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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MARCH 5, 2019 <br />CLERK OF COUNCIL USE ONLY: <br />TITLE: APPROVED <br />APPROVE APPROPRIATION ADJUSTMENT <br />[I As Recommended <br />AND AUTHORIZE REIMBURSEMENT <br />EI E] <br />E]OOrrdinance on 15' Reading <br />AGREEMENT WITH CHICK-FIL-A FOR <br />❑ Ordinance on 25d Reading <br />COSTS RELATED TO SEVENTEENTH <br />❑ Implementing Resolution <br />AND TUSTIN ANNEXATION <br />❑ Set Public Hearing For <br />{STRATEGIC PLAN NO. 3,3C) <br />CONTINUED TO <br />FILE NUMBER <br />CITY MANAGER <br />1. Authorize the City Manager and the Clerk of the Council to execute a Reimbursement Agreement <br />with Chick-fil-A, Inc. for the payment of fees and costs related to annexation processing for the <br />Seventeenth and Tustin Annexation, subject to non -substantive changes approved by the City <br />Manager and City Attorney. <br />2. Approve an Appropriation Adjustment recognizing Fiscal Year 2018-19 Chick-fil-A $50,000 <br />reimbursement deposit to Planning and Building Agency's Special Revenue Fund, Planning <br />Consultant Services Fees Revenue Account and appropriating the same amount to Planning and <br />Building Agency Contract Services, Planning Consultant Services Fees Expenditure Account. <br />DISCUSSION <br />In June 2018, the City Council directed staff to initiate the process to annex a 24.78 -acre County <br />of Orange (County) island located at the northeast corner.of Seventeenth Street and Tustin <br />Avenue. This process requires an application through the Orange County Local Agency Formation <br />Commission (LAFCO). Planning and Building Agency staff have commenced preliminary work <br />required for the application process including drafting documents to predesignate land use and <br />prezone properties within the proposed annexation area that will be required by LAFCO. <br />Approximately two years ago, the County received a proposal to construct two new restaurants on <br />3.3 acres of vacant land within the area to be annexed. Since that time, the representatives for <br />those restaurants, In -N -Out and Chick-fil-A, have been working with County staff on the project <br />entitlements. Chick-fil-A has now filed the necessary applications with the County of Orange to <br />develop a portion of the 3.3 -acre vacant commercial site. Due to the projects location on the county <br />island, there has been an inability for the project to obtain City services and the project has not <br />moved forward. Annexing the Seventeenth Street and Tustin Avenue island would enable the <br />development process to move forward by allowing the City to provide public services to the area. <br />20B-1 <br />