Item 24 - Third Extension of Site Plan Review No. 2020-04

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Third Extension of Entitlements for the Central Pointe Mixed -Use Development - 1801 East Fourth Street October 1, 2024 Page 2 The City Council approved the applicant's first request for a one-year entitlement extension on July 19, 2022 after taking into account the of effects COVID-19 pandemic on securing funding, labor, and construction materials (Exhibit 3). The approval of the initial request extended the subject project's entitlements until November 9, 2023. On September 19, 2023, the City Council granted a second one-year extension for the project's entitlement, extending it to November 9, 2024 (Exhibit 4). This extension was necessary as the applicant was unable complete the plan check process, obtain building permits, and begin construction before the November 9, 2023 deadline. Analysis As a result of the global COVID-19 pandemic, the California Legislature approved AB 1561, which extended entitlements that were effective prior to March 4, 2020, and that were set to expire before December 31, 2021. Due to the various dates of approval and expiration on November 9, 2020 and November 9, 2022, AB 1561 did not apply to the subject entitlement. Therefore, an extension by the City Council pursuant to Section 8.4 of the MEMU Overlay Zone was initially requested by the applicant and approved on July 19, 2022. High interest rates have impacted construction loans and land development costs, resulting in ongoing delays to the project's ability to break ground on the project by the November 9, 2024 deadline that was established by the last City Council -approved entitlement extension. The applicant was issued building permits for the first development phase of the project (325 units and 9,165 square feet of commercial space) in December 2023 and has paid the associated permit fees. However, current challenges in the capital markets for both debt and equity financing continue to impede project development. As a result, the applicant is requesting a third one-year entitlement extension to November 9, 2025 pursuant to Section 8.4 of the MEMU Overlay Zone document. In an effort to encourage construction of entitled projects, it is the Planning Division's policy to recommend no more than one-year extensions at a time. The applicant's request is the third and last of three permissible one-year extensions. Upon the securing of funding for the project, the applicant intends to break ground on the project to effectuate its entitlements within a timely manner. Information provide by the applicant indicates an anticipated groundbreaking by January of 2025. Property Maintenance The vacant site previously experienced issues with uncontrolled vegetation, site security, and illegal dumping. In response to community concerns and measures identified by the Planning and Building Agency, the applicant previously submitted and is adhering to a vacant property maintenance plan that addresses the issues stemming from the site's ongoing vacancy. These measures include: • Installation of a construction fence around the perimeter of the site on Fourth Street, Cabrillo Park Drive, Parkcourt Place, and tie-ins to existing fencing along the Santa Ana (1-5) Freeway.