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HomeMy WebLinkAboutAGENDA REPORT 2018 0516 CCSA REG ITEM 10ECITY OF MOORPARK, CALIFORNIA City Council Meeting of May 16, 2018 ACTION Approved staff recommendation BY M. Benson MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: David A. Bobardt, Community Development Director DATE: May 2, 2018 (CC Meeting of 5/16/2018) SUBJECT: Consider Report of Annual Development Agreement Review, Established in Connection with Meridian Hills Development Project, Tracts 5187-1&2, Located on 350 Acres on the West Side of Walnut Canyon Road at Meridian Hills Drive, on the Application of K. Hovnanian Homes 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 February 6, 2002, the Moorpark City Council adopted Ordinance No. 277 (effective March 8, 2002), approving a Development Agreement between the City of Moorpark and West Pointe Homes, Inc. The agreement was approved in connection with the Tract No. 5187/RPD No. 1999-02, a 248 single-family residential development on a portion of a 350-acre site, located on the west side of Walnut Canyon Road, approximately 3,500 feet north of Casey Road. The agreement remains in full force and effect for twenty (20) years from the operative date of the agreement (until March 8, 2022), or until the close of escrow on the initial sale of the last Affordable Housing Unit, whichever occurs last. In 2003, William Lyon Homes, Inc. purchased the project from West Pointe Homes, graded and improved the site, and built the first 65 homes. In 2008, Resmark Equity Partners, LLC purchased the project from William Lyon Homes. Resmark completed some site improvements, but did not construct any homes during its ownership. K. Hovnanian Homes purchased the project from Resmark in phases beginning in 2014, and is currently responsible for compliance with the terms 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. The developer has submitted the necessary application form, related materials, and fee/deposit for the annual review. Item: 10.E. 187 The Community Development Director has reviewed the submitted information, including the project status and provides the following report. DISCUSSION Current Project Status • Grading has been completed. • Final Maps have been approved by City Council. • Tract improvements, including installation of wet and dry utilities and curb, gutter, roadways and storm drains have been completed with the final cap of paving in some of the developed areas where residential units exist. • All 248 residential building permits have been issued. All but 25 homes have received final occupancy approvals. • The 17-home Brighton neighborhood has been completed to meet the project’s affordable housing obligation. • The original implementation plan was approved by the City Council on July 7, 2004, for William Lyon Homes. In January, 2008, Resmark Equity Partners, LLC purchased the project and an amended implementation plan was approved by the City Council on May 21, 2008. 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. (Resmark). • All of the mitigation landscaping has been installed per plan. Staff along with the City’s consulting landscape architect completed the final landscaping inspection and approved a final landscaping inspection zoning clearance on February 26, 2009. City staff is currently working with the HOA on the transfer of ownership of Lot Q, which includes part of the mitigation landscaping area, from the City to the HOA, as the City accepted ownership of this lot through the final map by error. • Resmark completed construction of the HOA recreation lot with the tennis and basketball courts and a zoning clearance for final occupancy of the facility was approved on February 2, 2009. • City staff completed a final landscaping inspection and approved a zoning clearance for completion of HOA landscaping on January 11, 2011 for the HOA landscaping that was installed at that time. The HOA recently accepted the landscaping on Lot B behind Phases 24 – 27 along the east side of the property. Additional landscaping on Lot C to be maintained by the HOA has not yet received final inspection. • Resmark adjusted the grades of two portions of the multi-use trail and sidewalk that run along Walnut Canyon Road to meet accessibility requirements. • The landscaping and irrigation has been installed in many areas within the 188 Landscape Maintenance District (LMD), Zone 20, within Tract 5187, but the City acceptance for maintenance has not occurred. Several punch lists of items needing to be completed prior to acceptance have been provided by City staff to Resmark beginning in 2012. Currently City staff and K. Hovnanian are working on resolving the remaining items. • City and K. Hovnanian entered into a Subdivision Improvement Agreement on March 2, 2018, to achieve compliance with the Subdivision Map Act, the City Municipal Code, and the conditions of approval for Tract 5187. Developer Compliance with Terms of Agreement The developer’s responsibilities are included in Section 6 of the Development Agreement and include twenty-six (26) specific requirements, as summarized below. Compliance with the terms and conditions of the Development Agreement 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 the Agreement, subsequent project approvals and Mitigation Monitoring Program. Developer is in compliance with all requirements at this time. 2. All lands and interests in land shall be dedicated free and clear of liens and encumbrances. All lands and interests in land were dedicated upon recordation of the Final Map. The City accepted fee title of Lot Q, a common open space lot with mitigation landscaping, by error as part of the Final Map. City staff and the HOA are working on the transfer of this property to the HOA. 3. Payment of “Development Fees” of seven thousand eight hundred fifty dollars ($7,850) per residential unit and thirty-five thousand three hundred twenty-five dollars ($35,325) per gross acre of institutional land. These fees are adjusted annually (until paid) using the Consumer Price Index (CPI) in accordance with the agreement. Fees must be paid prior to issuance of Zoning Clearance for Building Permit. This fee has been collected with all Zoning Clearances for all 248 Building Permits in Tract 5187 and all 17 Building Permits for the affordable homes in Tract 5405. The Development Fee on the last Building Permits issued was $10,100 per unit for market rate homes and $3,661 per unit for affordable homes (see No. 11 under City Compliance). 189 NO. REQUIREMENT STATUS 4. Payment of “Citywide Traffic Fees” of four thousand four hundred twenty dollars ($4,420) per residential unit and nineteen thousand eighty dollars ($19,080) per acre of institutional land. These fees are adjusted annually (until paid) using the State Highway Bid Price Index in accordance with the agreement. Fees must be paid prior to issuance of Zoning Clearance for Building Permit. This fee has been collected with all Zoning Clearances for all 248 Building Permits in Tract 5187 and all 17 Building Permits for the affordable homes in Tract 5405. The Citywide Traffic Fee on the last Building Permits issued was $21,034.99 per unit. 5. Payment of “Community Service Fees” of two thousand thirty dollars ($2,030) per residential unit and six thousand four hundred twenty-eight dollars ($6,428) per gross acre of institutional land. These fees are adjusted annually (until paid) using the Consumer Price Index (CPI) in accordance with the agreement. Fees must be paid prior to issuance of Zoning Clearance for Building Permit. This fee has been collected with all Zoning Clearances for all 248 Building Permits in Tract 5187 and all 17 Building Permits for the affordable homes in Tract 5405. The Community Service Fee on the last Building Permits issued was $2,815 per unit. 6. Payment of all outstanding processing costs. This is an ongoing requirement. The developer has provided payments to replenish the deposit fund in a timely manner when requested by staff. 7. Payment of a fee in lieu of park dedication “Park Fee” of nine-thousand dollars ($9,000) per residential unit and fifty cents ($0.50) per square foot of each building used for institutional purposes. These fees are adjusted annually (until paid) using the Consumer Price Index (CPI) in accordance with the agreement. Fees must be paid prior to issuance of Zoning Clearance for Building Permit. This fee has been collected with all Zoning Clearances for all 248 Building Permits in Tract 5187 and all 17 Building Permits for the affordable homes in Tract 5405. The Park Fee on the last Building Permits issued was $11,578 per unit for market rate homes and $4,394 per unit for affordable homes (see No. 11 under City Compliance). 8. Prior to Final Map recordation, confirmation from Ventura County Waterworks District No. 1 that sufficient recycled water is available to serve public and community owned landscape areas. Design and construction of facilities required to deliver the reclaimed water to the project, and payment of any connection/meter fees required by the District. At the present time, no connection points exist within the vicinity of the project. 190 NO. REQUIREMENT STATUS 9. Greenbelts, open space areas, landscape areas and trails (not covered by any other section) shall be dedicated to the City, or one or more property owners associations as determined by the City. Included on recorded Final Map. The City accepted fee title of Lot Q, a common open space lot with mitigation landscaping, by error as part of the Final Map. City staff and the HOA are working on the transfer of this property to the HOA. The City will retain a conservation easement for Lot Q. 10. (a) Irrevocable offer of dedication of Lot 263, for permanent open space preservation purposes on the first Final Map. Included on recorded Final Map. 10. (b) Annual Payment of ten-thousand dollars ($10,000) for permanent management, maintenance, and mitigation monitoring for open space Lot 263. The HOA shall be responsible for this perpetual obligation. The payment of this fee by the HOA is current. 10. (c) Grant conservation easement to retain Lots 254, 255, 257, 258, 259, 260, 261, 262, 264 and 265 in predominantly open space condition. Dedication of Lot 251 to the City for permanent open space preservation and trail staging area. Prior to occupancy of the 165th residential unit the developer shall improve the trail staging area, provide payment for perpetual maintenance, and provisions for temporary trail staging area within “A” Street right-of- way. Included on recorded Final Map. Included on recorded Final Map. The trail staging area has been constructed and will receive final inspection as part of the LMD turnover. Maintenance will be the responsibility of the LMD. 11. Provide a total of twenty (20) affordable housing units in accordance with the agreement. Payment of an in-lieu fee of seventy thousand ($70,000) for each unit less than the required twenty (20) shall be paid prior to occupancy of the 50th unit. Prior to occupancy of the first residential unit, the developer will enter into an Affordable Housing Agreement with the City, and pay the direct costs for preparation of the agreement up to seven thousand five hundred dollars ($7,500). Under the Affordable Housing Agreement for this project, executed by the applicant and the City and recorded on December 15, 2006, seventeen (17) affordable units were completed by K. Hovnanian Homes in Tract 5405. On November 15, 2007, the developer paid the $236,667.53 in-lieu fee for three units required prior to occupancy of the 50th unit. 191 NO. REQUIREMENT STATUS 12. Pay Air Quality Fee in the amount of one thousand four hundred forty-four dollars ($1,444) per residential unit, and for institutional uses at a rate calculated by the Community Development Department. This fees are adjusted annually (until paid) using the Consumer Price Index (CPI) in accordance with the agreement. Fees must be paid prior to issuance of Zoning Clearance for Building Permit. This fee has been collected with all Zoning Clearances for all 248 Building Permits in Tract 5187 and all 17 Building Permits for the affordable homes in Tract 5405. The Air Quality Fee on the last Building Permits issued was $2,002 per unit for market rate homes and $611 per unit for affordable homes (see No. 11 under City Compliance). 13. Submittal and approval of an Implementation Plan to address requirements for phasing and construction responsibilities. The original implementation plan was approved by the City Council on July 7, 2004. In January, 2008, Resmark Equity Partners, LLC purchased the project and an amended implementation plan was approved by the City Council on May 21, 2008. 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. (Resmark). 14. Waiver of any density bonus rights that would increase the number of dwelling units approved to be constructed on the property. Applicant has not requested density bonus units. 15. Agreement to cast affirmative ballots for formation of one or more assessment districts for maintenance of parkway and median landscaping and street lighting, including but not limited to all water and electricity costs. Agreement to form property owners association(s) to provide landscape, street lighting and park (if necessary) open space land, trails drainage facilities maintenance and compliance with NPDES requirements. The required fees were collected by staff and a Landscape Maintenance District formation petition for the formation of an Assessment District has been reviewed and approved by the City Council to inaugurate an Assessment District. 16. Payment of all City capital improvement and processing fees. Developer is in compliance with all requirements at this time. 17. Payment of Los Angeles Avenue Area of Contribution (AOC) Fee. Fees must be paid prior to issuance of Zoning Clearance for Building Permit. This fee has been collected with all Zoning Clearances for all 248 Building Permits in Tract 5187 and all 17 Building Permits for the affordable homes in Tract 5405. The Los Angeles Avenue AOC Fee on the last Building Permits issued was $8,683 per unit 192 NO. REQUIREMENT STATUS 18. Construction of regional flood control basin (Lot 259) per Walnut/Gabbert Deficiency Study, in lieu of pro rata contribution for Drainage, Sediment Transport and Flood Control Planning Mitigation Measure #4. Basin is shown on Final Map, with capacity verified by Ventura County Watershed Protection District. Improvement plans and permits have been issued by VCWPD, construction has been completed, and the basin was accepted by VCWPD on August 25, 2011. 19. Payment of seventy-thousand dollars ($70,000) to satisfy Final EIR Biological and Botanical Resources Mitigation Measures. This fee was paid on April 7, 2006, and deposited to the Open Space Maintenance Fund (2155). 20. Construct “A” Street from “E” Street to southern boundary prior to occupancy of 165th residential unit, including all plan check and inspection costs, and improvement surety. These improvements were included with project improvement plans and securities. The Meridian Hills Drive improvements terminate at a temporary detention basin within the right-of-way at the southern site boundary due to the drainage of the road. Once this road is connected to the Hitch Ranch Specific Plan property, the detention basin will no longer be needed. As part of the Subdivision Improvement Agreement, an in-lieu fee has been collected from the applicant to fund the completion of this road as part of the Hitch Ranch project. 21. Payment of three hundred thousand dollars ($300,000) to satisfy Mitigation Monitoring Program Traffic and Transportation Mitigation measures. Payment of twenty-thousand ($20,000) to satisfy Public Services and Utilities Mitigation Measures. Effective March 1, 2005, the $300,000 fee increased by one-half of one percent (0.5%) per month until paid. These fees were collected on October 28, 2005 and paid in full with indexing. 22. Acquire at sole cost and expense the property needed to improve Walnut Canyon Road. The Walnut Canyon Road improvements have been completed. 23. Construct public trail system across Walnut Canyon Road frontage of the property to connect to the trail constructed by Tract No. 4928 (County Club Estates). Maintenance to be the responsibility of the property owners association(s). This trail system has been completed. A correction punch list has been prepared and the Parks and Recreation Department intends to complete the corrections, with the costs subtracted from the deposit refund to Resmark. 24. Agreement to pay any fees and payments pursuant to this Agreement without reservation. Developer is in compliance with all requirements at this time. 25. Agreement to comply with requirements for annual review of the Agreement including evaluation of Mitigation Monitoring Program. To date, the applicant has complied with review requests and Mitigation Monitoring Program requirements. 26. Agreement to install photovoltaic system for each residential dwelling unit, so long as City adopts a policy and standards prior to January 31, 2004 or approval of the first phase of the Final Map, whichever is later. On February 18, 2004, City Council adopted standards which provide for voluntary installation of photovoltaic systems. K. Hovnanian has supplied each home with a solar ready conduit and panel as standard. 193 All requirements of the Development Agreement are 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 eleven (11) specific provisions, as summarized below. NO. REQUIREMENT STATUS 1. Agreement to commit reasonable time and resources on expedited and parallel processing of application for subsequent applications. To date, City has complied with any such requests. 2. If requested, at the developers cost, proceed to acquire easements or fee title to land in order to allow construction of required public improvements. To date, no such request has been received. 3. Agreement to authorize the City Manager to sign an early grading permit. An early grading agreement was executed by the City Manager in August 2004. 4. Agreement to process concurrently, whenever possible, all land use entitlements for the same property (so long as deemed complete). Entitlement applications for the affordable housing project were processed concurrently. 5. Agreement that Park Fee required per section 6.7 meets obligation for park land dedication provisions of state law and local codes. To date, City has complied. 6. Agreement to cooperate with developer to allow maximum tax benefits for dedication of Lot 263 for public open space. Open Space Easement Grant Deed was recorded April 27, 2004; and a conservation easement over this land was dedicated on the recorded Final Map. 7. Agreement to appoint affordable housing staff person to oversee the implementation of affordable housing requirements. The Program Manager in the Parks, Recreation, and Community Services Department oversaw the completion of the affordable housing requirements. 8. Agreement to allow for a variation of five (5’) feet maximum in the grades as shown on the Grading Plan exhibit, subject to approval of the Community Development Director/City Council that the overall design and visual quality would not be significantly affected. To date, no such request has been received. 9. Agreement to facilitate reimbursement to developer of any costs incurred that be subject to partial reimbursement from other developers. To date, no such request has been received. 194 NO. REQUIREMENT STATUS 10. Agreement to process a lot line adjustment to modify the common lot line between Tract 5187 and APN 500-0230-195 (Peters’ parcel) to increase Peters’ parcel to ten (10) gross acres, not to exceed eight-thousand eight hundred (8,800) square feet. The lot line adjustment must be filed prior to approval of the first final map. The lot line adjustment has been approved and recorded. 11. Agreement that affordable unit Development Fee shall be three thousand dollars ($3,000) per unit; Park Fee shall be three thousand six hundred dollars ($3,600) per unit, and Air Quality Fee shall be five-hundred dollars ($500) per unit. These fees have been included in Conditions of Approval of the affordable housing development. The 17 affordable units in Tract 5405 have been completed. 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 that, on the basis of substantial evidence, K. Hovnanian Homes has to date complied in good faith with the terms and conditions of the agreement. FISCAL IMPACT None. STAFF RECOMMENDATION 1. Accept the Community Development Director's Report and recommendation, and find, on the basis of substantial evidence, that K. Hovnanian Homes has complied in good faith with the terms and conditions of the agreement. 2. Deem the 2018 annual review process complete. ATTACHMENTS: 1. Location Map 2. Site Plan 3. Narrative 195 ↑ NORTH LOCATION MAP CC ATTACHMENT 1 196 197 198 199