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HomeMy WebLinkAboutD-3 Staff Report Disposition and Development Agreement Golcheh DDAPUBLIC HEARING D-3 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER FROM: KURT CHRISTIANSEN, FAICP, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT DATE: MARCH 6, 2017 SUBJECT: CONSIDERATION OF A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE CITY OF AZUSA, THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, AND AZUSA CAPITAL LLC., FOR DEVELOPMENT OF REAL PROPERTY GENERALLY LOCATED AT 303 E FOOTHILL BLVD.; AND 714, 716, 720, 726, AND 728 N. DALTON AVE. IN THE CITY (APNS 8608-029-910; 8608-029-904; 8608-029-906; 8608-029-907; 8608- 029-908; 8608-029-909) SUMMARY: The City and the Successor Agency to the former Redevelopment Agency are owners of several parcels generally located at 303 E Foothill Blvd.; and 714, 716, 720, 726, and 728 N. Dalton Ave. in the City (APNs 8608-029-910; 8608-029-904; 8608-029-906; 8608-029-907; 8608-029-908; 8608-029-909) (“Property”). Pursuant to the Long Range Property Management Plan the Successor Agency has listed the property for sale and has received a proposal from Azusa Capital LLC (“Developer”) for a commercial development pursuant to Government Code § 37420, the City is conducting a public hearing to consider sale of the City parcels. Staff is recommending that the City Council hold the public hearing, overrule any protests, and the City and Successor Agency enter into the Disposition and Development Agreement (DDA) with Developer, to allow the parties to sell the Property to Developer and for the City to ensure the development of the Property in accordance with the Agreement. RECOMMENDATION: Staff recommends that 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 protests were received regarding the sale of the Property, overrule the protest by a 4/5 majority vote; 3) Approve Resolutions No. 2017-C13 and 2017-C14 approving the Disposition and Development Agreement with Azusa Capital LLC for the sale and development of the Property; and APPROVED COUNCIL MEETING 3/6/2017 Disposition and Development Agreement with Azusa Capital LLC March 6, 2017 Page 2 4) Authorize the Mayor and the Executive Director of the Successor Agency to execute the Disposition and Development Agreement, in a form acceptable to the City Attorney, on behalf of the City and the Successor Agency. DISCUSSION: The City and Developer are interested in developing the Property as a commercial development. By entering into the DDA, the City, the Successor Agency and the Developer intend for the Successor Agency to sell the Agency’s portion of the Property to Developer expeditiously and in a manner aimed at maximizing value, and for the City to sell the City’s portion of the Property to Developer and ensure that Developer develops the Property in accordance with the DDA. The City shall enforce all rights and obligations associated with the development of the Successor Agency land, in addition to the City land, after the close of escrow to Developer. For the City’s portion of the Property, in accordance with California Government Code § 37420 et seq., the City must hold a public hearing to accept any written protests received from interested parties and, if no protests are 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. For the Successor Agency property, the parcels are listed as properties to be sold in the Department of Finance approved Long Range Property Management Plan. In furtherance of the dissolution, the Successor Agency has solicited proposals for the sale and now proposes to sell the parcels in accordance with the approved Long Range Property Management Plan. FISCAL IMPACT: The Agency shall sell the Agency’s portion of the Property to the Developer for the purchase price of $750,000. The City shall sell the City’s portion of the Property to the Developer for the purchase price of $135,000. Both agencies shall pay customary escrow fees and costs. Prepared by: Reviewed and Approved: Kurt E. Christiansen, FAICP Louie F. Lacasella Economic and Community Development Director Management Analyst Reviewed and Approved: Troy L. Butzlaff, ICMA-CM City Manager Attachments: 1. Disposition and Development Agreement 2. Resolution No. 2017-C13 of the Successor Agency Approving the Disposition and Development Agreement 3. Resolution No. 2017-C14 of the City Approving the Disposition and Development Agreement all costs and expenses associated with the processing and obtaining of the entitlements and shall bear all costs and expenses (except to the extent expressly set forth otherwise in this Agreement), associated with any and all terms, conditions , requirements, mitigation measures and other exactions imposed on, or required in connection with, the entitlements. 4.9 Prevailing Wages. 4.9.1 The Developer acknowledges that the City has not made any representation, express or implied, to the Developer or any person associated with the Developer regarding whether or not laborers employed relative to the construction of the Project must be paid the prevailing per diem wage rate for their labor classification, as determined by the State of California, pursuant to Labor Code Sections 1720, et ~· The Developer agrees with the City that the Developer shall assume the responsibility and be solely responsible for determining whether or not laborers employed relative to the construction of the Project must be paid the prevailing per diem wage rate for their labor classification. 4.9.2 The Developer, on behalf of itself: its successors, and assigns, waives and releases the City from any right of action that may be available to it pursuant to Labor Code Sections 1726 and 1781. The Developer acknowledges the protections of Civil Code Section 1542 relative to the waiver and release contained in this Section 4.9 , which reads as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT TH E TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR." BY INITIALING BELOW, THE DEVELOPER KNOWINGLY AND VOLUNTARILY WAIVES THE PROVISIONS OF SECTION 1542 SOLE LY IN CONNECTION WITH THE WAIVERS AND RELEASES OF THIS SECTION 4.9.2. j.~ Developer 's Initials 4.9.3 Additionally , in accordance with Section 7.8, the Developer shall indemnify, defend with counsel acceptable to the City and hold the City harmless against any claims pursuant to Labor Code Sections 1726 and 1781 arising from this Agreement or the construction or operation of the Project. 4.10 Certificate of Compl.etion. 4.10.1 Following the substantial completion of construction of the Project, and upon written request from the Developer for issuance of a Certificate of Completion for the Project, the City shall inspect the Project to determine whether or not the Project has been substantially completed in compliance with this Agreement. If the City determines that the Project is complete and in compliance with this Agreement, the City Manager shall furnish the Developer with a Certificate of Completion for the Project. If the City determines that the 45635.0000D\24603289.9 -30- Project is not in compliance with this Agreement the City Manager shall send written notice of each non-conformity to the Developer. Upon issuance of the fina l cettificate of occupancy for the development of the Project, based on the plans submitted by the Developer to the City, the City shall furnish the Developer with a Certificate of Completion for the Project. 4.10.2 Upon the Developer's substantial completion of the Project, the Developer shall request and be entitled to receive a Certificate of Completion, including the right of the City Manager to issue the Certificate of Completion, except that the Certificate of Completion, upon issuance shal l be eviden1~e of the City's conclusive determination of satisfactory substantial completion of the entirety of the Project pursuant to the terms of this Agreement. 4.10.3 The City shall not unreasonably withhold the issuance of a Certificate of Completion. A Certificate of Completion shall be evidence of the City's conclusive determination of satisfactory completion of the Project to which it pe1tains pursuant to the terms of this Agreement. After the recordation of a Certificate of Completion for the Project, any person then owning or thereafter purchasing, leasing or otherwise acquiring any interest in the Properties improved with the Project shall not (because of such ownership, purcba e lease or acqui ition) incur any ob.ligation or liability under this Agreement regarding construction or installation of the Project except that uch person shall be bound by any reservations, covenants, conditions, restrictions and other interests recorded against the Properties pursuant to this Agreement and the Grant Deeds. 4.10.4 If the City fails or refuses to issue a Certificate of Completion following written request from the Developer, the City shall, within fifteen (15) calendar days of the Developer's written request or within three (3) calendar days after the next regular meeting of the City Council, whichever date occurs later, provide the Developer with a written statement setting forth the reasons for the City's failure or refusal to issue a Certificate of Completion. The statement shall also contain the City's opinion of the action(s) the Developer must take to obtain a Certificate of Completion from the City. If the reason for the Developer's failure to complete the Project is confined to the immediate un availability of specific items or materials for construction or landscaping at a price reasonably acceptable to the Developer or other minor building "punch-list" items, the City may issue its Certificate of Completion upon the posting of a bond or irrevocable standby letter of credit by the Developer in a form reasonably acceptable to the City in an amount representing the fair value of the work on the Project remaining to be completed, as reasonably determined by the City. Jf the City fails to provide such written statement, w ithin the specified time period, the Developer shall be deemed conclusively and without further action of the City to have satisfied the requirements of this Agreement with respect to the Project, as if a Certificate of Completion had been issued by the City pursuant to this Agreement. 4.10.5 A Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any holder of a mortgage or any insurer of a mortgage secur in g money lo aned to finance the Project or any patts t hereof. A Certificate of Completion sha ll not be deemed to constitute a notice of completion under Section 3093 of the California Civil Code, nor shall it act to terminate the continuing covenants, restrictions or conditions or any other instruments recorded against the Properties pursuant to this 4563 5.00000\24603289.9 -31- Agreement. A Certificate of Completion is not evidence of the compliance of the Project with any City Requirements or any building code, conditions of approval, land use , zoning or other requirements of the City or any Governmental Agency with jurisdiction over the Properties, other than the City. 4.11 Parking Jo·int Use Agreement. Upon completion of the Project, City shall prepare and City and Developer shall enter into a Joint Use Agreement to provide unrestricted public access to a sufficient number of parking spaces if determined to be necessary by City. ARTICLE V DEVELOPER COVENANTS These post-closing covenants, conditions, and obligations are for the benefit of and enforceable by the City and not the Agency. 5.1 Covenant to Maintain Properties on Tax Rolls. The Developer for itself, its successors and assigns to all or any part or portion of the Properties and/or Project, covenants and agrees for the benefit of the City that: 5.1.1 The entire Properties shall remain on the County secured real property tax rolls for twenty years from the date of issuance of a certificate of occupancy for the Project. 5.1.2 The Developer shall pay all property tax bills with respect to the Properties and all improvements thereon on or before the last day for the timely payment of each property tax installment on each December 1 0 and April 10 during such time period and to timely pay all supplemental tax bills regarding the Properties issued by the County. The Developer further covenants and agrees to provide to the City, on or before July 31 of each year, commencing in the calendar year following the calendar year in which a Certificate of Completion is recorded and in each calendar year, thereafter, for the full term of this covenant: (i) a true and correct copy of all property tax assessment notices, property tax bills and property tax assessment correspondence by and between the Developer and the County regarding the Properties and all improvements thereon, with respect to the preceding fiscal year of the County, and (ii) cancelled checks issued by the Developer in payment of all property tax payments that are made to the County regarding the Properties and all improvements thereon (or other reasonably acceptable evidence of such payment), with respect to the preceding County fiscal year. 5.1.3 The covenants of this Section 0 shall run with the land of the Properties, shall be enforceable against the Developer and its successors and assigns. 5.2 No Conveyance to Tax Exempt Entity. The Developer for itself, its successors and assigns to all or any part or portion of the Properties and/or Project, covenants and agrees that: 5.2.1 The Developer shall not use or otherwise sell, transfer, convey, assign, lease, leaseback or hypothecate the Properties, the Project, or any portion of any of the foregoing to any entity or person, or for any use of the Properties, the Project, or any portion of any of the 45635 00000\24603289.9 -32- foregoing , that is partially or wholly exempt from the payment of real or personal property taxes or that would cause the exemption of the payment of all or any portion of real or personal property taxes otherwise assessable regarding the Properties, the Project, or any portion of any of the foregoing, without the prior written consent of the City, which may be withheld in the City's sole and absolute discretion for a period of 20 years from the date of issuance of the certificate of completion for the Project by the City .. 5.2.2 If the Properties, or any portion of the Properties, shall be conveyed, transferred or sold to any entity or person that is partially or wholly exempt from the payment of real or personal property taxes otherwise assessable against the Properties, or any portion thereof, without the prior written consent of the City, then, at the City's election and in addition to all other remedies available to the City under this Agreement or at law or in equity, the Developer shall pay to the City a fee in lieu of payment of such taxes each year in an amount determined by the City to be one percent (1 %) of the "full cash value" of the Properties, or portion thereof, as may be subject to such exemption from payment of real or personal property taxes. The City's determination of "full cash value" for in-lieu payment purposes under this Section 5.2.2 shall be established by the City each year, if necessary, by reference to the real or personal property tax valuation principles and practices generally applicable to a county property tax assessor under Section 1 of Article XIIIA of the California Constitution. The City's determination of"full cash value" and that an in-lieu payment is due shall be conclusive on such matters. If the City determines that an amount is payable as an in-lieu payment under this Section 5.2.2 in any tax year, then such amount shall be paid to the City for that tax year within forty-five (45) days following transmittal by the City to the Developer of an invoice for payment of the in-lieu amount. 5.2.3 The covenants of this Section 5.2 shall run with the land of the Properties, shall be enforceable against the Developer and its successors and assigns. 5.3 Maintenance Condition of the Properties. The Developer for itself, its successors and assigns to all or any part or portion of the Properties and/or Project, covenants and agrees that: 5.3.1 The areas of the Properties that are subject to public view (including all ex1stmg and future improvements, paving, walkways, landscaping, exterior signage and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. If there is an occurrence of an adverse condition on any area of the Properties that is subject to public view in contravention of the general maintenance standard described above (a "Maintenance Deficiency"), then the City shall notify the Developer in writing delivered by electronic mail of the Maintenance Deficiency. If the Developer fails to cure or commence and diligently pursue to cure the Maintenance Deficiency within thirty (30) days of its receipt of notice of the Maintenance Deficiency, the City shall have the right to enter the Properties and perform all acts necessary to cure the Maintenance Deficiency, or to take any other action at law or in equity that may then be available to the City to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the City for the abatement of a Maintenance Deficiency on the Properties pursuant to this Section 5.3.1 shall become a lien on the Properties, as applicable. If the amount of the lien is not paid within thirty (30) days after 45635 .0000D\24603289 .9 -33- written demand for payment from the City to the Developer, the City shall have the right to enforce the lien in the manner provided in Section 5.3 .3. 5.3.2 Graffiti, as this term is defined in Government Code Section 38772, that has been applied to any exterior surface of a structure or improvement on the Properties that is visible from any public right-of-way adjacent or contiguous to the Properties, shall be removed by the Developer by either painting over the evidence of such vandalism with a paint that has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water, as appropriate. If any such graffiti is not removed within ninety- six (96) hours following the time of the discovery of the graffiti, the City shall have the right to enter the Properties and remove the graffiti, without notice to the Developer. Any sum reasonably expended by the City for the removal of graffiti from the Properties pursuant to this Section 5.3.2, shall be a lien on the Properties. If the amount of the lien is not paid within thirty (30) days after written demand to the Developer from the City, the City shall have the right to enforce its lien in the manner provided in Section 5.3.3. 5.3.3 The Pa11ies further mutually understand and agree that the rights conferred upon the City under this Section 5.3 expressly include a grant by the Developer of a security interest in the Properties with the power to establish and enforce a lien or other encumbrance against the Properties or any portion thereof, in the manner provided under Civil Code Sections 2924, 2924b and 2924c, to secure the obligations of the Developer and it successors under Section 5.3.1 or Section 5.3.2, including the reasonable attorneys' fees and costs of the City associated with the abatement of a Maintenance Deficiency or removal of graffiti. For the purposes of the preceding sentence the words "reasonable attorneys' fees and costs of the City" mean and include the salaries, benefits and costs of the City Attorney and the lawyers employed in the Office ofthe City Attorney. 5.3.4 The provisions of this Section 5.3, shall be a covenant running with the land of the Properties, shall be enforceable against the Developer and its successors and assigns. Nothing in the foregoing provisions of this Section 5.3 shall be deemed to preclude the Developer from making any alteration, addition, or other change to any structure or improvement or landscaping on the Properties, provided that any such changes comply with applicable zoning and building regulations of the City. 5.4 Obligation to Refrain from Discrimination. The Developer for itself, its successors and assigns to all or any part or portion of the Properties and/or Project, covenants and agrees that: 5.4.1 There shall be no discrimination against or segregation of any person, or group of persons, on account of sex, marital status, race, color, religion, creed, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Properties nor shall the Developer, itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sub-tenants, sub-lessees or vendees of the Properties. The covenant of this Section 5.4 shall run with the land of the Properties and shall be enforceable against the Developer and its successors and assigns in perpetuity. 45635 .0000D\24603289.9 -34- 45635.09000\29533025.1 RESOLUTION NO. 2017-C13 A RESOLUTION OF THE SUCCESSOR AGENCY TO THE AZUSA REDEVELOPMENT AGENCY APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT WITH THE CITY OF AZUSA AND AZUSA CAPITAL, LLC FOR 714, 716, AND 720 N. DALTON AVENUE AND 303 E. FOOTHILL BLVD, AZUSA WHEREAS, pursuant to Health and Safety Code section 34173(d), the City of Azusa (“Successor Agency”) is the successor agency to the Azusa Redevelopment Agency (“Agency”); and WHEREAS, pursuant to Health and Safety Code section 34179(a), the Oversight Board is the Successor Agency’s oversight board; and WHEREAS, as part of the dissolution of the Agency, the Successor Agency developed a Long Range Property Management Plan (LRPMP) to identify the disposition and use of the real properties of the Agency; and WHEREAS, the LRPMP was approved by the Oversight Board of the Successor Agency and by the Department of Finance (“DOF”); and WHEREAS, as part of the LRPMP, the DOF approved the Successor Agency’s plan to sell 714, 716 and 720 N. Dalton Avenue in the City of Azusa, California (APN 8608-029-904, 906, 907, and 910) (“Agency Property”) expeditiously and in a manner aimed at maximizing value; and WHEREAS, the City is the owner of property adjacent to the Agency Property, located at 726 and 728 N. Dalton Avenue in the City of Azusa, California (APN 8608-029-908 and 909) (“City Property”) and, on February 1, 2016, the City entered into an exclusive right to negotiate an agreement with Azusa Capital, LLC, a California limited liability company (“Developer”) for the potential acquisition and development of the City Property; and WHEREAS, Developer desires to acquire the Agency Property and City Property, and to redevelop both properties as a commercial development and has negotiated a Disposition and Development Agreement (Foothill/Dalton) with the Successor Agency and City (“Agreement”); and WHEREAS, Developer’s proposed acquisition of the City Property and Agency Property, and subsequent construction and completion of the properties, is in the best interest of the community, the City, and the health, safety and welfare of the city’s taxpayers and residents, is in the best interests of the Successor Agency and the winding down of the Successor Agency’s business, and 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 City Property and in the surrounding community. 45635.09000\29533025.1 NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE AZUSA REDEVELOPMENT AGENCY 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. 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 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. Section 3. Findings. The Successor Agency Board finds and declares that the sale of the Agency property pursuant to the Disposition and Development Agreement is consistent with and furtherance of the dissolution of the Former Redevelopment Agency of the City of Azusa and the Department of Finance approved Long Range Property Management Plan. Section 4. Approval of Agreement. The Successor Agency hereby approves the Agreement, in substantially the form attached to this Resolution as Exhibit “A,” and authorizes the City Manager, acting as the Executive Director of the Successor Agency, to sign and enter into the Agreement and perform the obligations of the Successor Agency pursuant to the Agreement. Section 5. 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 Successor Agency declares that the Successor Agency would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. Section 6. Certification. The City Clerk of the City of Azusa, acting on behalf of the Successor Agency, shall certify to the adoption of this Resolution. Section 7. Effective Date. This Resolution shall become effective immediately upon its adoption. APPROVED AND ADOPTED THIS ______ day of ____, 2017. ________________________________ Mayor ATTEST: _______________________________ City Clerk 45635.09000\29533025.1 EXHIBIT A DISPOSITION AND DEVELOPMENT AGREEMENT (Foothill/Dalton) [Attached behind this cover page] 45635.09000\29537190.1 RESOLUTION NO. 2017-C14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT WITH THE CITY OF AZUSA AND AZUSA CAPITAL, LLC FOR THE SALE AND DEVELOPMENT OF 726 AND 728 N. DALTON AVENUE WHEREAS, the City of Azusa, California (“City”) is the owner of certain real property located at 726 and 728 N. Dalton Avenue in the City of Azusa, California (APN 8608-029-908 and 909) (“City Property”) and, on February 1, 2016, the City entered into an exclusive right to negotiate an agreement with Azusa Capital, LLC, a California limited liability company (“Developer”) for the potential acquisition and development of the City Property; and WHEREAS, the Successor Agency to the Azusa Redevelopment Agency is the owner of that certain real property located at 714, 716 and 720 N. Dalton Avenue in the City of Azusa, California (APN 8608-029-904, 906, 907, and 910) (“Agency Property”), which is adjacent to the City Property; and WHEREAS, Developer desires to acquire the Agency Property and City Property, and to redevelop both properties as a combined commercial development and has negotiated a Disposition and Development Agreement (Foothill/Dalton) with the Successor Agency and City (“Agreement”); and WHEREAS, on February 6, 2017, the City adopted Resolution No – declaring the City’s intention to sell the City Property and setting time for a public hearing to consider the sale of the property; and WHEREAS, Developer’s proposed acquisition of the City Property and Agency Property, and subsequent construction and completion of the properties, is in the public interest and convenience of the City and the community, and the health, safety and welfare of the City’s taxpayers and residents, is in the best interests of the Successor Agency and the winding down of the Successor Agency’s business, and 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 City 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 City Property to Developer and, based upon the Recitals and all other information and testimony provided, finds that the public interest and convenience require the sale of the City Property to Developer. 45635.09000\29537190.1 Section 3. Hearing. Pursuant to California Government Code section 37423, a duly noticed public hearing was held by the City on March 6, 2017. 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 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. Section 5. Approval of Agreement. The City hereby approves the Agreement, 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 Mayor to sign and enter into the Agreement and direct the City Manager to perform the obligations of the City pursuant to the Agreement. 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 ______ day of ____, 2017. ________________________________ Mayor ATTEST: ________________________________ City Clerk 45635.09000\29537190.1 EXHIBIT A DISPOSITION AND DEVELOPMENT AGREEMENT (Foothill/Dalton) [Attached behind this cover page]