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HomeMy WebLinkAbout11A - 2525 SECOND HEARINGREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 3, 2019 TITLE: ORDINANCE SECOND READING: APPROVING DEVELOPMENT AGREEMENT NO. 2018-01 WITH AC 2525 MAIN, LLC AND AMENDMENT APPLICATION NO. 2018-01 TO ESTABLISH SPECIFIC DEVELOPMENT NO. 93 (SD-93) FOR 2525 NORTH MAIN STREET {STRATEGIC PLAN NO. 3,21 /s/Kristine Ridge CITY MANAGER RECOMMENDED ACTION Place ordinances on second reading and adopt. CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 111 Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ �K•�►nl►tri�.ic•� FILE NUMBER DISCUSSION On November 19, 2019, the following ordinances were introduced for first reading and City Council authorized publication of title by a vote of 4-3: ORDINANCE NO. NS-2979 APPROVING DEVELOPMENT AGREEMENT NO. 2018-01 BETWEEN THE CITY OF SANTA ANA AND AC 2525 MAIN, LLC FOR CERTAIN REAL PROPERTY LOCATED AT 2525 NORTH MAIN STREET, AND ORDINANCE NO. NS-2980 APPROVING AMENDMENT APPLICATION NO. 2018-10 REZONING THE PROPERTY LOCATED AT 2525 NORTH MAIN STREET FROM PROFESSIONAL (P) TO SPECIFIC DEVELOPMENT NO. 93 (SD-93) AND ADOPTING SPECIFIC DEVELOPMENT NO. 93 (SD-93). Ordinance No. NS-2979 approves the development agreement, establishing terms for the development agreement and community benefits including construction of improvements to Santiago Park, 24-hour roving security within the Park Santiago Neighborhood and Santiago Park, traffic calming infrastructure, street light enhancements in Park Santiago, local live -work preference, local sourcing and public art. The Council amended the development agreement to require the owner to install and maintain security fencing under the 1-5 Freeway and Broadway overpass and along the bike trail within Santiago Park at a cost not to exceed $150,000 (Exhibit 1). In addition, the Council approved Ordinance No. NS-2980 to change the zoning designation of the property from Professional to Specific Development No. 93 to allow a 256-unit apartment project and a surface parking lot for the Discovery Science Center (Exhibit 2). 11 A-1 Second Reading: Development Agreement No December 3, 2019 Page 2 2018-01/Amendment Application No. 2018-10 As part of the entitlements for the project, on November 19, 2019 the City Council certified Final Environmental Impact Report No. 2018-01 (SCH No. 2018021031), adopted findings of fact pursuant to the California Environmental Quality Act, adopted a Statement of Overriding Considerations, and adopted the Mitigation Monitoring and Reporting Program for the project. Written comments from Newmeyer & Dillion LLP were submitted both before and at the City Council meeting. A response to the comment letters related to the EIR has been prepared for inclusion in the administrative record (Exhibit 3). 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). Minh Thai Executive Director Planning and Building Agency Exhibits: 1. Ordinance No. NS-2979 2. Ordinance No. NS-2980 3. Response to Newmeyer Dillion LLP letters 11 A-2 EXHIBIT 1 LS 11.19.19 ORDINANCE NO. NS-2979 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING DEVELOPMENT AGREEMENT NO. 2018-01 BETWEEN THE CITY OF SANTA ANA AND AC 2525 MAIN, LLC FOR CERTAIN REAL PROPERTY LOCATED AT 2525 NORTH MAIN STREET WITHIN THE CITY OF SANTA ANA PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65864, ET SEQ. THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: WHEREAS, the City of Santa Ana ("City") is authorized pursuant to Government Code Sections 65864 through 65869.5 to enter into development agreements with persons having legal or equitable interests in real property for the purpose of establishing certainty for both City and owner in the development process; and WHEREAS, the City has found that development agreements strengthen the public planning process, encourage private participation in comprehensive planning by providing a greater degree of certainty in that process, reduce the economic costs of development, allow for the orderly planning of public improvements and services, allocate costs to achieve maximum utilization of public and private resources in the development process, and ensure that appropriate measures to enhance and protect the environment are achieved; and WHEREAS, the City enters into this Development Agreement pursuant to the provisions of the Government Code and applicable City policies; and WHEREAS, AC 2525 Main, LLC ("Applicant") seeks to develop the Addington Multi -Family Residential Project ("proposed Project"), originally proposed as a 496-unit multi -family project on a 5.93-acre site at 2525 North Main Street in Santa Ana, California ("Project Site'); and WHEREAS, during the entitlement and environmental review process, and in response to comments and concerns raised by the public and the City's elected officials, the Applicant has proposed modifications to the original proposal; and WHEREAS, the Project as currently proposed now entails, among other things, (1) demolition of the existing 81,172 square foot vacant two-story office building and 442-space surface parking lot on the Project Site; (2) redevelopment of the 5.93-acre site with 444,534 square feet of total development, including 277,281 square feet of residential buildings that would provide 256 for -rent multi -family residential units and a Ordinance NS-2979 Page 1 of 10 #191680 11 A-3 167,253 square foot central parking structure and a 284 space surface level parking lot with residential and commercial parking; (3) approval of Development Agreement No. 2018-01 between the City of Santa Ana ("City") and Applicant; (4) approval of General Plan Amendment No. 2018-06, which would change the Project Site's existing land use designation of Professional & Administration Office (PAO) to District Center (DC); and (5) approval of Amendment Application No. 2018-10, which would change the zoning of the Project Site from Professional (P) to Specific Development No. 93 (SD-93) designation; and WHEREAS, on August 27, 2018, the Planning Commission conducted a work study session to overview the Project and thirty-two (32) verbal comments were received (three (3) in support and twenty-nine (29) in opposition) and nine (9) written comments were received (one (1) in support and eight (8) in opposition); and WHEREAS, on November 26, 2018, the Planning Commission continued a duly noticed public hearing for the project to January 14, 2019 and held a second study session to overview the Project and fifty-eight (58) verbal comments were received (twenty-five (25) in support; thirty-one (31) in opposition and two (2) neutral) and eleven (11) written comments were received (two (2) in support and nine (9) in opposition); and WHEREAS, on January 14, 2019, the Planning Commission conducted a duly noticed public hearing to consider the EIR, Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10 and solicited comments on the EIR. At the meeting, seventy-nine (79) members of the public spoke on the item, thirty (30) speakers supported the project, forty-eight (48) opposed it and one speaker was neutral. After hearing all relevant testimony from staff, the public and the City's consultant team, the Planning Commission voted to recommend that the City Council does not certify the EIR, adopt the findings, the statement of overriding considerations and the mitigation monitoring and reporting program and deny the Project; and WHEREAS, on February 5, 2019, the City Council conducted a duly noticed public hearing to consider the EIR, Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10 and solicited comments on the EIR. At the meeting, sixty-one (61) members of the public spoke on the item, thirty-eight (38) speakers supported the project, twenty (20) speakers opposed it and three (3) speakers were neutral and the public hearing was continued to the next regular adjourned City Council meeting on February 19, 2019; and WHEREAS, on February 19, 2019, the City Council continued to conduct a duly noticed public hearing to consider the EIR, Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10 and solicited comments on the EIR. At the meeting, one hundred and thirty-one (131) members of the public spoke on the item, twenty-six (26) speakers supported the project and one hundred and five (105) speakers opposed it and one hundred and sixty - Ordinance NS-2979 Page 2 of 10 #19168v1 11 A-4 six (166) written comments were received with nine (9) in support and one hundred and fifty-seven (157) in opposition. After hearing all relevant testimony from staff, the public and the City's consultant team, the City Council voted that the applications go back to the Planning Commission for reconsideration after further consultation with the community; and WHEREAS, in June 2019, the applicant submitted a revised plan consisting of development 347 multi -family units (59 dwelling units per acre), with 642 parking spaces (1.85 parking spaces per unit) and parking capacity at 2.0 spaces per unit, within a 4- story residential building wrapped around a five -level parking structure with an amenity deck on the sixth -level, private open space, and redesigned the intersection of Main Street and Walkie Way/Santiago Park Drive to provide access to the project on a 5.93- acre site (the "June Revised Plan"); and WHEREAS, on August 12, 2019, the Planning Commission conducted a duly noticed public hearing to consider the June Revised Plan. At the meeting, seventy-seven (77) members of the expressed opposition; nine (9) supported the project, and one speaker was neutral. In addition, one -hundred (100) written comments were received with six (6) in support and ninety-four (94) in opposition. After hearing all relevant testimony from staff, the public and the City's consultant team, the Planning Commission vote resulted in an impasse; and WHEREAS, in October 2019, in response to comments received the applicant submitted a further revised plan, including redevelopment of the 5.93-acre site with 444,534 square feet of total development, including 277,281 square feet of residential buildings that would provide 256 for -rent multi -family residential units and a 167,253 square foot central parking structure and a 284 space surface level parking lot which also reduced the Project's height, increased the Project's setbacks, and modified the Project entrance ("October Modified Project"); and WHEREAS, on October 28, 2019, the Planning Commission conducted a duly noticed public hearing to consider the EIR, Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10 and solicited comments on the EIR. At the meeting, sixty-two (62) expressed opposition and two (2) in expressed support the project. In addition, ninety-eight (98) individuals submitted comments with ninety-four (94) in opposition and four (4) in support; and WHEREAS, after hearing all relevant testimony from staff, the public and the City's consultant team, the Planning Commission by a vote of 3:2, voted to recommend denial of the project. Since the entitlements require final action by the City Council, the actions were forwarded to the City Council; and WHEREAS, on November 8, 2019, the City gave public notice of a City Council public hearing for consideration of Development Agreement No. 2018-01 by advertising in the Orange County Register, a newspaper of general circulation, and by mailing to owners of property and residents within 500 feet of the Project; and Ordinance NS-2979 Page 3 of 10 #191680 11 A-5 WHEREAS, on November 19, 2019, the City Council conducted a duly noticed public hearing to consider the EIR, Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10 and Environmental Impact Report for the Project, at which hearing members of the public were afforded an opportunity to comment upon Development Agreement No. 2018-01; and WHEREAS, entering into this Development Agreement would provide the City with extraordinary and significant benefits that are of regional significance, relate to existing deficiencies in public facilities, require the owner of 2525 North Main Street to contribute a greater percentage of benefits than would otherwise be required, and represent benefits which would not otherwise be required as part of the development process; and WHEREAS, the Project and the use that the Developer proposes in connection with the Property have been extensively reviewed and considered by the City, and such proposed development and use have been found to accommodate the City's recommendations and suggestions in order to protect the public's interest to enhance the desirability of such proposed development and use. The terms and conditions of this Development Agreement have been found to be fair, just and reasonable, and the City has concluded that the pursuit of the Project will serve the interests of the City; and WHEREAS, the City Council has determined that by entering into the Development Agreement: (i) the City will promote orderly growth and quality development on the Property in accordance with the goals and policies set forth in the General Plan; and, (ii) significant benefits will be created for City residents and the public generally from increased employment, housing, the installation of security fencing under the Broadway overpass and 1-5 freeway overpass for neighborhood safety, and, parks and/or park improvements; and WHEREAS, Environmental Impact Report No. 2018-01 (State Clearinghouse No. 2018021031) for the proposed Project was circulated between August 7, 2018 and October 4, 2018; and WHEREAS, the Environmental Impact Report analyzed the impacts related to the proposed amendment to the zoning map and adoption of Specific Development No. 93; and WHEREAS, the City and Developer have reached mutual agreement and desire to voluntarily enter into the Development Agreement to facilitate development of the Project subject to the conditions and requirements set forth therein; and WHEREAS, the terms and conditions of the Development Agreement have undergone review by the City Council at a publicly noticed hearing and have been found to be fair, just, and reasonable, and consistent with the General Plan; and Ordinance NS-2979 Page 4 of 10 #19168v1 11 A-6 WHEREAS, the proposed Project will not adversely affect the General Plan, as amended by General Plan Amendment No. 2018-06, as is expressly set forth in the Request for City Council Action dated November 19, 2019 and Request for Planning Commission Action dated October 28, 2019, together with all supporting documents, including but not limited to, proposed resolutions, which are incorporated herein by this reference. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: Section 2. CEQA. The requirements of the California Environmental Quality Act have been satisfied in that a Final Environmental Impact Report and Mitigation Monitoring and Reporting Program have been prepared for the Project, including the Development Agreement. Section 3. GENERAL PLAN CONSISTENCY. Pursuant to California Government Code section 65867.5(b) and based on the entire record before the City Council, including all written and oral evidence presented to the City Council, the City Council hereby finds that the Development Agreement is compatible with the objectives, policies, and general plan land use programs specified in the General Plan for the City of Santa Ana in that: A. The City of Santa Ana has officially adopted a General Plan. B. The land uses authorized by the General Plan Amendment, and the General Plan Amendment itself, are compatible with the objectives, policies, general land uses, and programs specified in the General Plan, for the following reasons: i. The existing General Plan land use designation for the project is Professional and Administrative Office (PAO), which allows business and professional offices uses with a floor area ratio of 1.5. In order to facilitate the construction of a multi -family housing project with a maximum floor area ratio of 1.43, the general plan land use designation is proposed to be changed to District Center (DC), which permits high intensity, mixed -use urban villages and pedestrian -oriented experiences that support mid- to high-rise office centers, commercial activity, and cultural activities with floor area ratios ranging from 0.5 to 5.0. Focusing growth within District Centers and along major corridors reduces the pressure for growth in low density residential neighborhoods. ii. The proposed Project will support several goals/objectives and policies of the General Plan. Housing Element (HE) Goal 2: to create diversity of quality housing, affordability levels, and living experiences that accommodate Santa Ana's residents and workforce of all household types, income levels, Ordinance NS-2979 Page 5 of 10 #191680 11 A-7 and age groups to foster an inclusive community. HE Policy 2.2 District Centers. Create high intensity, mixed -use urban villages and pedestrian -oriented experiences that support the mid- to high-rise office centers, commercial activity, and cultural activities in the varied District Centers. HE Policy 2.4 to facilitate diverse types, prices and sizes of housing. Housing Element (HE) Goal 4: to provide adequate rental and ownership housing opportunities and supportive services. The Project will provide 256 rental housing units. The amendment will expand the District Center designation and provide a connection between the existing District Centers to the north and south of the site by providing a residential development that will support a mixed -use environment. Land Use (LU) Element Goal 1: to promote a balance of land uses to address basic community needs. LU Policy 1.2 Maintain and foster a variety of residential land uses in the City. LU Policy 4.3 Support land uses which provide community and regional economic and service benefits. LU Policy 4.4 Encourage the development of projects which promote the City's image as a regional activity center. LU Policy 5.5 Encourage development which is compatible with, and supportive of surrounding land uses. LU Policy 5.7 Anticipate that the intensity of new development will not exceed available infrastructure capacity. Land Use (LU) Element Goal 6: to reduce residential overcrowding to promote public health and safety. The Project is within '/2 mile of existing transportation infrastructure such as the Santa Ana (1-5) freeway and State Route 22 (SR 22) highway which provide vehicular access to the region; the Orange County Transportation Agency bus routes along Main Street which connects to the Santa Ana Regional Transportation Center and the Anaheim Regional Intermodal Center which provides rail service throughout California; and the project is immediately adjacent to Santiago Park and the Santiago Creek Bike Trail which connects to regional bike trails. Main Street, a major urban corridor with cultural, educational, employment and retail destinations such as the Bowers Museum, Discovery Science Center, Main Place Mall and in the City of Orange; the Children's Hospital of Orange County and St. Joseph's Hospital of Orange County. Therefore, the residential development Ordinance NS-2979 Page 6 of 10 #191680 11 A-8 and parking lot would be within close proximity to major employment centers and retail establishments. The Project will also provide an additional housing option for those seeking housing within the jobs rich northern area of the City. The multi -storied development will complement the nearby mid -rise office buildings located along Main Street to the north and west of the site. Although the density will be higher than the adjacent single-family residential neighborhood, the residential use is consistent with the residential uses to the east and south. In addition, multi -family uses are often used in planning and zoning practice to buffer higher intensity uses like commercial or industrial uses from single-family residential uses. Urban Design (UD) Element, Goal 1: to improve the physical appearance of the City through development of districts that project a sense of place, positive community image, and quality environment. UD Policy 1.1. New development and redevelopment must have the highest quality design, materials, finishes and construction. UD Policy 1.11 Visual and physical links between districts, nodes, and significant sites, landmarks and other points of interest, are to be provided in all public and private projects. The residential buildings are of high quality design and include high quality materials such as stone veneer, brick veneers, metal panels, and canopies. The building is designed with courtyards and landscaped areas to reduce the mass of the building. The Project has street frontage on Main Street which is identified as a major path in the General Plan and supports the North Main Street Node described as an opportunity for the establishment of a cohesive, height intensity, mixed activity center with a strong presence in the region. The setback along the east side of the project has been increased to 90 feet and the setback from Edgewood Road has been increased to 134 feet to minimize impacts to the neighboring single-family residences. The new development will include public art and convey a sense of place and contribute to the urban image for the City along a street corridor that includes regional, local and cultural landmarks. The development will be in scale with the buildings along Main Street to the north and west of the site. In addition, the Urban Design Element of the General Plan identifies the site as a Gateway; the Project promotes elements of a Gateway by developing the site with a building with attractive architectural features, projecting a positive image for the City of Santa Ana. C. The proposed Development Agreement will not adversely affect the public health, safety, and welfare in that the Development Agreement will not result in incompatible land uses on adjacent properties, inconsistencies with any General Plan goals or policies, or adverse impacts to the environment. Ordinance NS-2979 Page 7 of 10 #19168v1 11 A-9 Section 4. The Development Agreement, a true and correct copy of which is attached hereto as Exhibit A and incorporated herein by this reference, is hereby recommended for City Council approval. Section 5. The Development Agreement shall not be effective unless and until Resolution No. 2019-_ (Environmental Impact Report No. 2018-01), Resolution No. 2019- ___(General Plan Amendment No. 2018-06) and Ordinance No. NS-2980 (Amendment Application No. 2018-10) are adopted and become effective. If said resolution and Development Agreement are for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does not go into effect for any reason, then the Development Agreement shall be null and void and have no further force and effect. Section 6. INDEMNIFICATION. The Developer shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, and other and proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively "Actions"), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the Project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve, which approval will not be unreasonably withheld, the legal counsel providing the City's defense, and that Developer shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Developer of any Action brought and City shall cooperate with Developer in the defense of the Action. Section 7. SEVERABILITY. If any section, subsection, sentence, clause, phrase or portion of this ordinance for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. Ordinance NS-2979 Page 8 of 10 #191680 11A-10 Section 8 . CITY COUNCIL ACTION. The City Council hereby takes the following action: 1. The City Council approves Development Agreement No. 2018-01, attached hereto and incorporated herein as Exhibit A, as follows: A. The Development Agreement shall not take effect unless and until Environmental Impact Report No. 2018-01 is certified by the City Council, and General Plan Amendment No. 2018-06 and Amendment Application No. 2018-10 are each approved by the City Council. Section 9. EXECUTION OF ORDINANCE. The Mayor shall sign this Ordinance and the Clerk of the Council shall attest and certify to the adoption thereof. ADOPTED this APPROVED AS TO FORM: Sonia R. Carvalho City Attorney B Lisa Storck Assistant City Attorney AYES: day of Councilmembers NOES: Councilmembers ABSTAIN: NOT PRESENT Councilmembers Councilmembers 411W61 Miguel A. Pulido Mayor Ordinance NS-2979 Page 9 of 10 #191680 11A-11 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-2979 to be the original ordinance adopted by the City Council of the City of Santa Ana on 2019 and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana Ordinance NS-2979 Page 10 of 10 #19168v1 11A-12 EXHIBIT A RECORDED AT REQUEST OF AND WHEN RECORDED RETURN TO: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attention: Clerk of the Council Exempt from filing fees pursuant to Government Code §27383 DEVELOPMENT AGREEMENT NO.2018-01 A DEVELOPMENT AGREEMENT BETWEEN CITY OF SANTA ANA and AC 2525 MAIN, A CALIFORNIA LIMITED LIABILITY COMPANY ??39400001 31i319Z13 1 1 A-1 3 DEVELOPMENT AGREEMENT NO. 2018-01 This Development Agreement (hereinafter "Agreement") is entered into as of this _ day of 2019 by and between the City of Santa Ana, California (hereinafter "CITY"), and AC 2525 Main, a California limited liability company (hereinafter "OWNER"): RECITALS: WHEREAS, CITY is authorized to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property, pursuant to Section 65864, et seq. of the Government Code; and WHEREAS, This Agreement constitutes a current exercise of CITY'S police powers to provide predictability to OWNER in the development approval process by vesting the permitted uses, density, intensity of use, and timing and phasing of development consistent with the Development Plan in exchange for OWNER'S commitment to provide significant public benefits to CITY as set forth in Section 4, below. WHEREAS, OWNER has requested CITY to enter into a development agreement and proceedings have been taken in accordance with the rules and regulations of CITY; and WHEREAS, the best interests of the citizens of the City of Santa Ana and the public health, safety and welfare will be served by entering into this Agreement; and WHEREAS, the City Council hereby finds and determines that this Agreement is of major significance because it will enable the CITY to fund much needed capital improvements and provide much needed public services and will therefore also have a major, beneficial economic impact on the City; and WHEREAS, the provision by OWNER of the public benefits allows the CITY to realize significant economic, recreational, park, open space, educational, social and public facilities benefits. The public benefits will advance the interests and meet the needs of Santa Ana residents and visitors to a significantly greater extent than would development of the Property without this Agreement. WHEREAS, the physical effects, if any, of the Project and this Agreement have been analyzed pursuant to California Environmental Quality Act as amended to date and as documented in the Final Environmental Impact Report entitled "Magnolia at the Park Multi -Family Residential Project" (State Clearinghouse House No. 2018021031 and City of Santa Ana DP No. 2017.34); and WHEREAS, this Agreement and the Project are consistent with the Santa Ana General Plan and any specific plan applicable thereto; and WHEREAS, all actions taken and approvals given by CITY have been duly taken or approved in accordance with all applicable legal requirements for notice, public hearings, findings, votes, and other procedural matters; and WHEREAS, development of the Property in accordance with this Agreement will provide substantial benefits to CITY and will further important policies and goals of CITY; and WHEREAS, this Agreement will eliminate uncertainty in planning and provide for the orderly development of the Property, ensure progressive installation of necessary improvements, provide for public services appropriate to the development of the Project, and generally serve the purposes for which ;;31)4MW 31ii31%7.13 11 A-14 development agreements under Section 65864, et seq. of the Government Code are intended; COVENANTS NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: DEFINITIONS AND EXHIBITS. 1.1 Definitions. The following terms when used in this Agreement shall be defined as follows: 1.I .l "Agreement" means this Development Agreement. 1.1.2 "CITY" means the City of Santa Ana, a charter city and California municipal corporation. 1.1.3 "City Council" means the duly elected city council of the City of Santa Ana. 1.1.4 "Commencement Date" means the date the Term of this Agreement commences. 1.1.5 "Development" means the improvement of the Property for the purposes of completing the structures, improvements and facilities comprising the Project including, but not limited to: grading; the construction of infrastructure and public facilities related to the Project whether located within or outside the Property; the construction of buildings and structures; and the installation of landscaping. "Development" does not include the maintenance, repair, reconstruction or redevelopment of any building, structure, improvement or facility after the construction and completion thereof. 1.1.6 "Development Exaction" means any requirement of CITY in connection with or pursuant to any Land Use Regulation or development approval for the dedication of land, the construction of improvements or public facilities, or the payment of fees in order to lessen, offset, mitigate or compensate for the impacts of development on the environment or other public interests. 1.1.7 "Development Impact Fee' a monetary exaction other than a tax or special assessment, whether established for a broad class of projects by legislation of general applicability or imposed on a specific project on an ad hoc basis, that is charged by a local agency to the applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project, but does not include park "in lieu" fees specified in Government Code Section 66477, fees for processing applications for governmental regulatory actions or approvals, or fees collected under development agreements adopted pursuant to Article 25 of the Government Code (commencing with Section 65864) of Chapter 4. 1.1.8 "Development Plan" means the plan for development of the Property as set forth in Exhibit "C". -7- i.3U, 00002 31 i,3187.13 11 A-15 1.1.9 "Discretionary Action(s)" or "Discretionary Approval(s)" means an action which requires the exercise of judgment, deliberation or discretion on the part of the City, including any board, agency, commission or department and any officer or employee thereof, in the process of approving or disapproving Development of the Project, as distinguished from an activity which is defined herein as a Ministerial Pennit or Ministerial Approval. 1.1.10 "Effective Date" means the date the ordinance approving and authorizing this Agreement becomes effective. 1.1.11 "Existing Land Use Regulations" means all ordinances, laws, resolutions, codes, rules, regulations, policies, requirements, guidelines or other actions of City, including but not limited to the provisions set forth in the City's General Plan, Municipal Code which affect, govern or apply to the Development of the Project and use of the Property in a manner consistent with this Agreement, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to the Development of the Property, subject to the terns of this Agreement, whether adopted by the City Council or the voters in an initiative, which are in effect on the Effective Date, pursuant to California Government Code Section 65866. 1.1.12 "Existing Project Approvals" means all Project Approvals approved or issued on or before the Effective Date. 1.1.13 "Land Use Regulations" means all ordinances, resolutions, codes, rules, regulations and official policies of CITY governing the development and use of land, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to the development of the Property. "Land Use Regulations" does not include any CITY ordinance, resolution, code, rule, regulation or official policy, governing: (a) the conduct of businesses, professions, and occupations; (b) taxes (special or general) and assessments; (c) the control and abatement of nuisances; (d) the granting of encroachment permits and the conveyance of rights and interests that provide for the use of or the entry upon public property; (e) the exercise of the power of eminent domain. l .l .14 Rcsen cd. 1.1.15 "OWNER" means the persons and entities listed as OWNER on page 1 of this Agreement and their successors in interest to all or any part of the Property. 5;394(XKK12 31;;3147 13 11 A-16 1.1.16 "Ministerial Approvals(s)," or "Ministerial Act(s)" means any approval or act that is not a Discretionary Approval. 1.1.1 7 "Mortgagee' means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security -device lender, and their successors and assigns. l .1 .18 "Project" means the development of the Property located at 2525 Main Street, Santa Ana, CA, contemplated by the Development Plan as such Plan may be further defined, enhanced or modified pursuant to the provisions of this Agreement. 1.1.19 "Project Approvals" means all site -specific (meaning specifically applicable to the Project only and not generally applicable to some or all other properties within the City) plans, maps, permits, and entitlements to use of every kind and nature that are sought or agreed to in writing by OWNER in its sole and absolute discretion to Develop the Project and that have been approved by the City. Project Approvals include, but are not limited to, general plan amendments, site plans, tentative and final subdivision maps, design guidelines, variances, zoning designations, conditional use permits, grading, building, and other similar permits, the site -specific provisions of general plans, environmental assessments, including environmental impact reports and negative declarations. 1 .1 .20 "Property" means the real property described on Exhibit "A" and shown on Exhibit "B" to this Agreement. 1.1.21 "Public Benefit" refers to those benefits provided to the CITY and the community by OWNER pursuant to Section 4 below. 1.1.22 "Reservation of Rights" means the rights and authority excepted from the assurances and rights provided to OWNER under this Agreement and reserved to CITY under Section 3.3 of this Agreement. 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: Exhibit "A" — Legal Description of the Property Exhibit "B" — Map showing Property and its location Exhibit "C" — Development Plan Exhibit "D" — Development Impact Fees Exhibit "E" - Development Impact Fee Credits Exhibit " F" — Santiago Park Access Rights Exhibit "G" — Santiago Park Improvements Exhibit "H"— Park Santiago Patrol Area Map Exhibit "I" — Conditions of Discretionary Approvals -4- 55394.00002 31553187_13 1 1 A-1 7 Exhibit "J"— Safety Fencing 2. GENERAL PROVISIONS. 2.1 Binding Effect of Agreement. The Property is hereby made subject to this Agreement. Development of the Property is hereby authorized and shall be carried out in accordance with the terms of the Development Plan and this Agreement. 2.2 Ownership of Property. OWNER represents and covenants that it is the owner of the fee simple title to, or has an equitable interest in, the Property or a portion thereof. 2.3 City Council Findings. The City Council finds that: 2.3.1 This Agreement is consistent with the CITY'S General Plan. 2.3.2 This Agreement ensures a desirable and functional community environment, provides effective and efficient development of public facilities, infrastructure, and services appropriate for the development of the Project, enhances effective utilization of resources within the City. 2.3.3 This Agreement provides public benefits beyond those which are necessary to mitigate the development of the Project. 2.3.4 This Agreement strengthens the public planning process, encourages private participation in comprehensive planning and reduces costs of development and government. 2.3.5 The best interests of the citizens of the CITY and the public health, safety, and welfare will be served by entering into this Agreement. 2.4 Tenn. The term of this Agreement shall commence on the date (the "Commencement Date") that is the Effective Date, and shall continue for a period of four (4) years thereafter, unless this tern is modified or extended pursuant to the provisions of this Agreement. Thereafter, the OWNER shall have no vested right under this Agreement, regardless of whether or not OWNER has paid any Development Impact Fee. 2.4.1 The Term of this Agreement may be extended upon the mutual written agreement of the City's City Manager and the OWNER for no more than two (2) additional consecutive one (1) year periods ("Extension Term"). Notwithstanding the immediately preceding sentence or any other part of this Agreement, in no event shall the Development Agreement Period exceed 2160 consecutive calendar days from the Effective Date. Prior to the City granting each Extension Term: (a) OWNER shall demonstrate to the City Manager's reasonable satisfaction that OWNER has and will continue to diligently pursue the development of the Project; -5- ;;,ya t»llu,] I I i53I 7.' 3 11 A-18 (b) OWNER shall pay to the City Fifty Thousand Dollars ($50,000) to partially compensate the City for the significant lost revenue to be received by the City had the Project been completed. 2.4.2 If any party other than OWNER initiates litigation that challenges the Project or the Existing Project Approvals, the OWNER will have the right to toll commencement of the Tenn and any obligations of OWNER under the Agreement during the period of such litigation. The tolling shall commence upon receipt by the City of written notice from OWNER invoking this right to tolling. The tolling shall terminate when (1) a final order is issued in said litigation that upholds the Project and the Existing Project Approvals or (2) the litigation is dismissed with prejudice by all Parties; whichever occurs first. 2.5 Assignment. 2.5.1 Right to Assign. OWNER shall have the right to sell, transfer or assign the Property in whole or in part (provided that no such partial transfer shall violate the Subdivision Map Act, Government Code Section 66410, et seq.) to any person, partnership, joint venture, firm or corporation at any time during the term of this Agreement; provided, however, that any such sale, transfer or assignment shall include the assignment and assumption of ft,:kghts, duties and obligations arising under or from this Agreement and be made in strict compliance with the following conditions precedent: (a) No sale, transfer or assignment of any right or interest under this Agreement shall be made unless made together with the sale, transfer or assignment of all or a part of the Property to which such rights or interests apply. Any sale, transfer or assignment shall require the consent of the City which shall not be unreasonably withheld, conditioned, or delayed. (b) Concurrent with any such sale, transfer or assignment, OWNER shall notify CITY, in writing, of such sale, transfer or assignment and shall provide CITY with an executed agreement ("Assignment and Assumption Agreement"), in a form reasonably acceptable to CITY, by the purchaser, transferee or assignee and providing therein that the purchaser, transferee or assignee expressly and unconditionally assumes all the duties, obligations, agreements, covenants, waivers of OWNER under this Agreement, including, without limitation, the covenants not to sue and waivers contained in Sections 7.2 and 8.4 hereof: (c) OWNER shall provide CITY with such information reasonably requested by CITY that demonstrates such transferee or assignee has sufficient development experience and financial capability to complete the Project and perform all obligations assumed. (d) Any sale, transfer or assignment not made in strict compliance with the foregoing conditions shall constitute default by Owner under this Agreement. Notwithstanding the failure of any purchaser, transferee or assignee to execute the agreement required by Paragraph (b) of this Subsection 2.5.1, the burdens of this Agreement shall be binding upon such purchaser, transferee or assignee, but the benefits of this Agreement shall not inure to such purchaser, transferee or assignee until and unless such agreement is executed. (e) The Executive Director for the Planning and Building Agency shall have the administrative authority to determine that OWNER has complied with the above conditions. Such determination shall not be unreasonably withheld or delayed. -6- 5539400002;Iii,18713 11A-19 2.5.2 Release of Transferring Owner. Notwithstanding any sale, transfer or assignment, a transferring OWNER shall continue to be obligated under this Agreement with respect to the transferred Property or any transferred portion thereof, unless such transferring OWNER is given a release in writing by CITY, which release shall be provided by CITY upon the full satisfaction by such transferring OWNER of the following conditions: (a) OWNER no longer has a legal or equitable interest in all or any part of the Property subject to the transfer. (b) OWNER is not then in default under this Agreement. (c) OWNER has provided CITY with the notice and executed agreement required under Paragraph (b) of Subsection 2.5. l above. (d) The purchaser, transferee or assignee provides CITY with security equivalent to any security previously provided by OWNER to secure perfonnance of its obligations hereunder. 2.5.3 Subsequent Assignment. Any subsequent sale, transfer or assignment after an initial sale, transfer or assignment shall be made only in accordance with and subject to the terms and conditions of this Section. 2.5.4 Utilities. The Project shall be connected to all utilities necessary to provide adequate water, sewer, gas, electric, and other utility service to the Project, prior to the issuance of final approval for occupancy or the certificate of occupancy for any portion of the Project. 2.5.5 Sale to Public and Completion of Construction. The provisions of Subsection 2.5.1 shall not apply to the sale or lease (for a period longer than one year) of any lot that has been finally subdivided and is individually (and not in "bulk") sold or leased to a member of the public or other ultimate user. This Agreement shall tenninate with respect to any lot and such lot shall be released and no longer be subject to this Agreement without the execution or recordation of any further document upon satisfaction of both of the following conditions: (a) The lot has been finally subdivided and individually (and not in "bulk") sold or leased (for a period longer than one year) to a member of the public or other ultimate user; and (b) City final approval for occupancy or the certificate of occupancy has been issued for a building on the lot, and the fees for such lot set forth in this Agreement have been paid. 2.6 Amendment or Cancellation of Agreement. This Agreement may be amended or canceled in whole or in part only by written consent of all parties in the manner provided for in Government Code Section 65868. This provision shall not limit any remedy of CITY or OWNER as provided by this Agreement. 2.7 Termination. This Agreement shall be deemed tenninated and of no further effect upon the occurrence of any of the following events: (a) Expiration of the stated Tenn of this Agreement as set forth in Section 2.4. -7- iiW4O1N10131553ISTB 11 A-20 (b) Entry of a final judgment setting aside, voiding or annulling the adoption of the ordinance approving this Agreement. (c) The adoption of a referendum measure overriding or repealing the ordinance approving this Agreement. (1) Within five (5) days of receipt of a referendum petition by the CITY, OWNER shall deposit Fifty Thousand Dollars ($50,000) ("Referendum Deposit") with the CITY. CITY may use the funds to pay any and all costs associated with the said referendum measure. If at any time the Referendum Deposit account has Five Thousand Dollars ($5000) or less remaining, Developer shall, within three (3) days of receiving notice from the CITY, deposit with the City additional funds as requested by the CITY to cover all costs and expenses associated with processing the referendum and holding the related election. Following certification of the election results, any funds remaining in the Referendum Deposit account shall be returned to the OWNER. (d) Completion of the Project in accordance with the terms of this Agreement including issuance of all required occupancy permits, final approval for occupancy by the City, and acceptance by CITY or applicable public agency of all required dedications. (e) Termination of this Agreement shall not constitute termination of any other land use entitlements approved for the Property. Upon the termination of this Agreement, no party shall have any further right or obligation hereunder except with respect to any obligation to have been performed prior to such termination or with respect to any default in the performance of the provisions of this Agreement that has occurred prior to such termination or with respect to any obligations that are specifically set forth as surviving this Agreement. Upon such termination, any Development Impact Fees paid by OWNER to CITY for residential units on which construction has not yet begun shall be refunded to OWNER by CITY. 2.8 Notices. (a) As used in this Agreement, "notice" includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. (b) All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or (it) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or (iii) on the date of delivery shown in the records of the telegraph company after transmission by telegraph to the recipient named below. All notices shall be addressed as follows: If to CITY: City Clerk 20 Civic Center Plaza, 8"' Floor PO Box 1988 M-30 Santa Ana, Ca 82702 Copy to: City Manager City Attorney -8- ii19d_000U' 11;51IV 11 11 A-21 Executive Director of Planning and Building Agency If to OWNER: AC 2525 MAIN, LLC 240 Newport Center Drive, Suite 200 Newport Beach, CA. 92660 Attn: Manager Telephone: ( Facsimile: [ (c) Either party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change. 3. DEVELOPMENT OF THE PROPERTY. 3.1 Rights to Develop. Subject to the terms of this Agreement including the Reservation of Rights, OWNER shall have a vested right to develop the Property in accordance with, and to the extent of, this Agreement. Except as expressly provided otherwise herein, the Project shall remain subject to all Existing Land Use Regulations and Development Approvals. Except as otherwise provided in this Agreement, and notwithstanding the authority of the CITY to further revise the Land Use Regulations pursuant to Government Code section 65866, the permitted uses of the Property, the density and intensity of use, the maximum height and size of proposed buildings, and provisions for reservation and dedication of land for public purposes shall be those set forth in the Land Existing Use Regulations and Development Approvals. OWNER shall comply with all mitigation measures required to be undertaken pursuant to any document prepared in compliance with the California Environmental Quality Act with respect to the Project. 3.2 Effect of Agreement on Land Use Regulations. Except as otherwise provided under the terms of this Agreement including the Reservation of Rights, the rules, regulations and official policies governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement and construction standards and specifications applicable to development of the Property shall be the Existing Land Use Regulations and Development Approvals. In connection with any subsequently adopted Project Approvals and except as specifically provided otherwise herein, CITY may exercise its discretion in accordance with the Land Use Regulations then in effect, as provided by this Agreement, including, but not limited to, the Reservation of Rights. CITY shall accept for processing, review and action all applications for subsequent Project Approvals, and such applications shall be processed in the same manner and the CITY shall exercise its discretion, when required or authorized to do so, to the same extent it would otherwise be entitled in the absence of this Agreement. 3.3 Reservation of Rights. _9_ ?,39J.IIIIINI2 315,3197,11 11 A-22 3.3.1 Limitations, Reservations and Exceptions. Notwithstanding any other provision of this Agreement, the following regulations shall apply to the development of the Property: (a) Processing fees and charges of every kind and nature imposed by CITY to cover the actual costs to CITY of processing applications for Development Approvals or for monitoring compliance with any Development Approvals granted or issued. (b) Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure. (c) Regulations, policies and rules governing engineering and construction standards and specifications applicable to public and private improvements, including, without limitation, all uniform codes adopted by the City and any local amendments to those codes adopted by the CITY, including, without limitation, the CITY's Building Code, Plumbing Code, Mechanical Code, Electrical Code, and Grading Ordinance. (d) Regulations imposing Development Exactions; provided, however, that no such Development Exaction adopted after the Effective Date shall apply to development of the Property under this Agreement unless agreed to by OWNER. In the event any such subsequently adopted Development Exaction, agreed to by OWNER, fulfills the same purposes, in whole or in part, as the fees set forth in Section 4 of this Agreement, CITY shall allow a credit against such subsequently adopted Development Exaction For the fees paid under Section 4 of this Agreement to the extent such fees fulfill the same purposes. (e) Regulations that may be in material conflict with this Agreement but that are reasonably necessary to protect the residents of the project or the immediate community from a condition perilous to their health or safety. To the extent possible, any such regulations shall be applied and construed so as to provide OWNER with the rights and assurances provided under this Agreement. (f) Regulations that are not in material conflict with this Agreement or the Development Plan. Any regulation, whether adopted by initiative or otherwise, limiting the rate or timing of development of the Property shall be deemed to materially conflict with the Development Plan and shall therefore not be applicable to the development of the Property. (g) Regulations that are in material conflict with the Development Plan; provided OWNER has given written consent to the application of such regulations to development of that Property in which the OWNER has a legal or equitable interest. (h) Regulations that impose, levy, alter or amend fees, or charges relating to consumers or end users, including, without limitation, trash can placement, service charges and limitations on vehicle parking. (i) Regulations of other public agencies, including Development Impact Fees adopted or imposed by such other public agencies, although collected by CITY. 3.3.2 Subsequent Project Approvals. This Agreement shall not prevent CITY, in acting on subsequent Project Approvals and to the same extent it would otherwise be authorized to do so absent this Agreement, from applying subsequently adopted or amended Land Use Regulations that do not materially conflict with this Agreement. -10- 53394 A)OU'- 31553187,13 11 A-23 3.3.3 Modification or Suspension by State or Federal Law. In the event that State, County or Federal laws or regulations, enacted after the Effective Date of this Agreement, prevent or preclude compliance with one or more of the provisions of this Agreement, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations; provided, however, that this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such remaining provisions impractical to enforce. 3.3.4 Intent. The parties acknowledge and agree that CITY is restricted in its authority to limit certain aspects of its police power by contract and that the foregoing limitations, reservations and exceptions are intended to reserve to CITY all of its police power that cannot be or are not expressly so limited. This Agreement shall be construed, contrary to its stated terms if necessary, to reserve to CITY all such power and authority that cannot be or is not by this Agreement's express terms so restricted. 3.4 Regulation by Other Public Agencies. It is acknowledged by the parties that other public agencies not within the control of CITY may possess authority to regulate aspects of the development of the Property separately from or jointly with CITY and this Agreement does not limit the authority of such other public agencies. 3.5 Timing of Development. Because the Cali forma Supreme Court held in Pardee Construction Co. v. City of Camarillo, 37 Cal. 3d 465 (1984), that the failure of the parties in that case to provide for the timing of development resulted in a later - adopted initiative restricting the timing of development to prevail over the parties' agreement, it is the specific intent of the Parties to provide for the timing of the Project in this Agreement. To do so, the Parties acknowledge and provide that OWNER shall have the right, but not the obligation, to complete the Project in such order, at such rate, at such times, and in as many development phases and sub -phases as Owner deems appropriate in its sole subjective business judgment 3.6 Conditions, Covenants and Restrictions 3.6.1 OWNER shall have the ability to reserve and record such covenants, conditions, and restrictions (CC&Rs) against the Property as OWNER deems appropriate, in its sole and absolute discretion. Such CC&Rs may not conflict with this Agreement or the General Plan. Before recording any CC&Rs, OWNER shall provide a copy of the CC&Rs to the CITY for review and approval by the City Attorney, whose approval shall not be unreasonably withheld. 3.6 2 The City Attorney's review shall be limited to determining if the CC&Rs substantially comply with this Agreement and Project's conditions of approval as approved by the City Council and that the CC&Rs incorporate and reference the following information regarding the approved development: (a) The Parking Management Plan (b) The Overcrowding Mitigation Implementation Plan (c) The Property Maintenance Plan ;;304 YYW l l i;1187. i 1 11 A-24 (d) The project Conditions of Approval 3.6.3 Within thirty (30) days after receiving a copy of the proposed CC&Rs from OWNER, the City Attorney shall provide OWNER with either (i) a statement that the CC&Rs comply with this Agreement ("CC&R Approval") or (ii) written comments identifying each aspect of the CC&Rs which the City Attorney believes not to be in compliance with this Agreement (a "Statement of Non -Compliance"). If the City Attorney fails to provide OWNER with either CC&R Approval or a Statement of Non -Compliance within thirty (30) days following a written request by OWNER, City shall be deemed to have approved the CC&Rs and OWNER may record the CC&Rs against the Property. If the City Attorney provides a Statement of Non -Compliance, OWNER shall have thirty (30) days in which to respond to the Statement of Non -Compliance. Upon submittal of OWNER'S response, the procedure described above for the initial submittal and City Attorney review of proposed CC&Rs shall again be followed. This procedure shall be followed until OWNER either (1) receives CC&R Approval, (2) submits the compliance issues to binding arbitration pursuant to the rules of the American Arbitration Association, (3) files an action for declaratory relief in Orange County Superior Court seeking a judicial determination of the compliance of the proposed CC&Rs, or (4) agreement is otherwise reached between the Parties allowing for the recording of the CC&Rs. The CC&Rs may run with the land and bind OWNER'S successors and assigns. Except as provided above, any dispute between the Parties regarding the CITY'S approval or rejection of the CC&Rs shall be subject to immediate and binding arbitration pursuant to the rules of the American Arbitration Association. 3.7 Moratoria. Except as specifically set forth in this section, City agrees that no moratorium or other similar limitation (whether relating to the rate, timing, or sequencing of the development of the Project or any part thereof and whether or not enacted by local initiative or otherwise) affecting subdivision/tract maps, grading or building permits, occupancy certificates, or other entitlements approved, issued, or granted within the City, after the Effective Date of this Agreement, shall apply to the Project. OWNER acknowledges and agrees that the provisions hereof shall not preclude the application to the Project of a moratorium or other similar limitation (of the type described in the preceding sentence) enacted in order to protect an imminent threat to the public health or safety. 3.8 Development Agreement/Project Approvals. In the event of any inconsistency between any Existing Land Use Regulation and a Project Approval, the provisions of the Project Approval shall control. In the event of any inconsistency between any Existing Land Use Regulation, any Project Approval and this Agreement, the provisions of this Agreement shall control. 3.9 LEED Certification. OWNER shall design and construct the building to achieve not less than a Leadership in Energy and Environmental Design ("LEED") Silver Standard equivalent. OWNER shall focus design efforts to ensure the Project meets the environmental needs of the community, as well as, the Project, itself, maintains an eco-friendly design. It is anticipated the Project will include, but is not limited to, drought tolerant landscaping and irrigation systems, solar and EV systems, and reclaimed water. -I2- 55394,00007 3155137 13 11 A-2 5 4. PUBLIC BENEFITS. 4.1 Intent. The Parties acknowledge and agree that development of the Property will result in substantial public needs that will not be fully met by the Development Plan and further acknowledge and agree that this Agreement confers substantial private benefits on OWNER that should be balanced by commensurate public benefits. 4.2 Public Benefits. OWNER has committed by this Agreement to contribute to the acquisition, construction and maintenance of certain "Public Benefits" as provided below 4.2.1 CITY Facilities. OWNER shall provide the following benefits towards the acquisition, construction and maintenance of the CITY Facilities, as follows: (a) Public Art. OWNER shall create, install, and maintain a public art project with a value equivalent to one-half of one percent (0.5%) of the total construction cost of the Project. Total construction cost shall mean all design, engineering and construction costs. OWNER shall prepare and submit to the City, no later than one hundred eighty (180) days before final approval for occupancy or the issuance of a certificate of occupancy, a public art plan that is consistent with Chapter 15 of the Citywide Design Guidelines, Public Art Guidelines. The approved art shall be installed prior to final approval for occupancy or the issuance of a Certificate of Occupancy for the Project. (b) Santiago Park Improvement Construction. At the City's determination, Owner shall manage and construct the Santiago Park Phase II Park Improvements ("Park Improvements") subject to review and approval by the City. The Park Improvements shall include, but are not limited to design, engineering, permitting, construction, and installation of irrigation, landscaping, security lighting and bike trail enhancement, as described in more detail on Exhibit G. The total expenditure for the Park Improvements shall not exceed One Million Four Hundred Thousand Dollars ($1,400,000) ("Phase II Expenditure"). The State Coastal Conservancy has notified the City that it has allocated up to Two Hundred Fifty Thousand Dollars ($250,000) for the Design of the Park Improvements. If and when the City receives the funds, in the event that the Design work for the Park Improvements is less than Two Hundred Fifty Thousand Dollars ($250,000), the City at its sole discretion, may make a request to State Coastal Conservancy, and if approved by the Agency, the City will apply the excess grant funds to construction as part of the City's contribution to the Park Improvements. Owner shall be responsible for all aspects of the Park Improvements. Prior to issuance of permits, City shall have the rights to review, approve, and accept the design and material quality of the Park Improvements. Owner shall complete the Park Improvements in a timely fashion, by the earlier of 36 months following issuance by the City the first building permit for the construction of the Development, or prior to issuance of final approval of occupancy for the Development. Following completion of the Park Improvements, and no later than three years from the issuance of a notice of acceptance of Park Improvements, City shall reimburse Owner an amount equal to fifty percent (50%) of the total cost of the Park Improvements, up to Seven Hundred Thousand Dollars -13- SSI'M,000211SSIt3 [} 11A-26 (S700,000) (`Reimbursement Amount") for actual, third party costs associated with the Park Improvements. IF DETERMINED TO BE APPLICABLE BY THE CITY, OWNER HEREBY ACKNOWLEDGES, CONSENTS AND AGREES THAT THE PARK IMPROVEMENTS ARE A PUBLIC WORK PURSUANT TO LABOR CODE SECTION 1720 ET. SEQ. AND THAT LABORERS RESPONSIBLE FOR THE CONSTRUCTION, INSTALLATION OR OPERATION OF THE PARK IMPROVEMENTS MUST BE PAID THE PREVAILING PER DIEM WAGE RATE FOR THEIR LABOR CLASSIFICATION, AS DETERMINED BY THE STATE OF CALIFORNIA, PURSUANT TO LABOR CODE SECTIONS 1720, ET SEQ. THE OWNER AGREES WITH THE CITY THAT THE OWNER SHALL ASSUME THE RESPONSIBILITY AND BE SOLELY RESPONSIBLE FOR THE PAYMENT OF LABORERS EMPLOYED RELATIVE TO THE CONSTRUCTION, INSTALLATION OR OPERATION OF THE PROJECT AT THE PREVAILING PER DIEM WAGE RATE FOR THEIR LABOR CLASSIFICATION, AS DETERMINED BY THE STATE OF CALIFORNIA, PURSUANT TO LABOR CODE SECTIONS 1720, ET SEQ. THE DEVELOPER, ON BEHALF OF ITSELF, ITS SUCCESSORS, AND ASSIGNS, WAIVES AND RELEASES THE CITY FROM ANY RIGHT OF ACTION THAT MAY BE AVAILABLE TO ANY OF THEM PURSUANT TO LABOR CODE SECTION 1781. THE DEVELOPER ACKNOWLEDGES THE PROTECTIONS OF CIVIL CODE SECTION 1542 RELATIVE TO THE WAIVER AND RELEASE CONTAINED IN THIS SECTION 5.8, WHICH READS AS FOLLOWS: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED IIIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY. BY INITIALING BELOW, THE OWNER KNOWINGLY AND VOLUNTARILY WAIVES THE PROVISIONS OF SECTION 1542 SOLELY IN CONNECTION WITH THE WAIVERS AND RELEASES OF THISX ION 5.8: eloper's Initials ADDITIONALLY, THE DEVELOPER SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS THE CITY, PURSUANT TO SECTION 8 AGAINST ANY CLAIMS PURSUANT TO LABOR CODE SECTION 1720 ET. SEQ., INCLUDING BUT NOT LIMITED TO SECTION 1781, ARISING FROM THIS AGREEMENT OR THE CONSTRUCTION, INSTALLATION OR OPERATION OF ALL OR ANY PORTION OF THE PARKIMPROVEMENTS_ i_i394.00002\t 1553187,13 (c) Park Santiago Neighborhood Benefits. OWNER has met with residents of Park Santiago and has agreed to provide the following amenities: -14- 11 A-27 (1) Limited access to onsite amenities in a manner to be determined by OWNER as reasonably acceptable to Planning and Building Agency Executive Director. (2) Security patrol in the residential neighborhood and Santiago Park a. Patrol area: Project, Park Santiago and Park Santiago area as depicted on attached Exhibit "H" b. Type of patrol: Periodic roving security twenty four (24) hours a day. C. Term: 55 years subject to annual review during which review it may be determined that such term shall end earlier. (d) Park Santiago Public Improvements and Traffic Calming. Subject to the approval by the Executive Director of Public Works Agency and the Executive Director of Planning and Building Agency and meeting City design specifications and standards, OWNER shall design and construct the public improvements identified below prior to final approval for occupancy or the issuance of a Certificate of Occupancy. Owner shall be solely responsible for all aspects of the public improvements including, but not limited to, the analysis, design, engineering, construction and inspection/administration of: (1) Santiago Park neighborhood improvements at up to three locations on Edgewood and/or Bush Street to achieve traffic calming. Improvements may be based on input from the Santiago Park Neighborhood Association and may include, but not be limited to, bulb -outs, traffic circles and medians within the neighborhood streets. (2) Street lighting enhancements by replacing all existing non LED light and/or fixture with LED light and/or fixture throughout the Santiago Park Neighborhood. (3) A street light at the Santiago Park Drive / Main Street intersection. (4) Decorative concrete pavement within the intersection of Main Street/Walkie Way and Main Street/Santiago Park Drive. 4.2.2 R. Safety Fencing. OWNER shall, at its sole cost and expense, in an amount not to exceed $150,000.00, install and maintain security fencing under the I-5 freeway and Broadway overpass for neighborhood safety (see Exhibit J - Safety Fencing). City shall approve the design and materials for such security fencing prior to installation. 4.2.3 Graffiti Removal. OWNER shall also install and maintain graffiti protection on new surfaces and shall, within 24 hours of discovery of graffiti, cause it to be removed and associated restorations completed throughout the Project. 4.3 Development Impact Fees. 4.3.1 Amount of Fee. The Development Impact Fees set forth in Exhibit "D" shall be charged to the Project. These fee amounts are estimated and will be subject to change based on the fee rate applicable at the time of issuance of the Building Permit. -15- i 794 W002 31; 53187.13, 11 A-2 8 4.3.2 Time of Payment. The fees required pursuant to Subsection 4.3.1 shall be paid to CITY prior to the issuance of building permits for each residential unit. No fees shall be payable for building permits issued prior to the Effective Date of this Agreement, but the fees required pursuant to Subsection 4.3.1 shall be paid prior to the re -issuance or extension of any building permit for a residential unit for which such fees have not previously been paid. 4.3.3 Fee Credits. OWNER shall be entitled to credit against the fees required pursuant to Subsection 4.2.1 for the dedication of land, the construction of improvements or the payment of fees as specifically set forth in Exhibit "E. 4.3.4 Future Development Impact Fee Program Changes. The Parties hereby agree that, in addition to the Development Impact Fees included in Exhibit `D", the Project shall be subject to any increase in fees, or amendment or alteration, of Development Impact Fee programs in effect on the Effective Date. 4.3.5 Prepayment. In no event shall the prepayment of any Development Impact Fees required hereunder establish a vested right on the part of OWNER or any other owner of the Property or any person or entity with an interest therein to develop the Project or the Property following the expiration, cancellation or termination of the Term of this Agreement. Following the expiration, cancellation or termination of this Agreement, all Development Impact Fees then in effect shall be applicable to the Project and Property notwithstanding any provision of this Agreement and notwithstanding the prepayment of the Development Impact Fees set forth in Exhibit `D", any increase or amendment of any Development Impact Fee, or any combination thereof. Nothing contained in this Subsection 4.3.5 shall be construed as limiting the right of OWNER to a credit against any Development Impact Fees as set forth in Section 4.3.3 hereof. 4.4 Dedication of On -Site Easements and Riehts of Way. OWNER shall dedicate to CITY all on -site rights of way and easements deemed necessary for public improvements as indicated on the approved Development Plan for the Project within 15 days of receipt of written demand from CITY. 4.5 Timine of Construction of Off -Site Infrastructure. Approval of any issuance of final approval for occupancy on the Property shall be conditioned upon CITY's determination, in its sole discretion, that sufficient progress is being made on construction of off -site infrastructure serving development of OWNER's Property. 4.6 Santiago Park Access. OWNER shall grant the City a public use, access, ingress, and egress easement in perpetuity on and within the Development to provide public access to Santiago Park. The scope, location, and all aspects of the easement shall meet the requirements reasonably set forth by the City as determined by the Executive Directors of the Parks, Recreation and Community Services, Public Works, and the Planning and Building Agency and consistent with the conceptual design as described/depicted on Exhibit F 4.6.1 Owner shall be responsible for the ongoing maintenance of the easement area. The easement area shall be maintained consistent with City standards and to City's reasonable satisfaction at all times. 4.6.2 Reserved. 16- 4.6.3 Reserved. 4.7 Housing Opportunity Ordinance. Project shall comply with the requirements of the Housing Opportunity Ordinance (the "HOO") in effect on the Effective Date. 4.8 Overcrowding Mitigation Implementation Plan. The City of Santa Ana has one of the highest average number of people per household in the nation at 4.34 people per household. Owner commits to limit occupancy of the residential units within the project site to levels in compliance with local, state and federal fair housing standards. Prior to applying to the City for occupancy permit, the Owner shall submit to the City an Overcrowding Mitigating Implementation Plan. Prior to changing or revising the implementation plan, Owner shall provide a 60-day minimum written notice to the City Community Development Agency and the Planning and Building Safety Agency informing of any proposed changes or revisions. 4.9 Local Live -Work Preference. Prior to issuance of any Building Permits, OWNER shall develop and submit to the City Manager or his/her designee, a local live -work plan for the Project targeting, to the extent feasible and consistent with state and federal fair housing laws, a preference or priority for persons who currently either live or work in the City of Santa Ana for the rental of units at the Project. 4.10 Local Sourcing Plan. Developer agrees to make a good faith effort to encourage contractors and suppliers to hire and procure locally, to the extent that it is cost effective and does not delay the overall project development schedule. Prior to issuance of any Building Permits, Developer shall develop and submit to the Planning Agency (the "PBA") a local sourcing plan for the Project targeting, to the extent feasible, the hiring of quatif3ed workers, construction contractors, or the purchasing of goods locally within the City of Santa Ana. The plan must be reviewed in a timely manner and approved by the PBA and be implemented for the construction of the project prior to issuance of any Building Permits. Such approval shall not be unreasonably withheld. 5. FINANCING & MAINTENANCE OF PUBLIC IMPROVEMENTS AND SERVICES OWNER may propose, and if requested by CITY shall cooperate in, the formation of any special assessment district, community facilities district or alternate financing mechanism to pay for the construction and/or maintenance and operation of public infrastructure facilities required as part of the Development Plan by providing up to $50,000 toward the costs of CITY in preparing a study to determine the need for any such district or alternate financing mechanism. To the extent any such district or other financing entity is formed and sells bonds in order to finance such reimbursements, OWNER may be reimbursed to the extent that OWNER spends funds or dedicates land for the establishment of public facilities. If such a district or other financing entity is proposed OWNER agrees not to oppose such formation. Notwithstanding the foregoing, it is acknowledged and agreed by the parties that nothing contained in this Agreement shall be construed as requiring CITY or the City Council to form any such district or other financing entity or to issue and sell bonds. In addition, it is acknowledged and agreed by the parties that nothing contained in this Agreement shall be construed as requiring OWNER to vote in support of or annex to such district or other financing entity. It shall be the sole right of OWNER to determine whether to be in or out of any such district or other financing entity. 17- 5,3oa W 002 31??3 i 97.1 s 11 A-30 6. REVIEW FOR COMPLIANCE. 6.1 Periodic Review. The CITY shall review this Agreement annually, on or before the anniversary of the Effective Date, in order to ascertain the compliance by OWNER with the terms of the Agreement. OWNER shall submit an Annual Monitoring Report, in a form acceptable to the City Manager, within thirty (30) days after written notice from the City Manager. The Annual Monitoring Report shall be accompanied by an annual review and administration fee sufficient to defray the estimated costs of review and administration of the Agreement during the succeeding year. The amount of the annual review and administration fee shall be set annually by resolution of the City Council. 6.2 Special Review. The City Council may order a special review of compliance with this Agreement at any time. The City Manager, or his or her designee, shall conduct such special reviews. 6.3 Procedure. (a) During either a periodic review or a special review, OWNER shall be required to demonstrate good faith compliance with the terms of the Agreement. The burden of proof on this issue shall be on OWNER. (b) Upon completion of a periodic review or a special review, the City Manager, or his or her designee, shall submit a report to the Planning Commission setting forth the evidence concerning good faith compliance by OWNER with the terms of this Agreement and his or her recommended finding on that issue. (c) If the Planning Commission finds and determines on the basis of substantial evidence that OWNER has complied in good faith with the terms and conditions of this Agreement, the review shall be concluded. (d) If the Planning Commission finds and determines on the basis of substantial evidence that OWNER has not complied in good faith with the terms and conditions of this Agreement, the Commission shall providewritten noticeto OWNER of such findings setting forth the nature of the problem and the actions, if any, required by OWNER to cure such problem and, where the problem can be cured, OWNER has failed to take such actions and cure such problem within thirty (30) days after the effective date of such notice or, in the event that such problem cannot be cured within such thirty (30) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such problem within such thirty (30) day period and to diligently proceed to complete such actions and cure such problem. If OWNER fails to take the necessary actions, the Commission may recommend to the City Council modification or termination of this Agreement. OWNER may appeal a Planning Commission determination pursuant to this Section 6.3(d) pursuant to CITY's rules for consideration of appeals in zoning matters then in effect. Notice of default as provided under Section 7.3 of this Agreement shall be given to OWNER prior to or concurrent with proceedings under Section 6.4 and Section 6.5. 6.4 Proceedings Upon Modification or Termination. If, upon a finding under Section 6.3, CITY determines to proceed with modification or termination of this Agreement, CITY shall give written notice to OWNER of its intention so to do. The notice shall be given at least ten (10) calendar days prior to the scheduled hearing and shall contain: a 55394.00002 31553197.13 11 A-31 (a) The time and place of the hearing; (b) A statement as to whether or not CITY proposes to terminate or to modify the Agreement; and, (c) Such other information that the CITY considers necessary to inform OWNER of the nature of the proceeding. 6.5 Hearing on Modification or Termination. At the time and place set for the hearing on modification or termination, OWNER shall be given an opportunity to be heard. OWNER shall be required to demonstrategood faith compliance with the terms and conditions of this Agreement. The burden of proof on this issue shall be on OWNER. If the City Council finds, based upon substantial evidence, that OWNER has not complied in good faith with the terms or conditions of the Agreement, the City Council may terminate this Agreement or modify this Agreement and impose such conditions as are reasonably necessary to protect the interests of the CITY. The decision of the City Council shall be final. 6.6 Certificate of Agreement Compliance. If, at the conclusion of a Periodic or Special Review, OWNER is found to be in compliance with this Agreement, CITY shall, upon request by OWNER, issue a Certificate of Agreement Compliance ("Certificate") to OWNER stating that after the most recent Periodic or Special Review and based upon the information known or made known to the City Manager and City Council that: (1) this Agreement remains in effect; and (2) OWNER is not in detault. The Certificate shall be in recordable form, shall contain information necessary to communicate constructive record notice of the finding of compliance, shall state whether the Certificate is issued after a Periodic or Special Review and shall state the anticipated date of commencement of the next Periodic Review. OWNER may record the Certificate with the County Recorder. 6.6.1 Whether or not the Certificate is relied upon by assignees or other transferees or OWNER, CITY shall not be bound by a Certificate if detault existed at the time of the Periodic or Special Review, but was concealed from or otherwise not known to the City Manager or City Council. 6.7 Conditions of Discretionary Approvals. The requirements imposed as conditions of any discretionary approval received through the City's existing regulatory process shall be governed by the terms of those approvals, and in no event shall such conditions be affected by the termination, cancellation, rescission, revocation, or detault or expiration of this Development Agreement (although such conditions must comply with the Applicable Rules). The Conditions of approval are incorporated herein by reference an as attached as Exhibit "I" 7. DEFAULT AND REMEDIES. 7.1 Remedies in General. It is acknowledged by the parties that CITY would not have entered into this Agreement if it were to be liable in damages under this Agreement, or with respect to this Agreement or the application thereof. In general, each of the parties hereto may pursue any remedy at law or equity available for the breach ofany provision ofthis Agreement, except that CITY shall not be liable IN 55394,00001 31 ii3187,13 11 A-32 in damages to OWNER, or to any successor in interest of OWNER, or to any other Person, and OWNER covenants not to sue for damages or claim any damages: (a) For any breach of this Agreement or for any cause of action that arises out of this Agreement; or (b) For the taking, impairment or restriction of any right or interest conveyed or provided under or pursuant to this Agreement; or (c) Arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement. 7.2 Release. Except for non -monetary remedies, OWNER, for itself, its successors and assignees, hereby releases CITY, its officers, agents and employees from any and all claims, demands, actions, or suits of any kind or nature arising out of any liability, known or unknown, present or future, including, but not limited to, any claim or liability, based or asserted, pursuant to Article I, Section 19 of the California Constitution, the Fifth and Fourteenth Amendments to the United States Constitution, or any other law or ordinance which seeks to impose any other liability or damage, whatsoever, upon CITY because it entered into this Agreement or because of the terms of this Agreement. OW NER hereby acknowledges that it has read and is familiar with the provisions of California Civil Code Section 1542, which is set forth below A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY. BY INITIALING BELOW, OWNER HEREBY WAIVES THE PROVISIONS OF SECTION 1542 IN CONN TION WITH THE MATTERS THAT ARE THE SUBJECT OF THE FOREGOING WAIVERS A LEASES. OWNER'S Initials 55194.0(Wr131553187 13 7.3 Termination or Modification of Agreement for Default of OWNER. CITY may terminate or modify this Agreement for any failure of 0 WNER to perform any material duty or obligation of OWNER under this Agreement, or to comply in good faith with the terms of this Agreement (hereinafter referred to as "default"); provided, however, CITY may terminate or modify this Agreement pursuant to this Section only after providing written notice to OWNER of default setting forth the nature of the default and the actions, if any, required by OWNER to cure such default and, where the default can be cured, OWNER has failed to take such actions and cure such default within sixty (60) days after the effective date of such notice or, in the event that such default cannot be cured within such sixty (60) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such -20_ 11 A-33 default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default. 7.4 Termination of Agreement for Default of CITY. OWNER may terminate this Agreement only in the event of a default by CITY in the performance of a material tern of this Agreement and only after providing written notice to CITY of default setting forth the nature of the default and the actions, if any, required by CITY to cure such default and, where the default can be cured, CITY has failed to take such actions and cure such default within sixty (60) days after the effective date of such notice or, in the event that such default cannot be cured within such sixty (60) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default. 8. LITIGATION. 8.1 Third Party Litigation Concerning Agreement. OWNER shall defend, at its expense, including attomeys' fees, indemnify, and hold harmless CITY, its agents, officers and employees from any claim, action or proceeding against CITY, its agents, officers, or employees to attack, set aside, void, or annul the approval of this Agreement, or the approval of any permit or entitlement granted pursuant to this Agreement. CITY shall promptly notify OWNER of any claim, action, proceeding or determination included within this Section 8.1, and CITY shall cooperate in the defense. If CITY fails to promptly notify OWNER of any such claim, action, proceeding or determination, or if CITY fails to cooperate in the defense, OWNER shall not thereafter be responsible to defend, indemnify, or hold harniless CITY. CITY may in its discretion participate in the defense of any such claim, action, proceeding or determination. 8.2 Environmental Assurances. OWNER shall indemnify and hold CITY, its officers, agents, and employees free and harmless from any liability, based or asserted, upon any act or omission of OWNER, its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns and independent contractors for any violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Property, including, but not limited to, soil and groundwater conditions, and OWNER shall defend, at its expense, including attorneys' fees, CITY, its officers, agents and employees in any action based or asserted upon any such alleged act or omission. CITY may in its discretion participate in the defense of any such action. 8.3 Reservation of Rights. With respect to Section 8.1 and Section 8.2 herein, CITY reserves, the right to either (1) approve the attomey(s) that the indemnifying party selects, hires or otherwise engages to defend the indemnified party hereunder, which approval shall not be unreasonably withheld, or (2) conduct its own defense; provided, however, that the indemnifying party shall reimburse the indemnified party forthwith for any and all reasonable expenses incurred for such defense, including attomeys' fees, upon billing and accounting therefor. 8.4 Challenge to Existing Land Use Approvals. By accepting the benefits of this Agreement, OWNER, on behalf of itself and its successors in interest, -21- ?,304A000' 31?,3l87.13 11 A-34 hereby expressly agrees and covenants not to sue or otherwise challenge any land use approval affecting the Property and in effect as of the Effective Date. Such agreement and covenant includes, without limitation, the covenant against any direct suit by OWNER or its successor in interest, or any participation, encouragement or involvement whatsoever that is adverse to CITY by OWNER or its successor in interest, other than as part of required response to lawful orders of a court or other body of competent j urisdiction. OWNER hereby expressly waives, on behalf of itself and its successors in interest, any claim or challenge to any land use approval affecting the Property and in effect as of the Effective Date. OWNER hereby acknowledges that it has read and is familiar with the provisions of California Civil Code Section 1542, which is set forth below: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY IILM OR HER, WOULD IIAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY. BY INITIALING BELOW, OWNER HEREBY WAIVES THE PROVISIONS OF SECTION 1542 IN CONNECTION WITH THE MATTERS THAT ARE THE SUBJECT OF THE FOREGOING WAIVERS AND RELEASES. O Initials 9.5 Survival. The provisions of Sections 8.1 through 9.4, inclusive, shall survive the termination of this Agreement. a The Parties hereto agree that this Agreement shall not prevent or limit OWNER, in any manner, at OWNER's sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. CITY acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with OWNER and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. CITY will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any Mortgagee of the Property shall be entitled to the following rights and privileges: (a) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property trade in good faith and for value, unless otherwise required by law. (b) The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, which Mortgagee, has submitted a request in writing to the CITY in the manner specified herein for giving notices, shall be entitled to receive written notification from CITY of any default by 55394AM02Ut553t97. l3 _22_ 11 A-35 OWNER in the performance of OWNER's obligations under this Agreement (c) If CITY timely receives a request from a mortgagee requesting a copy of any notice of default given to OWNER under the terms of this Agreement, CITY shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to OWNER. The Mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. (d) Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of OWNER's obligations or other affirmative covenants of OWNER hereunder, or to guarantee such performance; provided, however, that to the extent that any covenant to be performed by OWNER is a condition precedent to the performance of a covenant by CITY, the performance thereof shall continue to be a condition precedent to CITY's performance hereunder, and further provided that any sale, transfer or assignment by any Mortgagee in possession shall be subject to the provisions of Section 2.5 of this Agreement. 10. MISCELLANEOUS PROVISIONS. 10.1 Recordation of Agreement. This Agreement and any amendment or cancellation thereof shall be recorded with the Orange County Recorder by the Clerk of the City Council within ten (10) days after the City enters into the Agreement, in accordance with Section 65868.5 of the Government Code. If the Parties to this Agreement or their successors in interest amend or cancel this Agreement, or if the CITY terminates or modifies this Agreement as provided herein for failure of the OWNER to comply in good faith with the terms and conditions of this Agreement, the City Clerk shall have notice of such action recorded with the Orange County Recorder. 10.2 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements that are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 10.3 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this Agreement. Notwithstanding the foregoing, the provision of the Public Benefits set forth in Section 4 of this Agreement, including the payment of the Development Impact Fees set forth therein, are essential elements of this Agreement and CITY would not have entered into this Agreement but for such provisions, and therefore in the event such provisions are determined to be invalid, void or unenforceable, this entire Agreement shall be null and void and of no force and effect whatsoever. -23- ;;393O(X)O3 315?314T13 11 A-36 10.4 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California, with venue in Orange County. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof. 10.5 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 10.6 Singular and Plural. As used herein, the singular of any word includes the plural. 10.7 Joint and Several Obligations. If at any time during the Term of this Agreement the Property is owned, in whole or in part, by more than one OWNER, all obligations of such OWNERS under this Agreement shall be joint and several, and the default of any such OWNER shall be the default of all such OWNERS. Notwithstanding the foregoing, no OWNER of a single lot that has been finally subdivided and sold to such OWNER as a member of the general public or otherwise as an ultimate user shall have any obligation under this Agreement except as expressly provided for herein. 10.8 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 10.9 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter. 10.10 No Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement. 10.11 Force Maieure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by: (1) strikes, lockouts or labor disputes; (2) inability to obtain labor or materials or reasonable substitutes therefor; (3) inclement weather which delays or precludes construction; (4) acts of God, including but not limited to earthquakes, or the public enemy or civil commotion; (5) condemnation, (6) fire or other casualty; (7) shortage of fuel, electricity or natural gas; (8) action or nonaction of public utilities or of local, state or federal governments, affecting the work, including, but not limited to, any delays in the permitting process as a result of the action or inaction or such governmental authorities; (9) criminal acts or acts of terrorism; or (10) other conditions similar to those enumerated above which are beyond the reasonable 24- >s39., 000r11;;3197.11 11A-37 anticipation or control of such Party, or other causes beyond the Party's reasonable control. If any such events shall occur, the term of this Agreement and the time for performance shall be extended for the duration of each such event, , provided that the Term of this Agreement shall not be extended under any circumstances for more than five (5) years. 10.13 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party. 10.13 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and (c) is binding upon each party and each successor in interest during ownership of the Property or any portion thereof. 10.14 Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. 10.15 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, and the parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 10.16 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the development of the Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between CITY and OWNER is that of a government entity regulating the development of private property and the owner of such property. 10.17 Further Actions and Instruments Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either party at any time, the other party shall promptly execute and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. -25 553,94 WOO' I 1 147.11 11 A-38 10.18 Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by CITY of its power of eminent domain. 10.19 Agent for Service of Process. In the event OWNER is not a resident of the State of California or it is an association, partnership orjoint venture without a member, partner orjoint venturer resident of the State of California, or it is a foreign corporation, then in any such event, OWNER shall file with the City Manager, upon its execution of this Agreement, a designation of a natural person residing in the State of California, giving his or her name, residence and business addresses, as its agent for the purpose of service of process in any court action arising out of or based upon this Agreement, and the delivery to such agent of a copy of any process in any such action shall constitute valid service upon OWNER. If for any reason service of such process upon such agent is not feasible, then in such event OWNER may be personally served with such process and such service shall constitute valid service upon OWNER. OWNER is amenable to the process so served, submits to thejurisdiction of the Court so obtained and waives any and all objections and protests thereto. 10.20 Certificate of Compliance. At any time during the term of this Agreement, any lender or either Party may request either Party to this Agreement to confirm that (1) this Agreement is unmodified and in full force and effect (or if there have been modifications hereto, that this Agreement is in full force and effect as modified and stating the date and nature of such modifications); (2) to the best of such Party's knowledge, no defaults exist under this Agreement or if defaults do exist, to describe the nature of such defaults; and (3) any other information reasonably requested. Each Party hereby agrees to provide a Certificate to such lender or other Party within thirty (30) days of receipt of the written request therefor. 10.21 Authority to Execute. The person or persons executing this Agreement on behalf of OWNER warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership or business entity and warrants and represents that he or she/they has/have the authority to bind OWNER to the performance of its obligations hereunder. -26- Sn3940000'_ 3l;,3187.1 ` 11 A-39 IN WITNESS WHEREOF, the parties hereto have executed this Development Agreement on the last day and year set forth below. >5i94.00IX)3'6155318T.0 OWNER AC 2525 MAIN, LLC, a California limited liability company By: AC - n Manager LLC Its: Man'Ia_g'er Dated: IBee�l CICy CITY OF SANTA ANA, a California municipal corporation Mayor Dated: ATTEST: By: City Clerk APPROVED AS TO LEGAL FORM: BEST BEST & KRIEGER LLP fbr City Attorney ,2^ 11 A-40 EXHIBIT "A" (Legal Description of the Property) ii3",0000'_' 3I5i3lg'.13 11 A-41 EX111131T "B" (Map of the property) !�� t rt - �. if et� -• ILell + A •-a-;•-�- v a, 1- aitya�... 7 ti i i344.IX)11117 31 ;;3 I87.13 11 A-42 ExHlsrr "C" Development Plans Development Plans and entitlement applications as presented in the City Staff Report Dated are incorporated herein by reference. Project entitlements and applications include, but may not be limited to the following entitlements: 1. Development Agreement No. 2018-01 2. General Plan Amendment No. 2018-06 3. Amendment Application No. 2018-10 4. Specific Development No. 93 5. Final Environmental Impact Report No. 2018-01 „3e.4000m ll iiII , I 11 A-43 - - EXHIBIT"D" Development Impact Fees (Estimated) The estimated amount of Development Impact Fees associated with the project based upon the site plan documentation submitted as part of the Project Approvals include but are not limited to the following fees and deposits; applicable sewer fee, street fee, storm drain fee, traffic fee, deposits, and all applicable fees associated with demolition of existing structures, drainage, site development, and construction are based on actual square footage of any commercial development and number of residential units. Based on 256 Residential Units, the Development Impact Fees are estimated at: Fee Estimated Total Sewer $199,344 Capital Facilities Capacity Charges (Orange County Sanitation District Charges) $607,279 Storm Drain $55,776 Traffic $305,009 Parks & Recreation $974,250 Fire Facilities Fee $252,326 Santa Ana Unified School Fees $1,050,895 Estimated Total $3,444,878 - --. ;;39.1 M00I ',I ;,3l 67J 1 11 A-44 EXHIBIT "E" Development Impact Fees Credits, if any will be determined at time of building permit issuance and shall be incorporated herein by reference. ;,,94INIM' 31ii,IYL3 11 A-45 EXHIBIT "F" Santiago Park Access Rights (Conceptual) >4,01,Y,)001 ; .;I,q, 11 A-46 ruw - I-XHIBIT "G" Park Design and Improvements (Conceptual) SANTIAGO CREEK TRAIL ACCESS Cl r Of 5A.NTA ANA ;i3940000'_ 31»J 187.13 11A-47 ..._.. -- EXHIBIT H Park Santiago Security Patrol Area Map (Conceptual) 5519.1 a00' 11::1187.13 11 A-48 EXHIBIT I Conditions of Discretionary Approvals 2525 N. Main - Project Approval Conditions: The project is approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with applicable sections of the Santa Ana Municipal Code, the California Administrative Code, the California Building Standards Code, and all other applicable regulations. In addition, it shall meet the conditions of approval articulated in the sections below. The Applicant or Owner, or Owner's successor(s) or assignee(s) (collectively, "Applicant") with the City's consent, which shall not be unreasonably withheld, must comply with each and every condition listed below The Applicant must remain in compliance with all conditions listed below throughout the life of the development project. Failure to comply with each and every condition may also result in breach of the Development Agreement. GENERAL CONDI'f1ONS Project Description and Entitlements: Approval of this application is to build (Insert Final Approved Project Description and specific entitlements) with such additions, revisions, changes or modifications as required by the Planning Commission as articulated in Planning Commission Resolution No. XXXX, dated XXXX. Subsequent submittals for this project shall be consistent with the Planning Commission's approval and in compliance with the applicable land use regulations of the Santa Ana Municipal Code and any applicable State law and the associated plans presented to the Planning Commission on (Insert PC hearing date) and on file with the City. 2. Acknowledgment of Conditions of Approval. The Applicant shall file an Acknowledgment of Conditions of Approval with the Planning and Building Agency within 30 days of final approval of all resolutions. The property Applicant shall be required to record the Acknowledgment of these Conditions of Approval with the Office of the Orange County Recorder and proof of such recordation shall be submitted to the Planning and Building Agency. 3. Enforcement of Conditions. In case of violation of any of the conditions of approval of applicable law, the property owner and tenant will be issued a Notice of Correction pursuant City regulations or pursuant to applicable terms of the Development Agreement, the Maintenance Agreement, and the CC&Rs if said violation is not remedied in accordance with the specified period of time and/or subsequent violations of the conditions of approval and/or City law occurs within ninety days of any Notice of Correction, the property owner shall be held responsible to reimburse the City for all Staff time directly attributable to enforcement of the conditions of approval, mitigation measures as stipulated in the various agreements and/or City law including but not limited to, revocation of the herein approvals. 4. Project Plans. Project plans for the development shall be subject to a complete code compliance review with the Planning and Building Agency when the plans are submitted for plan check and shall comply with all applicable City of Santa Ana ordinances, regulations, and policies prior to building permit issuance, including, but not limited to, the requirements established or authorized by Chapter 8 (Building and Structures) and Chapter 41 (Zoning) of the City of Santa Ana Municipal Code. ii394MW 31553187,11 11 A-49 LLGA1, Indemnity. The Applicant shall defend, indemnify, and hold harmless the City of Santa Ana, its agents, officers, or employees from any claim, action or proceeding against the City or its agents, officers or employees to attack, set aside, void or annul an approval of the City, its legislative body, advisory agencies or administrative officers the subject application. The City will promptly notify the Applicant of any such claim, action or proceeding against the City and the Applicant will either undertake defense of the matter and pay the City's associated legal costs, or will advance funds to pay for defense of the matter by the City. Notwithstanding the foregoing, the City retains the right to settle or abandon the matter without the Applicant's consent, but should it do so, the City shall waive the indemnification herein, except the City's decision to settle or abandon a matter following an adverse judgment or failure to appeal, shall not cause a waiver of the indemnification rights herein. 6. Approval Time Period. The approval of the entitlements herein shall be valid for a time period consistent with the Development Agreement. IMPACT FEES Project Development Impact Fees. The following Development Impact Fees shall be charged to the Project. These fee amounts are estimated and will be subject to change based on the fee rate applicable at the time of issuance of the Building Permit. Fee Estimated Total Sewer $199,344 Capital Facilities Capacity Charges (Orange County Sanitation District Charges) $607,279 Storm Drain $55,776 Traffic $305,009 Parks & Recreation $974,250 Fire Facilities Fee $252,326 Santa Ana Unified School Fees $1,050,895 Estimated Total $3,444,878 City Invoices. All invoices the Applicant has received from the City shall be paid to a zero balance prior final approval for occupancy by the City or issuance of a Certificate of Occupancy. PROJECT DESIGN AND OPERATIONS ii3WOMO' 31;;31H7.13 11 A-50 2. The approved project is a multi -family apartment rental project. Any proposal in the future to convert the rental units to condominium ownership, the Owner shall comply with the requirements for a condominium project in accordancewith local and state zoning and subdivision requirements. 3. Unit Mix: Number of family units to be a minimum of thirty percent (30%) of the proposed units to contain 2 & 3 bedrooms. 4. Onsite Property Manager. The Project shall include the provision to have 24-hour on -site Property Management services and personnel. Up-to-date 24-hour contact information for the on - site personnel shall be provided to the following City Agencies on an ongoing basis: (a) Police Department (b) Fire Department (c) Planning and Building Agency (d) Community Development Agency 5. Emergency Evacuation Plan. Developer shall submit and obtain approval of an Emergency Evacuation Plan (the "EEP") from City Police and Fire Protection agencies prior to final approval for occupancy or the issuance of a Certificate of Occupancy. Up-to-date 24-hour emergency contact information for the on -site personnel shall be provided to the City on an ongoing basis and the approved EEP shall be kept onsite and also be submitted to the following City Agencies: (a) Police Department (b) Fire Department (c) Planning and Building Agency (d) Community Development Agency 6. Crime Free Housing Plan. Applicant shall work with City Staff to develop a crime free housing policy, procedure, and design plan (the "CFl I Plan") and shall submit and obtain approval from the Planning and Building Agency of the CFH Plan prior to final approval for occupancy or the issuance of the Certificate of Occupancy. The approved CFH Plan shall be implemented and administered by Property Management. The approved CFH Plan shall be implemented, adhered to, and be enforced by the Project at all times. Onsite Parking Management Plan. Developer shall provide onsite parking for residents and visitors of the Project and actively monitor the parking demand of the Project site. Developer shall continually monitor and take appropriate measures to manage the parking demand of the Project site to mitigate the use of offsite parking spaces on private or public properties and/or right-of-way. Prior to final approval for occupancy or the issuance of the Certificate of Occupancy, Developer shall submit and obtain approval from the PI3A a Parking Management Plan (the "PMP") meeting the requirements of this Condition. The approved PMP shall be adhered to and be enforced by the Project at all times. 8. Good Neighbor Policy. The Applicant shall submit for review and approval by the Planning Division a good neighbor policy implementation plan that will provide a process for the neighborhood to report nuisance issues to the property management to help manage and address potential nuisance issues including but not limited to noise, lighting, property maintenance, parking overflow into the street and neighborhood, and landscape maintenance. ii194,(X)00' 11y.3I 87.13 11 A-51 9. Parking Ratio. Number of spaces and onsite ratio of parking shall be a minimum of two (2) spaces per unit. 10. Privacy along east property line. To ensure maximum privacy screening between the project site and the residential uses along the eastern property, the Applicant is constructing an eight (8) foot tall property line decorative block wall. In addition to this wall, and installation and maintenance of all existing mature trees along the eastern property line, all windows facing the eastern property with a direct line of sight to the adjacent properties bordering the eastern property line shall be design incorporating opaque view obscuring glass. 11. Protect and Preserve Existing Mature Trees along the Eastern Property Line. To ensure maximum privacy screening between the project site and the residential uses along the eastern property, the Applicant shall protect and preserve all existing mature trees along the east property line. 12. Protect and Preserve Existing Mature Trees on the Property not Located Along the East Property Line. To the extent feasible, the Applicant shall protect and preserve all other mature trees on the property. If the perseveration of the existing matures trees in not feasible because of the location of the approved structures on the property, the Applicant shall work with Staff to evaluate the feasibility of relocating the tree(s) to other locations on the property. 13. Edgewood Street Improvements. Only one emergency vehicular access may be permitted along Edgewood Street. No other vehicular access or curb approach openings will be approved on this street for the project. In addition, mature canopy and vertical specimen trees shall be planted along the southern property line between the building and the adjacent sidewalk to integrate the building with the adjacent single-family development across the street. 14. Property Line "'all. The project Applicant shall install an 8-foot tall property line block wall along the entire eastern edge of the Project as part of the site construction and preparation process and prior installation of the foundation. The design of the wall shall be approved by the Planning Manager and shall be decoratively designed to include a mix of decorative materials, colors, and decorative pilasters. 15. Santiago Park Entrance and Interface. If approved by the City Council, the Applicant shall design the Project and residential units to also front onto Santiago Park, Main Street, and Santiago Street entrance. The Project fagade along Santiago Park shall be consistent with and reflect the natural, current state of the Park and include articulation of the building facade to include open garden areas. The conceptual design is as shown in Attachment I to these conditions. The Santiago Park Entrance design shall be subject to the review and approval of the City Planning, Public Works, and Parks and Recreation Directors to ensure compliance with the Agreement. Approval shall not be unreasonably withheld, delayed or conditioned. 16. Green Project Features. Alternative Transportation and Energy Source, Resource Conservation, and LEED Certification. The project shall obtain Silver Standard or better LEED equivalent and shall at the minimum, incorporate bike lockers, bike sharing programing, electric vehicle charging stations, rain capturing systems, grey water capturing systems, and to the extent feasible, automobile sharing programing. 17. Landscape Plan. A Landscape Plan (including Irrigation) prepared by a licensed landscape architect shall be submitted to the Planning Division prior to the issuance of building permits. The iiYA ,000' 31 ii3l �,. , 11 A-52 Irrigation Plan shall include an irrigation system layout with the location of controllers and points of connection with data on valve sizes and gallons per minute (G.P.M.), the size and location of sleeves and all spray heads, including the location of conventional systems and drip systems; an irrigation legend with complete specifications; irrigation notes and construction details of all assemblies and components; a recommended irrigation schedule, preferably on an annual basis; and a summary block on the initial page of submitted plans that will present the above information clearly and accurately. The City reserves the right to require subsequent checks, or approval of the landscape plans prior to issuance of a grading permit. 18. Water Conservation. Landscaping shall comply with the City's water conservation ordinances in accordance with SAMC Section and the State mandated Model Water Efficient Landscape Ordinance (MWELO) 2015 update. 19. Installation. Landscaping for the project shall be complete in phases by building and shall be installed and inspected prior to occupancy of units within that building. The developer shall be responsible for maintaining all common area landscaping within the development. 20. Landscape Details. The landscape plan shall include a Plant Legend containing: plant symbol, scientific name of plant material, common name of plant material, plant container size, and plant spacing. Very low, low and medium water usage plant materials are encouraged. The applicant shall construct a landscape planter along the eastern property line. In this eastern planter, a combination of vertical and canopy specimen trees shall be planted with minimum size of 60 inch box. The landscape plan shall provide a cross section showing the planter at time of planting, after five (5) years and at full maturity. The cross section shall demonstrate the landscaping will adequately screen the project from the adjacent residential uses along the eastern portion of the Property. 21. Minimum Tree Box Size. The applicant shall install minimum 36 inch box trees, when planting trees for all required trees along street setbacks, open space areas and shared parking areas. All other tree sizes may be dependent on the location, species and spacing. The final landscaping is subject to the review and approval of the Planning Manager. 22. Maintenance of existing site. The site and the public R.O.W. adjacent to any portions of the site shall be maintained in a condition which is free of debris while the property is vacant and undergoing development and during and after the construction, addition or implementation of the entitlements granted herein. All trash and refuse shall be disposed of in dumpsters and be removed from the premises on an -as needed basis. Any surplus construction materials shall be screened from public view when not actually in use and be removed from the property upon completion of construction activities. The removal of all trash, debris, and refuse, whether during or subsequent to construction shall be done only by the property owner, the Applicant or by a permitted waste contractor, who has been authorized by the City to provide collection, transportation, and disposal of solid waste from residential, commercial, and construction areas within the City. 23. On Going Property Maintenance. Subject to review and applicability by the Planning and Building Agency, the Community Development Agency, the Public Works Agency, and the City Attorney to ensure that the property and all improvements located thereupon are properly maintained, Developer (and the owner of the property upon which the authorized use and/or authorized improvements are located if different from the Applicant) shall execute a maintenance agreement with the City of Santa Ana which shall be recorded against the property and which shall ;;394 NHIM 31;;3187.13 11 A-53 be in a form reasonably satisfactory to the City Attorney. The maintenance agreement shall contain covenants, conditions and restrictions relating to the following: (a) Compliance with operational conditions applicable during any period(s) of construction OF major repair (e.g., proper screening and securing of the construction site; implementation of Proper erosion control, dust control and noise mitigation measure; adherence to approved project phasing etc.); (b) Compliance with ongoing operational conditions, requirements and restrictions, as applicable (including but not limited to hours of operation, security requirements, the proper storage and disposal of trash and debris, enforcement of the Parking Management Plan, enforcement of the Overcrowding Mitigation Implementation Plan, and/or restrictions on certain uses, etc...) (c) Ongoing compliance with approved design and construction parameters, signage parameters and restrictions as well as landscape designs and maintenance, as applicable; (d) Ongoing maintenance, repair and upkeep of the property and all improvements located thereupon at all times (including but not limited to controls on the proliferation of trash and debris about the property; the proper and timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly accessible bathrooms and bathroom fixtures, landscaping and related landscape improvements and the like, as applicable); (e) If Developer and the owner of the property are different (e.g., if the applicant is a tenant OF licensee of the property or any portion thereof), both the applicant and the owner of the property shall be signatories to the maintenance agreement and both shall be jointly and severally liable for compliance with its terms. (f) The maintenance agreement shall further provide that any party responsible for complying with its terms shall not assign its ownership interest in the property or any interest in any lease, sublease, license or sublicense, unless the prospective assignee agrees in writing to assume all of the duties and obligations and responsibilities set forth under the maintenance agreement. (g) The maintenance agreement shall contain provisions relating to the enforcement of its conditions by the City and shall also contain provisions authorizing the City to recover costs and expenses which the City may incur arising out of any enforcement and/or remediation efforts which the City may undertake in order to cure any deficiency in maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of the property and a 50% administration fee. The maintenance agreement shall further provide that any unreimbursed costs and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use restrictions shall become a lien upon the property in an amount equivalent to the actual costs and expense incurred by the City and a 50% administration fee. (h) The execution and recordation of the maintenance agreement shall be a condition precedent to the issuance of final approval for any construction permit related to this entitlement. LIGHTING ii394, uur_3[?,3187.3 11A-54 24. Site and Building Lighting. The developer shall submit for review by the Planning Division and the Engineering Department, the design and specifications for all proposed lighting fixtures proposed for the buildings, drive aisles, parkways, parking areas, pathways, and surrounding areas within the development. The fixtures shall be reviewed for quality, aesthetics, illumination values, sustainability values such as LED and shall be decoratively and architecturally consistent with the building design. The number, location, height, style and design shall be reviewed and approved by the Planning Division and Engineering Department prior to issuance of building permits. UTILITIES 25. Undergrounding of Utilities. All utility service lines shall be underground. This includes all existing above ground wires that cross over the property that feed adjacent properties. 26. Composite Utility Plan. The applicant shall submit a composite utility plan depicting the location of all above ground utility appurtenances. The exact location of the equipment shall be approved by the Planning Division, during the plan check process, and shall be installed as per approved plans. They shall not be allowed within a required parking, turnaround and landscape areas or on any facade facing a public street. 27. Screening of Mechanical Equipment. All mechanical equipment placement and screening shall be included on the development plan and shall be reviewed and approved by the Planning Division prior to installation. Where practicable and as shown on the plans approved by the Planning Commission in the course of obtaining the requested entitlements, mechanical equipment, heating, ventilation, air conditioning (HVAC) units, satellite dish systems, solar panels, thermal solar heaters, utility meters, above ground utility and fire safety connections will be, screened, located out of public view or be architectural integrated into the project design. CONSTRUCTION 28. Construction Information. During construction, the Applicant will display signs visible to the public from the public right-of-way with a contact number of the construction superintendant to address any questions or concerns about demolition, grading, and construction activities including dust, noise and vibration. 29. Vehicles and Equipment. All construction vehicles or equipment, fixed or mobile, operated within 1,000 feet of an existing dwelling shall be equipped with properly operating and maintained mufflers. 30. Warning Devices. Replace backup audible warning devices with backup strobe lights or other warning devices during evening construction activity to the extent permitted by the California Division of Occupational Safety and health. 31. Pest Control. The Applicant shall have rodent and pest controls on site during demolition and grading activities to mitigate impacts to the surrounding properties and neighborhood. 32. Perimeter Fence. Prior to demolition and construction, a perimeter security fence not exceeding seven feet in height, shall be installed around the project site. The fencing shall include a green 55394.W00' 31;i3187A3 11 A-55 screen material or approved equivalent. The fence/screen material shall be properly maintained and be free of rips, tears, fraying, graffiti, and any other damage or vandalism. 33. Site Maintenance. The site and the public R.O.W. adjacent to any portions of the site shall be maintained in a condition which is free of debris, trash, weeds and overgrown vegetation both during and after the construction, addition or implementation of the entitlements granted herein. All trash and refuse shall be disposed of in dumpsters and be removed from the premises on an as needed basis. Any surplus construction materials shall be stored so as to be screened from public view when not actually in use and be removed from the property upon completion of construction activities. 34. Construction Traffic Management Plan. A truck/traffic construction management plan is required for this project pursuant to the City's Public Works Department. All construction traffic regarding the movement of heavy equipment and graded materials are limited to off peak hours. This plan shall be approved prior to the issuance of Building Permits. 35. Construction Staging. During the construction process all related activities, including but not limited to, loading, unloading, storage of equipment and materials, and parking of employee vehicles are prohibited within the public R.O.W. All such activities shall be conducted only on the project site and not in the public R.O.W. All staging areas and storage of equipment and materials shall be set back from adjacent residential uses. 36. Construction Hours. In accordance with SAMC Section 18.314(e), Demolition, grading, and exterior building construction activities shall be limited to the hours of between 7:00 a.m. and 8:00 p.m. Monday through Saturday. No construction activity shall be allowed on Sundays or federal holidays. Compliance with this measure is subject to field inspection by City Staff. 37. Noise. All onsite activities shall comply with the City of Santa Ana Noise Ordinance at all times. 38. Fire Protection. Fire protection facilities; including access, must be provided prior to and during construction. 39. Fencing. Prior to commencing demolition and site preparation activities, the project site shall be secured with a fence to prevent unauthorized access to the site and the fence shall contain a screening material to screen construction activities from view. The temporary screening fence shall be installed to the satisfaction of the Economic Development Department and shall be maintained in good condition (free of tears, holes, crack lines, debris, etc.) at all times. At the primary entrance to the site, the screening material shall be reduced to a maximum height of four feet to provide visibility into the site at all times and for public safety purposes. The project site shall also have a minimum of one sign of quality material depicting the proposed development, which shall include renderings, project opening date, and City Council information. The signs shall be designed and installed to the satisfaction of the Economic Development Department and maintained in good condition (free of tears, graffiti, holes, cracks, fading, debris, etc.) at all times. 40. Fence Coordination. Prior to the demolition of any existing property line walls and/or fences and construction of a new property line concrete block wants), the developer shall make reasonable efforts to coordinate and obtain approval from neighboring property owner(s) to remove any existing walls) and/or fence(s). Written authorization from the neighboring property owner shall be provided for the removal of an existing wall and construction of a new shared property line wall upon submittal for plan check. 5511)4JH100' I I i il 187.1 11 A-56 41. Pre -Construction Meeting. Prior to the commencement of construction on the site, the developer shall schedule a pre -construction meeting between the general superintendent or field representative and the Planning Division to discuss the approved plans and construction requirements. ENGINEERING 42. The Applicant shall submit Improvement Plans prepared by a Registered Civil Engineer for public works (off -site) improvements, and on -site improvements. Plan check fees shall be paid in advance. 43. An on -site grading and drainage plan shall be prepared and submitted to the City Engineer for approval. Plan shall be 24" x 36", with elevations to nearest 0.01 foot, minimum scale I" = 20'. Plan shall be prepared by Registered Civil Engineer. Public works improvements may be shown on this plan. Grading plan check fees must be paid in advance. 44. Hydrologic and hydraulic calculations demonstrating adequate site drainage from a 10-year return frequency storm (25-year frequency in sump areas) prepared by a Registered Civil Engineer shall be submitted with the Grading Plan. 45. Driveway slope shall be a minimum slope of one (1) percent for asphalt and .5% for concrete. 46. If utility cuts are excessive in the street the street must have a grid and overlay placed on it per the satisfaction of the City Engineer. 47. All existing off -site public improvements (sidewalk, curb and gutter, driveways, and street paving) at the development site which are in a damaged condition or demolished due to the proposed work shall be reconstructed to the satisfaction of the City Engineer, and per OCPFRD Standard Plan. 48. A City Encroachment (Public Works) permit shall be taken out for all work in public right-of-way prior to start of work. All work shall be done in accordance with APWA Standards and to the satisfaction of the City Engineer and must be completed prior to final approval for occupancy or the issuance of Certificate of Occupancy. 49. A bond or surety device shall be posted with the City in an amount and type sufficient to cover the amount of off -site work to be done, as approved by the City Engineer. 50. Pad certification by the Design Civil Engineer and Soil Engineer is required prior to the commencement of structural construction. 51. Final compaction report prepared by a qualified Soil Engineer shall be submitted to the City Engineer for review and approval prior to the commencement of structural construction. 52. Prior to the issuance of any grading or building permits or prior to recordation upon subdivision of land if determined applicable by the City Building Official, the applicant shall submit to the City for review and approval a Final Water Quality Management Plan (WQMP) that: 55394.00002 315531'ST I 11 A-57 • Addresses Site Design BMPs (Best Management Practices) such as minimizing impervious areas, maximizing permeability, minimizing directly connected impervious areas, creating reduced or"zero discharge' areas, and conserving natural areas. • Incorporates the applicable Routine Source Control BMPs as defined in the DAMP. • Incorporates Treatment Control BMPs as defined in the DAMP. • Generally describes the long-term operation and maintenance requirements for the Treatment Control BMPs. • Identifies the entity that will be responsible for long-term operation and maintenance of the Treatment Control BMPs. • Describes the mechanism for funding the long-term operation and maintenance of the Treatment Control BMPs. ii394JHH10' 31 ii3147.13 11 A-58 Attachment I Building Articulation and Setback Along Santiago Park (Conceptual) 553N.W0231553187 3 11A-59 EXHIBIT `J" Security Fencing N4,0000'31;;3NT13 _ 11A-60 Exhibit J ' d LL co d J M _ M !! t6 E 4a' O t Q Q F d d LL L- co d C J ti tl T d co E X O Q Q Q t _ Main St r. d+ Li�' ACr _e c en- — Mao Broadway e� 11 A-61 •>•3 a 4=- e !• iJ4 I�' j C . f I .}41: ! 6 Q ,)F sz � W� Z WQz W`z RRRR Y a 3 ••> 3 yy-> m" O 43., co G m i ✓ii n: .i.}3 it 3d-! yi. f .}g.3 3.1. �5.5• fi•3- i.) j p• . •i.5 RIROCsyKONl0111 a i R u! S �f>•o?• ffiC OeN)ws'i-i�Ww[,[� a , v/s we . M ac �:e.l,�era�.a,q 11 A-62 EXHIBIT 2 LS 11.19.19 ORDINANCE NO. NS-2980 AN ORDINANCE OF THE CITY COUNCIL APPROVING AMENDMENT APPLICATION NO. 2018-10 REZONING THE PROPERTY LOCATED AT 2525 NORTH MAIN STREET FROM PROFESSIONAL (P) TO SPECIFIC DEVELOPMENT NO. 93 (SD-93) (AA NO. 2018-10) AND ADOPTING SPECIFIC DEVELOPMENT NO. 93 (SD-93) FOR SAID PROPERTY THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: WHEREAS, Chapter 41, Article 1, Division 1, Section 41-1 of the Santa Ana Municipal Code establishes the necessity of segregating the location of residences, businesses, trades and industries; regulating the use of buildings, structures, and land regulation; the location, height, bulk and size of buildings and structures, the size of yards and open space; the City is divided into land -use districts of such number, shape and area as may be considered best suited to carry out these regulations and provide for their enforcement; and WHEREAS, the regulations are considered necessary in order to: encourage the most appropriate use of land, conserve and stabilize property value, provide adequate open spaces for light and air and to prevent and fight fires, prevent undue concentration of population, lessen congestion on streets and highways, and promote the health, safety and general welfare of the people, all as part of the general plan of the City; and WHEREAS, the City of Santa Ana has adopted a zoning map which has since been amended from time to time: and WHEREAS, AC 2525 Main, LLC ("Applicant') seeks to develop the Addington Multi -Family Residential Project ("proposed Project'), originally proposed as a 496-unit multi -family project on a 5.93-acre site at 2525 North Main Street in Santa Ana, California ("Project Site"); and WHEREAS, during the entitlement and environmental review process, and in response to comments and concerns raised by the public and the City's elected officials, the Applicant has proposed modifications to the original proposal; and WHEREAS, the Project as currently proposed now entails, among other things, (1) demolition of the existing 81,172 square foot vacant two-story office building and 442-space surface parking lot on the Project Site; (2) redevelopment of the 5.93-acre site with 444,534 square feet of total development, including 277,281 square feet of Ordinance No. NS-2980 Page 1 of 10 11 A-63 residential buildings that would provide 256 for -rent multi -family residential units and a 167,253 square foot central parking structure and a 284 space surface level parking lot with residential and commercial parking; (3) approval of Development Agreement No. 2018-01 between the City of Santa Ana ("City") and Applicant; (4) approval of General Plan Amendment No. 2018-06, which would change the Project Site's existing land use designation of Professional & Administration Office (PAO) to District Center (DC); and (5) approval of Amendment Application No. 2018-10, which would change the zoning of the Project Site from Professional (P) to Specific Development No. 93 (SD-93) designation; and WHEREAS, the requested Amendment Application would change the zoning designation of the property from Professional (P) to Specific Development No. 93 (SD-93) and adoption of Specific Development No. 93 to reflect this change in order to facilitate the construction of the multi -family housing project; and WHEREAS, Environmental Impact Report No. 2018-01 (State Clearinghouse No. 2018021031) for the proposed Project was circulated between August 7, 2018 and October 4, 2018; and WHEREAS, the Environmental Impact Report analyzed the impacts related to the proposed amendment to the zoning map and adoption of Specific Development No. 93; and WHEREAS, on August 27, 2018, the Planning Commission conducted a work study session to overview the project and thirty-two (32) verbal comments were received (three (3) in support and twenty-nine (29) in opposition) and nine (9) written comments were received (one (1) in support and eight (8) in opposition); and WHEREAS, on November 26, 2018, the Planning Commission continued a duly noticed public hearing for the project to January 14, 2019 and held a second study session to overview the Project and fifty-eight (58) verbal comments were received (twenty-five (25) in support; thirty-one (31) in opposition and two (2) neutral) and eleven (11) written comments were received (two (2) in support and nine (9) in opposition); and WHEREAS, on January 14, 2019, the Planning Commission conducted a duly noticed public hearing to consider the EIR, Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10 and solicited comments on the EIR. At the meeting, seventy-nine (79) members of the public spoke on the item, thirty (30) speakers supported the project, forty-eight (48) opposed it and one speaker was neutral. After hearing all relevant testimony from staff, the public and the City's consultant team, the Planning Commission voted to recommend that the City Council does not certify the EIR, adopt the findings, the statement of overriding considerations and the mitigation monitoring and reporting program and deny the Project; and Ordinance No. NS-2980 Page 2 of 10 11 A-64 WHEREAS, on February 5, 2019, the City Council conducted a duly noticed public hearing to consider the EIR, Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10 and solicited comments on the EIR. At the meeting, sixty-one (61) members of the public spoke on the item, thirty-eight (38) speakers supported the project, twenty (20) speakers opposed it and three (3) speakers were neutral and the public hearing was continued to the next regular adjourned City Council meeting on February 19, 2019; and WHEREAS, on February 19, 2019, the City Council continued to conduct a duly noticed public hearing to consider the EIR, Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10 and solicited comments on the EIR. At the meeting, one hundred and thirty-one (131) members of the public spoke on the item, twenty-six (26) speakers supported the project and one hundred and five (105) speakers opposed it and one hundred and sixty- six (166) written comments were received with nine (9) in support and one hundred and fifty-seven (157) in opposition. After hearing all relevant testimony from staff, the public and the City's consultant team, the City Council voted that the applications go back to the Planning Commission for reconsideration after further consultation with the community; and WHEREAS, in June 2019, the applicant submitted a revised plan consisting of development 347 multi -family units (59 dwelling units per acre), with 642 parking spaces (1.85 parking spaces per unit) and parking capacity at 2.0 spaces per unit, within a 4- story residential building wrapped around a five -level parking structure with an amenity deck on the sixth -level, private open space, and redesigned the intersection of Main Street and Walkie Way/Santiago Park Drive to provide access to the project on a 5.93- acre site (the "June Revised Plan"); and WHEREAS, on August 12, 2019, the Planning Commission conducted a duly noticed public hearing to consider the June Revised Plan. At the meeting, seventy- seven (77) members of the expressed opposition; nine (9) supported the project, and one speaker was neutral. In addition, one -hundred (100) written comments were received with six (6) in support and ninety-four (94) in opposition. After hearing all relevant testimony from staff, the public and the City's consultant team, the Planning Commission vote resulted in an impasse; and WHEREAS, in October 2019, in response to comments received the applicant submitted a further revised plan. including redevelopment of the 5.93-acre site with 444,534 square feet of total development, including 277,281 square feet of residential buildings that would provide 256 for -rent multi -family residential units and a 167,253 square foot central parking structure and a 284 space surface level parking lot which also reduced the Project's height, increased the Project's setbacks, and modified the Project entrance ("October Modified Project"); and WHEREAS, the City has prepared "Clarifications to the Final EIR" to determine if the Modified Project would result in new or substantially increased environmental effects Ordinance No. NS-2980 Page 3 of 10 11 A-65 than those analyzed in the EIR such that the EIR would require recirculation prior to its certification; and WHEREAS, the Clarifications to the Final EIR include detailed analysis, based upon substantial evidence, that demonstrate that the Modified Project would not result in any new or substantially greater impacts than are disclosed in the EIR, no new mitigation measures beyond those identified in the EIR are required, and no additional feasible alternatives or mitigation measures considerably different from others previously analyzed would clearly lessen the significant environmental impacts of the project; and WHEREAS, on October 28, 2019, the Planning Commission conducted a duly noticed public hearing to consider the EIR, Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10 and solicited comments on the EIR. At the meeting, sixty-two (62) expressed opposition and two (2) in expressed support the project. In addition, ninety-eight (98) individuals submitted comments with ninety-four (94) in opposition and four (4) in support; and WHEREAS, after hearing all relevant testimony from staff, the public and the City's consultant team, the Planning Commission by a vote of 3:2, voted to recommend denial of the project. Since the entitlements require final action by the City Council, the actions were forwarded to the City Council; and WHEREAS, on November 8, 2019, the City gave public notice of a City Council public hearing for consideration of Amendment Application No. 2018-10 by advertising in the Orange County Register, a newspaper of general circulation, and by mailing to owners of property and residents within 500 feet of the Project; and WHEREAS, on November 19, 2019, the City Council conducted a duly noticed public hearing to consider General Plan Amendment No. 2018-06, Amendment Application No. 2018-10, and Development Agreement No. 2018-01, and the Environmental Impact Report for the Project, at which hearing members of the public were afforded an opportunity to comment upon Amendment Application No. 2018-10; and NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES RESOLVE, DETERMINE, FIND, AND ORDER AS FOLLOWS: SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT: The City Council has reviewed and certified Environmental Impact Report No. 2018-01; adopted the Mitigation Monitoring and Reporting Program (MMRP); and adopted the Statement of Overriding Consideration for the proposed Project, including this Amendment Application No. 2018-10. SECTION 3. AMENDMENT APPLICATION: The Amendment Application consists of amendments to the zoning map (SDM 6-5-9) and adoption of Specific Development Ordinance No. NS-2980 Page 4 of 10 11 A-66 No. 93, as shown in Exhibit A and Exhibit B respectively, attached hereto and incorporated herein by reference. SECTION 4. LOCATION OF DOCUMENTS: The Amendment Application, Environmental Impact Report and all supporting documents are on file and available for public review at Santa Ana City Hall, 20 Civic Center Plaza, Santa Ana, California 92702. SECTION 5. GENERAL PLAN CONSISTENCY: The City Council hereby finds that the proposed Amendment Application is compatible with the objectives, policies, and general plan land use programs as amended by General Plan Amendment No. 2018- 06 in that: A. The proposed Amendment Application will not adversely affect the public health, safety, and welfare in that the Amendment Application will not result in incompatible land uses on adjacent properties, inconsistencies with any General Plan goals or policies, or adverse impacts to the environment. B. The amendment application to change the zoning designation from Professional (P) to Specific Development 93 (SD-93) is consistent with Santa Ana Municipal Code section 41-593.1 for the following reasons: (1) Protecting and enhancing the value of properties by encouraging the use of good design principles and concepts, as related to the division of property, site planning and individual improvements with full recognition of the significance and effect they have on the proper planning and development of adjacent and nearby properties. The site plan has been designed with the vehicular entrance on Main Street away from the residential neighborhood to the south and east. In addition, the parking structure and rooftop amenity deck, which are the tallest building elements are positioned closer to Main Street, with residential buildings wrapped around the structure to screen it. There is a 90-foot rear (east) setback requirement which creates a buffer between the multi -family buildings and single-family homes. In addition, the existing healthy trees along the east property line will be protected in place and new mature trees will be planted or replaced as needed. The wall along the eastern property line will be increased to 8-feet in height and the east side of the building will tier in height from two, three, to four stories to provide a transition in height when compared to the single -story residential dwellings to the east. The building is also designed with courtyards rather than one large "box" to provide open space and variation in the massing. Furthermore, the units along Edgewood Road will have patios with access to the Ordinance No. NS-2980 Page 5 of 10 11 A-67 street to mimic single-family dwelling porches and to connect the project with the residential neighborhood. (2) Encouraging, securing and maintaining the orderly and harmonious appearance, attractiveness and aesthetic development of structures and grounds in order that the most appropriate use and value thereof be determined and protected. The property is a 5.93-acre site with street frontage along Main Street, a major urban corridor with cultural, educational, employment and retail destinations such as the Bowers Museum, Discovery Science Center, Main Place Mall and in the City of Orange; the Children's Hospital of Orange County and St. Joseph's Hospital of Orange County. Therefore, the residential development would be within close proximity of major employment centers and retail establishments. The site is also located just north of the Santa Ana (1-5) freeway which provides regional access to and from the City. The multi -storied development will complement the nearby mid -rise office buildings located along Main Street to the north and west of the site and the multi -family residential use supports a mixed -use setting. In addition, the new building will have a variety of materials such as multiple brick veneers, stone veneer, metal panels, ceramic tile, metal canopies, flat and metal seamed roofs to assist in creating a modern contemporary design. The residential development will replace a potential office use with a residential use. Although a professional office use is typically considered a low intensity land use when compared to commercial or industrial uses, issues with parking, traffic and noise may still arise. When comparing land uses multi -family uses are more compatible in nature with single- family residential neighborhoods than office uses. (3) Providing a method whereby specific development plans are to be based on the general plan as well as other regulations, programs, and legislation as may in the judgment of the city be required for the systematic execution of the general plan. With approval of General Plan Amendment No. 2018-06, the Project will be consistent with the General Plan Land Use Element. Although the Project requires an amendment to the Land Use Element to allow for residential use of the property, the Project still supports and is consistent with several other overarching goals and policies of the General Plan. For example, as described in the associated General Plan Amendment No. 2018-06: Housing Element Goal 2, to create diversity of quality housing, affordability levels, and living experiences that Ordinance No. NS-2980 Page 6 of 10 11 A-68 accommodate Santa Ana's residents and workforce of all household types, income levels, and age groups to foster an inclusive community. Land Use Element Goal 4, to protect and enhance development sites and districts which are unique community assets that enhance the quality of life. Urban Design Element, Goal 1, to improve the physical appearance of the City through development of districts that project a sense of place, positive community image, and quality environment. (4) Recognizing the interdependence of land values and aesthetics and providing a method to implement this interdependence in order to maintain the values of surrounding properties and improvements and encouraging excellence of property development, compatible with the general plan for, and character of, the city, with due regard for the public and private interests involved. Development of the Project would result in a substantial change in views and a significant and unavoidable impact to aesthetics. However, the Project will replace an over 30-year old structure with a modern building with enhanced landscaping contributing to the character of the City. Furthermore, a Development Agreement between the developer/property owner and the City of Santa Ana has been entered into. Public benefits of the agreement include: public art, Santiago Park for improvements, Park Santiago Neighborhood benefits including access to on -site amenities for Park Santiago residents, security patrol of the residential neighborhood and Santiago Park, and Park Santiago Neighborhood for traffic improvements and calming such as street calming, traffic diversion, and street lights. (5) Insuring that the public benefits derived from expenditures of public funds for improvements and beautification of streets and public facilities shall be protected by exercise of reasonable controls over the character and design of private buildings, structures and open spaces. The multi -family residential development will utilize existing water, sewer, and drainage infrastructure and will not result in the expansion of infrastructure. In addition, the Project will not result in the expansion of new or altered police or fire facilities. The Project will be subject to utility user tax, property taxes based on the valuation of the new construction and management company business taxes. The building facades and new landscaping are designed to deter graffiti, existing sidewalks will be removed and replaced with new sidewalks that are constructed to City standards, new street lights will be installed and the City's Building Security Ordinance will be implemented which includes Ordinance No. NS-2980 Page 7 of 10 11 A-69 security and crime preventing measures to help reduce City expenditures on public services and maintenance. In addition, the residential development will be subject to all required development impact fees. SECTION 6. INDEMNIFICATION. The Applicant shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, and other and proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively "Actions"), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve, which approval will not be unreasonably withheld, the legal counsel providing the City's defense, and that Applicant shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Applicant of any Action brought and City shall cooperate with Applicant in the defense of the Action. SECTION 7. If any section, subsection, sentence, clause, phrase or portion of this ordinance for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. SECTION 8. CITY COUNCIL ACTIONS: The City Council hereby takes the following actions: 1. The City Council hereby adopts an Ordinance approving Amendment Application No. 2018-10 as follows: A. Subject to compliance with the Mitigation Monitoring and Reporting Ordinance No. NS-2980 Page 8 of 10 11 A-70 Program, the property at 2525 North Main Street shall be amended to Specific Development No. 93 and Specific Development No. 93 plan shall be adopted as set forth in Exhibit A and Exhibit B, attached hereto and incorporated herein by reference. B. The Amendment Application shall not take effect unless and until Environmental Impact Report No. 2018-01 and General Plan Amendment No. 2018-06, are each certified and approved by the City Council, and the associated Development Agreement No. 2018-01 is approved by the City Council and executed by all parties thereto. SECTION 9. EXECUTION OF ORDINANCE. The Mayor shall sign this Ordinance and the Clerk of the Council shall attest and certify to the adoption thereof. ADOPTED this day of , 2019. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney Lisa Storck Assistant City Attorney Miguel A. Pulido Mayor Ordinance No. NS-2980 Page 9 of 10 11 A-71 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-2980 to be the original ordinance adopted by the City Council of the City of Santa Ana on _ 2019 and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana Ordinance No. NS-2980 Page 10 of 10 11 A-72 EXHIBIT A Y 31-0-9 31-49� I < y M�µ0{LY LN A $ v�MxMeRw FAIRHAVENA j WJNVu[E OR o C1 R1 2 R4 $ a So 1 nvax lx n1F! fl1 _ Al nxlx R1 Nt6rxw W Al Al R1 $ Rtb PI R1 R1 R1 S ARovEmsxi si o „ o E 'SFQ Cil vEWR1 S R1 ncv4 w RI.& o M mcExMoxll R1 i R1 wsRm3 F em $ @ Rr E S l rgT RI eEEG�Nn o [ e S Rl BEECx o 3: R1 u R1 R1 s R1 s } BEECIMbOR i - p R1 A i Al LL Rl A.ST uaENST R1 Rl ^ u CUM w c4nA Avf' Ri Rx F2 Rl Q W O Rl Qi caA: n SWTn c4PA cv mrts 1p Wi e=.._ xt R3_ 5 RI R1 V8 !(� 8 nU Ra is av 5 W CNAV 9.iF40 py nr iinw av rM0 R2 BrKFALO Rv Rl ftl 4euw nv Rl Cl-MO IN. sT 3 R1 8 R1 � S naA9 RI caTwru rry ¢ W R1 Rl R1 Rl a I 11 O '-P3 $ FIsi SF Rl Iz a Ft R1 m x ® ST m sT �. mM °! R1 14 R1 R1 19iX ci Cl*�JW R1 "TXS C R1 RI R1.9 • C CtMO R1 RI ,. itlM si 1 c --. •. &R2TMCl-MO Ct#10 CIMOII C1 NSI11 GSCt CS a 17TH ST _ C1 C1 C1 y C1 L5 CS SVS SP) m SG] g ;,o 1-5-9 C wror onc�onnne 15-9 0< ZONING DISTRICTS Al GENERAL AGRICULTURAL CSM SOUTH MAIN STREET COMMERCIAL DIST. R2 TWD- FAMILY RESIDENCE -B PARKING MODIFICATION Cl COMMUNLYCOMMERCIAL GC GOVERNMENT CENTER R3 MULTIPLE- FAMILY RESIDENCE -GZ OVERLAY ZONE C1MD COMMUNITY COMMERCIAL - MUSEUM DST. M1 LIGHT INDUSTRIAL RA SUBURBAN APARTMENT PLANNED RESIDENTIAL PRO DEVELOPMENT C2 GENERAL COMMERCIAL M2 HEAVY INDUSTRIAL RE RESIDENTIAL ESTATE C4 PLANNED SHOPPING CENTER 0 OPENSPACE SD SPECIFIC DEVELOPMENT -HD2 HEIGHT DISTRICT II C5 ARTERIAL COMMERCIAL P PROFESSIONAL SP SPECIFIC PLAN CR COMMERCIAL RESIDENTIAL Rl SINGLE- FAMILY RESIDENCE fim SECTIONAL DISTRICT MAP: 6-5-9 e CITY OF SANTA ANA. CALIFORNIA 11 A-73 EXHIBIT B SPECIFIC DEVELOPMENT NO. 93 2525 North Main Street Development Project SECTION 1 — APPLICABILITY OF ORDINANCE The Specific Development Zoning District No. 93 (SD-93) for the 2525 North Main Street development project is authorized by Chapter 41, Division 26 Section 41-593 et seq. of the Santa Ana Municipal Code. SD-93 contains specific standards and regulations for the purpose of establishing land use regulations and development and operational standards for the project site. All other applicable chapters, articles, and sections of the Santa Ana Municipal Code are in effect unless expressly superseded by regulations contained in this ordinance. The boundaries of the 2525 North Main Street development project shall be defined pursuant to Attachment 1 (attached hereto and incorporated a though fully set forth herein). The 2525 North Main Street Development District shall have two zones, Zone 1 and Zone 2, as depicted in Attachment 1. SECTION 2 — PURPOSE The Specific Development Plan No. 93 for the 2525 North Main Street project consists of standards and regulations established for the purpose of protecting the health, safety, and general welfare of the people of the City of Santa Ana by promoting and enhancing the value of property and encouraging the orderly development of the property. ObeectiXes The objectives of the 2525 North Main Street project specific development plan include provisions of the following: Promote the City's image as providing high -quality residential projects for individuals and families of all income groups. 2. Create a clean and safe environment for the City's residents, workers, and visitors. Contribute to the North Main Street corridor by providing a high density residential development that supports nearby cultural, office and commercial uses. 4. Provide regulations that allow development, in response to market conditions while achieving overall City and community goals. Provide parking opportunities for nearby museum uses and/or commercial uses. 1 of 12 11 A-74 SECTION 3 — Uses permitted in Zone 1 The following uses are permitted in the SD-93 district: (a) A maximum of 256 multiple -family dwelling units not exceeding a density of 58 dwelling units/acre. (1) The unit mix shall be comprised of: a. 70% studio and one -bedroom units b. 30% two -bedroom and three -bedroom units (2) Unit square footages ranging from a. 556 to 592 square foot studios b. 633 to 930 square foot one -bedrooms c. 909 to 1,179 square foot two -bedrooms d. 1,362 square foot three -bedrooms (b) Home occupations, pursuant to section 41-192.1 of the Santa Ana Municipal Code. (c) Accessory recreational rooms, dog wash, club room, fitness room, wellness center, bike rooms, pools and spas for residential use. SECTION 4 — Uses subject to a conditional use permit in Zone 1 (a) Childcare facilities caring for more than eight (8), but no more than fourteen (14) children. SECTION 5 —,Uses permitted in Zone 2 (a) Surface parking lot with 180 spaces (approximate 1.4 acre lot) to be used by a commercial, museum, or professional offices uses. (b) Parking may be shared with the residential development through a shared parking agreement. (c) All other uses and/or structures are prohibited. SECTION 6 — Maximum permitted floor area ratio (FAR) The maximum authorized building intensity for the 2525 North Main Street project is a floor area ratio (FAR) of 1.43, including residential areas, community -serving areas (e.g., leasing office, gym and club room) and interior corridors. SECTION 7 — Minimum lot size in Specific Development No. 93 The minimum lot size is 1.4 acres. 2of12 11 A-75 SECTION 8 — Minimum street frontage in Specific Development No. 93 Lots shall have a minimum street frontage of at least 250 feet. SECTION 9 — Building height in Specific Development No. 93 (a) No residential structure shall exceed 50 feet (four stories) in height, as measured from the lowest adjacent grade of the structure to the top of the structure. (b) The six level parking structure (five levels with one level subterranean) and amenity deck shall not exceed 61 feet as measured from the lowest adjacent grade to the top of the structure. (c) The stair tower and elevator tower shall not exceed 74 feet as measured from the lowest adjacent grade to the top of structure. (d) Along the east property line the building shall tier from two, three, and four stories as shown on the approved site plan. SECTION 10 — Setback standards in Specific Development No. 93 (a) North setback. A minimum building setback of ten (10) feet shall be provided between the property line and buildings along Santiago Park. (b) South setback. A minimum building setback of one hundred thirty-four (134) feet shall be provided from Edgewood Road. (c) West setback. A minimum building setback of twelve (12) feet shall be provided between the property line and buildings along Main Street. (d) East setback. A minimum building setback of ninety (90) feet shall be provided between the property line and buildings. SECTION 11 — Off-street parking standard in Specific Development No. 93 (a) The minimum off-street parking requirements for the project are as follows: (1) 2.0 spaces per unit shall be provided (407 spaces within the parking structure and 104 space surface level parking lot). (2) Parking stalls shall not be less than eight (8) feet six (6) inches wide and eighteen (18) feet long. Double -striping is required, with the width of stalls measured from lines midway between each pair of stripes. Structural, mechanical, utility or similar appurtenances are only permitted adjacent to required stall areas if the required width of the stall is increased at least six (6) inches and if the appurtenance is not located 3 of 12 11 A-76 so as to interfere with safe and free parking movement, car door opening, or of visibility. (3) Aisles to and from parking stalls shall not be less than: Twenty-three (23) feet wide for 90-degree parking. (4) Drive aisles shall not dead-end; a turn -around method be provided to allow cars to exit if all stalls are occupied (5) The interior of the parking structure without natural lighting shall be painted white or shall be equipped with lighting devices which will provide a minimum maintained two (2) footcandle of light on the parking surface during hours of darkness. Subterranean parking areas shall maintain lighting twenty-four (24) hours a day. Lighting devices shall be protected by vandal resistant covers. (6) A minimum of ten (10) bicycle spaces shall be provided onsite. The design and materials shall comply with the approved materials board submitted for the project during building plan check. (7) Prior to submittal into building plan check, a parking management plan shall be submitted to the Planning Division for review, identifying parking per unit, and guest parking. The plan is subject to approval of the Executive Director of the Planning and Building Agency. Onsite parking shall be provided for residents and visitors of the Project and the parking demand of the Project site shall be actively monitored. Property owner "Owner" shall continually monitor and take appropriate measures to manage the parking demand of the Project site to mitigate the use of offsite parking spaces on private or public properties and/or right-of-way. SECTION 12 — Vehicular Access in Specific Development No. 93 The development shall prepare all necessary plans per City Standards and to the satisfaction of the City Engineer to: (a) Provide public access via Walkie Way/Park Santiago Drive and Main Street. The Santiago Park Entrance design and construction shall be subject to the review and approval of the City's Planning & Building, Public Works, and Parks, Recreation and Community Services Agency Directors, including residential units to front onto Santiago Park, Main Street, and the Santiago Park Drive entrance. (b) Reconstruct the existing intersection of Main Street and Walkie Way/Park Santiago Drive to accommodate the southerly relocation the east leg of the intersection, including, but not limited to: Removal of all portions of the existing east leg of the intersection. Construction of PCC curb, gutter and sidewalk along the east side of Main Street. iii. Reconstruct pavement within the intersection. 4of12 11 A-77 iv. Modification of the Traffic Signal for the Walkie Way/Park Santiago Drive intersection for the intended signal operation shall include new signals poles, traffic cabinet, install conduits and wiring, traffic signal, interconnect, provide Accessible Pedestrian Signals pedestrian push buttons, vehicle/bike video detection, signing and striping as needed to accommodate the proposed entrance to the development and Santiago Park. (c) Remove and reconstruct the raised -curb median in Main Street between Walkie Way and Edgewood Road to provide increased left turn pocket lengths per Attachment 2, including, but not limited to: i. Reconstruct asphalt pavement in Main Street to maintain standard cross slopes, positive drainage and smooth vertical transitions. ii. Provide landscaping and irrigation in the median. iii. Modify the existing channelization striping extending through intersections. (d) Coordinate with Caltrans to enter into a Cooperative Agreement with City of Santa Ana to implement traffic signal synchronization timing along Main Street between the 1-5 ramps and the modified traffic signal at Main Street and Walkie Way -Santiago Park to enhance traffic flow and reduce congestions between city streets and the State Highway System. The scope of work shall include but not limited to preparation of cooperative agreement, any required improvements, preparation and implementation of timing plans, and required permits. (e) The Emergency Vehicular Access Lane (Fire Lane) with access to Edgewood Road shall be gated per Orange County Fire Authority and City Public Works Agency requirements and standards. The emergency lane shall not be used for trash staging, trash loading and/or move-ins/outs. No other vehicular access or curb approach openings will be approved on Edgewood Road for the project. SECTION 13 — Open Space standard in Specific Development_No. 93 (a) Pedestrian Walkways and Open Space. The project will provide a minimum of 15% of the total lot size shall be open space in the form of common, landscaped open space areas, pools, spas, deck, courtyard and lobby, interior community room, dining room, gym, business room, etc. (b) Courtyards. (1) East courtyards shall be a minimum of 34 feet wide by 100 feet in depth and shall not contain any pools, spas or recreational rooms. (2) West courtyard shall be a minimum of 48 feet wide by 58 feet in depth. (c) Private Open Space. Each residential unit shall have a patio or balcony a minimum of 50 square feet in size. 5of12 11 A-78 SECTION 14 — Walls/Fences standard in Specific Development No. 93 (a) East property line. Prior to issuance of the first building permit, a solid block wall with a minimum height of eight (8) feet shall be constructed along the east property line. The block wall shall be designed to contain a decorative cap, regularly -spaced decorative pilasters, and a decorative finish in accordance to the design provisions contained within the most recent version of the City's design guidelines. (b) North property line. Prior to the issuance of the first building permit, a new wrought iron fence shall be constructed. The fence shall also incorporate decorative pilasters located a maximum of 50 feet on center. Any walls and/or fences are limited to eight (8) feet in height. (c) South and West property line walls are prohibited. Within the front and street side setbacks, walls and/or fences shall be limited to four (4) feet in height. SECTION 15 — Landscape standard in Specific Development No. 93 (a) A Landscape Plan prepared by a licensed landscape architect shall be submitted to the Planning Division for review and approval prior to the issuance of building permits. The Irrigation Plan shall include an irrigation system layout with the location of controllers and points of connection with data on valve sizes and gallons per minute (G.P.M.), the size and location of sleeves and all spray heads, including the location of conventional systems and drip systems; an irrigation legend with complete specifications; irrigation notes and construction details of all assemblies and components; a recommended irrigation schedule, preferably on an annual basis; and a summary block on the initial page of submitted plans that will present the above information clearly and accurately. The landscape plan shall include a Plant Legend containing: plant symbol, scientific name of plant material, common name of plant material, plant container size, and plant spacing. Very low, low and medium water usage plant materials are encouraged. The landscape plan shall provide a cross section of the eastern planter showing the planter at time of planting, after five (5) years and at full maturity. The cross section shall demonstrate the landscaping will adequately screen the project from the adjacent residential uses along the eastern portion of the Property. A minimum size of 36-inch box trees shall be planted along street setbacks, open space areas and shared parking areas. (b) Per the arborist report dated May 4, 2018: (1) Retain and protect in place the existing eleven (11) healthy Ficus benjamina trees adjacent to the east property line. (2) Remove the existing eight (8) unhealthy trees (Liquidambar styracii lua) in the eastern planter and plant eight (8) minimum size of 60-inch box trees in their place. 6of12 11 A-79 (3) Plant new vertical and canopy specimen trees with a minimum size of 48- inch box, 20-feet on center in the east planter within 150 feet of the front property line and within 150 feet of the rear property line. (4) The planter along the east property line shall be sized to allow for future growth and health of the trees. (5) To the extent feasible, all other healthy mature trees on the property shall be protected and preserved. If the perseveration of the existing healthy, mature trees is not feasible because of the location of the approved structures on the property, the Owner shall work with Staff to evaluate the feasibility of relocating the healthy tree(s) to other locations on the property. (c) Project Landscaping: Landscaping shall be compliant with the City of Santa Ana's Landscape Water Conservation Ordinance Chapter 41, Article XVI of the Santa Ana Municipal Code. All landscape areas shall have a fully automatic irrigation system (including spray or drip) as required by the City of Santa Ana Landscape Water Conservation Ordinance. (d) All meters shall be appropriately screened from public view with trellis work and vines or hedge -type shrubs, or be incorporated into the residential structure. (e) Installation: Landscaping for the project shall be completed in phases by building and shall be installed and inspected prior to occupancy of units within that building. The Owner shall be responsible for maintaining all common area landscaping within the development. (f) Maintenance: All plant material shall be maintained per Section 41-609 of the Santa Ana Municipal Code. SECTION 16 — Residential Si2na2e in Specific Development No. 93 (a) Signage for the project shall be consistent with Section 41-868 of the Santa Ana Municipal Code. SECTION 17 — Architectural Design in Specific Development No. 93 (a) Exterior materials. Prior to submittal into building plan check, the Owner shall submit revised architectural elevations subject to the review and approval of the Executive Director of the Planning and Building Agency. Exterior materials and finishes for the project shall comply with the approved materials board submitted for the project including stone veneer, brick veneer, ceramic tile, metal canopies, flat and metal seamed roofs. All trash enclosures and similar ancillary structures shall match the texture, material and color of the building. (1) The east building wall windows (at the 90 foot building setback) shall be opaque or clerestory (above eye level) windows. 7 of 12 11 A-80 (2) The east wall of the parking structure shall incorporate screen materials and be designed to screen the views from the amenity deck or parking structure to the neighborhood. (b) Green Building. Alternative Transportation and Energy Source, Resource Conservation, and LEED Certification. The project shall be constructed to Silver Standard or better LEED equivalent and shall at the minimum, incorporate bike lockers, bike sharing programing, electric vehicle charging stations, rain capturing systems, grey water capturing systems, and to the extent feasible, automobile sharing programing. (c) Public Art. Public Art shall be installed, and maintained with a value equivalent to one- half of one percent (0.5%) of the total construction cost of the Project. Total construction cost shall mean all design, engineering and construction costs. A public art plan shall be prepared and submitted to the City no later than one hundred eight (180) days before final approval for occupancy or the issuance of a certificate of occupancy and the approved art shall be installed prior to final approval for occupancy of the issuance of a Certificate of Occupancy for the Project. (d) Storage. A minimum of 250 cubic feet of storage, in addition to interior bedroom closets, shall be provided with minimum dimensions of 4 feet by 8 feet per unit. (e) Hardscape materials. Enhanced paving materials shall be installed at the Main Street driveway entrance. The actual paving materials shall be approved by the Planning Division. (f) Lighting standards/fixtures. The light fixtures are to integrate design elements of the building and landscape architecture. Lighting is to be designed to confine the direct rays of the artificial lighting within the boundaries of the development. Specifications of light standards/fixtures and photometrics plan shall be submitted to Planning Division for review and approval by the Planning Division prior to the issuance of building permits. (g) Composite Utility Plan. Composite utilities shall not be allowed within required parking, turnaround and landscape areas or on any fagade facing a public street. (h) Mechanical Equipment, Appurtenances, and Conduits. All mechanical equipment, heating, ventilation, air conditioning (HVAC) units, satellite dish systems, solar panels, thermal solar heaters, utility meters, above ground utility and fire safety connections will be, screened, located out of public view or be architectural integrated into the project design within designated rooms, inside walls, behind parapets, or through a combination of landscape and hardscape materials. (i) Trash Enclosures. Trash bins shall be stored in designated trash enclosures. There shall be an onsite designated trash staging area only to be used on service days and the staging area and bins shall not disrupt vehicular use of the driveway. The minimum requirements needed to service the location shall be clearly indicated on the plans and 8of12 11 A-81 subject to the approval of the Public Works Agency. SECTION 18 —Property Maintenance in Specific Development No. 93 (a) Onsite Property Manager. The Project shall include 24-hour on -site Property Management services and personnel. Up-to-date 24-hour contact information for the on -site personnel shall be provided to the following City Agencies on an ongoing basis: (1) Police Department (2) Fire Authority (3) Planning and Building Agency (4) Community Development Agency (b) Maintenance. The property shall be maintained free of trash, debris and graffiti. Graffiti shall be removed within 24-hours after its appearance in accordance with Section 10- 227 of the Santa Ana Municipal Code. (c) Crime Free Housing. Prior to submittal into building plan check, a Crime Free Housing Plan shall be submitted for review. The Plan shall be approved prior to occupancy of the first unit and shall be implemented and administered by the Owner. (d) Building Security. All structures and parking lots shall comply with the provisions of Chapter 8, Article II, Division 3 of the Santa Ana Municipal Code (Building Security Ordinance). (e) Emergency Evacuation Plan. An approved Emergency Evacuation Plan (EEP) from City Police and Fire Protection agencies shall be on file for the project. Up-to-date 24- hour emergency contact information for the on -site personnel shall be provided to the City on an ongoing basis and the approved EEP shall be kept onsite and also be submitted to the following City Agencies: (1) Police Department (2) Fire Authority (3) Planning and Building Agency (4) Community Development Agency (f) On Going Property Maintenance. Developer (and the owner of the property upon which the authorized use and/or authorized improvements are located if different from the Developer) shall execute a maintenance agreement with the City of Santa Ana which shall be recorded against the property and which shall be in a form reasonably satisfactory to the City Attorney. The maintenance agreement shall contain covenants, conditions and restrictions relating to the following: (1) Compliance with operational conditions applicable during any period(s) of construction or major repair (e.g., proper screening and securing of the construction site; implementation of proper erosion control, dust control and noise mitigation measure; adherence to approved project phasing etc.). 9of12 11 A-82 (2) Compliance with ongoing operational conditions, requirements and restrictions, as applicable (including but not limited to hours of operation, security requirements, the proper storage and disposal of trash and debris, enforcement of the parking management plan, and/or restrictions on certain uses). (3) Ongoing compliance with approved design and construction parameters, signage parameters and restrictions as well as landscape designs, as applicable. (4) Ongoing maintenance, repair and upkeep of the property and all improvements located thereupon at all times (including but not limited to controls on the proliferation of trash and debris about the property; the proper and timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly accessible bathrooms and bathroom fixtures, landscaping and related landscape improvements and the like, as applicable). (5) If Developer and the owner of the property are different (e.g., if the applicant is a tenant or licensee of the property or any portion thereof), both the applicant and the owner of the property shall be signatories to the maintenance agreement and both shall be jointly and severally liable for compliance with its terms. (6) The maintenance agreement shall further provide that any party responsible for complying with its terms shall not assign its ownership interest in the property or any interest in any lease, sublease, license or sublicense, unless the prospective assignee agrees in writing to assume all of the duties and obligations and responsibilities set forth under the maintenance agreement. (7) The maintenance agreement shall contain provisions relating to the enforcement of its conditions by the City and shall also contain provisions authorizing the City to recover costs and expenses which the City may incur arising out of any enforcement and/or remediation efforts which the City may undertake in order to cure any deficiency in maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of the property. The maintenance agreement shall further provide that any unreimbursed costs and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use restrictions shall become a lien upon the property in an amount equivalent to the actual costs and/or expense incurred by the City. (8) The execution and recordation of the maintenance agreement shall be a condition precedent to the issuance of final approval for any construction permit related to this entitlement. 10 of 12 11 A-83 i ATTACHMENT 1 " L.- 11 of 12 11 A-84 ATTACHMENT 2 12 of 12 11 A-85 EXHIBIT 3 November 19, 2019 VIA HAND DELIVERY VIA E-MAIL CITYCOUNCIL@SANTA-ANA.ORG Santa Ana City Council 20 Civic Center Plaza P.O. Box 1988, M31 Santa Ana, CA 92701 Newmeyer & Dillion 1. LP 6q5 Dove Street Fifth Floor Newport Beach, CA 92660 949 854 7000 Charles S. Krolikowski Charles.Krolikowski@ndif.com Re: Magnolia at the Park Multi -Family Residential Project (the "Addington") Located at 2525 N. Main Street Final Environmental Impact Report, No. 2018-01 (SCH No. 2018021031) Honorable Mayor Pulido and Members of the City Council: On behalf of the Park Santiago Neighborhood Association ("PSNA"), a coalition of interested property located in the City of Santa Ana ("City"), and in accordance with the California Environmental Quality Act ("CEQA"), we submit this written comment for consideration and inclusion in the administrative record in advance of tonight's hearing on the proposed residential development project commonly referred to as Magnolia at the Park Multi -Family Residential Project or the Addington, located at 2525 N. Main Street ("Project"). This evening, the Santa Ana City Council ("City Council") must consider, after the Planning Commission's denial, the Project's proposed entitlements and certification of the Final Environmental Impact Report, No. 2018-01 (SCH No. 2018021031) ("FEIR"). PSNA respectfully requests that the Honorable Mayor and Members of the City Council affirm the Planning Commission's denial in accordance with recommendation one, both on the grounds outlined in PSNA's November 18, 2019, letter and on the grounds detailed herein. PSNA submits that the Planning Commission correctly rejected the hastily modified Project, including its FEIR. Indeed, it is the City's responsibility to independently ensure that the FEIR meets CEQA's requirements. The City, as lead agency, must guarantee that the FEIR sufficiently identifies and mitigates for the Project's significant environmental impacts. There is no excuse for the City's failure to do so. As such, the City Council should reject the proposed entitlements and uphold the Planning Commission's decision, as they are inconsistent with the policies of the City's General Plan ("General Plan") and are not supported by a legally adequate FEIR. 3917.101 / 8509864.1 Las Vegas I Newport Beach I Walnut Creek 11 A-86 newmeyerdillion.com Honorable Mayor Pulido Santa Ana City Council November 19, 2019 Page 2 The FEIR is insufficient in many ways. The FEIR is legally inadequate because the Project description incorporates significant new information without providing an opportunity for meaningful public review and comment. At the same time, the FEIR still fails to meaningfully address or respond to many of the 163 written comments. Thus, the City Council should take no action on the FEIR, prepare its own, independent EIR, and, at the very least, recirculate the FEIR to allow an opportunity for truly meaningful public comment. If the City certifies this FEIR as -is, it will remain subject to significant challenge. The City may base its decision not to certify the FEIR on its failure to comply with standards governing the legal adequacy of EIRs generally. It may also determine that the FEIR is inadequate because revisions to the FEIR are required to respond to changes to the Project, changes in circumstances, or new information arising after the FOR was completed. At the very least, the FEIR should be recirculated for proper public comment before it is certified. In addition to its written objection to any Project approval, this written comment also serves as PSNA's formal request for written notice in advance of any future meetings regarding the City's consideration of the Project, including, without limitation, the filing of any notice of determination related to the FEIR. 1. THE PROJECT'S HISTORY, MULTIPLE MODIFICATIONS, AND SOLICITATION OF SURROUNDING RESIDENTIAL PROPERTY OWNERS FOR THEIR SUPPORT. The Project's history, compared to its most current iteration, is quite different from when the Planning Commission first held a public hearing to consider the Applicant's then - proposed 496-unit (84 per acre) development project. (See City Staff Rept., Oct. 28, 2019, 2-1-2-3 [discussing Project background and various modifications].) City staff recommended a reduction in development density and denial of the Project as it was then proposed. (See City Staff Rept., Oct. 28, 2019, 2-1-2-3.) The City Council agreed and the Applicant modified the Project. (City Staff Rept., Oct. 28, 2019, 2-1-2-3.) This cycle continued until the Applicant again informed City staff that it would make further modifications before again seeking to proceed before City Council. (See City Staff Rept., Oct. 28, 2019, 2-1-2-3.) The latest modifications have culminated in the present, unrecognizable and rashly considered Project —a far cry from the initial Project as considered and evaluated in the FEIR. (See City Staff Rept., Oct. 28, 2019, 2-3-2-4 [modified Project in its current iteration].) The modified Project remains on approximately 5.93 acres of property and would still require the complete demolition of an existing two-story, 81,172 square foot office building. (See City Staff Rept., Oct. 28, 2019, 2-4, Tbl. 1 [project location information]; see also, id. at p. 2-5 [discussing demolition of existing office building].) The intensity of the proposed use and requisite Project construction (demolition of an 3917.101 18509864.1 2 11 A-87 Honorable Mayor Pulido Santa Ana City Council November 19, 2019 Page 3 existing building) stands in harsh contrast to the surrounding, far less intensive land uses, including the designated open space "Santiago Park" to the north and the single family residential homes — R1 to the east and south. (See City Staff Rept., Oct. 28, 2019, 2-4, Tbl. 1 [Project location information and adjacent uses].) On or about October 28, 2019, the modified Project came before the Planning Commission for review. (See City Staff Rept., Oct. 28, 2019, 2-1 [listing date of hearing].) The Planning Commission denied approval of the Project. (See Official Video of Planning Comm'n Regular Meeting.)' In its present iteration before the City Council, the Project purports to construct a 256- unit multifamily housing project at 58 dwelling units per acre, with 180 surface parking spaces proposed. (See City Staff Rept., Oct. 28, 2019, 2-1, 2-4, Tbl. 1, 2-5, passim.) Entitlements requested include the following: • Adoption of an ordinance approving a development agreement between the Applicant and the City, identified as Development Agreement No. 2018-01; • Adoption of a resolution approving a general plan amendment to re -designate the property from Professional & Administrative Office ("PAO") to District Center ("DC"), identified as General Plan Amendment No. 2018-06; • Adoption of an ordinance approving an amendment application to rezone the property from Professional ("P") to Specific Development No. 93 ("SD-93"), despite language in Division 26 that requires any specific development to maintain the values of the surrounding properties; and, • Adoption of a resolution certifying the FEIR, including adoption of environmental findings of fact under the California Environmental Quality Act ("CEQA"), adoption of a purported "Clarification to the Final EIR" (City Staff Rept. at p. 2-2), a Statement of Overriding Considerations, and adoption of a Mitigation Monitoring and Reporting Program. The Project will cause a substantial and significant deprivation of the property rights of adjacent residents and businesses. For example, in public comment provided to the City Council on or about September 3, 2019, a report detailed the potential home price devaluation in the Park Santiago neighborhood that would result from the development of the proposed Project. (See City Council, Sept. 3, 2019, [public comment re Park Santiago price devaluation resulting from Project].) The Project Applicant took a unique approach in response to this apparent situation. Specifically, it appears that the Applicant solicited surrounding property owners' support by offering a substantial The meeting minutes are not yet available, accordingly, the video is available at https://santaana.�,,ranicus.com/ModiaP]ayer.php?view id=2&clip id=2527 (last accessed Nov. 13, 2019, on file). 3917,101 /8509864.1 2 11 A-88 Honorable Mayor Pulido Santa Ana City Council November 19, 2019 Page 4 monetary sum (up to $35,000) in exchange for an agreement not to object to the I Project. 2 THE FEIR'S PROJECT DESCRIPTION MAY BE INADEQUATE, RESULTING IN SIMILARLY FLAWED ENVIRONMENTAL ANALYSES. An environmental impact report, commonly referred to as an "EIR," is at the heart of CEQA. (See 14 Cal. Code Regs., § 15124.) A proper EIR provides the public and governmental decision -makers with detailed information on a project's likely environmental effects, describes the ways of minimizing such effects, and considers potential alternatives to a project. (Pub. Resources Code, §§ 21002.1, 21061, 21100 An accurate project description "is the sine qua non of an informative and legally sufficient EIR." (County of Inyo v. City of L.A. (1977) 71 Cal.App.3d 185, 193, 199 (hereafter County of Inyo).) When a proposed project is accompanied by an inaccurate or incomplete description, it undermines CEQA by drawing "a red herring across the path of public input." (Id. at pp. 193, 199.) A court will reject an EIR with an incomplete or inaccurate project description because, as the court stated in County of Inyo v. City of L.A.: Only through an accurate view of the project may affected outsiders and public decision -makers balance the proposal's benefit against its environmental cost, consider mitigation measures, assess the advantage of terminating the proposal (i.e., the "no project alternative") and weigh other alternatives in the balance. (Id. at p. 198.) Because CEQA defines "project" as "the whole of an action," (14 Cal. Code Regs., § 15378; see Habitat & Watershed Caretakers v. City of Santa Cruz (2013) 213 Cal.AppAth 1277, 1297; Banning Ranch Conservancy v. City of Newport Beach (2012) 211 Cal.AppAth 1209, 1220 (hereafter Banning Ranch)), an EIR must also describe the entire proposed project —not a piecemeal version. (East Sacramento Partnership for a Livable City v. City of Sacramento (2016) 5 Cal.App.5th 281, 293; Banning Ranch, 211 Cal.AppAth at p. 1222; Communities for a Better Envt. v. City of Richmond (2010) 184 Cal.AppAth 70, 98.) A project description must include future expansion or later phases of a project that will foreseeably result from project approval. (Laurel Heights Improvement Assn. v. Regents of Univ. of Cal. (1988) 47 Cal.3d 376 (hereafter Laurel Heights); 14 Cal. Code Regs., § 15126 [EIR's impact analysis must consider all phases of project].) Additionally, an EIR's project description must be internally consistent. If not, it cannot provide a vehicle for informed public participation in the decision -making process. (County of Inyo, 71 Cal.App.3d at p. 197 [shifting EIR description from groundwater pumping to replacing the entire aqueduct system].) 3917.101 / 8509864.1 11 A-89 Honorable Mayor Pulido Santa Ana City Council November 19, 2019 Page 5 Here, the Project proposes a large-scale planned residential development that violates the General Plan as discussed in detail in our letter regarding the same, dated November 18, 2019. Moreover, under the terms of the existing entitlements and the existing Project description in the FEIR, the Project is capable of a much higher maximum density than that being considered in the environmental review. As such, the Project description may be inaccurate because it fails to identify, and thus properly consider, changes to the existing land use designations and the maximum allowable density based on the proposed entitlements to the same. 3. THE FEIR MAY IMPROPERLY ASSUME A POST -DEVELOPMENT BASELINE. The idea of a "baseline" in the context of the FEIR is fundamental to its legitimacy. As a general matter, a baseline is important in part because it operates as the starting point by which all future comparisons are made. It follows that an EIR, like the FEIR here, which purports to report the environmental impacts of a proposed project, must start at the beginning. In other words, the baseline used as the yardstick by which relative change is measured must, itself, be a sound source for comparison. Experts explain the concept of a false baseline as the shifting "waistline' problem. For many of the same reasons, it would be difficult to determine weight loss if the starting scale measured you 30 pounds underweight. An EIR is likewise of little value if potential impacts, alternatives, and mitigation measures are evaluated relative to a false or shifting starting point. CEQA acknowledges this by defining how a project must determine its baseline. According to Title 14 Section 15125(a), a baseline condition must reflect the existing conditions, applicable plan designations, and zoning for the Project area in effect. Yet, the FEIR's impact analyses and conclusions are often based on the assumed approval of the underlying entitlements it purports to evaluate. Similar issues exist throughout the FEIR, as well as just in the Project description. Separately, the Project fails to properly consider its impacts relative to the applicable general, regional, and specific plans. (14 Cal. Code Regs., §15125, subd. (d).) Ultimately, CEQA requires an evaluation of the Project in its existing environmental and regulatory setting —not in a vacuum. Accordingly, an EIR must discuss and evaluate inconsistencies between the proposed Project and its applicable general, specific, and regional plans. (Ibid. ["applicable" plans have been adopted and legally apply to a proposed project].) Here, existing land use designations allow for a much lower maximum density for the entire Project area. This lower density is consistent with the applicable general, regional, and specific plans, but entirely inconsistent with the high -density development proposed by this Project. Thus, because the FEIR evaluates the Project against a false or shifting baseline that is inconsistent with existing baseline conditions, the resulting analyses likewise fail, likely rendering the FEIR legally insufficient. 3917.101 1 8509864.1 �l V 5 11 A-90 Honorable Mayor Pulido Santa Ana City Council November 19, 2019 Page 6 4. ULTIMATELY, THE CITY MAY BE RESPONSIBLE FOR THE INADEQUATE FEIR. CEQA compliance must occur before the City approves the Project. When a public agency gives a project "approval" it "commits to a definite course of action in regard to a project." (CEQA Guidelines, 14 Cal. Code Regs., § 1532, subd. (a).) In Save Tara v. City of West Hollywood (2008) 45 CalAth 116, 130-132, the Court struck down a project, finding that the city violated CEQA because it had impermissibly committed itself to the project before completing an adequate CEQA review. While an applicant's consultant may prepare an EIR, that does not relieve the City from its independent duty to review and exercise judgment over the document. Indeed, the City must independently review, evaluate, and exercise judgment over the document and the issues it raises and addresses. (Friends of La Vina v. County of Los Angeles (1991) 232 Cal.App.3d 1446, 1452; Pub. Res. Code, § 21082.1.) Ultimately, the City will be the one left holding the bag for certification of an inadequate EIR. (Mission Oaks Ranch, Ltd. v. County of Santa Barbara (1998) 65 Cal.AppAth 713, 723-724.) Here, the adequacy of the FEIR's Project description is inextricably linked to the adequacy of its analyses of environmental effects. If the description, baseline, and consistency requirements are not met —the resulting environmental analyses will be similarly flawed. (See Laurel Heights, supra; 47 Cal.3d 376 [EIR failed to describe or analyze project accurately].) For example, if an EIR bases its cumulative impact analyses on general plan projections, it must explain why these projections function as a realistic predictor of related impacts. (See 14 Cal. Code Regs. § 15130, subd. (b)(1)(B).) Moreover, a general plan's projections of future growth and related impacts are an inadequate basis for an EIR's cumulative impact analysis if the plan's projections do not cover a sufficiently wide area or exclude relevant data. (See Kings County Farm Bureau v. City of Hanford (1990) 221 Cal.App.3d 692 [no explanation of why analysis of cumulative air quality impacts was limited to Central Valley]; Citizens to Preserve the Ojai v. County of Ventura (1985) 176 Cal.App.3d 421 [air quality analysis defective for failure to include contribution to pollution from offshore oil operations].) This is particularly true in situations like those at issue here, where the Project was originally envisioned at a higher density. Because the FOR may rely on inaccurate estimates of projected development density, the analyses that flow from that estimate may be similarly flawed. In addition to the potential issues identified in this comment and the various additional comments submitted, the FEIR also may fail to identify, discuss, or mitigate potential significant impacts in the transportation and circulation section. For example, back-up of southbound traffic on N. Main Street between Edgewood Road and Walkie Way has the potential to significantly increase traffic and block intersections. The Project is proposing to reduce the distance between these intersections, while adding traffic to the back-up of traffic. In the technical studies for the project, information is calculated that 3917.101 18509864.1 11 A-91 Honorable Mayor Pulido Santa Ana City Council November 19, 2019 Page 7 shows this back-up increasing into the future, but it was not evaluated or mitigated in the report text. This is important especially considering the overly wide intersection being created with the project at Walkie Way. Once the FEIR is revised to include an accurate Project description, then additional substantive issues may be raised and addressed. PSNA reserves its right to submit supplemental information and evidence up to the final public hearing on the Project. g (See, e.g., Galante Vineyards v. Monterey Peninsula Water Management (1997) 60 Cal.AppAth 1109, 1119-1120 [applicant has right to present comments "prior to the close of the public hearing on the project."]; Coal. for Student Action v. City of Fullerton (1984) 153 Cal.App.3d 1194, 1197 [same principle].) 5. THE FEIR SHOULD BE RECIRCULATED BECAUSE IT INCLUDES SIGNIFICANT NEW INFORMATION. An EIR must be recirculated if significant new information is added, in which case, further public and agency review is required. (Pub. Resources Code, § 21092.1; 14 Cal. Code Regs., § 15088.5.) The Public Resources Code says the following with respect to mandatory circulation prior to certification: When significant new information is added to an environmental impact report after notice has been given pursuant to Section 21092 and consultation has occurred pursuant to Sections 21104 and 21153, but prior to certification, the public agency shall give notice again pursuant to Section 21092, and consult again pursuant to Sections 21104 and 21153 before certifying the environmental impact report. (Pub. Resources Code, § 21092.1.) New information is "significant" where the EIR has changed in a way that deprives the public of a meaningful opportunity to comment. (See Spring Valley Lake Assn. v. City of Victorville (2016) 248 Cal.AppAth 91, 106-109 [finding the revisions to the air quality analysis and hydrology and water quality impact analysis "problematic"] (hereafter "Spring Valley') [citing Laurel Heights Improvement Assn. v. Regents of University of California (1993) 6 Cal.4th 1112, 1129 (hereafter "Laurel Heights 11")] ["the California Supreme Court] held that new information is 'significant,' within the meaning of section 21092.1, only if as a result of the additional information 'the EIR is changed in a way that deprives the public of a meaningful opportunity to comment upon a substantial adverse environmental effect of the project or a feasible way to mitigate or avoid such an effect.' (Accord, [Guidelines], § 15088.5, subd. (a).)"].) 3917.101 / 8509864.1 11 A-92 Honorable Mayor Pulido Santa Ana City Council November 19, 2019 Page 8 For example, the Spring Valley Court found revisions to the air quality impacts analysis, as well as the hydrology and water quality impact analyses "problematic," as the new analyses constituted significant new information requiring recirculation under Section 21902.1. (Spring Valley, supra, 248 Cal.App.4th at pp. 108-109.) As to the air quality impacts analysis, the revisions analyzed the project's consistency with several general plan air quality policies and implementation measures. The Court found as follows with respect to the new information on air quality: As there is insufficient evidence to support the City's finding the project is consistent with these two implementation measures (see pt. I, ante), the information discloses a substantial adverse environmental effect. (Id. at p. 108.) Ultimately, the Court found that the revisions constituted significant new information requiring recirculation because their "breadth, complexity, and purpose" deprived the public of a meaningful opportunity to comment on an ostensibly feasible way to mitigate a substantial, adverse environmental effect. (ld. at pp. 108-109; see also Save our Peninsula Committee v. Monterey County Board of Supervisors (2001) 87 Cal.AppAth 99, 107 (hereafter "Save our Peninsula") ["We conclude that the EIR in this case did not comply with CEQA in its treatment of several critical water issues. Because of these inadequacies, the Board's action certifying the EIR and approving the project constituted an abuse of discretion."]; Vineyard Area Citizens for Responsible Growth, Inc. v. City of Rancho Cordova (2007) 40 Cal.4th 412, 421, as modified (Apr. 18, 2007) [finding that the Draft EIR must be revised and recirculated for public comment].) Similarly here, the FEIR incorporates substantial and significant new information and analyses that must be allowed to undergo further public review. For example, the FEIR for the first time appears to include an Arborist Report as a designed mitigation measure with respect to the existing mature trees that the Project proposes to remove. (See City Staff Rept., Oct. 28, 2019, 2-7; see also, id, at p. 2-38 [proposed statement of findings discussing certain Project Design Features "PDFs" that will be implemented like mitigation measures based on the Arborist Report].) This additional measure also purportedly identifies eight trees in an unhealthy condition recommended for removal. (See City Staff Rept., Oct. 28, 2019, 2-7.) The City also acknowledges that this removal will require further review by the Environmental and Transportation Advisory Committee, but that it "will occur at a later date[.]" (See City Staff Rept., Oct. 28, 2019, 2-7.) But, CEQA contemplates a full and complete environmental review that occurs prior to action on the Project —not at some later date after the environmental document has already been certified. If the latter were true, CEQA would be rendered meaningless. Moreover, as the statement of overriding considerations acknowledges, the site could be used by one -special -status wildlife species: the western mastiff bat. (See City Staff Rept., Oct. 28, 2019, 2-57 [draft statement of overriding considerations].) In fact, the 3917.101 / 8509864.1 11 A-93 Honorable Mayor Pulido Santa Ana City Council November 19, 2019 Page 9 species has a "the site could be used by one special -status wildlife species, the western mastiff bat, that has a low potential to roost in the large trees and palms[,]" many of which are being removed for the first time in the FEIR due to a new mitigation measure and Arborist's Report designating certain existing trees and palms as unhealthy and qualified for removal. (See City Staff Rept., Oct. 28, 2019, 2-57 [draft statement of overriding considerations].) Overall, the FEIR fails to adequately address significant concerns raised by state and federal agencies, independent scientists, conservation organizations, tribal representatives, and members of the public directly affected by this new mitigation measure. As a result of these and other related deficiencies, the FEIR may fail to fully inform the public and decision -makers of the Project's significant environmental impacts and to analyze and/or mitigate these impacts in accordance with CEQA. Failing to recirculate given these changes to the most significant and unavoidable impacts would result in an inability of the public or agencies to meaningfully comment on the Project's environmental impacts. The City should thus allow the FEIR to be recirculated and evaluated. 6. CONCLUSION. The adequacy of an EIR's project description is inextricably linked to the adequacy of its analyses of environmental effects. If the description, baseline, and consistency requirements are not met, the resulting environmental analyses will reflect the same mistakes. This is particularly true in situations like those at issue here, where the Project as originally envisioned is entirely different from the one presently before the City Council. Once a new EIR is prepared, then additional substantive issues may be raised and addressed. PSNA reserves its rights to submit further public comment at and up to the close of the record on the Project and requests formal, written notice in advance of any future meetings or notices of determination related to the Project. For the foregoing reasons, among others, PSNA respectfully requests that the City Council deny the proposed Project, consistent with the Planning Commission's recommendation below. 3917.101 / 8509864.1 Q 10 11 A-94 Honorable Mayor Pulido Santa Ana City Council November 19, 2019 Page 10 Very truly yours, Charles S. Krolikowski Cc: Mayor Miguel Pulido, mpulido(cDsanta-ana.orq Mayor Pro Tern Juan Villegas, jvillegas(a�santa-ana.orq Councilmember David Penaloza, dpenaloza(a)santa-ana.orq Councilmember Jose Solorio, JSolorio(a)santa-ana.org Councilmember Vicente Sarmiento, vsarmientopsanta-ana.orq Councilmember Cecilia Iglesias, ciglesias(i)santa-ana.orq Park Santiago Neighborhood Association CSK:sIt 3917.101 / 8509864.1 11 A-95 NEWMEYER DILLION O�O November 18, 2019 VIA HAND DELIVERY AT MEETING VIA E-MAIL CITYCOUNCIL@SANTA-ANA.ORG Santa Ana City Council 20 Civic Center Plaza P.O. Box 1988, M31 Santa Ana, CA 92701 Newmeyer & Dillion LLP 895 Dove Street Fifth Floor Newport Beach, CA 92660 949 854 7000 Charles S. Krolikowski Charles.Krolikowski@ndlf.com Re: Magnolia at the Park Multi -Family Residential Project (the "Addington") Located at 2525 N. Main Street Final Environmental Impact Report, No. 2018-01 (SCH No. 2018021031) Honorable Mayor Pulido and Members of the City Council: This office represents the Park Santiago Neighborhood Association ("PSNA"), a coalition of interested property owners located in the City of Santa Ana ("City"), within the zone of impacts of the proposed residential development project commonly referred to as Magnolia at the Park Multi -Family Residential Project or the Addington, located at 2525 N. Main Street ("Project"). This letter addresses AC 2525 Main LLC's ("Applicant") appeal of the City of Santa Ana Planning Commission's ("Planning Commission") recent denial of the Proposed Project at its meeting on October 28, 2019. PSNA is concerned regarding the Applicant's continued pursuit of approvals that do not conform to the policies and objectives of the City's General Plan and its efforts to do so by way of bribing adjacent property owners. In addition, the City's continued willingness to consider a high density multi -family residential development in an area where it would not mesh raises concerns as to why the City has not asked the Applicant to consider other viable development options for the site that would not have a detrimental effect on the community and that would conform with the policies and objectives of the General Plan. PSNA respectfully requests that the Honorable Mayor and Members of the City Council ("City Council") affirm the Planning Commission's denial, in accordance with recommendation one in the Staff Report. PSNA submits that the Planning Commission correctly rejected the modified Project. Indeed, despite multiple revisions, the Project remains grossly inconsistent with the City of Santa Ana's General Plan and the character of the surrounding community. At the same time, the Project documents 4398.101 / 8504501.2 Las Vegas I Newport Beach I Walnut Creek 11 A-96 newmeverdillion.com Honorable Mayor Pulido Santa Ana City Council November 18, 2019 Page 2 reveal that its impacts, environmental or otherwise, still have not been properly considered by the elected body or its constituents. For these reasons, among others detailed more fully below, the Planning Commission's denial must be upheld. In addition to its written objection to any Project approval, this written comment also serves as PSNA's formal request for written notice in advance of any future meetings regarding the City's consideration of the Project, including, without limitation, the filing of any notice of determination related to the purportedly Final Environmental Impact Report No. 2018-01 (SCH No. 2018021031) ("FEIR"). 1. THE PROJECT'S HISTORY, MULTIPLE MODIFICATIONS, AND THREE DENIALS. Jeremy Ogulnick, representing AC 2525 Main, LLC, is proposing to construct a 256-unit multi —family residential development (58 dwelling units per acre) on a 4.4-acre parcel of land at 2525 North Main Street. Additionally, the Applicant is proposing to create a second parcel to accommodate a 180-space surface level parking lot that is proposed to be used by the Discovery Cube on an adjacent 1.4-acre parcel. Actions required to approve the Project include the certification and adoption of the FEIR for the development, which includes a Clarifications to the FEIR document, a mitigation monitoring and reporting program, and a statement of overriding considerations. Entitlements needed for the development include the approval of a development agreement between the City and applicant/owner, a general plan amendment to redesignate the land use designation of the property from Professional and Administrative Office ( PAO) to District Center ( DC), and an amendment application to rezone the property from Professional (P) to Specific Development No. 93 (SD- 93). The Project's history, compared to its most current iteration, is quite different from when the Planning Commission first held a public hearing to consider the Applicant's then - proposed 496-unit (84 per acre) development project on January 14, 2019. (See City Staff Rept., Oct. 28, 2019, 2-1-2-3 [discussing Project background and various modifications].) City staff recommended and presented a reduction in development from 496 units (84 Dwelling units per acre [DUA]) to 476 units, 81 DUA. The Project was denied by the Planning Commission. (See City Staff Rept., Oct. 28, 2019, 2-1-2- 3.) The City Council directed the Applicant go back to the Planning Department and Planning Commission after consultation with the community. (City Staff Rept., Oct. 28, 2019, 2-2) This cycle continued until the Applicant again informed City staff that it would make further modifications before again seeking to proceed before City Council. (See City Staff Rept., Oct. 28, 2019, 2-1 thru 2-3.) The July 22, 2019, Planning Commission meeting was adjourned at the last minute due to no quorum. On August 12, 2019 the 4398.101 18504501.2 12 11 A-97 Honorable Mayor Pulido Santa Ana City Council November 18, 2019 Page 3 Applicant's Project of 347 units resulted in an impasse by the Planning Commission. The Applicant chose to appeal the Project to the City Council. Following this meeting and due to extensive modifications to the Project, the City required that a modified project be presented to the Planning Commission once again. The latest modifications have culminated in the present, unrecognizable, and rashly considered Project —a far cry from the initial Project as considered and evaluated in the FEIR. (See City Staff Rept., Oct. 28, 2019, 2-3 thru 2-4 [modified Project in its current iteration].) The staff report identifies the modified Project will have a lot line adjustment and be built on 4.4 acres, with the remaining 1.4 acres to be used by a third party for surface parking. There is no mention of selling this 1.4 acres to a third party in the staff report. The 4.4 acre property would still require the complete demolition of an existing two-story, 81,172 square foot office building. (See City Staff Rept., Oct. 28, 2019, 2-4, Tbl. 1 [project location information]; see also, id. at 2-5 [discussing demolition of existing office building].) The intensity of the proposed use and requisite Project construction (demolition of an existing building) stands in harsh contrast to the surrounding, far less intensive land uses, including the designated open space "Santiago Park" to the north and the single family residential homes — R1 to the east and south. (See City Staff Rept., Oct. 28, 2019, 2-4, Tbl. 1 [Project location information and adjacent uses].) On or about October 28, 2019, the modified Project came before the Planning Commission for the third time. (See City Staff Rept., Oct. 28, 2019, 2-1 [listing date of hearing].) The Planning Commission denied, again for a third time, approval of the Project. (See Official Video of Planning Commission Regular Meeting.)' In its present iteration before the City Council, the Project purports to construct a 256- unit multifamily housing project at 58 dwelling units per acre, with 511 parking spaces proposed, and an additional 180 surface parking spaces on the second adjacent lot. (See City Staff Rept., Oct. 28, 2019, 2-1, 2-4, Tbl. 1, 2-5, passim.) However, the conditions of approval acknowledge that no joint parking agreement is in place and that there would not be one until the issuance of the first certificate of occupancy. (See City Staff Rept., Oct. 28, 2019, 2-603.) Even upon issuance, it appears that any joint parking agreement would be revocable at any time and by either party. (ibid.) Again, entitlements requested include the following: Adoption of an ordinance approving a development agreement between the Applicant and the City, identified as Development Agreement No. 2018-01; ' The meeting minutes are not yet available, accordingly, the video is available at https://santaana. aanicus.com/MediaPlaver.php?view id=2&clip id=2527 (last accessed Nov. 11, 2019, on file). 4398.101 / 8504501.2 12 11 A-98 Honorable Mayor Pulido Santa Ana City Council November 18, 2019 Page 4 Adoption of a resolution approving a general plan amendment to re -designate the property from Professional & Administrative Office ("PAO") to District Center ("DC"), identified as General Plan Amendment No. 2018-06; Adoption of an ordinance approving an amendment application to rezone the property from Professional ("P") to Specific Development No. 93 ("SD-93"), despite language in Division 26 that requires any specific development to maintain the values of the surrounding properties; and, Adoption of a resolution certifying the FEIR, including adoption of environmental findings of fact under the California Environmental Quality Act ("CEQA"), adoption of a purported "Clarification to the Final EIR" (City Staff Rept. at p. 2-2), a Statement of Overriding Considerations, and adoption of a Mitigation Monitoring and Reporting Program. The Project will cause a substantial and significant deprivation of the property rights of adjacent residents. For example, in public comment provided to the City Council on or about September 3, 2019, a report detailed the potential home price devaluation in the Park Santiago neighborhood that would result from the development of the proposed Project. (See City Council, Sept. 3, 2019, [public comment re Park Santiago price devaluation resulting from Project].) The Project Applicant took a unique approach in response to this apparent situation. Specifically, it appears that the Applicant solicited adjacent property owners' support by offering a substantial monetary sum (of at least $35,000) in exchange for an agreement not to object to the Project. 2. ANY CITY COUNCIL APPROVAL OF THE MODIFIED PROJECT WOULD BE INCONSISTENT WITH THE GENERAL PLAN. As the City Council is aware, a city's general plan provides the constitution for all future development in the City. As a practical matter no city can function without it." (See Nelson v. Carlson (1993) 17 Cal.AppAth 732, 740, as modified on denial of reh'g (Aug. 27, 1993).) Indeed, the Legislature has developed a comprehensive scheme covering a general plan's development, adoption, and amendment. (See Gov. Code, § 65100 et seq.) Every city is required to prepare and adopt one. (Gov. Code, §§ 65300, 65350.) A general plan must include a detailed discussion covering a city's land use, circulation, housing, conservation, noise and safety, along with "a statement of development policies and shall include a diagram or diagrams and text setting forth objectives, principles, standards, and plan proposals." (Gov. Code, § 65302.) Once adopted, a city's zoning ordinances must be consistent with the general plan's objectives, policies, land uses and programs. (Gov. Code, § 65860, subd. (a)(ii); see also Lesher Comms., Inc. v. City of Walnut Creek (1990) 52 Cal.3d 531, 535-536.) As such, the alteration or amendment of a general plan should not be taken lightly. The impact on the City's residents is significant and a perceived benefit such as revenue is 4398.101 18504501.2 12 13 14 11 A-99 Honorable Mayor Pulido Santa Ana City Council November 18, 2019 Page 5 insufficient to justify the negative impacts of increased traffic, increased density, incompatibility with neighboring communities, and environmental factors that would be caused by allowing the Applicant's proposed amendment to the City's General Plan. Moreover, the Applicant's efforts to purchase the silence of those opposed to its application should mandate denial as a matter of principal and equity. As noted above, the Planning Commission denied approval of the Project three times, the latest on October 28, 2019. (See Official Video of Planning Comm'n Regular Meeting.)2 In its present iteration before the City Council, the Project purports to construct a 256-unit multifamily housing project at 58 dwelling units per acre, with 511 parking spaces proposed and an additional 180 surface parking spaces on the second adjacent lot. (See City Staff Rept., Oct. 28, 2019, 2-1, 2-4, Tbl. 1, 2-5, passim.) Also discussed above, the Project site is approximately 4.51 acres and construction thereon will require the complete demolition of an existing two-story, 81,172 square foot office building. (See City Staff Rept., Oct. 28, 2019, 2-4, Tbl. 1.) Again, the intensity of the proposed use stands in stark contrast to its surrounding surrounded uses, including an open space park to the north and single family residential homes to the east and south. (See ibid.) The Project site has a current land use designation of Professional and Administrative Office, with a zoning of Professional. The allowable uses of the property are limited to professional and administrative offices, banking or finance, travel agencies, medical and dental offices, museums or science centers, pharmacies, child care facilities, and freestanding regular -hours eateries. (See SAMC, §41-313.) Other allowable uses of the property, subject to a conditional use permit, include hospitals, convalescent facilities, health clubs, trade schools, ambulance response services, late -night eateries, adult day care facilities, banquet halls, clubs or lodges, and bail bonds. (SAMC, §41- 313.5.) The maximum allowable density for the adjacent R-1 district wherein the Park Santiago neighborhood is located is low density residential (LR-7) or seven (7) dwelling units per acre, with an actual density of 4.4 dwelling units per acre. (Ibid.) 14 The City's current General Plan does not support the approval of the Project, even in its current form. Excerpts of the relevant land use and housing elements that remain 15 inconsistent with the proposed Project approvals are referenced below: '- The meeting minutes are not yet available, accordingly, the video is available at https://santaana. aanicus.com/MediaPlaver.php?view id=2&clip id=2527 (last accessed Nov. 11, 2019, on file). 4398.101 / 8504501.2 11A-100 Honorable Mayor Pulido Santa Ana City Council November 18, 2019 Page 6 INCONSISTENCIES WITH LAND USE ELEMENT The Land Use Element is divided into five sections: Purpose & Scope, Community Factors, Policy Plan, Implementation Plan, and Appendix. Excerpts of the Land Use Element relevant to this objection are cited below: Community Factors "A key role in shaping [the] future growth and redevelopment, the Land Use Element perpetuates positive land uses and promotes development which supports a high quality of life throughout the community." (Land Use Element, at p. 5, emphasis added.) "Many of the City's land use characteristics are directly related to its historic position as one of Orange County's earliest pioneer settlements." (Ibid, emphasis added.) The City is the fifth largest city in Orange County, of which 58% of its 27.3 square miles is devoted to residential development. (Id., at p. 6.) Policy Plan Land Use Goal 3: "Preserve and improve the character and integrity of neighborhoods." (Land Use Element, at p. 9.) Land Use Goal 6: "Reduce residential overcrowding to promote public health and safety." (Ibid.) Land Use Policies Policy 1.2: "Support high density residential development within the City's District Centers as a part of mixed use development." (Id., at p. 10.) Policy 2.2: "Support new development which is harmonious in scale and characterwith existing development in the area." (Id., at p. 11.) Policy 3.1: "Support development which provides a positive contribution to neighborhood character and identity." (Id., at p. 12.) Policy 3.5: "Encourage new development and/or additions to existing development that are compatible in scale, and consistent with the architectural style and character of the neighborhood." (Ibid, emphasis added.) 4398.101 18504501.2 15 11A-101 Honorable Mayor Pulido Santa Ana City Council November 18, 2019 Page 7 Policy 5.2: "Protect the community from incompatible land uses." (Id., at p. 13.) Policy 5.4: "Support land uses which are consistent with the Land Use Plan of the Land Use Element." (Ibid.) Policy 5.5: "Encourage development which is compatible with, and supportive of surrounding land uses." (Ibid.) INCONSISTENCIES WITH HOUSING ELEMENT The Housing Element introduces the City's housing needs and contains an analysis of resources to address those needs. (Housing Element, at p. 2.) Excerpts of the Housing Element relevant to this objection are cited below: COMMUTE PATTERNS "[T]he majority of employed Santa Ana residents work outside of the City, approximately 20 percent work within the City." (Housing Element, at p. 13.) NEIGHBORHOOD CHARACTERISTICS "Approximately 70 percent of all residential areas within the City are single-family residential neighborhoods. Many of these neighborhoods are established and well maintained, and several neighborhoods contain state and local historic resources." (Id., at p. 15.) "To protect and stabilize residential neighborhoods, support the City's economic base, and provide housing for the local workforce, Santa Ana is developing new residential neighborhoods in District Centers close to employment centers. These District Centers include the Metro East Mixed Use Overlay Zone, MacArthur Place, Downtown Santa Ana, City Place, and similar locations. [... ] These residential neighborhoods are intensely urbanized, transit oriented, and explicitly designed to support a full array of housing needs in Santa Ana." (Ibid., emphasis added.) AVAILABLE LAND FOR HOUSING "The City has identified areas for future development and mixed uses within its District Centers and transit corridors. [... ] The sites are specifically chosen to create distinct and vibrant activity centers linked together with a variety of transportation options." (Id., at p. 30.) 4398.101 18504501.2 15 11A-102 Honorable Mayor Pulido Santa Ana City Council November 18, 2019 Page 8 POLICY FRAMEWORK Policy HE-1.7: "Historic Preservation. Support preservation and enhancement I 15 of residential structures, properties, street designs, lot patterns, and other visible reminders of neighborhoods that are considered local historical or cultural resources. (Housing Element, at p. 43.) Similar inconsistencies should also cause the City concern. For example, the Project contemplates public access to the City's Santiago Park via the proposed development. This private -to -public access creates obvious problems with respect to maintenance costs and liability, but the Project as contemplated does not appear to address those issues. Moreover, the Project documents frequently reference the Project as a District Center, although its current iteration does not contemplate a mixed -use component, a requirement of any District Center development. For the foregoing reasons, among others, any approval of the Project would be inconsistent with and continue to violate the City's General Plan. 3. THE PROJECT APPROVAL MAY SUBJECT THE CITY TO SUBSTANTIAL LITIGATION. In addition to the problems with respect inconsistency with the General Plan as identified above, the City's actions described herein may give rise to a compensable regulatory taking. Specifically, the City's approval of the Project will intentionally interfere with the property rights of the surrounding property owners, depressing the value of the properties wherein some or all economic uses of the will be impacted under the Penn Central and/or Kavanau tests. (See, e.g., Penn Central Transp. Co. v. New York City (1978) 438 U.S. 104, 123; Kavanau v. Santa Monica Rent Control Bd. (1997) 16 CalAth 761, 771-777; see also Jefferson Street Ventures, LLC v. City of Indio (2015) 236 Cal.AppAth 1175.) Evidence of this depression in value has already been provided to the City Council. (See City Council, Sept. 3, 2019, [public comment re Park Santiago price devaluation resulting from Project].) In fact, on September 3, 2019, public comment provided in the formal record for the Project detailed the potential home price devaluation that would result. (ibid.) Here, the Park Santiago neighborhood consists of approximately 1100 homes at an average value of $700,000 each. If the value of these homes is depressed by even as little as 5%, or approximately $35,000, that would result in potential losses of up to $38.5 million. (See ibid.) As such, the City may have significant exposure for inverse condemnation for injury to property interests caused by the City's failure to properly and thoroughly consider the impacts of this Project on surrounding properties, although such impacts are required to be considered under Division 26 of the Santa Ana Municipal Code ("SAMC"). (See Knick v. Township of 4398.101 18504501.2 16 17 11A-103 Honorable Mayor Pulido Santa Ana City Council November 18, 2019 Page 9 Scott, Pennsylvania (2019) 139 S.Ct. 2162; Landgate, Inc. v. California Coastal Comm'n (1998) 17 CalAth 1006, 1029.) Further, it appears that the Applicant acknowledged these potential losses and has solicited surrounding property owners' support by offering at least $35,000 to certain homeowners in exchange for their support of the Project. The City Council cannot and should not condone this conduct, as it results in a further violation of Chapter 41, which requires that the value of surrounding properties be maintained prior to the approval of any specific development. (SAMC, § 41-593.1.) Failure to properly consider the impacts outlined above, among others, may subject the City to inverse condemnation liability as a result. 4. THE DEVELOPMENT AGREEMENT CONTAINS PROVISIONS THAT MAY IMPERMISSIBLY CONTRACT AWAY THE CITY'S DISCRETION. Land use regulations involve the exercise of the police power and the right to exercise the police power cannot be contracted away. (See Richeson v. Helal (2007) 158 Cal.AppAth 268, 280-281, as modified (Dec. 21, 2007); Avco Community Developers, Inc. v. South Coast Regional Com. (1976) 17 Cal.3d 785, 800; City of Glendale v. Superior Court (1993) 18 Cal.AppAth 1768, 1778-1779; Delucchi v. County of Santa Cruz (1986) 179 Cal.App.3d 814, 823; Carty v. City of Ojai (1978) 77 Cal.App.3d 329, 342-343.) If a contract cannot be read harmoniously with the police power, the contract would be unconstitutional as "contracting away" the City's sovereign police power. (Delucchi v. County of Santa Cruz, supra, at pp. 823-824.) Although a development agreement itself operates as a legislative act and not necessarily a contract, it is subject to the principles expressed above. In Save Tara v. City of West Hollywood (2008) 45 CalAth 116, 130-132, the Court struck down a similar project by finding that the city violated CEQA because it had impermissibly committed itself to the project before completing an adequate CEQA review. When a public agency gives a project "approval" it "commits to a definite course of action in regard to a project." (CEQA Guidelines, 14 Cal. Code Regs., § 1532, subd. (a).) Because the proposed development agreement can be read to unconditionally commit to an approval without first attaining CEQA compliance and without proper preservation of the City's police powers, any related Project approval may be held invalid. 5. IF THE CITY COUNCIL APPROVES THE PROJECT AS IS, IT WILL BE SUBJECT TO CHALLENGE BY REFERENDUM. 17 Ifs If the City Council approves the Project in its current state, the support of ten percent or more of the registered voters will be easily attainable for a referendum of the legislative 19 entitlements. The City's own staff report supports this, as it repeatedly references the 4398.101 18504501.2 11A-104 Honorable Mayor Pulido Santa Ana City Council November 18, 2019 Page 10 number of opponents as early as the initial notice of proceeding, which received 163 comment letters. For example, on August 27, 2018, the Planning Commission conducted a work-study session to overview the Project. As part of this session, the Planning Commission received numerous comments, largely opposed, including thirty- two (32) verbal comments, with three (3) in support and twenty-nine (29) in opposition; and nine (9) written comments, with one (1) in support and eight (8) in opposition. The opponents to the Project have only increased over time. At the latest Planning Commission meeting on October 28, 2019, sixty-two (62) speakers expressed opposition and only two (2) expressed support of the project. In addition, ninety-eight (98) individuals submitted written comments, with ninety-four (94) in opposition and only four (4) in support. Upon submittal of any such referendum, the City will have a mandatory duty to process and submit any such initiative and referendum measures. (Duran v. Cassidy (1972) 28 Cal.App.3d 574 [city clerk]; Elec. Code, § 4008; Farley v. Healey (1967) 67 Cal.2d 325 [charter of the City and County of San Francisco]; Elec. Code, § 180; see also Yost V. Thomas (1984) 36 Cal.3d 561, 564, fn. 2.). The cost to the City and its taxpayers to process such a referendum could be in the hundreds of thousands of dollars. 6. THE CITY COUNCIL CANNOT APPROVE THE PROJECT BECAUSE OF A FAILURE TO PROVIDE ADEQUATE NOTICE. The requirement for meaningful notice and an opportunity to be heard extend to rezonings and other legislative acts. This is particularly true where property rights are affected. As noted above, the value of the impact to the neighboring homes may be substantial. Thus, adjacent properties are entitled to due process notice. The due process clause of the Fourteenth Amendment requires "at a minimum ... that deprivation of life, liberty or property by adjudication be preceded by notice and opportunity for hearing..." (Mullane v. Central Hanover Co. (1950) 339 U.S. 306, 313.) The 'root requirement' of due process is "that an individual be given an opportunity for a hearing before he is deprived of any significant property interest." (Scott v. City of Indian Wells (1972) 6 Cal.3d 541, 548-549; Boddie v. Connecticut (1971) 401 U.S. 371, 379.) Notice and an opportunity to be heard are prerequisites. (Anderson Nat. Bank v. Luckett (1944) 321 U.S. 233, 240-247; Horn v. County of Ventura (1979) 24 Cal.3d 605, 612-615; Topanga Assn. for a Scenic Community v. County of Los Angeles (1974) 11 Cal.3d 506, 517; Kennedy v. City of Hayward (1980) 105 Cal.App.3d 953.) State and local law therefore require valid notice of the hearing be given to nearby property owners. (Gov. Code, §§ 65901, 65905; FCZO, § 877(13)(5)(c).) For notice to be valid, "notice must, at a minimum, be reasonably calculated to afford affected persons the realistic opportunity to protect their interests. [Citations.]" (Horn v. County of 4398.101 / 8504501.2 19 20 11A-105 Honorable Mayor Pulido Santa Ana City Council November 18, 2019 Page 11 Ventura, supra., 24 Cal.3d at p. 617.) Several cases have held that to be adequate "the notice must be such as would according to common experience be reasonably adequate to the purpose." (See, e.g., Kennedy v. South Coast Regional Com., supra, 68 Cal.App.3d at pp. 670-672; Litchfield v. County of Marin (1955) 130 Cal.App.2d 806, 813; Scott v. City of Indian Wells (1972) 6 Cal.3d 541, 548-549; Drum v. Fresno County Dept. of Public Works (1983) 144 Cal.App.3d 777, 782-783.) Consistently, the SAMC likewise acknowledges the requirement for valid notice to adjacent property owners. Section 41-645 governs the City Council's review of the Planning Commission's denial of the proposed Project. (See Code 1952, § 9250.14; Ord. No. NS-455, § 1, 6-20-60; Ord. No. NS-521, § 18, 6-19-61; Ord. No. NS-989, § 1, 11-17-69; Ord. No. NS-2847, § 43, 8-5-13; Ord. No. NS-2923, § 9, 9-16-17 adding § 41- 645 to SAMC).) Section 41-465, subdivision (g) limits the scope of the City Council's determinations on appeal as "within the limitations imposed by this chapter" with specific reference to Chapter 41, Zoning: The council, or in the case of a zoning administrator appeal, the planning commission, may, after public hearing, affirm, reverse, change, modify the original decision and may make any additional determination it shall consider appropriate within the limitations imposed by this chapter. Such decision shall be filed with the clerk of the council, and the city planning department; one (1) copy thereof shall be sent to the applicant. (SAMC, § 41-645, subd. (g).) Along those lines, all provisions of Chapter 41 must be interpreted and applied as, not the ceiling, but the basic "minimum requirements for the promotion of the public safety, health, convenience, comfort, and general welfare." (Code 1952, § 9281; Ord. No. NS-455, § 1, 6-20-60 adding § 41-766 to SAMC.) As part of those express "limitations imposed by" Chapter 41, the City Council's ability to approve plans for a development project like the Project here are contingent on its providing of adequate notice. (See SAMC, § 41-672, subd. (a).) Specifically, "whenever approval of plans for a development project will constitute a substantial or significant deprivation of property rights of other landowners[,]" as it will here. (See ibid.) Such an approval is invalid unless the director of planning and development services has set the matter for public hearing and provided valid notice at least five (5) days prior to the date of the hearing. (See ibid.) Valid notice must include "notice of the time and place of the hearing to all persons, including businesses, corporations, or other public or private entities, shown on the last equalized assessment roll, as owning real property within three hundred (300) feet of the property which is the subject of the application." (See ibid.) Moreover, the notice "shall be given by direct mailing to the owners at least five (5) days prior to the date of the hearing." (See ibid.) 4398.101 18504501.2 0 11A-106 Honorable Mayor Pulido Santa Ana City Council November 18, 2019 Page 12 Finally, notice regarding the City Council's potential action on a matter that required the recommendation from the Planning Commission cannot be given until after the Planning Commission has issued its recommendation. Failure to do so results in inadequate notice under established law. Here, only the staff report contained the recommendation from the Planning Commission —not the earlier, defective notice. As the courts have explained, notice without those recommendations is patently insufficient: As we will explain, section 65856 is silent on the timing of the notice and therefore creates an ambiguity as to when, in relation the planning commission's recommendation, the notice may be given. As we will further explain, a construction of section 65856's notice provision is inextricably bound with what must be included in that notice, a question that must be answered by looking to section 65094, which states that the contents of that notice must include a "general explanation of the matter to be considered." Consistent with the purpose behind the Planning and Zoning Law, we will interpret the phrase "general explanation of the matter to be considered" to include the planning commission's recommendation. Therefore, notice of a legislative body's hearing cannot be given until the planning commission has made a recommendation on the matter under consideration. (Environmental Defense Project of Sierra County v. County of Sierra (2008) 158 Cal.AppAth 877, 888, as modified (Jan. 9, 2008).) Because inaccurate notice is akin to no notice at all, the Project cannot go forward on the defective notice issued without the requisite recommendations from the Planning Commission. (Drum v. Fresno County Dept. of Public Works, supra, 144 Cal.App.3d at p. 783.) 7. RESERVATION OF RIGHTS AND REQUEST FOR WRITTEN NOTICE. 20 For the foregoing reasons, among others, PSNA respectfully requests that the City Council deny the proposed Project, consistent with the Planning Commission's recommendation. Additionally, PSNA reserves its rights to submit further public 21 comment at and up to the close of the record on the Project and requests formal, written notice in advance of any future meetings or notices of determination related to the Project. 4398.101 / 8504501.2 11A-107 Honorable Mayor Pulido Santa Ana City Council November 18, 2019 Page 13 I 21 Based on the foregoing, PNSA respectfully requests that the City actin accordance with the Planning Commission's recommendation and, for the third time, reject this faulty, rushed Project. Very truly yours, Charles S. Krolikowski Cc: Mayor Miguel Pulido, mpulido(a)santa-ana.org Mayor Pro Tern Juan Villegas, Ivillegas(c)santa-ana.org Councilmember David Penaloza, dpenaloza(a)santa-ana.org Councilmember Jose Solorio, JSolorio(cilsanta-ana.org Councilmember Vicente Sarmiento, vsarmiento(a)santa-ana.org Councilmember Cecilia Iglesias, ciglesias(a)santa-ana.org City Public Comments, eComment(cDsanta-ana.org Park Santiago Neighborhood Association CSK:sIt 4398.101 / 8504501.2 11A-108 Newmeyer Dillion City Council Comment Letter Response to CEQA Comments The attached letters were received on November 18, 2019 and November 19, 2019 prior to the City Council hearing for the 2525 N. Main Street Multi -Family Residential Project. The following provides responses to the comments in the letters, as numbered in the attached and referenced below. Comment 1: The comment asserts that the City Council should reject the proposed entitlements and uphold the Planning Commission's decision, as they are inconsistent with the policies of the General Plan and are not supported by a legally adequate FEIR. The comment also asserts that the FEIR is not legally adequate because it incorporates significant new information without meaningful public review and comment. The comment states that the EIR is required to respond to changes to the project, changes in circumstance, or new information. The comment also requests formal notification of future meetings about the project. Response 1: Despite the commenters allegations, the project is consistent with the City's General Plan. The Commenter does not point to any evidence that the project is inconsistent with the City's General Plan. In fact, Section 4.7, Land Use and Planning, of the Draft EIR provides a complete assessment of the project's compliance with the General Plan policies that are relevant to the proposed project. As disclosed in the Draft EIR, the project would not conflict with any policies that were adopted for the purpose of avoiding or mitigating an environmental effect. As described on page 4.7-16 of the Draft EIR, policy conflicts do not, in and of themselves, indicate a significant environmental effect within the meaning of CEQA. A project's inconsistency with a policy is only considered significant if such inconsistency would cause significant physical environmental impacts (as defined by CEQA Guidelines Section 15382). As described on page 1 of the October Clarification to the FEIR, CEQA Guidelines Section 15088.5 requires a Lead Agency recirculate an EIR when "significant new information" is added to the EIR. CEQA Guidelines Section 15088.5(a) specifies that the term "information" includes changes in the proposed project or environmental setting, as well as additional data or other information. But, for "information" to be "significant' such that it would trigger recirculation, the information would have to be of the type that would result in the EIR being changed in a way that deprives the public of a meaningful opportunity to comment upon a substantial adverse environmental effect or a feasible way to mitigate or avoid such an effect. Thus, "significant new information" includes information that shows that: (1) A new significant environmental impact would result from the project or from a new mitigation measure proposed to be implemented, or (2) A substantial increase in the severity of an environmental impact would result unless mitigation measures are adopted that reduce the impact to a level of insignificance, or (3) A feasible project alternative or mitigation measure considerably different from others previously analyzed would clearly lessen the significant environmental impacts of the project, or (4) The draft EIR was so fundamentally and basically inadequate and conclusory in nature that meaningful public review and comment were precluded. The October Clarification to the FOR provides a detailed analysis of the modified project, a comparison to the project evaluated in the Draft EIR, and based on that information concludes that no increase of any environmental effect would occur from the modified project. Thus, recirculation of the EIR was not required. The modification reduced the number of residential units by 48.4 percent, reduced the scale of the structures, and revised the vehicular parking and access to the site. The October Clarification to the FOR was available on the City's website and at City Hall on October 17, 2019. In addition, the Park Santiago Neighborhood will continue to be notified of any meetings regarding the project. Members of the public had ample time to review the October Clarification document 1 11A-109 and to comment on its contents. Indeed, many commenters submitted comments on the document at or before both the Planning Commission and City Council meetings. For these reasons, recirculation of the Draft EIR was not required. The City has made note of the commenters request to receive notices of this project. Comment 2: The comment provides a summary of the Planning Commission meeting, project entitlements, and modifications to the project. The comment asserts that the project is a contrast the adjacent park and single-family residential homes. The comment asserts that the project would result in a potential home price devaluation and therefore, a deprivation of the property rights of adjacent landowners. Response 2: According to State CEQA Guidelines, Section 15131(a), economic or social effects of a project shall not be treated as significant effects on the environment. To that end, the alleged home price devaluation mentioned in the comment is not a CEQA issue. The comment does not trace this alleged economic devaluation to any potential physical change in the environment, and there is no such evidence in the record that such physical effects would occur. Therefore, the economic impacts of this project need not be addressed in the EIR. As described in Response 1, the October Clarification to the FOR acknowledges the modification of the project, which generally consists of a reduction in the number of residential units and a surface parking lot on the site. The October Clarification to the FEIR provides an evaluation that determined no new or additional impacts would result from the modifications. Also, Section 4.9, Population and Housing, describes that according to Section 15382 of the CEQA Guidelines, "[a]n economic or social change by itself shall not be considered a significant impact on the environment" Socioeconomic characteristics should be considered in an EIR only to the extent that they create adverse impacts on the physical environment. The EIR determined that potential impacts to the single-family residential properties adjacent to the east of the site (such as construction noise) would be mitigated to a less than significant level. Any increase or decrease in the valuation of the adjacent residential properties would not result in a significant impact on the environment, as residences (including single-family) are in demand within the region (as detailed in Section 4.9, Population and Housing), would remain occupied, and would not result in an adverse impact on the physical environment. Comment 3: The comment provides a case law discussion about the requirements of an EIR project description. The comment asserts that the project violates the General Plan. The comment states that the project is capable of a much higher maximum density than is being considered in the environmental review and that the project description may be inaccurate because it does not identify the maximum allowable density based on the proposed entitlements. Response 3: The project description is definite, finite and consistent. The project evaluated in the Draft EIR was consistently referred to throughout the Draft EIR and technical appendices. The two Clarification documents describe in detail the project changes that were evaluated as part of the CEQA process. The project description in each Clarification document was consistent throughout. Reducing the project intensity and density is the very type of development design response that is contemplated by CEQA. It is the quintessential example of the environmental considerations of the project shaping the end result. If a project could not be reduced or changed as a result of environmental review and public input, the most fundamental purpose of the public review process would be eviscerated. The City's response to public comment on the project — the reductions in the project — do not mean that the project description is unstable or shifting. As described in Response 1, the EIR provides a full discussion regarding compliance with General Plan policies and the potential of the project to conflict with a policy and result in a significant environmental impact, which determined that impacts would be less than significant. 11A-110 The October Clarification to the FOR provides a detailed description of the modified project. As described, the site was previously proposed for development of 496 multi -family residential units, and therefore, the site is capable of accommodating more multi -family units than currently proposed (256 units, 58 dwelling units per acre). However, the modified project would require City approval of the same General Plan Amendment and Amendment Application (zoning amendment) that are required by the Original Project. These amendments would change the land use designation of the site from Professional & Administration Office (PAO) to District Center (DC) and an Amendment Application (zone change) from Professional (P) to Specific Development (SD) to provide site specific development standards. The SD would specify the allowable number of units permitted pursuant to the City Council approval. In addition, the project entitlements include a Development Agreement, which specifies the project details, including: number of dwelling units, open space area, parking, and other requirements of the project. Therefore, based on the proposed SD regulations and Development Agreement requirements, the project would be limited to a maximum of 256 units (58 dwelling units per acre), pursuant to the City Council's approval. Comment 4: The comment summarizes the law on baseline in an EIR and explains that the baseline is a fundamental component as it provides a starting point from which all future comparisons are made. The comment states that the baseline must reflect the existing condition, applicable plan designations, and zoning for the site. The comment asserts that the FEIR's impact analysis and conclusions are based on the approval of the proposed entitlements. Response 4: The EIR provides a complete description of the existing environmental setting, including the existing general plan and zoning designations. Draft EIR Sections 3.1 through 3.4 provide descriptions of the regional setting, project location, project site, and adjacent areas. In addition, each environmental topic area includes a specific discussion of the environmental setting. For example, the noise analysis provides noise measurements of existing ambient noise, the traffic analysis provides existing traffic on roadways and at intersections in the study area, the aesthetics section provides text descriptions and pictures of the existing setting. Such detail is provided within each topic of the EIR. The analysis of each section evaluates the potential impacts of the proposed project on the existing environment, pursuant to the direction and thresholds of CEQA. This includes comparison of the existing noise, traffic, aesthetic and other environments to those that would exist with construction and operation of the project. Similarly, the EIR provides a description of the existing land use and zoning designations and the potential impacts to land use and planning that would occur with implementation of the proposed project. Pursuant to CEQA it is appropriate to assume the approval of the project, including entitlements, to identify the potential impacts that would occur with project implementation. Comment 5: The comment states that the project fails to consider its impacts relative to the applicable general, regional, and specific plans. The comment states that the EIR must discuss and evaluate inconsistencies with the project and the applicable plans. The comment also states that the existing land use designations allow for a much lower maximum density for the project site that is consistent with the general and regional plans, but inconsistent with the high -density development proposed by the project. The comment asserts that the FOR evaluates the project against a false or shifting baseline that is inconsistent with existing baseline conditions, and thus, the FOR is likely legally insufficient. Response 5: As described in Section 4.0, Environmental Setting and Impact Analysis, the baseline used in the Draft EIR was the existing conditions at the time that the Notice of Preparation was released. Section 4.7, Land Use and Planning, of the Draft EIR provides a complete description of the existing land use and planning conditions, graphics that show the existing land use and zoning of the project site and surrounding areas, and a discussion of the applicable regional and local land use plans. The EIR includes a detailed consistency analysis with the project relevant policies of the Southem California Associations of Governments (SCAG) Regional Transportation Plan and Sustainable Communities Strategy, and the City of Santa Ana General Plan goals, policies, and objectives. As described in Response 1, the EIR includes an assessment of the project's compliance with the General Plan policies that are relevant to the proposed project and, pursuant to CEQA thresholds, determined that the project would not conflict with any policies that were adopted for the purpose of avoiding or mitigating an environmental effect. 11A-111 The comment's assumption that the existing land use designation allows for lower density development on the project site is inaccurate. Draft EIR Section 6.0, Afternatives, describes build out of the site pursuant to the existing General Plan and zoning designations. As described, Build Out of the Existing Zoning Alternative, would result in building setbacks of 15-feet from the front and side property lines and 50-feet setback when the site backs to residential areas. The maximum office building structure that could be developed under the existing zoning code requirements would be 3-stories high and 387,465 square feet (floor area ratio of 1.5), which would require 1,161 parking spaces. In comparison, the 256 residential units would be provided within approximately 277,281 square feet of residential structures, which is 110,184 square feet less of occupiable building space allowed under the existing zoning. These units would be setback a minimum of 90-feet from the eastern property line, which is 40 more feet of setback than under the existing zoning requirements. The Build Out Under the Existing Zoning Alternative would result in approximately 1,275 employees at full capacity (Draft EIR page 6-23), whereas, the 256 multi -family residential units would result in 502 residents at full occupancy, which is 773 fewer persons onsite. Also, development under the existing General Plan and zoning designations would result in 3,774 daily vehicular trips, 449 in the a.m. peak hour and 446 in the p.m. peak hour, as detailed in Table 6-3 of the Draft EIR. In comparison, the project's 256 multi -family residential units would generate 1,393 daily vehicular trips, 92 in the a.m. peak hour and 113 in the p.m. peak hour (based on the ITE trip generation rate). Hence, the project would result in 2,381 fewer daily vehicular trips, 357 fewer a.m. peak hour, and 333 fewer p.m. peak hour trips than build out of the project site under the existing General Plan and zoning. Therefore, the existing land use and zoning designations of the project site do not allow for lower density development, but a higher density development with more occupiable square footage, persons on site, and vehicular trips than the 256 multi -family unit project. Refer to Response 4 regarding the baseline conditions included in the EIR. Comment 6: The comment states that CEQA compliance must occur before the City approves a project. The comment also provides case law information regarding lead agency independent review requirements. The comment states that if an EIR bases its cumulative impact analysis on general plan projections it must explain why the projections are a realistic indicator of impacts, and that general plan projections are an inadequate basis for the cumulative impact analysis if the plan's projections exclude relevant data. The comment further states that this is particularly true in situations like the project, which was originally envisioned at higher density, the analyses that flow from the estimates may be flawed. Response 6: The Draft EIR and both Clarification documents were prepared by RE Consulting, under contract to the City. RE Consulting is the Citys consultant's, not the applicant's. By engaging RE Consulting to prepare the EIR, the City has exercised its independent judgment in preparation of the environmental analysis. CEQA allows a lead agency to hire experts to help it prepare these technical documents. (Pub. Resources Code, section 21082.1.) The EIR does not base its cumulative impact analysis on general plan data or projections. The City of Santa Ana's existing General Plan is dated and the City is in the process of preparing a comprehensive update to its General Plan. As detailed in Section 4.9, Population and Housing, demographic data is from the California Department of Finance, SCAG 2017 Local Profile for the City of Santa Ana, and U.S. Census data, and projections are from the Southern California Association of Governments (SCAG). In addition to this demographic data, the cumulative analysis was based on a list of past, present and probable future cumualtive projects for which applications were submitted to lead agencies prior to publishing of the Notice of Preparation, as detailed in Section 4.0, Environmental Setting and Impact Analysis, of the Draft EIR. 11A-112 Also, the project is within the land use build out assumptions of the General Plan. As described in Response 5, development of the project site pursuant to the existing General Plan land use and zoning designations would result in greater square footage, persons onsite, and vehicular trips than the 256 multi -family unit project. Thus, the project is within (and would not exceed) the General Plan Land Use Element build out conditions. Comment 7: The comment states that the FOR may fail to identify, discuss or mitigate potential impacts related to transportation. The comment asserts that southbound traffic on N. Main Street between Edgewood Road and Walkie Way have the potential to increase and block intersections because the project would reduce the distance between the intersections, while adding traffic. The comment states that the traffic technical study calculated the back up, but it was not evaluated or mitigated. Response 7: Page 4.11-10 of the Draft EIR describes that the City's thresholds of significance are based on the Level of Service (LOS) at intersections and roadway segments. There are no thresholds for queuing impacts under CEQA per the City's General Plan, traffic analysis guidelines, or the Orange County CMP. As detailed in the October Clarification to the FEIR, all of the Main Street intersections and roadway segments are forecast to operate at satisfactory levels of service with project traffic. Specifically, Tables T-2 and T-3 show that the intersection and roadway LOS would not change with implementation of the project and that impacts would be less than significant pursuant to the City's thresholds of significance. Additionally, all of the Main Street intersections near the project site are signalized or right-in/right-out. The traffic signal metering will prevent blocking of intersections. It should be noted that queue spillovers occur on most congested intersections, and traffic signals are timed to minimize queue spillovers. Furthermore, the project will extend the southbound left turn pocket to Edgewood Road, which will allow for left turning traffic to enter the left turn lane instead of waiting in the southbound through lane, which would result in lessening the through queues on Main Street at Edgewood Road. Comment 8: The comment states that once the FOR is revised to include an accurate project description, the additional substantive issues may be raised and addressed. The comment further states that supplemental information and evidence may be submitted up to the final public hearing. Response 8: As described in Response 3, the October Clarification to the FEIR provides a detailed description of the 256 multi -family unit project and does not need revision. The City of Santa Ana provided many opportunities for public comment on the project and EIR throughout the development approval process. Comment 9: The comment describes the requirements for recirculation of an EIR and explains that new information in an EIR is significant if it involves a substantial adverse effect. The comment also states that the FOR incorporates substantial and significant new information because it includes an Arborist Report with measures to mitigate potential impacts to trees. The comment states that the Arborist Report identifies eight unhealthy trees that are recommended for removal and asserts that the removal requires review of the City's Environmental and Transportation Advisory Committee. The comment also asserts that the western mastiff bat is a special status species and could be affected by the tree removal, and that this is not adequately addressed in the EIR. The comment asserts that the Arborist Report is a new mitigation measure, and thus the EIR may fail to inform decision makers about impacts. The comment further asserts that this involves changes to significant and unavoidable impacts resulting in the inability of agencies and the public to comment, and that the EIR should be recirculated. Response 9: The Arborist Report to which this comment refers was not significant new information. The Arborist Report was included as Appendix B of the Draft EIR and was circulated for public review and comment as part of the EIR. As included on page 3-18 of the Draft EIR, Project Description Feature (PDF)-1 is to incorporate the existing mature trees along the eastern and southern project site boundaries, as identified by the Arborist Report. Page 3-8 of the Draft EIR also describes that PDFs will be included in the Mitigation Monitoring and Reporting Program and would be monitored to ensure completion in the same manner as mitigation measures. Hence, the measures 11A-113 included within the Arborist Report are not new measures. In addition, page 4.1-6 of the Draft EIR describes that the Arborist Report has identified eight trees in poor health along the eastern property line, and page 4.1-18 of the Draft EIR describes that these eight trees would be removed and replaced due to poor health. These are on -site trees and not under the review of the City's Environmental and Transportation Advisory Committee, which reviews street trees in public locations. Regarding the Western mastiff bat, page 4.3-4 of the Draft EIR describes that the Western mastiff bat, has a low potential to roost in the large trees and palms. The bat's typical habitat involves conifer and deciduous woodlands, coastal scrub, grasslands, and chaparral, which do not occur on the project site, within Santiago Park, or in the adjacent areas. Due to the developed nature of the site and limited habitat availability, potential impacts to the western mastiff bat from implementation of the proposed project would be less than significant. Overall, there have been no changes regarding the Arborist Report and potential impacts to the Western mastiff bat since public review of the Draft EIR. Furthermore, these issues do not involve significant and unavoidable impacts and do not result in the inability of agencies and the public to comment. Comment 10: The comment is a summary of previous comments and states that the EIR's project description, baseline, and consistency requirements are not met as the project as originally envisioned is different than the one before council. The comment states that one a new EIR is prepared additional substantive comments may be raised and addressed. The comments requests notice of future project meetings and requests the City Council to deny the project. Response 10: Refer to previous Responses related to the project description, baseline, and consistency requirements. As detailed previously, the modified project would not result in any significant new information and preparation of a new EIR or recirculation of the EIR is not warranted. Noticing of future project meetings will continue to occur. Comment 11: The comment states that the Park Santiago Neighborhood Association (PSNA) is concerned about the pursuit of approvals that do not conform to the policies and objectives of the City's General Plan and the City's willingness to consider a high density mult4amily residential development in an area where it would not mesh and other viable development options for the site that would not have a detrimental effect on the community and that would conform with the policies and objectives of the General Plan should be considered. The comment requests rejection of the project, states the project is inconsistent with the General Plan and the character of the surrounding community. The comment also requests formal notification of future meetings about the project. Response 11: Refer to Response 1 regarding the project's consistency with the General Plan. The comment does not specifically identify an environmental detrimental effect on the community. The potential environmental effects on the community have been evaluated in the EIR document pursuant to CEQA. In addition, Section 4.7, Land Use and Planning, of the Draft EIR describes that the project would be consistent with urban and modern development along the N. Main Street corridor and be consistent with the General Plan designation of the area as a gateway to the city. As described in the October 28, 2019 Planning Commission and November 19, 2019 City Council staff reports the current land use designation for this site is Professional and Administrative Office (PAO) with a maximum floor area ratio of 1.5, which applies to areas that are predominately professional offices and/or administrative offices or areas where such development is encouraged. The modified project requires an amendment to the Land Use Element to amend the General Plan Land Use designation of the site to District Center (DC) with a density of 58 dwelling units per acre or a floor area ratio of 1.43, which the City Council approved on November 19, 2019. The modified project floor area ratio is consistent with the existing allowable floor area ratio of 1.5. Main Street at the project site is an urban corridor. C 11A-114 The properties immediately adjacent to the site include Santiago Park (Open Space, 0) to the north, single-family residential homes to the south and east (Low Density Residential, LR-7) and the Discovery Cube (Professional and Administrative Office, PAO) across Main Street to the west. The General Plan land use map designates the surrounding areas to the northwest, northeast, south of the Santa Ana 1-5 Freeway and along Main Street north of Seventeenth Street as District Centers. District Centers are to be developed with an urban character that includes a mixture of high-rise offices, commercial and multi -family residential uses which provide shopping, business, cultural and housing opportunities within close proximity to each other, close to transportation opportunities and in prime development focus areas. Residential development within these areas is allowed at a density of up to 90 acres. The General Plan Amendment to District Center is consistent with the surrounding District Center designations along Main Street. The EIR also describes that due to the difference in land use density and scale of the project and existing single- family development, the project includes design measures, such as courtyards, setbacks, lower building heights on the east side of the site, and architectural treatments to provide a residential character toward the existing single- family residential areas. Although, resulting in a higher density and intensity development than the adjacent single- family residences, the project is consistent along N. Main Street and the design includes: increasing the existing wall height to 8-feet, retention of most of the mature trees and installation of new trees on the eastern portion of the site to screen views, provision of a 90-foot minimum building setback, and provision of a residential character that does not currently exist on the project site. In addition, the Park Santiago Neighborhood will continue to be notified of any meetings regarding the project. Comment 12: The comment provides a discussion of the entitlements and approvals required for the project, and a summary of the project revisions and Planning Commission and City Council meetings regarding the project. The comment states that there is no joint parking agreement for the project, and that any parking agreement would be revocable. Response 12: The project includes a lot line adjustment to create two separate lots, one parcel for the residential use and one parcel for shared parking with the Discovery Cube. The residential lot will be approximately 4.4 acres in size and the shared parking lot parcel will be approximately 1.4 acres and contain 180 parking spaces. Comment 13: The comment asserts that the project would result in a potential home price devaluation and therefore, a deprivation of the property rights of adjacent landowners. Response 13: Refer to Response 2 regarding CEQA Guidelines Section 15382. Comment 14: The comment provides information related to the requirements of cities to have General Plans and that modification of the General Plan could result in impacts, and thus, should not be taken lightly. The comment also states that the intensity of the proposed use is in contrast to surrounded uses including an open space park to the north and single-family residential homes to the east and south which have a maximum allowable density of 7 dwelling units per acre. Therefore, the project is inconsistent with the General Plan. Response 14: Refer to Response 5 regarding the development that could occur from development under the existing General Plan and zoning designations. Also, refer to Response 11 regarding the contrast of the project with adjacent uses. Additionally, as described in the October 28, 2019 Planning Commission and November 19, 2019 City Council staff reports the current land use designation for this site is Professional and Administrative Office (PAO) with a maximum floor area ratio of 1.5. The project would result in a density of 58 dwelling units per acre or a floor area ratio of 1.43. Thus, the modified project floor area ratio is consistent with the existing allowable floor area ratio of 1.5. 11A-115 Comment 15: The comment states that the City's current General Plan does not support the approval of the project. The comment provides excerpts from the General Plan Land Use and Housing Elements and states that the project would be inconsistent with the excerpts. Each of the excerpts in the comment are listed in the response below. Response 15: The resolution for General Plan Amendment No. 2018-06 for the project states several goals/objectives and policies of the General Plan that the project supports or is consistent with. Additionally, in Response 1, Section 4.7, Land Use and Planning, of the Draft EIR provides a complete assessment of the project's compliance with the General Plan policies that are relevant to the proposed project and determined that the project would not conflict with any policies that were adopted for the purpose of avoiding or mitigating an environmental effect. A project's inconsistency with a policy is only considered significant if such inconsistency would cause significant physical environmental impacts (as defined by CEQA Guidelines Section 15382). Each of the General Plan excerpts listed in the comment are provided in the table below with a description of consistency with the proposed project. There is no evidence that the project is inconsistent with any policy — and even if there were — there is no evidence that such inconsistency (which there is not) would cause a significant impact to the physical environment. General Plan Excerpt Per Comment Project Consistent A key role in shaping [the] future growth and As described in Table 4.7-2 of the Draft EIR, the project redevelopment, the Land Use Element perpetuates would provide residences near existing employment, positive land uses and promotes development which shopping, and services. The project would assist in the supports a high quality of life throughout the jobs to housing balance and provide additional housing community. within an area that has limited vacancy, thus, providing a net community benefit. In addition, the project would include open space and recreation amenities that would enhance the quality of life for site residents. Also, as described throughout this EIR, although the project would result in high density residential next to low density residential land uses, the project would not result in significant environmental effects to adjacent residents, such as light, shade, glare, noise, air quality, or traffic. Many of the City's land use characteristics are directly The existing office building is a modem structure and is related to its historic position as one of Orange adjacent to other modem structures along N. Main County's earliest pioneer settlements. Street, which does not include historic resources. Also, as described in Section 4.4, Cultural/Historic Resources, of the EIR, the proposed project would not result in impacts to any historic resources, particularly those within the Park Santiago neighborhood. Land Use Goal 3: Preserve and improve the character As described in Draft EIR Section 4.1, Aesthetics, and and integrity of neighborhoods. Section 4.7, Land Use and Planning, the proposed project includes design measures, such as courtyards, setbacks, varied building heights, and architectural treatments that would not adversely impact the character or integrity of the neighborhood. Section 4.7, Land Use and Planning, also describes that the project site's current designation of PAO provides for office/commercial uses that are not 11A-116 General Plan Excerpt Per Comment Project Consistent consistent with the adjacent single-family residential. Multi -family residential uses are generally more consistent with single-family uses than office/commercial uses, and it is typical for single and multi -family residential developments to be sited adjacent to one another. The proposed project's multi- family uses and 90-foot minimum building setback with trees along the site boundary would provide a transition between the low density single-family residential development to the east and south and the higher density commercial/office uses along N. Main Street. Land Use Goal 6: Reduce residential overcrowding to As described in Table 4.7-2 of the Draft EIR, the project promote public health and safety. would develop additional multi -family rental housing within the City to assist in providing additional housing options and improve the rental unit vacancy rate. Policy 1.2: Support high density residential As described in Table 4.7-2 of the Draft EIR and development within the City's District Centers as a part Response 11, the proposed project is a high -density of mixed -use development. residential development within an area of the City that contains existing District Centers. Policy 2.2: Support new development which is As described in Draft EIR Section 4.1, Aesthetics, and harmonious in scale and character with existing Section 4.7, Land Use and Planning, the project would development in the area. be consistent with urban development along N. Main Street and includes design measures, such as courtyards, setbacks, lower building heights on the east side of the site, and architectural treatments to provide a residential character toward the existing single-family residential areas. Although, resulting in a higher density and intensity development than the adjacent single- family residences, the project is consistent along N. Main Street and the design includes: increasing the existing wall height to 8-feet, retention of most of the mature trees and installation of new trees on the eastern portion of the site to screen views, provision of a 90-foot minimum building setback and provision of a residential character that does not currently exist on the project site. Overall, the project would provide a more harmonious residential character than currently exists between the site and the single-family area, however, the residential character would be greater and scale and provide a multi -family character that is different than the single family residential areas to the east and south. Policy 3.1: Support development which provides a As described previously, the project is sited along the positive contribution to neighborhood character and Main Street corridor and would provide modern identity. architecture that is consistent with the adjacent buildings along Main Street and be consistent with the 11A-117 General Plan Excerpt Per Comment Protect Consistent General Plan designation of the area as a gateway to the City. The proposed project's multifamily uses and 90-foot minimum building setback with trees along the site boundary would provide a transition between the low density single-family residential development to the east and south and the higher density commercial/office uses along N. Main Street. In comparison to the existing vacant office building, the proposed residential uses, open space courtyards, and landscaping would support the residential character of the Park Santiago area, while supporting the General Plan gateway designation and existing urban development along Main Street. Policy 3.5: Encourage new development and/or As described previously, the project is sited along the additions to existing development that are compatible in Main Street corridor and would provide modern scale, and consistent with the architectural style and architecture that is consistent with the adjacent character of the neighborhood. buildings along Main Street. The project also includes design measures, such as courtyards, setbacks, lower building heights on the east side of the site, and architectural treatments to provide a residential character toward the existing single-family residential areas. Although, resulting in a higher density and intensity development than the adjacent single-family residences, the project is consistent along N. Main Street and the design includes: increasing the existing wall height to 8-feet, retention of most of the mature trees and installation of new trees on the eastern portion of the site to screen views, provision of a 90-foot minimum building setback and provision of a residential character that does not currently exist on the project site. Policy 5.2: Protect the community from incompatible As described in Draft EIR Section 4.7, Land Use and land uses. Planning, the project would provide multi -family residential units along the N. Main Street urban multi- use corridor and adjacent to single-family residential uses. Although the project would result high density residential next to low density residential land uses, the existing single-family residential area would no longer be adjacent to an office use, but a more compatible (although higher in density) residential use. In addition, the single-family lots adjacent to the project site would be buffered by an 8-foot high masonry wall, tall landscaping, and a 90-foot minimum building setback. Also, the access to the site would be from N. Main Street, keeping vehicular noise and emissions from adjacent residential single-family land uses. Thus, the project would not result in incompatible land uses. Generally, incompatible land uses occur from siting 10 11A-118 General Plan Excerpt Per Comment Project Consistent land uses such as industrial uses next to residential or residential uses next to high noise level uses, (e.g. airports). Policy 5.4: Support land uses which are consistent with As described previously, the proposed project is the Land Use Plan of the Land Use Element consistent with the build out intensity of the site as anticipated by the General Plan. In addition, the project is consistent with provision of a gateway to the City and existing development along the Main Street corridor. In addition, the General Plan land use map designates the surrounding areas to the northwest, northeast, south of the Santa Ana I-5 Freeway and along Main Street north of Seventeenth Street as District Centers. Thus, the District Center land use designation of the site is consistent with the surrounding District Center designations along Main Street. Policy 5.5: Encourage development which is compatible As described in the previous responses, the proposed with, and supportive of surrounding land uses. project would provide multi -family residential units along the Main Street urban multi -use corridor and adjacent to single-family residential uses. Although the single- family residences consist of low -density one-story structures, the change of the site from an office use, to a residential use (although higher in density) would not result in incompatibility. In addition, the project site is within an employment, shopping, and business area that the proposed residential uses would support. "[T]he majority of employed Santa Ana residents work Section 4.9, Population and Housing, describes that the outside of the City, approximately 20 percent work Santa Ana and City of Orange areas are jobs -rich. The within the City. existing jobs -housing ratio is 2.06 in Santa Ana and is projected to be 2.13 in 2040. The SCAG preferred jobs — housing ratio is 1.36. The project would reduce the jobs -housing ratio slightly to 2.05, and to 2.11 in 2040, as shown in Draft EIR Table 4.9-7. This would be a beneficial effect of providing multi -family housing on the project site, where employees can easily travel to employment opportunities within the Santa Ana and City of Orange areas, which are jobs -rich. Approximately 70 percent of all residential areas within As described by the City's General Plan Housing the City are single-family residential neighborhoods. Element (on page 15), Santa Ana has a rich mosaic of Many of these neighborhoods are established and well diverse neighborhoods many of which are made up of a maintained, and several neighborhoods contain state mixture of single-family, townhomes, apartments, and a and local historic resources. combination of industrial and residential uses. In addition, it states (on page 44) that to protect and stabilize residential neighborhoods, Santa Ana is developing new residential neighborhoods in District Centers close to employment centers to provide a diverse community that increases housing choice to 11 11A-119 General Plan Excerpt Per Comment Project Consistent accommodate various needs including single- and multiple -family housing, mobile homes, mixed/multiuse, and special needs housing. Also, as detailed previously, and in Section 4.4, Cultural/Historic Resources, the proposed project would not result in impacts to historic resources. To protect and stabilize residential neighborhoods, As described previously, the General Plan land use support the City's economic base, and provide housing map designates the surrounding areas to the northwest, for the local workforce, Santa Ana is developing new northeast, south of the Santa Ana 1-5 Freeway and residential neighborhoods in District Centers close to along Main Street north of Seventeenth Street as employment centers. These District Centers include the District Centers. Thus, the District Center land use Metro East Mixed Use Overlay Zone, MacArthur Place, designation of the site is consistent with the Downtown Santa Ana, City Place, and similar locations. surrounding District Center designations along Main [... ] These residential neighborhoods are intensely Street. In addition, the site is transit oriented with two urbanized, transit oriented, and explicitly designed to OCTA bus routes that provide service every 10-20 support a full array of housing needs in Santa Ana. minutes Monday through Friday and connects to the Santa Ana Regional Transportation Center and the Anaheim Regional Intermodal Center that provides rail service throughout Califomia. The City has identified areas for future development As described previously, the General Plan land use and mixed uses within its District Centers and transit map designates the surrounding areas to the northwest, corridors. [... ] The sites are specifically chosen to northeast, south of the Santa Ana 1-5 Freeway and create distinct and vibrant activity centers linked along Main Street north of Seventeenth Street as together with a variety of transportation options. District Centers. Thus, the District Center land use designation of the site is consistent with the surrounding District Center designations along Main Street. In addition, the site is within a transit corridor. Main Street provides direct access to two freeways and is transit oriented with two OCTA bus routes that provide service every 10-20 minutes Monday through Friday and connects to other regional transit services. In addition, the site is surrounded by sidewalks and adjacent to a regional bike trail. Thus, the project site is linked to surrounding mixed -uses and provides for a variety of transportation options. Policy HE-1.7: Historic Preservation. Support As described in Section 4.4, Cultural/Historic preservation and enhancement of residential structures, Resources, of the EIR, the proposed project would not properties, street designs, lot patterns, and other visible result in impacts to any historic resources, particularly reminders of neighborhoods that are considered local those within the Park Santiago neighborhood. historical or cultural resources. Comment 16: The comment states that the Project contemplates public access to the City's Santiago Park via the proposed development and creates a private -to -public access. The comment also states that the Project document's frequently reference the Project as a District Center, although it does not contemplate a mixed -use component, a requirement of any District Center development. The comment concludes for those reasons, the project would be inconsistent with and would violate the City's General Plan. 12 11A-120 Response 16: As described on page 7 of the October Clarification to the FEIR, the northern driveway would include a public use access easement to Santiago Park. Therefore, the project would not create a private -to -public access, but would provide for public access from Main Street to Santiago Park. The General Plan describes mixed -use land use designation that allows for both vertical and horizontal mixed -use developments, with an emphasis on linkages to a range of transportation options such as the proposed project. The designation takes into account the surrounding District Center area which creates a horizontal mixed -use setting with commercial, office, and residential uses such as the project. In addition, the City's District Center designation is not only utilized for mixed -use development projects. As described in Response 11, required the General Plan land use map designates the surrounding areas to the northwest, northeast, south of the Santa Ana I-5 Freeway and along Main Street north of Seventeenth Street as District Centers. The General Plan Amendment to District Center is consistent with the surrounding District Center designations along Main Street. Comment 17: The comment asserts that the project would result in a potential home price devaluation and therefore, a deprivation of the property rights of adjacent landowners. Response 17: Refer to Response 2. Comment 18: The comment cites case law about development agreements and states that the development agreement can be read to unconditionally commit to an approval without first attaining CEQA compliance and without proper preservation of the City's police powers, and any related project approval may be held invalid. Response 18: The development agreement for the project is part of the requested approvals, as listed in the October Clarification to the FEIR, and is contemplated during approval of the project and after completion of CEQA documentation. On November 19, 2019 the City Council voted to certify the Final Environmental Impact Report No. 2018-01 (SCH No. 2018021031), adopt findings of fact pursuant to CEQA, adopt a Statement of Overriding Considerations, and adopt the Mitigation Monitoring and Reporting Program. The EIR analyzed the project and the Development Agreement. The second reading of the Development Agreement is scheduled for December 3, 2019. The CEQA compliance was completed prior to the approval of the development agreement for the project. Comment 19: The comment states that if the City Council approves the project it would be subject to challenge by a referendum and that opponents to the project have increased through time. The comment states that should a referendum be conducted the City would have a mandatory duty to process it. Response 19: The city notes the rights of the citizens of the City to conduct a referendum. Comment 20: The comment states that neighboring properties are entitled to due process and a valid notice of the hearing must be provided. The comment provides a case law discussion and a description of the noticing requirements within the City's Municipal Code. The comment also states that the public hearing notice did not include the recommendation of the planning commission. Response 20: Pursuant to existing requirements for noticing, the November 19, 2019 City Council public hearing notice was posted in the Orange County Register and mailed to property owners and residents within 500 feet of the project site and included the Planning Commission's recommendation. "On October 28, 2019, the Planning Commission by a vote of 3:2, voted to recommend denial of the project." Comment 21: The comment requests the City Council deny the project, states that PNSA reserves its right to submit further public comment and requests written notice in advance of any future meetings or notices of determination related to the Project. 13 11A-121 Response 21: The City notes the request to deny the project and public comment regarding the project will continue to be accepted. The Park Santiago Neighborhood will continue to be notified of any meetings regarding the project. 14 11A-122