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HomeMy WebLinkAboutAGENDA REPORT 2024 0221 CCSA REG ITEM 10FCITY OF MOORPARK, CALIFORNIA City Council Meeting of February 21, 2024 ACTION APPROVED STAFF RECOMMENDATION. BY A. Hurtado. F. Consider Report of Annual Development Agreement Review, Established in Connection with Residential Planned Development No. 2012-02 (Vendra Gardens), for a 200-Unit Apartment Complex on Approximately 11.66 Acres at 150 Casey Road, on the Application of Dan Johnson of Danco Communities (on Behalf of Moorpark Casey Road L.P.). Staff Recommendation: 1) Accept the Community Development Director’s report and recommendation that, on the basis of substantial evidence, the Developer has complied in good faith with the terms and conditions of the agreement; and 2) Deem the 2024 annual review process for this project complete. (Staff: Carlene Saxton, Community Development Director) Item: 10.F. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Carlene Saxton, Community Development Director BY: Shanna Farley, Principal Planner DATE: 02/21/2024 Regular Meeting SUBJECT: Consider Report of Annual Development Agreement Review, Established in Connection with Residential Planned Development No. 2012-02 (Vendra Gardens), for a 200-Unit Apartment Complex on Approximately 11.66 Acres at 150 Casey Road, on the Application of Dan Johnson of Danco Communities (on Behalf of Moorpark Casey Road L.P.) BACKGROUND Government Code Section 65864 and 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 some certainty in the development process and to assure development in accordance with the terms and conditions of the agreement. On March 15, 2017, the Moorpark City Council adopted Ordinance No. 443 (effective April 14, 2017), approving a Development Agreement (“Agreement”) between the City of Moorpark and Essex Moorpark Owner, L.P. The Agreement was approved in connection with Residential Planned Development Permit No. 2012-02, for the development of a 200- unit multi-family rental project located on 11.66 acres of land (“Project”), located at 150 Casey Road (“Project Site”), now known as Vendra Gardens. The Agreement remains in full force and effect for 20 years from the operative date of the Agreement, expiring on April 14, 2037. Since the original approval of the Agreement for the Project, four amendments to the Agreement have been approved by the City Council, as shown in Table 1 on the following page. Item: 10.F. 110 Honorable City Council 02/21/2024 Regular Meeting Page 2 Table 1 Amendment No. Approval Date Ordinance No. 1 September 15, 2021 490 2 November 2, 2022 509 3 March 1, 2023 511 4 January 17, 2024 520 The Agreement requires an annual review and report to the City Council on the status of completion of all aspects of the Agreement and confirmation of the Developer’s compliance with the terms of the Agreement. This is the first annual review of this Development Agreement. Dan Johnson (“Applicant”) submitted the necessary materials and fee deposit for the 2023 annual review on behalf of Moorpark Casey Road L.P. (“Owner”/”Developer”). The Community Development Director has reviewed the submitted information, the project status, and provides the following report. DISCUSSION Current Project Status • The Project and Project Site were sold by Essex Moorpark Owner, L.P. to Moorpark Casey Road L.P. on March 10, 2023. Danco Communities is the contractor building the Project. • The Developer has acquired grading permits and has commenced site clearing, site grading, installed erosion control measures, began installation of retaining and site walls, removed and replaced the storm drain channel, and installed driven stone column foundations for each building. • The Developer has applied for building permits to construct the Project and is actively requesting pad-only foundation permits for Buildings 5, 6, 7, and 8, located on the southern boundary of the Project Site. Grading pad certifications are currently under review by the Public Works and Engineering Department for the pad-only foundation permits. Vertical wood construction is anticipated to begin in the Spring of 2024. 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 6.40, 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. 111 Honorable City Council 02/21/2024 Regular Meeting Page 3 No. Requirement Status 6.1 Developer shall comply with the Agreement, subsequent project approvals and Mitigation Monitoring Program. Developer has complied with the Mitigation Monitoring Program. 6.2 All land dedicated to the City shall be free and clear of liens and encumbrances. Developer has agreed to comply with the requirement. 6.3 Payment of “Development Fees” of $8,675.00 per residential unit, to be updated annually commencing on January 1, 2025. Developer will pay the Development Fees for each residence prior to issuance of a building permit. 6.4 Payment of the “Traffic Mitigation Fee” of $8,527.00 per residential unit to be adjusted annually commencing January 1, 2019. Developer will pay the Traffic Mitigation Fees for each residence prior to issuance of a building permit. 6.6 Payment of all outstanding processing fees. The Developer’s Account is current and in good standing. 6.7 Payment of a one-time fee in lieu of park dedication “Park Fees” of $8,675.00 for each residential dwelling unit to be adjusted annually commencing January 1, 2025. Payment of a one-time in-lieu fee of “Public Art Fee” of $420,500.00 prior to the issuance of building permits for each of the eight (8) buildings to be adjusted annually commencing January 1, 2025. Developer will pay the one-time Park Fee and Public Art Fee upon the issuance of the residential building permits for the Project. 6.9 The Developer agrees to the densities and concessions provided through this agreement and as noted in Conditions of Approval. Developer agrees to the terms of the agreement. 6.10 The Developer prioritize rental of affordable units to Moorpark residents, to the extent allowed by law. Developer agrees to the terms of the agreement to prioritize Moorpark residents, to the extent allowed by law. 6.11 The Developer shall fund the costs associated with bond issuance and bond financing. Developer agrees to the terms of the agreement. 6.12 Payment of “Air Quality Fee” of $1,230.00 per residential unit to be adjusted annually commencing on January 1, 2019. Developer agrees to the payment of the Air Quality Fee upon the issuance of the first residential building permit for the Project. 6.13 The Developer shall fund the costs associated with the formation of the Assessment District for maintenance of landscaped areas surrounding the Project Site. The Developer has paid the City a deposit in the amount of $50,000 for the preparation of the Assessment District, now referred to as a Community Facility District (CFD). The Developer and City are currently working on the preparation of the CFD. 112 Honorable City Council 02/21/2024 Regular Meeting Page 4 No. Requirement Status 6.14 Payment of all City capital improvement and processing fees. The Developer will pay the one-time City capital improvement development and processing fees, including the Library Facilities Fees, Police Facilities Fees, Fire Protection Fee, Tree and Landscape Fee, drainage, entitlement processing fees, and plan check and permit fees for buildings and public improvements, upon the issuance of building permit. 6.15 Payment of the Los Angeles Avenue Area of Contribution (AOC) Fee. Developer agrees to pay the AOC Fee prior to each building permit for a residential unit. 6.16 Streets to be dedicated to the City shall be designed to City standard and a 50-year life. Developer agrees to build to City standard. 6.17 The developer agreement to pay any fees and payments pursuant to this Agreement without reservation (Fee Protest Waiver). The Developer agrees to pay fees and payments outlined in this section. 6.18 Annual review of the Agreement and requirements of the Mitigation Monitoring and Reporting Program (MMRP). Developer will abide by the section. 6.19 Developer agrees to pay the Art in Public Places Fee (Art Fee) in effect at the time of building permit issuance for each building prior to the issuance of the building permit for that residential building within the Project consistent with City Resolution No. 2005-2408 or any Successor Resolution (1.0 percent of total building valuations excluding land value and off-site improvement costs). Developer will pay the one-time Art in Public Places Fee for each residence prior to issuance of a building permit. 6.20 Developer agrees that any election to acquire property by eminent domain shall be at City's sole discretion, and only after compliance with all legally required procedures including but not limited to a hearing on a proposed resolution of necessity. No off-site property has been identified for the action of eminent domain to date. 6.22 In the event that fee adjustments based on Consumer Price Index (CPI) are no longer able to use the index, an alternative adjustment is available. The CPI is still available and used by all governmental agencies. Bid prices will be used in such cases that CPI is no longer available. 6.23 Developer agrees to convey City Site to City and City agrees to provide utility and construction easements. The City Site was conveyed to the City upon the sale of the property on March 10, 2023. The City subsequently worked with the Developer to prepare easements and use agreements for use of the City Site for both temporary and long term use by the Developer. 6.24 Developer agrees to enclose the flood control channel located on the east side of the Project Site. Developer has removed and replaced the flood control channel in compliance with this requirement and standards of the Ventura County Watershed Protection District. 113 Honorable City Council 02/21/2024 Regular Meeting Page 5 No. Requirement Status 6.25 Developer agrees to provide emergency and secondary access and a pedestrian walkway on the City Site to High Street. The Developer has designed the Project’s secondary access road to connect to High Street. The second access road has not yet been constructed but would satisfy the requirement of the Ventura County Fire Department. A temporary fire access road may be constructed prior to vertical construction. 6.26 Developer shall underground or relocate power poles and pay all associated costs associated with their undergrounding or relocation, as specified. Developer agrees with this requirement but has not yet completed the task. 6.27 Developer agrees to provide at least two (2) parking spaces per residential unit, with at least one (1) space per unit reserved for the unit within a garage or a covered carport. The Developer agrees to provide the required parking and has designated the parking in the required configuration as demonstrated on the Building Permit Site Plan. The parking has not yet been installed on the Project Site. 6.29 Developer agrees to restore the City Site where stockpiled dirt has been placed. The Developer has begun restoration of the City Site, which is currently actively being used for staging, construction of the storm drainage basins, and will serve as the location of the Project’s fire access during construction. Complete restoration of the City Site will be tracked through construction. 6.31 Developer agrees that prior Development Agreement, approved in 2007 pursuant to Ordinance No. 355, was not executed and is therefore no longer in force. Developer agrees to this section and no action is necessary. 6.34 Developer acknowledges the City's ability to modify the development standards and to change the General Plan designation and zoning of the Property upon the termination or expiration of this Agreement. The Developer agrees to the content of this section. 6.35 Pay an annual “Community Services Fee” of $8,000.00, increases annually by 2%, prior to issuance of the first certificate of occupancy of a residential unit for the affordable housing agreement implementation. Developer agrees to this requirement. 6.36 Developer agrees to defend, indemnify and hold the City harmless. Developer agrees to this requirement. 6.37 Developer agrees to fulfill storm water and flood basin requirements noted in Section 7.18. Developer has removed and replaced the storm drain channel on the eastern property line and is working to construct the flood basins on the City Site. 6.38 Developer stipulates those obligations under a “Portfolio Agreement” dated March 31, 2009 have been satisfied. Developer concurs and no further action is required. 6.39 Developer to convey “well site” to the City. Developer granted “well site” to City on February 23, 2017, meeting the obligation of this section. 6.40 City 55-year Residual Receipts Loan for payment of Development, Park and Public Art Fees in the form of a $3,890,500.00 loan. Developer agrees to this requirement. 114 Honorable City Council 02/21/2024 Regular Meeting Page 6 City Compliance with Terms of Agreement The City’s responsibilities are contained in Section 7 of the Development Agreement and include provisions 7.1 through 7.20 summarized below. No. Requirement Status 7.1 Agreement to commit reasonable time and resources on expedited and parallel processing of application for subsequent applications. The City has committed reasonable time and resources to the expedited processing of applications. 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. The City has worked to provide temporary and permanent construction and access easements on the City Site. 7.3 INTENTIONALLY OMITTED No action necessary. 7.4 Agreement to process concurrently, whenever possible, all land use entitlements for the same property (so long as deemed complete). The City has and will actively and concurrently review grading and building permit applications for the Project. 7.5 Agreement that the Park Fee required per Section 6.7 meets obligation for park land dedication provisions of state law and local codes. The City acknowledges that the Park Fee, when paid, will meet the obligation of parkland dedication. 7.7 Agreement to facilitate reimbursement to developer of any costs incurred to be subject to partial reimbursement from other developers. The City acknowledges the agreement that if a reimbursement of costs is posed by the Developer, due to payment by other developer, such reimbursement will be made. Such a reimbursement has not been identified at this time. 7.10 Agreement of City to allow use of City Site for stockpiling construction dirt and materials before and during construction. The City has allowed the City Site to be used for access, storm water drainage, and storage during construction. Easements have been prepared to allow the Developer temporary and permanent use of improvements on the City Site. 7.11 Agreement noting that the Project’s parking shall be set forth in Section 6.27. The City acknowledges that the parking approved as part of the Project is set forth in Section 6.27. 7.12 Agreement that the Art in Public Places Fee noted on Section 6.19 meets the Project’s obligation for Art in Public Places. The City acknowledges that the Art in Public Places Fee, when paid, will meet the obligation of parkland dedication. 7.13 Agreement that the Developer may use City- issued bond financing and shall comply with Section 6.11. The City acknowledges the Developer may use bond financing. 7.15 Agreement, at no cost to the City, that the City shall assist the Developer obtain grants, loans, or other forms of financial assistance. The City has assisted in the Developer obtaining grants and loans for the Project and will continue to do so as needed. 7.18 Agreement to allow the Developer to use the storm water detention basins on the City Site. The City and Developer have worked together to prepare easements for the construction of and future use of the basins. 7.19 Agreement that Developer shall not be required to extend High Street, except as to provide secondary emergency access pursuant to the Ventura County Fire Protection District. The City acknowledges that the Developer has designed a secondary access road to connect to High Street which would not require extension or significant modification to High Street. 115 Honorable City Council 02/21/2024 Regular Meeting Page 7 No. Requirement Status 7.20 a Agreement that prior entitlements associated with Development Agreement No. 2004-03 and Residential Planned Development Permit No. 2004-06 were not inaugurated and have since expired. The City acknowledges that the prior entitlements were not inaugurated and have since expired. 7.20 b Agreement that the Developer shall provide quarterly reports to City regarding rental and compliance with affordable housing agreement. The City acknowledges that the Developer shall provide the City with quarterly reports regarding the rental and compliance of the affordable housing agreement, once the Project is completed. 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 the Developer, has, to date, complied in good faith with all the terms and conditions of the agreement. ENVIRONMENTAL DETERMINATION This action is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project, as defined by Section 15378 of the State CEQA Guidelines. Therefore, no environmental review is required. FISCAL IMPACT None. COUNCIL GOAL COMPLIANCE Goal 1: The Moorpark Quality of Life is reflected in its welcoming small town feel with easy access to essential amenities and services. Moorpark is a safe, prosperous community that strives to offer all levels of housing choices. In receiving the Annual Development Agreement Report for the Project, the City Council acknowledges the importance of increasing housing stock in Moorpark. The Project will construct 200 residential apartments, of which 198 units would be rented to low- and very- low-income households and two would be provided to onsite managers, which supports City Council Goal 1 which aims to provide all levels of housing choices to the community. STAFF RECOMMENDATION 1. Accept the Community Development Director’s report and recommendation that, on the basis of substantial evidence, the Developer has complied in good faith with the terms and conditions of the agreement; and 2. Deem the 2024 annual review process for this project complete. Attachment: Location Map (Vendra Gardens) 116 ATTACHMENT Vendra Garden Project Location Map 117