HomeMy WebLinkAbout2024-09-10 - AGENDA REPORTS - MOU SUNRIDGE PLAN2
Agenda Item:1
CITY OF SANTA CLARITA
AGENDA REPORT
NEW BUSINESS
CITY MANAGERAPPROVAL:
DATE:September 10, 2024
MEMORANDUM OF UNDERSTANDING REGARDING THE
SUBJECT:
FUTURE PROPOSAL OF THE SUNRIDGE SPECIFIC PLAN
DEPARTMENT:Community Development
PRESENTER:David Peterson
RECOMMENDED ACTION
City Council approvea Memorandumof U
UNDERSTANDING BETWEEN THE CITY OF SANTA CLARITA AND BLUE OX
HOLDINGS, LLC,REGARDING THE CITY ENTITLEMENT PROCESS FOR THE
PROPOSED DEVELOPMENT OF THE 980-
BACKGROUND
At their study session on March 6, 2024, the City of Santa Claritas (City) City Council provided
direction to explore the possibility of entering into a Memorandum of Understanding (MOU)
with the potential applicant, Blue Ox Holdings, LLC/New Urban West (Applicant), regarding a
yet-to-be-proposed specific plan on the former Whittaker-Bermite property. The project,
commonly known as the Sunridge Specific Plan project, would be proposed to replace the
current Porta Bella Specific Plan that was approved on the property by the City Council in 1995.
The purpose of the MOU would be to outline the future entitlement process for the potential
project. Although this is not a process the City Council commonly entertains, the Applicant has
completed similar MOUs with other cities for similar projects.
On July 9, 2024, the City Council Development Committee received information on a draft of
the MOU provided by the Applicant. It is important to note that the MOU does not commit the
City to a future decision on the project and the document would expire upon the ultimate
adoption or denial of the project by the City Council. If either party breaches the MOU, the
document will be terminated.
Page 1
Qbdlfu!Qh/!:
2
KEY POINTS
The following is a summary of key points included in the draft MOU:
The Applicant will propose replacing the existing Porta Bella Specific Plan with a new
specific plan that reflects revised land use, circulation, and open space components:
o The future project would include a zone change and a general plan amendment.
o The Applicant proposes studying up to a maximum of 6,500 residential dwelling units
and up to a maximum of 2.7 million square feet of commercial space. The future project
itself may not ultimately propose that number of units or that intensity of commercial
space, but represents the maximum allowable development under the proposed plan.
o The Applicant intends to conduct a traffic study with the goal of demonstrating that
traffic-related impacts can be accommodated with reductions to the roadway network that
are currently contemplated by both the General Plan and the Porta Bella Specific Plan.
Traffic from the project as well as the overall Citywide traffic pattern would need to be
analyzed. Any reduction to the roadway network may require the review and approval of
an amendment to the Circulation Element by the City Council.
The Applicant proposes the City Council consider financing mechanisms, including the
Enhanced Infrastructure Financing District (EIFD) and/or Community Facilities District
(CFD).
The Applicant proposes negotiating a Development Agreement with the City with a potential
term of between 20 and 25 years.
The Applicant is requesting the City agree to review the project with a Program
Environmental Impact Report rather than a Project Environmental Impact Report.
The Applicant will agree to reimburse the City for any City Attorney fees regarding the
review of the project.
Page 2
Qbdlfu!Qh/!21
2
ALTERNATIVE ACTION
Other actions as determined by the City Council.
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ATTACHMENTS
Memorandum of Understanding
Page 3
Qbdlfu!Qh/!22
2/b
MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY OF SANTA CLARITA AND BLUE OX HOLDINGS, LLC
REGARDING THE CITY ENTITLEMENT PROCESS
FOR THE PROPOSED
DEVELOPMENT OF THE 980-ACRESPECIFIC PLAN AREA
This MEMORANDUM OF UNDERSTANDING (“MOU”)is entered into and effective
as of this _____ day of _______________, 2024(“Effective Date”), by and between the City of
Santa Clarita, a California general law city (“City”) andBlue Ox Holdings, LLC,a
Delawarelimited liability company. Each may be referred to individually as “Party” or
collectively as the “Parties.”
RECITALS
WHEREAS, on April 25, 1995, the City adopted the Porta Bella Specific Plan for an
approximately980-acre property (“Property”) within its municipal boundaries and jurisdiction,
commonly known as the Whittaker-Bermite site.
WHEREAS, the Porta Bella Specific Plan constitutes the zoning for the Property, and the
City’s General Plan Land Use Element and General Plan map designate the land use for the
Property as “Specific Plan.”
WHEREAS, the Porta Bella Specific Plan was adopted to provide a land use master plan,
zoning and development standards for the Property, and provided for the development of a
master-planned, mixed use community that wouldinclude single and multi-family dwelling
units,commercial, office, and institutional uses,and open space and parks.
WHEREAS, Blue Ox Holdings is the current owner of the Property, and New Urban
West Inc. (“NUWI”) is a member of the Blue Ox ownership (collectively, “Applicant”).
WHEREAS, the Parties desire to see a land use plan for the Property that better reflects
and addresses the City’s current needs, goals and objectives.
WHEREAS, the Applicant owns the Property and is proposing to develop the Property,
and wishes to work with the City and intends to file applications to 1) replace the Porta Bella
Specific Plan with, among other things, a specific plan that reflects revised land use, circulation
and open space components;2) amend the General Plan Land Use Element and Circulation
Buubdinfou;!Nfnpsboevn!pg!Voefstuboejoh!!)Tvosjehf!Nfnp!pg!Voefstuboejoh*
Element to replace references to the Porta Bella Specific Plan and reflect the proposed land use
plan; 3) obtain approval of a development agreement pursuant to Government Code Section
65864 et seq.;4) obtain a tentative subdivision map to subdivide the Property into parcels for
financing purposes only; and obtain approval of a hillside review and ridgeline alteration permit
(the “Proposed Entitlements”).
WHEREAS, the Applicantis proposing to replace the Porta Bella Specific Plan to 1)
incorporate into the proposed Specific Plan a City-owned parcel of approximately 237 acres that
lies to the northwest of the Propertyto facilitate the implementation of future land uses and
1
402920272.8
Qbdlfu!Qh/!23
2/b
improvements on that site;and 2) include a range of land uses, including but not limited to:
residential consisting of up to 6,500 dwelling units; commercial uses of up to 2.7 million square
feet consisting of a mix of retail, business park, andlight industrial;institutional; active and
passive open space uses, including a regional park, asurf parkor similar type of recreational use,
and open space; and associated infrastructure improvements(“Proposed Project”).
WHEREAS, the Applicant is proposing to incorporate the City property in the proposed
amended Specific Plan as it intends to provide for the development of the City property with uses
beneficial to the Cityand the community, such as recreational amenities, and other development
that would support civic activities, and the inclusion of the City property would allow for the
implementation of those uses on the City property and provide CEQA review for any future
development on the City property consistent with the amended Specific Plan.
WHEREAS,Applicant’s Proposed Project may require the acquisition of public rights-
of-way on adjacent properties in order to construct necessary infrastructure improvements, and
the Parties wish to confirm their understanding regarding those off-site areas.
WHEREAS, the Parties understand that prior to taking any discretionary actions with
respect to the Proposed Entitlements, the City is required to comply with the California
Environmental Quality Act (“CEQA”).
WHEREAS, in anticipation of the Applicant’s filing of applications to obtain land use
development entitlements for the Property including,but not limited to,an amendmentto the
Porta Bella Specific Plan, the Parties desire to set forth their respective rights, understandings of
and expectations regarding the City’s entitlement process for the Property, including the
proposed distribution and intensity of land uses, the land use approvals that will be reviewed and
considered by the City, the City’s proposed process to comply with CEQA, and anestimated
time framefor processing Applicant’s entitlement applications.
NOW, THEREFORE, in consideration of the covenants, conditions and promises
contained herein, the Parties mutually agree as follows:
1.Recitals.All of the foregoing recitals are true and correct and incorporated
herein.
2.Scope and Purpose of the MOU.The Parties understand, acknowledge and
agree that the purpose of this MOU is to set forth the process and the roles and responsibilities of
the City and Applicant with respect to applying for and consideration of the Proposed
Buubdinfou;!Nfnpsboevn!pg!Voefstuboejoh!!)Tvosjehf!Nfnp!pg!Voefstuboejoh*
Entitlements applications that will be filed by Applicant for development of the Property, and the
process by which the parties will reach an understanding regarding the future uses of the City-
owned property and use of off-site properties for infrastructure improvements, and that this
MOU does not dictate a substantive outcome regarding the City’s decisions regarding the
Proposed Entitlements, nor does it grant the Applicantany land use entitlements or approvals.
TheParties understand, acknowledge and agree that entering into the MOU does
not grant to either Party any entitlement for use or development or expectation of City approval
2
402920272.8
Qbdlfu!Qh/!24
2/b
of the Proposed Entitlements, that no physical changes to the environment will occuras a result
of the approval and execution of this MOU by the City, and that City’s consideration of and
approval of this MOU only reflects its duty to consider, not to approve, the Proposed
Entitlements, and does not preclude the Cityfrom consideration of alternatives to the Proposed
Project, including a No Project alternative whereby the Proposed Entitlements would not be
granted, as well as alternativesthat entail greater or lesser density or different land uses.
The Parties further understand, acknowledge and agree that if Applicantobtains
approvals for the Proposed Entitlements, it may choose to, but is not obligated to, apply for
subsequent entitlements to implement the replacement Specific Plan which require discretionary
approvalsfrom the City, including but not limited to: tentative subdivision maps to subdivide
the financing parcels into residential and/or commercial lots for development; site plan or
development plan approvals; architectural design review; conditional use permits; major or
minor use permits for grading; and landscape plans (“Subsequent Entitlements”).
3.Termand Termination.This MOU will take effect as of the Effective Date and
shall remain in effect until the City has rendered a final decision with respect to the Proposed
Entitlements. For purposes of this MOU, “Final Decision” shall mean a determination by the
City Council regarding the replacement of the Porta BellaSpecific Plan, approval of a
Development Agreement, approval of a tentative subdivision map, and compliance with CEQA
through certification of an Environmental Impact Report (“EIR”)prepared for the Proposed
Entitlements, as more particularly described below in Section 4.
This MOU may only be terminated uponthe occurrence of the following actions:
(a)Amaterial breach of an obligation under this MOU;
(b)Withdrawal of the application by Applicant; or
(c)Denial of the application by the City.
In the event of termination for a material breach, the non-breaching Party must give the
breaching Party notice of the alleged breach and an opportunity to cure within 30 days of
receipt of the notice. If the breaching Party fails to cure, the non-breaching Party may
elect to terminate the MOU.
4.CEQA. The Parties understand,acknowledge and agree that a condition
precedent to City consideration of and action on the Proposed Entitlements and the Subsequent
Buubdinfou;!Nfnpsboevn!pg!Voefstuboejoh!!)Tvosjehf!Nfnp!pg!Voefstuboejoh*
Entitlements is compliance with CEQA. The Parties agree that the City shall prepare an EIR that
will be sufficient in scope to provide CEQA compliance coverage for the Proposed Entitlements
and the Subsequent Entitlements.The Proposed Entitlements contemplate a specific plan and a
tentative map for financing purposes only. These entitlements will be implemented over a
number of years during which additional design and development details will be identified. A
Program EIR would provide a robust analysis of the Proposed Entitlements,help streamline
future environmental review for the Subsequent Entitlements, and provide theappropriate level
of analysis in compliance with CEQA.
3
402920272.8
Qbdlfu!Qh/!25
2/b
a.EIR Preparation Process.The Parties understand, acknowledge and agree
to implement the following steps in the City’s CEQA compliance process:
i.Upon execution of this MOU and establishment of the reimbursement
account described in Section 4.a.iii., below, City shall issue a RFP to
retain a third party consultant to prepare the EIR;
ii.the Cityretains all right to render its independent decision with respect
to selecting and engaging the third party CEQA consultant;
iii.Applicant shall deposit funds into a City account to be used to cover
the fees for the CEQA consultantand for the reimbursement of City
Attorney fees for review of the project;
iv.City shall require the CEQA consultant to provide an anticipated
schedule for Draft and Final EIR preparation, public review, and
certification by the City Council,which the City will provide to the
applicant;
v.The Parties agree that the evaluation of environmental impacts shall
utilize the thresholds of significance as set forth in Appendix G to the
CEQA Guidelines, as modified by any applicable local CEQA
guidelines; and
vi.The Applicant shall prepare and submit technical reports to the City as
determined necessary for CEQA compliance by the City’s CEQA
consultant. The technical reports shall be independently reviewed by
the City and the City’s CEQA consultant.A list of potential technical
studies that Applicant intends to submit is attached as Exhibit A.
5.The Proposed Entitlements.The Applicant intends to submit applications to
replacethe Porta Bella Specific Plan, a development agreement, and tentative subdivision map to
create parcels for financing purposes only.
Buubdinfou;!Nfnpsboevn!pg!Voefstuboejoh!!)Tvosjehf!Nfnp!pg!Voefstuboejoh*
a.Proposed Specific Plan. The Applicant shall submit a draft proposed
Specific Plan to the City which shall include all required components of a
specific plan as set forth in Government Code Section 65450 et seq.The draft
Specific Plan will include architectural design guidelines, implementation
procedures, and phasing of public infrastructure and amenities.
In support of the proposed amended Specific Plan and proposed amended
Circulation Element, and as a technical report for the EIR, Applicant intends
4
402920272.8
Qbdlfu!Qh/!26
2/b
to provide a traffic and circulation study that specifically studies the following
potentialroadway networkthat Applicant intends to propose for the Specific
Plan:
i.Via Princessa extension from itscurrent eastern terminus to Golden
Valley Parkway; and
ii.Santa Clarita Parkway extension from Soledad Canyon Road to new
Via Princessa.
The EIR shall review Applicant’s proposed circulation plan, and the impacts
of the proposed circulation plan to the circulation network reflected in the
current General Plan Circulation Elementand Porta Bella Specific Plan.
b.Development Agreement.The Applicant desires to enter into a statutory
development agreement with City to vest the entitlements approved by the
City. The contents of the development agreement could include, but are not
limited to,the following provisions:
i.Proposed implementation of the Proposed Project, including the
processing of theSubsequent Entitlements.
ii.Community benefits that could potentially be provided by the
Proposed Project, including but not limited to the provision of 1) a
championship youth sports facility on adjacent city property; 2) a
community/cultural center on theadjacent City property; and 3) open
space dedications, including new trails.
iii.The potential future formation of a Community Facilities District or
Enhanced Infrastructure Financing District, taking into consideration
and in accordance with current City policy, including potential use of
Statewide Community Infrastructure Program (SCIP) or Bond
Opportunities for Land Development (BOLD) programs through the
California Municipal Finance Authority (CMFA) for the potential
funding of various public infrastructure improvement both within the
Buubdinfou;!Nfnpsboevn!pg!Voefstuboejoh!!)Tvosjehf!Nfnp!pg!Voefstuboejoh*
amended Specific Plan area and off-site properties.
c.Financing “A” Subdivision Map.The Applicant intends to submit a
tentative subdivision map to subdivide the Property for financing purposes
only. As described above, if the Proposed Entitlements are approved by the
City, the Applicant may process the Subsequent Entitlements which could
include tentative subdivision maps to subdivide the financing parcels into
residential and/or commercial lots for development.
5
402920272.8
Qbdlfu!Qh/!27
2/b
6.Outline of Processing Steps.The Parties shall prepare a tentative outline of the
entitlement processing steps that the Parties agree will be required to process the Proposed
Entitlements (see subsections 6a.-6d., below) based upon their good faith estimatestaking into
consideration City staffing, workload, public comments, and otherrelevant considerations,
subject to the timely and complete responses provided by applicant of necessary entitlement
process materials. The outline shall include:
a.The EIR preparation and certification steps and estimated schedule from the
CEQA consultant described in Section 4.a.v.,above;
b.Anticipated steps and time frames to review and process the tentative
financing “A” map;
c.Anticipated steps and time frames to review and process the proposed Specific
Planand any related entitlements; and
d.Anticipated processing steps and time framesto review and negotiate a
development agreement.
Failure to meet any of the estimated schedules and anticipated time frames shall
not constitute a breach of this agreement
7.Applicant’s Obligations.In addition to the activities, studies and work
Applicant intends to undertake, as set forth above, Applicant agrees to the following additional
obligations:
a.Application Deposits.To fund on a timely basis, those deposits which may
be requested by the City as part of permit and processing fees for the Proposed
Project, including but not limited to reimbursement of City’s legal fees.
b.Community Engagement.Applicant intends to actively engage with the
community to provide outreach and information regarding the Proposed
Project. Applicant shall establish a website to provide up-to-date information
regarding the Proposed Project, and to solicit feedback from residents.
Buubdinfou;!Nfnpsboevn!pg!Voefstuboejoh!!)Tvosjehf!Nfnp!pg!Voefstuboejoh*
Applicant intends to also hold community open house meetings to outreach
and provide information to the community, and will coordinate its outreach
and engagement efforts with the City, if it so desires.
8.Amendments. This MOU constitutes the entire agreement and understanding
between the Parties with respect to the subject matter hereof and supersedes any previous
agreements, oral or written. This MOU may be amended only by subsequent mutual written
6
402920272.8
Qbdlfu!Qh/!28
2/b
agreement and will not be effective until signed by the Parties. The obligations in this MOU are
personal to each Party and no assignment by any Party is permitted without the express written
permission of the other Party.
9.California Law.This MOU shall be construed in accordance with the laws of
the State of California. This MOU shall be construed as though jointly drafted by the Parties with
the assistance of independent legal counsel.
10.Indemnification.Applicantshall defend, indemnify and hold harmless the City
andits agents, officers and employees from and against all claims, costs, penalties, causes of
action, demands, losses and liability of any nature, whatsoever, caused by or arising out of or
related to any alleged negligent act omission of the City, its officers or employees or any other
agent acting pursuant to the City’s control arising from, related to, or regarding this MOU.
11.Waiver. The waiver by the Parties of any breach of any term, covenant or
condition herein contained shall not be deemed to be a waiver of any other term, covenant or
condition or of any subsequent breach of the same or any other term, covenant or condition
herein contained. No term, covenant or condition of this MOU shall be deemed to have been
waived by the Parties unless in writing signed by one authorized to bind the party to be charged
with the waiver.
12.Severance.Should a provision of this MOU be found invalid or unenforceable,
the decision shall affect only the provision interpreted, and all remaining provisions shall remain
enforceable.
13.Counterparts. This MOU may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute but one and the same
instrument.
14.Notices. All notices shall be personally delivered ormailed, via first-class mail
and emailed to the below listed addresses:
CITY OF SANTA CLARITA
Santa Clarita City Hall
Buubdinfou;!Nfnpsboevn!pg!Voefstuboejoh!!)Tvosjehf!Nfnp!pg!Voefstuboejoh*
Attn: ____________________
23920 Valencia Blvd.,
Santa Clarita, CA 91355
Email: ___________________
BLUE OX HOLDINGS, LLC
7
402920272.8
Qbdlfu!Qh/!29
2/b
Blue Ox Holdings, LLC
c/o New Urban West, Inc.
2001 Wilshire Blvd, Ste 401
Santa Monica, CA 90403
Email:____________________
IN WITNESS WHEREOF, the Parties execute this MOU through their authorized
officers on the dates shown below.
Signatures on the Following Page
Buubdinfou;!Nfnpsboevn!pg!Voefstuboejoh!!)Tvosjehf!Nfnp!pg!Voefstuboejoh*
8
402920272.8
Qbdlfu!Qh/!2:
2/b
CITY OF SANTA CLARITA
By: _____________________________Date: _______________________
Its: _____________________________
APPROVED AS TO FORM:
By:______________________________Date: ________________________
Its: City Attorney
BLUE OX HOLDINGS, LLC
By: _______________________________Date: ________________________
Its: _______________________________
Buubdinfou;!Nfnpsboevn!pg!Voefstuboejoh!!)Tvosjehf!Nfnp!pg!Voefstuboejoh*
9
402920272.8
Qbdlfu!Qh/!31
2/b
EXHIBIT A
List of Technical Studies to be
Prepared by the Applicant
1.Air Quality Report
2.Greenhouse Gas Emissions Report
3.Health Risk Assessment
4.Energy Analysis
5.Biological Technical Report
6.Protected Tree Report
7.Noise Analysis
8.Cultural Resources Reports: Archaeological, Historical Resources, Paleontological
Resources and Tribal Cultural Resources
9.Fire Protection Plan
10.Evacuation Plan
11.Fuel Modification Plan
12.Traffic Impact Analysis
13.Hydrology and Drainage Report
14.Geotechnical and Soils Report
15.View Simulations
16.Sewer Study
Buubdinfou;!Nfnpsboevn!pg!Voefstuboejoh!!)Tvosjehf!Nfnp!pg!Voefstuboejoh*
10
402920272.8
Qbdlfu!Qh/!32