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HomeMy WebLinkAbout1998-07-14 - AGENDA REPORTS - NORTH VALENCIA ANNEXATION (2)AGENDA REPORT City Manager Approval�� Item to be presented by: Je�ev Lambert NEW BUSINESS DATE: July 14, 1998 SUBJECT: MEMORANDUM OF UNDERSTANDING FOR THE NORTH VALENCIA 2 ANNEXATION DEPARTMENT: Planning and Building Services RECOMMENDED ACTION Consider proposed deal points for a non-binding North Valencia 2 Annexation Memorandum of Understanding (MOU) between the City and the Valencia Company. Provide modifications, if any, to the MOU. Direct the City Manager, or his designee, to execute the MOU. Authorize the City Manager, or his designee, to establish a contract with Impact Sciences, Inc. for preparation of an Environmental Impact Report (EIR) for an amount not to exceed $175,000. to account 501-2385, subject to City Attorney approval. BACKGROUND The Valencia Company approached the City to propose annexation and development of a specific plan for the 527 acre area generally bordered to the south by Newhall Ranch Road, to the east by McBean Parkway, and to the north and east by Copper Hill Drive, including Valencia High School. The proposed North Valencia 2 Annexation would be an uninhabited annexation, would include both developed and undeveloped areas and would be similar in size to the first North Valencia Annexation. A non-binding MOU to outline the deal points of the proposed annexation is attached to this report. In addition to an annexation and a specific plan, project entitlements proposed include a general plan amendment, prezone, and a tentative tract map. New development proposed as part of the North Valencia 2 project would include 2,500 residential units, a 250,000 square foot mixed-use center on the northwest corner of McBean Parkway and Decoro Drive and 45 acres of industrial land. Existing development within the North Valencia 2 annexation area includes the North Park Center (92,000 square feet at Decoro Drive and McBean Parkway) and the Plaza Del Rancho center (67,000 square feet at Newhall Ranch Road and Dickason Drive) and entitled, yet unbuilt, commercial centers located on the northwest corner of Dickason Drive and Newhall Ranch Road (80,000 square feet) PROVED __A and at the northeast comer of Copperhill Drive and Newhall Ranch Road (80,000). The proposed North Valencia 2 Annexation would include areas previously part of other Valencia Company developments referred to as East Creek, Decoro South, and West Creek. The project names refer to their locations along either side of San Francisquito Creek: The County is presently processing West Creek, a proposal for 3,533 residential units and approximately 249,000 square feet of commercial uses on 1,034 acres. A portion of the proposed annexation overlaps the West Creek development; however, the majority of the West Creek project is located to the north and west of the proposed annexation. Impact Sciences has been preparing an EIR for a portion of this project area for submittal to Los Angeles County. Should the project be redirected for processing with the City, the Valencia Company requests that the City accept the environmental work already begun. To comply with the City's environmental guidelines, the City would propose to contract directly with Impact Sciences to complete preparation of the EIR. Impact Sciences has submitted a contract that is presently under review. In order to avoid a loss of time during the Council's summer break, staff is requesting that the Council authorize the City Manager, or his designee, to approve the contract with Impact Sciences subject to City Attorney approval, for an amount not to exceed $175,000 which would include a contingency. This amount would be deposited with the City by the Valencia Company, similar to that done for other EIRs. The Memorandum of Understanding includes a provision calling for preparation of a fiscal impact analysis for the annexation. This fiscal impact analysis would be prepared by a consultant chosen by the City, with the cost to be paid by the Valencia Company. At this time, a consultant for the fiscal impact analysis has not been identified. ALTERNATIVE ACTIONS 1. Support larger annexation area and direct staff to work with Newhall Land and Farming to develop a revised project that includes the remainder of their Valencia development area. 2. Decline the proposed annexation. FISCAL IMPACT The applicant will deposit funds into account 501-2385. Authorization to proceed with the environmental impact report does not create a fiscal impact to the City's budget. The fiscal impact of the proposed North Valencia 2 project has not been identified at this time. The MOU includes a provision for preparation of a fiscal impact analysis that would be completed prior to Council consideration of project entitlements. ATTACHMENTS Memorandum of Understanding Map of the proposed North Valencia 2 Annexation and Specific Plan area s:\pbs\nnnex\nvmouar.doc NORTH VALENCIA ANNEXATION II�'+ MEMORANDUM OF UNDERSTANDING ((ii�� Preamble This Memorandum of Understanding (MOU) is designed to summarize the basic elements of understanding of the City of Santa Clarita (City) and Valencia Company regarding the annexation of approximately 1000 acres presently located in the County. The annexation would include two separate annexations to be processed concurrently: the NorthPark area (Tr 45440 and 46389) and North Valencia Annexation II (East Creek and Decoro South). The purpose of this MOU is to reflect that the City and Valencia Company have reached a non-binding understanding, based on economic and social factors and existing environmental information, with respect to certain points that are fundamental to both parties and without which the time and effort that would go into negotiations and processing an Annexation and Development Agreement and fully evaluating the environmental impacts of such actions would not be warranted. The City and Valencia Company acknowledge that each of the points outlined below is essential to the parties' determination to proceed with the negotiation and processing of the Annexation and Development Agreement. The City and Valencia Company recognize that there are significant benefits to both the City and Valencia Company if the Annexation Area outlined in the Project Summary attached hereto as Exhibit I and Exhibit 2 would be annexed into the City. City Benefits 1. FISCAL IMPACT • The existing NorthPark shopping center (92,000 SF) would be included in the annexation. • A 250,000 SF mixed use center would be proposed for the northwest corner of McBean Parkway and Decoro Road. • . Existing Plaza Del Rancho center (67,000 SF) would be annexed. • A proposed 80,000 SF retail center on the northeast comer of Copperhill Drive and Newhall Ranch Road previously entitled by Los Angeles County would be annexed. • Approximately 45 acres of industrial property previously entitled by Los Angeles County would be annexed. • A 60,000 SF retail center on the northeast comer of Dickason Drive and Newhall Ranch Road would be entitled. • Valencia Company agrees to pay for the preparation of an independent fiscal impact analysis for the annexation. The consultant and scope of the fiscal impact analysis shall be to the satisfaction of the City's Director of Administrative Services. • The fiscal impact of this annexation would be at least revenue neutral. 2. SAN FRANCISQUITO CREEK A. Valencia Company would agree to preserve the natural river bank edge consistent with the approach used in the North Valencia Annexation I project. Valencia Company proposes the determination and creation of an upland preserve zone between the Creek and proposed development where none presently exists. This zone provides an enhanced habitat for the wildlife existing in the riparian areas of the Creek. The evaluation of the upland preserve area would consider the proposed school /park area immediately north of Newhall Ranch Road on the east side of San Francisquito Creek. Valencia Company would use the Scientific Advisory Team with the concurrence of the City of Santa Clarita to establish the conditions and boundaries of the upland preserve zone. B. The City would require Valencia Company to use buried soil cement bank stabilization or other mutually agreed upon material to protect the upland preserve zone. The bank stabilization may be located within the upland preserve zone setback. Other materials including grouted riprap, ungrouted rip -rap, gunite or other approved material may be used as necessary at specific locations including bridges and side drains. When bank stabilization materials have been completed and accepted, the City would thereafter be responsible for the maintenance, repair, replacement and restoration of all stabilization materials, as well as the upland preserve zone. Valencia Company would agree to participate in an Areawide Landscape Maintenance District if established for all parcels within the City for flood control maintenance. Valencia Company obligation would cease upon transfer of the property to either a merchant builder or homeowner. C. Valencia Company also would agree to revegetate the upland preserve zone, which is currently fallow or active agricultural land beyond the level that is required to mitigate for project impacts to riparian vegetation (usually a 2:1 replacement) subject to the City obtaining grants or other funding sources to reimburse Valencia Company for revegatation costs above mitigation requirements. D. Valencia Company would agree to sell to the City approximately 111.6 acres of land within San Francisquito Creek and adjacent upland preserve zone including a 16 foot Class I trail on the east side of San Francisquito Creek and a 30 foot multi-purpose trail on the west side of the Creek (River Purchase Area). The proposed sale price is $613,800 which will be confirmed by an appraisal. Valencia Company agrees that up to the total amount of the river purchase will be used for improvements to the upland preserve zone including trails, landscaping, bank stabilization, rest rooms, river park rest areas, staging areas, educational features, etc. E. Prior to execution of the Development Agreement the Valencia Company shall disclose any and all existing and proposed easements, encumbrances, agreements and commitments associated with the river purchase area. Valencia Company shall disclose any existing or proposed agreements with the County of Los Angeles concerning this annexation area i.e. trail agreements RECREATIONAL BENEFITS A. Valencia Company proposes the construction of an extension of the City's River Trail system (16'+/-) within the upland preserve zone along the east side of San Fmncisquito Creek from Newhall Ranch Road to Copperhill Drive and a 30+/- foot multi-pupose trail which would include equestrians to the satisfaction of the Director of Parks, Recreation, and Community Services along the west side of San Francisquito Creek from Newhall Ranch Road to Decoro Drive. The trails would include undercrossings at the Decoro Bridge. Additional Quimby project credit should be given for these trails in the Development Agreement. B. Valencia Company would grant a 30' multi -use trail easement to the City from the westerly terminus of the South River project. Proceeding west along the south side of the Santa Clara River, the easement would cross over the railroad bridge to the north side of the river, and extend to Interstate 5. The crossing of I-5 would either be at the river or the old railroad bridge crossing, as approved by the Director of Parks, Recreation and Community Services. Quimby project credit should be given for these trails in the Development Agreement. If at some future date the City wishes to relocate the trail it will be at the City's full expense. C. Before the 201st building permit is pulled Valencia Company would agree to contribute $140,000 for the construction of the Santa Clara River trail described under item 3B. Valencia Company should receive full Quimby credit for this contribution. D. The City would be assured that an approximately 14.2 acre park site would be set aside within the East Creek project. Proposed park sites must meet the City Park Dedication guidelines and be approved by the Director of Parks, Recreation and Community Services. If the park meets City guidelines Valencia Company will receive full Quimby credit for dedication of this park site. Two alternate sites are proposed: one at the northwest corner of Newhall Ranch Road and McBean Parkway adjacent to the proposed Junior High School site and the other site adjacent to the existing 7 acre County Park in the general vicinity of McBean Parkway and Summerhill Lane. The City agrees that either site will be governed by the previously approved Los Angeles County North River Park and Trail Agreement. The City would agree to improve and maintain the park. E. Parkland and traileasements and improvements provided by the developer, which exceeds the Quimby obligation may be credited to other projects including projects in the County as a condition of the Development Agreement. 4. GENERAL PLAN CONSISTENCY/SPECIFIC PLAN A. The intensity of development within the proposed annexation area would be consistent with the City's General Plan, with adoption of a General Plan amendment for a Specific Plan. The proposed development would be substantially consistent with the.Park Project, the Santa Clara River Trails EIR and the Parks and Recreation Master Plan. B. Annexation into the City would allow this area to be developed in accordance with the City's General Plan and development standards as identified within the Specific Plan. C. The North Valencia Annexation II project proposes 2,500 units which would be below the units allowed under the County General Plan. D. Valencia Company would agree that a Specific Plan would be developed and processed instead of utilizing the CUP process. This provides for a higher level of master planning and the development of standards that better meet the objectives and goals of the General Plan. This approach allows for the incorporation of principles associated with new urbanism. E. New roads within North Valencia Annexation II would be built to City General Plan highway standards and may include traffic calming techniques. City upon verification of meeting City standards will accept public road improvements for maintenance and liability that are constructed by Valencia Company within the annexation area. F. Valencia Company would construct two pedestrian bridges (one over McBean Parkway north of Decoro Drive another over Copperhill east of McBean Parkway) to provide pedestrian linkage to paseos, trails, parks and commercial areas. City would accept maintenance and liability responsibility through a Landscape Maintenance District upon annexation of these areas and completion of all construction to the satisfaction of the City's Director of Transportation and Engineering Services. G. Although not within the North Valencia Annexation II area, Valencia Company will contribute to the construction of the 4 lane Decoro Bridge (87 feet wide) over San Francisquito Creek as part of the development of the West Creek development, which would enhance access from existing communities within the City. City would agree to accept location, span, clearance, and cross-section previously approved by Los Angeles County. Bridge design includes 11 foot sidewalk/paseo on north side of bridge, 8 foot sidewalk on south side and 68 foot roadway between curbs. H. All Bridge and Thoroughfare District related improvements as outlined in the qualifying improvements for the Valencia Bridge and Thoroughfare District would receive Bridge and Thoroughfare District credit. Additionally, improvements to other General Plan Highways outside the Valencia Bridge and Thoroughfare District should receive Bridge and Thoroughfare District credits as part of the Development Agreement. 5. OTHER BENEFITS A. Valencia Company shall pay the entire City's Transit Fee prior to the issuance of a grading permit for any phase of the North Valencia II project. Fee to be reduced by 50%. Fee to be based on total number of units constructed. B. Valencia Company shall provide decorative tilework on the planned Decoro Drive Bridge. C. Valencia Company shall provide digital mapping for the entire North Valencia Annexation II area for incorporation into the City's GIS. A complete address list shall be provided for all of NorthPark. D. The Valencia Company agrees to consider providing five bus pads and bus shelters within North Valencia and/or Valencia Industrial Center as consideration for a development agreement. These transit facilities would be in addition to the bus shelters and tum outs required for development within the North Valencia II Annexation area. Valencia Company Benefits 1. ENTITLEMENTS A. The City intends that entitlements for projects that are approved by the County prior to annexation would continue to be governed by the conditions imposed by the County and the County's rules and regulations. B. The City intends, if requested by Valencia Company, to accept projects and project documentation being processed by the County for the North Valencia Annexation II (East Creek and Decoro South) project for continued processing in the City. Valencia Company has already begun environmental studies for various projects within the proposed annexation area in preparation for County filings that are now being abandoned. With the agreement of the environmental consultant, the City will accept the environmental consultant and the environmental impact report currently under preparation for this project. Upon agreement with the environmental consultant, the City agrees to enter into an independent contract with the environmental consultant to finish preparation and processing of environmental documentation in accordance with the City's environmental guidelines. The Valencia Company shall pay all fees associated with environmental review. C. City would agree to waive all fees for the transfer of all completed improvements and accept all work for maintenance and liability upon final inspection and acceptance by the County. , D. The City and Valencia Company would use good faith efforts to process the entitlements, development agreement, development plans and permits for the density and intensity of development shown on the Project Summary Exhibit 1 and Exhibit 2 in accordance with the following schedule: file LAFCO application in October 1998, release EIR in October 1998, complete Planning Commission hearings in November 1998 complete City Council hearings in January 1999, complete Annexation in March 1999. E. Product flexibility as enumerated in the North Valencia Annexation Development Agreement shall be permitted. F. Valencia Company would reserve the right to construct flood control, utilities and other reasonably necessary improvements, including revegatation sites as required by regulatory agencies within the River Purchase Area. G. City shall only charge and impose those fees and exactions relating to development 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 calculatedon that date. 2. PUBLIC FINANCING The City would consider, at Valencia Company's request, establishing a Community Facilities Districts (CFD), assessment districts, tax increment infrastructure financing districts, integrated financing districts, (revenue increment financing vehicles to be considered) and/or other public financing mechanisms in the annexation area for the construction of eligible public facilities including but not limited to roads, bridges, water and sewer facilities, lakes, parks, trails, flood control structures, etc, through the issuance of fixed or variable interest rate (taxable or tax exempt) bonds. The terms and conditions of any financing would be in compliance with the City debt policy. Conclusion In particular, the City and Valencia Company recognize that all the City actions called for in the MOU must be considered and determined by the City pursuant to the procedures applicable to each action. During these procedures, the actions would be subject to appropriate review and analysis under the California Environmental Quality Act, Public resources Code §§ 21000-21178.1; California Code of Regulations, Title 14, §§15000- 15387. The City has not made any pre judgment as to the results or the implication of the CEQA review process. Actions which are proposed in the MOU may be adopted, modified, replaced with alternative actions, or rejected entirely after an environmental analysis, and the City may ultimately pass all, some, or.none of the City actions proposed. Neither the City nor Valencia Company intend this MOU to be a contract or a binding commitment to a particular course of action. No commitment would exist unit a final Annexation and Development Agreement has been considered processed and approved. The parties understand and acknowledge that, notwithstanding the terms of this MOU, the Annexation and Development Agreement eventually negotiated may not contain a particular provision or provisions in the MOU. The parties agree that under this MOU neither the City nor Valencia Company promises or is obligated to do anything beyond the execution of the MOU itself. The City intends to consider the term of the Annexation and Development Agreement to be 15 years. Upon execution of the MOU, City and Valencia Company would commence the pre -zone and a Mitigated Negative Declaration. Subsequent development proposals would be subject to environment review in accordance with the California Environmental Quality Act (CEQA). The City and Valencia Company intend to execute a conveyance agreement setting forth the terms and conditions of the trail easement and river purchase. It is the intent of both parties to reach final approval on acceptable entitlements and annexation to the City prior to conveyance of the trail easement and river purchase. Unless and until an Annexation and Development Agreement would be approved and executed, either the City or Valencia company may, at any time and for any reason, refuse to proceed with and withdraw from the negotiations. By executing this MOU, the City and Valencia Company again wish to confirm that what is set forth in the MOU represents the basic and fundamental elements of understanding of the City and Valencia Company regarding the basis for their going forward with the negotiation of an Annexation and Development Agreement. The foregoing sets forth our Memorandum of Understanding as CITY OF SANTA CLARITA George A. Caravalho City Manager ATTEST: City Clerk Approved as to form: City Attorney VALENCIA COMPANY Randy Wheeler Executive Vice President Greg Medeiros Vice President M I Existing Self Storage Existing — Plaza Del C Rancho Center /I rr Edison Easement G, Planning Sub -Area I 1 1 2 . 7 ttp 1 4 1 5 1 6 1 7 1 8 1 9 San Francisquito Creek Acreage 36.1 ,.i 1 37.8 1 58.6 60.0 129.6 ing 51.8 School Edison Easement G, Planning Sub -Area I 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 San Francisquito Creek Acreage 36.1 1 66.3 1 37.8 1 58.6 60.0 129.6 27.6 51.8 59.8 O © © D Eastcreek SubArm:I St&Ara 2 Sub•Ara 3 Sub•Ara 4 Decoro South ©Sub -Area 5 0 Sub -Area 6 0 Sub -Area 7 San Francisquito Creek 0 Sub -Area 8 0 Sub -A= 9 — • • Sub -Area Boundary Planning Area Boundary --- Specific Plan Boundary EXHIBIT 2 Planning Area Map NORTH VALENCIA SPECIFIC PLAN NO.2