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HomeMy WebLinkAboutAGENDA REPORT 2015 0520 CCSA REG ITEM 10F ITEM 10.F. CITY OF MOORPARK,CALIFORNIA City Council Meeting o► 45-ao ao/C ACTION: Cr fin" .p.,, e 4.04.41-2, BY: tri, MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Joseph Fiss, Planning Manager DATE: May 4, 2015 (CC Meeting of 5/20/ 15) SUBJECT: Consider 2014 Report of Annual Development Agreement Review, Established in Connection with Warehouse Discount Center at White Sage Road and the SR-23 Freeway (NLA 118, LLC) BACKGROUND/DISCUSSION 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, 2005, the Moorpark City Council adopted Ordinance No. 322 (effective November 18, 2005), approving a Development Agreement between the City of Moorpark and NLA 118, LLP, in connection with the development of the Warehouse Discount Center (Commercial Planned Development No. 2004-03). The agreement shall remain in full force and effect for a term of twenty (20) years commencing on its operative date or until twelve (12) years after the initial certificate of occupancy has been issued on the Warehouse Discount Center building, whichever occurs last. 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 corporation has submitted the necessary application form and fee/deposit for this annual review. The last annual review was presented to the City Council on April 6, 2011. Subsequent to that, the applicant was notified several times of the requirement to submit a completed Development Agreement annual review application, filing fee, and narrative. At that time, the applicant had indicated that the failure to submit the annual review application was due to financial difficulties and an attempt to refinance the building. On May 15, 2013 the applicant was found in breach of the terms of the Development Agreement 119 Honorable City Council May 20, 2015 Page 2 due to the failure to submit the application. The application was finally submitted on July 10, 2014. The Community Development Director has reviewed the submitted information and the project status and provides the following report. Current Project Status The 99,772 square foot Warehouse Discount Center building has been open for business since May 15, 2007. There is a second building on the site, which is 17,484 square feet and is partially occupied by Ortho Mattress. Developer Compliance with Terms of Agreement The developer's responsibilities are included in Section 6 of the Development Agreement and include sixteen (16) specific requirements, as summarized below. Compliance with the terms and conditions of the Development Agreement has and will occur at various stages of the development process. Action by the developer and other clarifying information has been noted. NO. REQUIREMENT STATUS 1. Developer shall comply with this Agreement, Project Developer is in compliance with all Approvals, all subsequent approvals the MMRP of requirements at this time, except as noted the previously certified SR and any subsequent or below. supplemental environmental actions. 2. All lands and interests in land shall be dedicated free An easement for a City "Welcome" sign and clear of liens and encumbrances. was accepted by the City Council on August 20, 2008. 3. Payment of "Development Fee" of Forty Thousand This fee is adjusted annually (until paid) Twenty-Eight Dollars ($40,028.00) per gross acre of using the Consumer Price Index (CPI) in commercial or institutional land. accordance with the agreement. This fee was paid on May 11, 2006, at time of issuance of building permits. 4. Payment of "Citywide Traffic Fee" of Twenty-Two This fee is adjusted annually (until paid) Thousand, Eight Hundred Thirty-Eight Dollars using the State Highway Bid Price Index in ($22,838.00) per acre of commercial or institutional accordance with the agreement. This fee land. was paid on May 11, 2006, at time of issuance of building permits. 5. Payment of all outstanding processing costs. This is an ongoing requirement. At this time the developer is current with all processing costs, except for deposits and narratives required for the Development Agreement annual reviews in 2012 and 2013. Since no annual reports were submitted in these years, City staff did not incur expenses related to the annual review. 6. Payment of a fee in lieu of park dedication "Park This fee is adjusted annually (until paid) Fee" of ($.50) per square foot of each building used using the Consumer Price Index (CPI) in for commercial or institutional purposes. accordance with the agreement. This fee was paid on May 11, 2006, at time of issuance of building permits. 120 S\Community DevelopmentMDMINWgreements\D A\2004-02 Warehouse Disc CenteMgenda Rpts\cc 150415.docx Honorable City Council May 20, 2015 Page 3 NO. REQUIREMENT STATUS 7. Landscape and maintain those areas under the A landscape plan was submitted and freeway bridge along the north and south sides of approved. A Three-Party Maintenance Los Angeles Avenue; the area on the north side of Agreement was executed on October 12, White Sage Road along the entire reach of the 2006 with the landscaping and irrigation Caltrans right-of-way, and the Caltrans right-of-way installed and inspected on April 10, 2007. along the southern boundary of the site. 8. Warrant total gross taxable sales in the first year of The "first year" of operation commenced operation to be Seven Million Dollars 12 months after the initial occupancy ($7,000,000.00), Eight Million Dollars which occurred on April 27, 2007. The ($8,000,000.00) in the second year, Nine Million City has confirmed that the applicant has Dollars ($9,000,000.00) in the third year and Ten met the requirement for gross taxable Million Dollars ($10,000,000.00) in the fourth through sales during the first seven years of tenth years, commencing twelve months after initial operation. occupancy. Should annual gross taxable sales not reach annual amount for any year in first ten years, Developer shall pay the City the difference in total gross taxable sales times 0.0075 for each year the total gross sales are not met. Credit for gross taxable sale which exceed the established amount shall be credited to offset a shortfall in any subsequent year. 9. Pay Air Quality fee in the amount of Sixty-Six This fee was adjusted for the Consumer Thousand Dollars ($66,000.00) in satisfaction of Price Index (CPI) in accordance with the Transportation Demand Management fund, or at the agreement, and $71,207.00 was paid on City's sole description, provide equipment, vehicles, April 26, 2007. improvements or other items for equivalent credit toward the fee. 10. Provide easement for location and maintenance of a This fee has been paid. An easement for City Welcome Sign and pay Twenty-Five Thousand a City "Welcome" sign was accepted by Dollars $25,000.00 for construction and erection of the City Council on August 20, 2008. the sign. 11. Agreement to cast affirmative ballots for formation of A "back-up" assessment district for one or more assessment districts for maintenance of landscaping maintenance was approved parkway and median landscaping and street lighting, on August 20, 2008 by Resolution No. including but not limited to all water and electricity 2008-2738. 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. 12. Payment of all City capital improvement and Developer is in compliance with all processing fees. requirements at this time. All fees were paid to Building and Safety at the time of the Building Permit Issuance. 13. Payment of Los Angeles Avenue Area of Fees were paid prior to issuance of the Contribution (AOC) Fee. Building Permit This fee was paid on May 11, 2006, at time of issuance of building permits. 14. Agreement to pay any fees and payments pursuant Developer is in compliance with all to this Agreement without reservation. requirements at this time, except for the annual review deposit in years 2012 and 2013. 121 S:\Community DevelopmenMDMIMAgreements\D A\2004-02 Warehouse Disc Center\Agenda Rpts\cc 150415.docx Honorable City Council May 20, 2015 Page 4 NO. REQUIREMENT STATUS 15. Agreement to comply with requirements for annual With the exception of 2012 and 2013, the review of the Agreement including evaluation of applicant has submitted annual review Mitigation Monitoring Program. reports and deposits. On February 27, 2012, staff reminded the developer of this requirement and received a response that the developer was in negotiations with the lender. On May 15, 2013, and again on December 13, 2013, staff notified the developer that the lack of annual reports was a breach of the Development Agreement. On July 10, 2014, the developer filed an annual review report and deposit. 16. Agreement that any property to be acquired by There has been no need to acquire eminent domain shall be at City's discretion and property as part of this project. after compliance With all legal requirements. All requirements of the Development Agreement will be 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 included in Section 7 of the agreement and include five (5) specific provisions, as summarized below. NO. REQUIREMENT STATUS 1. Agreement to commit reasonable time and To date, City has complied with any such resources on expedited and parallel processing of requests. application for subsequent applications. 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 received. allow construction of required public improvements. 3. Authorization for the City Manager to sign an Grading was completed prior to the 2009 early grading permit. annual review. 4. Agreement to process concurrently, whenever To date, City has complied. possible, all land use entitlements for the same property(so long as deemed complete). 5. Agreement to facilitate reimbursement to To date, no such request has been developer of any costs incurred that may be received. subject to partial reimbursement from other developers. 122 S:\Community Development MDMINWgreements\D A\2004-02 Warehouse Disc Center\Agenda Rpts\cc 150415.docx Honorable City Council May 20, 2015 Page 5 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 NLA 118, LLC has, to date, complied in good faith with the terms and conditions of the agreement, except as noted above with respect to the annual reports for 2012 and 2013. STAFF RECOMMENDATION 1. Accept the Community Development Director's report and recommendation, on the basis of substantial evidence, that NLA 118, LLC has complied in good faith with the terms and conditions of the agreement, except as noted in the report. 2. Deem the annual review process complete. ATTACHMENT 1. Location Map 123 S:\Community DevelopmenhADMIN\Agreements\D A\2004-02 Warehouse Disc Centertgenda Rots\cc 150415.docx Fl en 15 1° c sLA zcom irg 0 II Q ._' aNN E To o xw 0 1 U 20 v r N ' .•.-"..-..q1�S- - • 4) / q 1 - g i. o 1' ' ? 2 0 U C I ",� I Qst ` 1 - 4 E. 4 I 'I Ti l - i I m � �ti�.vt l�n� . 4�'., ',\ 'lo I- oiPa ^ II l \� Y t}��111 j ,,. j iii 2 ozi yr z'. , r '�1 r `I' it t q vas - �•.��tt �fi i,- w rho Q � 1 Z N O a co 0 2 VAI tlV / v � © , o LO m r m ,`1 0 al 44 ��`' ti "- :til ...�_ , to 0 ga [ ,'1 i,. !Yt v i -••Y_ O. 0 it fItl 1 ; °' v a II , I a) C of O 1 I m N a) az al _ i l4 O j I ! II — —' 1� Ll v ft 76 ft ✓ { - Nco 2 -'y• . A ---1 1 is eq,e mn® i 'I 1 �� co i- t 1 ED E7 �I 4 H °' -. ji II ` t lJ r i 1 ILII ® �'i - 4 0 E O TO `H' j II i1 ' r E -�\ -+ i1-1 til I IIMO nil I - bey !-,.f I1 11 •11 n 'c1 rt�n ® I— o. CC ATTACHMENT NO. 1 124