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HomeMy WebLinkAbout1999-01-12 - AGENDA REPORTS - OAK TREE REMOVE GATES KING (2)AGENDA REPORT City Manager Approval S Item to be presented by: Fred Follstad UNFINISHED BUSINESS DATE: January 12, 1999 SUBJECT: APPEAL OF PLANNING COMMISSION APPROVAL OF MASTER CASE 97-188 (OAK TREE PERMIT 97-021), ALLOWING FOR RETROACTIVE APPROVAL OF THE UNPERMITTED REMOVAL OF 64 OAK TREES LOCATED ON THE WESTERLY SIDE OF SIERRA HIGHWAY, 750 FEET SOUTH OF REMSEN STREET IN THE NEWHALL AREA OF THE CITY. THE APPELLANT IS GATES KING PARTNERS; MR. MARK GATES. DEPARTMENT: Planning and Building Services RECOMMENDED ACTION City Council to direct the City Manager to execute a Memorandum of Understanding (MOU) with Gates King Properties and Henry Arklin, subject to review of the City Attorney, and direct the applicant to submit a complete entitlement application within six months. BACKGROUND On March 3, 1998 the Planning Commission approved resolution P98-10 which approved an oak tree permit which retroactively permitted the removal of 64 oak trees. The approval included a number of mitigation measures including the replanting of 350 oak saplings and the payment of $500,000 to an oak tree mitigation fund. Based on these conditions, the applicant appealed the Planning Commission decision to the City Council. At the June 9, 1998 City Council meeting, testimony was heard regarding the appeal of Planning Commission approval of the retroactive oak tree permit. At that meeting, the City Council continued the item to November 10, 1998 and directed staff to work with the applicant to prepare an alternative plan. Staff has met with the applicant and the applicant's engineer and oak tree consultant, in an effort to establish a plan for the site, which would include oak tree mitigation. The item was continued at the November 10, 1998 meeting to allow staff and the applicant sufficient time to negotiate a MOU for the project site. The appeal is currently on hold pending final action by the City Council. The purpose of the MOU is 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, has Agenda :aW 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 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. As of this date, staff has not received any conceptual proposal for the possible development of the site. This makes it difficult to determine whether the City benefits associated with this MOU will exceed the mitigation and fees imposed on the retroactive oak tree permit and any mitigation associated with development of the site. Once a development project is submitted, staff will be able to fully analyze the benefits for the City to insure that they are over and above the value of the existing oak tree mitigation. Since a MOU is a non-binding agreement, staff feels there is no risk to the City in moving forward with the approval of the document. If the City Council were to move forward with this MOU, the applicant would then prepare an entitlement application including a request for a development agreement, which would be brought to the City Council at a future date. Since the project is part of an appeal of a retroactive oak tree permit, staff would ask the City Council to direct the applicant to submit the entitlement application within six months. 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 add or delete negotiation points from the document. • The Council could deny the request for the MOU and continue the 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: s: \pbs \current\ argates&flf NEEDHAM RANCH MEMORANDUM OF UNDERSTANDING Preamble This Memorandum of Understanding (MOU) is designed to summarize the basic elements of understanding of the City, Gates King Properties, LLC (Gates King) and Hank Arklin (Arklin) regarding the development of approximately 510 acres 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 Exhibit 1, 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 wildlife 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. 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 the possible increased retail sales generated in "Old Town Newhall". Needham Ranch Memorandum of Understanding Page 2 5. The project may enhance the City's ability for the control of localized flooding in the area 6. The project would help accelerate the City reaching its goal s for the redevelopment and economic development of "Old Town Newhall". 7. 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. Owner's Benefits 1. The Owner's 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 Owner's 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 Owner's 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. 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 Needham Ranch Memorandum of Understanding Page 3 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 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 supersede this MOU. Needham Ranch Memorandum of Understanding Page 4 The foregoing sets forth our Memorandum of Understanding as of January _, 1999. CITY OF SANTA CLARITA GATE KING PROPERTIES HENRY ARELIN George A. Caravalho, City Manager ATTEST: City Clerk Approved as to form: City Attorney Current/MOUgates. doc Mark Gates Henry Arklin Sent by: KEENAN LAND 4153262920; 01/05/99 1:58PM;Jet&X #165;Page 2/2 Received: 11 5196 11:18AM; 818 901 7451 .> KEENAN LAND; Page 2 01/08/99 11:18 FAX 818 901 7451 SINAND ENGINEERING IR 002/002 EXHIBIT 1 DEVELOPMENT STATISTICS FOR TENTATIVE TRACT No. 50283 ITEM G6166 PROPERTY ARKWN PjjQPERTY TOTAL 1. COMMERCIALANDUSTRIAL PAD 2. SPECIAL USE/TREE PRESERVE SUB -TOTAL: 3. PUBLIC STREETS 84' WIDE 60' WIDE 40' WIDE 26' WIDE (PRIVATE DR.) SUB -TOTAL: 4. GRADED & PLANTED SLOPES 5. PARK SITE 6. REMAINING NATURAL AREA TOTALS: 1-05-99 133.5 AC 17 Ac 150.5 Ac 44.7 Ac 44.7 Ac 178.2 Ac 17 Ac 195.2 Ac 11.73 Ac 5.09 Ac 18.82 Ac 4.25 Ac 4.25 Ac 1.7 Ac 1.7 At 1.72 Ac 1.72 Ac 19.40 Ac 5.1 Ac 24.5 Ac 46.8 Ac 9.5 Ac 56.3 Ac 150.0 Ac 150.0 Ac 55.4 AC 22.0 Ac 78.4 Ac 450.8 Ac 53.6 Ac 504.4 Ac EXHIBIT 2 ENTITLEMENT SCHEDULE Revise tentative map after City approval of updated oak tree consultant report 4 weeks Submit entitlement application (within 6 months of approval of MOU) 4 weeks Obtain additional consultant reports based on revised tentative map per DRC review 14 weeks City process for environmental documentation City hearings 20 weeks 14 weeks