved by the City of San Juan Capistrano Environmental Review Board on October 17, 1989, and no modifications to the proposed Site Development has been made which would require additional environmental review. NOW, THEREFORE, BE IT RESOLVED, by the San Juan Capistrano Community Redevelopment Agency, City of San Juan Capistrano, California, as follows. 0 0 The Agency has received and heard all oral and written objections to the proposed Agreement and to other matters pertaining to this transaction, and that all such oral and written objections are hereby overruled. 2. The Agency hereby finds and determines that the public and common improvements to be financed in part by the Agency are a benefit to the Project Area and are essential to its development according to the Redevelopment Plan and that the costs to provide said improvements would be infeasible without the contribution by the Agency. 3. The Negative Declaration approved by the City's Environmental Board of Review on October 17, 1989, adequately considered all environmental impacts potentially caused by the proposed Site Development and there are no substantial changes in the proposed development which would alter the potential impacts caused by the oroposed Site Development and there are no substantial changes in proposed development which would alter the potential environmenta: :pact of the project. 4. The Chairman of the Agency is hereoy authorized to execute the Agreement on behalf of the Agency. A copy of the Agreement, when executed by the Agency, shall be placed on file in the office of the Secretary of the Agency. 5. The Chairman of the Agency (or his designee) is hereby authorized, on behalf of the Agency, to sign all documents necessary and appropriate to carry out and implement the Agreement and to administer the Agency's obligations, responsibilities and duties to be performed under the Agreement, and related documents. PASSED, APPROVED, AND ADOPTED this 4th day of June 1991. ,�x e,0,.Z N LIHH IM, CHAIRMAN ATTEST: .moi ��✓.. 1'U. /.J/. -2- r STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF SAN JUAN CAPISTRANO ) 1, JEFFREY C. PARKER, Acting Secretary of the San Juan Capistrano Community Redevelopment Agency, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. CRA -4-2 adopted by the Board of Directors of the San Juan Capistrano Community Redevelopment Agency, at a regular meeting thereof held on the 4th day of June , 1991, by the following vote: AYES: Directors Jones, Hausdorfer, Friess, Vasquez and Chairman Buchheim NOES: None ABSTAIN: None ABSENT: None (SEAL) -3- • �S�Hsr,oE RX) c�c�.yos 7 • JUNE 4, 1991 REGULAR MEETING OF THE SAN JUAN CAPISTRANO COMMIINITY REDEVELOPMENT AGENCY BOARD OF DIRECTORS The Regular Meeting of the Board of Directors of the City of San Juan Capistrano Redevelopment Agency was called to order by Chairman Buchheim at 7:11 p.m. in the City Council Chamber. ROLL CALL: PRESENT: Lawrence F. Buchheim, Chairman Gil Jones, Vice Chairman Kenneth E. Friess, Director Gary L. Hausdorfer, Director Jeff Vasquez, Director ABSENT: None STAFF PRESENT: Stephen B. Julian, Executive Director; Thomas Tomlinson, Acting Deputy Director; Jeffrey C. Parker, Acting Agency Secretary; David Bentz, Finance Officer; Thomas P. Clark, Agency Counsel; George Scarborough, Assistant City Manager; Cheryl Johnson, City Clerk; William Huber, Director of Engineering and Building Services; Ronald C. Sievers, Director of Public Lands and • Facilities; Al King, Director of Community Services; Nancy Bernardi, Recording Secretary. MINUTES - None PUBLIC HEARINGS 1. JOINT PUBLIC HEARING WITH THE CITY COUNCIL - OWNER PARTICIPATION AGREEMENT, SEASIDE RANCHOS I (PAYLESS/MILLER'S OUTPOST CENTER/DOLLEY) (600.40) 2. JOINT PUBLIC HEARING WITH THE CITY COUNCIL OWNER _PARTICIPATION AGREEMENT. SEASIDE RANCHOS II (FORMER SOUTHLAND GAS STATION SITE/DOLLEY) (600.40) Proposal: Consideration of two Owner Participation Agreements with Seaside Ranchos for the construction of the final portion of the Area A development. The Owner Participation Agreement for Seaside Ranchos I is for the 55,441 -square -foot Payless/Miller's Outpost center, and provides for the Agency to pay the City's developer impact fees or traffic signal improvements at three locations and for Ortega Highway widening improvements. The total fees are approximately $51,250. The Owner Participation Agreement for Seaside Ranchos II is for an 11,610 -square -foot expansion of that • -1- 6/4/91 0 0 • center contingent on the purchase of the property from the Southland Corporation at the corner of Del Obispo and Camino Capistrano; that Agency will reimburse Seaside Ranchos for $150,000 of the asking price of the property. Written Communication: Report dated June 4, 1991, from the Community Development Manager, forwarding the two Resolutions for approval of both Owner Participation Agreements. Exhibits were on display, and Cassandra Walker, Community Development Manager, made an oral presentation. Public Hearing: Notice having been given as required by law, Mayor/Director Friess opened the Public Hearing, and the following person responded: (1) The property owner, Robert Dolley, 1442 Irvine Boulevard, Suite 205, Tustin, 92681, stated that the proposed uses for Seaside Ranchos II may include a steak house with western entertainment, the hours of which would probably not conflict with those of the surrounding stores. He expressed his desire to obtain input from the public regarding this location. Mr. Dolley also requested • assistance from the City to relocate the Kentucky Fried Chicken establishment. Director Jones requested that all analyses be completed with regard to the proposed nightclub parking before proceeding much further with the project. It was a consensus of the Board that staff provide assistance to Mr. Dolley in relocating the Kentucky Fried Chicken establishment. There being no further response, the hearing was declared closed with the right to reopen at any time. Approval of Owner Participation Agreement for Seaside Rancho I: It was moved by Director Hausdorfer, seconded by Director Friess, that the following Resolution be adopted: RESOLUTION NO. CRA 91-6-4-1. APPROVING OWNER PARTICIPATION AGREEMENT (SEASIDE RANCHOS I/DOLLEY) - A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY APPROVING AN OWNER PARTICIPATION AGREEMENT WITH SEASIDE RANCHOS I (SEASIDE RANCHOS/DOLLEY) is -2- 6/4/91 • The motion carried by the following vote: 3. AYES: Directors Jones, Hausdorfer, Friess, Vasquez, and Chairman Buchheim NOES: None ABSENT: None Approval of Owner Participation Agreement for Seaside Rancho II: It was moved by Director Hausdorfer, seconded by Director Friess, that the following Resolution be adopted: RESOLUTION NO. CRA 91-6-4-2. APPROVING OWNER PARTICIPATION AGREEMENT (SEASIDE RANCHOS II/DOLLEY) - A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY APPROVING AN OWNER PARTICIPATION AGREEMENT WITH SEASIDE RANCHOS II (SEASIDE RANCHOS/DOLLEY) The motion carried by the following vote: AYES: Directors Jones, Hausdorfer, Friess, Vasquez, and Chairman Buchheim NOES: None ABSENT: None Pro os Cons' eration o the con pt Civic C ter Mas r Plan fo the old apistra High Sc of site, 1 ated on he east s' a of C ino Ca ' trano be een La Zan' and Acj hema Stree . The rcha of the P1 was to Bess the isting fea res of roperty, the otentia or preservi g historic ements, to provide dir tion the locati n of pot tial new buildings, and to sess the comp ibility existing, proposed and n ructures in relati nship t he site. The plan was rev' ed and forwarded by th appr riate boards aid s w th a recommendation of ap val. wriLLen uommun cation: Report dated Ju 41 199 om the Development Manager, summarizing a plan and the revisions recommended by the various commissions and boards. -3- 6/4/91 0 0 AGENDA ITEM June 4, 1991 TO: Stephen B. Julian, Executive Director FROM: Cassandra Walker, Community Development Manager SUBJECT: Joint Public Hearing on Two Proposed Owner Participation AGreements for Property Located at the Southwest Corner of Del Obispo Street and Camino Capistrano Providing Agency Reimbursement for Public Improvements (Seaside Ranchos I and II) SITUATION: A. Summary and Recommendation - The Redevelopment Agency Staff has negotiated two Owner Participation Agreements (OPA) with Seaside Ranchos for the construction of a 67,000+ square foot shopping center. The OPA for Seaside Ranchos I is for the 55,441 square foot Payless/Miller's Outpost Center. The OPA for Seaside Ranchos II is for an 11,610 square foot expansion of that center at the corner of Del Obispo and Camino Capistrano (the former Southland service station site). Two separate OPA's have been negotiated because the Agency assistance is for Seaside Ranchos I which relates to the provision of common and public improvements for the entire Area A development of which Seaside Ranchos I and II are a part. Area A includes the Marshall's and Home Improvement Centers. The Agency assistance for Seaside Ranchos II is based on the financial assistance required by the Developer to acquire the old 7-11 site from the Southland Corporation and expand the shopping center. Neither OPA places any financial obligations on the City. The Agency is required by Redevelopment Law to hold a joint public hearing with the Council and to obtain the Council's approval as it relates to the action being considered by the Agency in approving the OPA's. Staff recommends approval of both OPA's for Seaside Ranchos I and Seaside Ranchos II. B. Background - The Area A Master Plan requires that all of Area A be developed in a uniform manner, providing the appearance of a single commercial center. In order to accomplish this, staff has worked with each property owner and developed separate OPA's to ensure the common design of Area A, new access to the project site from Del Obispo, common sewers, storm drains, and underground utilities. c FOR CITY COUNCIL AG DA .. / II • 11 Agenda Item - 2 - June 4, 1991 In December 1988, the Agency Board and the City Council approved the OPA for Plaza Del Obispo (Marshall's Center) which was the first phase of the Area A development. On June 20, 1989, the City Council approved two OPA's for the Home Improvement Center jointly developed by Deering Investment Company and Paseo Capistrano Limited Partnership. Seaside Ranchos I and II are the final portion of the Area A development. Development plans for Seaside Ranchos I were approved by the Planning Commission at a public hearing on January 10, 1989, for the 55,441 square foot Payless/Miller's Outpost Center. The expansion of the center onto the corner property was not included in this approval because negotiations among the Agency, Southland Corporation and Seaside Ranchos had not been concluded for the acquisition of this site. The development plans for Seaside Ranchos II were processed separately and approved by the Planning Commission on February 13, 1990. These plans call for an additional 11,610 square feet of retail space and restaurant use. Through negotiations with the Developer, it was decided to proceed with the development of two OPA's. The OPA for Seaside Ranchos I provides for the Agency to pay certain City fees for public and common improvements. These developer impact fees are for traffic signal improvements at three locations and Ortega Highway street widening improvements related to the cumulative impact of both phases of this project. These fees total approximately $51,250. The OPA for Seaside Ranchos II is based on the 11,610 square foot expansion of the center which is contingent upon the purchase of the corner property from the Southland Corporation. The Southland Property appraisal showed a value of $900,000. The pro -forma for the overall Seaside Ranchos Development (Seaside Ranchos I and II) showed the development could only support a purchase price of $562,000. This purchase amount was verified by the Agency's financial consultant, Keyser Marston Associates Incorporated. In negotiations among the Agency, Seaside Ranchos and The Southland Corporation, it was agreed that the Southland Corporation would reduce its asking price to $750,000 for the property. Seaside Ranchos would pay this full price, but the Agency would reimburse Seaside Ranchos $150,000, bringing the actual cost for the property by Seaside Ranchos to $600,000. Agenda Item - 3 - June 4, 1991 The Agency reimbursement will be secured by a Deed of Trust on the Seaside Ranchos II property. The Deed of Trust will be deemed satisfied upon the issuance of the Certificate of Completion for the project by the Agency. The purpose of the Deed of Trust is to ensure that the development is, in fact, built. Seaside Ranchos is currently in escrow with the Southland Corporation for this site. Since the Southland Corporation is in bankruptcy, approval of the sale is required by the Bankruptcy Court. This approval was given in January and escrow was recently opened on the purchase. Both of these OPA's provide that the costs of all other public improvements shall be borne by the Developer, with the exception of such costs which have previously been paid by the Agency in the OPA between the Agency and Stroscher Properties. This agreement provided for the common Area A public improvements such as storm drains, sewers, and underground utilities. COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: The OPA has not been reviewed by any of the City's boards or commissions. The proposed site plans for this Center has been reviewed by the appropriate boards, and commissions and final approval by the Planning Commission for Seaside Ranchos I was given on January 10, 1989. The final approval for Seaside Ranchos II was given by the Planning Commission on February 13, 1990. FINANCIAL CONSIDERATIONS: Under the terms of these OPA's, no expenditures of City funds are required or requested. No obligation is placed on any City revenues. The Agency's assistance for public infrastructure improvements and payment of fees, and the land acquisition costs are the responsibility of the Agency, not the City. The assistance for the common area public improvements have already been paid under the terms of the OPA with Stroscher properties. The amount of the Agency -assisted fees (Traffic Signal Improvements and Ortega Highway Improvements) is approximately $51,250. The funds for the payment of fees will be carried as a debt to the City on the Agency books until future tax increments from the project are available to relieve the debt. 0 0 Agenda Item - 4 - June 4, 1991 The Agency will also reimburse Seaside Ranchos $150,000 for the land acquisition costs for the Southland Property. These funds will come from the tax increment being generated by redevelopment activities. Under the terms of the OPA, this assistance is scheduled to be paid to Seaside Ranchos when the building permits for Seaside Ranchos II are ready to be issued by the City. This is not expected until early in the next fiscal year. The required legal notices of the public hearing were published on May 16, 1991, and May 23, 1991, in the Capistrano Valley News. Legally, no other public notice is required. Thus, there has been no mailing to property owners. Further, while not required, the Agency has prepared and made available for public review a summary of the OPA's as outlined in Section 33433 of the California Health and Safety Code (The Community Redevelopment Law). ALTERNATE ACTIONS: 1. Adopt the attached Resolutions approving the Owner Participation Agreements for Seaside Ranchos I and Seaside Ranchos II. 2. Do not adopt the resolutions. ----------------------------------- ----------------------------------- RECOMMENDATION: By motion, adopt both Resolutions approving the Owner Participation Agreements with Seaside Ranchos for Seaside Ranchos I and Seaside Ranchos II which defines the obligations of the Owner and the Agency. Respectfully submitted, J Cassandra Walker Community Development Manager CW:rmb attach 171 0 ANALYSIS OF THE SAN JUAN CAPISTRANO REDEVELOPMENT AGENCY OWNER PARTICIPATION WITH SEASIDE RANCHOS SEASIDE RANCHOS I This analysis is provided to outline the level of participation by the San Juan Capistrano Redevelopment Agency in the development detailed in the proposed Owner Participation Agreement by and between the Agency and Seaside Ranchos. This report is not required by State Redevelopment Law. However, it has been prepared in the interest of providing full disclosure to the public of the Agency's actions. It is intended to serve the purposes of the report detailed in Section 33433 of the California Health and Safety Code, which is required only when the Agency proposes the sale or lease of property. PROPOSED PROJECT The proposed project is the first phase of a 67,000 square foot shopping center. The first phase (Seaside Ranchos I) includes the development of 55,441 square feet of space representing the Payless/Miller's Outpost Center. The second phase (Seaside Ranchos II) includes an 11,610 square foot expansion of the Center at the corner of Del Obispo and Camino Capistrano, the former Southland service station site. The expansion is intended to include a restaurant site and additional retail/commercial space. AGENCY FINANCIAL PARTICIPATION Pursuant to an Owner Participation Agreement by and between Stroscher Properties and the Agency, approved by the Agency on December 6, 1988, the Agency has agreed to reimburse $100,000 towards the development of common public improvements serving the developments of Deering Investment Company/Paseo Capistrano Limited Partnership (Home Improvement Center), Stroscher Properties (Marshall's Center), and Seaside Ranchos. Based on a Memorandum of Understanding executed by all four of these property owners, Seaside Ranchos' allocation is 18% of the $100,000. 0 0 In addition, on behalf of Seaside Ranchos for both Seaside Ranchos Phases I and II, the Agency shall pay the fees totaling approximately $51,250.00, to the City for off-site public improvements for the following: 1. Ortega Highway widening from Del Obispo to I- 5 2. Traffic signal - Camino Capistrano/Avenida Padre 3. Traffic signal - Del Obispo Street/Forster Lane 4. Traffic signal - Del Obispo Street/Plaza Street - Paseo Mercado de Capistrano The Developer will be responsible for other off-site public improvements at his expense. City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 714 493-2171 INITIAL STUDY (Preliminary Environmental Review) Project Title: AC 88-9, ZV 88-11 (Seaside Ranchos) Applicant: Seaside Ranchos/Robert Dolley PROJECT DESCRIPTION The proposal is a request to construct a 252,717 square -foot retail/commercial center on 5.801 acres. The project is located at the southeast corner of Del Obispo Street and Camino Capistrano. Environmental Review Board Determination: The Environmental Review Board has performed a preliminary review of this project in accordance with the City of San Juan Capistrano adopted guidelines for implementing the California Environmental Quality Act of 1970. The Initial Study findings are that a traffic study and archaeological survey have been completed for the project site. Based upon conclusions from these reports and subsequent mitigation measures to the project, there will be no significant impacts to the environment. Therefore, the determination is that: Further environmental evaluation is not required because: The proposed action does not constitute a project as defined in the Guidelines. The project is ministerial. The project is an emergency. The project is categorically exempt (Class ). The project involves only feasibility or planning studies. X The project qualifies as a Negative Declaration. The project impacts have been addressed in the overall project EIR. The project may have a significant impact on the environment and an EIR will be required. Thomas Tomlinson, Chairman Environmental Review Board 4' City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 rW1 Date Mailed & Posted 8 -e2- &% Posting Removal Date 4- b • Py (Posting date + 10 days NEGATIVE DECLARATION Project Title: AC88-9, ZV 88-11 (Seaside Ranchos) Applicant: Seaside Ranchos/Robert Dolley PROJECT DESCRIPTION The proposal is a request to construct a 252,717 square -foot retail/commercial center on 5.80 t acres. The project is located at the southeast corner of Del Obispo Street and Camino Capistrano. Environmental Review Board Determination: This project has been evaluated in accordance with the adopted State guidelines to determine its potential impact on the environment. It has been found that this project will not have a significant effect on the environment. The Environmental Review Board's reason for this finding is: a traffic study and archaeological survey have been completed for the project site. Based upon conclusions from these reports and subsequent mitigation measures to the project, there will be no significant impacts to the environment. The Initial Study upon which this finding is based was prepared by: Susan Tebo, Associate Planner A copy of this Initial Study may be obtained at the City Planning Department, City Hall, 32400 Paseo Adelanto, San Juan Capistrano. Thomas Tomlinson, Chairman Environmental Review Board Any person may file an appeal to a Negative Declaration. Such an appeal must be filed in writing with the Planning Department within ten (10) days of the above date. The filing of an appeal stays proceedings in this matter until the determination of the appeal by the appropriate City decision-making body. If it is determined that the appeal is based on significant environmental factors not previously considered, or which should be considered and which may have a significant effect on the environment, an EIR shall be prepared. The City Council has delegated authority for granting Negative Declarations to the Environmental Review Board by means of Resolution 74-2-11-2 and the City's adopted Environmental Impact Report Guidelines. c 4 City of San Juan Capistrano Date Mailed & Posted z S x 32400 Paseo Adelanto Posting Removal Date San Juan Capistrano, CA 92675 (Posting date + 10 days NEGATIVE DECLARATION rr I L E^ D Project Title: AC88-9, ZV 88-I1 (Seaside Ranchos) AU 41988 Applicant: Seaside Ranchos/Robert Dolley GARY L. Carle PROJECT DESCRIPTION By pEPUiY The proposal is a request to construct a 252,717 square -foot retail/commercial center on 5.80 t acres. The project is located at the southeast corner of Del Obispo Street and Camino Capistrano. Env.ronmental Keview Board Determination: This project has been evaluated in accordance with the adopted State guidelines to determine its potential impact on the environment. It has been found that this project will not have a significant effect on the environment. The Environmental Review Board's reason for this finding is: a traffic study and archaeological survey have been completed for the project site. Based upon conclusions from these reports and subsequent mitigation measures to the project, there will be no significant impacts to the environment. The Initial Study upon which this finding is based was prepared by: Susan Tebo, Associate Planner A copy of this Initial Study may be obtained at the City Planning Department, City Hall, 32400 Paseo Adelanto, San Juan Capistrano. �t10 Thomas Tomlinson, Chairman Environmental Review Board C; Any person may file an appeal to a Negative Declaration. Such an appeal must be filed in writing with the Planning Department within ten (10) days of the above date. The filing of an appeal stays proceedings in this matter until the determination of the appeal by the appropriate City decision-making body. If it is determined that the appeal is based on significant environmental factors not previously considered, or which should be considered and which may have a significant effect on the environment, an EIR shall be prepared. The City Council has delegated authority for granting Negative Declarations to the Environmental Review Board by means of Resolution 74-2-11-2 and the City's adopted Environmental Impact Report Guidelines. POSTED AU G 41988 GARY L E rk DEPUTY R�'- 0 AFFIDAVIT OF PUBLICATION STATE OF CALIFORNIA COUNTY OF ORANGE I am a citizen of the United States and a resident of the County aforesaid. I am over the age of eighteen years. and not a parry to or interested in the above entitled matter. I am the principal clerk of the Capistrano Valley News. a newspaper that has been adjudged to be a newspaper of general circulation by the Superior Court of the County of Orange, State of California. on June 7. 1964, Case No. A-122949 in and for the City of San Juan Capistrano, County of Orange, State of California: that the notice, of which the annexed is a true printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: May 16, 23, 1991 I declare under penalty of perjury that the foregoing is true and COnect. Executed at Mission Viejo. Orange County, California. on May 23, 1991 .......................�.....'.nJ............./................................... ..u.)................................ ..................... .....w....:-.............................. (Signature) Capistrano Valley News (A Publication of South Orange County News) 23811 Via Fabricante P. O. Box 3629 Mission Viejo, California 92690 (714) 768-3631 0 Nueva Space below for Filing Stamlp. (Znly3 ' 33 PM '91 NTY C OEPAR T CITY OF SAN XAN CAPISTRANO Proof of Publication of NOTICE OF PUBLIC HEARING ............................................................................................................. NOTICE OF PUBLIC HEARING CITY OF SAN JUAN CAPISTRANO NOTICE OF JOINT PUBLIC HEARING NOTICE OF JOINT PUBLIC HEARING BY THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO AND THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY 7:00 rano, California, the City I (the "City") and the San b Safety Code Section 33000 et OW Inc the Purpose of ng the approval ofa proposed Owner Participation Agree- ! "Agramoe rVI with Seaside Ranchos. The Agreement per the reimbursement of funds expended for public im- rm amoelated with the Seaside Ranchos I project. osedblao M the project raid for the find phase dev^Inp ing will be constructed by the develapmar on the alts. The purpose of the public hearing is tocoeshiM 1. The proposed Agreement between the San Juan Capistrano Community Redevelopment Agency and the developer, and, 2. All evidence and testimony for and against the approval ofthe Agreement. At any time not later than the hour aforesaid set for hearing, any person objecting to the proposed AgreememtQr to the regularity of any fthe prior proceedings may, Poe in writing with fhe City Clerk a statement of his or her objections thereto. Any persons or omanirations desiring to be heard may appear before the Agency The o01ce all Mondry 1, 37400 Paseo Adelanlo, San Juin Capistrano, CaRformm92E70: - l. A appy of the Agreement between the. San Joan Capistrano Community Redevelopment' Agency. City of San Juan Capistrano, CNitbrnin and the Developer, and, 2. A summary Report which deraibee'aad specifies the levelof participation by the Agency, and, 3. The Negative Declaration lamed by the Envirobm Cal Review Hoard on July 19. 4915 For further Information, you rimy contact the Community Redeveb opueent Ageney sta98-1141. CHERYL JOHNSON, CITY CLERK Published: Capistrano Valley News May Ig, 23, 1991 9Y718 0 NOTICE OF TRANSMITTAL - LEGAL PUBLICATIONS TO: CAPISTRANO VALLEY NEWS Bea Gougeon, Legal FOR PUBLICATION ON: DOCUMENT TO BE PUBLISHED: PROOF OF PUBLICATION - 0 THURSDAY, MAY 16, 1991 THURSDAY, MAY 23, 1991 NOTICE OF JOINT PUBLIC HEARING - OWNER PARTICIPATION AGREEMENT (DOLLEY/SEASIDE RANCHOS I) Please send to: City Clerk's Department City Hall 32400 Paseo Adelanto San Juan Capistrano, CA 92675 (714) 493-1171 AUTHORIZED ��✓.�� .I� DATE: May 9, 1991 Date of Public Hearing Date notice published Date affidavit received Date notice posted in designated posting places (3) Date notice posted on property Date of mailing notice to interested parties Date notice transmitted to City Manager's Office -06/04/91 -05/16/91 -05/23/91 - (.1314/ dlmj- - 05/16/91 - N/A -05/16/91 -05/09/91 notiV9f • PUBLIC HEARING CITY OF SAN JUAN NOTICE OF JOINT PUBLIC HEARING C A P I S T R A N 0 NOTICE OF JOINT PUBLIC HEARING BY THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO AND THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY NOTICE IS HEREBY GIVEN, that on the 4th day of June, 1991, at 7:00 P.M., in the City Council Chamber, 32400 Paseo Adelanto, San Juan Capistrano, California, the City Council of the City of San Juan Capistrano (the "City") and the San Juan Capistrano Community Redevelopment Agency (the "Agency") will hold a joint public hearing pursuant to the California Community Redevelopment Law (Health be Safety Code Section 33000 et seq) for the purpose of considering the approval of a proposed Owner Participation Agreement (the "Agreement") with Seaside Ranchos. The Agreement provides for the reimbursement of funds expended for public improvements associated with the Seaside Ranchos I project. The proposed plan for the project calls for the first phase development of a 55,441 square -foot Shopping Center, with Payless/Millers Outpost as the anchor tenants, and necessary landscaping and parking will be constructed by the developer on the site. The purpose of the public hearing is to consider: f. The proposed Agreement between the San Juan Capistrano Community Redevelopment Agency and the developer; and, 2. All evidence and testimony for and against the approval of the Agreement. At any time not later than the hour aforesaid set for hearing, any person objecting to the proposed Agreement or to the regularity of any of the prior proceedings may file in writing with the City Clerk a statement of his or her objections thereto. Any persons or organizations desiring to be heard may appear before the Agency and the City Council and show cause why the Agreement should not be approved. At the aforesaid hour the City Council and the Agency shall proceed to hear and pass upon all written and oral objections. The following documents are available for public inspection and copying during regular office hours (8:00 A.M. to 5:00 P.M., Monday through Friday) at the office of the City Clerk, City Hall, 32400 Paseo Adelanto, San Juan Capistrano, California 92675- A copy of the Agreement between the San Juan Capistrano Community Redevelopment Agency, City of San Juan Capistrano, California and the Developer; and, , Joint Public Hearing ' Seaside Ranchos I Page 2 2. A summary Report which describes and specifies the level of participation by the Agency;and, 3. The Negative Declaration issued by the Environmental Review Board on July 19, 1988. For further information, you may contact the Community Redevelopment Agency at 493- 1171. FOR OFFICE USE ONLY: STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) AFFIDAVIT OF POSTING AND PUBLICATION CHERYL JOHNSON, being first duly sworn, deposes and says: That she is the duly appointed and qualified City Clerk of the City of San Juan Capistrano; that on May 16, 1991, she caused the above Notice to be posted in three (3) public places in the City of San Juan Capistrano, to wit: City Hall; Old Fire Station Recreation Complex; Orange County Public Library AND, that on May 16, and May 23, 1991, the above Notice was published in the Capistrano Valley News newspaper. %-I Ly of -Ndn Judn %.dP1bLrd11U, California