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HomeMy WebLinkAbout1999-09-28 - AGENDA REPORTS - MOU GATES KING MOD (2)AGENDA REPORT City Manager Approval Item to be presented by: Fred Follstad UNFINISHED BUSINESS DATE: September 28, 1999 SUBJECT: MODIFICATIONS TO AN EXISTING MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN GATES KING PARTNERS, HENRY ARKLIN, AND THE CITY TO ALLOW FOR ADDITIONAL PROPERTIES LOCATED SOUTH OF SAN FERNANDO ROAD AND WEST OF SIERRA HIGHWAY. DEPARTMENT: Planning and Building Services City Council direct the City Manager to execute a revised Memorandum of Understanding (MOU) with Gates King Properties, SCI Properties and Henry Arklin, subject to review by the City Attorney. BACKGROUND At the January 13, 1999 City Council meeting, the City Council voted to enter into a Memorandum of Understanding (MOU) with Mr. Mark Gates regarding the property in the southeastern portion of the City. The purpose of this MOU was to outline a non-binding understanding between the City and the owners, which allows the developer to move forward with submittal of applications for the development of the project site. At the July 13, 1999 City Council meeting, the City Council voted to modify the MOU to extend the deadline for the submittal of development plans an extra two months to September 14, 1999. The applicant submitted the project on September 13, 1999. At that meeting, the applicant also requested to add additional properties into the MOU to be part of the development plans. The Council directed staff to return with additional information and an exhibit highlighting the areas to be added. An exhibit showing the subject properties is attached. One of the areas to be added is property owned by SCI Properties, who also own Eternal Valley Memorial Park. The area to be added, approximately 59 acres, is not currently used as a cemetery, but is adjacent to that use. This area contains a portion of Newhall Creek, which is slowly eroding a slope adjacent to Sierra Highway. During discussions, staff identified this area I IM of concern and asked the applicant to address this as part of the development. The second area to be added is approximately nine acres on Pine Street owned by Mr. Hank Arklin. The site is adjacent to the existing green -waste facility, which is currently under a clean-up program. The green -waste facility is part of the original MOU and will be analyzed in the environmental impact report for the development project. The property, which is not part of the green -waste facility, is being added for two reasons. First, Mr. Arklin recently acquired the property after the original MOU was approved. Second, while the applicant was conducting community meetings, he was asked to try and create a link between the Pioneer Oil Refinery, Pine Street and Hart Park, which contains Heritage Junction. This parcel would create the ability for this linkage since the parcel is located between Pine Street and the Oil Refinery as indicated on the attached exhibit. Staff has attached a copy of the revised MOU to this report, which contains the additional properties for the Council's review. FISCAL IMPACT Since this MOU is a non-binding agreement and does not identify any initial capital outlay by the City of Santa Clarita, no fiscal impacts are envisioned at this time. ALTERNATIVE ACTIONS Staff has identified the following alternative actions the Council could take: The Council could deny the request for the revision to the MOU, thereby excluding the properties owned by SCI and/or the additional property owned by Mr. Arklin. • Any other action determined by the City Council. Memorandum of Understanding Map Exhibits JJL:FLF:kdl s:\pbs\council\argates5.flf NEEDHAM RANCH MEMORANDUM OF UNDERSTANDING Preamble This Memorandum of Understanding (MOU) Is designed to summarize the basic elements of understanding of the City, Gate King Properties, LLC (Gate King). and Hank Arklin (Arklin) regarding the development of approximately 578 acres, including an additional 68 acres added to the project area after the original MOU was executed, generally located south of San Femando Road between Sierra Highway and Pine Street and southerly of Eternal Valley Memorial Park within the City of Santa Clarita. The purpose of this MOU is to outline a non-binding understanding between the City and Gate King and Arklin (Owners) with respect to certain points that are fundamental to both the City and Owners and without which, the time and effort that will go into negotiating and approving a Development Agreement and other entitlements would not be warranted. The City and the Owners also recognize that each of the points outlined below are essential to proceeding with the negotiation and approval of the development agreement and other entitlements. It is understood and agreed that this MOU does not contain all the essential terms that the parties expect will be part of an agreement or terms of approval. The City and the Owners recognize that there development project outlined in the Project developed within the City. City Benefits may be significant benefits to the parties if the Summary, attached hereto as Exhibit 1, is The Owners would dedicate approximately 150 •acres of natural open space, current market value of approximately $450,000, to the City or their designee along the southern portion of the property, This acreage would provide a wildlife corridor link between the Santa Susana and tiie San Gabriel Mountains and a potential park site near the existing William S. Hart Park. Z. The Owners would provide trail connections to the City's trail system and Hart Park utilizing existing easements wherever possible. The Owners -would be responsible for the grading of the trails to City standards. 3. The applicant would construct a road to connect San Fernando Road to Sierra Highway through the project site. This road would be built to City standards and dedicated to the City. This road may help to relieve congestion on San Fernando Road and provide improved access to and from the Antelope Valley Freeway. 4. The City ',would gain increased tax revenues with the implementation of this project from the companies occupying the development as well as from iha possible increased retail sales generated in "Old Town Newhall." 5. The project may enhance the City's ability for the control of localized flooding in the area. Needham Ranch Memorandum of Understanding Page 2 6. The project would help accelerate the City reaching its goals for the redevelopment and economic development of "Old Town Newhall." Under an approved development agreement, the City may obtain mitigation measures and development commitments beyond those that could be required solely to mitigate the impacts of the contemplated development, including the settlement of the retroactive oak tree permit application filed by Gate King in connection with the removal of oak trees without a City oak tree permit. 8. The Owners are in discussions with the Newhall School District about the development of a new elementary school within the project boundaries. The development of a new elementary school will benefit the City and the residents of Santa Clarita. Owners' Benefits 1. The Owners would submit and the City would process various development entitlements including, but not limited to: tentative tract map, hillside review, oak tree permit, development agreement, possible zone change, possible general plan amendment and environmental impact report. The City may share with the Owners information, studies and other data it has obtained or will obtain from other sources that are relevant to the proposed entitlements in order to expedite and streamline the permitting process. The Owners' dedication of open space and preservation of oak trees would be revised mitigation for the approved retroactive oak permit and the City Council Would remove all conditions placed on the permit by the Planning Commission. Subject to additional environmental review, the open space dedication may also be mitigation toward the removal of any additional oak trees. necessary to accomplish the proposed development. 3. The City will consider, at the Owners' request, establishing a Community -Facilities District (CFD), assessment districts, tax increment infrastructure financing districts, integrated financing districts and/or public financing mechanisms for eligible .public improvements, through the issuance of fixed and variable interest rate bonds, subject to City policy. 4. The applicant and the City may establish a payment phasing plan for the Bridge and Thoroughfare fees, which allows payment of the fees in effect when building permits are issued. These fees shall be based on the area calculations, predicated on the land use designations for the complete site, as contained within the adopted Bridge and Thoroughfare ordinance. 5. Dedication of the open space in the southern portion of the project may be credited against any parks and recreation fees assessed against the project. SW9 VW Needham Ranch Memorandum of Understanding Page 3 6. The City would cooperate with the owners to obtain entitlements, approvals or extension of services from other governmental agencies that have jurisdiction over the project or that control construction of the infrastructure required for the project, including but riot limited to water, sewer and public transportation. 7. The City would establish the rate, amount, rate or proportion of applicable City -imposed development fees, exactions or dedications at rates, amounts or proportions in existence on the date of the adoption of the Development Agreement unless specified within the Development Agreement. Conclusion Neither the City nor the Owners intend this MOU to be a binding contract or to be bound by this MOU. No formal agreement will east until such time that the formal Development Agreement and development entitlements have been approved and executed by the City and the Owners. The City intends to consider the term of the Development Agreement to be 15 years. Upon execution of the MOU, the City and the Owners will commence and process formal applications for the project on a schedule to comply to the best of the parties' ability with the project schedule attached hereto as Exhibit 2. Development proposals will be subject to environmental review in accordance with the California Environmental Quality Act (CEO,A). It is the intent of both parties to reach mutual agreement on all entitlements for the project. Unless and until the project is approved and executed, either the City or the Owners may, at any time and for any reason, refuse to proceed with and withdraw from the negotiations. By executing this MOU, the City and the Owners again wish to confirm that what is set forth in this MOU represents the basic and fundamental elements of understanding of the City and the Owners regarding the basis for their going forward with the processing of .development applications and the good faith negotiation of a development agreement. If the parties execute a development agreement, that agreement will supersede this MOU. The foregoing sets forth our Memorandum of Understanding as of September 1999 CITY OF SANTA CLARITA GATE KING PROPERTIES George A. Caravalho, Mark Gates City Manager 57119 V¢5 HENRY ARKLIN Henry Arklin Needham Ranch Memorandum of Understanding Page 4 ATTEST: City Clerk Approved as to form: City Attorney SM M3 d � m 2 Lu m m e ® 2 © ■ ƒ .. � ■° ■� . � § ) b. m ) 0. § ) & 4 # # 17 # k Lu to ) ){ ) § § ((( ( §§ §) k k \ !l: § $ EXHIBIT 2 1-4-99 T.T. 50283 ENTITLEMENT SCHEDULE • Revise tentative map after City approval of updated Oak Tree Consultant Report — -------- — --- 4 weeks • ReviseTtentative Map to add SCI and New Arklin Properties (68 Acres) 8 weeks • Submit for City DRC review•----- —---------- -- — -- ---- 4 weeks • Obtain additional consultant reports based on revised tentative map per DRC review ---- ----------- 14 weeks • City process for environmental documentation------------ —14 weeks • City hearings— -------20 weeks 64 weeks jW9 YW XLI af I 0 v sci kkl,GIN-AL ,OJECT SITE k L4F