The URL can be used to link to this page

Home My WebLink AboutD-02 Staff Report - DDA 604 and 622 San Gabriel1 PUBLIC HEARING/SCHEDULED ITEM D-2 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: KURT CHRISTIANSEN, FAICP, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT DATE: MAY 7, 2018 SUBJECT: CONSIDERATION OF A DISPOSITION AND DEVELOPMENT AGREEMENT (“DDA”) BETWEEN THE CITY OF AZUSA AND SUMMITROSE INVESTMENTS, LP AND HILLROSE INVESTMENTS, LP, FOR DEVELOPMENT OF REAL PROPERTY GENERALLY KNOWN AS 604 AND 622 SAN GABRIEL IN THE CITY (APN 8611-004-902, 903, 904, 905, 906, 907, 912, AND 913). IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (PUB. RESOURCES CODE, § 21000 ET SEQ.: “CEQA”) AND THE STATE CEQA GUIDELINES (14 CAL. CODE REGS., § 15000 ET SEQ.), THE CITY COUNCIL CERTIFIED THE FINAL AZUSA TOD SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND ADOPTED FINDINGS PURSUANT TO CEQA,. THE CITY HAS NOT RECEIVED ANY COMMENTS OR ADDITIONAL INFORMATION THAT PRODUCED SUBSTANTIAL NEW INFORMATION REQUIRING RECIRCULATION OR ADDITIONAL ENVIRONMENTAL REVIEW UNDER PUBLIC RESOURCES CODE SECTIONS 21166 AND STATE CEQA GUIDELINES, SECTION 15162. NO FURTHER ENVIRONMENTAL REVIEW IS REQUIRED FOR THE CITY TO ADOPT THIS RESOLUTION. SUMMARY: The City of Azusa (“City”) is the owner of several parcels generally located at 600 through 622 San Gabriel Avenue in the City (APN 8611-004-902, 903, 904, 905, 906, 907, 912, and 913) (“Property”). The City has listed the property for sale and has received a proposal from Charles Company for a mixed- use residential and commercial development. On April 16, 2018, the City adopted Resolution No. 2018- C-34 declaring the City’s intention to sell the Property. As required by Government Code Section 37420, the City is conducting a public hearing to consider sale of the Property. Staff is recommending that the City Council hold the public hearing, overrule any protest, adopt the attached resolution, and authorize the City to enter into the DDA with the Summitrose Investments, LP and Hillrose Investments, LP, the single purpose entities created by Charles Company for the development of this project (collectively “Developer”), to allow the sale of the Property to Developer and for the City to ensure the development of the Property in accordance with the DDA. CONTINUED TO JUNE 4, 2018 2 RECOMMENDATION: Staff recommends the City Council take the following actions: 1) Open the public hearing and receive testimony from the public regarding the proposed sale of the Property; 2) Close the public hearing and, if any protest was received regarding the sale of the Property, overrule the protest by a 4/5 majority vote; 3) Find the project is consistent with the previously certified final Azusa TOD Specific Plan Environmental Impact Report and adopted findings pursuant to CEQA, which analyzed the potential impacts of this parcel’s use for mixed-use purposes and direct staff to file a Notice of Determination; 4) Approve the attached City Resolution No. 2018-C36 approving the DDA with Summitrose Investments, LP and Hillrose Investments, LP, for the sale and development of the Property; and 5) Authorize the City Manager to execute the DDA, in a form acceptable to the City Attorney, on behalf of the City. DISCUSSION: The City and Developer are interested in developing the Property as a mixed-use residential and commercial development. By entering into the DDA, the City and the Developer intend for the City to sell the Property to Developer and ensure that Developer develops the Property in accordance with the DDA. In accordance with California Government Code Section 37420 et seq., the City must hold a public hearing to accept any written protests received from interested parties and, if no protest is received, or if the city council votes to overrule a protest by a 4/5 majority, the City Council may adopt a resolution finding that the public interest and convenience require the sale of the Property and proceed with the sale of the Property. On December 5, 2016, the City approved an exclusive-right-to-negotiate agreement with The Charles Company, predecessor in interest to the Developer, to facilitate negotiations for potential development of several parcels, including the Property. The Developer proposed the acquisition and redevelopment of the Property as a mixed-used residential and commercial development. The City has found the Developer’s proposed acquisition of the Property and the Developer’s anticipated construction and completion of the commercial development on the Property in accordance with the terms of the DDA to be in the best interest of the City and of the health, safety and welfare of the City’s taxpayers and residents and are in accordance with the public purposes set forth in applicable law. Implementation of the DDA will further the goals and objectives of the City’s general plan by: (i) strengthening the City’s land use and social structure, and (ii) alleviating economic and physical blight on the Property and in the surrounding community. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq. “CEQA”) and the State CEQA Guidelines (14 Cal. Code Regs., § 15000 et seq.), the City Council certified the final Azusa TOD Specific Plan Environmental Impact Report and adopted findings pursuant to CEQA, which analyzed the potential impacts of this parcel’s use for commercial purposes. The proposed project does not require a change in General Plan or Zoning Code land use designation and the impacts of the proposed development were considered as part of the TOD Specific Plan 3 Environmental Impact Report. The City has not received any comments or additional information that produced substantial new information requiring recirculation or additional environmental review under Public Resources Code section 21166 and State CEQA Guidelines, section 15162. No further environmental review is required for the City to adopt this Resolution. FISCAL IMPACT: The City shall sell the Property to Developer for the purchase price of One Million Seven Hundred Sixty-One Thousand One Hundred Eighty-One Dollars ($ 1,761,181.00). Prepared by: Reviewed and Approved: Kurt E. Christiansen, FAICP Louie F. Lacasella Economic and Community Development Director Senior Management Analyst Reviewed and Approved: Sergio Gonzalez City Manager Attachment: 1. Resolution No. 2018-C36 Approving the Disposition and Development Agreement Exhibit A: Disposition and Development Agreement between the City and Summitrose Investments, LP and Hillrose Investments, LP 4 Attachment 1 Resolution Approving the Disposition and Development Agreement [Attached behind this cover page] RESOLUTION NO. 2018-C36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT WITH THE CITY OF AZUSA AND SUMMITROSE INVESTMENTS, LP AND HILLROSE INVESTMENTS, LP, FOR DEVELOPMENT OF REAL PROPERTY GENERALLY KNOWN AS 600 THROUGH 622 SAN GABRIEL IN THE CITY (APN 8611- 004-902, 903, 904, 905, 906, 907, 912, AND 913) WHEREAS, the City of Azusa, California (“City”) is the owner of several parcels generally located at 600 through 622 San Gabriel. in the City (APN 8611-004-902, 903, 904, 905, 906, 907, 912, and 913) (“Property”), and on December 5, 2016, the City approved an exclusive-right-to-negotiate agreement with The Charles Company to facilitate negotiations for potential development of several parcels, including the Property; and WHEREAS, Summitrose Investments, LP and Hillrose Investments, LP (collectively, “Developer”) are successors in interest to and the single purpose entities created by The Charles Company; and WHEREAS, Developer desires to acquire the Property to redevelop it with a mixed-use residential and commercial development and has negotiated a Disposition and Development Agreement (“DDA”) with the City to that end; and WHEREAS, on April 16, 2018, the City adopted Resolution No. 2018-C-34 declaring the City’s intention to sell the Property and setting time for a public hearing to consider the sale of the Property; and WHEREAS, Developer’s proposed acquisition of the Property and the Developer’s anticipated construction and completion of the commercial development on the Property in accordance with the terms of the DDA are in the best interest of the City and of the health, safety and welfare of the City’s taxpayers and residents and are in accordance with the public purposes set forth in applicable law. Implementation of the DDA will further the goals and objectives of the City’s general plan by: (i) strengthening the City’s land-use and social structure, and (ii) alleviating economic and physical blight on the Property and in the surrounding community. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES HEREBY RESOLVE AND FIND AS FOLLOWS: Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference. Section 2. Findings. The City Council intends to sell the Property to Developer and, based on the Recitals and all other information and testimony provided, finds that the public interest and convenience require the sale of the Property to Developer. The Property has been underutilized as a parking lot for many years and has become a blight on the community. The proposed use of the property will allow for continued use as a parking lot while providing for some development of the site. Section 3. Hearing. As required by California Government Code section 37423, a duly noticed public hearing was held by the City on May 7, 2018. Section 4. CEQA Compliance. In accordance with the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.: “CEQA”) and the State CEQA Guidelines (14 Cal. Code Regs., § 15000 et seq.), the City Council certified the final Azusa TOD Specific Plan Environmental Impact Report and adopted findings pursuant to CEQA. The City has not received any comment or additional information that produced substantial new information requiring recirculation or additional environmental review under Public Resources Code sections 21166 and State CEQA Guidelines, section 15162. No further environmental review is required for the City to adopt this Resolution. Section 5. Approval of Agreement. The City hereby approves the DDA, in substantially the form attached to this Resolution as Exhibit “A,” subject to any non-substantive revisions approved by the City Attorney, and authorizes the City Manager to sign and enter into the DDA and direct the City Manager to perform the obligations of the City under the DDA and directs staff to prepare and file a Notice of Determination Section 6. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City declares that the City would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. Section 7. Certification. The City Clerk of the City of Azusa shall certify to the adoption of this Resolution. Section 8. Effective Date. This Resolution shall become effective immediately upon its adoption. APPROVED AND ADOPTED THIS 7th day of May, 2018. ________________________________ Mayor ATTEST: ________________________________ City Clerk EXHIBIT A DISPOSITION AND DEVELOPMENT AGREEMENT between the City of Azusa and Summitrose Investments, LP and Hillrose Investments, LP [Attached behind this cover page]