HomeMy WebLinkAboutAGENDA REPORT 2019 1120 REG CCSA ITEM 11ACITY OF MOORPARK, CALIFORNIA
City Council Meeting
of November 20, 2019
ACTION Adopted Ordinance No. 475. BY
B.Garza.
A. Consider Ordinance No. 475, Adopting the First Amendment to the Development
Agreement Between the City of Moorpark, Los Angeles Avenue LLC, and PEGH
Investments, LLC. Staff Recommendation: Waive full reading, declare Ordinance
No. 475 read for the second time, and adopted as read. ROLL CALL VOTE
REQUIRED
Item: 11.A.
ORDINANCE NO. 475
AN ORDINANCE OF THE CITY OF MOORPARK,
CALIFORNIA, ADOPTING THE FIRST AMENDMENT TO THE
DEVELOPMENT AGREEMENT BETWEEN THE CITY OF
MOORPARK, LOS ANGELES AVENUE LLC, AND PEGH
INVESTMENTS, LLC
WHEREAS, Section 65864, Article 2.5, Chapter 4, Division 1, Title 7 of the State
Planning and Zoning Law provides that cities may enter into contractual obligations
known as Development Agreements with persons having equitable interest in real
property for development of that property; and
WHEREAS, on October 5, 2011, the City Council of the City of Moorpark
conducted a duly noticed public hearing and, on October 19, 2011, adopted Ordinance
No. 409 approving a Development Agreement between the City of Moorpark and Los
Angeles Avenue LLC, PEGH Investments LLC, The Kevin Newberg Trust, and The
Richard S. Held Enterprises Retirement Trust proposed in conjunction with the project
initiated by Triliad Development, Inc. for Los Angeles Avenue LLC, PEGH Investments,
LLC, The Kevin Newburg Trust, and the Richard S. Held Enterprises Retirement Trust
associated with the construction and operation of a 559,450 square-foot motion picture
studio complex on 33 acres of property located at 11289 Los Angeles Avenue, including
certain on and off-site improvements; and
WHEREAS, the City Council on October 5, 2011, adopted the Mitigated Negative
Declaration for the project referenced above, as having been completed in accordance
with the California Environmental Quality Act, (CEQA), the CEQA Guidelines and the
City’s CEQA procedures; and
WHEREAS, on October 29, 2014, the property interest previously held by The
Richard S. Held Enterprises Retirement Trust and The Kevin Newburg Trust were
transferred to PEGH Investments, LLC via Grant Deed (Instrument Number 20141029-
00136675-0); and
WHEREAS, on August 6, 2019, Valerie Draeger with Triliad Development, Inc.,
on behalf of PEGH Investments, LLC and Los Angeles Avenue, LLC filed an application
for the First Amendment to the Development Agreement to extend the term of the
effective agreement for an additional five years; and
WHEREAS the Developer has demonstrated diligent pursuit of the project
including contact with several motion picture studios, obtaining the approval of permits
from the Ventura County Flood Protection Control District, and the construction of
improvements related thereto but has not yet identified a partner for the development of
the property; and
Item: 11.A.
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Ordinance No. 475
Page 2
WHEREAS, a duly noticed public hearing was conducted by the City Council on
November 6, 2019, to consider the First Amendment to the Development Agreement
and to accept public testimony related thereto; and
WHEREAS, the City Council has considered all points of public testimony
relevant to the Development Agreement and has given careful consideration to the
content of the First Amendment to the Development Agreement.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES ORDAIN AS FOLLOWS:
SECTION 1. The City Council of the City of Moorpark does hereby find as
follows:
A. The First Amendment to the Development Agreement is consistent
with the General Plan.
B. The First Amendment to the Development Agreement and the
assurances that said agreement places upon the project are consistent with the intent
and provisions of the Mitigated Negative Declaration and that the five-year time
extension and related amendments are exempt from environmental review pursuant to
Section 15061(b)(3) of the California Environmental Quality Act.
C. The Development Agreement is necessary to ensure the public
health, safety, and welfare.
SECTION 2. The City Council hereby adopts the First Amendment to the
Development Agreement (attached hereto) between the City of Moorpark, a municipal
corporation, Los Angeles Avenue LLC, and PEGH Investments, LLC and the City Clerk is
hereby directed to cause one copy of the signed, adopted agreement to be recorded with
the County Recorder no later than ten (10) days after the City enters into the development
agreement pursuant to the requirements of Government Code Section 65868.5.
SECTION 3. If any section, subsection, sentence, clause, phrase, part or
portion of this Ordinance is for any reason held to be invalid or unconstitutional by any
court of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this Ordinance. The City Council declares that it would have adopted this
Ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof,
irrespective of the fact that any one or more section, subsections, sentences, clauses,
phrases, parts or portions be declared invalid or unconstitutional.
SECTION 4. This Ordinance shall become effective thirty (30) days after its
passage and adoption.
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Ordinance No. 475
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SECTION 5. The City Clerk shall certify to the passage and adoption of this
ordinance; shall enter the same in the book of original ordinances of said City; shall make
a minute of the passage and adoption thereof in the records of the proceedings of the City
Council at which the same is passed and adopted; and shall publish notice of adoption in
the manner required by law.
PASSED AND ADOPTED this 20th day of November, 2019.
Janice S. Parvin, Mayor
ATTEST:
___________________________________
Ky Spangler, City Clerk
Attachment: Exhibit A – First Amendment to Development Agreement
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Ordinance No. 475
Page 4
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
CITY CLERK
CITY OF MOORPARK
799 Moorpark Avenue
Moorpark, California 93021
EXEMPT FROM RECORDER’S FEES
Pursuant to Government Code §6103
FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND
BETWEEN THE CITY OF MOORPARK, LOS ANGELES AVENUE
LLC, AND PEGH INVESTMENTS, LLC
EXHIBIT A
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Ordinance No. 475
Page 5
THIS AGREEMENT SHALL BE RECORDED WITHIN TEN DAYS OF EXECUTION BY
ALL PARTIES HERETO PURSUANT TOTHE REQUIREMENTS OF GOVERNMENT
CODE §65868.5
FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
BY AND BETWEEN THE CITY OF MOORPARK, LOS
ANGELES AVENUE LLC, AND PEGH INVESTMENTS, LLC
This First Amendment to the Development Agreement ("the Agreement") made
and entered into on November 30, 2011, and recorded on December 5, 2011 by
Instrument No. 20111205-00185133-0 by and between the CITY OF
MOORPARK, a municipal corporation (referred to hereinafter as "City"), Los
Angeles Avenue LLC, and PEGH Investments, LLC, the owners of real property
within the City of Moorpark generally referred to as Industrial Planned
Development Permit 2009-01 (referred to hereinafter individually as
"Developer") is made and entered into on ______________, 2019. City and
Developer are referred to hereinafter individually as "Party and collectively as
"Parties." In consideration of the mutual covenants and agreements contained
in this First Amendment to the Agreement, City and Developer agree as follows:
1. Recitals. This First Amendment to the Agreement is made with respect to
the following facts and for the following purposes, each of which is
acknowledged as true and correct by the Parties:
a. Pursuant to Government Code Section 65864 et seq. and
Moorpark Municipal Code chapter 15.40, City is authorized to
enter into a binding contractual agreement with any person
having a legal or equitable interest in real property within its
boundaries for the development of such property in order to
establish certainty in the development process.
b. On November 30 2011, the City and Developer made and
entered into a Development Agreement, recorded on December
5, 2011 by Instrument No. 20111205-00185133-0, for a project
involving the following project approvals: General Plan
Amendment No. 2009-01, Zone Change No. 2009-01, Industrial
Planned Development Permit No. 2009-01 and Conditional Use
Permit No. 2009-01 for approximately 33 acres of land within the
City ("the Property"), as more specifically described in Exhibit "A"
attached to and incorporated in the Agreement.
c. Prior to approval of the Agreement, the City adopted a Mitigated
Negative Declaration (MND), Mitigation Measures, and a
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Ordinance No. 475
Page 6
Mitigation Monitoring and Reporting Program ("the MMRP") for
the Project Approvals as defined in subsection 1.2 of this First
Amendment to the Agreement. The MND, Mitigation Measures,
and MMRP remain applicable to the project as amended by this
First Amendment to the Agreement.
d. City and Developer acknowledge and agree that the
consideration that is to be exchanged pursuant to this
Agreement as amended by this First Amendment is fair, just
and reasonable and that this Agreement as amended by this
First Amendment is consistent with the General Plan of City.
e. On November 6, 2019, the City Council commenced a duly
noticed public hearing on this First Amendment to the Agreement,
and following the conclusion of the hearing approved the First
Amendment to the Agreement by adoption of Ordinance No. 475
on November 20, 2019.
2. Amendment of Section 6.15. Section 6.15 of the Agreement is
amended as follows:
6.15. Developer agrees to comply with Section 15.40.150 of the
Moorpark Municipal Code and any provision amendatory or
supplementary thereto for annual review of this Agreement and
future agrees that the annual review shall include evaluation of its
compliance with the approved Mitigated Negative Declaration
(MND) and Mitigation Monitoring and Reporting Program
(MMRP). Developer agrees within ninety (90) days of the
operative date of this Agreement to deposit Twenty-File Thousand
Dollars ($25,000) for the cost of annual reviews for the life of this
Agreement through November 18, 2021. After November 18,
2021, the Developer shall pay fees on an annual basis for each
review pursuant to the fees in effect at the time of submittal.
3. Amendment of Section 6.20. Section 6.20 of the Agreement is amended
as follows:
6.20. Upon receipt of a written request by the City Manager or his/her
Designee, Developer shall dedicate the full right-of-way for North
Hills Parkway along the reach of the Project from Los Angeles
Avenue on the south to the railroad on the north. Dedication will
include any slope and construction easements necessary for the
construction of the road improvements and maintenance of the
road, including slopes and retaining walls. Developer agrees to
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Ordinance No. 475
Page 7
participate in a community facilities district or other financing
mechanism acceptable to the City for the construction of North
Hills Parkway or alternatively Developer will be allowed to pay two
million dollars ($2,000,000.00) which will be the Developer’s full
pro-rata share of improvements of North Hills Parkway.
Commencing on January 1, 2013, and annually thereafter, the
contribution amount for Developer’s full pro-rata share if of
improvements of North Hills Parkway shall be increased to reflect
the change in the Caltrans Highway Bid Price Index for Selected
California Construction Items for the twelve (12) month period
available on December 31 of the preceding year (“annual
indexing”). In the event there is a decrease in the referenced
Index for any annual indexing, the current amount of the fee shall
remain until such time as the next subsequent annual indexing
which results in an increase.
4. Amendment of Section 19. Section 19 of the Agreement is amended as
follows:
19. Term. This Agreement shall remain in full force and effect for a
term of ten (10) years commencing on its operative date unless
said term is amended or the Agreement is sooner terminated as
otherwise provided herein until November 18, 2026. Upon notice
in accordance with subsection 20 below the Developer may notify
City at least one hundred eighty (180) days in advance of the
term of this Agreement that an additional term is necessary for
the completion of the Project. City may, at its sole and unfettered
discretion, extend the agreement for a term of not less than one
(1) year and no more than ten (10) years. Said extension of the
term of this Agreement may include the addition of any new fees
which may be in effect at the time of the extension request.
Expiration of the term or earlier termination of this Agreement
shall not automatically affect any Project Approval or Subsequent
Approval that has been granted or any right or obligation arising
independently from such Project Approval or Subsequent
Approval.
Upon expiration of the term or earlier termination of this
Agreement, the Parties shall execute any document reasonably
requested by any Party to remove this Agreement from the public
records as to the Property, and every portion thereof, to the
extent permitted by applicable laws.
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Ordinance No. 475
Page 8
5. All other provisions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the Developer and City of Moorpark have executed
this First Amendment to the Development Agreement on the date first above written.
CITY OF MOORPARK
Janice S. Parvin
Mayor
OWNER/DEVELOPER
LOS ANGELES AVENUE LLC
By: ________________________________
Robert Murray
Its: Managing Member
PEGH INVESTMENTS, LLC
By: ________________________________
Robert Murray
Its: Managing Member
ALL SIGNATURES MUST BE NOTARIZED
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Ordinance No. 475
Page 9
EXIIIBIT"A"
PART OF SUBDIVISION"L"AS THE SAME IS DESIGNATED AND DELINEATED
UPON THAT CERTAIN MAP ENTITLED"MAP OF THE LANDS OF RANCHO
SIMI,IN VENTURA AND LOS ANGELES COUNTIES,CALIFORNIA",AS PER •
MAP RECORDED IN BOOK 3,PAGE 7 OF MAPS,IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY,ALSO BEING A PORTION OF
SECTION 6,TOWNSHIP 2 NORTH,RANGE 19 WEST,DESCRIBED AS
FOLLOWS:
BEGINNING AT A''/ CORNER COMMON TO SECTIONS 6 AND 7 PER PARCEL
MAP 43 PM 77 AS RECORDED IN MISCELLANEOUS MAP IN THE OFFICE OF
THE COUNTY RECORDER,COUNTY OF VENTURA,STATE OF CALIFORNIA
(POB);THENCE;NORTH 30 FEET TO THE NORTH RIGHT OF WAY FOR
HIGHWAY 118,STATE OF CALIFORNIA TO THE TRUE POINT OF BEGINNING
(TPOB);THENCE,
1ST: EAST 1320.00 FEET ALONG SAID RIGHT OF WAY;THENCE,
T _
2ND; NORTH 1226.80 FET TO THE SOUTH RIGHT OF WAY OF THE UNION
PACIFIC RAILROAD;THENCE ALONG SAID RIGHT OF WAY,
( 3RD; SOUTH 76°14'50"WEST 2020.38 FEET;THENCE,
4TH: SOUTH 746.50 FEET TO THE NORTH RIGHT OF WAY FOR SAID
HIGHWAY 118;THENCE ALONG SAID RIGHT OF WAY,
5TH EAST 642.46 FEET TO THE TRUE POINT OF BEGINNING.
CONTAINING AN AREA OF 44.45 ACRES.
EXHIBIT"B"ATTACHED AND BY THIS REFERENCE MADE A PART HEREOF.
THESE DESCRIPTIONS HAVE BEEN
PREPARED BY MB OR UNDER MY
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4.1 x.21037 n)6/1l,/
* Exp.9-36-73
Dennis Daniel Date
s� Mk e RCE 21017, Exp.9-30-13
102
Ordinance No. 475
Page 10
103
Ordinance No. 475
Page 11
EXHIBIT "C"
ADDRESSES OF PARTIES
To City:
City of Moorpark
799 Moorpark Avenue
Moorpark, CA 93021
Attn: City Manager
To Developer:
Los Angeles Avenue, LLC and PEGH Investments, LLC
Attention: Valerie Draeger
Triliad Development, Inc.
4812 Lakeview Canyon Road
Westlake Village, CA 91361
104