HomeMy WebLinkAboutNS-2518 - Approving the Amendment to the Development Agreement Between City of Santa Ana and Mullrock Mortgage, LLC ORDINANCE NO. N8 -2518 0EEO I~0, ,,, ,, ~ ~ ~-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA APPROVING THE AMENDMENT TO THE
DEVELOPMENT AGREEMENT BETWEEN THE CITY OF
SANTA ANA AND MULLROCK MORTGAGE, LLC
THE CITY COUNCIL OF THE CITY OF SANTA ANA ORDAINS AS FOLLOWS:
Section 1: The City Council hereby finds, determines and declares as follows:
The 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. Pursuant to this authority, the City and BentallNVestminster
Partners, predecessor in interest to Mullrock Mortgage LLC, previously
entered into a Development Agreement dated on or about December 12,
2000.
The City enters into this Amendment to Development Agreement pursuant
to the provisions of the Government Code and applicable City policies.
Co
The Planning Commission has, following a public hearing, on November 12,
2002 recommended approval of this Amendment to Development
Agreement.
Entering into this Amendment to Development Agreement would provide
the City with extraordinary and significant benefits that are of regional
significance, relate to existing deficiencies in public facilities, require
Mullrock Mortgage, LLC 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.
The City Council has held a noticed public hearing on this Ordinance, and
has considered all testimony presented thereto.
Section 2: The City Council has reviewed and considered the information
contained in the Final Environmental Impact Report and Addendums (No. 02-286)
prepared with respect to this Ordinance. The City Council has, as a result of its
consideration, and the evidence presented at the hearings on this matter, determined
that, as required pursuant to the California Environmental Quality Act ("CEQA") and the
State CEQA Guidelines, that this Final Environmental Impact Report and Addendum
adequately address the expected environmental impacts of this Ordinance. On the basis
of this review, the City Council finds that the Final Environmental Impact Report and
Ordinance No, NS-2518
Page 1 of 3
Addendums comply with the requirements of CEQA. The City Council hereby certifies
and approves the Final Environmental Impact Report and Addendum and directs that the
Notice of Determination be prepared and filed with the County Clerk of the County of
Orange in the manner required by law.
Pursuant to Title XlV, California Code of Regulations ("CCR") § 735.5(c)(1), the
City Council has determined that, after considering the record as a whole, there is no
evidence that the proposed project will have the potential for any adverse effect on wildlife
resources or the ecological habitat upon which wildlife resources depend. The proposed
project exists in an urban environment characterized by paved concrete, roadways,
surrounding buildings and human activity. Therefore, pursuant to Fish and Game Code
§ 711.2 and Title XIV, CCR § 735.5(a)(3), the payment of Fish and Game Department
filing fees is not required in conjunction with this project.
Section 3: The Amendment to Development Agreement, a true and correct
copy of which is attached hereto as Exhibit 1, is hereby approved, and the Mayor and
Clerk of the Council are authorized to execute it on behalf of the City. The Clerk of the
City is hereby authorized and directed to cause this Development Agreement to be
recorded with the County RecordeCs Office.
Section 4: If any section, subsection, sentence, clause, phrase or portion of this
ordinance is 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.
ADOPTED this 2nd day of.December, 2002.
,/~L~el A7 ~lid6
//,"Mayor
APPROVED AS TO FORM:
Joseph W. Fletcher
City Attorney
i~i~¢m iA~i~taa ifu f/tt c~.r~~y Att o r ney
Ordinance No. NS-2518
Page 2 of 3
AYES:
NOES:
ABSTAIN:
NOT PRESENT:
Councilmembers:
Alvarez, Bist, Christy, Franklin, Pulido, Solorio
(6)
Councilmembers: None (0)
Councilmembers Garcia (1)
Councilmembers None (0)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached
Ordinance No. NS-2518 to be the original ordinance adopted by the City Council of the
City of Santa Ana on December 2, 2002, and that said ordinance was published in
accordance with the Charter of the City of Santa Ana. ~
Date: ,/o~-~-~2.-~ ~
Clerk of the Council
City of Santa Ana
Ordinance No. NS-2518
Page 3 of 3
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of Santa Ana
20 Civic Center Plaza
P.O. Box 1988
Santa Ana, California 92702
ATTN: Clerk of the Council
FREE RECORDING
GOVERNMENT CODE § 6103
FIRST AMENDMENT TO
DEVELOPMENT AGREEMENT
THIS AMENDMENT is made and entered into this. 18th day of November, 2002, by and between
the CITY OF SANTA ANA, a charter city and municipal corporation duly organized and existing
under the Constitution and laws of the State of California ("City") and MULLROCK
MORTGAGE, LLC, A Delaware Limited Liability Company ("Owner" or "Property Owner").
A. Recitals
The parties to this First Amendment to Development Agreement hereby agree as follows
1. 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. City enters into the Agreement pursuant to the provisions of the
Government Code and applicable City policies.
2. The City and BentallFvVestminster Partners, Owner's predecessor in
interest, have previously entered into a Development Agreement dated on or about December 12,
2000, recorded as Document No. 20000672556 with the Recorder of the County of Orange
(hereafter referred to as the "Development Agreement").
3. Subsequent to execution of the Development Agreement,
Bentall/Westminster Partners sold the Property, as that word is defined in the Development
Agreement, to Owner.
4. The City and Owner wish to amend the Development Agreement to
provide for construction and operation on the Property of (i) an approximate 80,000 square foot,
four-story office tower, which may include up to 5,000 square feet of ground floor retail/service,
with underground parking of approximately 63 spaces; (ii) an approximate 35,000 square feet
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EXHIBIT 1
Ordinance No. NS-2518
two-story health club; (iii) addition of 290 parking spaces to the existing parking structure; and
(iv) until commencement of the office tower, surface parking on the Office tower pad as Phase II
(as defined in the Development Agreement).
5. The City and Owner additionally wish to amend the Development
Agreement to require Owner to pay the City $200,000.00 concurrently with the issuance of the
first building permit in full satisfaction of all Exhibit E ELK Mitigation Measures - Project
Impact Summary "Traffic and Circulation" mitigation measures other than Traffic and
Circulation Mitigation Measure Nos. 1 (TDM program) and 2 (bus turnout), and Exhibit E to the
Development Agreement ELK Mitigation Measures - Cumulative Impact Summary "Traffic and
Cimulation" mitigation measures.
6. The City and Owner additionally wish to amend the Development
Agreement to permit the maximum density and intensity for the Property to be developed to
consist ifa maximum of 280,000 square feet of commercial office space (of which up to 5,000
may be ground floor retail/service), a 35,000 square foot health club, and 1,588 parking spaces to
be located in the detached parking structure or subterranean parking or surface parking on the
Phase II office pad prior to development thereof
7. The City and Owner additionally wish to amend the Development
Agreement to require Owner to add an additional $10,000.00 to the cost of the work of public art
to be placed on the Property, such that a total of $35,000.00 must be devoted to the work of
public art.
B. Findings
The parties hereto acknowledge and find the following to be true:
1. This Amendment is intended to assure adequate public facilities at the
time of development.
2. This Amendment is intended t0~assure development in accordance with
City's General Plan, applicable Specific Design Zoning and Capital Improvement Plan.
3.. This Amendment will permit achievement of goals and objectives as
reflected in the City's General Plan and all applicable Specific Design Zoning.
4. Owner is required by existing City regulations to provide mitigation for
certain impacts and pay certain regulatory fees as conditions of approvals through the regulatory
process. :
5. This Amendment will allow City to realize extraordinary and significant
public infrastructure facilities and other supplemental benefits in addition to those available
through the existing regulatory process.
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EXItlBIT 1
Ordinance No. NS-2518 :
6. Many of the extraordinary and significant benefits identified as
consideration to City for entering into this Amendment represent benefits which would not
otherwise be required as part of the development process.
7. On November 11, 2002, the Planning Commission of the City ("Planning
Commission"), after giving notice pursuant to Government Code Sections 65090 and 65091,
held a public hearing to consider the Owner's application for this Amendment. The Planning
Commission recommended to the City Council of City that it execute'this Amendment. On
November 18, 2002, the City Council of the City of Santa Ana ("Council"), after providing
notice as required by law, held a public hearing to Consider the Owner's application for this
Amendment.
C. Amendment to the Project.
Section 1.2 of the Development Agreement is hereby amended to read as follows:
1.2 Owner. Owner represents and warrants that it has a legal or equitable
interest in the real property located in City of Santa gna, California, legally
described on Exhibit A attached hereto and incorporated herein, and graphically
described on Exhibit B attached hereto and incorporated herein (hereinafter the
"Property"). The Property consists of approximately 5.13 acres, located on Tustin
Boulevard south of Seventeenth Street in th~ City of Santa Ana. The Owner
desires to develop the Property as set forth in Exhibit C on Exhibit B attached
hereto and incorporated herein. The Property will be developed with a maximum
F.A.R. (floor area ratio)of 1.5.
D. Amendment to Public Art'Requirement
Section 5.10 of the Development Agreement is hereby amended to read as follows:
5.10 Development, Construction, Installation and Maintenance of Public
Art. In consideration for the extraordinary and significant benefits set forth in
this Section, the Owner has been legally vested under Section 5.2 with regard to
the permitted uses of land, density, and intensity of use, Owner shall cause the
design, construction, installation and maintenance of a work of public art on the
Property.
The work of public art shall be placed on the Property in a location, as approved
by the Executive Director of the Planning and Building Agency, that will provide
the greatest opportunity for viewing by the general public. It is to be located in an
open area viewable from the public right of way, or on the exterior of an
assembly.
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EXHIBIT 1
Ordinance No. NS-2518
The Owner shall expend $35,000 at a minimum on the work of public art. This
minimum expenditure may include the work of public art itself (and rendering
costs if applicable), the cost of constructing any structure (e.g., a pad) to enable
display of the work of public art, the artist's fe~ if separate, and identification
plaque(s). This minimum expenditure shall not include any other cost, including
but not limited to any costs of land, publicity, administrative costs, art
consultant's fee, transportation costs, utility costs to illuminate the artwork, or
maintenance costs.
To be eligible, the proposed work of public art shall not be:
a. a mass produced object from a standard design;
b. a reproduction, whether produced by mechanical or other means, of an
original work of art;
c. elements ofbnilding, designed by the building's architect, as opposed
to a public artist commissioned for the express purpose of creating a unique work
of public art; nor
d. landscaping, in whole or in part.
Deliverables specified below must be designed, constructed or executed prior to
the triggering event.
Deliverable
Triggering Event
1. Submit final design and
location of Public Art to Planning
and Building Agency.
Prior to issuance of first.Building Permit, or
five (5) years from the effective date of this
Agreement, whichever comes first.
2. Install Public Art.
2. Maintenance Agreement with
City, binding on Owner and
successors, to maintain work of
public art in perpetuity.
Prior to City's issuance of Certificate of Use
and OccuPancy for any building, or six (6)
years from the effective date of this
Agreement, whichever comes first.
Prior to City's issuance of Certificate of Use
and Occupancy for any building, or six (6)
years from the effective date of this
Agreement, whichever comes first.
EXHIBIT 1~
Ordinance No. N8-2518
E. Effect of Loss of Use of Health Club
Should the health club to be constructed and operated on the Property cease operations in whole or
in part, then Property Owner agrees that any future use of all or part of the approximately 35,000
square feet devoted to the health club shall either (a) be utilized by a use for which the parking
standard is less than 7.1 parking spaces per 1,000 square feet, or (b) Property Owner shall not seek
to utilize the variance to parking standards granted by the City Council of the City in conjunction
with this Amendment.
F. Exhibit C
Exhibit C to the Development Agreement is hereby replaced by Exhibit C attached hereto and
incorporated herein by this reference.
G. Effect of Amendment
The exhibits to this Amendment shall supercede and replace the exhibits to the Development
Agreement. Except as necessary to implement the intent of this Amendment, the Development
Agreement shall remain in full force and effect. In the event ora conflict, terms contained herein
shall prevail over conflicting provisions of the Development Agreement.
IN wITNEss WHEREOF, the Parties have executed this Amendment the day and year first above
written.
5
EXItlBIT 1
Ordinance No. NS-25t8
ATTEST:
Pa~cia E. Healy
Clerk of the Council
APPROVED AS TO FORM:
Joseph W. Fletcher
City Attorney
By
Benjamin Kaufman
Chief Assistant City Attomey
CITY OF SANTA ANA,
a charter city and murdcipal corporation
By.
David N. Ream
City Manager
MI3LLROCK MORTGAGE, LLC, A
Delaware Limited Liability Company
By:
TiffS:
6
EXHIBIT l
Ordinance No; N$-2518
EXHIBIT C
Plan of Development
The property is a 5.13-acre parcel located at Tustin Avenue, west of the Costa Mesa (55) Freeway
and south of Seventeenth Street in the City of Santa Aha as shown on the map set forth in Exhibit B
of this Development Agreement. The assessor's parcbl numbers for the property are 400-21 I'05
and 400-211-04. The development of the property will consist of two phases of development.
Phase I will involve construction of a 200,000 square foot, 10-story office tower and a seven level
detached parking structure. Phase IIA will consist ofa 35,000 square foot, two-story health club
and Phase liB will consist of a 4-story office tower with 80,000 square feet of office space, which
may include up to 5,000 square feet of retail space and one level of subterranean parking containing
63 parking spaces. An additional 282 parking space~ will be added to the parking structure to
accommodate parking for the Phase II.A. health club and the Phase liB. office tower.
The following standards shall specifically apply to the development of the property and are
incorporated into this plan of Development for the property:
Permitted Uses of theProperty: The uses permitted for the property shall be
professional and business offices, commercial/retail uses, and restaurant.
II.
Density of Use: The density of use for the property .shall consist of a total of
280,570 square feet of commercial office space, 5,000 square feet of commercial retail
space, a 35,000 square foot health club, 1,012 parking space~ to be located in one seven
level detached parking structure and 63 parking spaces in the subterranean garage to be
located within the 4-story office tower.
III.
Intensity of Use: The intensity of use fqr the property shall be 1.5 of Floor Area
Ratio (FAR) (parking structure not included).
IV.
The Maximum Height and Size of Proposed Buildings: The maximum height and
size of the buildings to be constructed in connection with Development of the property
shall be subject to a height limitation of 200 feet above ground level, which is defined as
the elevation of the top slab of the first floor on-grade, and a total of 337,000 square feet
floor area (parking structure not included).
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EXHIBIT
Ordinance No. NS-2518