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HomeMy WebLinkAbout2003-02-25 - AGENDA REPORTS - PORTA BELLA DEVAGMT COMPLIANCE (2)CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval,--V----,O,/ Item to be presented by: Jeffrey Lambert PUBLIC HEARING DATE: February 25, 2003 SUBJECT: APPEAL OF THE PLANNING COMMISSION'S ADOPTION OF RESOLUTION P02-12, FINDING THAT SANTA CLARITA, LLC AND BERMITE RECOVERY, LLC HAVE NOT COMPLIED IN GOOD FAITH WITH THE TERMS OF THE PORTA BELLA DEVELOPMENT AGREEMENT DEPARTMENT: Department of Planning and Building Services RECOMMENDED ACTION City Council continue the Public Hearing to the May 13, 2003, City Council meeting. BACKGROUND In February 1996, the Porta Bella Development Agreement (the "Agreement") was approved by the Santa Clarita City Council in connection with the proposed development of the 988.6 -acre Porta Bella project site. At the time this Development Agreement was signed, Whittaker Porta Bella, Inc. was the property owner. In January, 1999, ownership of the Porta Bella property transferred to Santa Clarita, LLC ("SCLLC"), led by its managing member Remediation Financial, Inc. ("RFI"). Subsequently, an approximate 10 acre (more or less) parcel was acquired by Bermite Recovery, LLC ("Bermite"). At its regular meeting of September 25, 2001, the Santa Clarita City Council directed City staff to initiate a compliance review of the Agreement in accordance with Section 6(b)(x) of the Agreement. The City's Director of Planning and Building Services performed a review of the Agreement and the performance of SCLLC and Bermite under the terms of the Agreement. The Director concluded that SCLLC and Bermite have not complied in good faith with the terms of the Agreement. On March 14, 2002, the Planning Commission conducted a public hearing to determine whether Santa Clarita, LLC and Bermite Recovery, LLC have complied in good faith with the provisions of the Porta Bella Development Agreement. Following consideration of the staff report and written materials submitted by the public and by SCLLC, a staff presentation, a presentation from SCLLC, and public testimony, the Commission found that SCLLC and Bermite Recovery, LLC are noncompliant Continued To: 0.3 Agenda Item with four provisions of the Porta Bella Development Agreement, as had been outlined by the City's Director of Planning & Building Services. At the April 2, 2002, Planning Commission meeting, the Commission adopted Resolution P02-12 finding that Santa Clarita, LLC and Bermite Recovery, LLC have not complied in good faith with the provisions of the Porta Bella Development Agreement. On May 2, 2002, SCLLC submitted a letter to the City of Santa Clarita appealing the Planning Commission's adoption of Resolution P02-12. A public hearing to consider SCLLC's appeal of the Planning Commission's decision was originally scheduled for the June 25, 2002, City Council meeting and noticed accordingly. This item was continued from the June 251h meeting to October 22, 2002. On September 20, 2002, RFI/SCLLC submitted a letter requesting a further continuance of this hearing. At the October 22nd meeting, the Council continued the public hearing on this matter to November 26, 2002. In October 2002, Cherokee Investment Partners, LLC, a "brownfield remediation and redevelopment" company, signed a Purchase and Sale Agreement with RFI/SCLLC for the acquisition of the former Whittaker-Bermite property. The agreement contains a 120 -day due diligence period during which Cherokee conducted research to determine whether or not to proceed with the acquisition. During this 120 -day period, the City has also conducted a comprehensive due diligence process on Cherokee to assess the company's reputation and ability, financially and technically, to clean the Whittaker-Bermite property to the community's satisfaction. The Whittaker-Bermite Council Subcommittee has played a key role in this effort. On November 26, 2002, the Council considered RFI/SCLLC's appeal of the Planning Commission's decision after receiving a staff presentation and testimony from RFI/SCLLC. Following Council discussion, the Council continued the Public Hearing to the February 25, 2003 City Council meeting in consideration of the ongoing due diligence period being conducted by Cherokee Investment Partners, LLC. The original 120 -day due diligence period has been extended and is expected to continue another 60-90 days from February 7, 2003. It is for this reason that staff recommends the City Council continue the Public Hearing to consider RFI/SCLLC's compliance with the terms of the Porta Bella Development Agreement to the May 13, 2003, meeting, at which time Cherokee's due diligence period will be complete. ALTERNATIVE ACTIONS Other actions as determined by the City Council FISCAL IMPACTS No fiscal impacts to the City's budget are anticipated by the recommendation listed in this report. JJL: LMH S:\pbs\advance\ptabla\council\February 25 Council Agenda Report.doc NOTICE OF CONTINUED PUBLIC HEARING CITY OF SANTA CLARITA CITY COUNCIL NOTICE IS HEREBY GIVEN that the City Council of the City of Santa Clarita, at its regular meeting held February 25, 2003, continued a public hearing on 11. APPEAL OF THE PLANNING COMMISSION'S ADOPTION OF RESOLUTION NO. P02-12, FINDING THAT SANTA CLARITA, LLC AND BERMITE RECOVERY, LLC HAVE NOT COMPLIED IN GOOD FAITH WITH THE TERMS OF THE PORTA BELLA DEVELOPMENT AGREEMENT - This item is for Council to consider an appeal of the Planning Commission's determination that Santa Clarita, LLC and Bermite Recovery, LLC have not complied in good faith with the terms of the Porta Bella Development Agreement. In accordance with the Section 6 (b)(x) of the Porta Bella Development Agreement, a compliance review was initiated in the Fall of 2001 and a public hearing before the Planning Commission was held on March 14, 2002, to inform the Commission of the Director of Planning and Building Service's findings of noncompliance and to consider other evidence. Thereafter, at its meeting on April 2, 2002, the Commission adopted Resolution P02-12 finding that Santa Clarita, LLC and Bermite Recovery, LLC have not complied in good faith with four provisions of the Porta Bella Development Agreement. Santa Clarita, LLC in a letter to the City dated May 2, 2002, appeal the Planning Commission's determination of noncompliance to the City Council. to May 13, 2003. The continued public hearing will be held at or after 6:00 p.m. in the Council Chamber at 23920 Valencia Blvd., Santa Clarita, California. Dated this 261h day of February, 2003. SHARON L. DAWSON, CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. AFFIDAVIT OF POSTING 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 on February 26, 2003, she caused the above notice to be posted at the door of the Council Chamber located at 23920 Valencia Blvd., Santa Clarita, California. Forms/contph.doc SHARON L. DAWSON, CITY CLERK Santa Clarita, California