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Home My WebLink AboutAGENDA REPORT 2011 0406 CC REG ITEM 10J ITEM 10.J. ,,ity council Meeting T1_ - 3.CTIC.)N:. - �- MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: David A. Bobardt, Community Development Director By: David Lasher, Management Analyst l�t� DATE: March 7, 2011 (CC Meeting of 4/6/2011) SUBJECT: Consider 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 remains in full force and effect for twenty (20) years from the operative date of the agreement. 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. This is the fifth annual review of the Development Agreement with NLA 118. The corporation has submitted the necessary application form and fee/deposit for this annual review. The Community Development Director has reviewed the submitted information and the project status and provides the following report. 388 Honorable City Council April 6, 2011 Page 2 Current Protect 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 and a recently established furniture outlet. The furniture outlet is owned and operated by the Warehouse Discount Center. 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, Developer is in compliance with all Project Approvals, all Subsequent Approvals the requirements at this time. MMRP of the previously certified EIR and any subsequent or supplemental environmental actions. 2. All lands and interests in land shall be dedicated An easement for a City"Welcome" sign was free and clear of liens and encumbrances. accepted by the City Council on August 20, 2008. 3. Payment of "Development Fee" of Forty This fee is adjusted annually(until paid)using Thousand Twenty-Eight Dollars($40,028.00)per the Consumer Price Index (CPI) in gross acre of 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)using Thousand, Eight Hundred Thirty-Eight Dollars the State Highway Bid Price Index in ($22,838.00) per acre of commercial or accordance with the agreement. This fee was institutional land. paid on May 11, 2006, at time of issuance of building permits. 5. Payment of all outstanding processing costs. This is an ongoing requirement. At this time the developer is current with all processing costs, including submittal of the Annual Review Application and deposit for Development Agreement-Annual Review. 6. Payment of a fee in lieu of park dedication "Park This fee is adjusted annually(until paid)using Fee" of ($.50) per square foot of each building the Consumer Price Index (CPI) in used for commercial or institutional purposes. accordance with the agreement.This fee was paid on May 11, 2006, at time of issuance of building permits. 7. Provide installation and permanent maintenance A landscape plan was submitted and of landscaping under the freeway bridge along the approved. A Three-Party Maintenance north and south sides of Los Angeles Avenue Agreement was executed on October 12, within the Caltrans right-of-way, including fencing 2006 with the landscaping and irrigation improvements if approved by Caltrans. installed and inspected on April 10,2007. The applicant is in compliance with this requirement. 389 SACommunity DevelopmentWDMIMAGMTS\D A\2004-02 Warehouse Disc CenterWgenda Rpts\cc 110406.doc Honorable City Council April 6, 2011 Page 3 NO. REQUIREMENT STATUS 8. Warrant total gross taxable sales in the first year The "first year" of operation commenced 12 of operation to be Seven Million Dollars months after the initial occupancy which ($7,000,000.00), Eight Million Dollars occurred on April 27, 2007. Accordingly, ($8,000,000.00) in the second year, Nine Million under the terms of the Development Dollars ($9,000,000.00) in the third year and Ten Agreement, the second year of operation was Million Dollars ($10,000,000.00) in the fourth the period of May 1, 2009-April 30, 2010. through tenth years, commencing twelve months Warehouse Discount Center has provided after initial occupancy. documentation demonstrating that it met the Should annual gross taxable sales not reach requirement for gross taxable sales during the annual amount for any year in first ten years, second year of operation. 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 Price Thousand Dollars ($66,000.00) in satisfaction of Index (CPI) in accordance with the Transportation Demand Management Fund,or at agreement,and$71,207.00 was paid on April the City's sole description, provide equipment, 26, 2007. vehicles, improvements or other items for equivalent credit toward the fee. 10. Provide easement for location and maintenance This fee has been paid. An easement for a of a City Welcome Sign and pay Twenty Five City"Welcome"sign was accepted by the City Thousand Dollars $25,000.00 for construction Council on August 20, 2008. and erection of the sign. 11. Agreement to cast affirmative ballots for A "back-up" assessment district for formation of one or more assessment districts for landscaping maintenance was approved on maintenance of parkway and median landscaping August 20, 2008 by Resolution No. 2008- and street lighting, including but not limited to all 2738. 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. 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 Developer is in compliance with all pursuant to this Agreement without reservation. requirements at this time. 15. Agreement to comply with requirements for To date, the applicant has complied with annual review of the Agreement including review requests and Mitigation Monitoring evaluation of Mitigation Monitoring Program. Program requirements and has submitted the application and deposit for annual review. 16. Agreement that any property to be acquired by There has been no need to acquire property eminent domain shall be at City's discretion and as part of this project. after compliance with all legal requirements. 390 SACommunity Development\ADMINWGMTS\D A\2004-02 Warehouse Disc CenterlAgenda Rpts\cc 110406.doc Honorable City Council April 6, 2011 Page 4 Section 6.8 of the Development Agreement stipulates that the applicant must reach a specific amount in gross taxable sales in a given year of operation. In the first year of operation this figure was $7,000,000. In the second year of operation, this amount was $8,000,000. The Development Agreement defines the "first year of operation" as commencing one yearafterthe date of the initial occupation. As such, the period currently under review with respect to this annual review is the third year the business has been open, but the second year of operation, as defined by the Development Agreement. In conjunction with this annual review, staff reviewed documentation from Mark Nathanson, the accountant for the Warehouse Discount Center. This documentation, while confidential, showed that the business generated gross taxable sales from May 1, 2009- April 30, 2010 consistent with the requirement. Independent of this documentation, staff contacted the HdL Companies which provided documentation associated with the State Board of Equalization that verified this information. 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 received. acquire easements or fee title to land in order to allow construction of required public improvements. 3. Authorization for the City Manager to sign an early Grading was completed prior to the 2009 grading permit. annual review. 4. Agreement to process concurrently, whenever To date, City has complied. possible, all land use entitlements for the same roe so long as deemed complete). 5. Agreement to facilitate reimbursement to developer To date, no such request has been received. of any costs incurred that may be subject to partial reimbursement from other developers. 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. 391 SACommunity DevelopmentWDMIWAGMTS0 AQ004-02 Warehouse Disc Center\Agenda Rpts\cc 110406.doc Honorable City Council April 6, 2011 Page 5 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. 2. Deem the annual review process complete. ATTACHMENT: 1. Location Map 392 S\Community DevelopmentWDMIN\AGMTS\D A\2004-02 Warehouse Disc CenterWgenda Rpts\cc 110406.doc \ FA \ \ ,.5.../) Z '<iv>.CA A 00 W \ \\\10114\\ � \ , ill A I V \ - 1 \ IOC \ .:\ •N ® ' /lad _ 1�1�1 i 1 ir ii.i.b po ,_ . c m Mc RI•al ,, , . ' ;SP _� � �� / a 1 i\ 1 �P y_4,- G H/N O IMP I It 'Pi\ j \ . lopp.›.‘\\ i -k‘ W . \ \I I I I 1 I I I 4 1 I lifia r. --A 4‘411 .1..m".4'1111" ----aseliesa\ Er."1,0 , A\%, - ! .....P■■■ IR 400E: IN 1 Emoraft........,_ - . IIM fir■_■111111111k. . 3S3