60A - 2ND READING NO. 2018-01 2525 MAIN

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Second Reading: Development Agreement No. 2018-01/Amendment Application No. 2018-10; or Direct Staff to Prepare an Initiative Measure for City Council Consideration January 21, 2020 Page 2 Since the December 17th City Council meeting, two significant developments have come to light. On December 19, 2019, Santa Ana Citizens for Responsible Development (SACRD) filed a petition for complaint and declaratory relief with the Superior Court of California alleging a violation of the California Environmental Quality Act (CEQA) by the City, the applicant, and the Discovery Cube. In addition, members of the City Council have sought information on how to submit the zone change and development agreement to the voters of Santa Ana as an initiative measure. These two issues are further discussed below. 2019 SACRD CEQA Petition: SACRD has filed a lawsuit alleging the City violated CEQA by not adequately studying potential environmental impacts to adjacent neighborhoods. The City is named as the defendant and the developer and Discovery Cube are named as real parties in interest. The developer's attorney is preparing a defense of this lawsuit as the developer agreed to defend and indemnify the City. City Council Initiative Measure: In accordance with California Election Code Section 9222, the City Council may direct staff to prepare and submit an initiative measure putting the approval of the zone change and development agreement to the voters of Santa Ana. The submission process has preparation requirements and deadlines dictating when the issue may be submitted to the voters either as a special election or as part of a regular election. Based on the requirements and deadlines, a special election can be held in June, July or August 2020. The total cost of putting an initiative measure to the voters at a special election will come at an estimated cost of $650,000 or more and the costs would be entirely borne by the City. The alternative to a special election is to prepare an initiative measure for the next regular election on November 3, 2020. This would eliminate the cost to the City associated with calling for a special election. If the City Council desires to pursue the initiative alternative, the City Council should direct staff to prepare the proposed ballot measure and resolutions calling for an election. STRATEGIC PLAN ALIGNMENT Approval of this item supports Goal No. 3 - Economic Development, Objective No. 2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies). Daisy Gomez Clerk of the Council Sonia Carvalho City Attorney 60A-2