HomeMy WebLinkAbout75B - PH - 2001 E DYERREQUEST FOR
COUNCIL ANION
CITY COUNCIL MEETING DATE:
20, 2016
TITLE:
PUBLIC HEARING — FIRST AMENDMENT TO
DEVELOPMENT AGREEMENT NO. 2015-03
FOR THE HERITAGE VILLAGE MIXED-USE
DEVELOPMENT AT 2001 EAST DYER ROAD —
PAMELA SAPETTO, APPLICANT
{STRATEGIC PLAN NO. 5, 3)
i
CITY MANAgrR
RECOMMENDED ACTION
STAFF RECOMMENDATION
CLERK OF COUNCIL USE ONLY:
.•^• _01
❑
As Recommended
❑
As Amended
❑
Ordinance on 18' Reading
❑
Ordinance on 2nd Reading
❑
Implementing Resolution
❑
Set Public Hearing For
CONTINUED TO
FILE NUMBER
Approve the First Amendment to Development Agreement No. 2015-03.
PLANNING COMMISSION RECOMMENDATION
Deny the First Amendment to Development Agreement No. 2015-03. At its regular meeting on
November 14, 2016, staff recommended that the Planning Commission recommend that the City
Council approve the applicant's request to amend the recorded development agreement.
However, after receiving public testimony on the proposal, the Planning Commission voted to
recommend that the City Council deny the First Amendment to Development Agreement No.
2015-03 by a vote of 5:1 (Gartner opposed, Bacerra abstained). Approval of the amendment
would have added language to the agreement to allow the payment of the required inclusionary
housing funds per each phase of development instead of a single lump sum as required by the
Housing Opportunity Ordinance. The Planning Commission made no other changes to the terms
of the agreement as outlined in the attached staff report (Exhibit A).
DISCUSSION
The developer of the Heritage Village mixed-use development is proposing to amend their
approved and recorded development agreement to alter the timing of their payment for their
inclusionary housing in -lieu fees. Currently, the Santa Ana Municipal Code (SAMC) requires the
housing in -lieu fee to be paid at issuance of the first building permit, which would require a
payment of approximately $9,700,000 when the first building permit is issued. The applicant is
proposing to allow the housing in -lieu fees be paid as permits are issued for each of the three
phases of the development. This would result in an initial payment of about $2,700,000 when the
first permit is issued, which is tentatively planned for December 2016. The remaining $7,000,000
7513-1
First Amendment to Development Agreement No. 2015-03 — Heritage Village Mixed -Use
Development at 2001 East Dyer Road
December 20, 2016
Page 2
in in -lieu fees will be paid as permits are issued for each subsequent phase of development.
Table 1, below, provides a breakdown of the inclusionary housing fees and the approximate date
of payment of the fees.
Table 1
Inclusionary Housing Fees for Heritage Village
Project Phase
Estimated Fee
Estimated Payment Date
Phase 1
$2,700,000
January 2017
Phase 2
$3,250,000
Summer 2017
Phase 3
$3,700,000
Winter 2017
Total
$9,650,000
N/A
After receiving public testimony and deliberating the merits of the applicant's request, the
Planning Commission stated their desire that the applicant comply with the terms of the Housing
Opportunity Ordinance.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability,
Engagement and Sustainability, Objective #3 (facilitate diverse housing opportunities and support
efforts to preserve and improve livability in Santa Ana neighborhoods).
FISCAL IMPACT
There is no fiscal impact associated with this action.
Hassan HagAni, AICP
Executive Director
Planning and Building Agency
VF:rb
vAreporta\The Heritage\Amend DA15-03.m
Exhibit: A. Planning Commission Staff Report
75B-2
EXHIBIT
ORDINANCE
75B-3
LS 11/14/16
ORDINANCE NO. NS -XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA APPROVING AN AMENDMENT TO THE
DEVELOPMENT AGREEMENT BETWEEN THE CITY OF
SANTA ANA AND HERITAGE VILLAGE LLC, A
CALIFORNIA LIMITED LIABILITY COMPANY
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:
A. 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.
B. The City enters into this Amendment to the Development Agreement
pursuant to the provisions of the Government Code and applicable City policies.
C. This Amendment to the Development Agreement came before the
Planning Commission for a duly noticed public hearing on November 14, 2016. The
Planning Commission, on a vote of 5:1, with one abstention, made a motion to
recommend denial of the Amendment to the Development Agreement.
D. Entering into this First Amendment to the Development Agreement would
provide the City with significant benefits that are of regional significance, relate to
existing deficiencies in public facilities, and require the owner of the Heritage Village to
contribute toward public benefits.
E. The City Council has held a noticed public hearing on this Ordinance and
has considered all testimony presented thereto.
F. The previously adopted and certified Final Environmental Impact Report
EIR for the property, EIR No. 2015-01, including the Mitigation Monitoring Program,
Findings of Fact and Statement of Overriding Considerations, have been previously
approved and certified by this Council.
G. The proposed project will not adversely affect the General Plan, as is
expressly set forth in the Request for Council Action dated December 20, 2016,
Ordinance No. NS -XXX
Page 1 of 3
75B-4
together with all supporting documents, including but not limited to, proposed
resolutions, which are incorporated herein by this reference.
Section 2. The First Amendment to the Development Agreement, a true and
correct copy of which is attached hereto as Exhibit 1, is hereby approved, and the City
Manager and Clerk of the Council are authorized to execute it on behalf of the City with
such non -substantive changes as may be authorized by the City Manager and City
Attorney. The Clerk of the Council is hereby authorized and directed to cause this
Development Agreement to be recorded with the County Recorder's Office.
Section 3. 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 day of .12016.
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
0
Lisa Storck
Assistant City Attorney
Miguel A. Pulido
Mayor
75B-5
Ordinance No. NS -XXX
Page 2 of 3
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the
attached Ordinance No. NS -XXX to be the original ordinance adopted by the City
Council of the City of Santa Ana on , 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
75B-6
Ordinance No. NS -XXX
Page 3 of 3
EXHIBIT
AMENDMENT TO
DEVELOPMENT AGREEMENT
75B-7
EXEMPT FROM RECORDER'S FEES
Pursuant to Goverment Cade §§6103 and 27383
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Clerk of the Council
City of Santa Ana
26 Civic Ceiiter Plaza M-30
P.O. Box 19$$
Santa Ana, Catifornia 92702
(Space Above For Recorder's Use)
AMENDMENT NO. 1 TO
DEVELOPMENT AGREEMENT
by and between.
THE CITY OF SANTA ANA
and
HERITAGE VILLAGE OC, LLC
A DELAWARE LIMITED LIABILITi' COMPANY
Dated. 2016
II
1121867,0110C 7 l—�
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AMENDNIENT NO. I TO DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF SANTA ANA. AND
HERITAGE VILLAGE OC, LLC,
a Delaware Iftnited liability company
This Amendment No. I to the DEVELOPMENT AGREEMENT is entered into between
'THE CITY OF SANTA ANA, a charter city and municipal corporation duly authorized under
the Constitution and laws of the State of California ("City") and Heritage Village OC, LLC, a
Delaware 1atnited, liability company ("Owner"), The City and Owner are referred to jointly in
this Development Agreement as the "Parties" and individually as a"Party."
1. RECITALS. This Amendment No. 1 to the Development Agreement is entered
into with reference to the following facts:
1.1. Develloo .anent Af=aeMtn . A Development Agreement by and between the
City of Santa Ana, and Heritage Village OC, LLC (the "Development Agreement"), was
approved by the City Council ora February 2, 2016 and was recorded oil June 28, 2016 as
Instrument No. 2016000293512 in the Official Records, Orange County, The Development
Agreement establishes vested development rights for the Heritage Village Project (the "Project")
an an 18.84 acre parcel located at the northwesterly corner of East Dyer Load and Redhill
Avenue in the City.
1.2. Amendment to Develo i�r Hent A€,reernent. Section 4.3 of the Development
Agreement provides that the Development Agreement may be amended from time to time by the
mutual consent of the parties provided it is done in a manner consistent with California
Government Code Section 65868. Government Code Section 65868 requires that an amendment
to a development raga eenrent be subject to a public hearing held by both the Planning
Commission and the City Council pursuant to appropriate notice and that the amendment be
approved by ordinance and be consistent with the general plan and any applicable specific Klan.
1.3. Phasing of In Lieu Fees. Pursuant to Section 5.8 of the Development
Agreement, the Project will be developed in three phases as more fully described in the
Development Agreement. Pursuant to Section 5.9 of the Development Agreement the Owner is
obligated to pay fire City an in lieu fee orf $9.35 per square foot of habitable space in order to
fulfill its inclusionary housing requirement. Section 5.9 does not indicate when the in lieu fees
are to be paid.. Section 41.1904(c)(3) of the City Zoning Code addresses the payment of such
fees and states that: "The developer shall pay any in lieu fees allowed by this section in full
before issuance of the first building permit for any portion of the residential project, including
any non-residential portions of a mixed use development." Both the Owner and the City have
determined that it is in the best interest of both parties to allow for a phased payment of the in
lieu fees pursuant to the terms of this Amendment No. I to the Development Agreement.
I iziseznc'ac 7513'9
377,442-0G Wi -7-1Olwrdllld
1.4. Remainder of Development Areent., A1.1 of the provisions of the
Development Agreement, other than the amended language in Section "'below, shall remain the
same.
1.5. Interest of Owner. Owner represents that it has approved this Amendment
No. 1 to the Development Agreement and is authorized to enter into this Amendment No. 1 to
the Development Agreement.
1.6. Public Hearings. This Amendment No. 1 to the Development Agreement
was the subject of the following public hearings:
(a.) Plan�it?g Connnission. On November 14, 2016, the Planning
Commission, after giving notice pursuant to Government Code Sections 65090 and
65091, hold a public hearing to consider the Owner's application for this amendment to
Development Agreement and the environmental documentation evaluating the potential
impacts of the proposed project.
(b) City Cogncil. On 2016 the City Council, after
providing notice as required by law, held a public hearing to consider Owner's
Application for this Development Agreement and the proposed project,
(c) Enyironmental Anal. Before approving this Atnendnncnt No. 1
to the Agreement, the Planning Commission and the City Council reviewed the proposed
action and concluded no further environmental review is required pursuant to California
Resources Code Section 21166 and, CEQA Guidelines section 15162.
I.?. City Council FLnd n s. The f:ity Council finds that this Amendment No. I
to the Dcveloprnent Agreement :is consistent with [lie General Plast, as amended by General Plan
Amendment No. 2015-03, applicable specific plan(s), applicable zordng regulations, and all
other applicable ordinances, plans, policies and regulations of the City.
1.$: "CityOrdinamce. On 12016, the City Council adopted.
Ordinance No. NS- approving this Amendment No, l to the Development Agroement.
That ordinance beconnes effective thirty (30) days after the date of adoption,
2, Revised Deveto ntm_ent Agreement. Section 5.9. Section 5.9 of the Development
Agreement is hereby amended to now read as follows:
"5.9 Inclusion,a y Hotiasing.
('a) Owner's project qualifies as a "pipeline project' ander the
Amended Housing Opportunity Ordinance (Article XVIII.I of
Chapter 41 of the Santa Ana Municipal Code) and shall pay the
City an in lieu fee of $9.35 per square foot of habitable space in
order to failfill the inohnsionary housing requirement, Owner may
express a pref:eren.ce for how these Nods maybe used, but the final
decision regarding use of the inclusionary housing funds lies solely
1121967.0 UOC 75_�-10
372942-0000511-7-161,wd1vrd
with the Executive Director of the Community Development
Agency,
(b) Owner's payment of the in lieu fees shall be paid in phases
consistent with the phases of development set forth in Section 6.8.
The Owner shall pay the applicable in lieu fee for each phase of
the project, based on the habitable space within drat phase of the
project, prior to the issuance of the first building permit for that
please of the project,"
IN 'WITNESS WHEREOF, this Amendment No, i to the Development Agreement has
been executed by the City of Santa. Ana and by the Owner.
Dated this day of , 2016
ATTEST:
Maria Huizar, Clerk of the Council
APPROVED AS TO FORM:
SONIA CARVALHO
City Attorney
Lisa Stoa-els, Assistwt City Attorney
Name:
Tifle:
RECOMMEND APPROVAL:
CITY OF SANTA ANA.
David Cavazos, City Manager
KERITAGE VILLAGE OC, LLC
a Delaware hinited liability company
It 1967,01 SOC 75P-1 1
377442-0005'1147 16+wrf14uM
Hassan Haghaai,, Executive Director
Planning & Building Agency
1111967.01;DC` 75P-1 2
1729,12-000M 11-7-16. wrd;wrd l
EXHIBIT
PLANNING COMMISSION
STAFF REPORT
75B-13
REQUEST FOR
Planning Commission Action
PLANNING COMMISSION MEETING DATE;
NOVEMBER 14, 2016
TITLE:
PUBLIC HEARING — FILED BY PAM SAPETTO
FOR THE FIRST AMENDMENT TO DEVELOPMENT
AGREEMENT NO, 2015-03 FOR THE HERITAGE
VILLAGE MIXED-USE DEVELOPMENT AT 2001
EAST DYER ROAD {STRATEGIC PLAN NO. 3,2)
Prepared by Vince Fregoso __._
Executive Direotor
PLANNING COMMISSION SECRETARY
APPROVED
❑
As Recommended
❑
As Amended
•
Set Public Hearing For
DENIED
❑
Applicant's Request
❑
Staff Recommendation
CONTINUED TO
Planning Manager
RECOMMENDED ACTION
Recommend that the Planning Commission recommend that the City Council approve the First
Amendment to Development Agreement No. 2015-03.
Reauest of Applicant
Pam Sapetto, on behalf of Heritage Village OC LLC, is requesting approval of the first amendment to
the development agreement for the Heritage Village mixed-use development at 2001 East Dyer
Road. Specifically, the applicant is proposing to add language to the agreement to allow the payment
of the required inclusionary housing funds per each phase of development instead of a single lump
sum as required by the Housing Opportunity Ordinance.
Project Description
The Housing Element of the General Plan identifies the long range plans for housing throughout the
City. The Housing Opportunity Ordinance was established to implement one of the goals of the
Housing Element to promote the construction of affordable housing within the City. The applicant is
proposing to amend the approved and recorded development agreement and establish the timing of
the payment of the required inclusionary housing in -lieu fees for the development. Specifically, the
proposal would allow the payment of the in -lieu fees prior to issuing the first building permit for
each phase of development instead of payment of the total project in -lieu fee at the issuance of the
first building permit.
Project Background
On November 28, 2011, the City Council adopted the Housing Opportunity Ordinance (HOO). The
ordinance requires certain residential projects to provide 15 percent of the total number of units as
affordable, whether the project is for sale or rent. The ordinance applies to those developments
EXHIBIT A
75B-14
First Amendment to DA No. 2015-03
November 14, 2016
Page 2
requesting a zoning or general plan amendment modifying the designation in one of the following
ways; changing a non-residential use to a residential use (including City -initiated amendments),
increasing the residential density, enacting the residential provision of an overlay zone, or
converting apartments to condominiums.
In 2015, the HOO was updated to make the inclusionary housing requirements more predictable
for housing developers and to increase affordable housing production in conjunction with new
market -rate housing development. The changes included simplifying the in -lieu fee calculation,
modifying the "moderate Income" definition to be either "low income" or "very low income," and
creating incentives that allow developers the option of providing inclusionary housing either on or
off-site,
In July 2016, the applicant applied for a zoning ordinance amendment to amend the HOO to allow
the payment of the housing in -lieu fee in phases, which is identical to the current proposal.
However, the applicant decided to withdraw that application and is proposing to modify only the
approved development agreement, thus modifying the in -lieu payment timing for this project only.
Project Anal sis
In February 2016, the Heritage Village project received their entitlements for the development of
1,221 residential units and ancillary commercial services at 2001 East DYer Road. One of the
approved project entitlements was a development agreement, which included the ability to
construct the project as a three phase development. Per the HOO, the developer is required to
pay the in -lieu fee for the project "before issuance of the first building permit for any portion of the
residential development This requires the applicant to pay an in -lieu fee of approximately
$9,700,000 for all three phases at issuance of the first building permit, which is planned for
December. The project applicant is requesting approval to amend the development agreement
and allow the payment of the fee as permits are issued for each construction phase, which is in
keeping with customary development fee practices. Currently, all development projects pay fees
related to building permits, fire facilities mitigation, parks impacts and other development fees on a
per dwelling unit basis or per square foot of construction.
The requirement for payment of the total in -lieu fee at the time of first building permit was included in
the original 2011 Housing Opportunity Ordinance to encourage the development of affordable
housing on-site to promote a mix of affordable housing options in the development. The proposed
amendment would allow the project to pay in -lieu fees by construction phase consistent with other
development fees, while maintaining Incentives for future developers to construct new on-site or off-
site affordable housing versus defaulting to in -lieu payments to the City. Approval of this amendment
is a logical and business friendly approach to payment of in -lieu fees, reduces uncertainty for
developers who contribute to the City's in -lieu funds, and would allow the applicant to pay an initial
fee of approximately $2,735,000 for the first phase, as opposed to $9,700,000 that is currently
required for the project.
75B-15
First Amendment to DA No. 2015-03
November 14, 2016
Page 3
Public Outreach and Notification
The project site is not located within the boundaries of an established neighborhood association.
Staff has notified all interested parties by mail a minimum of 10 days prior to the public hearing.
The project site itself was posted with a notice advertising this public hearing, a notice was
published in the Orange County Reporter and mailed notices were sent to all property owners and
occupants within 500 feet of the project site. At the time of this printing, no correspondence, either
written or electronic, had been received from any members of the public.
In addition, all parties that participated in the various meeting related to amending the Housing
Opportunity Ordinance were notified of this meeting, including those in attendance at the July 2016
Advisory Committee meeting, the July 2016 Planning Commission public hearing to amend the
HOO, and those attending the October 2016 Development and Transportation City Council
Subcommittee meeting. More specifically, staff held phone discussions with those individuals that
attended any of the meetings identified above.
CEQA Analysis
In accordance with the California Environmental Quality Act, the proposed project is exempt from
further review pursuant to Section 15061(b)(3) as there is no potential for causing a significant impact
on the environment due to the adoption of the development agreement modification related to the
collection of fees. Categorical Exemption Environmental Review No. 2016-76 will be filed for this
project.
Strategic Plan Alignment
Approval of this item supports the City's efforts to meet Goal No. 5 Community Health, Livability,
Engagement and Sustainability, Objective No. 3 (facilitate diverse housing opportunities and
support efforts to preserve and improve livability in Santa Ana neighborhoods).
Conclusion
Based on the analysis provided within this report, staff recommends that the Planning Commission
recommend that the City Council adopt an ordinance approving the First Amendment to
Development Agreement No, 2015-03.
Vince Fregoso, AICo
Principal Planner
VF:jm
vAreportWhe HerilagalAmend DA15-011114Mpc
75B-16
First Amendment to DA No. 2015-03
November 14, 2016
Page 4
Attachments:
Exhibit 1 — First Amendment to Development Agreement
Exhibit 2 - Development Agreement No. 2015-03
75B-17
EXEMPT FROM RECORDER'S FEES
Pursuant to Government Code §§6103 and 27383
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Clerk of the Council
City of Santa Ana
20 Civic Center Plaza M-30
P,O. Box 1988
Santa Ana, California 92702
(Space Above For Recorder's Use)
AMENDMENT NO. 1 TO
DEVELOPMENT AGREEMENT
by and between
THE CITY OF SANTA ANA
and
HERITAGE VILLAGE OC, LLC
A DELAWARE LIMITED LIABILITY COMPANY
Dated: 201.6
EXHIBIT 1
uzis67.01W
372942-00005/II-7-[Wwrd/11mU
75B-18
AMENDMENT NO. 1 TO DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF SANTA ANA AND
HERITAGE VILLAGE OC, LLC,
a Delaware Iinuted liability company
This A tendinent No, l to the DEVELOPMENT AGREEMENT is entered into between.
THE CITY OF SANTA ANA, a charter city and municipal corporation duly authorized under
the Constitution and laws of the State of California. ("City") and Heritage Village OC, LLC, a
Delaware limited liability company ("Owner"). The City and Owner are referred to jointly in
this Development Agreernent as the "Patties" and individually as a "Party,"
1, RECITALS. This Amendment No. I to the Development Agreement is entered
into with reference to the following facts:
1.1. Development Agreement, A Development Agreement by and between the
City of Santa Ana and Heritage Village OC, LLC (the "Development Agreement"), was
approved by the City Council. on February 2, 2016 and was recorded on Tune 28,-2016 as
Instrument No. 201600029351.2 in the Official Records, Orange County. The Development
Agreement establishes vested development rights for the Heritage Village Project (the "Project")
on an 18,84 acre parcel located at the northwesterly comer of East Dyer Road and Redhill
Avenue in the City,
1.2. Amendment to Developmmn Ayreement, Section 4.3 of the Development
Agreement provides that the Development Agreement may be amended from time to time by the
mutual consent of the parties provided it is done in a manner consistent with California
Government Code Section 65868. Government Code Section 65868 requires that an amendment
to a development agreement be subject to a public hearing held byboth the Planning
Commission and the, City Council Pursuant to appropriate notice and that the amendment be
approved by ordinance and be consistent with the general plan and any applicable specific plait
1,1 Phasing of In Lieu Fees. Pursuant to Section 5.8 of the Development
Agreement, the Project will be developed in three phases as more fully described in the
Development Agreement. Pursuant to Section 5.9 of the Development Agreement the Owner is
obligated to pay the City an in lieu fee of $9.35 per square foot of habitable space in order to
fulfill its inclusionary housing requirement. Section 5.9 does not indicate when the in lieu fees
are to be paid. Section 41,1904(c)(3) of the City Zoning Code addresses the payment of such
fees and states that: "The developer shall pay any in lieu fees allowed by this section in full
before issuance of the First building permit for any portion of the residential project, including
any non-residential portions of a mixed use development." Both the Owner and the City have
detennitied that it is in the best interest of both parties to allow for a phased payment of the in
lieu fees pursuant to the terms of this Amendment No. '1 to the Development Agreement,
I IZ1867,011OC _
372947-00065iI1-7-161wrc1l111d
75B-19
L4. Remainder of Development Agreement. All of the provisions of the
Development Agreement, other than the amended language in Section 2 below, shall remain the
same.
1.5. Literest of Owner. Owner represents that it has approved this Amendment
No. I to the Development Agreement and is authorized to enter into this Amendment No. I to
the Development Agreement,
1.6, Public Hearings. This Amendment No. 1, to the Development Agreement
was the subject of the following public hearings:
(a) Plamdng Cormnission. On November 14, 2016, the 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 to
Development Agreement and the environmental documentation evaluating the potential
impacts of the proposed project.
(b) City Council. On 2016 the City Council, after
providing notice as required by law, held a public hearing to consider Owner's
Application for this Development Agreement and the proposed project.
(c) Environmental Analysis. Before approving this Amendment No. I
to the Agreement, the Planning Conunission and the City Council reviewed the proposed
action and concluded no further environmental review is required pursuant to California
Resources Code Section 211.66 and. CEQA Guidelines section 15162.
1.7, Citv Council Findings. The City Council finds that this Amendment No. I
to the Development Agreement is consistent with the General Plan, as amended by General Plan
Amendment No. 2015-03, applicable specific plan(s), applicable zoning regulations, and all
other applicable ordinances, plans, policies and regulations of the City.
1.8. City_Ordinance. On , 2016, the City Council adopted
Ordinance No. NS- approving this Amendment No. 1 to the Development Agreement.
That ordinance becomes effective thirty (30) days after the date of adoption.
2. Revised Development Agreement Section 5.9. Section 5.9 of the Development
Agreement is hereby amended to now read as follows:
"5.9 Inclusionary Housing.
(a) Owner's project qualifies as a'pi,peline project' under the
Amended Housing Opportunity Ordinance (Article XVIILI of
Chapter 41 of the Santa Ana Municipal. Code) and shall pay the
City an in lieu fee of $9.35 per square foot of habitable space in
order to fulfill the inclusionary housing requirement. Owner may
express a preference for how these funds may be used, but the final
decision regarding use of the inclusionary housing fiords ties solely
1121667.01 /UC
3 72942-00005/ 11-7-161w,&wrd 756--20
with the Executive Director of the Community Development
Agency.
(b) Owner's payment of the in lieu fees shall be paid in phases
consistent with the phases of development set forth in Section 5:8.
The Owner shall pay the applicable in hell fee for each phase of
theproject, based on the habitable space within that phase of the
project, prior to the issuance of the first building pennit for that
phase of the project."
IN WITNESS WHEREOF, this Amendment No. i to the Development Agreement has
been executed by the City of Santa Arra and by the Owner.
Dated this day of 2016
ATTEST:
Maria Huizar, Cled< of the Council
APPROVED AS TO FORM:
SONIA CARVALI-10
City Attorney
Lisa Starck, Assistant City Attorney
By:
Name:
Title:
RECOMMEND APPROVAL:
CITY OF SANTA ANA
David Cavazos, City Manager
HERITAGE VILLAGE OC; .LLC
a Delaware limited liability company
1121967.011OC
3 72 947 00005'111-7 16/w,d/wrd '4'
75B-21
Hassan Haghani, Executive Director
Planning & Building Agency
1121867.0110C
372947-OHOOM 1-7-16/w,&,vM -5-
75B-22
EXEMPT FROM RECORDER'S FEES
Pursue ttoGoverrLmentCoda.'v 6110awt2'1x
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Clerk of the Council
City of Sante Ana
20 Civic Center Plaza M-30
P:O, Box 1988
Santa Ana, California 92702
A-2016-173
`)01�_,
"aiC"'a )fjarad ywth�tCri rra 1
A•2016-173
Recorded in Official Records, orange county
Hugh Nguyen, Clerk -Recorder
IIIIG11II]IJjj�jj1111111111J111 INO FEE
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2016000293512 2:04 pm 06128/16
37 416Al2 .31
0.00 4.00 0.00 0.00 90.00 0,00 0.00 4.40
DEVELOPMENT AGREEMENT
by and between
THE CITY OF SANTA ANA
and
HERITAGE VILLAGE OC, LLC,
A DELAWARE LIMITED LIABILITY COMPANY
Datedi FEBRUARY 2, 2016
EXHIBIT 2
75B-23
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF SANTA ANA AND
HERITAGE VILLAGE OC, LLC,
a Delaware limited liability company
This DEVELOPMENT AGREEMENT is entered into between THE CITY OF SANTA
ANA, a charter city and municipal corporation duly authorized under the Constitution
and laws of the State of California ("City") and Heritage Village OC, LLC, a Delaware
limited liability company ("Owner"). The City and Owner are referred to jointly within this
Development Agreement as the "Parties" and individually as a "Party,"
1. RECITALS. The Development Agreement is entered into with reference to the
following facts:
1.1 The Property. The real property which is the subject of this Development
Agreement is Located at 2001 East Dyer Road in Santa Ana, California
("Property"). The Property is more particularly described in Exhibits A and
B to this development Agreement.
The Property is an 18.84 acre parcel that is located at the northwesterly
corner of East Dyer Road and Red Hill Avenue. The property contains a
single building approximately 355,000 square feet in size that was
constructed in '1972. The building is currently occupied by a variety of
uses, including a data center that is occupying approximately 10,000
square feet, and various temporary uses utilizing a small portion of the
existing warehouse space, Approximately 430 parking spaces are
currently on-site. Regional access to the project site is generally provided
via State Route 55 at the Dyer Road exit. Access to the project site is
provided by Red Hill Avenue and Dyer Road, the latter of which becomes
Barranca Parkway in the City of Irvine The project site is located within
the City of Santa Ana limits; however it is adjacent to the Cities of Irvine
and Tustin. Areas across from Red Hill Avenue (to the east) are within the
City of Tustin and are part of the former Tustin Marine Corps Air Station,
now known as the Tustin Legacy. Areas across from Dyer Road (to the
south) are in the City of Irvine within the Irvine Business Complex.
1.2 Purpose of this Development Agreement.
(a) The purpose of this Development Agreement is to facilitate the
development of the Property.
(b) Owner's proposed project would redevelop the project site to
provide three mixed used buildings that would provide 1,221 multi-
family apartments, 12,675 square feet of retail commercial space
and 5,415 square feet of restaurant space. The existing 355,000
square foot office/warehouse building would be reduced in size by
removing the warehouse portion of the structure to provide a two -
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story 56,000 square foot office building and a 102 space surface
parking lot. The exterior of the office building would be renovated
to be consistent with the proposed architectural design of the new
mixed-use buildings, The existing office portion of the structure
provides 36,000 square feet of employee generating space and
20,000 square feet of data center use that contains only computer
equipment.
(c) The residential units would range in size from 512 square foot
studios to 1,290 square foot one -bedroom and two-bedroom units.
Three parking structures would also be developed, one structure for
each mixed-use building. The proposed project includes both
public and private (fpr residents) open space and recreational
facilities on the project site. A 1.01 acre public central park,
including various amenities, would be developed and would
connect to open space areas along the northern and eastern
boundaries. In addition, approximately 327,302 square feet of
private open space, as well as private recreation amenities would
be provided for residents.
1,3 Cade Authorization. City is authorized pursuant to Government Code
Sections 65864 through 65569.5 to enter into Development Agreements
with persons having legal or equitable interests in real property for the
purpose of establishing development certainty for both the City and Owner
in the development process. City enters into this Development Agreement
pursuant to the provisions of the Government Code and applicable City
policies. The Parties acknowledge:
(a) This Development Agreement is intended to assure adequate
public facilities at the time of development.
(b) This Development Agreement is intended to assure development in
accordance with City's General Plan, and any applicable Specific
Plans.
(c) This Development Agreement will permit achievement of goals and
objectives as reflected in the City's General Plan, and any and all
applicable Specific Plans.
(d) Owner is required by existing City regulations to provide mitigation
for certain identified impacts and pay certain regulatory fees as
conditions of approvals through the regulatory process.
(e) This Development Agreement 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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(f) Many of the extraordinary and significant benefits identified as
consideration to City for entering into this Development Agreement
are of regional significance, relate to existing deficiencies in public
facilities, require Owner 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.
1.4 Ownership. Owner represents and warrants that it has a legal or
equitable interest in the Property.
1.5 Interest of Owner. Owner represents that it has approved this
Development Agreement and is authorized to enter into this Development
Agreement.
1,6 Public Hearings, The Development Agreement was the subject of the
following public hearings:
(a) Planning Commission, On October 12, 2015, the 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 Development Agreement and the
environmental documentation evaluating the potential impacts of
the proposed project.
(b) City Council, On February 2, 2016, the City Council, after
providing notice as required by law, held a public hearing to
consider Owner's application for this Development Agreement and
the proposed project.
(c) Environmental Analysis. Before approving this Development
Agreement, the Planning Commission and the City Council
reviewed the Environmental Impact Report, and the City Council
certified Final Environmental Impact Report No, 2015-01.
1.7 City Council Findings, The City Council finds that this Development
Agreement is consistent with the General Plan, as amended by General
Plan Amendment No. 2015-03, applicable specific plan(s), applicable
zoning regulations, and all other applicable ordinances, plans, policies and
regulations of the City.
1.8 City Ordinance. On February 2, 2016, the City Council adopted
Ordinance No. NS -2892 approving this Development Agreement. That
ordinance becomes effective thirty (30) days after the date of adoption.
2. DEFINITIONS. In this Development Agreement, unless the context otherwise
requires:
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2.1 "Applicable Rules" means all rules, regulations, ordinances and official
plans and policies of the City in force as of the Effective Date, as included
within the Santa Ana Municipal Code ("SAMC"), Specific Development
Plan No. 88 as adopted by Amendment Application No. 2014-04, this
Development Agreement and the Entitlements, asdefined below.
2.2 "Effective Date" means March 17, 20,16, the date upon which the
ordinance approving the Development Agreement becomes effective.
2.3 "Entitlements" means this Development Agreement No. 2015-03, Final
Environmental Impact Report No, 20,15-01, General Plan Amendment No,
2015-03., Vesting Tentative Tract Map No, 2015-03, Amendment
Application No, 2014-04, and any changes to these to which Owner has
consented in writing.
2.4 "Owner" means Heritage Village OC, LLC, a Delaware limited liability
company.
2..6 "Project" is the development on the Property of a 1,221 -unit multiple
family residential apartment development, 12,675 square feet of retail
commercial space, and 5,415 square feet of restaurant space, as
generally set forth in the Entitlements.
2.5 "Property„ means the real property described in Exhibit A and referred to
in Exhibit B.
2.7 "Public Art" is defined in Section 5.1.7.
2.8 "Public Art Fee" is defined in Section 5.1,7.
2.9 "Public Art Plan" Is set forth in Exhibit C to this Development Agreement
2.10 "Reserved Powers' means the rights and authority excepted from this
Development Agreement's restrictions on the City's police powers and
which are instead reserved to the City. The Reserved Powers include the
power to enact and implement rules, regulations, ordinances and policies
after the Effective Date that are not in conflict with the Applicable Rules or
that may be in conflict with the Applicable Rules, but: (a) prevent or
remedy conditions which the City has found to be injurious or detrimental
to the public health and/or safety; (b) are Uniform Codes; (c) are required
to comply with mandates under state and federal laws, rules and
regulations (whether enacted previous or subsequent to the Effective
Date) or to comply with a court order or judgment of a state or federal
court; or (d) relate to increases in development impact fees occurring
after the Effective Date.
2.11 "Uniform Codes" means those building, electrical, mechanical, fire and
other similar regulations which are based on recommendations of a multi-
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state professional organization and become applicable throughout the
City, such as, but not limited to, the California Building Code, the
California Electrical Code, the California Mechanical Code, or the
California Fire Code (including those amendments to the promulgated
Uniform Codes which reflect local modification to implement the published
recommendations of the multi -skate organization and which are applicable
City-wide).
2.12 "Utility Release" means the formal approval of the City Building
Department, following its inspection, that residential unit(s) may be
released for initial connection to the electrical power system, water service
system, gas service system, and sanitary sewer system. Utility Release(s)
do not include temporary utility service provided to any structure during
construction.
3. EXHIBITS. The following documents referred to in this Development Agreement
are attached to this Development Agreement and are identified as follows:
Exhibit
Description
Referred to
Designation
�
in JeCt18Sr1
A
Property Legal Description
1.1, 2.6
B
Property Graphical Description
1.1
j C
Public Art Plan
2.9, 5.1.7
4. GENERAL PROVISIONS.
4.1 Term of Development Agreement ("Term")_ This Development
Agreement shall have a six (6) year term beginning on the Effective Date
of March 17, 2016, and ending on March 17, 2022, The Term shall be
automatically extended for an additional three (3) years if Phase 1 and
Phase 2 are deemed complete. In order to be deemed complete, all
permits must have been finalized, utilities should have been released and
a Certificate of Compliance must have been issued for Phase 1 and
Phase 2. If a building permit has not been issued for Phase 3 prior to the
end of the initial 6 year term of the Development Agreement, the
architectural, facade treatment and landscaping plans for Phase 3 shall be
subject to Staff level design review prior to issuance of the building permit
for Phase 3 to determine whether the exterior design needs any updating.
Should updates be required by the Executive Director, the Owner shall
prepare plans accordingly, which may be administratively approved by the
Director. The Executive Director shall also have the authority to approve
any necessary minor modifications to the project requested at the time of
the Term extension Any dispute pertaining to any extension shall be
75B-28
brought before the Planning Commission for review and City Council for
final determination.
4.2 Assignment. Owner shall have the right to transfer or assign the
Property, in whole or in pert, to any person, entity (public or private),
partnership, joint venture, 'firm or corporation at any time during the term of
this Development Agreement; provided, however, the rights of Owner
under this Development Agreement may not be transferred or assigned
unless the written consent of the City Council is first obtained, and any
transfer or assignment of the rights under this Development Agreement
shall include in writing the assumption of the duties, obligations, and
liabilities arising from this Development Agreement, if the City grants
written consent to transfer the rights, Nor shall the rights of the Owner
hereunder be subject to assignment by attachment, execution, or
proceedings under any provision of the Bankruptcy Act, and any such
assignment or transfer of the rights under this Development Agreement
shall be wholly void and of no force and effect unless such written consent
thereto be obtained from the City Council, A transfer or assignment of the
rights under this Development Agreement without the consent of the City
Council shall not relieve Owner of any accrued duty, obligation or liability
to City. No consent shall be required for sale of units to condominium unit
buyers.
During the term of this Development Agreement, any approved assignee
or transferee of the rights under this Development Agreement shall
observe and perform all of the duties and obligations of Owner contained
in this Development Agreement as such duties and obligations pertain to
Vie portion of the Property transferred or assigned. Any and all approved
successors and assigneas of Owner shall have all of the same rights,
benefits, duties, obligations, and liabilities of Owner under this
Development Agreement. If the Property is subdivided, any subdivided
parcel may be sold, mortgaged, hypothecated, assigned, or transferred
to persons for development by them in accordance with the provisions of
this Development Agreement. Upon assignment or transfer of the rights of
Owner under this Development Agreement, the obligations of Owner and
the transferee or assignee shall be joint and several. Should the Project
be developed as or later converted to condominiums, individual
condominium unit buyers shall not have any liability or obligation pursuant
to this Development Agreement.
4.2.1 Permitted Assignments. The prohibition against transfer
of ownership of the Property as defined in section 4.2
above, shall not apply to, and the City hereby consents to
the following:
a, Transfers to associations, including limited partnerships, limited
liability companies, or joint ventures with other entities for the
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purpose of performing the Owner's obligations under this
Agreement, provided Owner may be in common control with the
transferee or retains primary operational and managerial control
of the transferee so long as the Owner retains at least 51%
interest at all times.
b. Easements or temporary permits to facilitate the development of
the Property.
c. Deeds of trust or other financing documents executed for the
purpose of securing loans to Owner made to finance
development of the Property, and transfers to any person or
entity pursuant to a foreclosure or deed in lieu of foreclosure of
such deed of trust or other, similar financing documents and any
subsequent transfer by any such person or entity.
4.3 Amendment or Cancellation of Development Agreement, This
Development Agreement may be amended from time to time or cancelled
by the mutual consent of the Parties, but only in the manner required by
Government Code Section 65865.
4.4 Enforcement, Notwithstanding Government Code Section 65865A, this
Development Agreement is enforceable by either Party in any manner
provided by law. The remedies provided in Section 7.4 shall not include,
and City shall not be liable for, any action in damages or any costs or
attorney's fees resulting from any dispute, controversy, action or inaction,
or any legal proceeding arising out of this Development Agreement.
4.8 Indemnification by Owner. Owner agrees to and shall indemnify, defend
(through its own counsel) and hold City, its officers, agents, employees,
consultants, and representatives harmless from liability for damages,
attorney's fees, restitution, judicial or (to the extent legally possible)
equitable relief arising out of claims for personal injury, including death,
and claims for property damage, which may arise from construction
activities with respect to the Project by the Owner or their contractors,
subcontractors, agents, employees, or other persons acting on their
behalf. Owner further agrees to indemnify, defend (through its own
counsel) and hold City, its officers, agents, employees, consultants, and
representatives harmless from any Litigation, as hereinafter defined. For
purposes of this paragraph, "Litigation" shall mean any lawsuit, action or
cross -action, challenging the validity of this transaction, the Project as
defined in Section 2.5, or any portion thereof or the rights of either party
hereunder and/or the rights of either party to engage in the acts and
transactions contemplated by this Development Agreement.
Notwithstanding any other provision of this Development Agreement, this
indemnity and duty to defend shall be lim ted as follows
75B-30
(a) In the event of any Litigation the parties agree to affirmatively
cooperate in defending said action.
(b) Owner shall have approval of any settlement if, (i) it will affect
Owner's project; or (ii) Owner will be required to pay (or reimburse)
any amounts (regardless of type) in connection with the settlement
(including attorney's fees and costs).
(i) if City determines to settle over Owner's objections, then
Owner may upon thirty (30) days written notice terminate
defense of the action.
(u) 1f City rejects a settlement offer that Owner deems reasonable,
then Owner may upon thirty (30) clays written notice terminate
defense of the action.
(c) Owner shall be allowed to terminate its defense if it determines to
abandon defense of its project application; provided, however, that
in such circumstance Owner shall be solely liable for award, if any,
of costs or attorney's fees to plaintiff/petitioner inourred prior to the
effective date of termination.
4.6 Sinding Effect of Development Agreement. To the extent not otherwise
provided in Section 4.2 of this Development Agreement, the burdens of
this Development Agreement bind, and the benefits of the Development
Agreement inure, to the parties' successors in interest, transferees and
assigns.
4.7 Relationship of the Parties. The contractual relationship between City
and Owner arising out of this Develapment Agreement is one of
independent contractor and not agency, This Development Agreement
does not create any third party beneficiary rights.
4.9 Notices. Any notice, tender, demand, delivery, or other communication
pursuant to this Development Agreement shall be in writing and shall be
deemed to be properly given if delivered in person or mailed by first class
or certified mail, postage prepaid, or sent by telefacsimile or other
telegraphic communication in the manner provided in this Section, to the
fallowing persons:
If to City, to:
City Manager
City of Santa Ana
20 Civic Center Plaza M-31
P.O. Sox 1988
Santa Ane, California 92702
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and
City Attorney, City of Santa Ana
20 Civic Center Plaza M-29
P.O. Box 1988
Santa Ana, California 92702
If to Owner, to:
Heritage Village OC
1945 Port Chelsea Place
Newport Beach, CA 92669
Attention: General Counsel
and
Allen Matkins
1900 Main Street, 51h f=loor
Irvine, 'CA 92614
Attention; William R. Devine
A Party may change its address by giving notice in writing to the other
party. Thereafter, any notice, tender, demand, delivery, or other
communication shall be addressed and transmitted to the new address. If
sent by mail, any notice, tender, demand, delivery, or other
communication shall be effective or deemed to have been given three (3)
days after it has been deposited in the United States mail, duly registered
or certified, with postage prepaid, and addressed as set forth above, If
sent by telefacsimile, any notice, tender, demand, delivery, or other
communication shall be effective or deemed to have been given twenty-
four (24) hours after the time set forth on the transmission report issued by
the transmitting telefacsimile, machine, addressed as set forth above. For
purposes of calculating these time frames, weekends, federal, state,
County, or city holidays shall be excluded
51 DEVELOPMENT OF THE PROPERTY.
5A City Obligations. In consideration for Owner entering into this
Development Agreement and performing its obligations hereunder, and in
order to effectuate the purposes and intentions set forth in this
Development Agreement and the Development Agreement Act, the City
hereby agrees during the Term as follows.
SAA Vested Right to Develop. Owner is hereby granted the
vested right to develop the Project subject to the terms and
75B-32
conditions of the Applicable Rules and the Reserved
Powers.
5,1,2 Non -Application of Changes in Applicable Rules. Any
change in or addition to, the Applicable Rules, including,
without limitation, any change in the General Plan, zoning
ordinance, subdivision ordinance, or building regulation
adopted or becoming effective after the Effective Date,
including, without limitation, any such change by means of
ordinance, initiative, referendum, resolution, motion, policy,
order or moratorium, initiated or instituted for any reason
whatsoever, however denominated, and adopted by the
City Council, Planning Commission or any City Agency, or
by the electorate, as the case may be, which would, absent
this Development Agreement, otherwise be applicable to
the Project and which would conflict with the Applicable
Rules, shall not be applied to the Project unless such
changes represent an exercise of the City's Reserved
Powers or are otherwise expressly allowed by this
Development Agreement. In the event that state or federal
laws or regulations enacted after this Development
Agreement has been entered into, prevent or preclude
compliance with one or more provisions of this
Development Agreement, such provisions of this
Development Agreement shall be modified or suspended as
may be necessary to comply with such state or federal
laws or regulations.
5.1.3 Agreed Changes and Other Reserved Powers. This
Development Agreement shall not preclude application to
theProject of rules, regulations, ordinances and officially
adopted plans and policies in conflict with the Applicable
Rules where such additional rules, regulations, ordinances
and officially adopted plans and policies: (a) are mutually
agreed to in writing by Owner and the City, or (b) result from
the Reserved Powers.
5A.1 Subsequent Development Approvals, The City shall
require Owner to obtain only those Subsequent
Development Approvals that are required by the Applicable
Rules or the Reserved Powers. City agrees that it shall
condition any Subsequent Development Approvals based
only on the Applicable Rules and/or Reserved Powers.
5,1,5 Moratoria. In the event an ordinance, resolution or other
measure is enacted, whether by action of the City, by
initiative, or otherwise, which relates to the rate, amount,
75B*33
timing, sequencing, or phasing of the development or
construction of the Project on all or any part of the Property,
City agrees that, unless required by applicable state or
federal law, such ordinance, resolution or other measure
shall not apply to the Project, Property or this Development
Agreement, unless such changes are adopted pursuant to
the City's exercise of its Reserved Powers or other
applicable provision of this Development Agreement.
5,1.6 Timing of Development. The parties acknowledge that
Owner cannot at this time predict when or if the Property will
be developed. Such decisions depend upon numerous
factors which are not within the control of Owner, such as
market orientation and demand, interest rates, absorption,
completion and other similar factors. Because the California
Supreme Court held in Pardee Conskruction Co. v. Citv of
Camarillo (1984) 37 Cal. 3d 465 that the failure of the
parties therein to provide for the timing of development
resulted in a lateradopted initiative restricting the timing of
development to prevail over such parties' agreement, it is
the parties' intent to cure that deficiency by acknowledging
and providing that, except as provided in and subject to
Section 5.8, Owner shall have the right to develop the
Property at such rate and at such time as Owner deems
appropriate within the exercise of its subjective business
judgment.
5.1,7 Development, Construction, and Completion of Public
Art. Owner shall include within the Project a single or
grouped permanent work of public art consistent with the
Public Art Plan (collectively, "Public Art'); attached herewith
and incorporated herein as Exhibit C, at a cost of not less
than one half of 1% of the total construction costs which is
approximately One Million Three Hundred Twelve
Thousand Dollars ($1,312;000) (the "Public Art Fee"). The
actual amount of the Public Art Fee shall be determined at
building plan check submittal.
5,2 Exclusion from Existing Rules, Regulations and Policies.
(a) Pursuant to Government Code Section 65866 and Pardee
Construction Co. v City of Camarillo (1984) 37 Cal.3d 465, City
retains the right to enact police power regulations on matters not
covered by Section 5.1 of this Development Agreement, including
without limitation'
75B -r34
(i) Municipal caws and regulations which do not Interfere with
Owner's vested rights todevelop and use the Property in
accordance with Section 5.1 of this Development Agreement.
Owner andits successors and assigns and all persons and
entities in occupation or any portion of the Property shall
comply with such non -conflicting laws and regulations as may
from time to time be enacted or amended hereafter.
Specifically, but without limitation on the foregoing, such non -
conflicting laws and regulations include the following:
= Taxes, assessments, fees and charges, except as other,+iise
specifically provided in this Development Agreement;
• Building, electrical, mechanical, fire and similar codes based
upon uniform codes incorporated by reference into the Santa
Ana Municipal Code;
= Laws, including zoning code provisions, which regulate the
manner in which business activities may be conducted or
which prohibit any particular type of business activity on a
city-wide basis; and
• Procedural rules of general City-wide application.
5.3 Construction Standards and Specifications. The construction
standards (e.g., the Uniform Codes) and specifications for all Project
construction shall be subject to applicable construction standards and
guidelines in effect at the time that any development approval shall be
sought for the Project or any unit or structure contained within the Project.
5,4 FAA and ALUC Approval; Owner shall obtain and maintain, during
the term of this Development Agreement, any and all necessary
approvals from the Federal Aviation Administration (FAA) and the
Airport Land Use Commission (ALUC) for the Project.
Should such approvals lapse and not be reinstated or reapproved prior
to the issuance of the first building permit, the City shall have the right
to terminate this development Agreement.
5,4.1 Avigation Easement, The Owner shall, prior to issuance of the first
building permit for the Project, execute an avigation easement in a form
approved by the City Attorney, which shall be recorded with the 'Orange
County Recorder's Office. The avigation easement shall prohibit any and
all claims, actions or lawsuits of any kind or type for nuisance or
interference with use and enjoyment of the underlying Property or the
Project, including but not limited to noise, sound, vibration, fumes, fuel
particles, dust, discomfort or other environmental effects incident to
aircraft operations as well as any inconvenience or annoyances caused by
75B{35
the operations of the Jol-n Wayne Airport (SNA) The avigation easement
shall grant the right to enter or penetrate into or transmit through the
airspace above, on or it the vicinity of the Property for the unobstructed
use, passage or operation of all types of aircraft and the right to create or
generate all things and consequences to the Property that may be, or may
be alleged to be, incident to or resulting from the use of said airspace and
any and all related aircraft and airport operation The City shall be the
benefited party in the avigation easement, but said easement shall be
assignable by the City to a third party, including but not limited to John
Wayne Airport (SNA), without consent of Owner.
5.6 Processing Fees. All fees and charges intended to cover City costs
associated with processing development of the Property, including, but not
limited to, fees and charges for applications, processing, inspections, plan
review, plan processing, and/or environmental review, which are existing
or may be revised or adopted during the term of this Development
Agreement, shall apply to the development of the Property.
5.6 Amendments or Additions to Citywide Fee Programs, This
Development Agreement shall not preclude the inclusion of and changes
to fee programs, taxes whether special or general, or assessments
(hereafter collectively referred to as "fees") adopted by the City after the
effective date of this Development Agreement, which shall be applicable to
the Project or the Property provided that they (1) are standard fees
applicable to all development in the City (although actual fee rates may
vary within the City where bona fide Citywide fee zones have been
established), (2) are not applicable primarily or only to this Project, or (3)
are not imposed to either (a) mitigate, offset or compensate for Project
impacts which were analyzed in the environmental impact report prepared
for the Project, or (b) duplicate any project design features conditions of
approval, agreements, or mitigation measures contained in this
Development Agreement.
5.7 Open Space. All common area open space on Lots A and B of Vesting
Tentative Tract Map No. 17962 must be built in the first phase.
5.8 Phasing of Project. The parties agree and acknowledge that the Project
may be built in three (3) phases, but that, except as otherwise expressly
stated herein, all conditions and mitigation measures shall be
implemented as part of the initial phase; provided, however that Owner
may propose to delay to the second phase on-site conditions (e.g.,
sidewalks) that could be damaged by future construction Additionally,
Owner shall build all private streets and the central park in the first phase.
Prior to issuance of the first building permit for the Project, Owner shall
submit a proposed Phasing Plan to the City, for review and approval by
the Executive Director of the Planning and Building Agency. The
proposed Phasing Plan shall contain those items Owner deems
75B-36
necessary, but shall include the timing for first and second phase
construction and interim site improvements (i.e., landscaping, internal
cirCLIlation) between the phases. The approved Phasing Plan must be
implemented within six (6) months after completion of the first phase (1,e.,
issuance of first Utility Release), Generally, the phases shall proceed as
follows:
Phase I
The first phase of the project would consist of 335 apartment homes within
two five -story apartment buildings wrapping a parking structure. This
phase would be built on the south side of the parcel facing Dyer Road,
Five different unit types and nine different floor plans are proposed for the
project, with the units ranging from studio to three bedroom units. This
phase also includes approximately 9,700 square feet of commercial and
restaurant space. The units would be wrapped around a 6 Va-level garage
that will contain 646 parking spaces, with another 18 spaces on the private
drive. Parking is provided ata rate of approximately 1.9 parking stalls per
unit, which includes guest and commercial parking.
Also to be renovated within this phase is the two-story, 56,000 Square foot
office building that will house the current data center tenant as well as
other future Office uses, A total of 102 parking spaces have been
allocated to this component of the project.
Phase 2
The second phase of the project would consist of 403 apartment units
situated within two five -story buildings wrapping a parking garage. This
phase would be built on the west side of the parcel with the southern
elevation facing Dyer Road. Six different unit types and nine different floor
plans are proposed for the project, with units ranging from studio to three
bedroom units. In addition, approximately 4,100 square feet of
commercial and restaurant space would be incorporated into this phase of
the project. The units would be wrapped around a 6 -level garage
containing 722 parking spaces, with another 15 spaces to be located on
the private drive. Parking for this phase has been provided at a rate of
approximately 1.83 parking stalls per unit, which includes guest parking.
Phase 3
The third and final phase of the project would consist of 483 apartment
homes within three five -story apartment buildings wrapping a parking
garage. This phase would be built at the northern area of the parcel, with
the eastern elevation facing Redhill Avenue. Six different unit types and
nine different floor plans are proposed for the project. The project units
would consist of studio, live/work, and one to three bedroom units. The
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units would be wrapped around a 6'l -level garage that would contain 809
parking spaces, with another 21 spaces to be located on the private drive.
Parking for this phase has been provided at a rate of approximately 1.72
parking stalls per unit, which includes guest parking.
6.9 Inclusionary Housing Owner's project qualifies as a "pipeline project"
under the amended Housing Opportunity Ordinance (Article XVIII.I of
Chapter 41 of the Santa Ana Municipal Code) and shall pay the City an in -
lieu fee of $9.35 per square foot of habitable space in order to fulfill the
inclusionary housing requirement. Owner may express a preference for
how these funds may be used, but the final decision regarding use of the
inclusionary housing funds lies solely with the Executive Director of the
Community Development Agency,
5.10 Covenants, Conditions, and Restrictions. Prior to the issuance of the
first building permit for the Project, Owner shall provide to the City the
proposed Covenants, Conditions, and Restrictions ("CC&R's") to be
recorded against the Property. Those CC&R's must be approved by the
Executive Director of the Planning and Building Agency. The City's review
and approval of the CC&R's shall be limited to determining inclusion of the
following restrictions within the CC&R's:
(a) Allocation of responsibility for repair of perimeter walls and common
areas, including landscaping, will be specified in the CC&R's in the
event of damage,
(b) Notice of the urban character of the City and this area, including but
not limited to (i) the permitted uses of the property and buildings in
the immediate area of the development; and (ii) the flight path for
the airport,
(c) The release of the City from all claims which may arise from or
relate to the urban character of the City and this area,
(d) The need for the approval of the City to any proposed modifications
to the provisions of the CC&R's identified in this Section 5.10.
5.11 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 default or expiration
of this Development Agreement (although such conditions must comply
with the Applicable Rules),
5,12 Compliance with Governmental Requirements. Owner shall carry out
the design, construction, and operation of the Project in substantial
conformity with all applicable laws, ordinances, statutes, codes, rules.
75B-38
regulations, orders, and decrees of the United States, the State of
California, theCounty of Orange, the City, or any other political
subdivision in which the Property is located, and of any other political
subdivision, agency, or instrumentality exercising jurisdiction over the City,
Owner or the Property, including all applicable federal, sate, and local
occupation, safety and health lads, rules, regulations and standards,
applicable state and labor standards, applicable prevailing wage
requirements, the City zoning and development standards, City permits
and approvals, building, plurnbincu, mechanical and electrical codes, as
they apply to the Property and the Project, and all other provisions of the
City and its Municipal Code (as they apply to the Property and the
Project), and all applicable disabled and handicapped access
requirements, including, without limitation, the Americans With Disability
Act, 42 U.S.C. § -12101 at seq., Government Code§ 4450 et seq., and the
Unruh Civil Flights Act, Civil Code§ 51 et seri. (collectively, "Governmental
Requirements"),
6, ANNUAL REVIEW.
6.1 City and Owner Responsibilities. City shall, at least every twelve (12)
months during the term of this Development Agreement, review the extent
of good faith substantial compliance by Owner with the terms of this
Development Agreement. Pursuant to Government Code Section 65865. 1,
as amended, Owner shall have the duty to demonstrate by substantial
evidence its good faith compliance with the terms of this Development
Agreement at the periodic review.
6.2 Review Letter. If Owner is found to be in compliance with this
Development Agreement after annual review, City shall, upon written
request by Owner, issue a Review Letter to Owner (the "Letter") stating
that based upon information known or made known to the City Council,
the City Planning Commission and/or the Executive Director of the
Planning and Building Agency, this Development Agreement remains in
effect and Owner is not in default, Owner may record the Letter in the
Official Records of the County of Orange.
6.3 Failure to Conduct Annual Review. City's failure to review at least
annually Owner's compliance with the terms and conditions of this
Development Agreement shall not constitute or be asserted by any Party
as a'breach of this Development Agreement by Owner or City.
7. DEFAULT.
7.1 Events of Default. Owner is in default under this Development
Agreement upon the happening of one or more of the following events or
conditions"
75Br39
(a) V a warranty, representation, or statement made or furnished by
Owner to the City is false or proves to have been false in any
material respect when it was made,
(b) A finding and determination made by the City Council following a
periodic review under the procedure provided for in Government
Code Section 65865.1 that upon the basis of substantial evidence
the Owner has not complied in good faith with one or more of the
terms or conditions of this DevelopmentAgreement;
(c) Failure to comply with Governmental Requirements;
(d) Any other event, condition, act or omission which materially
interferes with the intent and objectives of this Development
Agreement,
7,2 Procedure upon Default. The following principles and procedures shall
be applied in the determination of any Default:
(a) Upon the occurrence of default, City shall give Owner (the
"defaulting party") thirty (30) days written notice specifying the
nature of the alleged default and; when appropriate, the manner in
which said default may be satisfactorily cured. After proper notice
and expiration of said thirty (30) day cure period without cure, City
may terminate or amend this Development Agreement in
accordance with the procedure adopted by the City as to all
defaults that may be cured within said thirty (30) day cure period.
For defaults that cannot be cured within said thirty (30) day cure
period, City may terminate or amend this Development Agreement
in accordance with the procedure adopted by the City should at any
time Owner fail to diligently proceed in curing the default, Failure or
delay in giving notice of default shall not constitute a waiver of any
default, nor shall it change the time of default.
(b) City does not waive any claim of defect in performance by Owner, if
on periodic review the City does not propose to modify or terminate
this Development Agreement_
(c) Non-performance shall not be excused because Of failure of a third
person.
(d) An express repudiation, refusal, or renunciation of the contract, if
the same is in writing and signed by the Owner, shall be sufficient
to terminate this Development Agreement and a hearing on the
matter shall not be required.
(e) Adoption of a law or other governmental activity making
performance by the Owner unprofitable or more difficult or more
75840
expensive does not excuse the performance of the obligation by the
Owner
(f) All other remedies at lave or in equity which are not inconsistent with
the provisions of this Development Agreement are available to the
parties to pursue in the eventthere is a breach.
7.3 Damages upon Termination. In no event shall Owner be entitled to any
darnages against City upon termination of this Development Agreement.
7.4 Institution of Legal Action. In addition to any other rights or remedies,
either party may institute legal action to cure, correct, or remedy any
default or breach, to specifically enforce any covenants or agreements set
forth in this Development Agreement, or to enjoin any threatened or
attempted violation of this Development Agreement; or to obtain any
remedies consistent with the purpose of this Development Agreement,
Legal actions shall be instituted in the Superior Court of the County of
Orange, State of California, or in the Federal District Court in the Central
District of California, Southern Division.
Y
8,1 Flight to Owner/Notice/Multiple Mortgagees. Owner shall have the
absolute right to encumber Owner's right, title and interest in, to and
under this Development Agreement and the Property pursuant to one or
more Mortgages. Because certain portions of the Project may be
developed by one or more assignees, the Parties acknowledge and
agree that different Mortgages may encumber the Property and that
there may be a separate Mortgage in effect with respect to separate
parcels within the Property. It is the Intention of the Parties that the rights
and protections granted in this Section B to each Mortgagee shall only
apply to the parcels upon which such Mortgagee's Mortgage is a lien
(each a "Mortgage Parcel"), and to the rights, privileges and obligations
under this Development Agreement relating to such Mortgage Parcel,
8.2 Notice of Breach to Mortgagee or Deed of Trust Holders; Right to
Cure. With respect to any mortgage or deed of trust granted by Owner as
provided herein, whenever the City delivers any Notice or demand to
Owner with respect to any Breach by Owner under this Development
Agreement, and if Owner fails to cure the Breach within the time set forth
herein, the City shall deliver to each Mortgagee a copy of such notice or
demand accompanied by a writing to the effect that Owner has failed to
cure a Breach ("Mortgagee Notice"); provided that Owner or Mortgagee has
providers City with addresses for such purpose. Each such Mortgagee shall
(insofar as the rights granted by the City are concerned) have the right, at
its option, within thirty (30) days after the receipt of the Mortgagee Notice,
to cr.ire or remedy or commence to cure or remedy and thereafter to pursue
75B-41
with due diligence the cure or remedy of any such Breach and to add the cost
thereof to the mortgage debt and the lien of its mortgage, provided,
however if the Mortgagee is legally prevented from curing such Breach
because of a bankruptcy by the Owner then the thirty (30) day period shall
be tolled until such bankruptcy is confirmed or rejected. Nothing contained
in this Development Agreement shall be deemed to permit or authorize
such Mortgagee to take advantage of Owner's rights hereunder, or any
portion thereof, without first having expressly assumed Owner's
obligations to the City by written agreement reasonably satisfactory to the
City. It is understood that a Mortgagee shall be deemed to have satisfied
the thirty (30) day time limit set forth above for commencing to cure or
remedy Owner default which requires title and/or possession of the
Property (or portion thereof) if and to the extent any such Mortgagee has
within such thirty (30) day period commenced proceedings to obtain title
and/or possession and thereafter the Mortgagee diligently pursues such
proceedings to completion and cures or remedies the Breach, provided
that, in such event, all noncurable Defaults shall be waived.
8.3 Mortgagee Not Obligated Under this Development Agreement.
Unless a Mortgagee expressly assumes Owner's Obligations to the City in
accordance with Section 8.2, no Mortgagee shall in any way be obligated
by the provisions of this Development Agreement, nor shall any covenant
or any other provision in this Development Agreement be construed to
obligate such Mortgagee. Nothing in this Development Agreement shall be
deemed to construe, permit or authorize any such Mortgagee to devote
the Mortgage Parcel to any uses or to construct any improvements on the
Mortgagee Parcel, other than those uses or improvements provided for or
authorized by this Development Agreement.
8.4 No Liability. No Mortgagee shall have any liability beyond its interest in
the Mortgage Parcel acguired through enforcement of its Mortgage for the
performance or payment of any covenant, liability, warranty or obligation
under this Development Agreement. City agrees that it shall look solely to
the interests of such Mortgagee in such Mortgage Parcel for payment or
discharge of any such covenant, liability, warranty or obligation.
8.5 No Amendment or Termination. This Development Agreement shall
not, without the prior written consent of all Mortgagees holding Mortgages
on any portion of the Property, be emended to (a) terminate this
Development Agreement prior to the expiration of the Term (except as
expressly provided above) or (b) change any provision of this
Development Agreement which, by its terms, is specifically For the benefit
of Mortgagees. No amendment to this Development Agreement affecting
the Property or any part thereof, made without the consent of any
Mortgagee holding a Mortgage on such Property, or any part thereof, shall
be binding upon such Mortgagee or its successors in interest should it
become a party hereto
75Br42
8.8 Condemnation or Insurance Proceeds. Nothing in this Development
Agreement shall impair the rights of any Mortgagee, pdrsuant to its
Mortgage, to receive insurance and/or condemnation proceeds which are
otherwise payable to Owner granting such Mortgage.
83 Title by Foreclosure. Except as otherwise set forth herein, all of the
provisions contained in this Development Agreement applicable to any of
the Mortgage Parcel shall be binding on and for the benefit of any person
who acquires title to the property, or any part thereof, by foreclosure under
a Mortgage or transfer by deed in lieu.
8.8 Delegation to Mortgagee. Owner may delegate and/or assign
irrevocably to any Mortgagee the non-exclusive authority to exercise any
or all of Owner's obligations and/or rights hereunder with respect to the
Mortgage Parcel, but no such delegation shall be binding upon the City
unless and until either Owner or such Mortgageeshall;give to the City a
true and correct copy of a written instrument effecting such delegation,
Such delegation of authority may be effected by the terms of the Mortgage
itself, in which case service upon the other Party of an executed
counterpart or conformed copy of said Mortgage, together with written
notice specifying the provisions therein which delegates such authority to
said Mortgagee, shall be sufficient to give such other Party notice of such
delegation. No such delegation or assignment shall relieve the Owner of
that Mortgage Parcel of any of its obligations hereunder with respect to
such Mortgage Parcel.
8.9 No Obligation to Cure, Nothing herein contained shall require any
Mortgagee to cure any default of Owner referred to above,
8.10 Separate Agreement. The City Shall, upon request, execute,
acknowledge and deliver to each Mortgagee requesting same, an
agreement prepared at the sole cost and expense of Owner, in form
satisfactory to such Mortgagee and the City, between the City and the
Mortgagees, agreeing to all of the provisions hereof, provided Owner pays
for all legal and other consulting costs incurred by City in reviewing same.
8,11 Estoppel Certificate. Within thirty (30) days after written request
therefore, the City shall execute and deliver to any proposed Mortgagee in
connection with its new Mortgage and to such Mortgagee thereafter from
time to time an estoppel certificate in form and substance satisfactory to
Owner and such Mortgagee ("Estoppel Certificate"). The City hereby
agrees to reasonably cooperate in including in any such Estoppel
Certificate from time to time any provision which may reasonably be
requested by any proposed Mortgagee for the purpose of implementing
the Mortgagee protection provisions contained in this Section 8 and
allowing such Mortgagee reasonable means to protect or preserve the lien
and security interest of its Mortgage hereunder, clarifying the non -
756.43
applicability of the provisions of this Development Agreement to such
Mortgagee as it relates to parcels other than the Mortgage Parcel, and/or
such other terms and provisions as are customarily required by
Mortgagees (taking into account the customary requirements of their
participants, syndication partners or ratings agencies) in connection with
any such financing, provided, however, that no such Estoppel Certificate
shall in any way materially adversely affect any rights of the City or
increase any obligations of City under this Development Agreement.
8,12 Conflicts, if there is any conflict between this Section 8 and any other
provision contained in this Development Agreement, this Section 8 shall
control.
9. MISCELLANEOUS PROVISIONS.
9.1 Rules of Construction, The singular includes the plural; the masculine
gender includes the feminine; "shall" is mandatory; "may" is permissive. If
there is more than one signer of this Development Agreement, their
obligations are joint and several.
9.2 Entire Agreement, Waivers and Amendments. This Development
Agreement constitutes the entire understanding and agreement of the
Parties with respect to the matters set forth in this Development
Agreement. This Development Agreement supersedes all negotiation or,
previous agreements between the Parties respecting this Development
Agreement. All waivers of any provision of this Development Agreement
must be in writing and signed by the appropriate authorities of City or of
Owner. All amendments to this Development Agreement must be in
writing signed by the appropriate authorities of City and Owner, in a form
suitable for recording in the Official Records of Orange County, California.
Upon the completion of performance of this Development Agreement or its
revocation or termination, an appropriate Certificate of Completion
acknowledging such occurrence signed by the appropriate agents of
Owner and City shall be recorded in the Official Records of Orange
County, California.
9.3 Project as a Private Undertaking. It is specifically understood by the
parties that: (a) the Project is a private development for purposes of
Government Code Section 65864 at seq.; (b) City has no interest in or
responsibilities for or duty to third parties concerning any improvements to
the Property or in connection with the Project, and (c) Owner shall have
the full power and exclusive control of the Property subject to the
obligations of Owner set forth in this Development Agreement
9,4 Incorporation of Recitals. The Recitals set forth in Section 1 of this
Development Agreement are part of this Development Agreement.
75Br44
9.5 Captions- The captions of this Development Agreement are for
convenience and reference only, and shall not define, explain, modify,
construe, limit,amplify, or aid in the interpretation, construction, or
meaning of any of the provisions of this Development Agreement.
9.6 Consent. Where the consent or approval of a Party is required by or
necessary under this Development Agreement, the consent or approval
shall not be unreasonably withheld.
9.7 Covenant of Cooperation. The Parties shall cooperate with and deal
with each other in goad faith. They will assist each other to the extent
needed in the performance of the provisions of this Development
Agreement.
9.6 Time of Essence. Time is of the essence for each provision of this
Development Agreement of which time is an element.
9.9 Force Majeure. Neither Party shall be deemed to be in default where
failure or delay in performance of any of its obligations render this
Agreement is caused by floods, earthquakes, other Acts of God, fire's,
wars, riots or similar hostilities, government regulations, court actions
(such as restraining orders or injunctions), or other causes beyond the
Party's control If any such events shall occur, the Term of this Agreement
and the time for performance by either Party of any of its obligations
hereunder may be extended by the written agreement of the Parties for
the period of time that such events prevented such performance, provided
that the Term of this Agreement shall not be extended under any
circumstances for more than five (5) years.
910 Conflicts of L,aw. In the event that state or federal laws or
regulations enacted after this Development Agreement has been entered
into or the action or inaction of any other affected governmental
jurisdiction prevent or preclude compliance with one or more
provisions of this Development Agreement or require changes in plans,
maps, or permits approved by the City, the parties shall provide the
other party with written notice of such state or federal restriction,
provide a copy of such regulation or policy, and a statement of conflict
with the provisions of this Development Agreement. The Parties shall,
within thirty (30) days, meet and confer in good faith in a reasonable
attempt to modify this Development Agreement to comply with such
federal or state law or regulation. Thereafter, regardless of whether the
parties reach an agreement on the effect of such federal or state law or
regulation upon this Development Agreement, the matter shall be
scheduled for hearing before the City Council. Public notice of such
hearing shall be given pursuant to Government Code Section 66854.5.
The City Council, at such hearing, shall determine the exact
modification or suspension which shall be necessitated by such federal
75Ba45
or state law or regulation pursuant to Government Code Section
65869.5, At the hearing Owner shall have the right to offer oral and
written testimony.
9.11 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 Development Agreement.
9.12 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. 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 Development
Agreement, all Parties having been represented by counsel in the
negotiation and preparation hereof
9,13 Jurisdiction and Venue. Any action at law or in equity arising under this
Development 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.
9.14 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.
9,15 Recording. The City Clerk shall cause a copy of this Development
Agreement to be recorded with the Office of the County Recorder of
Orange County, California, within ten ('10) days following the effective date
of this Development Agreement.
75B46
IN WITNESS WHEREOF, this Development Agreement has been executed by the City
of Santa Ana and by Owner.
> :5
Dated this �� day of Gt; qi e,-
ATTEST:
I -7rV1k1V1. (alar(aHuizar,Huizar, Clerkt[18 COUncil
APPROVED AS TO FORM:
'Dsg-Storck, Assistant City Attorney
2016,
THE CITY OF SANTA ANA
<�T)zt",j
David Ca'vazos, City ManagL-r
HERITAGE VILLAGE OC'LLC,
a Delaware lire liability c pany
By:::
Name: Lto-c c -
Title:
RECORHEIM APPROVAL.
itassan -Zy
i, 1,Yecutive Director
Planning & j eilding Agency
75B*47
CALIFORNIA ALL-PURPOSE ACKNOWLEDOMENT CIVIL CODE § 1189
A notary p relic or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and nct the truthfulness, accuracy, or validity of that document.
State of California
County of
� J
On _ �2. rn i1�' _. before me, �. �C -A `, . !G'LC��� ?�?'i'� ri 4rrl lc
Date Here Insert Name and Title of the Officer
ti
personally appeared (}i1•V V i ri,fl�) �_.
Na fs(s) of Signsr(s)
who broved to me on the basis of satisfactory evidence to be the person(4 whose name,03 fsfare
subscribed to the within instrument and acknowledged to me that helshekhey executed the same In
h1.s/he0thalcsuthorized capaclty(iesj, and that by hfsfherlthelrsignature(sj'on the instrument the persdn(ay.
or the entity upon behalf of which the person(a) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the lams
of the State of California that the foregoing paragraph
is true and correct.
R05A A' MSES WITNESS m hand and official seal.
.y Commission 2C57i29 y
z
Dlotary Public •California '>
z Crane County
MI COMM Exbirss fab 7. 2009 t Signature t _)_��� � � ' I�,E'Y� __..
Signature of Notary Public
Place Notary Seal Above
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or
fraudulent reattachment of this to, to an unintended document.
Description of Attached Document
Title or Type of Document:
Number of Pages:
Document. Date:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name: _ --
Corporate Officer — Title(s);
Partner — _- Limited - General
Individual - Attorney in Fact
Trustee Guardian or Conservator
nlhter:
Signer Is Representing'
Signer's Name:
Corporate Officer — Tide(s): _
Partner — Limited General
Individual Attorney in Fact
Trustee Guardian or Conservator
Other:
Signer Is Representing: _
X;G _,_.... -C _.: �.� 1`C.(:Ctix�x4 �Cy'z"-'.� ?`T-ai:�,",,'r'S,`t?;i."w^'v.G 2,+.c�.a;cl+z��.,, �4 'L.:=,t; �v�;.r•4,
0)201'. Mahonal Notary Assiclation 1-800-IJS NOTARY (1-300-870-5327) Item 11,5907
75B-48
ACKNOWLEDGMENT
---
F A notary pu blic-- or other officer Mrii lating this
cehlficete verifies only the identity of the individual
wito signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California Orange )
County of
On May 26, 2016 _____ before me, Ruth Flamenco, Notary Public
(insert name and title of the officer)
personally appeared Marc Chasman _
who proved to me on the basis of satisfactory avidence to be the person(s) whose names-)- ar�-
subscribed to the within instrument and acknowledged to me that he/5hefttrey-e xecuted the same in
hisWrtheir,authorized eapacity(e , and that by hlslber/thrrY signaturd(-e)-on the instrument the
persun(0, or the entity upon behalf of which the person(a�ectad, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct
RUTH FIAMENCC
WITNESS m hand and dfficlai seal. Commission a 2138790
y - Notary Public -California
Orange County
�` (rj M Comm. Expires Jan 8, 2020
Signature 't� L `tom-�'-'`- ! (Seat)
75B-49
Mumum
Property Legal Description
LEGAL DESC'MPTION
THE L,�-NTD REFERRED TO HER=T BELOW IS SITU ATT -D D4 THE CITY OF SANTA ANA M-7NIYOF OFLANGEL.
STATE OF C,-U-IFOKN1A.A-ND IS DESCRIBED FOLLOWS
PARCEL 2, AS SHOWN ON E-�'�-,VIIBIT "B -T' AITACHED TO LOT LD4-=- ADTUST-MEN-, 97-023 RECORDED J—'UN-E
it _1998ASLN5TR1aEE-2TNO.
EXCEPT THOSE PORTION5 CON'TIED TO THE CM OF SANTA AINA FOR PUBLIC RIGHT-OFAVAY BY
GF--V,TTDEZDRECORDED JTJN`E 18, 2616 .AS NSTRU%,QiTNO. 21110000289229 OF OFFICIAL RECORDS.
FXCEK.TNG ALL OIL, OIL FIGHTS, NM7ERAL-S. MINERAL RIGHTS, ;ATURAL GAS RIGHTS AND OTHER
FYDRocARBONNS BY N6T-ATSOEVE:,R XA%M BL%;Ov�"N THAT ^. LAY BE WITHIN OR UNDER THE ?ARCE L OF
LA -ND H.EREDABO%'E DESCRfBED. TOGETHER WITH THE PERPETUAL RIGHT OF DRILLING, N[D;DVG
a','LOKD;G AM) OPER. TLNG THEREFORE 3' -\ TD ST ORING Epi &ND RE -MOVING THE SAME FROM SAID LkND
OF, AINTY OTHER LA,D- LNCLUMNr; TTIE RIGHT To ',VHPSTOCK OR DIRECTIONALLY DRELL AND 'M -'N":
FROM[ LANDS OTHER THAN THOSE HE nLS� M -N
,REL,jABOYE DESCRIBED? OIL OR GAS W tNE1,S AND
SHAFTS LNTO. TH-ROUGH OR ACROSS THE SUBSL7RFACE OF THE LAND IEEREDABO'a DESCRIBED, AND
To BOTTOM SUCH -V'HI-FSTOCKED OR DrRFCT'ION,,1,LLV DRILLED WELLS. TUNNTELS A�TM SH.k-77S T-�-DFK
AND BENEATH OR BEYOND FIE EXTEICOR. LDJITS THEREOF. AND TO REMML, RLTT--XNEL- EQUP,
%UJNTTAD- RE-PAIF- DEEPEN AXD OPERATE A -N, -j' SUCH IM LS OR MLN -ES WITHOL-T. HQ -='-ER- TT�E
RIGHT TO DRILL. Nff'`.E 'FACE Or - 'UPPER 504) FEET
STORE- EXPLORE OR O?cR-XTF THROUGH THE SUR , Tfizz
OF THE SUBSURFACE OF THE LAND DES( RIBED, AS RESE&VED BY =, IR-VLNE CO'. PAN -y
r`;DEED F,ECOR,DEDOCTOBER l4_lq77LVBog��i2liSPAGE �9 997 OP OFFjCj-iLRFCOR;LLAJND THE IFA�tiH
INDUSTRIAL COMPLEX rN A DEED RECORDED P—F('F%IBFR N-1 GE 191 OF OFFICIAL
RECORDS
ALSO EXCE?TC;G FROM THAT POR11OFNITINCI-LDED W17FX4 PARCEL 4 AS SHC)I.V-\- ON! ANUP PILED P4
BOOK 43 PAGE 34 OF PARCEL MAPS- Lb THE OFFICE OF THE COUNTY RECORDER OF ORANGE COb-114-Ty-
CA-LIFORNLA- A -N -Y AN ALL WATER RIGi;TS OR -LVIER:-SIS Di T.VATERS RIGHTS AND ANY AND ALL
C;EOTHEKNU'LL RIGHTS OR EN-rERESTS IN GEO-jH.-LRILkL RIGHTS, NO M-AT11R HOW ACQUIRED BY
GKA-NJTGR. 1._'417 OWNED OR USED BY GF - _N -TOR rti CONNECTION WTT'i ORINITHRESPEC7 TO THE L.
WHETHER SLCH WATER RIGHTS BE RIPAR12Cv, O'yHRLyI]NG, APPROPRIATIEVE, PERCOLATING
-!THOU- VE- '--T TO E -TER UPON THE S - ACE
pUSCRp-jI%-- OF, CONTRACTICAL- BUTT HO's ANY RIG; N URF
OF THE LAND 2THE F-IERCISE OF SUCH RIGHTS. AS RESERVED BY THE IRI-DZE C9.'4PAY): U, DEED
F.ECORDEF) OCTOBER 13 191�3�rBOOKILggt, PAGE 184 OF _OFFICLALRECORDS
APN410-221-24ASD 430-221-01
75B -M
dt
_ NUMM
Property Site Plan
75B-61
EXHIBIT C
Public Art Plan
The Public Art shall be designed, constructed, and installed by Owner
2. A Final Design Plan for the Public Art shall be submitted to the Executive Director
of the Planning and Building Agency within thirty (30) days prior to the issuance of
a Final Certificate of Occupancy for the first unit of the Project. The Executive
Director of the Planning and Building Agency shall have sole discretion to approve
or deny said Final Design Plan for the Public Art. The Final Design Plan shall (i)
identify one (1) or more specific items of Public Art for one (1) or more specific
locations and/or application, and (ii) specify the timing of the installation of the
Public Art. The installation shall occur no later than 180 clays after the first utility
release for the Project. Owner shall expend approximately One Million Three
Hundred Twelve Thousand Dollars ($1,312,000.00) in total in connection with the
Public Art. The actual amount shall be determined at building plan check submittal.
3. The Public Art should invite participation and interaction, inspire, add local
meaning, interpret the community by revealing its culture or history, and/or capture
or reinforce the unique character of the new place.
4. The Public Art should be constructed using durable materials and finishes,
including, but not limited to, stone or metal.
5. The Public Art should be comprised of a single or grouped permanent work(s) at a
prime location visible to the public and sited to complement features such as plaza
or architectural components so that the Public Art is an integral part of the
development site.
5. No Public Art shall include advertising of any type, including. but not limited to,
products, services, or businesses -
7 All Public Art shall be properly maintained at all t,mes, be free of any graffiti, and
shall not incorporate any flashing or distracting form of illumination.
8. The Owner may assign ownership, maintenance and/or repair responsibilities of
the Public Art to one or more Owners' Association(s).
9, All Public Art shall remain on the Property and may not be removed without the
approval of the Executive Director of the Planning and Building Agency.
10 Expenses not included in the Public Art Fee:
a Expenses to locate the artist(s) (e.g , airfare for artist interviews, etc )
75B 52
b. Architect and Landscape Architect fees incurred in connection with the Public
Work(s) of Art.
c. Landscaping around Public Work(s) of Art that is not included as part of the
artist's sculpture furnishings including, but not limited to, functional structures,
prefabricatedwater or electrical features not created by the artist, and
ornamental enhancements,
d. Utility fees associated with activating etectrmc or water generated artwork.
e, Lighting elements not integral to the illumination of the Public Art.
f. Publicity, public relations, photographs, educational' materials, business
letterhead or logos bearing artwork image.
g. Dedication ceremonies, including sculpture unveilings or grand openings,
75Br53
LS I W4/16
ORDINANCE NO. NS -XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA APPROVING AN AMENDMENT TO THE
DEVELOPMENT AGREEMENT BETWEEN THE CITY OF
SANTA ANA AND HERITAGE VILLAGE LLC, A
CALIFORNIA LIMITED LIABILITY COMPANY
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;
A. The City is authorized pursuant to Government Code. Sections 55864
through 55859.5 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.
B. The City enters into this Amendment to the Development Agreement
pursuant to the provisions of the Government Code and applicable City policies.
C. This Amendment to the Development Agreement came before the
Planning Commission for a duly noticed public hearing on November 14, 2015. The
Planning Commission, on a vote of X:X, made a motion to recommend approval of the
Amendment to the Development Agreement.
D. Entering into this First Amendment to the Development Agreement would
provide the City with significant benefits that are of regional significance, relate to
existing deficiencies in public facilities, and require the owner of the Heritage Village to
contribute toward public benefits.
E. The City Council has held a noticed public hearing on this Ordinance and
has considered all testimony presented thereto.
F. The previously adopted and certified Final Environmental Impact Report
EIR for the property, EIR No. 2015-01, including the Mitigation Monitoring Program,
Findings of Fact and Statement of Overriding Considerations, have been previously
approved and certified by this Council.
G. The proposed project will not adversely affect the General Plan, as is
expressly set forth in the Request for Council Action dated December 5, 2015, together
Ordinance No. NS -XXX
Page 1 of 3
75B-54
with all supporting documents, including but not limited to, proposed resolutions, which
are incorporated herein by this reference.
Section 2. The First Amendment to the Development Agreement, a true and
correct copy of which is attached hereto as Exhibit 1, is hereby approved, and the City
Manager and Clerk of the Council are authorized to execute it on behalf of the City with
such non -substantive changes as may be authorized by the City Manager and City
Attorney, The Clerk of the Council is hereby authorized and directed to cause this
Development Agreement to be recorded with the County Recorder's Office.
Section 3. 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 day of 2016.
APPROVED A5 TO FORM:
Sonia R. Carvalho
City Attorney
By:
Lisa Starck
Assistant City Attorney
Miguel A.Pulido
Mayor
75B-55
Ordinance No, NS -XXX
Page 2 of 3
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the
attached Ordinance No. NS -XXX to be the original ordinance adopted by the City
Council of the City of Santa Ana on 'and that said ordinance was
published in accordance with the Charter of the City of Santa Ana.
Clerk of the Council
City of Santa Ana
Ordinance No. NS -XXX
Page 3 of 3
75B-56