75D - PH- MAIN PLACE TRANSFORMATION

Home Browse Search

ER No. 2018-72, AA No. 2018-04, DA No. 2018-02, & TPM No. 2018-01, — MainPlace Transformation Project June 4, 2019 Page 10 Development Agreement The applicant has requested approval of a development agreement (DA), which is a contract between the City and a developer that provides assurances and public benefits for both parties. The development agreement addresses the term of the agreement, possible extensions, indemnification, incentives for buildout of the non-residential and residential components of the project, requirements for recording conditions, covenants, and restrictions (CC&Rs), public art, City access to onsite open space areas, positive local impacts, overcrowding mitigation plans, and monitoring and reporting. These terms have been crafted to ensure high -quality development at the project site with positive financial impacts to the City. Additional details are provided in the summary of major deal points in Table 6, Development Agreement Major Deal Points. Table 6: Development Agreement Maior Deal Points )Item �Glescription- Term and Extensions The initial term of the DA is 10 years. The term may be automatically extended to 15 years if the developer completes construction or redevelopment of certain components within the first 7 to 8 years, including the central open space, the Nordstrom box building, large -format educational/entertainment use, parking, and site improvements, and hotel rooms. Non -Residential Completing non-residential components of the project, including construction Development or redevelopment of central open space, the Nordstrom box building, large - Incentives format educational/entertainment use, parking, and site improvements, and/or hotel rooms, will result in automatic extensions to the DA from 10 to up to 20 years. Completion of non-residential development components will also allow issuance of building permits for additional residential units on the site, ensuring a balance of revenue -generating uses for the City. City Access to Open The DA ensures that the City will be provided usage of the Central Plaza, Spaces Entry Plaza, or other mutually -accepted space at least 12 days each calendar year for events that are reasonably compatible with the project programming. The owner will also be required to provide at least 10 free events each year for the general public. Public Art The DA requires that public art be created, installed, and maintained on the project with a value equivalent to one-half of one percent (0.5%) of the total construction cost of the project. The public art component must also include at least two publicly -accessible water features on the project site. Positive Local Impacts The DA requires that the owner shall submit a plan for ongoing engagement and support of local philanthropic activities in Santa Ana relating to education, culture, and the arts, as well as local live -work preference for the rental or sale of residential units on the project site, and a local sourcing plan to hire and procure locally. 75D-10