HomeMy WebLinkAboutAGENDA REPORT 1994 1214 CC SPC ITEM 05ATO:
FROM:
DATE:
SUBJECT:
AGENDA REPORT
CITY OF MOORPARK
The Honorable City Council
Steven Kueny, City Manager
ITEM
/i. /! .
December 12, 1994 (CC Special Meeting of 12/14/94)
Consider Request by Special Devices Inc. (SDI) for
Development Incentives and General Plan Amendment
BACKGROUND:
SDI has approached the City to consider their interest in
relocating to the City of Moorpark. Over the past year, SDI has
evaluated a number of sites in California and other states. SDI
has indicated they are now considering only two sites; one in
Moorpark and another in Arizona. Enclosed for your reference is
a site plan. They expect to make a decision by December 31,
1994. They would be relocating from a Los Angeles County
location.
The Moorpark site is an approximate 280 acre parcel owned by Simi
Moorpark Properties (Carlsberg) located generally east of the
terminus of New Los Angeles Avenue. The land use and zoning is
open space (OS -40 ac.). Under this designation, the property
could be developed for five single family residences. All but
about 53 ares of the site is located within City limits. Only
about 45 acres is proposed for development of an initial 150,000
sq. ft. facility. The balance of the site would remain as open
space.
SDI assembles an explosive device called an initiator, which is
used in automobile airbags and other applications. It is not a
sales tax producing business. They propose to relocate with
about 700 jobs in late 1996. Projections show growth to 1,000
jobs by the Year 2000.
SDI reports a significant difference in development costs between
the two sites. The difference is estimated by SDI to be about
$10,000,000. SDI has requested the potentially benefitted public
agencies to prepare a package of incentives such as fee waivers
and reductions to help offset the higher development cost for the
Moorpark site.
The Honorable City Council
Re: Special Devices Inc. (SDI)
Page 2
December 12, 1994 (CC Special Meeting of 12/14/94)
DISCUSSION:
Representatives of the City, County of Ventura, and various
agencies of the State of California have recently met with SDI.
The public agencies subsequently met without SDI to determine if
an incentive package can be developed. The consensus is that
while certain incentives can be offered, they would be
significantly less than the requested $10,000,000. The public
agency representatives have agreed to respond to SDI with a
package of incentives by December 21.
Historically, the City has little experience with providing
incentives. In two recent cases, the City provided: 1) deferral
of $26,000 of traffic fees at eight percent interest for the
AM /PM Minimart; and 2) waiver of Arts in Public Places and
landscape fees and negotiated a. fee amount ($.50 cents /sq. ft.)
for the Citywide traffic covenant for Mail Marketing.
The proposed SDI project will require a General Plan Amendment
(GPA), Zone Change, Subdivision, Planned Development Permit, and
EIR. Evaluation of the subject site was not done as part of the
1992 General Plan update. In addition to financial incentives,
SDI has requested a fast track processing. With an EIR required,
an approximate nine -month process is a best case scenario. This
assumes no unanticipated issues and cooperation of all involved
public agencies. As of this date, a traffic study has not been
performed. While they will propose reconfiguration of the New
Los Angeles Avenue /SR 23 ramp, traffic impacts and mitigation
measures have not been determined.
In summary, project impacts are not known, entitlement actions
cannot be guaranteed, and actual development costs are only
preliminary estimates. If the City Council desires to consider
incentives, I recommend that they be incorporated into a
Memorandum of Understanding or similar document so that any
contingencies and limitations can be memorialized. Points to
include in the MOU are:
1. Contingent on City Council approval of all necessary land
use entitlements and certification of Final EIR.
2. If the project is approved and certain incentives provided,
SDI must guarantee that a specified number of jobs are
The Honorable City Council
Re: Special Devices Inc. (SDI)
Page 3
December 12, 1994 (CC Special Meeting of 12/14/94)
provided and maintained for specified periods, or certain
penalties would be applied.
3. Regardless of any incentives (fee caps, waivers, or
reductions, etc.) impacts must: be mitigated.
4. Contingent on no degradation of LOS at any City intersection
(or causing any intersection to drop below LOS C).
5. Waive Arts in Public Places fee contingent on acceptable on-
site features.
6. Waive landscape fee in consideration of significant
permanent open space.
7. Negotiate contribution to Citywide Traffic Mitigation fee in
lieu of conditioning future payment based on standard
condition language.
8. Negotiate contribution to the Los Angeles Avenue Area of
Contribution based on actual size and impact of development,
not acreage.
9. Deferrals with fixed simple interest terms for certain fees
such as air quality. I do not recommend any adjustments to
the required processing fees or other typical development
fees, or property tax rebates because such action would
require a general fund subsidy or pass unfunded or
underfunded costs to other future development projects.
10. City to support SDI efforts with the State, including acting
as recipient of State loans (with SDI guaranteeing
repayment).
11. Authorize City Manager to sign all contracts for planning,
engineering, and other professional services funded by SDI
without prior Council approval and to take other appropriate
and legal means to expedite the processing.
STAFF RECOMMENDATION:
Approve request to process General Plan Amendment based on the
specific proposed use. Consider potential incentives and, if
The Honorable City Council
Re: Special Devices Inc. (SDI)
Page 4
December 12, 1994 (CC Special Meeting of 12/14/94)
approved, direct staff to proceed with MOU as outlined in this
report.
SK:db
Enclosure: Site Plan
cc: Richard Hare, Deputy City Manager
Jim Aguilera, Director of Community Development
Steve Hayes, Redevelopment /Economic Development Manager
c: \docs \wpwin \ccagenda \sdi12.12
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