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HomeMy WebLinkAboutAGENDA REPORT 2024 0417 CCSA REG ITEM 10DCITY OF MOORPARK, CALIFORNIA City Council Meeting of April 17, 2024 ACTION APPROVED STAFF RECOMMENDATION. BY B.Garza. D.Consider Report of Annual Development Agreement Review, Established in Connection with Residential Planned Development No. 2016-01 (Pacific Communities), Located South of Los Angeles Avenue, East of Maureen Lane, and West of Leta Yancy Road, on the Application of MP Group, LLC, Moorpark Homes, LLC, and CLP Investment, LLC. Staff Recommendation: 1) Accept the Community Development Director’s report and recommendation that, on the basis of substantial evidence, MP Group, LLC, Moorpark Homes, LLC, and CLP Investment, LLC 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: Shanna Farley, Principal Planner) Item: 10.D. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Doug Spondello, AICP, Community Development Director BY: Shanna Farley, Principal Planner DATE: 04/17/2024 Regular Meeting SUBJECT: Consider Report of Annual Development Agreement Review, Established in Connection with Residential Planned Development No. 2016-01 (Pacific Communities), Located South of Los Angeles Avenue, East of Maureen Lane, and West of Leta Yancy Road, on the Application of MP Group, LLC, Moorpark Homes, LLC, and CLP Investment, LLC 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 October 4, 2017, the Moorpark City Council adopted Ordinance No. 454, approving a Development Agreement (“DA”) between the City of Moorpark and MP Group, LLC, Moorpark Homes, LLC, and CLP Investment, LLC. The Agreement was approved in connection with Residential Planned Development Permit No. 2016-01, allowing the construction of 284 homes consisting of 153 single family residences and 131 detached condominium residences located on 37.09 acres south of Los Angeles Avenue, east of Maureen Lane, and west of Leta Yancy Road known as Pacific Communities (“Project”). The Agreement remains in full force and effect for 20 years from the operative date of the Agreement, expiring on October 4, 2037. On April 25, 2023, Pacific Community Builders, Inc. (“Applicant”) applied for the First Amendment to the Development Agreement and for amendments to Conditions of Approval associated with Residential Planned Development Permit No. 2016-01. The request includes a request to pay an affordable housing in lieu fee of $4,186,000 instead of constructing 25 affordable housing units available to low-income households. The Item: 10.D. 317 Honorable City Council 04/17/2024 Regular Meeting Page 2 Applicant also requested to phase the tract map over five phases, rather than to record one final tract map. The request also includes numerous amendments to the Development Agreement and Conditions of Approval to address the requested changes for affordable housing, phasing of the tract map and to clarify other terms. Lastly, the request would also extend the term of the entitlement to align with the Development Agreement, to expire on October 4, 2037. This report addresses the existing Development Agreement, prior to any action on the first amendment. DISCUSSION Provisions of the DA require an annual review and report to the City Council on the status of completion of all aspects of the agreement. The Community Development Director has reviewed the submitted information, the project status, and provides the following report. Current Project Status • The Applicant has requested a Development Agreement Amendment and amendments to Conditions of Approval, as outlined below: o To pay an affordable housing in lieu fee of $4,186,000 instead of constructing 25 affordable housing units for low-income households. The request is scheduled to be considered on April 17, 2024, by the City Council. o To phase the Final Maps for the project to occur over five phases. The request is scheduled to be considered on April 17, 2024, by the City Council. o Various clarifications to terms of Development Agreement and Conditions of Approval to address affordable housing in lieu fee, phasing of the final maps, clarifications and updates of terms, and extension of the Projects entitlements to align with the Development Agreement term which expires on October 4, 2037. • The developer is currently working with the following agencies on various plan reviews and approvals: o Ventura County Waterworks District – Water and Sewer Plans o Ventura County Watershed Protection District – Rough Grading Plans for retention basins, Moorpark Storm Drain Plans, Hydrology and Hydraulic Reports (onsite and offsite) o Caltrans – Encroachment Permit for Los Angeles Avenue improvements o Southern California Edison o Southern California Gas o Ventura County Fire Department; and o Ventura County Environmental Health Division • Final Maps for Phase 1 and 4 were last reviewed by the Public Works Department on May 16, 2019. • Grading plans are currently in review by the Public Works Department, with the most recent submittal on June 2, 2023. 318 Honorable City Council 04/17/2024 Regular Meeting Page 3 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 6.26, 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 has complied with the applicable Mitigation Monitoring Program to-date. 6.2 All lands and interests in land shall be dedicated free and clear of liens and encumbrances. Developer has agreed to comply with the requirement. 6.3 Payment of “Development Fees” of $9,200 per residential unit, to be updated annually commencing on January 1, 2019. Developer will pay the Development Fees for each residence prior to issuance of a building permit. 6.4 Payment of the “Citywide Traffic Fee” of $12,500.00 per residential unit to be adjusted annually commencing January 1, 2019. Developer will pay the Citywide Traffic Fee for each residence prior to issuance of a building permit. 6.5 Payment of Los Angeles Avenue Area of Contribution (LAAOC) Fee. Developer will pay the LAAOC Fee for each residence prior to issuance of a building permit. 6.6 MMRP requires the developer to pay a one-time “Air Quality Fee". The Air Quality Fee shall be $1,709.00 per dwelling unit to be adjusted annually commencing January 1, 2019. Developer will pay the Air Quality Fee for each residence prior to issuance of a building permit. 6.7 Payment of a fee in lieu of park dedication “Park Fee” of $10,500.00 for each dwelling unit within the Property, to be adjusted annually commencing January 1, 2019. Developer will pay the Park Fee for each residence prior to issuance of a building permit. 6.8 Payment of a “Community Services Fee” of $2,700.00 per dwelling unit, to be adjusted annually commencing on January 1, 2019. Developer will pay the Community Service Fee for each residence prior to issuance of a building permit. 6.9 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 Art in Public Places Fee for each residence prior to issuance of a building permit. 6.10 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. 6.11 Payment of all outstanding processing fees. The City’s Developer Account is current and in good standing. 319 Honorable City Council 04/17/2024 Regular Meeting Page 4 No. Requirement Status 6.12 File a final map for the Project, and pay the City a $5,000.00 Landscape Maintenance District (LMD) Formation Fee. Developer will work with the City to form a LMD for the maintenance of areas related to the project. 6.13 Provide a total of twenty-five (25) affordable housing units in accordance with the agreement. Pay the direct costs for preparation of the affordable housing agreement up to ten thousand dollars ($10,000.00). This obligation has not yet been triggered. On April 17, 2024, the City Council will consider the request to pay an affordable housing in lieu fee of $4,186,000 instead of the construction of the 25 affordable housing units and make related amendments to the DA and Conditions of Approval. 6.14 Pay the City for the purchase price of $1,500,000 or the appraised fair market value whichever is less, (the "Purchase Price") an approximate 1.6-acre parcel of land. The Developer agrees to the terms of this requirement. 6.15 Annual review of the DA and requirements of the MMRP. Developer is in compliance with all requirements at this time. 6.16 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. 6.17 The street improvements shall meet current design standards. The Developer agrees to the terms of this requirement. 6.18 Prior to the recordation of the final map, the developer will ensure the project meets the requirements of this DA and in the conditions of approval for the project. The Developer agrees to ensure that the final map meets the requirements of the DA and Project conditions of approval prior to recordation. 6.19 Agreement to pay any fees and payments pursuant to this Agreement without reservation. The Developer is in compliance with all requirements at this time. 6.20 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. 6.21 Developer agrees that if a Mello-Roos Community Facilities District (CFD) is formed, the developer will work with the City to form the CFD and pay associated costs. The Developer will provide deposits in case a CFD is to be formed. 6.22 If a traffic signal is warranted, the Developer agrees to fund its installation. The Developer is investigating the potential installation of a traffic signal and other associated roadway improvements. 6.23 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. 6.24 Developer agrees that the approving entitlements and DA may expire or later be amended by the City Council. The Developer is in compliance with all requirements at this time. 320 Honorable City Council 04/17/2024 Regular Meeting Page 5 No. Requirement Status 6.25 Developer agrees to form a Homeowner’s Association (HOA). The Developer agrees to form HOAs for the Project. 6.26 Developer agrees to pay City $1,915,114 to reimburse City for the cost of the improvements to Los Angeles Avenue along the frontage of the Project. Los Angeles Avenue Reimbursement Payment, which shall be paid in $6,744.00, (“Reimbursement Fee”), for each unit. The fee shall be adjusted annually starting January 1, 2019. The Developer agrees to the content of this section. 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 7.11 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 Developer agrees to the content of this section. 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 Developer agrees to the content of this section. 7.3 City agrees that upon receipt of a landowner petition by Developer and Developer's payment of a deposit of fifteen thousand ($15,000.00) and agreement to reimburse all City costs related to processing of the proposed Mello-Roos Community Facilities District (CFD). The City agrees to work with the Developer to reimburse all City costs related to the processing of the proposed Mello-Roos CFD. 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 Park Fee required per Section 6.7 meets obligation for park land dedication provisions of state law and local codes. The Developer agrees to the content of this section. 7.6 City agrees that Developer previously paid the LAAOC fee for eighty-seven (87) residential dwelling units in the amount of $241,135.29 on August 3, 2001 and said payments satisfies the LAAOC fee obligation for the first eighty-seven (87) residential units of the Project. The City acknowledges that the Applicant has previously paid the LAAOC fee for 87 residential units and is not obligated to pay the fee for the first 87 residential units. 7.7 Agreement to facilitate reimbursement to Developer of any costs incurred to be subject to partial reimbursement from other developers. The Developer agrees to the content of this section. 7.8 The City Manager is authorized to sign an Early Grading Agreement on behalf of the City. The Developer agrees to the content of this section. 7.9 Provided Developer shall have duly executed and delivered the Purchase and Sale Agreement to City, City shall enter into the Purchase and Sale Agreement to acquire the City Site. The Developer agrees to the content of this section. 321 Honorable City Council 04/17/2024 Regular Meeting Page 6 No. Requirement Status 7.10 City agrees that the previous Development Agreement No. 1998-02 for the Property, approved by the City Council by Ordinance No. 257 are both rescinded upon the Operative Date of this Agreement. City further agrees that the approval of Residential Planned Development Permit No. 1996- 01 and 1999-04 approved by the City Council have expired due to lack of Project inauguration by Developer. The Developer agrees to the content of this section. 7.11 City agrees for purposes of Subsection 6.13(t) of this Agreement that Cathay Bank is not considered an affiliate of Developer. City at its sole discretion may select lenders, escrow, title and other service providers for the sale of the affordable units in the Project. The Developer agrees to the content of this section. 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 MP Group, LLC, Moorpark Homes, LLC, and CLP Investment, LLC, 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 This action does not support a current strategic directive of the City Council. STAFF RECOMMENDATION 1. Accept the Community Development Director’s report and recommendation that, on the basis of substantial evidence, MP Group, LLC, Moorpark Homes, LLC, and CLP Investment, LLC 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: Project Site Map 322 Honorable City Council 04/17/2024 Regular Meeting Page 7 ATTACHMENT 323