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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. 94 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. 95 Ordinance No. 475 Page 3 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 96 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 97 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 98 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 99 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. 100 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 101 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 • DDtECT;I[, i. 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