HomeMy WebLinkAbout31B - MACARTHUR SOUTH DEVELOPMENTAL RIGHTS
REQUEST FOR
COUNCIL ACTION
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CITY COUNCIL MEETING DATE:
CLERK OF COUNCIL USE ONLY:
FEBRUARY 6, 2006
TITLE:
TRANSFER OF DEVELOPMENT RIGHTS FOR
THE INTEGRAL LOW RISE CONDOMINIUMS
AT MACARTHUR PLACE SOUTH
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CITY MANAGER
APPROVED
o As Recommended
o As Amended
o Ordinance on 1" Reading
D Ordinance on 2nd Reading
o Implementing Resolution
o Set Public Hearing For
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
Direct the City Manager to authorize the transfer of development rights
for the Integral Partners low-rise condominium project to Western Pacific
Housing, Inc., a subsidiary of D.R. Horton with such non-substantive
changes as may be approved by the City Manager and City Attorney.
DISCUSSION
On June 20, 2005, the City Council approved numerous entitlements
requested by Nexus Development Corporation for MacArthur Place South, a
mixed-use project within Hutton Centre. These entitlements included a
development agreement for the entire development as well as a conditional
use permit, tentative tract map and a variance for a 276 unit low-rise
condominium development to be constructed by Integral Partners
Development, LLC. Since the proj ects approval, Integral Partners has
elected to sell its development rights for this project to Western
Pacific Housing, Inc., a wholly owned subsidiary of D.R. Horton. Western
Pacific is the D.R. Horton subsidiary responsible for all residential
development in Southern California.
Section 4.2 of Development Agreement No. 2005-02 allows for the transfer
of development rights to another party with City Council approval. Prior
to the transfer, the Development Agreement requires a review of D. R.
Horton's development experience and financial capability to ensure it has
the financial capability and development experience that is equal to or
greater than Integral. Further, the transfer of rights will include an
assignment and assumption agreement confirming that the duties,
obligations and liabilities from this Agreement are assumed by D.R.
Horton. This ensures that the plans approved by the Planning Commission
and City Council, together with all conditions and requirements, are
fully satisfied.
31 B-1
Transfer of Development Rights for
the Integral Low Rise Condominiums
February 6, 2006
Page 2
Staff has reviewed various financial information concerning D.R. Horton.
According to the most recent data, D.R. Horton was the number one
homebuilder in the United States, with over 53,000 homes sold in 2005 and
was the third largest homebuilder in terms of revenue with over $11
billion dollars. Also, its expertise in building various types of
housing, including single-family, multi-family and urban infill projects,
substantiates its solid track record in developing the low-rise
condominiums. D. R. Horton/Western Pacific Housing has a variety of
similar projects that are presently under construction or which have been
completed, including a 251-unit mixed use project in Anaheim, a 220-unit
project in Garden Grove and a 263-unit development in San Diego.
Reference checks regarding these similar projects and D.R. Horton/Western
Pacific Housing's overall ability to perform have also confirmed a
successful track record.
Construction of the low-rise residential condominium project will not
commence until permits have been obtained and substantial construction
has begun on either the Lake Towers or Cinema Tower projects.
Substantial construction consists of foundation work for the towers,
including structural steel work and the pouring of concrete.
D.R. Horton/Western Pacific Housing is an experienced, fiscally sound
company that has the capabilities to construct the low-rise condominium
project. Therefore, staff recommends that the City Council authorize the
City Manager to execute documents transferring the development rights for
the 276-unit low-rise condominium project to D.R. Horton.
FISCAL IMPACT
There is no fiscal impact associated with this action.
M. Trevino
cutive Director
nning & Building Agency
VF:rb
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31 B-2