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HomeMy WebLinkAboutAGENDA REPORT 2016 0921 CCSA REG ITEM 09A ITEM 9.A. CITY OF MOORPARK,CALIFORNIA City Council Meeting of A 4i 6 ACTION: jegrn4.ste d_1/ MOORPARK CITY COUNCIL BY: 977_ AP S AGENDA REPORT TO: Honorable City Council FROM: David A. Bobardt, Community Development Director DATE: September 13, 2016 (CC Meeting of 9121/2016) SUBJECT: Consider Approval of the Proposed Third Amendment to the Implementation Plan for Improvements Associated with Tract Nos. 5187-1&2 and 5405, the Meridian Hills Residential Development Project, on the Application of K. Hovnanian Companies of Southern California, Located on Meridian Hills Drive, West of Walnut Canyon Road BACKGROUND/DISCUSSION This item was considered at the July 6, July 20, 2016, and September 7, 2016 City Council meetings. It was continued to the September 21, 2016 City Council meeting to allow staff to prepare alternative wording of the Implementation Plan in conjunction with the Subdivision Improvement Agreement for this project. The July 6, 2016 staff report is attached. K. Hovnanian, Hearthstone and Resmark have requested that the second sentence in the first full paragraph on Page 1 of this plan be amended to read as follows: "ORA Ashford 94, LLC, Hearthstone, and K. Hovnanian Homes shall be defined as "Developer" at any time that particular entity, or entities as the case may be, has an ownership interest in the Property. If Meridian Hills — Moorpark, L.P., a Delaware limited partnership ("Hearthstone") with all subsequent references to Hearthstone, Inc. being Hearthstone, never acquires an ownership interest in the Property, it shall not be considered a "Developer." Similarly, at the point in time that any of these entities no longer has an ownership interest in the Property, then that entity (or entities) that no longer has an ownership interest in the Property shall no longer be considered a Developer." This proposed concept of having one "Developer" identified as part of the implementation plan is one that the staff supports. The proposed language for the Third Amendment to the Implementation Plan would require further review by the City 1 Honorable City Council September 21, 2016 Page 2 Manager and City Attorney for consistency with the Subdivision Improvement Agreement, once the language in the Subdivision Improvement Agreement is finalized. STAFF RECOMMENDATION Approve the draft Third Amendment to the Implementation Plan for Improvements to Tract Nos. 5187-1&2 and 5405 subject to: 1) Review and approval of final language of this Third Amendment by the City Manager and City Attorney; 2) Completion of fully executed Subdivision Improvement Agreement(s) for Tract Nos. 5187-1&2 and 5405; 3) Determination of satisfactory financial capacity of the developers by the City Manager and City Attorney; and 4) Deposit of$5,000.00 to fund City's review of the referenced actions. Attachment: Agenda Report from 7/20/2016 City Council Agenda 2 ITEM 10.R. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Steven Kueny, City Manager DATE: July 14, 2016 (CC Meeting of 7/20/2016) SUBJECT: Consider Approval of the Proposed Third Amendment to the Implementation Plan for Improvements Associated with Tract Nos. 5187- 1&2 and 5405, the Meridian Hills Residential Development Project, on the Application of K. Hovnanian Companies of Southern California, Located on Meridian Hills Drive, West of Walnut Canyon Road BACKGROUND and DISCUSSION This matter was taken off calendar from the July 6, 2016, Council agenda. A copy of that staff report is attached. Since that time, it was confirmed that a Subdivision Improvement Agreement (SIA) was not approved when the final maps for these tracts were approved by the City Council. A separate agenda report on the July 20, 2016, Council agenda provides for approval of one or more SIA's for these tracts. Staff will also verify all sureties are correct. As a result of the need for the SIA, the staff recommendation for this item is amended to include that requirement. STAFF RECOMMENDATION Approve the draft Third Amendment to the Implementation Plan for improvements to Tract Nos. 5187-1&2 and 5405 subject to: 1) Review and approval of final language of this Third Amendment by the City Manager and City Attorney; 2) Completion of fully executed Subdivision Improvement Agreement(s) for Tract Nos. 5187-1&2 and 5405; 3) Determination of satisfactory financial capacity of the developers by the City Manager and City Attorney; and 4) Deposit of$5,000.00 to fund City's review of the referenced actions. Attachment 1: Agenda Report from 7/6/2016 Council Agenda _ 3 MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: David A. Bobardt, Community Development Director DATE: June 23, 2016 (CC Meeting of 7/6/2016) SUBJECT: Consider Approval of the Proposed Third Amendment to the Implementation Plan for Improvements Associated with Tract Nos. 5187-1&2 and 5405, the Meridian Hills Residential Development Project, on the Application of K. Hovnanian Companies of Southern California, Located on Meridian Hills Drive, West of Walnut Canyon Road BACKGROUND As a requirement of the Development Agreement for Tract No. 5187, the Meridian Hills residential development project, the applicant is required to submit for approval to the City Council an implementation plan for the construction of on-site and off-site improvements, prior to the issuance of a grading permit. On July 7, 2004, William Lyon Homes received the City Council's approval of an Implementation Plan for the project. On January 10, 2008, William Lyon Homes verbally informed City staff that their company's interests in the unbuilt portions of the Meridian Hills project (183 lots in Tract 5187 and 17 lots in Tract 5405) had been completely transferred to ORA Ashford 94, LLC. Resmark Equity Partners, LLC (Resmark) is the sole managing entity of the Meridian Hills project on behalf of ORA Ashford 94, LLC. This transaction took place in violation of the terms of the Development Agreement for this project, which requires City Council approval of an amendment to the Implementation Plan to address the responsibilities of a new owner prior to the transfer of ownership. On March 25, 2008, William Lyon Homes submitted a formal application to the City seeking approval of an amendment to the Implementation Plan. A draft Implementation Plan was presented to the City Council at its April 16, 2008 meeting, at which time the item was continued to allow additional time for the residents to review the plan. On May 21, 2008, Resmark received the City Council's approval of an Amended Implementation Plan for the project. 4 Honorable City Council July 6, 2016 Page 2 On June 13, 2014, Resmark verbally informed City staff that K Hovnanian Homes had entered into an exclusive negotiation escrow to acquire the unbuilt portions of the Meridian Hills project (183 lots in Tract 5187 and 17 lots in Tract 5405). A second amendment to the Implementation Plan was approved by the City Council on July 16, 2014 to recognize K. Hovnanian as developer along with ORA Ashford 94, LLC. K. Hovnanian Homes is currently pursuing a financing arrangement with Hearthstone, Inc, by which Hearthstone would purchase 61 lots in the next phases of development from K Hovnanian and then sell those lots back to K. Hovnanian as they are ready to be developed. Subsection 6.13 of the Development Agreement for Tract 5187 states: Prior to approval of the first grading permit for the Property, or approval of the first final map of Tract 5187, whichever occurs first, Developer shall submit and gain approval from City Council of an Implementation Plan. The Implementation Plan shall address the requirements for phasing and construction responsibilities of Developer and any successors including sureties for performance for all grading, construction of storm drains and utilities, private and public streets, and other private and public improvements on or offsite required by Tract 5187, RPD 99-2, and this Agreement The Implementation Plan shall also address the entities responsible and method and timing of guarantee for each component of Developer's obligations pursuant to Tract 5187, RPD 99-2, and this Agreement and Developer's obligation for a Trail Staging area as referenced in Subsection 6.9 of this Agreement. The approval of the Implementation Plan and any Amendments thereto shall be at the City Council's sole discretion. Prior to sale or transfer of ownership of any portion of Tract 5187 (except individual lots after construction of houses), Developer shall seek City approval of an amendment to the Implementation Plan to address the responsibilities of each entity. Since Hearthstone will take title to the lots, as opposed to just carrying a trust deed, the Implementation Plan needs to be amended to recognize their role in the ownership of this project and responsibility for constructing certain improvements and accompanying sureties to guarantee such construction. The current construction and grading sureties are shown in the following table. All have been provided by K. Hovnanian Homes, except for two as noted, which have been provided by William Lyon Homes and Resmark. The work under these two sureties is expected to be completed over the next two months. 5 Honorable City Council July 6, 2016 Page 3 Surety Type Bond No. Bond Amount Tract 5187-1 Performance and Payment SN04002559 $1,000,000 _Tract 5187 Grading_ SN04002556 $1,000,000 -Tract-5187-2 Performance and_Payment SN0400_2560 _ _ $1,000,000 Tract 5187 Performance and Payment - Multi SN04002557 $509,975.40 _use trail __ Tract 5187-2_Monu_ments --- - --- SN04002553 - $167,013.29 Tract 5187-1 Monuments SN04002554 $189,929.87 Tract 5405 Performanceand Payment SN04002558 _ Tract 5405 Monuments -� - �� SN04002_555 - $22,418.23 ADA_ Trail-Rework {Resmark) _ __ 06_03010401303 $61111348 _ $84,909.61 Peter's_Driveway William Lyon) _ _ _ PB ,096.93_--_ Water Tank Access Road and Storm Drain 1134432 $350,741.68 Perform ance and Payment __ - Access- - -- brain--- ---- - - -- - - -- - - ---- ----- - Water Tank Access Road and Storm Drain 1134433 $13,663.98 Grading DISCUSSION The intent of an implementation plan is to identify responsibility for grading and improvements associated with the development of Tract 5187 and Tract 5405. In support of this, the plan establishes a method for ensuring that sureties remain in place and improvements are provided in the event that the developer sells portions of the project to other developers prior to the installation of these improvements_ The required implementation plan will ensure a smooth transition of rights and responsibilities in the event that an unforeseen change results in the sale of any or all of the project to another entity. The proposed Draft Third Amendment to the Implementation Plan for the Meridian Hills Residential Development Project is provided in legislative format. The key components are the same as approved with the second amendment on July 16, 2014. Other than recognition of Hearthstone as developer, the only change to the responsibilities is the date for completion of the multi-use trail along the Peters' driveway. A new deadline of September 30, 2016 is proposed, as the work is almost completed at this time, with a few corrections that have been requested of City staff to better accommodate drainage_ FISCAL IMPACT All surety bonds originally posted for all of the improvements required as part of the subdivision remain in place and are sufficient to ensure completion of the tract improvements. 6 Honorable City Council July 6, 2016 Page 4 Several deposits have been submitted to City of Moorpark for condition compliance to cover staff costs associated with monitoring progress related to administering the Implementation Plan. Also, deposits have been submitted to City of Moorpark for the Modification No. 1 to Residential Planned Development Permit No. 1999-02 to cover staff costs associated review of the entitlement application. The fund is current but, as the fund account becomes depleted, additional money will need to be deposited by the Developer to cover staff costs, consistent with the Development Agreement and conditions of approval. STAFF RECOMMENDATION Approve the draft Third Amendment to the Implementation Plan for improvements to Tract Nos. 5187-1&2 and 5405, subject to review of final language and determination of satisfactory financial capacity by the City Manager and City Attorney. 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'sawoH a;ulod ;seM pue NIedhoow ;o Aga ay; ueem;aq ;ueweeibv ;uewdoieAea uo!pesgns Aq paJ!nbai se &anew 6u!mopo; ay; sessaJppe 5045 pUe 3'8L-L91.5 .soN peel ro; ue!d uoge;uawa!dwi eq; of luewpuewy-pueseg PM!yl s!yl "zsuv—9 Aepj . . •: . . . :. • : ll '46 PiojgSV VJo pue t?40 Z abed Page 3 of 4 Development Agreement, Conditions of Approval, and Affordable Housing Agreement for Tract Nos. 5187-1&2 and 5405. 3. Completion of required improvements to Walnut Canyon Road including the installation of the multi-use trail and complete corrections of sidewalk to demonstrate full compliance of accessibility requirements. 4. Completion of required improvements associated with the construction of Meridian Hills Drive. 5. Provision of required Open Space dedications per the Development Agreement. 6. Installation of required Common Landscaping throughout the Project. 7. Completion of grading within the Project area, to establish areas graded to an average elevation, consistent with the approved plans, in preparation for fine grading prior to construction of structures, and a spine network of streets to serve those areas including improvements within Tract 5187. 8. Completion of required Multi-use Trail and Public Trailhead improvements. 9. Completion and maintenance of EIR mitigation measures for the Project. 10.Maintenance of common areas until such time as these areas are accepted by the Homeowners Association or other applicable governing agencies. 11.Completion of construction and maintenance of the required flood control and other drainage improvements. 12.Continuation of meeting and complying with requirements for the design, installation, monitoring, and maintenance of facilities to meet NPDES requirements. 13.Completion of all required public improvements in Tract 5405 including but not limited to streets, soil nail wall, retaining walls, and sound walls; and maintain the main lines for the wet and dry utilities which have been installed to ensure they are in a good state of repair. 14.Construction of the improvements for the trail staging area per section 6.10c of the Development Agreement to be completed prior to occupancy of the 165th residential unit for Tract No. 5187. 15.Compliance with section 6.11. of the Development Agreement and its related requirements set forth in the Affordable Housing Purchase and Sale Agreement recorded on December 15, 2006. 10 Page 4 of 4 16.Provision of a site security program which includes the 24-hour response and dissemination of security telephone number to the existing residents and City staff. 17.Any additional improvements associated with the development of the Project, as deemed necessary by the City Engineer/Public Works Director or Community Development Director to protect the public health, safety and welfare. 11 SECOND DRAFT THIRD AMENDMENT TO THE IMPLEMENTATION PLAN MERIDIAN HILLS RESIDENTIAL DEVELOPMENT PROJECT TRACT 5187-1842 AND 5405 PART TWO-A The following community enhancements and improvements within the Meridian Hills Community are in progress and/or will be performed by the Developer within the timeframes below: Required Tract 518P(items originally presented to applicant in a City Engineering Memo dated March Completion 5, 2008) Date" 1 General Clean up of onsite and offsite trash and removal of all illegal dumping debris Site shall be ongoing cleaned-up immediately 2 Clean up of debns within all V-ditches ongoing 3 Replace BMP%, remove all broken sand bags Remove all silt at chevrons,dean streets with street ongoing sweeper 4 Gate to Ventura County Watershed Protection District basin shall be secured immediately and shall ongoing remain locked at all times 5 All gates for access areas shall be secured each and every day Gate to HOA basin along Walnut ongoing Canyon Road shall be secured immediately 6 My and all other conditions,bonds,and/or timing of improvements for the property per the ongoing Development Agreement and Conditions of Approval *All items are to be completed to the satisfaction of either the City Engineer and Community Development Director. "All dates are subject to inspections and collaboration with the various governing agencies. Page 1 of 1 12 SECOND DRAFT THIRD AMENDMENT TO THE IMPLEMENTATION PLAN MERIDIAN HILLS RESIDENTIAL DEVELOPMENT PROJECT TRACT 5187-1842 AND 5405 PART TWO-B Requited Tract 51871 Items originally presented to applicant in a Letter from Planning Companion Director and attached City Engineering Memo,both dated March 13,2008) fie" 1 Correct and complete the installation of the multi-ice trail along Peters'driveway and 3/30/204.5- landscaping )20/2015landscaping along the R.O W of Walnut Canyon Rd per City requirements 9/30/2016 a slope failure&erosion problem along Peters'driveway requires immediate attention b. install safety guardrail fencing along additional portions of the driveway c modify the exrstag concrete block entry monument to comply with aline of sight" d install a neighborhood mailbox unit 2 Need to bond for construction of multi-use bail at 150%of estimated cost of ongoing construction 3 The property must be in full compliance with the adopted Fuel Modification plan on file. ongoing *All items are to be completed to the satisfaction of either the City Engineer and Community Development Director. "All dates are subject to inspections and collaboration with the various governing 13 Page 1 of 1