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HomeMy WebLinkAbout1999-07-13 - AGENDA REPORTS - MOU GATES KING PARTNERS (2)AGENDA REPORT City Manager Approval Item to be presented b�: Fred Follstad CONSENT CALENDAR DATE: July 13, 1999 SUBJECT: MODIFICATIONS TO AN EXISTING MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN GATES KING PARTNERS, HENRY ARKLIN, AND THE CITY TO ALLOW FOR ADDITIONAL PROPERTIES AND A TIME EXTENSION FOR PROPERTIES LOCATED SOUTH OF SAN FERNANDO ROAD AND WEST OF SIERRA HIGHWAY. DEPARTMENT: Planning and Building Services RECOMMENDED ACTION City Council to direct the City Manager to execute a revised Memorandum of Understanding (MOU) with Gates King 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. The MOU, which will lead to a development agreement and has been negotiated between the City and Mr. Mark Gates who represents the property owners, is attached to this report. The deal points associated with the approved MOU for City benefits include the dedication of 150 acres of natural open space as mitigation for both past and future oak tree removals, construction of a road link between San Fernando Road and Sierra Highway, and a trail system. The applicant would be allowed to pay the Bridge and Thoroughfare fees at the building permit stage, the removal of all of the conditions imposed by the Planning Commission in regards to the retroactive oak tree permit, including the $500,000 oak tree mitigation requirement, and a 15 year term on the development agreement for the project. c e. d 11' 0 t1L- Continued?o: L 941 Ag enda ltem:.1-1_ One of the deal points associated with the approved MOU required the applicant to submit a project application within six months of that action. The applicant was also required to meet with some of the community groups prior to submitting to the City. Staff has met with the applicant and believes that he will be unable to complete these tasks by July 13, 1999. Therefore, staff and the applicant are requesting a two-month time extension on the required filing of the application. In addition, the applicant is requesting to include additional properties adjacent to the site to be included in the proposal. Attached to this report is the revised MOU. 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, schedule a hearing, and take action on the appeal of the Planning Commission's approval of the applicant's retroactive oak tree permit. • Any other action determined by the City Council. ATTACHMENTS Memorandum of Understanding FLF:kdl s:\pbs\counci1\argates4.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 Fernando 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 may be significant benefits to the parties if the development project outlined in the Project Summary, attached hereto as Fxhiblt t, is developed within the City. City Benefits 1. 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 wildiife corridor link between the Santa Susana and the San Gabriel Mountains and a potential park site near the existing William S. Hart Park. 2. 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 relleve 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 the 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' Denefits 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. 2. 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. S209 %W 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 not 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 exist 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 (CEQA). 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 superceds this MOU. The foregoing sets forth our Memorandum of Understanding as of July _, 1889. CITY OF SANTA CLARITA GATE KING PROPERTIES HENRY ARKLIN George A. Caravalho, Mark Gates Henry Arklin City Manager RR;X4-11 Needham Ranch Memorandum of Understanding Page 4 ATTEST: City Cleric Approved as to form: City Attomey OW9vW E � m � LU ! 2 ■ VO 0 14 m mmCi $ '° to .� J / 2 C4 ) � ■-2- a B§ s ' §a . ! k k ■ § 2 K ■ # k § ■ 2 § 2 § � § R ■ k k ! k § 2 � ƒ k ■ « k § J V) CN f § & § % LU s � •� � k �§ '$ 2 a N§ w 0 48 2 LU2 » % B ■ k § K ) $ § § # K 2 2 ( EXHIBIT 2 Revise tentative map after City approval of updated Oak Tree Consultant Report ---- -- –' — 1-4-99 T.T. 50283 4 weeks ReviseTtentative Map to add SCI and New Aridin Properties 8 weeks (68 Acres) _-________.r........-- • Submit for City DRC review•-- -- ---" 4 weeks Obtain additional consultant reports based on revised tentative map per DRG review — — ----- weeks City process for environmental documentation 14 weeks City hearings- -------------- — `— 20 weeks 54 weeks swg V