HomeMy WebLinkAboutAGENDA REPORT 2014 1105 CCSA REG ITEM 10F ITEM 10.F.
errY OF MOORPARK,CALIFORNi
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MOORPARK CITY COUNCIL ACTION: , ,,
AGENDA REPORT
TO: Honorable City Council g• • 41•••••••••,,,M _ _
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FROM: David A. Bobardt, Community Development Director
Prepared By: Joseph Fiss, Principal Planner (7,/
DATE: October 22, 2014 (CC Meeting of 11/05/2014)
SUBJECT: Consider 1) Report of Annual Development Agreement Review
Established in Connection with Moorpark West Studios; and 2) A
One-Year Extension for Industrial Planned Development No. 2009-01
and Conditional Use Permit No, 2009-01, Located on 44 Acres on the
North Side of Los Angeles Avenue, West of Gabbert Road, on the
Application of Los Angeles Avenue LLC, PEGH Investments, LLC,
The Kevin Newburg Trust, and The Richard S. Held Enterprises
Retirement Trust
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 19, 2011, the Moorpark City Council adopted Ordinance No. 409 (effective
November 18, 2011) approving a Development Agreement between the City of
Moorpark and Los Angeles Avenue, LLC; PEGH Investments, LLC; The Kevin Newburg
Trust; and The Richard S. Held Enterprises Retirement Trust. The Agreement was
approved in connection with the Moorpark West Studios, a proposal to allow a 559,450
square-foot motion picture studio complex with 12 soundstages, three office buildings,
18 studio support buildings, and surface parking on 43.04 acres located on the north
side of Los Angeles Avenue, west of Gabbert Road as shown in Attachment 1. The
Agreement remains in full force and effect for 10 years from the operative date of the
Agreement November 18, 2011, ending November 18, 2021.
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November 5, 2014
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Provisions of the Agreement require an annual review and report to the City Council on
the status of completion of all aspects of the Agreement. The developer has submitted
the necessary application form, related materials, and fee/deposit for the annual review.
The Community Development Director has reviewed the submitted information,
including the project status and provides the following report.
DISCUSSION
Current Project Status
The project status is addressed in the attached narrative (CC Attachment 2).
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 6.29, 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 this Agreement, the Developer is in compliance with all
Project Approvals, all Subsequent Approvals for which requirements at this time.
it was the applicant or a successor in interest to the
applicant and the MMRP of the MND and any
subsequent or supplemental environmental actions.
6.2 All lands and interests in land dedicated to City shall No land has been dedicated to the City
be free and clear of liens and encumbrances other at this point in time.
than easements or restrictions that do not preclude or
interfere with use of the land or interest for its
intended purpose, as reasonably determined by City.
6.3 Payment of "Development Fees" of Forty-Four These fees will be adjusted annually
Thousand Three Hundred Twenty-Five Dollars (until paid) using the Consumer Price
($44,325.00) per gross acre of industrial land. Index (CPI) in accordance with the
Agreement. Fees must be paid prior to
issuance of Zoning Clearance for
Building Permit. No Building Permits
have been issued.
6.4 Payment of "Citywide Traffic Fees" of Twenty-Nine These fees will be adjusted annually
Thousand, Seven-Hundred Dollars ($29,700.00) per (until paid) using the State Highway Bid
gross acre of industrial land. Price Index in accordance with the
Agreement. Fees must be paid prior to
issuance of Zoning Clearance for
Building Permit. No Building Permits
have been issued.
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6.5 Prior to the issuance of the building permit for each
building, Developer shall pay an Air Quality Fee of
$0.63 for each square-foot of office building area and
$0.28 for each square foot of buildinq area.
6.6 (This section is intentionally left blank.)
6.7 Prior to the issuance of the building permit for each
building within the boundaries of the Property,
Developer shall pay a Park Fee of $0.50 for each
square-foot of building area.
6.8 (This section is intentionally left blank.)
6.9 (This section is intentionally left blank.)
6.10 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 owner's
association(s) to provide landscape, street lighting
and park (if necessary) open space land, trails
drainage facilities maintenance and compliance with
NPDES requirements.
6.11 Agreement to pay any fees and payments pursuant to
this Agreement without reservation.
6.12 Payment of Los Angeles Avenue Area of Contribution
(AOC) Fee.
6.13 Provide for a 50-year life, as determined by the City
Engineer, for all public street improvements.
6.14 Agreement to pay any fees and payments pursuant to
this Agreement without reservation.
6.15 Agreement to comply with requirements for annual
review of the Agreement including evaluation of
Mitigation Monitoring Program. Deposit $25,000.00
for the cost of annual reviews for the life of this
Aqreement.
6.16 (This section is intentionally left blank.)
6.17 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.
Fees must be paid prior to issuance of
Zoning Clearance for Building Permit.
No Building Permits have been issued.
Fees must be paid prior to issuance of
Zoning Clearance for Building Permit.
No Building Permits have been issued.
To date no assessment district has
been required.
Developer is in compliance with all
requirements at this time.
Fees must be paid prior to issuance of
Zoning Clearance for Building Permit.
No Buildina Permits have been issued.
To be part of the Street Improvement
Plans to be reviewed and approved by
the City Engineer.
Developer is in compliance with all
requirements at this time.
To date, the applicant has complied
with review requests and Mitigation
Monitoring Program requirements.
Payment of $25,000.00 deposit has
been made.
No request for property to be acquired
by eminent domain has been submitted
to date.
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6.18
6.19
6.20
6.21
6.22
6.23
6.24
Prior to recordation of this Agreement, Developer shall
pay all outstanding City processing costs related to
preparation of this Agreement, Project Approvals, and
MND, should the deposit fund for this project have a
neqative balance.
In the event any of the "referenced Index" or "CPI"
referred to in any portion of Section 6 above, are
discontinued or revised, such successor index with
which the "CPI" and or "referenced Index" are
replaced shall be used in order to obtain substantially
the same result as would otherwise have been
obtained if either or both the "CPI" and "referenced
Index" had not been discontinued or revised.
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. Developer agrees to participate in a community
facilities district or other financing mechanism for the
construction of North Hills Parkway or be allowed to
pay $2,000,000.00. Commencing on January 1,
2013, and annually thereafter, the contribution amount
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
precedinq year ("annual indexinq").
Developer to pay for all costs of installation and to
install traffic signals at the intersection of Los Angeles
Avenue and North Hills Parkway and the intersection
of the Property entrance and North Hills Parkway.
If City, within 5 years of the issuance of the first final
building permit to allow occupancy of a building on the
site, approves a funding mechanism for a minimum 8
foot high soundwall for the residential properties on
the south side of Los Angeles Avenue, Developer
agrees to pay City $350,000 toward the soundwall.
Developer to construct and maintain a private road
perpendicular to North Hills Parkway and to connect
said road to the existing access easement for the
adjacent properties to the west. Developer shall also
extend said road approximately 369 feet to the west
across the 6.0 acre property immediately to the west
to line up with the driveway in the southern parking lot
of the property further west.
Developer to acquire all necessary property and
Caltrans and City permits, and construct
improvements in Los Angeles Avenue for the project
frontaqe.
Developer is in compliance with all
requirements at this time. Fund review
ongoing.
"Referenced Index" and "CPI" continue
in use and have not been replaced with
a successor index.
Dedication and participation in a funding
mechanism or payment must be
completed prior to issuance of a Zoning
Clearance for the first Building Permit.
No Building Permits have been issued.
The developer is currently working with
Caltrans to confirm configuration of the
dedication area for the LA Avenue
wideninq and improvements.
No Building Permits have been issued.
No Building Permits have been issued.
The developer is currently working with
Caltrans to confirm configuration of the
dedication area for the LA Avenue
widening and improvements.
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6.25 Developer agrees to execute a tri-party maintenance
agreement with Caltrans and the City of Moorpark to
guarantee maintenance of the landscaping along both
the north and south sides of Los Angeles Avenue
alonq the property frontaqe.
6.26 Provide a location and $25,000.00 for a City Welcome
Sign on the Project site prior to occupancy of the first
buildinq.
City Compliance with Terms of Agreement
The developer is currently working with
Caltrans to confirm configuration of the
dedication area for the LA Avenue
widening and improvements.
To date, no building permits have been
issued.
The City's responsibilities are contained in Section 7 of the agreement and include
provisions (a) through (i), summarized below.
No. Requirement Status
7.1 Agreement to commit reasonable time and resources To date, City has complied with any such
on expedited and parallel processing of application for requests.
subsequent applications.
7.2 If requested, at the developer's cost, proceed to To date, no such request has been
acquire easements or fee title to land in order to allow received.
construction of required public improvements.
7.3 Authorization for the City Manager to sign an early To date, no such request has been
grading permit. received.
7.4 Agreement to process concurrently, whenever To date, City has complied.
possible, all land use entitlements for the same
property (so lonq as deemed complete).
7.5 Agreement that Park Fee required per Section 6. 7 To date, City has complied.
meets obligation for park land dedication provisions of
state law and local codes.
7.6 City agrees that credit will be given toward the Art in To date no artwork has been proposed.
Public Places Fee required pursuant to subsection
6.11 by the integration of artwork into the wall required
immediately south of the flood control channel along
the Los Angeles Avenue frontage, if said artwork is
approved by Caltrans and by the City Council.
7.7 Development fees based on project area shall be To date, no payment has been made.
calculated using the area for private use after
dedication of public rights of way, the private road
providing access from North Hills Parkway to the
property to the west, and the exclusive easements to
the Watershed Protection District for flood control
purposes. Unless otherwise specified, development
fees based on building floor area shall be calculated
using gross floor area as defined by the Zoning
Ordinance.
7.8 Agreement to facilitate reimbursement to developer of To date, no such request has been
any costs incurred that may be subject to partial received.
reimbursement from other developers. -
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No.
7.9
7.10
7.11
Requirement Status
With the acceptance of the $25,000 City Welcome To date, no payment has been made.
Sign contribution addressed in Section 6.26 City
agrees to be responsible for any costs associated with
construction and maintenance of Sign.
City agrees, to facilitate discussions with property To date, no such request has been
owners to the west (regarding participation in a received.
maintenance agreement of the road from North Hills
Parkway parallel with Los Angeles Avenue to serve
properties to the west required per Section 6.23 of this
Agreement. City further agrees to consider accepting
said road as a public street should Developer be
unable to reach an agreement with neighboring
property owners. To the extent provided by law, the
City would provide for reimbursement for the
extension of said road beyond the western property
line.
City agrees to give Developer credit toward the To date, no payment has been made.
payment of the Los Angeles Avenue Area of
Contribution Fee as noted in Section 6.12 for the cost
of certain improvements in Los Angeles Avenue and
for the signalization improvements at the Los Angeles
Avenue/North Hills Parkway intersection. Developer
will not receive credit toward the payment of the Los
Angeles Area of Contribution fee for the cost of
parkway and sidewalk improvements adjacent to the
southerly property line.
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 Los Angeles Avenue, LLC; PEGH Investments, LLC;
The Kevin Newburg Trust; and The Richard S. Held Enterprises Retirement Trust has,
to date, complied in good faith with the terms and conditions of the agreement.
Consider a One-Year Extension for Industrial Planned Development No. 2009-01
and Conditional Use Permit No. 2009-01
On October 5, 2011, the City Council adopted Resolution 2011-3063 approving
Industrial Planned Development No. 2009-01, and Conditional Use Permit No. 2009-01
for the Moorpark West Studios project. These approvals took effect upon the effective
date of the Development Agreement for the project. The Development Agreement,
which was approved by Ordinance No. 409 on October 19, 2011, took effect thirty days
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later on November 18, 2011. The Development Agreement addresses the term of
subsequent approvals as follows:
'Term of Subsequent Approvals. The term of any Subsequent Approval, except a
tentative subdivision map or subdivision improvement or other agreements relating to
the Project, shall be one year; provided that the term may be extended by the decision
maker for four (4) additional one (1) year periods upon application of the Developer
holding the Subsequent Approval filed with City's Community Development Department
prior to the expiration of that Approval. Each such Subsequent Approval shall be
deemed inaugurated, and no extension shall be necessary, if a building permit was
issued and the foundation received final inspection by City's Building Inspector prior to
the expiration of that Approval. The term of any tentative subdivision map, should one
be approved by City during the term of this Agreement, shall be as set forth under the
Subdivision Map Act, Government Code Section 66410 et seq. and Title 16
Subdivisions, of the Moorpark Municipal Code." On October 2, 2013, the City Council
agreed to extend the Industrial Planned Development Permit an additional year through
November 18, 2014.
In the past year, the developer obtained the necessary permits from the Watershed
Protection District and completed work to box the existing channels for road crossings.
The applicant has completed a lot line adjustment to acquire 15 feet of the property to
the west, as was shown on the approved plans. Additionally, the applicant is continuing
to work on obtaining the properties south of Los Angeles Avenue for the street
widening. Once these properties are obtained, City staff will prepare an item for Council
consideration to annex the property for the road widening.
The applicant has indicated that they are currently reassessing the studio market to
understand what changes are taking place in the industry. They have continued to work
with their Traffic Engineer and Caltrans to complete the plans for the Los Angeles
Avenue widening so the annexation for the widening can be completed.
STAFF RECOMMENDATION
1. Accept the Community Development Director's report and recommendation that,
on the basis of substantial evidence, Los Angeles Avenue, LLC; PEGH
Investments, LLC; The Kevin Newburg Trust; and The Richard S. Held
Enterprises Retirement Trust have complied in good faith with the terms and
conditions of the Development Agreement; and
2. Deem the annual review process for the Development Agreement complete; and
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3. Direct the Community Development Director to issue a letter granting a third one-
year extension of Industrial Planned Development No. 2009-01 and Conditional
Use Permit No. 2009-01 (Moorpark West Studios) to November 18, 2015.
ATIACHMENTS:
1. Site Plan
2. Narrative from Triliad Development, Inc.
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CC ATTACHMENT 1
123
Development Agreement Application 2014 Annual Review
For Moorpark West Studio Project
October 1, 2014
We are requesting your approval of the MWS Annual Development Agreement
Review Application.
I came before you last year to inform you that the Moorpark West Studio project
would be on hold while Haas Automation pursued their negotiations with the
California Franchise Tax Board regarding a R&D credit dispute. That negotiation
has recently completed.
However, in the interim, and prior to completion of the negotiations with the
California Franchise Tax Board, Mr. Haas submitted an application to participate
in Formula One Racing and the application was accepted early this year. Formula
One Racing will be a significant branding and marketing vehicle targeted directly
to the international arena for the Haas Automation machines which is the
company's core business. In order to build on the growth and success of his core
company Haas Automation, Inc., Formula One is an important part of the overall
marketing strategy for the company's future growth.
What this means for MWS is that resources are being targeted to
1. Haas Formula One
2. Haas Automation, Inc. to increase employment in the Ventura County and
to grow the company's revenues.
3. All other Haas ventures.
We are currently reassessing the studio market to understand what changes are
taking place in the industry. We have continued to work with RBF our Traffic
Engineer and Caltrans to complete the plans for the LA Avenue widening so we
can complete the annexation, etc. We are also exploring other opportunities to
move this project forward.
CC ATTACHMENT 2 124