HomeMy WebLinkAboutAGENDA REPORT 2022 1005 CCSA REG JNT DC ITEM 10DCITY OF MOORPARK, CALIFORNIA
City Council Meeting
of October 5, 2022
ACTION APPROVED STAFF
RECOMMENDATIONS.
BY A. Hurtado.
D. Receive Final Report of Annual Development Agreement Review, Established in
Connection with Meridian Hills Development Project, Tract 5187-1&2, Located on
the West Side of Walnut Canyon Road, approximately 3,500 Feet North of Casey
Road, on the Application of Resmark Equity Partners, LLC and K. Hovnanian at
Meridian Hills, LLC (Formerly West Pointe Homes and William Lyon Homes Inc.).
Staff Recommendation: 1) Accept the Community Development Director’s report
and recommendation that, on the basis of substantial evidence, that Resmark
Equity Partners, LLC and K. Hovnanian at Meridian Hills, LLC have complied in
good faith with the terms and conditions of the Agreement; and 2) Deem the annual
review process for this project complete with no further annual review necessary.
(Staff: Carlene Saxton, Community Development Director)
Item: 10.D.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Carlene Saxton, Community Development Director
BY: Adam Pisarkiewicz, AICP, Contract Planner
DATE: 10/05/2022 Regular Meeting
SUBJECT: Receive Final Report of Annual Development Agreement Review,
Established in Connection with Meridian Hills Development Project,
Tract 5187-1&2, Located on the West Side of Walnut Canyon Road,
approximately 3,500 Feet North of Casey Road, on the Application of
Resmark Equity Partners, LLC and K. Hovnanian at Meridian Hills, LLC
(Formerly West Pointe Homes and William Lyon Homes Inc.)
BACKGROUND
Government Code Section 65864 and the City of Moorpark Municipal Code Section 15.40
provide for Development Agreements between the City and property owners in
connection with proposed plans of development for specific properties. Development
Agreements are designed to strengthen the planning process, to provide developers with
some certainty in the development process and to assure development in accordance
with the terms and conditions of the agreement.
On February 6, 2002, the Moorpark City Council adopted Ordinance No. 277 (effective
March 8, 2002), approving a Development Agreement between the City of Moorpark and
West Pointe Homes, Inc. The agreement was approved in connection with the Tract No.
5187/RPD No. 1999-02, a 248 single-family residential development on a portion of a
350-acre site, located on the west side of Walnut Canyon Road, approximately 3,500 feet
north of Casey Road. The agreement remains in full force and effect for twenty (20) years
from the operative date of the agreement (until March 8, 2022), or until the close of escrow
on the initial sale of the last affordable housing unit, whichever occurs last.
On January 10, 2008, William Lyon Homes verbally informed City staff their company’s
interest in the unbuilt portions of the Meridian Hills project (183 lots in Tract 5187 and 17
lots in Tract 5405) had been completely transferred to ORA Ashford 94, LLC. Resmark
Equity Partners, LLC (Resmark) is the sole managing entity of the Meridian Hills project
on behalf of ORA Ashford 94, LLC. This transaction took place in violation of the
Development Agreement for this project, which requires City Council approval of an
Item: 10.D.
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amendment to the Implementation Plan to address the responsibilities of a new owner
prior to the transfer of ownership. On March 25, 2008, William Lyon Homes submitted a
formal application to the City seeking approval of an amendment to the Implementation
Plan. A draft Implementation Plan was presented to the City Council at its April 16, 2008
meeting, at which time the item was continued to allow additional time for the residents
to review the plan. On May 21, 2008, Resmark received the City Council’s approval of
an Amended Implementation Plan for the project.
On June 13, 2014, Resmark verbally informed City staff that K. Hovnanian at Meridian
Hills, LLC had entered into an exclusive negotiation escrow to acquire the unbuilt portions
of the Meridian Hills project (183 lots in Tract 5187 and 17 lots in Tract 5405). On July
16, 2014, the City Council approved a second amendment to the Implementation Plan,
with K. Hovnanian Homes as the responsible party once ORA Ashford 94 LLC’s interests
in Tract 5187 and 5405 are transferred to K. Hovnanian Homes.
Since 2014, K. Hovnanian at Meridian Hills, LLC has had a controlling interest in 65 lots,
which were unbuilt at the time of acquisition, in Tract 5187 and all 17 of the lots in Tract
5405, with Resmark holding ownership of the remainder of the project. K. Hovnanian at
Meridian Hills, LLC has provided documentation that the requirements of the second
amendment to the Implementation Plan have been complete. Since the requirements of
the Development Agreement have been fulfilled and the Development Agreement has
now expired, this will be considered complete and this will be the final report.
DISCUSSION
Current Project Status
• All 250 single-family residential lots have been developed and are occupied.
• Grading, street, and drainage improvements have been completed.
• The Final Map has been approved by City Council and recorded in the Ventura County
Recorder’s office.
Developer Compliance with Terms of Agreement
The developer’s responsibilities are included in Section 6 of the Development Agreement,
and include requirements 6.1 through 6.21, summarized below. Compliance with the
terms and conditions of the Development Agreement occurs at various stages of the
development process. Action by the developer and other clarifying information has
been noted. Where no comment appears, no specific activity has occurred.
NO. REQUIREMENT STATUS
6.1 Developer shall comply with the Agreement,
subsequent project approvals and Mitigation
Monitoring Program.
Developer is in compliance with all
requirements at this time.
6.2 All lands and interests in land shall be dedicated
free and clear of liens and encumbrances.
All lands and interests in land were dedicated
upon recordation of the Final Map.
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NO. REQUIREMENT STATUS
6.3 Payment of “Development Fees” of $7,850.00
per residential unit and $35,325.00 per gross
acre of institutional land.
These fees are adjusted annually (until paid)
using the Consumer Price Index (CPI) in
accordance with the agreement. Fees must
be paid prior to issuance of Zoning
Clearance for Building Permit. This fee has
been collected with all Zoning Clearances for
Building Permit to date.
6.4 Payment of “Citywide Traffic Fees” of
$4,420.00 per residential unit and $19,080.00
per acre of institutional land.
These fees are adjusted annually (until paid)
using the State Highway Bid Price Index in
accordance with the agreement. Fees must
be paid prior to issuance of Zoning
Clearance for Building Permit. This fee has
been collected with all Zoning Clearances for
Building Permit to date.
6.5 Payment of “Community Service Fees” of
$2,030.00 per residential unit and $6,428.00
per gross acre of institutional land.
These fees are adjusted annually (until paid)
using the Consumer Price Index (CPI) in
accordance with the agreement. Fees must
be paid prior to issuance of Zoning
Clearance for Building Permit. This fee has
been collected with all Zoning Clearances for
Building Permit to date.
6.6 Payment of all outstanding processing costs. This is an ongoing requirement. At this time
the developer is current with all processing
costs, including submittal of Annual Review
Application and deposit for Development
Agreement – Annual Review.
6.7 Payment of a fee in lieu of park dedication
“Park Fee” of $9,000 per residential unit and
$0.50 per square foot of each building used for
institutional purposes.
These fees are adjusted annually (until paid)
using the Consumer Price Index (CPI) in
accordance with the agreement. Fees must
be paid prior to issuance of Zoning
Clearance for Building Permit. This fee has
been collected with all Zoning Clearances for
Building Permit to date.
6.8 Provided that prior to Final Map recordation
confirmation from Ventura County Waterworks
District No. 1 that sufficient recycled water is
available to serve public and community owned
landscape areas. Developer shall design and
construct facilities required to deliver the
reclaimed water to the project, and provide
payment of any connection/meter fees
required by the District.
If determined necessary, these
improvements will be included in the Water
Works District No. 1 improvement plan
package and will be bonded for prior to
recordation of the Final Map. At this present
time, no connection points exist within the
vicinity of the project.
6.9 Greenbelts, open space areas, landscape
areas and trails (not covered by any other
section) shall be dedicated to the City, or one
or more property owners associations as
determined by the City.
Included on recorded Final Map.
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NO. REQUIREMENT STATUS
6.10.A Irrevocable offer of dedication of Lot 263, for
permanent open space preservation purposes
on the first Final Map.
Included on recorded Final Map.
6.10.B Annual Payment of ten-thousand dollars
($10,000) for permanent management,
maintenance, and mitigation monitoring for
open space Lot 263. The HOA shall be
responsible for this perpetual obligation.
Payment of this fee commences concurrently
with the recordation of the final map, and
annually thereafter on the anniversary of the
recordation date, which was October 26,
2006. The first seven installments have been
paid. This fee will be adjusted annually using
the Consumer Price Index (CPI) in
accordance with the agreement and the next
payment is due October 26, 2014. These
future annual payments have been included
in the HOA budget.
6.10.C Grant conservation easement to retain Lots
254, 255, 257, 258, 259, 260, 261, 262, 264
and 265 in predominantly open space
condition.
Dedication of Lot 251 to the City for permanent
open space preservation and trail staging area.
Prior to occupancy of the 165th residential unit
the developer shall improve the trail staging
area, provide payment for perpetual
maintenance, and provisions for temporary trail
staging area within “A” Street right-of-way.
Included on recorded Final Map.
Included on recorded Final Map.
Developer is in compliance with this
requirement.
6.11 Provide a total of twenty (20) affordable
housing units in accordance with the
agreement. Payment of an in-lieu fee of
seventy thousand ($70,000) for each unit less
than the required twenty (20) shall be paid prior
to occupancy of the 50th unit.
Prior to occupancy of the first residential unit,
the developer will enter into an Affordable
Housing Agreement with the City, and pay the
direct costs for preparation of the agreement up
to seven thousand five hundred dollars
($7,500).
Entitlement permits have been approved for
seventeen (17) affordable units to be located
southerly of the subject development.
Improvement plans have been submitted for
plan check, and grading is partially
completed. On November 15, 2007, the
developer paid the $236,667.53 in-lieu fee
for three units required prior to occupancy of
the 50th unit.
The Affordable Housing Agreement was
executed by the applicant and the City and
recorded on December 15, 2006.
6.12 Pay Air Quality Fee in the amount of one
thousand four hundred forty-four dollars
($1,444) per residential unit, and for
institutional uses at a rate calculated by the
Community Development Department.
This fee will be adjusted annually (until paid)
using the Consumer Price Index (CPI) in
accordance with the agreement. Fees must
be paid prior to issuance of Zoning
Clearance for Building Permit. This fee has
been collected with all Zoning Clearances for
residential Building Permits to date and upon
issuance of final occupancy Zoning
Clearances for institutional uses.
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NO. REQUIREMENT STATUS
6.13 Submittal and approval of an Implementation
Plan to address requirements for phasing and
construction responsibilities.
The original Implementation Plan was
approved by the City Council on July 4, 2004.
In January, 2008, Resmark Equity Partners,
LLC purchased the project and an amended
Implementation Plan was approved by the
City Council on May 21, 2008. On July 16,
2014, the City Council approved a second
amendment to the Implementation Plan, with
K. Hovnanian Homes as the responsible
party once ORA Ashford 94 LLC’s interests
in Tract 5187 and 5405 are transferred to K.
Hovnanian Homes.
6.14 Waiver of any density bonus rights that would
increase the number of dwelling units approved
to be constructed on the property.
Applicant has not requested density bonus
units.
6.15 Agreement to cast affirmative ballots for
formation of one or more assessment districts
for maintenance of parkway and median
landscaping and street lighting, including but
not limited to all water and electricity costs.
Agreement to form property owners
association(s) to provide landscape, street
lighting and park (if necessary) open space
land, trails drainage facilities maintenance and
compliance with NPDES requirements.
The required fees were collected by staff and
a Landscape Maintenance District formation
petition for the formation of an Assessment
District has been reviewed and approved by
the City Council to inaugurate an
Assessment District.
6.16 Payment of all City capital improvement and
processing fees.
Developer is in compliance with all
requirements at this time.
6.17 Payment of Los Angeles Avenue Area of
Contribution (AOC) Fee.
Fees must be paid prior to issuance of
Zoning Clearance for Building Permit. This
fee has been collected for all Zoning
Clearances for Building Permit to date.
6.18 Construction of regional flood control basin (Lot
259) per Walnut/Gabbert Deficiency Study, in
lieu of pro rata contribution for Drainage,
Sediment Transport and Flood Control
Planning Mitigation Measure #4.
Basin is shown on Final Map, with capacity
verified by Ventura County Watershed
Protection District. Improvement plans and
permits have been issued by VCWPD,
construction has been completed, and the
basin has been accepted by VCWPD.
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NO. REQUIREMENT STATUS
6.19 Payment of seventy-thousand dollars
($70,000) to satisfy Final EIR Biological and
Botanical Resources Mitigation Measures.
This fee was paid on April 7, 2006, and
deposited to the Open Space Maintenance
Fund (2155).
6.20 Construct “A” Street from “E” Street to southern
boundary prior to occupancy of 165th
residential unit, including all plan check and
inspection costs, and improvement surety.
These improvements were included with
project improvement plans and securities.
6.21 Payment of three hundred thousand dollars
($300,000) to satisfy Mitigation Monitoring
Program Traffic and Transportation Mitigation
measures. Payment of twenty-thousand
($20,000) to satisfy Public Services and
Utilities Mitigation Measures.
Effective March 1, 2005, the $300,000 fee
shall increase by one-half of one percent
(0.5%) per month until paid. These fees were
collected on October 28, 2005 and paid in full
with indexing.
6.22 Acquire, at sole cost and expense, the property
needed to improve Walnut Canyon Road.
The Walnut Canyon improvements are
complete and no additional dedication is
required.
6.23 Construct public trail system across Walnut
Canyon Road frontage of the property to
connect to the trail constructed by Tract No.
4928 (Country Club Estates). Maintenance to
be the responsibility of the property owners
association(s).
Trail requirements are per Permit Adjustment
No. 2 approved November 19, 2004. Trail
improvements are complete.
6.24 Agreement to pay any fees and payments
pursuant to this Agreement without
reservation.
Developer is in compliance with all
requirements at this time.
6.25 Agreement to comply with requirements for
annual review of the Agreement including
evaluation of Mitigation Monitoring Program.
To date, the applicant has complied with
review requests and Mitigation Monitoring
Program requirements.
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NO. REQUIREMENT STATUS
6.26 Agreement to install photovoltaic system for
each residential dwelling unit, so long as City
adopts a policy and standards prior to January
31, 2004 or approval of the first phase of the
Final Map, whichever is later.
On February 18, 2004, City Council adopted
standards which provide for voluntary
installation of photovoltaic systems.
All requirements of the Development Agreement are considered in the City’s review and
approval process for all aspects of the development; including but not limited to,
subsequent entitlement requests, public and private improvements, Final Maps, and
building permits.
City Compliance with Terms of Agreement
The City’s responsibilities are contained in Section 7 of the Agreement and include
provisions 7.1 through 7.8, summarized below.
NO. REQUIREMENT STATUS
7.1 Agreement to commit reasonable time and resources
on expedited and parallel processing of
application for subsequent applications.
To date, City has complied with any such
requests.
7.2 If requested, at the Developer’s cost, proceed to
acquire easements or fee title to land in order to
allow construction of required public improvements.
To date, no such request has been
received.
7.3 Agreement to authorize the City Manager to sign an
early grading permit.
An early grading agreement was executed
by the City Manager in August 2004.
7.4 Agreement to process concurrently, whenever
possible, all land use entitlements for the same property (so long as deemed complete).
Entitlement applications for the affordable
housing project were processed
concurrently.
7.5 Agreement that Park Fee required per S ection 6.7
meets obligation for park land dedication provisions
of state law and local codes.
To date, City has complied.
7.6 Agreement to cooperate with developer to allow
maximum tax benefits for dedication of Lot 263 for
public open space.
Open Space Easement Grant Deed was
recorded April 27, 2004; and a
Conservation Easement over this land was
dedicated on the recorded Final Map.
7.7 Agreement to appoint affordable housing staff
person to oversee the implementation of affordable
housing requirements.
The Economic Development and Housing
Manager oversees affordable housing
requirements.
7.8 Agreement to allow for a variation of five (5’) feet
maximum in the grades as shown on the Grading
Plan exhibit, subject to approval of the Community
Development Director/City Council that the overall
design and visual quality would not be significantly
affected.
To date, no such request has been
received.
7.9 Agreement to facilitate reimbursement to developer
of any costs incurred to be subject to partial
reimbursement from other developers.
To date, no such request has been
received.
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NO. REQUIREMENT STATUS
7.10 Agreement to process a lot line adjustment to modify
the common lot line between Tract 5187 and APN
500-0230-195 (Peters’ parcel) to increase Peters’
parcel to ten (10) gross acres, not to exceed eight-
thousand eight hundred (8,800) square feet. The lot
line adjustment must be filed prior to approval of the
first final map.
The lot line adjustment has been approved
and recorded.
7.11 Agreement that affordable unit Development Fee
shall be three thousand dollars ($3,000) per unit;
Park Fee shall be three thousand six hundred dollars
($3,600) per unit, and Air Quality Fee shall be five-
hundred dollars ($500) per unit.
All fees have been paid.
Evaluation of Good Faith Compliance
Based on a review of the Development Agreement Annual Review Application and the
status of the project, the Community Development Director has determined, on the basis
of substantial evidence that Resmark Equity Partners, LLC and K. Hovnanian at Meridian
Hills, LLC has, to date, complied in good faith with the terms and conditions of the
Agreement. This project is deemed complete, the Development Agreement has expired,
and no further annual reviews are necessary.
FISCAL IMPACT
There is no fiscal impact associated with this report.
COUNCIL GOAL COMPLIANCE
This action does not support a current strategic directive.
STAFF RECOMMENDATION
1. Accept the Community Development Director’s report and recommendation that,
on the basis of substantial evidence, that Resmark Equity Partners, LLC and K.
Hovnanian at Meridian Hills, LLC have complied in good faith with the terms and
conditions of the Agreement.
2. Deem the annual review process for this project complete with no further annual
review necessary.
Attachment: Location Map and Site Plan
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ATTACHMENT
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