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November 27, 2007 Page 2 City of Santa Ana reciprocal access agreements (REA), covenants conditions and restrictions (CC&R's) and common area maintenance agreements (CAMA). With the proper documentation, parcel size and shape have very little to do with the re-development of commercial property. In this instance, the staff has even referred to previous approvals to sub-divide this property (Floral Park Promenade) but fails to discuss how these "subdivided" properties were actually re-developed even with the fractured ownership, which has been the basis for the denial of this application. The staff report reply's on Section 66474(b) of the Subdivision Map Act to deny this application but fails to discuss how this reliance may in fact hinder the city's long term ability to control the re-development of this site. The Subdivisions Map Act has specific provisions that will allow for the fracturing of ownership without the controls that could be included in a resolution to approve this request. Specifically, section 66412.1' of the Land Map Act expressly exempts this type of project from review if other forms of ownership such as a long term ground lease are instituted. While this would not be the best approach from an ownership perspective, it is an accepted way of conveyance and is done through the creation of a legal descriptions and a ground lease. Terms for these types of development(s) can run anywhere from thirty (30) to ninety-nine (99) years. A conveyance of this type ground leaseZwould not be subject to any form of government review thus restricting the city's ability to regulate it. In other words, the approval of this application would afford the city the opportunity to require specific conditions as part of its approval such as CC&R's and CAMA agreements to insure the long term success of this project and the ability to re-develop in the future. Byway of example, the rear northern portion of this property, including the parking spaces, are located on the adjacent owner's property (proposed village green development) and are regulated by a long term ground lease. As with this application, the lack of city control's vis-a-vis CC&R's has insured that the long-term redevelopment of this site maybe compromised by a ground lease due to the city's ability to have provided proper controls that would actually provide for long-term sustainability. As it relates to the development standards, the proposed parcel meets the specific requirements including among other things, frontage and lot size. Letter of the code and spirit of the code are an important factor in determining the intent. In this case, staff has suggested that this application clearly does not meat the intent of the code, but sections such as 41-608(a.) would suggest that the intent of the code was not to regulate in a fashion that would always insure "regularly shaped parcels" but rather provides several provisions that allow for the development of irregularly shaped lots. ' 66412.1. This division shall also be inapplicable to: (a) The financing or leasing of any parcel of land, or and op rtion thereof 1234 East Seventeenth Street, Santa Ana, CA 92701 32A-14