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Home My WebLink About1992-03-10 - AGENDA REPORTS - APPROVING MC 90 153 (2)AGENDA.REPORT City Manager Approval - Item to be presented 7 UNFINISHED BUSINESS Lynn M. Harris • DATE: March 10, 1992 SUBJECT: Request for deletion of condition number 67 of Resolution No. P91-58 approving Master Case No.. 90-153; Conditional Use Permit No. 90-021 for the construction of a retail shopping center at 18830 Soledad Canyon Road. Condition 67 provides that McDonald's and the applicant reach an agreement within 30 days or return to the City Council for deletion. DEPARTMENT: Community Development BACKGROUND After several meetings between the applicant, adjacent property owners, and City staff, this project -was redesigned and conditionally approved by the Planning Commission on November 19, 1991. The McDonald's Corporation appealed the Planning Commission's approval to the City Council. On January 14, 1992, the City Council voted 4-0 to uphold the Planning Commission's decision conditionally approving this project with the addition -of condition number 67. Condition number 67 of this approval states that: "The _applicant and McDonald's shall reach an agreement on purchase or lease of the property under negotiation before this approval is effective. If these parties are unable to reach such agreement within 30 days, the applicant can return to the City Council with a request to delete this condition. This condition is satisfied by submittal of a letter signed by the affected parties." On February 21, 1992, the applicant indicated that an agreement could not be reached with the McDonald's Corporation and requested that this item be returned to the City Council for deletion of condition number 67. RECOMMENDATION 1. Consider the applicant's request to delete condition number 67. 2. Provide direction to staff. ATTACHMENTS 1. February 21, 1992 letter from Robert Nolet of the Sulphur Springs School District to Lynn M. Harris, Director of Community Development. 2. February 19, 1992 from Richard Darling of Tandam Builders to Sandra Ayers of McDonald's. 3. February 18, 1992 letter from Sandra Ayers of McDonald's to Richard Darling of Tandam Builders. AREED ,,&� Agenda Item: FEB -21-92 T H U 14:49 P. 02 SULPHUR SPRINGS SCHOOL DISTRICT Adminla(rative 17366 Sierra Highway - Serving Grades Offices Can9un Country. CA 91591' K•6 so 5/353.5131 FAX -$951352.11614 February 21, 1992 Ms. Lynn Harris, Director of Planning City of Santa Clarita 23920 W. Valencia Blvd. Santa Clarita, CA 91355 . Re: Resolution 92-22, Condition #67 Dear Lynn: We request that this condition be reconsidered at the March 10 City Council Meeting as we have been unable to reach any type of equitable agreement with the McDonald's Corporation. Sincerely. A�46�z Robert Nolet, Ed. D.. Superintendent of Schools RN:kp Attachments suLN09511UNG5 LIONA COX - ii wh4iA - COMMEP. COMMIINfIY+('WX1L C(�MMUMTY XlIIX�I. 17 MIM11N(I'Y �(tX XX. COMMIINII'1'liCH(X1L MINTCANYnN souDADMON11YVA11.11Y VIEW COMMUMryS('f1(XX COMM(INftYK11019 VoMMIINITYSCIfLX)L FEB -20-1992 11:00 FROM, DARLING DEVELOPMENT TANDAM BUILDERS, INC. License #a77a05 VIA PAX (818) 594-7599 February 19, 1992 Ms. Sandra Ayers Real Estate Representative Los Angeles Region MCDONALD'S CORPORATION 21300 Victory Blvd., #800 Woodland Hills, CA 91367 TO 18052598125 RE: CANYON SPRINGS SHOPPING CENTER Dear Sandra: PARCEL 12 - 20,252 SQ.FT. (.465 ACRES) -10 I have reviewed McDonald's letter proposal dated February 18, 1992 and have also considered our subsequent telephone conversation which included McDonald's counsel. It is my understanding that the point McDonald's is making is that Harmon vs. City and County of San Francisco (1972) (7CAL3 150;167) applied to our parcel 2 would result in McDonald's having a non-exclusive easement over the easterly one-half of the existing Luther Drive that is to be aban- doned to the School District. The practical result of. this, as McDonald's proposes it, is that McDonald's would only be required to lease the portion of parcel 2 (12,509 sq.ft.) that would abut the new Luther Drive and would be able to freely traverse the old Luther Drive without having to pay rent for it. In our telephone conversation you agreed that,McDonald's would not however be able to park on the School District's portion of the abandoned Luther Drive. McDonald's proposes to offer to rent the based on a 10% return on a $12.00/sq.ft. value. terms of the lease sions except as to proposal. proposal are consistent with use restrictions which are no 163017th Street . Santa Monica. Cafifomia 90404 ,1. 7. .CA .....1. r ----------- _.-. remaining parcel This and the other our prior discus - addressed in your FEB -20-1992 11:0i FROM DnRLING DEVELOPMENT TO 1805.7598125 P.03 While avoiding any pejoratives, I wvuld like to point out that it Sapmc to me that this approach ie contrary to the spirit of com- promise and settlement that had been worked out as rendition 67 to the approval.of the shopping center project. It would appear that since this represents a. naw ixelle in- jected into the negotiations any appraisal procedure consistent With Condition 67 would prasnntly be a waste of time, since we wouldn't know what to appraise. Notwithstanding the foregoing, I will diseuec McDonald's posi- tion with the School District and the City, as well as with our own attorneys and will further advise you. Sincerely, TANDAM BUILDERS, ZNC! RiEhSid L. Darli� cc: Robert Nolet, Superintendent (via fax) Terry Hargerum (via fax)) Richard Godino, Rag. (vfa fax) Richard Davis, Esq. (via fax) Anthony Ciaculli, Esq. (via fax) Lynn Harris (via fax) Rich Henderson (via fax) t TOTAL P.03 ;=McDonald's February 18, 1992 Darling Development. 1630 17th Street Santa Monica, CA 90404 RE: Canyon Springs Shopping Center Parcel "2" Dear Dick: McDonald s Corpora±.on 21300 ViCtory Boulevard SL,r.e 800. Woodland H,I!s... California 91367 818 591-2'.5 2ECE)VE� FEB 2 01992 CCN2nCW :V f.-", nRRN11A pTv rc S,tl^!A We have expended much timeandenergy toward a satisfactory resolution for the use of the above referenced portion of your shopping center. The appraisals you provided established a land value of approximately $15.00 a square foot and provided for a pre -agreed 10% return. These appraised, buildable parcels were for 1.77 acres --and 7.36 acres. The enclosed legal, of the subject parcel furnished by your civil engineers, shows only a 12,501 square foot parcel. Dick, I've just become aware of a case that the California Supreme Court upheld in an action for Quiet Title. The case is Harman vs. City and Co. of San Francisco (1972) 7C3150,167..... "A private easement of ingress and egress burdens all public streets in favor of the abutting parcels and that this easement continues even though the city vacation, terminates the public right of access to the street." This means that the city vacation of Luther Avenue leaves the 60 foot right of way as a private access easement in favor of all owners who front on Luther Drive. Nothing can be built on that 60 foot right of way. Considering the above, although a 10%.return in extremely high in this market, your offer to lease this remaining property to McDonald's for $12.00 a square foot is certainly justified. Considering anareaof 12,501 square feet McDonald's Corporation is prepared to enter into the following agreement. Landlord: Canyon Springs Village Associates II, a California Limited Partnership Darling Development February 18, 1992 Page Two Tenant: Premises Term: McDonald's Corporation Approximately 0.287/acres (12,501) net usable area, Parcel 2 20 years with three additional five year, options Ground Rent: $15,000 annual NNN Rental Adjustments: The rent shall be adjusted on each fifth year by 20%. Off -Site & On -Site Improvements: Landlord responsibility We hope you understand that based on this new information, it would not benefit us to enter into a lease on the Luther Avenue portion of the property you are offering us, since it is burdened by our easement. We would, however,.be willing to cooperate with you in improving this 60 foot easement, as shown on the attached site plan, to assist you with a more harmonious development of your shopping center. We are prepared to draw lease documents and will await your prompt response to our proposal. Sincerely, 'S Sandra S. Ayers Real Estate Rep Los Angeles Reg /8986R ative McDONALD'S RESTAURANT ADDITIONAL PARKING PROJECT LOCATION: 10850 SOLEDAD CANYON ROAD CANYON COUNTRY. CALIFORNIA SCALE 1:40' DATE 14 FEBRUARY 1992 DESIGNED AND DRAWLY_: MEL CRUZ NUMBERIpF PARKING GAINED: . 52 STALLS REGIONAL MANAGER:_ CONSTRUCTION MANAGER:— REAL ESTATE MANAGER:— OPERATION MANAGER:— PROJECT MANAGER:___ REAL ESTATE REP.:_ 5'^ LOCFTioN LADE: 004-0219 EXISTING MCDONALD'S RESTAURANT EXISTIt \PAARK Nb T 'REdAIN I N EXISTING CENTERLINE OF LUINER DRIVE DATE: N 0 r m d �D'j x Z \/ "D- 0 'Z z' d 00 A Z0 A �A 0 DD V Tw l I LUTHER 0 zoiM, q o 30,1301 W V) 1 d'GeSG'3C" R=90'L_/Q9/ p N4W U'e1 "6 4-Ge5G34' DR/ VE PARCEL 2 <r so 3�a s��94�` �/ �•I-52 Nb096 Rc2/p. N2e29 3/"�3' 2017' POR. S.W.'/4 SEC. 21, T.4N.,R.15W., S. B. M. PARCEL / �v w �r amu_ ZN O 1 to NGTe303/•E • NO"0847"W 33s Poo. SCALE: !"=/00' 30' 30�I TRACT NO. 21087 60' M.B! 642 - 82 - 84 21 e 0 o V/LNA AVS 0 v� 60• 62' P 2• 2 Q /Al »IASG i —E SOLEDAD CANYON ROAD ...... f EXISTING LUTHER DRIVE Mc DONALD'S PROPERTY AREA = 30,928 S.F. LUTHERAN CHURCH PROPERTY F_ HOMYR PLACE 1 V i� I IAREA = 24,738 S.F. I OUTPAD "C `l I AREA = 20,256 S.F. / I AREA = 3,862 S.F. +f Y EXHIBIT - OUTPAD 'IC" CANYON SPRINGS. SHOPPING CENTER C.U.P. 90-021 B 6 E ENGINEERS