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HomeMy WebLinkAbout1997-12-18 - AGENDA REPORTS - N VALENCIA SP GPA (2)UNFINISHED BUSINESS DATE: .►CrT�i7:iT December 18, 1997 Item to be presented by: Jeffrey Lambert SUBJECT. NORTH VALENCIA SPECIFIC PLAN AND ANNEXATION (MASTER CASE NOS. 95-242, 96-120, 97-063), GENERAL PLAN AMENDMENT 97-001, SPECIFIC PLAN (PREZONE) 97-001, ANNEXATION AND DEVELOPMENT AGREEMENT 96-001, ANNEXATION NO. 95-006, TENTATIVE TRACT MAP 51931, OAK TREE PERMIT 97-009, ENVIRONMENTAL IMPACT REPORT SCH # 96071077 DEPARTMENT: Planning and Building Services IRWGIMAMN• • •� 1. Adopt Resolution No. 97-126 Certifying the Environmental Impact Report and Adopting a Statement of Overriding Considerations; 2. Adopt Resolution No. 97-127 Approving General Plan Amendment No. 97-001, Tentative Tract Map 51931, Annexation No. 95-006, and Oak Tree Permit 97-009; 3. Introduce Ordinance No. 97-19 (Specific Plan Zone Change); 4. Introduce Ordinance No. 97-20 (Annexation and Development Agreement); and 5. Adopt Resolution No. 97-149 Approving the Tax Transfer The City Council opened the public hearing on this item at its November 4, 1997 meeting. This item was continued to two additional public hearings on December 2, 1997 and December 9, 1997. At the December 9, 1997 meeting, the Council closed the public hearing and continued the item to a special meeting on December 18, 1997. Two issues remain to be resolved regarding this project. First, the Council asked for verification that the Hart School District mitigation agreement had been reached. Second, the Council asked for more discussion regarding the Santa Clara River buffer along the eastern portion of the Lago de Valencia planning area. SCHOOL DISTRICT MITIGATION The Hart School District Board approved the proposed mitigation agreement at its December 2, 1997 meeting. This agreement is contingent upon the County's approval to amend The Adopted: 2' -LL -9 I gen a Iten-L Newhall Land and Farming Company's park agreement for the North Park area. This agreement needs to be amended to relocate a portion of the park obligation from the Decoro and McBean area to the Newhall Ranch Road and McBean area, adjacent to the proposed Junior High School site. The County Board of Supervisors is scheduled to approve this amendment at their December 16, 1997 regular meeting and staff will provide a verbal update to the City Council at the meeting. Upon approval of this park agreement amendment, the Hart School District and The Newhall Land and Farming Company will execute the school mitigation agreement and copies will be available for the Council at the meeting. Should the state reject this site for any reason, the City, the School District and The Newhall Land and Farming Company agree to replicate the terms of this agreement at another mutually agreed upon site. SANTA CLARA RIVER B OFFER The Council continued discussion regarding the Santa Clara River buffer along the easterly portion of the Lago de Valencia planning area to the December 18, 1997 meeting. The specific issue raised was whether the Council could support a buffer of 75 feet in this area as opposed to the average buffer of 125 feet across the balance of the Specific Plan area. The Planning Commission had lengthy discussions regarding this issue. They recommended the 75 foot buffer in this area after hearing testimony from the Scientific Advisory Team (SAT) members and the EER consultants, who believe additional buffer area would not improve the habitat or provide increased flood protection. The Commission supported the line agreed to by both experts throughout the project area. Staff will provide additional exhibits to help understand the nature of the Santa Clara River, buffer and adjacent development. TAX TRANSFER RESOLUTION Pursuant to State law, distribution of property tax revenue derived from the area must be negotiated and approved by a joint resolution of the City and the County of Los Angeles. The Joint Resolution of Negotiated Property Tax Transfer (Resolution No. 97-149) was based upon a standard formula agreed to by the County and the California League of Cities in 1979. A fiscal impact analysis prepared independently by Economics Research Associates was used by staff to evaluate the standard formula amount set forth in the resolution. The proposed resolution provides for the transfer, from the County to the City; of property tax revenue for fiscal years commencing July 1, 1999, or the July 1 after the effective date of the annexation, whichever is later, Eighty -Six Thousand, Eight Hundred and Eighty -Four Dollars ($86,884) in property tax revenue, and an average of 5.9%a of the annual tax increment (ATI) attributable to the fifteen (15) Tax Rate Areas within the annexation. The resolution also provides for the transfer of all property tax revenue currently received by County Road District No. 5 attributable to this area to the County of Los Angeles. Finally, the resolution contains language stating that the City shall not adopt the ordinance approving a redevelopment plan with respect to the proposed annexation without consulting the County regarding the allocation of taxes. After the City Council adoption of Resolution No. 97-149, the document will be transmitted to LAFCO and will be set for action by the Los Angeles County Board of Supervisors. I;rJMl�; .. u�iCy 1. Specific Plan (previously distributed) 2. Memorandum of Understanding (previously distributed) 3. Final EIR. (forwarded earlier under separate cover) 4. Ordinance No. 97-19 (Specific Plan Zone Change) 5. Ordinance No. 97-20 (Annexation and Development Agreement) 6. Annexation and Development Agreement 7. Resolution No. 97-126 (Certifying the Environmental Impact Report and Adopting a Statement of Overriding Considerations) 8. Resolution No. 97-127 (Approving General Plan Amendment No. 97-001, Tentative Tract Map 51931, Annexation No. 95-006, and Oak Tree Permit 97-009) 9. Resolution No. 97-149 (Approving Tax Transfer) JJL1ep cd.counc11\nvcc1218,jj1 ORDINANCE NO. 97-19 AN ORDINANCE OF CITY COUNCIL OF THE CITY OF SANTA CLARITA APPROVING PREZONE 97.001 (MASTER CASE 97-041) FOR ANNEXATION NO. 95-006 (NORTH VALENCIA) TO ALLOW FOR SPECIFIC PLAN 97-001, WHICH CHANGES THE ZONING CLASSIFICATION FROM LOS ANGELES COUNTY ZONE C2, M1112, and A2-5 TO CITY OF SANTA CLARITA ZONES SPECIFIC PLAN (SP) AND OPEN SPACE (OS) AND AMENDS PORTIONS OF ORDINANCE 96-12, AND ADOPTION OF THE NORTH VALENCIA SPECIFIC PLAN TO ESTABLISH SPECIAL DEVELOPMENT STANDARDS TO ALLOW FOR THE DEVELOPMENT OF A 706.6 ACRE PROPERTY KNOWN AS THE NORTH VALENCIASPECIFIC PLAN AREA LOCATED WITHIN THE 858 ACRE NORTH VALENCIA ANNEXATION AREA IN THE UNINCORPORATED AREA OF LOS ANGELES COUNTY ADJACENT TO THE CITY OF SANTA CLARITA. THE CITY COUNCIL OF THE CITY OF SANTA CLARITA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council does hereby make the following findings of fact: a. The North Valencia Annexation area is approximately 858 acres generally located east of Anza Drive, south of Newhall Ranch Road, west of Bouquet Canyon Road and Valencia Boulevard, and north of Magic Mountain Parkway and the Auto Center in the unincorporated area of Los Angeles County adjacent to the City of Santa Clarita. The North Valencia Specific Plan area is approximately 706.6 acres within the North Valencia Annexation area and is generally located south of Avenue Hopkins and east of Anza Drive and the west side of San Francisquito Creek, south of Newhall Ranch Road, west of Bouquet Canyon Road and Valencia Boulevard, and north of Magic Mountain Parkway and the Auto Center in the unincorporated area of Los Angeles County adjacent to the City of Santa Clarita. In November 1995, the City and the Valencia Company entered into a non- binding Memorandum of Understanding (MOU) regarding certain aspects of the potential annexation of approximately 969 acres or unincorporated area in the North Valencia area. At the time the MOU was adopted, the Valencia Company stated their intention to request approvals for up to 3,690 dwelling units, approximately 850,000 square feet of commercial uses, and 223,000 square feet of industrial uses. Entitlements to be requested at the time of MOU approval included a prezone, an annexation and development agreement, and tract maps. b. A Prezone for the North Valencia Annexation area was approved in March 1996. The City Council authorized the filing of an annexation request with LAFCO in June 1996. Following the prezone, the applicant submitted entitlement requests which are subject to environmental review. The annexation request is on hold at the request of the City, pending approval of the environmental review.document and approval of the requested entitlements. Ord. 97-19 Page 2 C. On June 5; 1996, the applicant submitted the following entitlement requests: (Master Case No. 97-120) Annexation and Development Agreement 96-001, Annexation 95-006, Conditional Use Permit 96-010, TPM 20496 (Builder's South), TPM 20669 (Valencia Industrial Center), TPM 18417 (Pony League), TPM 24516 (Overall Project Area), VTTM 51931 (Lago de Valencia), VTTM 51281 (South River) and VTTM 44832 (Arbor Park). Incomplete letters were sent on these entitlement requests in July and staff noted that an Oak Tree Permit would also be required. In January 1997, the applicant formally withdrew the application for a CUP and all of the tract and parcel maps except for VTTM 51931. The applicant submitted the following entitlement requests: a Specific Plan document including a comprehensive plan of development and development standards for the North Valencia Specific Plan area and Prezone 97-001 to change the zoning within the area to the City zone SP (Specific Plan). Following review of the specific plan document and revised site plan, staff recommended that a general plan amendment be filed in order for the requested entitlements to be consistent with the City's General Plan. On March 12, 1997, the applicant filed a request for an oak tree permit (OTP 97-009) to allow for possible encroachment upon oak trees, and a general plan amendment (GPA 97-001) to: 1) Revise the text of the Land Use Element Valley Center Concept narrative allowing for a North Valencia Specific Plan; and 2) revise the General Plan Land Use Map. d. The applicant requests an annexation, a general plan amendment including an amendment to the text of the Land Use Element Valley Center Concept narrative and an amendment to the Land Use Map, a prezone to specific plan, and adoption of a specific plan document including a comprehensive plan of development and development standards for the North Valencia Specific Plan area. The development application includes the proposed annexation of approximately 858 acres of unincorporated Los Angeles County land located adjacent to the City boundary. The entire 858 acres was previously prezoned to City zoning designations through Ordinance No. 96-12. This request would amend portions of Ordinance No. 96-12 to establish the City of Santa Clarita Zone Specific Plan (SP) over 706.6 acres on the areas known as the North Valencia Specific Plan area. The remaining acreage in the annexation area would remain as previously prezoned by Ordinance No. 96-12. The Specific Plan request includes entitlements for up to 2,000 dwelling units (750 single family detached, 1,250 multi -family attached), 636,000 square feet of commercial/retail, 167,000 square feet of industrial/business park space, a 6.5 -acre elementary school site, a 15.2 - acre lake/park, a 12.4 -acre community park, 4.9 acres of neighborhood parks, 355.6 acres of open space and over 5 miles of trails, Vesting Tentative Tract Map 51931 to subdivide 706 acres into 138 lots, an oak tree permit to allow construction within 200 feet of the oak trees with no removals or encroachments proposed, and review and certification of the Environmental Impact Report (SCH#96071077) prepared for this project. An "Annexation and Development Ord. 97-19 Page 3 Agreement" was also requested, which was presented to and approved by the City Council through Ordinance No. 97-20. e. The original North Valencia Specific Plan request excluded a .5 acre Southern California Gas Facility located on Magic Mountain Parkway; however, this area has been included within the Specific Plan area in accordance with good planning principles. The North Valencia Specific Plan area is bisected by the MWD pipeline property which is excluded from the Specific Plan prezone; however, this area is proposed to be prezoned Open Space (OS) in order to be consistent with the surrounding uses proposed in the Specific Plan. E The General Plan presently designates the project site Commercial Town Center (CTC), Community Commercial (CC), Business Park (BP), and Residential Moderate (RM) with a Valley Center Concept Overlay on the majority of the site. The General Plan does not specifically mention the North Valencia site as an area ideal for a specific plan; however, the site does meet the minimum size of 100 contiguous acres under single ownership as identified in the Specific Plan zoning standards of the City's Unified Development Code. Zoning on the site is presently Los Angeles County zones C2, Ml 1/2, and A2-5 and has already been prezoned City of Santa Clarita zones CTC, CC, BP, and RM. g. The North Valencia Specific Plan area is vacant, generally flat, and was used for agricultural purposes. The portion of the annexation area not included in the Specific Plan is flat and.already developed with industrial and commercial uses. Major features of the annexation area include the Santa Clara River, the South Fork of the Santa Clara River, San Francisquito Creek, Bouquet Creek, a portion of the San Gabriel Fault Alquist-Priolo Special Studies Zone, the MWD aqueduct pipeline and electrical transmission corridors. h. Article 8— Specific Plans Sec. 65451 et sec of the California Planning and Zoning Laws defines the contents which must be included in a specific plan as follows: (a) A specific plan shall include a text and a diagram or diagrams which specify all of the following in detail: (1) The distribution, location, and extent of the uses of land, including open space, within the area covered by the plan. (2) The proposed distribution, location, and extent and intensity of major components of public and private transportation, sewage, water drainage, solid waste disposal, energy, and other essential facilities proposed to be located within the area covered by the plan and needed to support the land uses described in the plan. Ord. 97-19 Page 4 (3) Standards and criteria by which development will proceed, and standards for the conservation, development, and utilization of natural resources, where applicable. (4) A program of implementation measures including regulations, programs, public works projects, and financing measures necessary to carry out paragraphs (1), (2), and (3). (b) The specific plan shall include a statement of the relationship of the specific plan to the general plan. i. Section 17.16.030 of the City's Unified Development Code (UDC) identifies general requirements and performance standards for a specific plan zone. A Specific Plan Zone shall: (a) Include a minimum of 100 contiguous acres. (b) Be determined by the Council after considering the recommendation of the Planning Commission. (c) Provide for the development of a comprehensively planned community within the zone that is superior to development otherwise allowable under alternate regulations. (d) Provide for development within the zone in a manner consistent with the General Plan and with related development and growth policies of the City. (e) Provide for the construction, improvement, or extension of transportation facilities, public utilities, and public services required by development within the zone. The design of the project concentrates development within areas previously used for agricultural uses and includes preservation of approximately 295.6 acres of open space as part of the Santa Clara River Conservation Area as identified in the North Valencia Specific Plan document. The project proposes grading on approximately 281 acres of the 858 acre annexation site. The total amount of grading involves approximately 1.4 million cubic yards of cut and 2.7 million cubic yards of on-site fill and 1.5 million cubic yards of off-site earth to be imported. Movement of 850,000 cubic yards of the necessary off-site fill has been approved from the northeast corner of McBean Parkway and Newhall Ranch Road through Conditional Use Permit 96-013 (MC#96-236) and from the area known as the Center City Specific Plan area located east of the present terminus of Newhall Ranch Road, east of Bouquet Canyon Road. Ord. 97-19 Page 5 k. The City of Santa Clarita prepared an Initial Study for the project which determined that the project may have a significant effect on the environment and that an environmental impact report must be prepared. A Notice of Preparation (NOP) for the annexation, annexation and development agreement, tentative tract maps, conditional use permit, and oak tree permit was mailed in July 1996 to affected agencies. A scoping meeting was held at the Valencia Town Center Conference Room on August 7, 1996 to obtain information from the public as to issues which should be addressed in the environmental document. A substantial revision to the project occurred in January 1997, which included the withdrawal of the conditional use permit application and six of the tentative maps, and the subsequent filing of a request for a prezone, specific plan document, general plan amendment, and revised vesting tentative tract map 51931. Following the revisions to the project, a subsequent NOP was prepared and mailed in May 1997. 1. The North Valencia Specific Plan Draft Environmental Impact Report (DEIR) was circulated for review and comment by the affected governmental agencies and all comments received have been considered. The review period for the DEIR was from August 1, 1997 to September 15, 1997. Late comments were accepted until September 22, 1997 to allow for mail delays. A Final EIR (FEIR) dated October 1997 was prepared in accordance with CEQA and includes the DEIR, responses to comments received on the DEIR, minor corrections and clarifications to the EIR text, and a Mitigation Monitoring and Reporting Program (MMRP). As a result of staff, public and Planning Commission comments on the project and the DEIR., the applicant has made corrections and modifications to the proposed Specific Plan document text and to Vesting Tentative Tract Map 51931. None of these Specific Plan changes or modifications would result in additional environmental impacts. The FEIR was recommended for adoption by the Planning Commission simultaneously herewith pursuant to Resolution P97-19. in. The Planning Commission went on a field visit to the North Valencia site on Saturday, May 31, 1997 at 9:00 a.m., beginning in the Council Chambers for the purpose of becoming familiar with the site and its conditions. n. The City Council held a study session on this project on June 3, 1997 and received an informational report on the status of this project. At that Council Study Session the Council approved a preliminary processing schedule for this project which identified various Planning Commission public hearing dates and specific project topics to be discussed at each of these meetings. The goal of this processing schedule was to reduce redundancy and allow the Commission and the public to better prepare for the meetings. This processing schedule allowed for each issue area of the Draft EIR to be discussed. in a public forum during the Draft EIR public comment period to allow for maximum public participation, with numerous opportunities for the public to ask questions and receive information concerning the environmental document and the project. Ord. 97-19 Page 6 o. The. Planning Commission received an informational presentation about the North Valencia Specific Plan proposal at their regularly scheduled meeting on June 17, 1997, at 7:00 p.m. at the City Council Chambers, 23920 Valencia Boulevard, Santa Clarita. This presentation was given by staff to distribute copies of the proposed North Valencia Specific Plan dated June 1997 and the proposed Vesting Tentative Tract Map 51931 version dated June 13, 1997, to provide the Commission with a background on the project application and to provide the Commission with a review of the entitlements requested. P. The Draft Environmental Impact Report (SCH # 96071077 ) for this project was distributed to the Planning Commission and to the public on August 1, 1997. This document was circulated for a 45 -day public review beginning on August 1, 1997 and ending on September 15, 1997. The public review period was extended one week to end on September 22, 1997 to allow for receipt of letters that may have been delayed in the mail. q. The Planning Commission has held duly noticed public hearings on this issue commencing on July 1, 1997 and continuing on July 9, 1997, July 23, 1997, August 5, 1997, August 13, 1997, August 19, 1997, August 25, 1997, September 2, 1997, September 10, 1997, September 24, 1997, October 7, 1997, October 15, 1997, and October 30, 1997. These public hearings have been held at 7:00 p.m. at City Hall, 23920 Valencia Boulevard, Santa Clarita. r. On October 30, 1997, the Planning Commission adopted a recommendation that the City Council adopt an ordinance approving the requested prezone, annexation, and specific plan document. S. The City Council held duly noticed public hearings on this project commencing on November 4; 1997. Subsequent meetings regarding the project were held on November 25, 1997, December 2, 1997, December 9, 1997, and December 18, 1997. On December 18, 1997, the City Council certified the FEIR for this project (Resolution 97-126), held the first reading of this ordinance, waived further reading of the ordinance, and continued this item for a second reading on January 13,.1998. On January 13, 1997, the City Council having waived further reading, completed the second reading in order to approve the North Valencia Annexation and Specific Plan, including: (a) approval of prezone 97-001 to allow for a, specific plan, which includes a zoning reclassification from Los Angeles County Zone C2, Ml 1/2, and A2-5 to City of Santa Clarita Zone Specific Plan (SP) and Open Space (OS); and (b) the adoption of the Specific Plan document which establishes special development standards for the North Valencia Specific Plan area. With the exception of the December 18, 1997 meeting, all public hearings on the project were held at 6:30 p.m., at the City Council Chambers, 23920 Valencia Boulevard, Santa Clarita. The December 18, 1997 meeting, was held at 8:00 a.m. at the City Council Chambers, 23920 Valencia Boulevard, Santa Clarita. Ord. 97-19 Page 7 SECTION 2. Based upon the above findings of fact, oral and written testimony and other evidence received at the public hearings held for the project, and upon studies and investigations made by the Planning Commission and the City Council and on its behalf, the City Council further finds as follows: a. At the hearings described above, the City Council considered staff presentations, staff reports, Planning Commission staff reports and resolutions, applicant presentations; public testimony on the proposal, and the FEIR prepared for the project. b. The Specific Plan provides for development standards and types of public and private improvements that will not cause serious public health problems, since access, water, sewage disposal, fire protection, and solid waste disposal are addressed in the MMRP and Conditions of Approval. C. The project complies with the general requirements and performance standards for the Specific Plan Zone and the Open Space Zone. The North Valencia Specific Plan is consistent with the intent of the Specific Plan Zone which was created to: facilitate development of certain areas by permitting greater flexibility and consequently, more creative and imaginative designs; promote more economical and efficient use of land while providing a harmonious variety of choices, higher level of amenities, and preservation of natural and scenic qualities of open space and waterways; and ensure that development substantially conforms to the approved plans. The Open Space Zone proposed over the MWD property is consistent with the existing and planned use of the site and with the surrounding uses existing and envisioned in the North Valencia Specific Plan. The area included in the Specific Plan Zone and the Open Space Zone was previously prezoned by adoption of Ordinance 95-12 and that ordinance is herein amended to reflect this prezone request as shown on the attached map (Exhibit A). d. The Final Environmental Impact Report identifies certain significant environmental effects. The Final Environmental Impact Report identifies feasible mitigation measures for each of these impacts with the exclusion of air quality, visual resources, agricultural resources, solid waste disposal, and biota, which cannot be avoided through mitigation. The identified mitigation measures have been incorporated into the Mitigation Monitoring Reporting Plan (MMRP) and conditions of approval for the project. SECTION 3. Based upon the foregoing facts and findings, the City Council hereby finds as follows: a. A FEIR, including the Draft EIR, Responses to Comments, Text Changes to the DEIR and Mitigation Monitoring and Reporting Plan (MMRP), and the Statement of Overriding Considerations for this project have been prepared and circulated in compliance with the California Environmental Quality Act (CEQA). The Ord. 97-19 Page 8 Planning Commission adopted Resolution P97-19 recommending that the City Council certify the FEIR and adopt a Statement of Overriding Considerations. The City Council certified the FEIR and adopted the Statement of Overriding Considerations through adoption of Resolution 97-126. b. This project as modified by the Planning Commission and City Council will not adversely affect the health, peace, comfort or welfare of persons residing in the area; nor be materially detrimental to the use, enjoyment, or valuation of property in the vicinity of the project site; nor jeopardize, endanger or otherwise constitute a menace to the public health, safety, or general welfare since the project conforms with the City's General Plan, Unified Development Code and is compatible with surrounding land uses. C. The applicant has substantiated the findings for approval of a Specific Plan and Zone Change. The Specific Plan document includes the items required of a Specific Plan by Article 8-- Specific Plans Sec 65451 et seq of the California Planning and Zoning Laws. SECTION 4. The City Council hereby approves Prezone.-07,OQ1-cnpsisting of a zone change from Los Angeles County Zone C2, MI 1/2, and A2-5.tp City of Santa\Clarita Specific Plan (SP) and Open Space (OS) as shown on the attached map (Exhibit A), amends portions of Ordinance 96-12, and adopts the North Valencia Specific Plan documentlincluding special development standards) as amended by the Planning Commission_andlthe City Council and herein incorporated by reference (Exhibit B). SECTION 5. This Ordinance shall become effective at 12:01 a.m. on the thirty-first day after adoption. SECTION 6. The City Clerk shall certify as to the passage of this Ordinance and cause it to be published in the manner prescribed by law. Ord. 97-19 Page 9 PASSED AND APPROVED this day of 19_. MAYOR ATTEST: CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) § CITY OF SANTA CLARITA ) I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Ordinance No. was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the day of , 19 . That thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the day of 19 by the following vote, to wit: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS CITY CLERK LHS s:\cd\council\nvlordl.lhs ORDINANCE NO. 97-20 AN ORDINANCE OF CITY COUNCIL OF THE CITY OF SANTA CLARITA APPROVING THE ANNEXATION AND DEVELOPMENT AGREEMENT NO. 96-001 WITH THE VALENCIA COMPANY FOR THE ANNEXATION OF 858 ACRES OF PROPERTY AND THE DEVELOPMENT OF 706.6 ACRES OF SUCH PROPERTY KNOWN AS THE NORTH VALENCIA SPECIFIC PLAN AREA LOCATED SOUTH OF NEWHALL RANCH ROAD, WEST OF BOUQUET CANYON ROAD AND VALENCIA BOULEVARD, NORTH OF MAGIC MOUNTAIN PARKWAY AND THE AUTO CENTER, AND EAST OF ANZA DRIVE THE CITY COUNCIL OF THE CITY OF SANTA CLARITA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The City Council does hereby make the following findings of fact: a. A prezone (MC: 95-242 / PZ: 95-006) was approved on April 16, 1996 by the City Council for portions of the North Valencia Annexation area through Ordinance No. 96-12. An annexation request for the North Valencia Annexation (Annexation No. 95-006) was filed with LAFCO in June, 1996 following the direction of the Council on June 11, 1996 (Resolution 96-84). Following the prezone and filing of the annexation request by the City, the Valencia Company ("Applicant") submitted the entitlement requests noted below for a portion of the annexation area known as the North Valencia Specific Plan Area. The City's annexation request is on hold at LAFCO at the request of the City and the applicant pending approval of the project's environmental review document and entitlement requests. b. On June 5, 1996, the applicant submitted the following entitlement requests (Master Case No 96-120): Annexation and Development Agreement 96-001, Annexation 95-006, Conditional Use Permit 96-010, TPM 20496 (Builder's South), TPM 20669 (Valencia Industrial Center), TPM -18417 (Pony League), TPM 24516 (Overall Project Area), VTTM 51931(Lago De Valencia), VTTM 51281 (South River) and VTTM 44832 (Arbor Park). Incomplete letters were sent on these entitlement requests in July with staff noting that an Oak Tree Permit would also be required. In January 1997, the applicant formally withdrew the application for a conditional use permit and all of the tract and parcel maps with the exception of VTTM 51931. The applicant then submitted the following entitlement requests: a Specific Plan document including a comprehensive plan of development with specialized development standards for the North Valencia Specific Plan area; Prezone 97-001 to change the zoning within the area to the City's SP (Specific Plan) zoning designation; Oak Tree Permit 97-009 to allow for possible encroachment upon oak trees; and General Plan Amendment 97-001 amending the text of the Land Use Element Valley Center Concept narrative to allow for a North Valencia Specific Plan, as well as an amendment to the General Plan Land Use Map. c. The development application includes the proposed annexation of approximately 858 acres of unincorporated Los Angeles County land located adjacent to the City boundary. The applicant's request amends portions of Ordinance No. 96-12 to establish the City of Santa Clarita prezone SP (Specific Plan) over 706.6 acres of the proposed annexation area: the remaining acreage in the annexation area will be as previously prezoned by Ordinance No. 96-12. The Specific Plan request includes entitlements for up to 2,000 dwelling units (750 single family detached, 1,250 multi -family attached), 636,000 square feet of commercial/retail use, 167,000 square feet of industrial/business park space, a 6.5 -acre elementary school site, a 15.2 -acre lake/park, a 12.4 -acre community park, 4.9 acres of neighborhood parks, 355.6 acres of open space, and over 5 miles of community trails, Vesting Tentative Tract Map 51931 to subdivide 706.6 acres into 138 lots, an Oak Tree Permit to allow construction within 200 feet of the oak trees with no removals or encroachments currently proposed, and review and certification of the Environmental Impact Report (SCH#96071077) prepared for the project. The site is known as the North Valencia Specific Plan area and is generally located south of Newhall Ranch Road, west of Bouquet Canyon Road and Valencia Boulevard, north of Magic Mountain Parkway and the Auto Center, and east of Anza Drive. d. The Annexation and Development Agreement has been processed concurrently with the entitlement requests listed in Section 1(c) above. The approval of General Plan Amendment 97-001 would designate the site as SP (Specific Plan) and would implement the Valley Center Concept of the General Plan. The Annexation and Development Agreement is consistent with the City's General Plan and Zoning Land Use classifications, and the intensity of development allowed in the Specific Plan area with: 1) Council approval of the Specific Plan General Plan Amendment; 2) approval of a zone change on the property to SP. (Specific Plan); 3) adoption of the project's Specific Plan Document; 4) approval of a zone change for the Metropolitan Water District (MWD) site to OS (Open Space); 5) approval of Vesting Tentative Tract Map 51931; 6) approval of Oak Tree Permit 97-009; and 7) review and certification of the Environmental Impact Report prepared for the project. e. The City Council's approval of Ordinance 97-19 prezones 706.6 acres of the annexation property to SP (Specific Plan). City Council adoption of Resolution 97-126 certifies the Final Environmental Impact Report for the project, and Council adoption of Resolution 97-127 approves the project's entitlements as listed above. With these actions complete, the Annexation and Development Agreement is found to be consistent with the goals, policies, general land uses and implementation programs contained in the General Plan, including the Circulation Element. Furthermore, the Annexation and Development Agreement makes reasonable provision for the use of certain real property for commercial, industrial, residential, public facilities and parks, and open space development. f. The Annexation and Development Agreement was processed in the time and manner prescribed by State and local law. g. The Planning Commission held duly noticed public. hearings on the North Valencia Annexation and Specific Plan (and related entitlements) commencing on July 1, 1997 and continuing on July 9, 1997, July 23, 1997, August 5, 1997 August 13, 1997, August 19, 1997, August 25, 1997, September 2, 1997, September 10, 1997, September 24, 1997, October 7, 1997, October 15, 1997, and October 30, 1997. These public hearings have been held at 7:00 p.m. at the City Council Chambers, 23920 Valencia Boulevard, Santa Clarita. h. Discussion specifically regarding the deal points of the Annexation and Development Agreement were held by the Planning Commission at the public hearings of October 15, 1997 and October 30, 1997. These hearings were held at the City Hall Orchard Rooms and City Council Chambers, respectively, at 23920 Valencia Boulevard, Santa Clarita, commencing at 7:00 p.m. At these hearings the Planning Commission received staff reports and testimony from the public and the applicant. i. The City Council held duly noticed public hearing on the North Valencia project commencing on November '4, 1997. Subsequent meetings regarding the project were held on November 25, 1997, December 2, 1997, December 9, 1997, and December 18, 1997. On December 18, 1997, the City Council certified the FEIR for this project (Resolution No. 97-126), approved the project entitlements (Resolution 97-127), held the first reading of this ordinance, waived further reading of the ordinance, and continued the item for a second reading on January 13, 1998. On January 13, 1998, the City Council having waived further reading, completed the second reading in order to approve the North Valencia Annexation and Development Agreement. With the exception of the December 18, 1997 meeting, all of the public hearings were held at 6:30 p.m., at the City Council Chambers, 23920 Valencia Boulevard, Santa Clarita. The December 18, 1997 meeting was held at 8:00 a.m., at the City Council Chambers 23920 Valencia Boulevard, Santa Clarita. SECTION 2. Based upon the above findings of fact, oral and written testimony and other evidence received at the public hearings held for the project, and upon studies and investigations made by the City Council and on its behalf, the City Council further finds as follows: a. At the hearings described above, the City Council considered staff presentations, staff reports, Planning Commission resolutions, applicant presentations, and public testimony on the Annexation and Development Agreement. b. The 15 -year Annexation and Development Agreement includes, but is not limited to, the following deal -points: 1. Annexation Cooperation. The applicant and the City will cooperate to complete the annexation of the Annexation Area into the City. 2. Santa Clara River Conservation Area. The applicant will convey 295.6 acres of the Santa Clara River, for $1.5 million, to the City, subject to a river conservation easement granted to the California Department of Fish and Game. The boundaries of the River Conservation Area and contiguous Planning Areas may be modified upon the mutual agreement of the applicant and City. An approved Corps of Engineers Permit will establish boundaries where bank stabilization work will be permitted. If such boundaries are revised, the City agrees to make corresponding minor modifications to the River Conservation Area and contiguous Planning Area boundaries, consistent with the Specific Plan. 3. River Improvements. The Development Agreement incorporates a "System for Landscaping and Improvement of River Conservation Area." This System will include the following: a list of pre -approved plants, trees, flowers, bushes, etc. that may be planted within the River Conservation Area; a list of the types of pre -approved improvements that may be made within and along the River Conservation Area; specification of maintenance criteria for landscaping and improvements; a phasing plan for installing landscaping and improvements; a requirement that the applicant expend $1.5 million on River Conservation Area landscaping and improvements for habitat enhancement and recreational use; release of the applicant's responsibility for maintenance, repair, replacement and restoration of applicant installed landscaping and other improvements (with the exception of any required riparian mitigations in the river adjacent to the project's Lago de Valencia planning area. The agreement recognizes that the cost of River Conservation Area landscaping and improvements is likely to exceed the $1.5 million commitment by the applicant and provides that if the cost of such exceeds $1.5 million, the City shall use reasonable efforts to reimburse the applicant for such excess to the extent that the City has funds available from grants or other sources. 0 4. Bank Stabilization. The area disturbed due to the implementation of the Buried Bank Stabilization Option will be revegetated and preserved as high quality upland habitat (after construction of the buried bank stabilization element). 5. Maintenance. The applicant shall work with the City to establish a Landscape Maintenance District for the maintenance of improvements. 6. Buried Bank Stabilization Materials. The applicant will be permitted to use gunite, grouted rip -rap, ungrouted rip -rap, soil cement or other approved bank stabilization materials throughout the Annexation Project as approved by the City. When bank stabilization has been completed within the River Conservation Area and the City has accepted the work, the City shall thereafter be responsible for the maintenance, repair, replacement • and restoration of all stabilization materials used within the accepted area. Upland Preserve Zone. The property withintheupland preserve zone will become a habitat preserve, and will cease being used for agricultural and farmland purposes. 8. Lake Park Access. The applicant will include in the Lago de Valencia CC & R's a provision describing the public's access rights (through the paseo and City's trail system) to the Lake Park, in accordance with the Specific Plan. 9. Pony League Ballfields. Following the completion of development of the commercial portion of the Pony League Planning Area, the applicant will provide the William S. Hart Pony League with a 15 year lease for the use of the playing fields, and will provide a signalized intersection on Valencia Boulevard with access available during all phases of construction. 10. Light Rail Right -of Way. Nothing in the Specific Plan, the Annexation and Development Agreement or any other project approval will preclude future actions by the City to identify and reserve commuter rail and commuter rail stations in locations currently under review in the Southern California Association of Governments Ventura - Santa Clarita Rail Right -of -Way Restoration Study. 11. Valencia Industrial Center - Bus Stop Pads. The applicant will install 8' x 20' bus stop pads at up to 20 locations within the Valencia Industrial Center at locations to be agreed upon by the applicant and the City. 12. Roads to City Standards. New roads will be constructed to City standards, as opposed to County standards. 13. Landscaped Center Medians. Roads improved to major highway standards within and adjacent to the Specific Plan Project will provide landscaped center medians designed to City standards. 14. Traffic Calming Measures. Traffic .calming measures will be included in the Specific Plan Project to reduce traffic speed and enhance safety. 15. Elementary School Site. In accordance with the terms of an agreement between Saugus Union School District and the applicant, a 6.5 acre school site will be conveyed to the Saugus Union School District, within the project's Lago de Valencia planning area. The site will be centrally located and integrated into the City's trail and paseo system. 16. Improvement of Community Park. The applicant will dedicate and improve (with turf, two baseball diamonds, one baseball backstop, shade structure, picinci tables, two soccer fields, a ply structure and mature trees) a 12.4 acre community park in the project's Lago de Valencia planning area. The park will be available for joint use in connection with the opening of the elementary school, and will also include an area for a multi-purpose building. A joint use agreement will be entered into between the City and the Saugus Union School District. In addition, the applicant will work to acquire permission to use and improve the adjacent six acre MWD property for additional park lands. 17. Extension of City's River Trail System. The project will include a 5.5 mile extension of the City's river trail system, and the construction of bike trails, as identified in the project's conditions of approval. This area of extension is in addition to the River Conservation Area. 18. Neighborhood Parks. The applicant will dedicate and construct two neighborhood parks of 2.2 and 2.7 acres respectively. The 2.7 acre park will be located in the project's Lago de Valencia planning area, adjacent to the river trail and River Conservation Area. The 2.2 acre park will be located in the project's South River Village and will provide a staging area for access to the river trail and River Conservation Area. 19. Pedestrian Overcrossing Bridges. Two pedestrian bridges, one over McBean Parkway and one over Newhall Ranch Road, will be constructed. 0 20. Design of Commercial Sites. be pedestrian -friendly and traffic wherever possible. Commercial sites will be designed to to avoid conflicts with on-site auto 21. Avenue Scott Crossing on San Francisquito Creek. The existing at grade crossing of Avenue Scott at San Francisquito Creek will be upgraded to a bridge crossing. 22. Elimination of Uncertainty. The Annexation and Development Agreement will eliminate uncertainty in planning for and securing orderly development of the Annexation Project. 23. Installation of Infrastructure Improvements. The Annexation and Development Agreement assures progressive installation of infrastructure improvements. 24. The Annexation and Development Agreement confirms that all discretionary project approvals are complete unless deemed otherwise by the Specific Plan. 25. The Annexation and Development Agreement allows for flexibility in final design by allowing for administrative modifications, modifications to the size and configuration of commercial, industrial and residential lots, modifications to design and configuration of the planning areas of Lago de Valencia and South River Residential tracts, and modifications to lot design standards. Such modifications are subject to the Annexation and Development Agreement's Applicable Rules, the project's Specific Plan and the project's conditions of approval, and are subject to the approval of the Director of Planning and Building Services. The applicant will not be permitted to increase the number of residential units in the project, or increase the amount of square feet of commercial/industrial area approved under the Annexation and Development Agreement modification provisions. 26. The Annexation and Development Agreement confirms the vesting of Annexation Project Approvals including the rules, regulations, official policies, fees, and exactions as of the date that Valencia's application for VTTM 51931 was deemed complete. 27. Bridge and Thoroughfare Fees/Roadway Improvements. The City and the applicant confirm that they anticipate a Bridge and Thoroughfare District ("B&T District") to be formed to finance the acquisition, development and maintenance of transportation improvements subject to approval by Los Angeles County of such district. Additional transportation improvements lying outside of the B&T District (as identified in the EIR) may also be required to mitigate the Annexation Project's traffic impacts ("Non-B&T Improvements). The applicant's B&T Fees shall not exceed the lesser of the City's or the County's B&T fees when formed, subject to annual increases in accordance with the CPL The applicant will be responsible for its share of the costs of Non-B&T Improvements (as agreed upon by the City) and the applicant's share shall not exceed that amount. B&T fees shall be payable, or secured, at issuance of building permits. 28. Transit Fees. The Annexation and Development Agreement provisions require the developer to pay the appropriate transit fees up front in order to commence the construction of the City's new transit station, located at McBean and Valencia Boulevard. 29. Infrastructure Phasing Plan. The Annexation and Development Agreement confirms that the Infrastructure Phasing Plan, as identified in the Specific Plan, serves and fulfills the same purpose as a Development Monitoring System ("DMS"), and that if the City adopts a DMS, the Infrastructure Phasing Plan shall be deemed consistent with and will satisfy the DMS. 30. Reimbursement. The Annexation and Development Agreement will provide for reimbursement by other developers on a fair share basis for any amounts the applicant expends for public improvements benefitting lands outside of the Annexation Project area. 31. Satisfaction of Parkland Obligations. The Annexation and Development Agreement provides that the dedication of various parks fully satisfy any and all parkland dedication requirements applicable to the Annexation Project and each of the Planning Areas and that no further dedications or in -lieu fees will be required. To the extent that parks and other recreation areas exceed the City's parkland requirements, the applicant shall be authorized to transfer credits for such excess to other Valencia/Newhall projects located outside of the Project area. 32. Public Financing Mechanisms. The City acknowledges that the applicant may seek to utilize the establishment of Mello -Roos Community Facilities Districts pursuant to Section 53311, gel. sea., covering all or a portion of the Property, to enable the issuance of bonds for improvements contemplated under the Annexation and Development Agreement. The City shall cooperate with the applicant in establishing such districts as follows: (1) for all non-residential areas of the Project, (2) for residential areas of the Project, only if provision is made to pay off bonds issued by such district which encumber any residence, prior to occupancy of that residence, unless the City Council specifically approves a district absent the forgoing condition, and (3) City will not object to agreements made by and between the applicant and public agencies other than City for establishment of such districts. 33. Standard Development Agreement Provisions. The Annexation and Development Agreement will be 15 years, provided that, as to any lot or parcel for which a final map has been recorded by development has not been completed, the term of the Annexation and Development. Agreement and the Applicable Rules shall remain in effect for an additional five-year period. C. The Annexation and Development Agreement is consistent with the General Plan and Specific Plan as amended by the City Council (General Plan Amendment 97-001). d. The Annexation and Development Agreement complies with the Development Code and other applicable ordinances, standards, policies, and regulations, including such standards as identified in the project's approved Specific Plan. e. The Annexation and Development Agreement will not: 1. Adversely affect the health, peace, comfort or welfare of persons residing or working the surrounding area; 2. Be materially detrimental to the sue, enjoyment, or valuation of property of other persons located in the vicinity of the site; or, 3. Jeopardize, endanger, or otherwise constitute a menace to the public health, safety, or general welfare. f. The Annexation and Development Agreement provides for clear and substantial public benefit to the City and residents along with a schedule for delivery of the benefit. g, The Annexation and Development Agreement provides a schedule for the development to be constructed in phases to be initiated within specified time periods. W h. The construction of public facilities are required in conjunction with the development including, but not limited to, vehicular or pedestrian rights of way, drainage and flood control facilities, parks and other recreational facilities, community trails, sewers or sewage treatment facilities, and road improvements adequate to serve the development. The Annexation and Development Agreement, together with the Specific Plan and adopted conditions of approval, satisfies the following findings of Section 17.030.010 of the Unified Development Code: 1. Provides for the prohibition of one or more uses normally listed as permitted and/or accessory, subject to the Director's review, or subject to permit in the zone where placed; and, 2. Limits future development and specifies conditions under which further development, not included within the agreement would occur; and, 3. Requires a faithful performance bond where deemed necessary to, and in amount deemed sufficient to, guarantee the faithful performance of specified terms, conditions, restrictions, and/or requirements of the agreement. In lieu of the required bond, the applicant may deposit with the City Clerk and assign to the City, certificates of deposit or savings and loan certificates or shares equal in amount to the same conditions as set forth herein; and, 4. Requires specified design criteria for the exteriors of building and other structures, including signs; and, 5. Requires special yards, open spaces, and buffer areas, fences and walls, landscaping, and parking facilities, including vehicular and pedestrian ingress and egress; and, 6. Regulates nuisance factors such as noise, vibration, smoke, dust, dirt, odors, gases, garbage, heat, and the prevention of glare or direct illumination of adjacent properties; and, 7. Regulates operating hours and other characteristics of operation adversely affecting normal neighborhood schedules and functions on surrounding property. SECTION 3. Based upon the foregoing facts and findings, the City Council hereby finds as follows: a. A Final Environmental Impact Report (FEIR), Mitigation Monitoring and Reporting Plan (MNIRP), and Statement of Overriding Considerations for this project have been prepared, circulated in compliance with the 10 California Environmental Quality Act (CEQA), and adopted as certified as required by the Act. b. The project is compatible with existing development in the area, and consistent with the City's General Plan and Zoning as amended (General Plan Amendment 97-001). C. The applicant has substantiated the findings for approval of a 15 -year Annexation and Development Agreement. SECTION 4. The City Council hereby approves Annexation and Development Agreement 96-001. SECTION 5. This Ordinance shall become effective at 12:01 a.m. on the thirty- first day after adoption. SECTION 6. The City Clerk shall certify as to the passage of this Ordinance and cause it to be published in the manner prescribed by law. 11 PASSED AND APPROVED this day of '19—. MAYOR ATTEST: CITY CLERK STATE OF CALIFORNIA COUNTY OF LOS ANGELES ) § CITY OF SANTA CLARITA ) I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Ordinance No. 97-20 was regularly introduced and placed ;upon its first reading at a regular meeting of the City Council on the_day of 19_. That thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the_day of . 19_by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: JJL:JDR:lep coundhord9720.jdr IN CITY CLERK RESOLUTION NO. 97-126 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA RECOMMENDING CERTIFICATION OF FEIR SCH#96071077, AND RECOMMENDING ADOPTION OF A STATEMENT OF OVERRIDING CONSIDERATIONS THAT WEIGHS PROJECT BENEFITS AGAINST THE PROJECTS SIGNIFICANT UNAVOIDABLE IMPACTS FOR MASTER CASE NOS. 95-242, 96-120, 97-041, 97-063 FOR ANNEXATION NO. 95-006 (NORTH VALENCIA), GENERAL PLAN AMENDMENT 97-001 TO THE LAND USE ELEMENT TEXT AND LAND USE MAP, PREZONE 97-001 TO SPECIFIC PLAN (SP) AND OPEN SPACE (OS), ANNEXATION AND DEVELOPMENT AGREEMENT 96-001, VESTING TENTATIVE TRACT MAP 51931, OAK TREE PERMIT 97-009 AND HAUL ROUTE TO ALLOW FOR THE 858 ACRE NORTH VALENCIA ANNEXATION AND DEVELOPMENT OF A 706.6 ACRE PROPERTY WITHIN THE ANNEXATION AREA KNOWN AS THE NORTH VALENCIA SPECIFIC PLAN AREA THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council does hereby make the following findings of fact: a. The North Valencia Annexation area is approximately 858 acres generally located east of Anza Drive, south of Newhall Ranch Road, west of Bouquet Canyon Road and Valencia Boulevard, and north of Magic Mountain Parkway and the Auto Center in the unincorporated area of Los Angeles County adjacent to the City of Santa Clarita. The North Valencia Specific Plan area is approximately 706.6 acres within the North Valencia Annexation area and is generally located south of Avenue Hopkins and east of Anza Drive and the west side of San Fran cisquito Creek, south of Newhall Ranch Road, west of Bouquet Canyon Road and Valencia Boulevard, and north of Magic Mountain Parkway and the Auto Center in the unincorporated area of Los Angeles County adjacent to the City of Santa Clarita. b. In November 1995, the City and the Valencia Company. entered into a non- binding Memorandum of Understanding (MOU) regarding certain aspects of the potential annexation of approximately 969 acres of unincorporated area in the North Valencia area. At the time the MOU was adopted, the Valencia Company stated their intention to request approvals for up to 3,690 dwelling units, approximately 850,000 square feet of commercial uses, and 223,000 square feet of industrial square footage. Entitlements to be requested at the time of MOU approval included a prezone, an annexation and development agreement, and tract maps. C. A prezone (MC: 95-242, PZ: 95-006) was approved on April 16, 1996 by the City Council for portions of the North Valencia Annexation area through Ordinance Re" 97.126 No. 96-12. An annexation request for the North Valencia Annexation (Annexation No. 95-006) was filed with LAFCO in June, 1996 following the direction of the City Council on June 11, 1996 (Resolution 96-84). Following the prezone and filing of the annexation request by the City, the Valencia Company, herein referred to as the 'applicant", submitted the entitlement requests noted above for a portion of the annexation area known as the North Valencia Specific Plan Area, which are subject to environmental review. The City's annexation request is on hold at LAFCO at the request of the City and the applicant pending approval of the environmental review document and the above entitlements. d. On June 5, 1996, the applicant submitted the following entitlement requests (Master Case No. 96-120): Annexation and Development Agreement 96-001, Annexation 95.006, Conditional Use Permit 96-010, TPM 20496 (Builder's South), TPM 20669 (Valencia Industrial Center), TPM 18417 (Pony League), TPM 24516 (Overall Project Area), VTTM 51931 (Valencia Del Lago), VTTM 51281 (South River) and VTTM 44832 (Arbor Park). Incomplete letters were sent on these entitlement requests in July with staff noting that an Oak Tree Permit would also be required. In January 1997, the applicant formally withdrew the application for a conditional use permit and all of the tract and parcel maps except for VTTM 51931. The applicant then submitted the following entitlement requests: a Specific Plan document, including a comprehensive plan of development and development standards for the North Valencia Specific Plan area, and Prezone 97-001 to change the zoning within the area to the City zone SP (Specific Plan). Following review of the Specific Plan document and revised site plan, staff recommended that a general plan amendment be filed in order for the. requested entitlements to be consistent with the City's General Plan. On March 12, 1997 the applicant filed a request for an oak tree permit (OTP: 97-009) to allow for possible encroachment upon oak trees; and a general plan amendment (GPA: 97-001) to modify the text of the Land Use Element Valley Center Concept narrative to allow for a North Valencia Specific Plan, and to also allow for an amendment to the Land Use Map. The development application includes the proposed annexation of approximately 858 acres of unincorporated Los Angeles County land located adjacent to the City boundary. This request would amend portions of Ordinance No. 96-12 to establish the City of Santa Clarita prezone Specific Plan (SP) over 706.6 acres on the areas known as the North Valencia Specific Plan area. The remaining acreage in the annexation area would remain as previously prezoned by Ordinance No. 96-12. The Specific Plan request includes entitlement for up to 2,000 dwelling units (750 single family detached, 1,250 multi -family attached), 636,000 square feet of commercial/retail, 167,000 square feet of industrial/business park space, a 6.5 -acre elementary school site, a 15.2 -acre lake/park, a 12.4 -acre community park, 4.9 acres of neighborhood parks, 355.6 acres of open space and over 5 miles of community trails, a Vesting Tentative Tract Map (VTTM 51931) to subdivide 706 acres into 138 lots, an oak tree permit 2 Res 97-126 to allow construction within 200 feet of the oak trees with no removals or encroachments currently proposed, and review and certification of the Environmental Impact Report (SCH#96071077) prepared for the project. e. The original North Valencia Specific Plan request excluded a .6 acre Southern California Gas Facility located on Magic Mountain Parkway; however; the City proposes to include this area within the Specific Plan area to avoid the issue of spot zoning. The North Valencia Specific Plan area is bisected by the approximately 13 acre Metropolitan Water District (MWD) property which is excluded from the Specific Plan prezone; however, the City proposes to prezone this area Open Space (OS) in order to be consistent with the surrounding uses proposed in the Specific Plan. f. On June 25, 1991, the City Council adopted Resolution No. 91-98, adopting the General Plan of the City of Santa Clarita and Certifying the Environmental Impact Report. The City's General Plan presently designates the annexation area as Commercial Town Center (CTC), Community Commercial (CC), Business Park (BP), and Residential Moderate (RM), with a Valley Center Concept (VCC) Overlay on the majority of the site and a Significant Ecological Area (SEA) Overlay over the Santa Clara River and San Francisquito Creek. The General Plan does not specifically mention the North Valencia site as an area ideal for a specific plan; however, the site does meet the minimum size of 100 contiguous acres under single ownership as identified in the Specific Plan zoning standards of the City's Unified Development Code . Zoning on the site is presently Los Angeles County zones C2, M1V2, and A2-5 and has already been prezoned City of Santa Clarita zones CTC (Commercial Town Center), CC (Community Commercial), BP (Business Park), and RS (Residential Moderate). g. The North Valencia Specific Plan area is vacant, generally flat, and was used for agricultural purposes. The approximately 153 acres of the annexation area that is excluded from the Specific Plan is flat and improved with industrial, commercial and public utility uses. Major features of the annexation area include the Santa Clara River, the South Fork of the Santa Clara River, San Francisquito Creek, Bouquet Creek, a portion of the San Gabriel Fault Alquist-Priolo Special Studies Zone, the MWD aqueduct pipeline and electrical transmission corridors. h. The design of the project concentrates development within areas previously used for agricultural uses and includes preservation of approximately 348.3 acres of the Santa Clara River and San Francisquito Creek and 84 acres of upland buffer area located adjacent to the River and Creek as identified in the North Valencia Specific Plan document. The project proposes grading on approximately 281 acres of the 858 acre project site. The total amount of grading involves approximately 1.4 million cubic yards of cut and 2.7 million cubic yards of on-site fill, with earth to be imported from the northeast corner of McBean Parkway and Newhall Ranch Road through Conditional Use Permit No. 96-013 (MC#96-236) Resp 97.126 and from the area known as the Center City Specific Plan area located east of the present terminus of Newhall Ranch Road, east of Bouquet Canyon Road. i. The City of Santa Clarita prepared an Initial Study for the project which determined that the project may have a significant effect on the environment and that an environmental impact report must be prepared: A Notice of Preparation (NOP) for the annexation, annexation and development agreement, tentative tract maps, conditional use permit and oak tree permit was mailed in July 1996 to affected agencies. A scoping meeting was held at the Valencia Town Center Conference Room on August 7, 1996 to obtain information from the public as to issues which should be addressed in the environmental document. Following a revision to the project with the withdrawal of the conditional use permit application, withdrawal of tentative tract maps and submittal of the prezone, specific plan document, general plan amendment, and revised Vesting Tentative Tract Map 51931 applications, a subsequent NOP was prepared and mailed in May 1997.. j. The Planning Commission went on a field visit to the North Valencia site on Saturday, May 31, 1997 at 9:00 a.m., beginning in the Council Chambers for the purpose of becoming familiar with the annexation and Specific Plan area. k. The City Council held a study session on this project on June 3, 1997 and received an informational report on the status of this project. At that Council Study Session the Council approved a preliminary processing schedule for this project which identified various Planning Commission public hearing dates and specific project topics to be discussed at each of these meetings. The goal of this processing schedule was to reduce redundancy and allow the Commission and the public to better prepare for the meetings. This processing schedule allowed for each issue area of the Draft Environmental Impact Report (DEIR) to be discussed in a public forum during the DEIR public comment period, allowing for maximum public participation with numerous opportunities for the public to ask questions and receive information concerning the environmental document and the project. 1. The Planning Commission received an informational presentation about the North Valencia Specific Plan proposal at their regularly scheduled meeting on June 17, 1997, at 7:00 p.m. at the City Council Chambers, 23920 Valencia Boulevard, Santa Clarita. This presentation was given by staff to distribute copies of the proposed North Valencia Specific Plan dated June 1997 and the proposed Vesting Tentative Tract Map 51931 version dated June 13, 1997, to provide the Commission with a background on the project application, and to provide the Commission with a review of the entitlements requested. M. The North Valencia Specific Plan DEIR (SCH#96071077) was circulated for review and comment by the affected governmental agencies and all comments received have been considered. The DEIR. was distributed to the Planning 4 Reso 97.126 Commission, the public and affected governmental agencies for a 45 -day public review period beginning on August 1, 1997 and ending on September 15, 1997. Late comments were accepted until September 22, 1997 to allow for mail delays. n. Following the processing schedule set by the Council on June 3, 1997, the Planning Commission held duly noticed public hearings on the North Valencia Annexation and Specific Plan and related entitlements commencing on July 1, 1997 and continuing on July 9, 1997, July 23, 1997, August 5, 1997, August 13, 1997, August 19, 1997, August 25, 1997, September 2, 1997, September 10, 1997, September 24, 1997, October 7, 1997, October 15, 1997, and October 30, 1997. These public hearings have been held at 7:00 p.m. at the City Council Chambers, 23920 Valencia Boulevard, Santa Clarita. Five of the public hearings were held between August 5, 1997 and September 2, 1997 which was during the public comment period. These public hearings were held for the purpose of providing an opportunity for the Commission and the public to consider focused discussions on each of the environmental issue areas discussed in the DEIR. These hearings, however, did not limit the public testimony to the topic at hand, but allowed for comments/questions regarding all materials presented throughout the DEIR. o. The DEIR prepared for the project identified an option for bank stabilization at the River/Creek edge: as termed throughout the DEIR, the "proposed project" included the placement of 2.7 miles of bank stabilization along the edge of the Santa Clara River and San Francisquito Creek. This bank stabilization would be visible from within the project site and would also be visible to the public along major roadway corridors. The option presented in the DEIR included the use of buried bank stabilization set back from the River/Creek edge approximately 100 feet. The Buried Bank Stabilization Option was identified and mitigated separately throughout the DEIR, as the impacts of this option differed from the impacts of the proposed project (which incorporated bank stabilization along the edge of the River/Creek). During the course of the public hearings, the Planning Commission determined that the Buried Bank Stabilization Option was the preferred option. However, the Commission received public testimony from the project biologist and a third party biologist indicating that, with heavy revegetation efforts, a 75 foot setback from the River edge in the project's Lago de Valencia planning area was adequate. The Commission therefore accepted a setback approximately 25 feet less than what was originally analyzed in the DEIR. for the Lago de Valencia planning area only, and has recommeded that the City Council also accept such a setback. P. The Final Environmental Impact Report (Final EIR) herein incorporated by reference as Exhibit A, includes the DEIR and the following: responses to written comments on the DEIR, responses to public testimony regarding DEIR issues raised at the public hearings during the public comment period, modifications to Reap 97.126 the DEIR text, and the Mitigation Monitoring and Reporting Program (MMRP). The DEIR was provided to the Commission on August 1, 1997 and the remaining Final EIR documents were prepared and provided to the Planning Commission on October 3, 1997. The Proposed Specific Plan Text dated June 1997, herein incorporated by reference as Exhibit B, also contains specific development standards and policies that mitigate potential environmental impacts which were considered by the Planning Commission. Discussions regarding the annexation and development agreement commenced during the public hearing of October 15, 1997, and continued at the hearing on October 30, 1997. The Planning Commission considered the Draft EIR, the Final EIR, information provided in staff reports, the general plan amendment text, the proposed specific plan, the entitlement requests, the deal points of the annexation and development agreement, and public testimony prior to recommending project approval to the City Council. q. A duly noticed public hearing was held by the City Council on November 4th, 1997, commencing at 6:30 p.m. at the City Council Chambers, 23920 Valencia Boulevard, Santa Clarita. At this meeting, the Council considered the project's Draft EIR, the Final EIR, information provided in staff reports, the general plan amendment text, the proposed specific plan document, the entitlement requests, the proposed prezone for the property, the Annexation and Development Agreement, the Planning Commission's considerations, and public testimony regarding the project. The public hearing for the project was continued, with subsequent meetings being held on November 25, 1997, December 2, 1997, December 9, 1997, and December. 18, 1997. The City Council formally closed the public hearing on December 9, 1997, and continued the item for action to the meeting of December 18, 1997. The meeting of December 18 was held at 8:00 a.m. at the City Council Chambers, 23920 Valencia Boulevard, Santa Clarita. SECTION 2. The City Council of the City of Santa Clarita does hereby make the following findings of fact: a. The California Environmental Quality Act (CEQA) requires decision -makers to balance the benefits of a proposed project against its unavoidable environmental impacts. If the benefits of a proposed project outweigh the unavoidable adverse environmental effects, the adverse effects may be considered "acceptable' by adopting a "Statement of Overriding Considerations." This statement sets forth the project benefits or reasons why the Lead Agency is in favor of approving and weighs these benefits against the project's adverse environmental impacts identified in the Final Environmental Impact Report that cannot be mitigated to a level less than significant. b. CEQA requires decision -makers to adopt a mitigation monitoring and reporting program (MMRP) for those mitigation measures which are conditions of the Resp 97-I26 SECTION 3. The City Council does hereby find that the Final EIR for the North Valencia Annexation 95-006, Prezone 97-001, General Plan Amendment 97-001, North Valencia Specific Plan 97-001, Vesting Tentative Tract Map 51931, and Oak Tree Permit 97-009 identifies cumulative project impacts and project specific impacts. Environmental impacts identified in the Final EIR are summarized as follows: a. The DEIR, herein incorporated by reference as Exhibit. A, identifies the following issue areas as significant but unavoidable: Air Quality; Visual Resources; Agricultural Resources; Solid Waste Disposal; and Biota. b. The DEIR identifies the following issue areas as significant but feasibly mitigable to a less than significant level: Geotechnical Hazards; Flooding; Noise; Cultural Resources; Human Made Hazards; Traffic/Access; Water Service; Wastewater Disposal; Utilities (Energy Resources); Fire Protection; Sheriff Services; Parks and Recreation; Library Services; Education; and Population/ Housing/Employment. A mitigation monitoring reporting program has been prepared to mitigate these potentially significant impacts to a less than significant level and is included as part of the Final EIR. c. The DEIR identifies the following issue areas as less than significant: Biota - Creation of Upland Preserve Zone; and Parks and Recreation - Connection to Existing Trail System. SECTION 4. Based upon the testimony and other evidence received, and upon studies and investigation made by theCity Council and on its behalf, the City Council further finds: a. That the Final Environmental Impact Report for this project is adequate, complete, and has been prepared in accordance with the California Environmental Quality Act (CEQA). b. That the City Council has reviewed and considered the Final EIR in reaching its recommendation. c. That changes and alterations have been required and incorporated into the North Valencia Specific Plan and related entitlements which avoid or substantially lessen the significant environmental effect because feasible mitigation measures included in the MMRP are made conditions of approval for this project. SECTION 5. Based upon the testimony and other evidence received, and upon studies and investigation.made by the City Council and on its behalf, the City Council further finds that the Final EIR analyzes a range of project alternatives. a. Alternative 1, the No Project Alternative. This Alternative is required by the CEQA Guidelines and it compare the impacts which might occur if the site is left 7 Resp 97-126 in its present condition with those that would be generated by the project as proposed. The No Project Alternative is considered to be the "environmentally superior" alternative since the following environmental areas would not be affected without the implementation of the project: public services and utilities, solid waste, education, libraries, parks and recreation, fire/Sheriff services, gas and electricity, visual resources, traffic/access, air quality, and noise. However, this alternative is less desirable in terms of sedimentationlrunoff and effects of agricultural operations, and does not provide the upland habitat which the proposed project with the Buried Bank Stabilization Option includes. This alternative was therefore rejected. b. Alternative 2, Buildout According to the City of Santa Clarita General Plan. The purpose of this alternative is to describe the impacts of developing the site according to the General Plan land use designations and to compare such impacts with those generated by the proposed project. Under Alternative 2, impacts associated with geotechnical resources/grading, biota, cultural resources, fire protection, agricultural resources, and human made hazards would be similar to the proposed project. Impacts generated by Alternative 2 associated with flood, traffic and access, air quality, noise, water service, wastewater, solid waste, utilities, housing, and education would be greater.than the proposed project. Impacts generated by Alternative 2 associated with library services, parks and recreation, employment and Sheriff services would be less than those anticipated under the proposed project. The Buried Bank Stabilization Option under Alternative 2 would have the same impacts as this option under the proposed project. This alternative was rejected because overall it has greater environmental impacts than the project. On the basis of environmental impacts alone, this alternative is not environmentally superior to the proposed project. C. Alternative 3, The Biological Alternative. The purpose of this Alternative is to provide more clustering of units, by reducing the residential footprint, thereby providing more open space and fewer impacts to biological resources. The number of residential units would remain the same. Under Alternative 3, impacts associated with geotechnical resources, library services, fire protection, Sheriff demands, and. population/housing/employment would be similar to the proposed project. This alternative would allow only clustered units and a smaller residential footprint which would be preferred to the proposed project in terms of flood, traffic/access, air quality, biota, cultural resources, visual, water, wastewater, solid waste, utilities, education, parks and recreation, agricultural resources and human made hazards. The Buried Bank Stabilization Option under Alternative 3 would have the same impacts as this option under the proposed project. On the basis of environmental impacts alone, this Alternative is "environmentally superior' to the proposed project. This Alternative would not meet project objectives in that it would not provide as great a variety or mix of residential housing types as the proposed project nor would it meet the anticipated housing market conditions over several years. Alternative 3 would 0 Reso 97.126 limit the range of housing opportunities, and would not reflect the housing opportunities demand under which the project site could be developed. Therefore, Alternative 3, the Biological Alternative, was rejected. d. Alternative 4, The 20 Percent Reduced Density Alternative. This Alternative would reduce dwelling units and commercial square footage on the site by 20 percent, down to 1,600 residential units, 508,000 commercial square feet, and 167,000 square feet of industrial uses. Alternative 4 would have a reduced project footprint to reflect reduced unit counts. Impacts under this alternative associated with geotechnical resources, flood, traffic/access, biota, cultural resources, air quality, noise, water service, wastewater, solid waste, utilities, education, library services and fire/Sheriff services, parks and recreation, agricultural resources and human made hazards would be less than the proposed project. The Buried Bank Stabilization Option under Alternative 4 would have the same impacts as the proposed project. Alternative 4 is an "environmentally superior' project, but it does not meet the project objectives of providing a mix of residential and commercial opportunities as it reduces the number of housing units available and reduces commercial square footage. The reduction of housing units does not meet the project objectives of responding to economic conditions by providing as great a variety of housing types. The reduction of commercial square feet reduces the subsequent tax base available to the City to support public services as compared to the project objectives. Alternative 4 has been rejected in favor of the proposed project because this Alternative would limit housing and employment opportunities, and thus would not accommodate the housing or employment demands of the regional area under which the project site could be developed. e. Alternative 5, The 40 Percent Reduced Density Alternative. This Alternative results in a 40 percent reduction in residential units and commercial square footage. The reduction would result in a total of 1,200 residential units, and 381,600 square feet of commercial uses. Other aspects of the project would remain consistent with the proposed project. In reducing the project by 40 percent, Alternative 5 will create a reduced development footprint for both residential and commercial uses. This Alternative also includes a grade separated crossing of Avenue Scott at Bouquet Canyon Road and a bridge over Bouquet Creek Channel for Avenue Scott. Impacts under this alternative associated with geotechnical resources, flood, traffic/access, biota, cultural resources, air quality, noise, water service, wastewater, solid waste, utilities, education, library services, fire/Sheriff services, parks and recreation, agricultural resources and human made hazards would be less than the proposed project. The Buried Bank Stabilization Option under Alternative 5 would have the same impacts as the option under the proposed project. Alternative 5 is an "environmentally superior" project, but was rejected over the proposed project because it does not meet the project objectives of providing a mix of residential and commercial opportunities. This Alternative reduces the number of housing Rego 97.126 units available and reduces commercial square footage. The reduction of housing units does not meet the project objectives of responding to economic conditions by providing a great variety of housing types. The reduction of commercial square feet reduces the subsequent tax base available to the City to support public services as compared to the project objectives. Alternative 5.would not accommodate the housing or employment demands of the regional area under which the project site could be developed. SECTION 6. By adoption of this Resolution, the City Council finds that the Final EIR identifies certain significant environmental effects and feasible mitigation measures that mitigate potential significant impacts to levels less than significant for each of these impacts with the exclusion of Air Quality, Visual Resources, Agricultural Resources, Solid Waste Disposal, and Biota. In accordance with CEQA Sections 15091 and 15093, a description of each significant impact and rationale for finding that changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the Final EIR is detailed below: a. Air Quality: Construction -related emissions would be generated by on-site stationary sources, heavy-duty construction vehicles, construction worker vehicles, and energy use. Operation -related emissions would be generated by on-site and off-site stationary sources and by mobile sources. During both the construction and operation phases, emissions of carbon monoxide (CO), reactive organic compounds (ROC), oxides of nitrogen (No,) and particulate matter (10 micron) (PM10) would exceed thresholds of significance recommended by the South Coast Air Quality Management District (SCAQMD). Furthermore, the actual rate of growth in vehicle miles traveled, and hence vehicular air emissions caused by the proposed residential and non-residential uses of the project would occur at a higher rate than the rate of growth associated with the expected on-site resident and employee population. The Buried Bank Stabilization Option's construction -related and operation -related emissions are also considered unavoidably significant. Mitigation Measures: Mitigation measures Al through A76 as identified in the Final EIA would reduce the magnitude of construction -related and operation -related emissions to some extent. However, no feasible mitigation exists which would reduce these emissions to below the SCAQMD's recommended thresholds of significance. This is inconsistent with the Air Quality Management Plan performance standards; therefore, the cumulative air quality impacts of the proposed residential uses, non-residential uses, and impacts due to construction of the Buried Bank Stabilization Option would be unavoidably significant. b. Visual Resources: The project is an infill development of a developed urban area. This area is envisioned by the City of Santa Clarita General Plan for the type of development proposed. The change in character of the project site would represent the replacement of open spacelagricultural uses with urban uses. but is not considered an unavoidable 10 Reso 97.126 significant impact because such uses already occur immediately surrounding the project site. However, bank stabilization at the rivers edge is a significant alteration to the basic visual character of the region, as well as to the river itself. The loss of riparian vegetation and the associated change in visual character of the River and Creek due to the placement of bank stabilization along the River/Creek edge would be significant and unavoidable. In the event that the preferred buried bank stabilization were to remain buried, no significant impacts would occur as most of the existing riparian vegetation along the banks would remain. However, the buried bank lining may become exposed in the event that future flood waters erode the existing banks and intervening upland preserve zone, exposing the buried reinforced concrete lining. In the event such erosion and exposure were to occur in the future, impacts of this option would be similar to the proposed project and would be significant, albeit further removed from the watercourse. Mitigation Measures: With the implementation of the buried bank stabilization and mitigation measures VQ1 through VQ6 (as identified in the Final EIR), the visual impacts of the project will be reduced to a less than significant level. This finding assumes that the buried bank stabilization will remain buried. If the buried bank lining is exposed due to future flood water erosion, then the impacts to visual resources will be considered unavoidably significant. C. Adxicultural Resources: The cumulative conversion of prime agricultural land to urban uses constitutes a loss of an irreplaceable resource and would result in the loss of 284 acres of prime agricultural land. No feasible mitigation exists for this conversion and it would be an unavoidable significant impact. Like the proposed project, the Buried Bank Stabilization Option would result in the loss of the conversion of all of the available agricultural land in the site, and is thus considered to have an unavoidably significant impact. Mitigation Measures: The Final EIR identifies three mitigation measures listed as AGI, AG2 and AG3 which would reduce the magnitude of the project's impacts to agricultural resources. However, no feasible mitigation exists which would reduce these impacts to a less than significant level, therefore the project's impacts to agricultural resources remain unavoidable and significant. d. Solid Waste: Upon buildout and assuming no solid wastes from the proposed project would be recycled (a worst-case scenario), the proposed project would generate approximately 40,428 pounds of solid waste per day, which is equivalent to approximately 7,378 tons per year. However, given the City's current overall waste diversion rate of 47 percent, it is estimated that the project will actually generate 20,214 pounds of solid waste per day, which is equivalent to 3,689 tons per year. The project may also generate household -type hazardous wastes. Cumulative development within the Santa Clarita Valley area would generate 626,230 tons per year of solid waste, as well as hazardous waste.: The project's 7,378 tons per year would represent 1.2 percent of this Valley total and an approximately 6 percent increase in the incorporated City area. Land suitable for landfill development or expansion is quantitatively finite and 11 Re" 97-126 limited due to numerous environmental, regulatory and political constraints. Until long- term landfill space or other disposal alternatives will be adequate to serve the existing and future uses for the forseeable future, project and cumulative solid waste and hazardous waste impacts within the City will be considered unavoidably significant. As with the proposed project, landfill space is finite and until long-term space or other disposal alternatives are identified, the solid waste impacts of the project with the Buried Bank Stabilization Option and cumulative solid waste and hazardous waste impacts are considered unavoidably significant. Mitigation Measures: As identified in the Final EIR, mitigation measures SWI through SW17 would reduce the magnitude of the project's solid waste impacts to some extent. However, no feasible mitigation exists which would reduce these impacts to a less than significant level. The cumulative solid waste impacts of the proposed project, along with the implementation of the Buried Bank Stabilization Option, will remain unavoidably significant. e. Biota: Temporary and permanent direct impacts on biological resources will occur as a result of the following project -related actions or activities: construction and grading for urban lots, roads, parks, recreational areas, buildings, and other facilities and structures; construction of the Avenue Scott bridge over San Francisquito Creek and the Santa Clara River; and maintenance activities associated with bank stabilization, bridges, water quality basins, and storm drain outlets. Project implementation will result in the permanent loss of 165.4 acres of agricultural fields, 89.3 acres of disturbed/ruderal fields, 3.97 acres of coastal sage scrub, 4.74 acres of cottonwood -willow riparian woodland, 0.83 acres of alluvial scrub, 3.41 acres of mule fat scrub, and 6.56 acres of riparian scrub. A portion of the cottonwood -willow riparian woodland and alluvial scrub habitat will be temporarily lost as a result of bank stabilization activities and will be replanted upon completion of the stabilization. Although the project proposes mitigation measures which will reduce impacts to the riparian ecosystem and wildlife species that utilize the riparian and upland habitats, it is assumed that human and domestic animal use of adjacent habitat areas will continue to occur as a result of project implementation and cannot be entirely prevented, despite signage.and barriers. With respect to equestrian use, enforcement of rules and regulations will be difficult and the trails may invite access by other non -compatible uses such as off-road vehicles. Therefore, the effects of these project activities on the riparian resources of the site remains an unavoidable significant impact. The loss of wildlife habitat and open space areas as a result of development within the proposed project site represents an unavoidable significant cumulative impact to biological resources. Unavoidable significant cumulative impacts include the loss of riparian habitat, disturbance to riparian wildlife due to nearby urban development, and effects on habitat for the unarmored three -spine stickleback and least Bell's vireo. 12 Reso 97-126 The implementation of the Buried Bank Stabilization Option results in a net loss of habitat that is less than the construction of bank lining at the River/Creek edge. However, losses to these habitats are still considered to have an unavoidably significant impact to biological resources. Potentially significant unavoidable impacts could occur to the three special -status fish species as a result of sedimentation, erosion, and loss of riparian habitat along the edges of the river channel, and to special -status bird species potentially nesting in the riparian vegetation (and in the case of burrowing owl, within the upland agricultural and ruderal fields). In the event of a substantial flood event, or as a result of ongoing flooding and erosion over time, the preserved upland habitat areas may eventually erode so much as to be of little or no value as upland habitat. This loss of upland habitat would substantially affect the overall ability of the riparian ecosystem to maintain the current level of terrestrial species diversity and abundance. Therefore, this loss would be considered an unavoidable significant impact under this option. In addition, because there will still be only 67 percent of the remaining upland habitat that meets the 100 -foot minimum preservation criteria (with exception given to the 75 -foot setback in the project's Lago de Valencia planning area), the resultant impact on the riparian ecosystem remains a significant unavoidable impact under the Buried Bank Stabilization Option. The overall permanent conversion of 2.6 acres of habitat within the SFAs to urban development represents a net loss of SEA habitat. This loss is also considered an unavoidable impact under this option. Mitigation Measures: As identified in the Final EIR, mitigation measures BI through B40 and the Buried Bank Stabilization Option mitigation measures would reduce the magnitude of the project's biota impacts to some extent. However, no feasible mitigation exists which would _reduce these impacts to less than significant with project implementation. The cumulative impacts of the project, including the construction of the buried bank stabilization lining, would be unavoidably significant. SECTION 7. Based upon the testimony and other evidence received, and upon studies and investigation made by the City Council and on its behalf, the Council further finds that the North Valencia Annexation, North Valencia Specific Plan and related entitlements will have community benefits. The City Council finds that the. following benefits are overriding considerations which support adoption of a Statement of Overriding Considerations: a. The project recommended for approval by the City Council implements the Valley Center Concept of the General Plan with implementation of the General Plan Amendment as proposed. b. The project will provide the City with infrastructure including improvements to portions of major highways designated on the City's Master Plan of Arterial Highways as follows: Newhall Ranch Road, Magic Mountain Parkway, Bouquet Canyon Road, Valencia Boulevard, McBean Parkway, Avenue Scott and Avenue Tibbitts. C. The project is consistent with: 1) the City's General Plan and Zoning Land Use 13 Reso 97.126 Classifications; and 2) the intensity of development allowed in the Specific Plan area with: City Council approval of the Specific Plan General Plan Amendment approval of a zone change to SP (Specific Plan Zone) as identified in the Specific Plan for this project, adoption of the Specific Plan document, and the approval of a zone change for the Metropolitan Water District (MWD) site to OS (Open Space). d. The project proposes a range of uses including residential, commercial, industrial and recreational in support of City's General Plan Goals and Policies. Appendix A of the Specific Plan, herein incorporated by reference as Exhibit C, includes a detailed explanation of how the North Valencia Specific Plan project integrates the goals and policies of the City's General Plan. The following are a sample of the goals, policies and implementation features of the City's General Plan which are supported by the project: The project supports the Land Use Element including policies promoting a mixed- use town center, with higher density residential, in proximity to public transportation, as follows: Policy 3.1 "Promote the development of City centers where more intensive land uses will be encouraged." Policy 3.3 "Identify a primary town center ... which encourage(s) a pedestrian orientation and can accommodate a clustered mix of commercial, entertainment, recreation, town square/meeting place(s), multi -use complexes, and multi -modal transportation activity opportunities." Policy 3.6 "Locate higher density residential development in close proximity to regional and sub -regional centers and public transportation corridors." The Project supports the Open Space and Conservation Element including policies to preserve special natural features and protect the natural environment as follows: Policy 1.6 Link buffer areas, wherever possible, to provide for contiguous areas of open space. Policy 3.7 Preserve to the extent feasible natural riparian habitat and ensure that adequate setback is provided between riparian habitat and surrounding urbanization. The project supports the Air Quality Element which seeks to reduce pollution from automobiles by relating land uses to transportation, facilitating non -automotive travel, and encouraging a jobs/housing balance, including the following. Goal 10 "To reduce vehicle emissions by creating an urban form that efficiently utilizes urban infrastructure and services." 14 Reso 97.126 Policy 10.1 "Contribute to the reduction of vehicle miles traveled by achieving a more reasonable j ob/housing balance." Policy 10.2 'Develop and encourage efficient transportation systems and land use patterns which minimize total trips and vehicle miles traveled." Goal 12 "To reduce mobile source emissions by promoting a shift from single occupancy to higher occupancy vehicles." The project. supports the Housing Element which has numerous sections calling for mixed use projects, flexibility in standards, a mix of housing types, and using the specific plan process, as shown in the following sections: Policy 1.4 'Promote the development of compatible mixed use projects in order to create a village concept, with various interacting uses ... to stimulate activity." Program La "Alternative Development Standards. Use the specific plan process ... ta permit alternative housing design where such projects result in attractive, desirable housing types, including affordable. housing." Program Lc "Specific Plan/Planned Development. Permit flexible development standards in specific plans... that encourage housing developments which meet the needs of the community. Flexible development standards should allow for clustering, and a variety of site design characteristics as appropriate." Policy 2.2 "Locate higher density residential development and housing ... in close proximity to public transportation and commercial land uses..." Policy 3.3 "Encourage a mix of housing types and densities in new large scale development." Policy 3.11 "Consider alternative development standards where practical ... to promote desired housing types and benefits...." The project supports the Community Design Element, which in the following policies are also supportive of this theme, as follows: 15 Reso 97.126 Policy 2.2 "Provide for residential uses in proximity to business/commercial centers in a manner which promotes the neighborhood/village/town center planning concept and maintains... the concept of the Valley Center." Policy 3.3 "Encourage the establishment of mixed use and village commercial centers..., urban open spaces, and the effective use of street furniture in downtown areas. Policy 3.4 "Encourage design and uses of commercial districts and related housing that add pedestrian orientation and that provide for safe and secure daytime and nighttime activities." e. The North Valencia project will provide various residential housing opportunities for different economic levels with a mix of single family and multi -family dwelling units as required by the Housing Element of the General Plan, the Housing Allocation for the City of Santa Clarita as set forth by SCAG (Southern California Association of Governments) in the Regional Housing Needs Assessment (RHNA) and the City's Comprehensive Housing Affordability Strategy (CHAS) component of the City's Comprehensive Plan prepared for the Federal Department of Housing and Urban Development (HUD). f. The project provides significant public benefits including employment opportunities, increased residential densities in proximity to transportation corridors, an improved circulation network including improvements to portions of Newhall Ranch Road, Magic Mountain Parkway, Bouquet Canyon Road, McBean Parkway, Avenue Scott and Avenue Tibbitts, identification and preservation of a riparian buffer area along the Santa Clara River and San Francisquito Creek Significant Ecological Areas (SEAs), and significant expansion of the City's River Trail system of bicycle, pedestrian and equestrian paths. SECTION 8. By adoption of this Resolution, the City Council has reviewed and considered the environmental information contained in the Final EIR (SCH#96071077) and determines that it is adequate and in compliance with the California Environmental Quality Act (Public Resources Code, Section 21000 et seq.). In compliance with CEQA Section 15093, the Planning Commission has considered the project benefits as balanced against the unavoidable adverse environmental effects and hereby determines that the benefits outweigh the unavoidable adverse environmental effects; therefore, the City Council determines that this resolution comprises a Statement of Overriding Considerations (SOC) and the adverse environmental effects are considered acceptable. The Planning Commission recommends that the City Council certify the Final EIR documents and adopt a Statement of Overriding Considerations (SOC). SECTION 9. By the adoption of this Resolution, the City Council approves certification of the environmental impact report and adoption of a Statement of Overriding Considerations Wr Rew 97-126 that identifies the benefits of the project as balanced against its unavoidable environmental risks, but has not granted any approval or entitlement on this project. SECTION 10. The City Clerk shall certify the adoption of this Resolution. SECTION 11. The Council shall certify to the adoption of this Resolution and certify this record to be a full, complete, and correct copy of the action taken PASSED, APPROVED AND ADOPTED this _ day of 1997 MAYOR ATTEST: CITY CLERK STATE OF CALIFORNIA COUNTY OF LOS ANGELES ) § CITY OF SANTA CLARITA J I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the _ day of , 1997, by the following vote of the City Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS.- ABSENT: OUNCILMEMBERS: ABSENT: COUNCILMEMBERS: cd\council \ nvlccre 1.eir 17 RESOLUTION NO. 97-127 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA APPROVING MASTER CASE NOS. 95-242, 96-120, 97-041, 97-063 FOR ANNEXATION NO. 95-006 (NORTH VALENCIA), GENERAL PLAN AMENDMENT 97-001 TO THE LAND USE ELEMENT TEXT AND LAND USE MAP, VESTING TENTATIVE TRACT MAP 51931, OAK TREE PERMIT 97-009 AND HAUL ROUTE TO ALLOW FOR THE 858 ACRE NORTHVALENCIAANNEXATION AND DEVELOPMENT OF A 706.6 ACRE PROPERTY WITHIN THE ANNEXATION AREA KNOWN AS THE NORTH VALENCIA SPECIFIC PLAN AREA THE CITY COUNCIL OF THE CITY OF SANTA CLARITA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council does hereby make the following findings of fact: a. The North Valencia Annexation area is approximately 858 acres generally located east of Anza Drive, south of Newhall Ranch Road, west of Bouquet Canyon Road and Valencia Blvd., and north of Magic Mountain Parkway.and the Auto Center in the unincorporated area of Los Angeles County adjacent to the City of Santa Clarita. The North Valencia Specific Plan area is approximately 706.6 acres within the North Valencia Annexation area and is generally located south of Avenue Hopkins and east of Anza Drive and the west side of San Francisquito Creek, south of Newhall Ranch Road, west of Bouquet Canyon Road and Valencia Blvd., and north of Magic Mountain Parkway and the Auto Center in the unincorporated area of Los Angeles County adjacent to the City of Santa Clarita. b. In November 1995, the City and the Valenica Company entered into a non- binding Memorandum of Understanding (MOU) regarding certain aspects of the potential annexation of approximately 969 acres of unincorporated area in the North Valencia area. At the time the MOU was adopted, the Valencia Company stated their intention to request approvals for up to 3,690 dwelling units, approximately 850,000 square feet of commercial uses, and 223,000 square feet of industrial uses. Entitlements to be requested at the time of MOU approval included a prezone, an annexation and development agreement, and tract maps. The MOU specifically indicated that any annexation would be subject to environmental review. C. A prezone (MC95-242, PZ95-006) was approved on April 16, 1996 by the City Council for portions of the North Valencia Annexation area through Ordinance No. 96-12. An annexation request for the North Valencia Annexation (Annexation No. 95-006) was filed with LAFCO in June 1996 following the direction of the City Council on June 11, 1996 (Resolution 96-84). Following the prezone and filing of the annexation request by the City, the Valencia Company, herein referred to as the "applicant", submitted entitlement requests noted above for a portion of the annexation area known as the North Valencia Specific Plan Reso. 97-127 Page 2 Area which are subject to environmental review. The City's annexation request is on hold at LAFCO at the request of the City and the applicant pending approval of the environmental review document and the above entitlements. d. On June 5, 1996, the applicant submitted the following entitlement requests: (Master Case No. 97-120) Annexation and Development Agreement 96-001, Annexation 95-006, Conditional Use Permit 96-010, TPM 20496 (Builder's South), TPM 20669 (Valencia Industrial Center), TPM 18417 (Pony League), TPM 24516 (Overall Project Area), VTTM 51931 (Valencia Del Lago), VTTM 51281 (South River) and VTTM 44832 (Arbor Park). Incomplete letters were sent on these entitlement requests in July and staff noted that an Oak Tree Permit would also be required. In January 1997, the applicant formally withdrew the application for a CUP and all of the tract and parcel maps except for VTTM 51931. The applicant submitted the following entitlement requests: a Specific Plan document including a comprehensive plan of development and development standards for the North Valencia Specific Plan area and Prezone 97-001 to change the zoning within the area to the City zone SP (Specific Plan). Following review of the specific plan document and revised site plan, staff recommended that a general plan amendment be filed in order for the requested entitlements to be consistent with the City's General Plan. On March 12, 1997, the applicant filed a request for MC 97-041, OTP 97-009 to allow for possible encroachment upon oak trees, and a general plan amendment to the text of the Land Use Element Valley Center Concept narrative to allow for a North Valencia Specific Plan and an amendment to the Land Use Map The development application includes the proposed annexation of approximately 858 acres of unincorporated Los Angeles County land located adjacent to the City boundary. This request would amend portions of Ordinance No. 96-12 to establish the City of Santa Clarita prezone Specific Plan (SP) over 706.6 acres on the areas known as the North Valencia Specific Plan area. The remaining acreage in the annexation area would remain as previously prezoned by Ordinance No. 96-12. The Specific Plan request includes entitlement for up to 2,000 dwelling units (750 single family detached, 1,250 multi -family attached), 636,000 square feet of commercial/retail, 167,000 square feet of industrial/business park space, a 6.5 -acre elementary school site, a 15.2 -acre lake/park, a 12.4 -acre community park, 4.9 acres of neighborhood parks, 355.6 acres of open space and over 5 miles of community trails; Vesting Tentative Tract Map 51931 to subdivide 706 acres into 138 lots; An oak tree permit to allow construction within 200 feet of the oak trees with no removals or encroachments are proposed; and review and certification of the Environmental Impact Report (SCH#96071077) prepared for this project. A development agreement was also requested. d. The original North Valencia Specific Plan request excluded a .6 acre Southern 2 Reso. 97-127 Page 3 California Gas Facility located on Magic Mountain Parkway; however, the City proposes to include this area within the Specific Plan area to avoid the issue of spot zoning. The North Valencia Specific Plan area is bisected by the approximately 13 acre MWD property which is excluded from the Specific Plan prezone; however, the City proposes to prezone this area Open Space (OS) in order to be consistent with the surrounding uses proposed in the Specific Plan. e. On June 25, 1991, the City Council adopted Resolution No. 91-98, adopting the General Plan of the City of Santa Clarita and Certifying the Environmental Impact Report. The City's General Plan presently designates the annexation area as Commercial Town Center (CTC), Community Commercial (CC), Business Park (BP), and Residential Moderate (RM), with a Valley Center Concept (VCC) Overlay on the majority of the site and a Significant Ecological Area (SEA) Overlay over the Santa Clara River and San.Francisquito Creek. The General Plan does not specifically mention the North Valencia site as an area ideal for a specific plan; however, the site does meet the minimum size of 100 contiguous acres under single ownership as identified in the Specific Plan zoning standards of the City's Unified Development Code . Zoning on the site is presently Los Angeles County zones C2, Ml'/s,.and A2-5 and.has already been prezoned City of Santa Clarita zones CTC (Commercial Town Center), CC (Community Commercial), BP (Business Park), and RS (Residential Moderate). f. The North Valencia Specific Plan area is vacant, generally flat, and was used for agricultural purposes. The approximately 153 acres of the annexation area that is excluded from the Specific Plan is flat and improved with industrial, commercial and public utility uses. Mgjor.features of the annexation area include the Santa Clara River, the South Fork of the Santa Clara River, San Francisquito Creek, Bouquet Creek, a portion of the San Gabriel Fault Alquist-Priolo Special Studies Zone, the MWD aqueduct pipeline and electrical transmission corridors. g. The design of the project concentrates development within areas previously used for agricultural uses and includes preservation of approximately 348.3 acres of the Santa Clara River and San Francisquito Creek and 84 acres of upland buffer area located adjacent to the River and Creek as identified in the North Valencia Specific Plan document. The project proposes grading on approximately 281 acres of the 858 acre project site. The total amount of grading involves movement of approximately 1.4 million cubic yards of on-site cut, 2.7 million cubic yards of on-site fill and 1.5 million cubic yards of off-site earth to be imported. Movement of approximately 850,000 cubic yards of the necessary off- site fill has been approved from the northeast corner of McBean Parkway and Newhall Ranch Road through conditional use permit No. 96-013 - (MC# 96-236). The remaining earth would be imported from the area known as the Center City Specific Plan area located east of the present terminus of Newhall Ranch Road, Reso. 97-127 Page 4 east of Bouquet Canyon Road. A haul route for imported earth is included within the Specific Plan document, however, specific haul route approval would be required at the time of grading permit. h. The City of Santa Clarita prepared an Initial Study for the project which determined that the project may have a significant effect on the environment and that an environmental impact report must be prepared. A Notice of Preparation (NOP) for the annexation, annexation and development agreement, tentative tract maps, conditional use permit and oak tree permit was mailed in July 1996 to affected agencies. A scoping meeting was held at the Valencia Town Center Conference Room on August 7, 1996 to obtain information from the public as to issues which should be addressed in the environmental document. Following a substantial revision to the project with the withdrawal of the conditional use permit application and six of the tentative maps in January 1997 and filing of a request for a prezone, specific plan document, general plan amendment, and revised vesting tentative tract map 51931, a subsequent NOP was prepared and mailed in May 1997. i. The Planning Commission went on a field visit to the North Valencia site on Saturday, May 31, 1997 at 9:00 a.m., beginning in the Council Chambers for the purpose of becoming familiar with the annexation and Specific Plan area. j. The City Council held a study. session on this project on June 3, 1997 and received an informational report on the status of this project. At that Council Study Session the Council approved a preliminary processing schedule for this project which identified various Planning Commission public hearing dates and specific project topics to be discussed at each of these meetings. The goal of this processing schedule was to reduce redundancy and allow the Commission and the public to better prepare for the meetings. This processing schedule allowed for each issue area of the Draft EIR to be discussed in a public forum during the Draft EIR public comment period to allow for maximum public participation, with numerous opportunities for the public to ask questions and receive information concerning the environmental document and the project. k. The Planning Commission received an informational presentation about the North Valencia Specific Plan proposal at their regularly scheduled meeting on June 17, 1997,at 7:00 p.m. at the City Council Chambers, 23920 Valencia Boulevard, Santa Clarita. This presentation was given by staff to distribute copies of the proposed North Valencia Specific Plan dated June 1997 and the proposed Vesting Tentative Tract Map 51931 version dated June 13, 1997, to provide the Commission with a background on the project application and to provide the Commission with a review of the entitlements requested. 4 Reso. 97-127 Page 5 1. The North Valencia Specific Plan Draft Environmental Impact Report (DEIR) was circulated for review and comment by the affected governmental agencies and all comments received have been considered. The DEIR (SCH#96071077) was distributed to the Planning Commission, the public and affected governmental agencies for a 45 -day public review period beginning on August 1, 1997 and ending on September 15, 1997, Late comments were accepted until September 22, 1997 to allow for mail delays. in. Following the processing schedule set by the Council on June 3, 1997, the Planning Commission held duly noticed public hearings on the North Valencia Annexation and Specific Plan and related.entitlements commencing on July 1, 1997 and continuing on July 9, 1997, July 23, 1997, August 5, 1997, August 13, 1997, August 19, 1997, August 25, 1997, September 2, 1997, September 10, 1997, September 24, 1997, October 7, 1997, October 15, 1997 and October 30, 1997. These public hearings have been held at 7:00 p.m. at the City Council Chambers and Orchard Rooms, 23920 Valencia Boulevard, Santa Clarita. Five of the public hearings were held between August 5, 1997 to September 2, 1997 which was during the public comment period. These public hearings were held for the purpose of providing an opportunity for the Commission and the public to consider focused discussions on each of the environmental issue areas discussed in the DEIR. n. The Final EIR, herein incorporated by reference as Exhibit A, includes the Draft EIR and the following: responses to written comments on the DEIR, responses to public testimony regarding Draft EIR. issues raised at the public hearings during the public comment period, modifications to the Draft EIR text, and the Mitigation Monitoring and Reporting Program (MMRP). The Draft EIR was provided to the Commission on August 1, 1997 and the remaining Final EIR documents were prepared.and provided to the Planning Commission on October 3, 1997. The Proposed Specific Plan Text dated June 1997, herein incorporated by reference as Exhibit B,also contains specific development standards and policies that mitigate potential environmental impacts and was considered by the Planning Commission, The Planning Commission has considered the Final EIR, as well as information provided in staff reports, the amendment text and through public testimony, prior to recommending project approval. o. The City of Santa Clarita Development Review Committee met and supplied the applicant with draft conditions of approval. p. The project proposes the extension of all utility services to the project site. Reso. 97-127 Page 6 q. Article 8-- Specific Plans Sec 65451 et seq. of the California Planning and Zoning Laws defines the contents which must be included in a specific plan as follows: (a) A specific plan shall include a text and a diagram or diagrams which specify all of the following in detail: (1) The distribution, location, and extent of the uses of land, including open space, within the area covered by the plan. (2) The proposed distribution, location, and extent and intensity of major components of public and private transportation, sewage, water drainage, solid waste disposal, energy, and other essential facilities proposed to be located within the area covered by the plan and needed to support the land uses described in the plan. (3) Standards and criteria by which development will proceed, and standards for the conservation, development, and utilization of natural resources, where applicable. (4) A program of implementation measures including regulations, programs, public .work projects, and financing measures necessary to carry out paragraphs (1), (2), and (3). (b) The specific plan shall include a statement of the relationship of the specific plan to the general plan. Section 17.16.030 of the City's Unified Development Code (UDC) identifies general requirements and performance standards for a specific plan zone. A Specific Plan Zone shall: (a) Include a minimum of 100 contiguous acres. (b) Be determined by the Council after considering the recommendation of the Planning Commission. (c) Provide for the development of a comprehensively planned community within the zone that is superior to development otherwise allowable under alternate regulations. (d) Provide for development within the zone in a manner consistent with the General Plan and with related development and growth policies of the City. H Reso. 97-127 Page 7 (e) Provide for the construction, improvement, or extension of transportation facilities, public utilities, and public services required by development within the zone. S. A duly noticed public hearing was held by the City Council on November 4, 1997 at 6:30 p.m. at the City Council Chambers, 23920 Valencia Boulevard, Santa Clarita. At this meeting, the Council considered the project's Draft EIR, the Final EIR., information provided in staff reports, the general plan amendment text, the proposed specific plan document, the entitlement requests, the proposed prezone for the property, the Annexation and Development Agreement, the Planning Commission's considerations, and public testimony regarding the project. The public hearing for the project was continued, with subsequent meetings being held on November 25, 1997, December 2, 1997, December 9, 1997, and December 18, 1997. The City Council formally closed the public hearing on December 9, 1997, and continued the item for action to the meeting of December 18, 1997. The meeting of December 18 was held at 8:00 a.m. at the City Council Chambers, 23920 Valencia Boulevard, Santa Clarita. SECTION 2. Based upon the above findings of fact, oral and written testimony and other evidence received at the public hearings held for the project, and upon studies and investigations made by the City Council find as follows: a. At the hearing described above, the City Council considered staff and consultant presentations, staff reports, applicant presentations, and public testimony on the proposal, and the FEIR prepared for the project. b. The Specific Plan complies with Article 8 --Specific Plans Sec 65451 et seq. of the California Planning and Zoning Laws by including the required text and diagrams which specify all of the detail as described in Section Lq of this Resolution No. P97-20. C. The design of the subdivision and the type of improvements will not cause serious public health problems, since water, sewage disposal, fire protection and other public services and utilities are addressed in the Specific Plan, 3AMRP and Conditions of Approval. d. The project complies with the general requirements and performance standards for the Specific Plan Zone. The project is consistent with the intent of the Specific Plan Zone which was created to: facilitate development of certain areas by permitting greater flexibility and consequently, more creative and imaginative designs; promote more economical and efficient use. of land while providing a harmonious variety of choices, higher level of amenities, and preservation of natural and scenic qualities of open space; and ensure that development 7 Reso. 97-127 Page 8 substantially conforms to the approved plans. e. Following a redesignation of the North Valencia Specific Plan area to SP (Specific Plan) and.the MWD ownership area to OS (Open Space) on the City's General Plan land use map, prezone SP (Specific Plan Zone) and OS (Open Space) as identified in the Specific Plan for this project and adoption of the Specific Plan, this Specific Plan project will be consistent with the City's General Plan and Zoning Ordinance. f. The City Council has adopted a Statement of Overriding Considerations for those impacts in the project which cannot be mitigated to less than significant levels and certified the FEIR for the project (Resolution 97-126). SECTION 3. Based upon the foregoing facts and findings, the City Council hereby find as follows: a. An FEIR, Mitigation Monitoring and Reporting Plan (MMRP) and a Statement of Overriding Considerations for this project have been prepared and circulated in compliance with the California Environmental Quality Act and adopted as certified as required by that Act. b. This project as modified by the Planning Commission and City Council will not adversely affect the health, peace, .comfort or welfare of persons residing in the area; nor be materially detrimental to the use, enjoyment, or valuation of property in the vicinity of the project site; nor jeopardize, endanger or otherwise constitute a menace to the public health, safety, or general welfare since the project conforms with the zoning ordinance and is compatible with surrounding land uses. C. The project is compatible with existing development in the area, consistent with the City's General Plan and Zoning, and consistent with the State Planning and Zoning Laws. d. The applicant has substantiated the findings for approving a general plan amendment, haul route, vesting tentative tract map and oak tree permit. SECTION 4. The City Council hereby approves the following entitlements requested under Master Case Nos. 95-242, 96-120, 97-041, and 97-063: General Plan Amendment 97-001 to the amend the Land Use Element Text and Land Use Map with text and map changes attached hereto as Exhibit "A", Vesting Tentative Tract Map 51931, Oak Tree Permit 97-009 and a haul route and subject to the VTTM conditions which are attached hereto and incorporated herein by this reference as Exhibit "B", which includes the MMRP which is incorporated herein by this reference as Exhibit "C". Reso. 97-127 Page 9 SECTION 5. The City Clerk shall certify to the adoption of this Resolution and certify. this record to be.a full, complete, and correct copy of the action taken. PASSED, APPROVED AND ADOPTED this day of , 19_ MAYOR ATTEST: CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) § CITY OF SANTA CLARITA ) I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof; held on the day of 19_ by the following vote of Council": AYES: COUNCILMEM 3ERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK Reso. 97-127 Page 10 Exhibit A General Plan Text and Map Changes Incorporated. by Reference 10 Reso. 97-127 Page 11 Exhibit B Conditions of Approval Incorporated by Reference 11 Reso. 97-127 Page 12 sAcd\council\res97127.flf Exhibit C Mitigation Monitoring and Reporting Program Incorporated by Reference 12 Resolution No. 97-149 JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES AND THE CITY COUNCIL OF THE CITY OF SANTA CLARITA APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUE RESULTING FROM "ANNEXATION 1995-06" (NORTH VALENCIA) TO THE CITY OF SANTA CLARITA WHEREAS, pursuant to Section 99 of the Revenue and Taxation Code, prior to the effective date of any jurisdictional change the governing bodies of all agencies whose service areas or service responsibilities would be altered by such change must determine the amount of property tax revenue to be exchanged between the affected agencies and approve and accept the negotiated exchange of property tax revenues by resolution; but if the affected agency is a special district, the Board of Supervisors must negotiate on behalf of the district; and WHEREAS, the Board of Supervisors of the County of Los Angeles and the City Council of the City of Santa Clarita have determined that the amount of property tax revenues to be exchanged between their respective agencies as a result of the annexation of unincorporated territory to the City of Santa Clarita, entitled "Annexation 1995-06" is as set forth below: NOW, THEREFORE, BE IT RESOLVED: 1. The negotiated exchange of property tax revenue between the County of Los Angeles and the City of Santa Clarita resulting from "Annexation 1995-06" is approved and accepted. 2. For fiscal years commencing July 1, 1999, or the July 1 after the effective date of this jurisdictional change, whichever is later, Eighty -Six Thousand, Eight Hundred and Eighty -Four Dollars (86,884) in property tax revenue shall be transferred from the County of Los Angeles to the City of Santa Clarita. In addition, for each fiscal year commencing July 1, 1999, or the July 1 after the effective date of this jurisdictional change, whichever is later, a percentage of the annual tax increment (ATI) attributable to the Tax Rate Areas within the Santa Clarita" Annexation 1995-06" area, as set forth below, shall be transferred from the County of Los Angeles to the City of Santa Clarita, and the County's share of incremental tax growth shall be reduced accordingly: Tax Rate Area ATI% 1339 0.055849657 1785 0.062634883 1787 0.065412089 2626 0.056068329 6788 0.059370964 6807 0.063546360 6809 0.063546360 8011 0.060017108 8075 0.060908982 8711 0.057428528 8745 0.059370964 8751 0.050413281 11737 0.061021601 11765 0.061021601 11767 0.061021601 3. For fiscal years commencing July 1, 1999 or the July 1 after the effective date of this jurisdictional change, whichever is later, all property tax revenue received by Road District No. 5 attributable to the Santa Clarita "Annexation 1995-06" area shall be transferred to the County of Los Angeles. 4. In the event that all or a portion of the annexation area is subsequently included within a redevelopment project pursuant to California Community Redevelopment Law (California Health & Safety Code Sections 33000 et seq.), the City of Santa Clarita shall not 2 adopt the ordinance approving the redevelopment plan with respect to the annexed area until such time as the Redevelopment Agency of the City of Santa Clarita has diligently and in good faith complied with all applicable provisions of the California Community Redevelopment Law, including but not limited to consultation. with the County with respect to the plan and to the allocation of taxes, pursuant to Health & Safety Code Section 33670 or any other relevant provision of law. Any ordinance approving a redevelopment project that includes this annexed area and which does not comply with this paragraph shall be void and of no effect with regard to the subsequent allocation and distribution of taxes to the Redevelopment Agency. PASSED, APPROVED AND ADOPTED this day of 1998, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk Mayor, City of Santa Clarita The foregoing resolution was adopted by the Board of Supervisors of the County of Los Angeles on this day of , 1998. ATTEST: JOANNE STURGES, Executive.Officer- Clerk of the Board of Supervisors Lm Deputy c: document\ttr\sc95-06 COUNTY OF LOS ANGELES Chair, Board of Supervisors El DEC -16-1997 1235 FROM N,G,K&E — O.C. OFFICE TO 18052552355 P.49 RECORDING REQUESTED BY RECORDING FEES EXEMPT DUE TO AND WHEN RECORDED MAIL To: GOVERNMENT CODE SECTION 27383 City of Santa Clarita 23920 Valencia Boulevard Suite 300 Santa Clarita, CA 91355 City Clerk Santa Clarita, California Attn.: City Manager (Space Above Line For Recorder's Use Only) NORTH VALENCIA ANNEXATION AND DEVELOPMENT AGREEMENT 966-001 BY AND BETWEEN THE CITY OF SANTA CLARITA AND THE NEWHALL LAND AND FARMING COMPANY DEC. 16 '97 (TUE) 13:90 COMMUNICATION No:32 PAGE. 49 DEC -16-1997 12:36 FROM N.G.K&E - O.C. OFFICE TO 18052552355 P.50 TABLE OF CONTENTS Section I. Definitions Section II. Obligations of Owner ....................................................................................................5 A. Cooperation with Annexation.......................................................................................6 B. Santa Clara River Conservation Area.....................................:.......................................6 1. Conveyance..........................................................................................................6 2. River Improvements.............................................................................................7 3. Buried Bank Stabilization ............................ -...................................................... 8 4. Buried Bank Stabilization Materials....................................................................8 C. Lago de Valencia - Lake Park Access... ....................................... I .................................. 9 D. Use of Pony League Ballfields........................................................................................9 E. Light Rail Right -of -Way .............................................9 F. Valencia Industrial Center - Bus Stop Pads .......... - .......................................................10 G. Transit Fees..............................................................................................................10 H. Roads to City Standards................................................................................................10 I. Landscaped Center Medians...........................................................................................10 J. Traffic Calming Measures..............................................................................................10 K. Elementary School Site.................................................................................................10 L. Extension of City s River Trail System.........................................................................1 l M. Bike Lane on Newhall Ranch Road.............................................................................11 N. Class I Bike Lane on Newhall Ranch Road Bridge over Bouquet Creek.......................................................................................................................12 O. CIass I II Bike Lane on Avenue Scott ...........................................................................12 P. Class II Bike Lane on Avenue Scott Bridge..................................................................12 OCV73400O02 DEC. 16 '97 (TUE) 13:31 COMMUNICATION Na:32 PACE. 50 DEC -16-1997 1236 FROM N.G.K&E — D.C. OFFICE TO 18052552355 P.51 Q. Bike Lane/Paseo on Magic Mountain Parkway............................................................12 R. Class II Bike Lane along McBean Parkway..................................................................12 S. Enhanced Sidewalk on McBean Bridge........................................................................12 T. Improvement of Community Park.................................................................................13 U. River Parks....................................................................................................................13 V. Pedestrian Overcrossing Bridges..................................................................................14 W. Design of Commercial Sites.........................................................................................14 X. Avenue Scott Crossing on San Francisquito Creek....................................:...:.............14 Y. Installation of Infrastructure Improvements..................................................................14 Z. Landscape and Maintenance District.............................................................................14 SectionIII. Annexation..... ................................................... .................... ................................... 14 A. Timing B. Terni ......... ............................... ............................................14 ..........................................14 Section IV. Project Development.................................................................................................16 A. Permitted Uses..............................................................................................................16 B. Rules, Regulations and Official Policies.......................................................................16 1. Applicable Rules................................................................................................16 2. Conflicting Enactments......................................................................................17 C. Administrative Modifications.......................................................................................17 D. Permitted Fees...............................................................................................................19 E. Term of Map(s) and Other Project Approvals...............................................................19 F. Tinting of Development............................................................ -................................... 20 G. Moratorium...................................................................................................................20 H. Vesting of Owner's Rights .................. I. Infrastructure Capacity ...............................21 ..........................................................21 DEC. 16 '97 (TUE) 13:31 COMMUNICATION No:32 PACE. 51 DEC -16-1997 1236 FROM N,G,K&E - O.C. OFFICE TO 16052552355 P.52 J. School Mitigation Obligations.......................................................................................21 K. Satisfaction of Park Land Obligations..........................................................................21 L. Public Financing Districts.........................................................................................22 M. Bridge and Thoroughfare Fees and Roadway Improvements......................................22 1. B&T District .................................................. 2. B&T District Fees..............................................................................................23 3. Non-B&T Improvement Fees............................................................................23 4. Calculation of Fees for Commercial, Industrial and Residential Areas......... ......................................................................................23 S. Pre-B&T Trak Fees 6. Credits................................................................................................................24 7. Transfer of Credits............................................................................................24 N. Infrastructure Improvements.........................................................................................24 1. Infrastructure Phasing Plan. 2. Reservation of infrastructure Capacity ..............................................................24 3. Reimbursement and Apportionment..................................................................25 O. Development Agreement(Project Approvals .............25 Section V. Cooperation/Implementation......................................................................................25 AFurther Assurances; Covenant to Sign Documents.......................................................25 B. Processing.....................................................................................................................25 C. Processing During Third Party Litigation.....................................................................26 D. State, Federal or Case Law ............................................................................................26 E. Other Governmental Bodies..........................................................................................27 F. Defense of Agreement..................................................................................................28 Section V1. General Provisions.....................................................................................................28 3 - DEC. 16 ' 97 (TUE) 13:32 COWUNICATION Nc:32 PACE. 52 DEC -16-1997 1237 FROM N.G.K&E - O.C. OFFICE TO 18052552355 P.53 A. Covenants Run with the Land.......................................................................................28 B. Transfers and Assipments...........................................................................................28 1. Right to Assign..................................................................................................28 2. Liabilities Upon Transfer...................................................................................29 C. Mortgagee Protection ...........................................................................3 0 D. Statement of Compliance..............................................................................................31 E. Default...........................................................................................................................31 F. Annual Review G. Default by City ...........32 ...................................................33 H. Legal Action..................................................................................................................33 I. Waiver; Remedies Cumulative.......................................................................................34 J. Future Litigation Expenses.............................................................................................34 1. Payment to Prevailing Party...............................................................................34 2. Scope of Fees.....................................................................................................34 K. Non -Recourse... ...............35 L. Permitted Delays; Supersedure by Subsequent Laws....................................................35 1. Permitted Delays................................................................................................35 2. Supersedure by Subsequent Laws......................................................................35 M. Amendment of Agreement N. Operating Memoranda..................................................................................................37 SectionVII. Miscellaneous...........................................................................................................37 A. Negation of Partnership................................................................................................38 B. No Third Party Beneficiary...........................................................................................38 C. Entire Agreement..........................................................................................................38 D. Severability ...................................................................................................................38 -4. DEC: 16 '97 (TUE) 13:32 COMMUNICATION No:32 PACE. 53 DEC -16-1997 1237 FROM N.G,K&E - O.C. OFFICE TO 16052552355 P.54 E. Construction of Agreement...........................................................................................39 F. section Headings...........................................................................................................39 G. Applicable Law and Interpretation................................................................................39 H. Notices..........................................................................................................................39 I. Time is of the Essence................................................................................,......40 J. Recordation...................................................................................................................41 -5. DEC, 16 '97 =E) 19:32 COMMUNICATION No:32 PACE. 54 DEC -16-1997 12:15 FROM N,G,K&E - O.C. OFFICE TO 18052552355 P.02 NORTH VALENCIA ANNEXATION AND DEVELOPMENT AGREEMENT 96-001 THIS ANNEXATION AND DEVELOPMENT AGREEMENT ("Agreement") is made and entered into as of this _ day of , 1997, by and between the CITY OF SANTA CLARITA, a municipal corporation ("City"), and THE NEWHALL LAND AND FARMING COMPANY, a California limited partnership ("Owner"). WITHE.aS1;.M A. The lack of certainty in the approval of development projects can result in a waste of resources, escalate the cost of housing and other development, and discourage investment in and commitment to comprehensive planning which would make maximum efficient utilization of resources at the least economic cost to the public. B. California Govemment Code Sections 65864-65869.5 (the 'Development Agreement Statute") and Santa Clarita Municipal Code, Chapter 22.16, Part 4 (the "City's Development Agreement Ordinance, ), therefore authorize the City to enter into binding development agreements with persons having legal or equitable interests in real property. C. Owner has a legal or equitable interest in certain real property located in the unincorporated area of the County of Los.Angeles (the "County"), as more particularly described in Exhibit "A" attached hereto and incorporated herein by this reference (the "Specific Plan Area"). D. The following individual Planning Areas, depicted on Exhibit "B," collectively comprise and are referred to herein as the "Specific Plan Project" (all numbers are approximate): DEC. 16 '97 (TUE) 13:10 COMMUNICATION Ne:32 FACE -2 DEC -16-1997 12:15 FROM N,G,K&E — O.C. OFFICE TO 18052552355 P.03 (i) Valencia Del Lago: a 228.1 -acre mixed use development including 1,100 residential units and 110,000 square feet of commercial space; (ii) Bouquet South Commercial: a 24.7 -acre development providing 162,000 square feet of commercial space; (iii) Pony League: 53.1 acres including 13.0 acres of commercial development providing 180,000 square feet of commercial space and 17.2 acres, devoted to playing fields; (iv) South River Village: a 92.7 -acre mixed use neighborhood including 900 units of high and medium density residential, parks and 184,000 square feet of commercial space; (v) Valencia Industrial Center: an 18 -acre development providing 167,000 square feet of commercial space; and (vi) Santa Clara River Conservation Area: 295.6 acres of riverbed and banks, all of which will be conveyed to City for open space, habitat preserve and recreational purposes. Each of the foregoing may bereferred to herein individually as a "Planning Area." E. On March 26,1996; the Santa Clarita City Council (the "City Council") adopted Resolution 96-37 approving a Negative Declaration pursuant to the California Environmental Quality Act ("CEQA") and adopted Ordinance No. 96-12 prezoning the Specific Plan Area (the "Prezone"). F, On , 1997, the City Council, after making appropriate findings, certified an Environmental Impact Report (State Clearinghouse No. 96071077) (the "EIR") pursuant to the provisions of CEQA and thereafter considered the North Valencia -2- COMMVNICATION Ne:92 PAGE.y DEC -16-1997 :12:16 FROM N,G,K&E - D.C. OFFICE TO 18052552355 P.04 Annexation Project (Master Case Nos. 95-242,96-120,97-o63) and granted the following approvals: PIan"); General Plan Amendment 97-001; 2, North Valencia Specific Plan Prezone 97-001 (the "Specific 3. Annexation No. 95-006; 4, Vesting Tentative Tract Map No. 51931 ("Map No. 51931"); 5. Oak Tree Permit 97-009; and 6. Haul Route. Collectively, the foregoing approvals, along with this Agreement, shall constitute the "Project Approvals". G. Annexation and development of the Specific Plan Project will further the comprehensive planning objectives contained within City's general plan (the "General Plan") and will result in the City and community benefits outlined in Section 11 below. H. For the reasons recited herein, City has determined that the Specific Plan Project is a development for which a development agreement is appropriate under the Development Agreement Statute and City's Development Agreement Ordinance. L The City Council has determined that this Agreement is consistent with City's General Plan and the Specific Plan and has determined that this Agreement is fair, just and reasonable, and City has concluded that the economic interests of its citizens and the public health, safety and welfare will be best served by entering into this Agreement. The Plarming Commission of City held a duly noticed public hearing on this Agreement on October 30, 1997 and recommended that the City Council approve this Agreement. -3- DEC-16 '97 (TUE) 13:11 COMMUNICATION Na:32 PAGE,4 DEC -16-1997 12:16 FROM N,G,K&E - O.C. OFFICE TO 18052552355 P.05 K. The City Council, after a duly noticed hearing on � 1997, adopted Ordinance No. 97-20, approving this Agreement on ordinance became effective on 1997 (the "Effective Date"). 1997, which NOW, THEREFORE, with reference to the foregoing recitals and in consideration of the mutual promises, obligations and covenants herein contained, the parties hereto agree as follows: aggLoaL Definitions. The following terms shall have the meanings defined for such terms in the Sections set forth below: Term Section Administrative Modifications Section N.C. Agreement Introduction Applicable Rules Section W.B.I. Applicable Rules Effective Date Section IV.B.1. B&T District Section IV.M.1. B&T Fees Section IV.M.2. CEQA Recital E City Introduction City Council Recital E City's Development Agreement Ordinance Recital B Conditions of Approval Section II.B.2.e. County Recital C Development Agreement Statute Recital B Effective Date Recital K EIR Recital F Future Approvals Section IV.C.iv. General Plan Recital G Lake Park Section II.C. Map No. 51931 Recital F Ministerial Approvals Section V.B.3. Mortgagee Section VI.C. Non-B&T Improvements Section IV.M.1. Notice of Non -Compliance Section VI.F. Owner introduction Planning Area Recital D Playing Fields Parcel Section II.D. Prezonc Recital E -4- (TUE) 13:11 COMMUNICATION N-:32 PACE.5 DEC -16-1997 12:17 FROM N,G.K&E - O.C. OFFICE Project Approvals River Conservation Area River Landscaping/Improvemcnt System Specific Plan Specific Plan Area Specific Plan Project Subsequent Rules Term TO 16052552355 Recital F Section II.B.La. Section II.B.2.b. Recital F Recital C Recital D Section IV.B.2. Section III.B. Section II. Obligations of Owner. In consideration of City entering into this Agreement, Owner agrees to perform certain obligations in connection with the development within the Specific Plan Area, which will have an overall benefit to City and the community. These obligations include: .5 - DEC. 16 '97 (TUE) 13=12 COMMUNICATION N.:32 PAGE -6 DEC -16-1997 12:17 FROM N,G,K&E - O.C. OFFICE TO iSO52552355 P.07 A. Cooperation with Annexation. Owner will cooperate with City to complete the annexation of the Specific Plan Area into the City. City hereby agrees that annexation of the Specific Plan Area will occur when the Project Approvals and the EIR have been approved and the Project Approvals and EIR have become final, i.e., the time for a legal challenge has expired without a challenge leaving been filed or a final judicial determination rejecting such a challenge has been rendered. B. Santa Clara River Conservation Area. Conveyance. a. Following annexation, Owner will convey to the City approximately 295.6 acres of the Santa Clara River (the "River Conservation Area") for a purchase price of One Million Five Hundred Thousand Dollars ($1.5 Million). City hereby acknowledges that the conveyance of the River Conservation Area will be subject to a river conservation easement granted by Owner to the California Department of Fish and Creme and that Owner will retain all water and mineral rights lying under the River Conservation Area and will reserve blanket easements for accessing, constructing and maintaining utilities, infrastructure and landscaping as may be required by City or other governmental agencies. b. The boundaries of the River Conservation Area and contiguous Planning Areas may be modified upon the mutual agreement of Owner and City. C. Owner has made application for a Corps of Engineers Permit to perform work in the River Conversation Area consistent with the Project Approvals. The Corps of Engineers Permit will, among other things, establish boundaries where bank stabilization work will be permitted. If the Corps of Engineers Permit boundaries differ from the Project Approvals, or if the Permit boundaries are ever revised, City hereby agrees to approve corresponding minor modifications to the River Conservation Area and contiguous Platting -6- DEC, 16 '97 (TUE) 13:12 COMMUNICATION No:32 PAGE -7 DEC -16-1997 12:17 FROM NPG,K&E - O.C. OFFICE TO 18052552355 P.OH Area boundaries, provided that such minor modifications do not significantly expand the Planning Area boundaries and that such minor modifications remain consistent with the Specific Plan. 2. River Improvements. a. Owner shall install landscaping and other improvements within the River Conservation Area valued at no less than One Million Five Hundred Thousand Dollars ($1.5 Million) for the purpose of habitat enhancement and recreational use. b. Attached hereto as Exhibit "C" is a "System for Landscaping and Improvement of River Conservation Area" (the "River Landscapingiimprovcmcnt System") which (i) lists a variety of pre -approved plants, trees, flowers, bushes, grasses and ground covers that may be planted by Owner within the River Conservation Area and (ii) lists the types of pre -approved improvements that may be made within and along the River Conservation Area. Owner's installation of landscaping and improvements shall be completed concurrently with the development of the adjacent Planning Area. C. If the River Conservation Area is conveyed to City prior to the completion of landscaping and improvements by Owner, City shall execute all necessary easement and other agreements as may be necessary to permit Owner to complete the landscaping and improvements or, as an alternative and at City's request, Owner shall pay to City the, balance remaining in the One Million Five Hundred Thousand Dollar (s 1.5 Million) fund whereupon City shall thereafter be responsible for completing the landscaping and improvement of the River Conservation Area. d. The parties recognize that the cost of Owner's River Conservation Area landscaping and improvements is likely to exceed the One Million Five -7- COMMUNICATION Na:32 PAOr.e DEC -1G-1997 12:18 FROM N,GfK&E — O.C. OFFICE TO 18052552355 P.09 Hundred Thousand Dollar ($1.5 Million) commitment by Owner. If the cost of landscaping and improvements exceeds One Million Five hundred Thousand Dollars ($1.5 Million), City shall use reasonable best efforts to reimburse Owner for such excess to the extent that City has funds available from grants or other sources. e. Following Owner's installation of landscaping and improvements along the River Conservation Area or any portion thereof, owner shall, upon notifying City of such installation, immediately thereafter be relieved from responsibility for the maintenance, repair, replacement and restoration of such landscaping and improvements, with the. exception of any required riparian mitigations in the River Conservation Area adjacent to Lago de Valencia, which shall be maintained by Owner as specified in the conditions of approval to Map No. 51931("Conditions of Approval"). 3. Buried Bank Stabilization. The Specific Pian provides for a buried bank stabilization element which is different from the rip rap or concrete stabilization methods favored by Los Angeles County Public Works, Flood Control Division. The buried bank stabilization element shall constitute a part of the River Conservation Area improvements described in Section II.B.2.a. above. After construction of the buried bank stabilization element, the affected area will be revegetated by Owner. 4. Buried Bank Stabilization Materials. Owner shall be permitted to use gunite, grouted rip rap, ungrouted rip rap, soil cement or other bank stabilization materials throughout the Specific Plan Project Area, as approved by City. When bank stabilization materials have been completed within the River Conservation Area, or any portion thereof,- and City has accepted the work, City shall thereafter be responsible for the maintenance, repair, replacement and restoration of all stabilization materials used within the accepted area- -8 - DEC -16 '97 (TUE) 13:13 COMMUNICATION No:32 FAGE.9 DEC -16-1997 12:18 FROM N,G,K&E — D.C. OFFICE TO 18052552355 P.10 C. LggQ de Valencia - Lake Park Access. The Lago de Valencia Planning Area will contain a 15.2 (approximate) acre lake to be known as "Lake Park". The ultimate size of Lake Park may vary depending on its final design. Owner agrees to include in the Lago de Valencia CC&Rs a provision describing the public's access rights (through the paseo and City's trail system described in the Specific Plan) to Lake Park. The CC&Rs will provide that the CC&R provision relating to the public's access rights to Lake Park may not be amended without the prior written consent of City. D. Use of Pony Logue Ballfields. Following completion of development of the commercial portion of the Pony League Planning Area, Owner will convey the 17.2 acre playing fields parcel (the "Playing Fields Parcel") to City or as City may otherwise direct. Such conveyance shall be subject to a condition subsequent that provides that should the Playing Fields Parcel, or any portion thereof, ever be used for any purpose other than its current use, i.e., Pony League baseball, title to the Playing Fields Parcel shall be subject to the right of Owner to reenter the Playing Fields Parcel and to cause the ownership of the Playing Fields Parcel to revert . to Owner. In addition, Owner will provide improved access to the playing fields by means of a signalized intersection on Valencia Boulevard, which signalized intersection shall be installed as apart of and concurrently with the development of the commercial portion of the Pony League Planning Area. E. Light Rail Right -of -Way Consistent with the City's General Plan policies 2.1-2.9 of the Circulation Element, nothing in the Specific Plan, this Agreement or any, other Project Approval will preclude future actions by City to identify and reserve commuter rail and commuter rail stations in locations currently under review in the Southern California Association of Governments Ventura - Santa Clarita Rail Right -of -Way Restoration Study. -9- COMMUNICATION No:32 PAOE.'10 DEC -16-1997 12:19 FROM N.G:K&E - O.C. OFFICE TO 18052552355 P.11 F. Valencia Industrial Center - Bus Ston Pads. Owner shall install bus stop pads (approximately 8' by 20' in size adjacent to the curb) at up to 20 locations within the Valencia Industrial Center at locations to be agreed upon by Owner and City. Owner shall receive full credit for all costs of the design and installation of the bus stop pads toward Owner's obligations for City's transit mitigation fees. G. Transit Fees. Owner shall pay transit fees as provided in the Project Approvals, less credits for the Valencia Industrial Center bus stop pads as provided in Section II.F of this Development Agreement and for other transit -related improvements other than as provided in this Development Agreement, which City may request that Owner construct. The net amount of transit fees owed by Owner after such credits shall be reduced by fifty percent (5o%) if Owner pays such reduced amount on the date of recordation of the first residential unit in any of the Planning Areas. H. Roads to Ci dards. New roads within the Specific Plan Project will be constructed to City, not County standards. I. Landsea_ ped Center Medians. Roads that are improved to major highway standards within and adjacent to the Specific Plan Project will provide landscaped center medians (as specified on Map No. 5193 1) designed to City standards. 7. Traffic Calming Measures. Traffic calming measures such as traffic circles, medians, narrower street and driveway sections, serpentine roadway design, diagonal parking and other design features may be included in the Specific Plan Area to reduce traffic speed and enhance safety. K. Elementary School Site. In accordance with the terms of an agreement between Saugus Union School District and Owner, a 6.5 acre school site in the Lago de Valencia Planning Area will be conveyed to the Saugus Union School District. The school site will be -10- -6 *97 (TILE) 13:14 COMMUNICATION No:32 PACE. 11 DEC -16-1997 '12:19 FROM N,G,K&E - O.C. OFFICE TO 16052552355 P.12 centrally located and integrated into City's trail and paseo system so that safe and convenient access for children in adjacent neighborhoods and Planning Axeas is provided. L. Extension of -City's River 11MI -stem. The Specific Plan Area will include a 5.5 mile (approximate) extension of the City's river trail system adjacent to several of the. Planning Areas. The 5.5 mile extension of the City's river trail system is in addition to the River Conservation Area and shall be constructed by Owner as described in Sections IT.L-R below. M. Bike Lane on Newhall Ranch Road. owner shall replace the existing temporary bike lane in the same approximate alignment and dimension and with Portland concrete cement materials on the north side of Newhall Ranch Road from approximately Grandview Drive to McBean Parkway. Owner shall extend the bike lane (in the same approximate dimension and with the same materials) along the north side of Newhall Ranch Road from McBean Parkway to the cast end of the San FrancisquitoCreekBridge and along the south side of Newhall Ranch Road from the west end of the San Francisquito Creek Bridge to Avenue Tibbitts. Owner shall construct a Class I bike lane approximately 12' in width within a Wright of way on the south side of the San Francisquito Creek Bridge concurrently with the widening of the San Francisquito Creek Bridge for traffic purposes. In addition, an undercrossing on the west side of the San Francisquito Creek Bridge shall be constructed by Owner concurrently with the widening of the San Francisquito Creek Bridge for traffic purposes. All temporary bike lanes' surfaces will be asphalt until the adjacent property is developed at which time the bike lanes will be upgraded to a Portland concrete cement surface; however, if the asphalt deteriorates significantly prior to the development of the adjacent property, Owner will cause the bike lanes to be upgraded to a Portland concrete cement surface or to be repaired to the satisfaction of City. -11- DEC. 16 '97 (TUE) 13:15 COMMUNICATION N.:32 PAGE. 12 DEC -16-1997 12:57 FROM N.G,K&E - O.C. OFFICE TO 18052552355 P.97 N. Class I Bike Lane on Newhall Ranch Road Bridge over Bouquet Creek. owner shall construct a Class I bike lane approximately 12' in width within a Wright of way on the south side of the Newhall Ranch Road Bridge concurrently with the widening of the Newhall Ranch Road Bridge for traffic purposes. O. Class 11 Bike Lane on Avenue Scott. Owner shall construct a Class II bike lane approximately 6' in width within the road right of way on either the north or the south side of Avenue Scott between McBean Parkway and the east side of the Avenue Scott Bridge. P. Class 11 Bike Lane on Avenue Scott Bride. Owner shall construct a Class II bike lane approximately 6' in width on either the north or the south side of the Avenue Scott Bridge when the bridge is constructed. Q. Bike Lane/Paseo on Magic Mountain Parkway. Owner shall contract a bike lanalpaseo approximately 10' in width along the north side of Magic Mountain Parkway west of McBean Parkway concurrently with the widening of Magic Mountain Parkway or with the development of the Planning Area adjacent thereto. R. CIass II Bike Lane along McBean Parkway. Owner shall construct Class 11 bike lanes along the east and west side of McBean Parkway north of the Santa Clara River to Newhall Ranch Road, and along the west side of McBean Parkway south of the Santa Clara River to Magic Mountain Parkway concurrently with the widening of McBean Parkway or the development of the PIanning Area adjacent thereto, S. Enhanced Sidewalk on McBean $ridee. Owner shall construct an enhanced sidewalk approximately G in width on the west side of McBean Bridge concurrently with the widening of McBean Bridge for traffic purposes. The existing 1Q' bike lane on the east side of McBean Bridge shall be used for bicyclists and pedestrians. A barrier shall be -12- TOTAL P.97 DEC. 16 ' 97 (TUE) 13:52 COMMUNICATION Na:92 PAGE. 97 DEC -16-1997 12:20 FROM N.G,K&E — O.C. OFFICE TO 18052552355 P.14 constructed by Owner to separate the existing bike lane from vehicular traffic. No additional right of way shall be required for the barrier. T. Imtnnvement of Community Pazk Owner agrees to dedicate a 12.4 acre community park within the Lago de Valencia Planning Area In addition, Owner agrees to improve the community park with turf and trees and two baseball diamonds, one of which shall be equipped with a backstop. In addition, Owner agrees to lay out the location of two soccer fields. Owner also agrees to purchase and install play equipment for the park provided that the cost of the equipment, including installation, shall not exceed Twenty Thousand Dollars ($20,000). Owner shall also purchase and install picnic furniture and shall construct a shade structure for the picnic area. Owner's plans for the improvement and equipping of the community park shall be subject to the reasonable approval of City's Department of Parks and Recreation. The 12.4 acre community park will be improved and equipped and available for joint use in connection with the opening of the elementary school. A joint use agreement will be entered into between City and the Saugus School District regarding the use and maintenance of the, community park. In addition, Owner shall use reasonable efforts to acquire permission from the MWD to use and improve the adjacent six acre MWD property for additional park lands, in a manner consistent and compatible with the adjacent 12.4 acre community park, U. River Parks. Owner agrees to dedicate and construct two neighborhood parks of 2.0 acres (including 1.4 acres of buffer area) and 2.7 acres respectively as depicted by the Specific Plan. The 2.7 acre park will be located in Lago de Valencia adjacent to the river trail and River Conservation Area, will be improved by Owner with decomposed granite trails and will preserve existing oak trees. The 2.0 acre park will be located in South River Village and will provide a staging area for access to the river trail and River Conservation Area. -13- 13:16 COMMUNICATION No:32 PAGE.14 DEC -16-1997 1221 FROM N,G.K&E - O.C. OFFICE TO 18052552355 P.15 V. Pedestrian Overcrossing Bridges. Two pedestrian bridges (over McBean Parkway and Newhall Ranch Road) will be constructed by Owner to provide pedestrian linkage to paseos, trails, parks and commercial areas. Following completion of each pedestrian bridge, Owner shall dedicate and City shall accept dedication of each bridge and shall thereafter be responsible for the maintenance and repair thereof. W. Design of Commercial Sites. Commercial sites will be designed by Owner to be pedestrian friendly and to avoid conflicts with on site auto traffic wherever possible. X. Avenue Scott mui g on San ranciNu-ito Cmek. Within one year after completion of the Old Road improvement project by the County, construction will begin on the existing at grade crossing of Avenue Scott at San Francisq to Creek to be upgraded by Owner to a bridge crossing. Y. Installation of Infrastructure Improvements. This Agreement will assure progressive installation of infrastructure improvements for the benefit of the community and the Specific Plan Project Area. Z. Landscape and Maintenance District. Owner will cooperate with City in the establishment of a Landscaping and Maintenance District that will provide for maintenance of landscaping for medians, parkways and paseo bridges. Section III. Annexation. A. Timis . Annexation proceedings regarding annexation of the Specific Plan Project Area shall not be completed until all Project Approvals have been granted. If annexation proceedings are not completed on or before December 31, 1999, either party may terminate this Agreement in which case it shall be of no further force or effect. B. Term. This Agreement shall commence upon the Effective Date and shall extend fifteen (15) years from the Effective Date (the "Term"), unless said term is otherwise -14- DEC-16 '97 (TUE) 1316 COMMUNICATION Ne:92 PAGE. 15 DEC -16-1997 1221 FROM N,G,K&E - O.C. OFFICE TO 18052552355 P.i6 terminated, modified or extended by circumstances set forth in this Agreement or by mutual consent of the parties. Following the expiration of the Term, this Agreement shall be deemed terminated and of no further force and effect; provided, however, such termination shall not affect any right or duty arising from City approvals, including, without limitation, the Project Approvals, the Future Approvals or the Ministerial Approvals. This Agreement $ball terminate with respect to any lot and such lot shall be released and no longer be subject to this Agreement, without the execution or recordation of any further document, when a certificate of occupancy has been issued for the building(s) on the lot. -15- (TUE) 13:16 COMMUNICATION Ne:32 PAGE.16 DEC -16-1997 12:22 -FROM N.G.K&E - O.C. OFFICE TO 18052552355 P.17 Section IV, Project Development. A. Permitted Uses. The parties hereby agree that, for the term of this Agreement, the permitted uses, the density and intensity of use, the maximum height and size of proposed buildings, provisions for reservation or dedication of land for public purposes and loca- tion of public improvements, shall be those set forth in this Agreement, the Project Approvals and the "Applicable Rules" (as hereinafter defined). B. Rules Regulations and Official Policies. 1. ApRlicable Rules. The parties hereby agree that, for the term of this Agreement, the rules, regulations and official policies governing permitted uses, governing density, and governing design, improvement and construction standards and specifications applicable to devclopmem of the Specific Plan Area as well as all fees (including processing fees except for building permit and review fees) and exactions, shall be those rules, regulations and official policies, fees and exactions of the City in force and as interpreted by the City by policy or practice on March 25, 1997 (the "Applicable Rules Effective Date"), i.e., the date on which Owner's application for Map No. 51931 was deemed complete (the "Applicable Rules"). The parties agree that the rules, regulations and official policies set forth on Exhibit "D" hereto constitute the parties' best effort to list the Applicable Rules. Notwithstanding the foregoing, nothing in this Agreement shall preclude City from applying changes occurring from time to time in the Uniform Building Code, Uniform Electrical Code, Uniform Fire Code, Uniform Mechanical Code, or Uniform Plumbing Code, provided that such changes (i) are found by City to be necessary to the health or safety of the citizens of City, (ii) are generally applicable to all property in City, and (iii) do not prevent or unreasonably delay development of the Specific Plan Project Area in accordance with this Agreement. -16- COMMUNICATION N.:92 PAGE.17 DEC -16-1997 12:22 FROM N,G,K&E - O.C. OFFICE TO 16052552355 P.18 2. Conflicting Enactments. Any change in the Applicable Rules, including, without limitation, any change in any applicable general, area or specific plan, zoning, subdivision or building regulation, adopted or becoming effective after the Applicable Rules Effective Date, including, without limitation, any such change by means of an ordinance, initiative, resolution, policy, order or moratorium, initiated or instituted for any reason whatsoever and adopted by the City Council, the Planning Commission or any other board, commission or department of City, or any officer or employee thereof, or by the electorate, or by a court, as the case may be, which would, absent this Agreement, otherwise be applicable to the Specific Plan Area and which would conflict in any way with or be more restrictive than the Applicable Rules ("Subsequent Rules"), shall not be applied by City within the Specific Plan Area unless both Owner and City consent in writing. C. Administrative Modifications. City and Owner will retain certain flexibility with respect to the details of Specific Plan Project development and therefore agree that the following Administrative Modifications for each Planning Area shall, unless otherwise provided in this Section IV.C, be approved by the Director of Planning and Building Services without public notice or hearing: (i) The parties agree that, in order to accommodate the needs of third party purchasers, the size and configuration of lots or parcels and dimensions and/or locations of improvements may be modified at the Owner's discretion, and City shall fully cooperate therewith, subject to the provisions of the Subdivision Map Act, and provided that the aggregate total density and intensity of the particular PIanning Area are not increased, the permitted uses thereon are not modified from those provided in the Projcct Approvals and the parcels and lots and improvements thereon are consistent with the Applicable Rules and Project Approvals, including all set -back and construction standards set forth therein. -17- COMMUNICATION Ne:92 PACE.18 DEC -16-1997 12:56 FROM N GMK&E - O.C. OFFICE TO 18052552355 P.96 (ii) The design and configuration of residential lots and related improvements within the Lago de Valencia Planning Area may be reconfigured and redesigned by owner provided the number of dwelling units within each respective Planning Area is not increased. Such reconfiguration and redesign may include maldng one or more tracts within either or both Planning Areas less dense, converting one or more lots from air space condominium purposes to individual fee lots, provided such conversion results in an equal to or lower density of development, as measured by number of dwelling units, than specified for the original lot or lots, and modifying the design of streets, curbs, gutters, sidewalks, drainage and affected utilities to be consistent with such reconfiguration and redesign so long as each reconfiguration and redesign is otherwise consistent with design and configuration standards and requirements in the Specific Plan and the Conditions of Approval. City hereby agrees that any subsequent tentative subdivision map for a Planning Area or portion thereof that is submitted for review and approval shall be approved provided the residential, commercial and industrial lot design and configuration standards set forth in Exhibit"E," in the Specific Plan and in the Conditions of Approval are met. (iv) City and owner hereby agree that upon adoption of the Project Approvals, Owner shall have the vested right to develop the Specific Plan Area in any way that is consistent with the Project Approvals and this Development Agreement. City shall not require Owner to obtain, and expressly exempts Owner from obtaining, any further discretionary approvals or permits for the development of the Specific Plan Area (other than the Project Approvals and this Development Agreement). City agrees to process and administratively approve any tract maps, permits, or approvals of any kind, including modifications in the size, design, and configuration of lots and improvements as provided in this Section IV.C, required for Owner to devclop the Specific Plan Area consistent with the Project Approvals and this -18- COMMUNICATION N-:32 PACE -96 DEC -16-1997 12:23 FROM N,G,K&E - G.C. OFFICE TO 16052552355 P.20 Development Agreement, and such administrative approvals are deemed to constitute ministerial acts implementing the Specific Plan, the Project. Approvals, and this Development Agreement, final and not appealable to the Planning Commission or City Council. Any amendments or modifications to the Project Approvals ("Future Approvals") shall become part of the Applicable Rules. (v) Notwithstanding any other provision of this Section 1V.C, any change in the size and configuration of proposed lots in a Planning Area which would result in the conversion of two or more single family lots into an air space condominium lot, regardless of whether such conversion results in greater or lesser density of development, shall be reviewed by the City Planning Commission, provided that the lot design and configuration standards set forth in Exhibit "E," the Specific Plan and the Conditions of Approval shall govern such review, and that City shall not condition approval of any such conversion with additional exactions, conditions or requirements which increase the obligations of Owner with respect to such Planning Area. D. Permitted Fees. Except as otherwise provided in this Agreement, and specifically excluding fees set by entities not controlled by City that are collected by City, City shall only charge and impose those fees and exactions, including, without limitation, dedications and any other fee or tax (including excise, construction or any other tax) relating to development or the privilege of developing, which are in effect on a City-wide basis as of the Applicable Rules Effective Date and only in such amounts as would have been imposed if the fees or exactions had been calculated on that Date. E. Term of Mao(s) and Other Proiect Approvals. Pursuant to California Covemment Code Sections 66452.6(a) and 65863.9, the term of any subdivision or parcel map that may be processed on all or any portion of the Specific Plan Area, including, without -19- DEC. 16 '97 (TUE) 13:19 COMMUNICATION No:32 PAGE. 20 DEC -16-1997 12.24 FROM N,G,K&E — O.C. OFFICE TO 16052552355 P.21 limitation, Map No. 51931, and the term of each of the Project Approvals shall be extended for a period of time through the scheduled termination date of this Agreement as set forth in Section III.B. above. F. Timing of Development. Because the California Supreme Court held in Pardee Construction Co. v. City of Camarillo. 37 Cal.3d 465 (1984), that failure of the parties therein to provide for the timing of development resulted in a later -adopted initiative restricting the timing of development to prevail over such parties' agreement, it is the parties' intent to cure that deficiency by acknowledging and providing that Owner shall have the right (without obligation) to develop the Specific Plan Area in such order and at such rate and at such times as Owner deems appropriate within the exercise of its subjective business judgment, subject only to the terms and conditions of the Infi'astructure Phasing Plan set forth in the Specific Pian G. Moratorium. No City -imposed moratorium or other limitation (whether relating to the rate, timing or sequencing of the development or construction of all or any part of the Specific Plan Area, whether imposed by ordinance, initiative, resolution, policy, order or otherwise, and whether enacted by the City Council, the Planning Commission, an agency of City, the electorate, or otherwise) affecting parcel or subdivision maps (whether tentative, vesting tentative or final), building permits, occupancy certificates or other entitlements to use or service (including, without limitation, water and sewer) approved, issued or granted within City, or portions of City, shall apply to the Specific Plan Area to the extent such moratorium or other limitation is in conflict with this Agreement. -20- DEC.16 '97 (TUE) 13:19 COMMUNICATION Na:32 PAGE -21 DEC -16-1997 12:24 FROM N,G,K&E - O.C. OFFICE TO 18052552355 P.22 H. Vestiim of Owner's E&ts. The rights and entitlements granted to Owner pursuant to this Agreement shall be and constitute "vested rights" or the equivalent of "vested rights", as that term is defined under law applicable to the development of land or property and the right of a public entity to regulate or control such development of land or property, including, without limitation, vested rights in and to building permits and certificates of occupancy. L Infrastructure Ca acit . City hereby acknowledges that it has sufficient capacity in its existing infrastructure, services and utility systems, including, without limitation, traffic circulation, flood control, sewer collection, sewer treatment, sanitation service and, except for reasons beyond City's control, water supply, treatment, distribution and service, to accommodate the Specific Plan Project as provided in this Agreement. To the extent that City renders such services or provides such utilities, City hereby agrees that it will serve the Specific Plan Project and that there shall be no restriction on hookups or service for the Specific Plan Project. I. School Mitivation Obligations. School mitigation obligations shall be those set forth in agreements with the various school districts as incorporated in the Project Approvals and no further school mitigation obligations shall be imposed on the Specific Plan Project or any Planning Area within the Specific Plan Project. K. Satisfaction of Park Land Obli ag tions. Pursuant to the Project Approvals, Owner will dedicate and improve a 12.4 acre community park within the Lago de Valencia Planning Area, a 2.7 acre park within the Lago de Valencia Planning Area adjacent to the River Trail and River Conservation Area and a 2 acre park within the South River Village Planning Area and will provide additional paseo bridges, paseos and extensive private recreational areas and facilities. In addition, Owner will convey approximately 295.6 acres of the Santa Clara River to City and will expend One Million Five Hundred Thousand Dollars ($1.5 Million) on -21- BEC-t6 X97 (TUE) 13:20 COMMUNICATION No;32 PACE.22 DEC -16-1997 12:25 FROM N,G,K&E - O.C. OFFICE TO 18052552355 P.23 River Conservation Area landscaping and improvements for habitat enhancement and recreational use. In addition, the Specific Plan Project includes development of and assured public access to Lake Park and continued use of the William S. Hart Pony League playing fields. City acknowledges that the foregoing dedications and improvements constitute a significant contribution to parks and other recreational opportunities within the Specific Plan Project and, as such, fully satisfy any and all parkland dedication requirements that may be applicable to development of the Specific Plan Project and each of the Planning Areas. City will therefore require no further dedications or payment of in -lieu fees in order to develop the Specific Plan Project in accordance with the Project .Approvals. in addition, City hereby agrees that the foregoing dedications and improvements to parks and other recreational opportunities within City shall fully satisfy any and all parkland dedication requirements that may be applicable to development of Vesting Tentative Tract Map Nos. 44821, 44374, 52206 and 44830 and Vesting Tentative Parcel Map No. 20795 and CUP No. 97014. L. Public Financing Districts. City agrees to cooperate with Owner to establish one or more Community Facilities Districts, assessment districts, tax increment infrastructure financing districts, integrated financing districts, and/or other public financing mechanisms covering all or a portion of the Specific Plan Area to fund public infrastructure improvements and services, through the issuance of fixed or variable interest rate (taxable or tax exempt) bonds; provided, however, City's cooperation with respect to public financing for any residential area within the Specific Plan Project shall be subject to provision being made to pay off any bonds issued which encumber any residence, prior to occupancy of that residence, unless the City Council specifically approves otherwise. M. Bridge and ThoroAgyM Eees and Roadway Improvements. -22- 13:20 COMMUNICATION Na:32 PAOE.23 DEC -16-1997 12:25 FROM N P G , K&E - D.C. OFFICE TO 18052552355 P.24 1. B&T District. City and Owner hereby confirm that they anticipate the formation of a Bridge and Thoroughfare District (a "B&T District"), subject to approval by County, to finance the acquisition, development and maintenance of transportation improvements. Certain additional transportation improvements lying outside of the B&T District may also be required to mitigate the Specific Plan Project's traffic impacts ("Non-B&T Improvements"). 2. B&T District Fees. Owner shall pay fees to fund the B&T District (the "B&T Fees") in an amount that shall not exceed the lesser. of (i) those B&T Fees required by the City or (ii) those B&T Fees that would have been required for the Specific Plan Project Area pursuant to County requirements, as of the Applicable Rules Effective Date. The B&T Fees shall be subject to increase annually in accordance with the Consumer Price Index. B&T Fees and fees for Non-B&T Improvements shall be payable (or secured) at issuance of building = 3. Non-B&T Improvement Fees. Owner shall pay its share of the cost of Non-B&T Improvements as provided in the Project Approvals. 4. Calculation of Fees for Commercial. Industrial and Residential Areas. For commercial/industrial areas, B&T Fees shall be calculated and paid based on the square footage of actual construction in relation to total buildout of the particular commercial/industrial area. For residential sections of Planning Areas, B&T Fees shall be calculated and paid per residential dwelling unit. No B&T Fees or fees or improvements for Non-B&T Improvements shall be required for undevelopable parcels shown as "open space", "not a part" or any similar designation on any subdivision or parcel map. B&T Fees for senior residential units, as defined in California Civil Code section 51.3, shall be calculated at a rate of ten per cent (100/9) of the B&T Fees for comparable residential units. -23- 13:21 COMMUNICATION N.:32 PAGE.24 DEC -16-1997 1226 FROM NsGAK&E — O.C. OFFICE TO 18052552355 P.25 5. Pre-B&T Traffic Fees. In the event the B&T District has not been formed at the time Owner applies for a building permit, then, as an alternative funding mechanism, traffic fees shall be payable to the City in the amount and on the terms and conditions described in this Section and the Project Approvals, which shall constitute full mitigation of the Specific Plan Project traffic impacts with respect to the B&T District and the Non-B&T Improvements. 6. Credits. Owner shall receive full credit for all costs of transportation improvements constructed by Owner that benefit the B&T District or the Non-B&T Improvements toward Owner's B&T Fees or Owner's obligations for Non-B&T Improvements, whichever is applicable. The full amount of fees payable on account of traffic mitigation (including B&T Fees and any fees for Non-B&T Improvements) with respect to any of the Planning Areas shall be fully credited against such PIanning Area's obligations to mitigate its traffic impacts. 7. Tnofq of Credits. If the cost of transportation improvements constructed by Owner exceeds the established B&T Fees, Owner may elect to transfer all or any portion of such excess as a credit for B&T Fees for other Planning Areas. If transferred as a credit toward existing obligations of Owner, City shall immediately release secured or unsecured agreements, including bonds, letters of credit, etc., equal to the amount of the transferred credit. N. Infrastructure Improvements. Infrastructure Phasing Plan. The Specific Plan includes an Infrastructure Phasing Plan that sets forth the infrastructure improvements that will be required for the Specific Plan Project Area. 2. Reservation of infrastructu a Capacity. To the extent that infrastructure (traffic, drainage, sewers, water, utilities, etc.) constructed or paid for by Owner in -24- DEC. 24DEC. 16 ' 97 (TUE) 13:21 COMMUNICATION Nc432 PAGE.25 DEC -16-1997 12:26 FROM N.G.K&E — O.C. OFFICE TO 18052552355 P.26 connection with the buildout of the Specific Plan Project exceeds that required to mitigate the Specific Plan Project, or that portion of the Project which is developed at the time the infrastructure is constructed or paid for, Owner may transfer the right and credit for such excess capacity to other developments within the Specific Plan Project or to other development projects within the Santa Clarita Valley owned (or controlled) by Owner. 3. Reimbursement and Apportionment. City shall enter into a reimbursement agreement with Owner providing for reimbursements to Owner from the City and/or other developers on a fair share basis for the portion (if any) of the cost of any dedications, public facilities and/or infrastructure that City may require as conditions of the Project Approvals or the Future Approvals, to the extent that they are in excess of those reasonably necessary to mitigate the impacts of the Specific Plan Project, whether such improvements are within or outside of the annexation area. 0. Development Agreement/Project Approvals. In the event of any inconsistency between any Project Approval and this Agreement, the provisions of this Agreement shall control. Section V. Cooperation/Implementation. A. Further Assurances, Covenant to Sign Documents. Each party shall take all actions and do all things, and execute, with acknowledgment or affidavit, if required, any and all documents and writings, that may be necessary or proper to achieve the purposes and objectives of this Agreement. B. Processing. Upon satisfactory completion by Owner of all required preliminary actions and payments of appropriate processing fees, if any, City shall, subject to all Iegal requirements, promptly initiate, diligently process, complete at the earliest possible time all required steps, and expeditiously grant any approvals and permits necessary for the development -25- BEC. 16 '97 (TUE) 13:22 COMMUNICATION No:32 PACE. 26 DEC -16-1997 1227 FROM N,G,K&E - O.C. OFFICE TO 18052552355 P.27 by Owner of the Specific Plan Area in accordance with this Agreement, including, but not limited to, the following: (i) the processing of applications for and issuing of all discretionary approvals requiring the exercise of judgment anddeliberation by City, including without limitation, the Future Approvals; (ii) the holding of any required public hearings; (iii) the processing of applications for and issuing of all ministerial approvals requiring the determination of conformance with the Project Approvals, this Agreement, and Applicable Rules, including, without limitation, site plans, development plans, land use plans, grading plans, improvement plans, building plans and specifications, and mini- sterial issuance of one or more final maps, zoning clearances, grading permits, improvement permits, wall permits, building permits, lot line adjustments, encroachment permits, conditional and temporary use permits, certificates of use and occupancy and approvals and entitlements and related matters as necessary for the completion of the development of the Specific Plan Area ("Ministerial Approvals"). C. Processing During Third P= Litigation. Tile filing of any third party lawsuit(s) against City or Owner relating to this Agreement or to other development issues affecting the Specific Plan Area shall not delay or stop the development, processing or construction of the individual Planning Areas, approval of the Future Approvals, or issuance of Ministerial Approvals, unless the third party obtains a court order preventing the activity. City shall not stipulate to the issuance of any such order. D. State. Federal or Case Law. Where any state, federal or case law allows City to exercise any discretion or take any act with respect to that law, City shall, in an expeditious and timely manner, at the earliest possible time, (a) exercise its discretion in such a -26- DEC. 16 ' 97 (TUE) 13:22 COMMUNICATION Nc:32 PACE. 27 DEC -16-1997 12:27 FROM N,GfK&E - O.C. OFFICE TO 18052552355 P.28 way as to be consistent with, and carry out the terms of, this Agreement and (b) take such other actions as may be necessary to carry out in good faith the terms of this Agreement. E. Other Governmental Bodies. To the extent that City, its Council, Planning Commission or any other City agency constitutes and sits as any other board or agency, it shall not take any action that conflicts with City's obligations under this Agreement. -27- DEC.16 '97 (TUE).13:22 COMMUNICATION Na:32 PAGE.28 DEC -16-1997 12:27 FROM N,G,K&E - O.C. OFFICE TO 18052552355 P.29 F. Defense of Agreement. Owner shall indemnify, defend (with counsel selected by Owner and approved by the City, which approval shall not be unreasonably withheld) and hold harmless City and its officers, employees and agents from and against any and all losses, liabilities, fines, penalties, costs, claims, demands, damages, injuries or judgments arising out of, or resulting from, City's approval of this Agreement or either party s performance pursuant to this Agreement. City further irrevocably agrees not to assert any representation in such action by Owner's counsel as a potential conflict of interest in any future proceeding involving City and hereby irrevocably waives any actual or potential conflict of interest. If this Agreement is adjudicated or determined to be invalid or unenforceable, City agrees, subject to all legal requirements, to consider modifications to this Agreement to render it valid and enforceable to the extent permitted by applicable law. Section VI. Getteral Provisions. A. Covenants Run 3vith the Land. All of the provisions, agreements, rights, powers, standards, terms, covenants and obligations contained in this Agreement shall be binding upon the parties and their respective heirs, successors (by merger, reorganization, consolidation or otherwise) and assigns, devisees, administrators, representatives, lessees, and all other persons acquiring the Specific Pian Area, or any portion thereof, or any interest therein, whether by operation of law or in any manner whatsoever, and shall inure to the benefit of the parties and their respective heirs, successors and assigns: All of the provisions of this Agreement shall constitute covenants running with the land. B. Transfers and Assignments. 1. Richt to Assign. Owner shall have the right to sell, assign or transfer all or portions of the real property comprising the Specific Plan Area to any person at any time during the term of this Agreement. -28- No : 92 PACE. 29 12/16/97 14:14 FAX 714 838 7878 NOSSAMAN—OC 2. Liabilities Upon Transfer. Upon the delegation of all duties and obligations and the sale, transfer or assignment of all or any portion of the Specific Plan Area, owner shall be released from its obligations under this Agreement with respect to the Specific Pian Area, or portion thereof; so transferred arising subsequent to the effective date of such transfer if (i) Owner has provided to City ten days' written notice of such transfer and (ii) the transferee has agreed in writing to be subject to all of the provisions hereof applicable to the portion of the Specific Plan Area so transferred. Upon any transfer of any portion of the Specific Plan Area and the express assumption of Owner's obligations under this Agreement by such transferee, City agrees to look solely to the transferee for compliance by such transferee with the provisions of this Agreement as such provisions relate to the portion of the Specific Plan Area acquired by such transferee. A default by any transferee shall only affect that portion of the Specific Plan Area owned by such transferee and shall not cancel or diminish in any way Owner's rights hereunder with respect to any portion of the Specific Plan Area not owned by such transferee. The transferee shall be responsible for the reporting and annual review requirements relating to the portion of the specific Plan Area owned by such transferee, and any amendment to this Agreement between City and a transferee shall only affect the portion of the Specific Plan Area owned by such transferee. Nothing in this Section shall affect or diminish Owner's rights.under the provisions of Section IV.N,2. above (Reservation of Infrastructure Capacity). Notwithstanding the provisions of this Section VI.B, a sale, assignment, or transfer of all or any portions of the real property comprising the Specific Plan Area shall not release Owner from its obligation under Section VX to indemnify, defend and hold harmless City from and against any challenges to this Development Agreement arising from any Administrative Modification, whether requested by Owner or its assignee, unless City approves such assignee in its reasonable.discretion. Such approval would be predicated on assignee's willingness to assume the provision of this paragraph and to use a legal firm acceptable to the City to defend. .29- -� ,� n� .Tns. •s.n+ COMMUNICATION No.39 PAGE -2 rA,. DEC -16-1997 12:28 FROM No GoK&E — O.C. OFFICE TO 18052552355 P.31 C. Morteaeee Protection. The parties hereto agree that this Agreement shall not prevent or limit Owner, in any manner, at Owner's sole discretion, from encumbering the Specific Plan Area or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Specific Plan Area. City acknowledges that the lender(s) providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with Owner and representatives of such lender(s) to negotiate in good faith any such request for interpretation or modification. City will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any mortgagee of a mortgage or a beneficiary of a deed of trust ("Mortgagee") of the Specific Plan Area shall be entitled to the following rights and privileges: 1. Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any mortgage or deed of mist on the Specific Plan Area made in good faith and for value. 2. The Mortgagee of any mortgage or deed of trust encumbering the Specific Plan Area, or any part thereof, who has submitted a request in writing to City in the manner specified herein for giving notices, shall be entitled to receive written notification from City of any default by Owner in the performance of Owner's obligations under this Agreement. 3. If City timely receives a request from a Mortgagee requesting a copy of any notice of default given to Owner under the terms of this Agreement, City shall provide a copy of that notice to the Mortgagee within ten days of sending the notice of default to Owner. The Mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. .30 - DEC -16 '97 (TUE) 13:24 COMMUNICATION No:32 PACE.31 DEC -16-1997 12:29 FROM N.G.K&E - O.C. OFFICE TO 18052552355 P.32 4. Any Mortgagee who comes into possession of the Specific Plan Area, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Specific Plan Area, or part thereof, subject to the terms of this Agreement; provided, however, in no event shall such Mortgagee be liable for any defaults or monetary obligations of Owner arising prior to acquisition of title to the Specific Plan Area by such Mortgagee, except that any such Mortgagee or its successors or assigns shall not be entitled to a building permit or occupancy certificate until all delinquent and current fees and other monetary obligations due under this Agreement for the specific Plan Area, or portion thereof, acquired by such Mortgagee have been paid to City. 17. Statement of Complianec. Within thirty days following any written request which either City or Owner may make from time to time, the other shall execute and deliver to the requesting party a statement certifying that: (1) this Agreement is unmodified and in full force and effect or, if there have been modifications hereto, that this Agreement is in full force and effect, as modified, and stating the date and nature of such modifications; (2) there are no current uncured defaults under this Agreement or specifying the dates and nature of any such defaults; and (3) any other reasonable information requested. The failure to deliver such state- ment within such time shall be conclusive upon the party which fails to deliver such statement that this Agreement is in full force and effect without modification and that there are no uncured defaults in the performance of the requesting party. The City Manager shall be authorized to execute any certificate. E. Default Failure by City or Owner to perform any term or provision of this Agreement for a period of thirty days from the receipt of written notice thereof from the other shall constitute a default under this Agreement, subject to extensions of time by mutual consent in writing. Said notice shall specify in detail the nature of the alleged default and the manner in -31- COMMUNICATION Nc:32 PACE.32 DEC -16-1997 12:29 FROM N,G.K&E - O.C. OFFICE TO 18052552355 P.33 which said default may be satisfactorily cured. If the nature of the alleged default is such that it cannot reasonably be cured within such 30 -day period, the commencement of the cure within such time period and the diligent prosecution to completion of the cure shall be deemed a cure within such period. Subject to the foregoing, after notice and expiration of the 30 -day period without C=7 the notifying party, at its option, may institute legal proceedings pursuant to this Agreement and/or give notice of intent to terminate this Agreement pursuant to Government Code Section 65868. Following such notice of intent to terminate, the matter shall be scheduled for consideration and review by the City Council within thirty calendar days in the manner set forth in Government Code Sections 65867 and 65868. Following consideration of the evidence presented in said review before the City Council, the party alleging the default by the other party may give written notice of termination of this Agreement to the other party. F. Annual Review. Pursuant to Government Code Section 65865.19 throughout the term of this Agreement, good faith compliance with the terms of this Agreement by Owner shall be reviewed by the Planning .Commission at the regularly scheduled Planning Commission meeting next following each annual anniversary of the Effective Date. If as a result of such review, City reasonably determines, on the basis of substantial evidence presented at such meeting, that Owncr has not complied in good faith with the terms and conditions hereof, City shall provide written notice thereof ("Notice of Non -Compliance"), stating in specific detail and specific reasons for such finding. After City delivers the Notice of Non -Compliance, Owner shall have the right to cure such non-compliance as provided in Scction VI.E. above. In the event that Owner does not timely cure the non-compliance after a Notice of Non -Compliance is delivered by City or, if during the period which Owner must cure such default, Owner ceases to make reasonable efforts to effect such cure, City may proceed to terminate this Agreement on ten -32- DEC, 16 '97 (TUE) 13:25 COMMUNICATION No:32 PAGE. 33 DEC -16-1997 1239 FROM N,G.K&E - O.C. OFFICE TO 18052552355 P.34 days' prior written notice to Owner in accordance with the termination procedure set forth in Section VIR above. City's failure to conduct an annual review shall not constitute a default under this Agreement. Cr. Default by Cily. In the event either party defaults (as defined in Section VIR herein) under the terms of this Agreement, either party shall have all rights and remedies provided herein or under applicable law, including the specific performance of this Agreement. H. LeM Action. Any party may, in addition to any other rights or remedies, institute legal action to cure, correct or remedy any default, enforce any covenant or agreement herein, enjoin any threatened or attempted violation hereof, or enforce by specific performance the obligations and rights of the parties hereto. Pursuant to Code of Civil Procedure Section 638, et seq., all legal actions shall be heard by a referee who shall be a retired judge from either the Los Angeles County Superior Court, the California Court of Appeal, the United States District Court or the United States Court of Appeals, provided that the selected referee shall have experience in resolving land use and real property disputes. Owner and City shall agree upon a single referee who shall then try all issues, whether of fact or law, and report a finding and judgment thereon and issue all legal and equitable relief appropriate under the circumstances of the controversy before such referee. if Owner and City are unable to agree on a referee within ten days of a written request to do so by either party hereto, either party may seek to have one appointed pursuant to Code of Civil Procedure Section 640. The cost of such proceeding shall initially be borne equally by the parties. Any referee selected pursuant to this Section VI.H. shall be considered a temporary judge appointed pursuant to Article 6, Section 21 of the California Constitution. -33- COMMUNICATION No:32 PAGE.34 DEC -16-1997 1230 FROM N G K&E - O.C. OFFICE TO 18052552355 P.35 I. Waiver-, Remedies Cumulative. Failure by City or Owner to insist upon the strict performance of any of the provisions of this Agreement, irrespective of the length of time for which such failure continues, shall not constitute a waiver of the right to demand strict compliance with this Agreement in the future. No waiver by City or Owner of a default or breach of any other party shall be effective or binding upon it unless made in writing, and no such waiver shall be implied from any omission by City or Owner to take any action with respect to such default or breach. No express written waiver of any defaults or breach shall affect any other default or breach, or cover any other period of time, other than any default or breach and/or period of time specified in such express waiver. One or more written waivers of a default or breach under any provision of this Agreement shall not be a waiver of any subsequent default or breach, and the performance of the same or any other term or provision contained in this Agreement. Subject to notice of default and opportunity to cure under Section VI.E., all of the remedies permitted or available under this Agreement, at law or in equity, shall be cumulative and alternative, and invocation of any such right or remedy shall not constitute a waiver or elec- tion of remedies with respect to any other permitted or available right or remedy. J. Future Litigation Expenses. 1. Payment to Prevailing Party. If City or Owner brings an action or proceeding (including, without limitation, any motion, order to show cause, cross-complaint, counterclaim, or third -party claim) by reason of defaults, breaches, tortious acts, or otherwise arising out of this Agreement, the prevailing party in such action or proceeding shall be entitled to its costs and expenses of suit including, but not limited to, reasonable attorneys' fees and expert witness fees. 2. Scope of Fees. Attorneys' fees under this Section shall include attorneys' fees on any appeal and, in addition, a party entitled to attorneys' _fees shall be entitled -34- (TUE) 13:26 COMMUNICATION No:32 PAGE.35 DEC -16-1997 1231 FROM N.G.K&E — O.C. OFFICE TO 16052552355 P.36 to all other reasonable costs and expenses incurred in connection with such action. In addition to the foregoing award of attorneys' fees to the prevailing party, the prevailing parry in any lawsuit shall be entitled to its attorneys' fees incurred in any post judgment proceedings to collect or enforce the judgment. This provision is separate and several and shall survive the merger of this Agreement into any judgment on this Agreement. K Non -Recourse. The obligations of Owner under this Agreement shall be without recourse to the assets of the general partners or of any general partner, officer, shareholder, director, unit holder or employee of Owner or any general partner of Owner. The sole recourse of City for any obligation of Owner under this Agreement shall be limited solely to the Specific Plan Area. L. Permitted Delays_ ftersedure by Subsecuent Laws. Permitted Delays. In addition to any specific provisions of this Agreement, performance of obligations hereunder shall be excused and the Term of this Agreement shall be similarly extended during any period of delay caused at any time by reason of: acts of God such as floods, earthquakes, fires, or similar catastrophes; wars, riots or similar hostilities; strikes and other labor difficulties beyond the party's control (including the party's employment force); the enactment of new laws or restrictions imposed or mandated by other governmental or quasi -governmental entities preventing this Agreement from being implemented; litigation involving this Agreement, the Project Approvals, the Future Approvals or the Ministerial Approvals, which directly or indirectly delays any activity contemplated hereunder; or other causes beyond the party's control. City and Owner shall promptly notify the other party of any delay hereunder as soon as possible after the same has been ascertained. 2. Supersedure by Subsequent Laws. If any federal or state law, made or enacted after the Effective Date prevents or precludes compliance with one or more -35- Ne :32 PAGE. 36 DEC -16-1997 1231 FROM N,G,K&E - O.C. OFFICE TO 18052552355 P.37 provisions of this Agreement, then the provisions of this Agreement shall, to the extent feasible, be modified or suspended as may be necessary to comply with such new law. Immediately after enactment or promulgation of any such new law, City and Owner shall meet and confer in good faith to determine the feasibility of any such modification or suspension based on the effect such modification or suspension would have on the purposes and intent of this Agreement. Owner and City shall have the right to challenge the new law preventing compliance with the terns of this Agreement, and in the event such challenge is successful, this Agreement shall remain unmodified and in full force and effect. At Owner's sole option, the term of this Agreement may be extended far the duration of the period during which such new law precludes compliance with the, provisions of this Agreement. -36- 13:27 COMMUNICATION No:32 PACE.37 DEC -16-1997 12)32 FROM N,G.K&E — O.C. OFFICE TO 18052552355 P.38 M. Amendment of A r gment. This Agreement maybe amended from time to time by mutual consent of the parties to this Agreement, in accordance with the provisions of Government Code Sections 65867 and 65868; provided, however, that any amendment which does not relate to the term, permitted uses, density or intensity of use, height or size of buildings, provisions for reservation and dedication of land, or monetary contributions by Owner shall not require notice or public hearing, before the parties may execute an amendment hereto. N. Qgeratino Memoranda. The provisions of this Agreement require a close degree of cooperation between City and Owner and the refinements and further development of the Planning Areas may demonstrate that clarifications are appropriate with respect to the details of performance of City and Owner. If and when, from time to time, during the term of this Agreement, City and Owner agree that such clarifications are necessary or appropriate, they shall effectuate such clarifications through operating memoranda approved by City and Owner, which, after execution, shall be attached hereto. No such operating memoranda shall constitute an amendment to this Agreement requiring public notice or hearing. The City Attorney shall be authorized to make the determination whether a requested clarification may be effectuated pursuant to this Section or whether the requested clarification is of such a character to constitute an amendment hereof pursuant to Section VI.M. The City Manager may execute any operating memoranda hereunder without City Council action. Section VII. Miscellaneous. -37- DEC.16 '97 (TUE) 13:27 COMMUNICATION No:32 PACE.3e DEC -16-1997 12:32 FROM N, G, K&E - O.C. OFFICE TO 18052552355 P.39 A. Negation of Partnershiv. The Specific Plan Project constitutes private development, neither City nor Owner is acting as the agent of the other in any respect hereunder, and City and Owner are independent entities with respect to the terms and conditions of this Agreement. None of the terms or provisions of this Agreement shall be deemed to create a partnership between or among the parties in the businesses of Owner, the affairs of City, or otherwise, nor shall it cause them to be considered joint venturers or members of any joint enterprise. B. No Third Parry Beneficiary. This Agreement is not intended, nor shall it be construed, to create any third -party beneficiary rights in any person who is not a party, unless expressly otherwise provided. C. Entire Agreement This Agreement sets forth and contains the entire understanding and agreement of the parties,. and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. D. Severability. Invalidation of any of the provisions contained in this Agreement, or of the application thereof to any person, by judgment or court order shall in no way affect any of the other provisions hereof or the application thereof to any other person or circumstance, and the same shall remain in full force and effect, unless enforcement of this Agreement, as so invalidated, would be unreasonable or grossly inequitable under all the cir- cumstances or would frustrate the purposes of this Agreement and the rights and obligations of the parties hereto. -38- DEC.16 '97 (TUE) 13:28 COMMUNICATION Na:32 PAGE.39 DEC -16-1997 1233 FROM N,G,K&E - D.C. OFFICE TO 18052552355 P.40 E. Construction of Agreement The provisions of this Agreement and the Exhibits hereto shall be construed as a whole according to their common meaning and not strictly for or against Owner or City and consistent with the provisions hereof, in order to achieve the objectives and purposes. Wherever required by the context, the singuIar shall include the plural and vice versa, and the masculine gender shall include the feminine or neuter genders, or vice versa. F. Section Headinlrs. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. G. Applicable Law and Interpretation. This Agreement shall be construed and enforced in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the obj ective and purposes of the parties hereto and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof. H. Notices Any notice shall be in writing and given by delivering the same in person or by sending the same by registered, or certified mail, return receipt requested, with postage prepaid, by overnight delivery, or by facsimile to the respective mailing addresses, as follows: -39- DEC.16 '97 (TUE) 13:28 COMMUNICATION No:32 PAGE.40 DEC -16-1997 1233 FROM N,G,K&E - O.C. OFFICE TO 18052552355 P.41 City: City of Santa Clarita 23920 Valencia Blvd., Suite 300 Santa Clarita, California 91355 Attention: City Manager Facsimile: (805) 259-8125 Copy to: Burke, Williams & Sorensen 611 West Sixth Street Los Angeles, California 90017 Attention: Carl K. Newton, Esq. Facsimile: (213) 236.2700 Owner: The Valencia Company 23823 Valencia Blvd. Valencia, California 91355 Attention: Randy Wheeler Facsimile:. (805) 255-2355 Copy to: Cox, Castle & Nicholson, LLP 2049 Century Park East, 28th Floor Los Angeles, California 90067 Attention: Ronald I. Silverman, Esq. Facsimile: (310) 277-7889 and to: Nossaman., Guthner, Knox & Elliott, LLP 18101 Von Karman Avenue. Suite 1800 Irvine, California 92612-1047 Attention: Robert I. McMurry, Esq. Either City or Owner may change its mailing address at any time by giving written notice of such change to the other in the manner provided herein at least ten days prior to the date such change is effected. All notices under this Agreement shall be deemed given, received, made or communicated on the earlier of the date personal delivery is effected or on the delivery date or attempted delivery date shown on the return receipt, air bill or facsimile. I. Time is of the Essence. Time is of the essence of this Agreement and of each and every term and condition hereof. -40- DEC. 16 '97 (TUE) 19:28 COMMUNICATION No:$2 PACE. 41 DEC -16-1997 12:33 FROM N,GPK&E - O.C. OFFICE TO 18052552355 P.42 1. Recordation. In order to comply with Section 65868.5 of the Government Code, the parties do hereby direct the City Clerk to record a copy of this Agreement against the Specific Plan Area with the County Recorder of Los Angeles County within ten (10) days, after the Effective Date. IN WITNESS WHEREOF, Owner and City have executed this Agreement as of the date fust hereinabove written. "City" "Owner" CITY OF SANTA CLARITA, a THE NEWHALL LAND AND FARMING political subdivision of the COMPANY, a California limited State of California partnership By-NEWHALL MANAGEMENT By: LIMITED PARTNERSHIP, A Mayor California Limited Partnership, its Managing General Partner ATTEST: By:NEWHALL MANAGEMENT City Clerk CORPORATION, A California Corporation, its Managing General By: Partner Assistant Approved as to Form: By: Name By: Title City Attorney By: Name Title 41- DE—C-16 '97 (TUE) 13:29 COMMUNICATION No:32 PAGE. 42 DEC -16-1997 12:34 FROM N,G,K&E - O.C. OFFICE STATE OF CALIFORNIA COUNTY OF TO 18052552355 P.43 On ,1997, before me, the undersigned, a Notary Public in and for said County and State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the within instrument. WITNESS my hand and official seal. STATE OF CALIFORNIA COUNTY OF Notary Public On , 1997, before me, the undersigned, a Notary Public in and for said County and State, personallyappeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the persons) whose name(s) istare subscribed to the within instrument and acknowledged to me that he/shehhey executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the within instrument. WITNESS my hand and official seal. Notary Public PAGE. 43 DEC -16-1997 12:34 FROM N,G,K&E — O.C. OFFICE TO 18052552355 P.44 EXHIBIT "A" LEGAL DESCRIPTION OF SPECIFIC PLAN AREA DEC. 16 '97 (TUE) 19:29 COMMUNICATION No:32 PACE. 44 DEC -16-1997 1234 FROM N,G,K&E - O.C. OFFICE TO 18052552355 P.45 EXHIBIT "B" SPECIFIC PLAN PROJECT - PLANNING AREAS MAP DEC -.16 '97 (TUE) 13:30 COMMUNICATION No:32 PAGE. 45 DEC -16-1997 12;35 FROM N,G,K&E - O.C. OFFICE TO 18052552355 P.46 EXHIBIT "C" SYSTEM FOR LANDSCAPING AND IMPROVEMENT OF RIVER CONSERVATION AREA 13:30 COMMUNICATION No:32 PAOE.46 N,GoK&E — O.C. OFFICE TO EXHIBIT "D" APPLICABLE RULES 18052552355 P.47 DEC. 16 '97 (TUE) 13:30 COMMUNICATION No:32 PAGE. 47 DEC -16-1997 12:35 FROM N,G,K&E - O.C. OFFICE TO 18052552355 P.48 EXHIBIT "E" LOT DESIGN AND CONFIGURATION STANDARDS DEC. 16 '97 (TUE) 1330 COMMUNICATION N0:32 PACE. 48 PUBLIC NOTICE NOTICE IS HEREBY GIVEN that on December 18, 1997, the City Council of the City of Santa Clarita introduced Ordinance 97-19 entitled: AN ORDINANCE OF CITY COUNCIL OF THE CITY OF SANTA CLARITA APPROVING PREZONE 97-001 (MASTER CASE 97-041) FOR ANNEXATION NO. 95-006 (NORTH VALENCIA) TO ALLOW FOR SPECIFIC PLAN 97-001; WHICH CHANGES THE ZONING CLASSIFICATION FROM LOS ANGELES COUNTY ZONE C2, MII/2, AND A2-5 TO CITY OF SANTA CLARITA ZONES SPECIFIC PLAN (SP) AND OPEN SPACE (OS) AND AMENDS PORTIONS OF ORDINANCE 96-12, AND ADOPTION OF THE NORTH VALENCIA SPECIFIC PLAN TO ESTABLISH SPECIAL DEVELOPMENT STANDARDS TO ALLOW FOR THE DEVELOPMENT OF A 706.6 ACRE PROPERTY KNOWN AS THE NORTH VALENCIA SPECIFIC PLAN AREA LOCATED WITHIN THE 858 ACRE NORTH VALENCIA ANNEXATION AREA IN THE UNINCORPORATED AREA OF LOS ANGELES COUNTY ADJACENT TO THE CITY OF SANTA CLARITA A certified copy of the complete text of the ordinance is posted and may be read in the City Clerk's Office, 23920 Valencia Boulevard, Suite 301, Santa Clarita, and/or a copy may be obtained from that office. Dated this 19th day of December, 1997. Sharon L. Dawson, CMC, City Clerk City of Santa Clarita STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) CITY OF SANTA CLARITA ) Sharon L. Dawson, being first duly sworn, deposes and says that she is the duly appointed and qualified City Clerk of the City of Santa Clarita and that by Friday, December 19, 1997, she caused a certified copy of the subject ordinance to be posted and made available for public review in the City Clerk's office and a copy of the ordinance summary to be published as required by law. Sharon L. Dawson, CMC, City Clerk City of Santa Clarita PUBLIC NOTICE NOTICE IS HEREBY GIVEN that on December 18, 1997, the City Council of the City of Santa Clarita introduced Ordinance 97-20 entitled: AN ORDINANCE OF CITY COUNCIL OF THE CITY OF SANTA CLARITA APPROVING THE ANNEXATION AND DEVELOPMENT AGREEMENT NO. 96- 001 WITH THE VALENCIA COMPANY FOR THE ANNEXATION OF 858 ACRES OF PROPERTY AND THE DEVELOPMENT OF 706.6 ACRES OF SUCH PROPERTY KNOWN AS THE NORTH VALENCIA SPECIFIC PLAN AREA LOCATED SOUTH OF NEWHALL RANCH ROAD, WEST OF BOUQUET CANYON ROAD AND VALENCIA BOULEVARD, NORTH OF MAGIC MOUNTAIN PARKWAY AND THE AUTO CENTER, AND EAST OF ANZA DRIVE A certified copy of the complete text of the ordinance is posted and may be read in the City Clerk's Office, 23920 Valencia Boulevard, Suite 301; Santa Clarita, and/or a copy may be obtained from that office. Dated this 19th day of December, 1997. Sharon L. Dawson, CMC, City Clerk City of Santa Clarita STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) CITY OF SANTA CLARITA ) Sharon L. Dawson, being first duly sworn, deposes and says that she is. the duly appointed and qualified City Clerk of the City of Santa Clarita and that by Friday, December 19, 1997, she caused a certified copy of the subject ordinance to be posted and made available for public review in the City Clerk's office and a copy of the ordinance summary to be published as required by law. Sharon L. Dawson, CMC, City -Clerk City of Santa Clarita