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HomeMy WebLinkAboutAGENDA REPORT 2017 0215 CCSA REG ITEM 10E ITEM 10.E. CITY OF MOORPARK,CALIFORNIA City Council Meeting Acli®w: MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Joseph Fiss, Economic Development and Planning Manager DATE: February 3, 2017 (CC Meeting of 2/15/2017) SUBJECT: Consider Report of Annual Development Agreement Review Established in Connection with Moorpark West Studios; 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. 85 Honorable City Council February 15, 2017 Page 2 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. 86 S:\Community Development\DEV PMTS\I P D\2009-01 Moorpark West Studios\DA\2015\DA Annual Review 2015-2016.docx Honorable City Council February 15, 2017 Page 6.5 Prior to the issuance of the building permit for each Fees must be paid prior to issuance of bui(ding. Developer shall pay an Air Quality Fee of Zoning Clearance for Building Permit. $0.63 for each square-foot of office building area and No Building Permits have been issued. $0.28 for each square foot of building area. 6.6 (This section is intentionally left blank.) 6.7 Prior to the issuance of the building permit for each Fees must be paid prior to issuance of building within the boundaries of the Property, Zoning Clearance for Building Permit. Developer shall pay a Park Fee of $0.60 for each No Building Permits have been issued. square-foot of building area. 6.8 (This section is intentionally left blank.) 8.9 (This section is intentionally left blank.) 610 Agreement to cast affirmative ballots for formation of To date no assessment district has one or more assessment districts for maintenance of been required. 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 Developer is in compliance with all this Agreement without reservation, requirements at this time. 6.12 PaymentofLosAngeleaAuenueAnaoof Contribution Fees must be paid prior to issuance of (AOC) Fee. Zoning Clearance for Building Permit. No Building Permits have been issued. 6.13 Provide for a 50-year life, as determined by the City To be part of the Street Improvement Engineer, for all public street improvements. Plans to be reviewed and approved by the City Engineer. 6.14 Agreement to pay any fees and payments pursuant to Developer is in compliance with all this Agreement without reservation, requirements at this time. 6.15 Agreement to comply with requirements for annual To date, the applicant has complied review of the Agreement including evaluation of with review requests and Mitigation Mitigation Monitoring Program. Deposit s25.000.00 Monitoring Program requirements. for the cost of annual reviews for the life of this Payment of $25.000.00 deposit has Agreement. been made. 6.10 (This section is intentionally left blank.) 6.17 Developer agrees that any election to acquire property No request for property to be acquired by eminent domain shall be at City's sole discretion, by eminent domain has been submitted and only after compliance with all legally required to date. procedures including but not limited to a hearing on a proposed resolution of necessity. 87 West Honorable City Council February 15, 2017 Page 4 6.18 Prior to recordation of this Agreement, Developer shall Developer is in compliance with all pay all outstanding City processing costs related to requirements at this time. Fund review preparation of this Agreement, Project Approvals, and ongoing. MND, should the deposit fund for this project have a negative balance. 6.19 In the event any of the "referenced Index" or "CPI" "Referenced Index" and "CPI" continue referred to in any portion of Section 6 above, are in use and have not been replaced with discontinued or revised, such successor index with a successor index. 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. 6.20 Developer shall dedicate the full right-of-way for North Dedication and participation in a funding Hills Parkway along the reach of the Project from Los mechanism or payment must be Angeles Avenue-on the south to the railroad on the completed prior to issuance of a Zoning north. Developer agrees to participate in a community Clearance for the first Building Permit. facilities district or other financing mechanism for the No Building Permits have been issued. 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 preceding year("annual indexing"). 6.21 Developer to pay for all costs of installation and to The developer is currently working with install traffic signals at the intersection of Los Angeles Caltrans to confirm configuration of the Avenue and North Hills Parkway and the intersection dedication area for the LA Avenue of the Property entrance and North Hills Parkway. widening and improvements. 6.22 If City, within 5 years of the issuance of the first final No Building Permits have been issued. 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. 6.23 Developer to construct and maintain a private road No Building Permits have been issued. 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. 6.24 Developer to acquire all necessary property and The developer is currently working with Caltrans and City permits, and construct Caltrans to confirm configuration of the improvements in Los Angeles Avenue for the project dedication area for the LA Avenue frontage. widening and improvements. 88 S:\Community Development\DEV PMTS\I P D\2009-01 Moorpark West Studios\DA\2015\DA Annual Review 2015-2016.docx Honorable City Council February 15, 2017 Page 5 6.25 Developer agrees to execute a tri-party maintenance The developer is currently working with agreement with Caltrans and the City of Moorpark to Caltrans to confirm configuration of the guarantee maintenance of the landscaping along both dedication area for the LA Avenue the north and south sides of Los Angeles Avenue widening and improvements. along the property frontage. 6.26 Provide a location and $25,000.00 for a City Welcome To date, no building permits have been Sign on the Project site prior to occupancy of the first issued. building. City Compliance with Terms of Agreement 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 long 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. 89 S:\Community Development\DEV PMTS\I P D\2009-01 Moorpark West Studios\DA\2015\DA Annual Review 2015-2016.docx Honorable City Council February 15, 2017 Page 6 No. Requirement Status 9 With the acceptance of the $25,000 City Welcome To date, no payment has been made. 7. Sign contribution addressed in Section 6.26 City agrees to be responsible for any costs associated with construction and maintenance of Sign. 7.10 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. 7.11 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. Extensions 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 later on November 18, 2011. The Development Agreement addresses the term of subsequent approvals as follows: 90 S:\Community Development\DEV PMTS\I P D\2009-01 Moorpark West Studios\DA\2015\DA Annual Review 2015-2016.docx Honorable City Council February 15, 2017 Page 7 "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. On November 5, 2014, the City Council extended the IPD Permit and CUP through November 18, 2015, by which time a foundation for the first building must have been completed to maintain the entitlements. At that time, these permits were eligible for one more one-year extension. On February 18, 2015, the City Council adopted a resolution approving a Modification to the IPD and CUP permits to extend the permit expiration date an additional three years, to November 18, 2019 (3 additional years beyond the original approval). Any additional extension would require an extension of the term of the Development Agreement, which must be initiated by the developer at least 180 days before its expiration on November 18, 2021. In 2014, the developer obtained the necessary permits from the Watershed Protection District and completed work to box the existing channels for road crossings. The applicant also completed a lot line adjustment to acquire 15 feet of the property to the west, as was shown on the approved plans. 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. 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. 91 S:\Community Development\DEV PMTS\I P D\2009-01 Moorpark West Studios\DA\2015\DA Annual Review 2015-2016.docx Honorable City Council February 15, 2017 Page 8 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. ATTACHMENTS: 1. Site Plan 2. Narrative from Triliad Development, Inc. • • 92 S:\Community Development\DEV PMTS\I P D\2009-01 Moorpark West Studios\DA\2015\DA Annual Review 2015-2016.docx ----- --( ---- - - ., I _ ---- - , INDUSTRIAL ------- L.,,,,'-' I/../ -_,------- __ _- ..., , -"....V.4.,7 :;* 1....)- am" 9. "' I -----_- ,-,--- -1' to ..• — n '--tf.- .• ..= ,-..,..........,1 __-- - -_,1 ii,,, cor 1 4' ,7 ----i" -) '4 . • - -1 L,- ,,,----- , .... 4. 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" -- ---,------q- - --t--. -; — ,- ..- — -----%----- --------- ---- ,----- -- : LOS ---------- ----- ----=----L-0S---A N GE-Er-9- -AV!NUE - --------------7- -----------------_ --_---- i ' itpr- 1,,_,, __ ...,____=._ -_,,.., ------ _._,____:_:__,.:.;:. --------' ---7-—if---— I:-- RESIDENTIAL — - ------- AGRICULTOr.. AGRICULTURAL Moorpark West Studios SIM clm.on dn.EnAln I 0 site plan Ahlotion Plass Sim andTiSavIslos StudloCamples kAC) 0110111111310 oWlarnia 9 2U1 11209 WEST LOS AN411313 AVFNUE LA) - v B1E1313013 f BIB 31.013 MOORPARK CALIFORNIA 93021 10 113011c23111013r011113 P'SI A.NNEIN9311.0134-10F I I b I Trilled Development Inc. 0,, Development Agreement Application 2015 Annual Review For Moorpark West Studio Project October 1, 2015 We are requesting your approval of the MWS Annual Development Agreement Review Application. We have continued to work on the Caltrans widening approvals and drawings. We are in negotiations with CBS Studios to be the operator for Moorpark West Studios which would be renamed to include the CBS name. CBS president and Triliad meant with City representatives to discuss their interest in managing the studio. That meeting went very well and CBS continues to show interest and they are working with their studio architect to budget the minor modifications to the site plan we discussed at our meeting. We are working with CBS we are reassess the project budget and income projections using CBS's data. Concurrently we are working on the continuance of the EB5 financing commitment. We should have all of the new budgets and return assessment completed in January 2016 so we can begin discussions with potential investors that would provide the capital for the project. As I indicated last year, the current Owner will not be proceeding with this project. CC ATTACHMENT 2 94