HomeMy WebLinkAboutE-12 Kinkaid Pit MOU with IrwindaleCONSENT ITEM
E-12
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
FROM: MARCO A. MARTINEZ, CITY ATTORNEY
KURT CHRISTIANSEN, DIRECTOR OF ECONOMIC AND COMMUNITY
DEVELOPMENT
DATE: FEBRUARY 6, 2017
SUBJECT: APPROVE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF AZUSA
AND THE CITY OF IRWINDALE CONCERNING THE DEVELOPMENT OF THE KINCAID
PIT PROPERTY LOCATED AT THE NORTHEAST CORNER OF IRWINDALE AVENUE
AND THE 210 FREEWAY (IRWINDALE PORTION - APN 8616-022-906; AZUSA PORTION
APN 8616-001-913)
SUMMARY:
The Kincaid Pit is a 14.9 acre unimproved mining quarry owned by the City of Irwindale and located within the
boundaries of both the City of Irwindale and the City of Azusa. According to economic development studies
prepared by the City of Irwindale, once the Kincaid Pit is filled, it can provide retail development opportunities
for Irwindale, Azusa and the I-210 corridor. As a result, it has been the subject of prior memoranda of
understanding between the two cities. However, development was never completed due to drainage issues
affecting the site.
Irwindale recently contacted the City to inform that some of the necessary drainage improvements for
development of the Kincaid Pit have been completed. In addition, Irwindale has been negotiating the sale of the
site to a developer that would agree to construct retail development on the site. Although additional drainage
improvements are needed and the site still needs to be filled-in, both cities agree that site planning process should
commence. This action approves a Memorandum of Understanding (MOU) between the City of Azusa and the
City of Irwindale, subject to any non-substantive changes made and authorizes the City Manager to execute the
MOU.
RECOMMENDATION:
Staff recommends that the City Council take the following actions:
1) Approve a Memorandum of Understanding (MOU) between the City of Azusa and the City of Irwindale,
subject to any non-substantive changes; and
2) Authorize the City Manager to execute the Memorandum of Understanding (MOU), in a form acceptable
to the City Attorney, on behalf of the City.
APPROVED
COUNCIL MEETING
2/6/2017
MOU between the City of Azusa and the City of Irwindale
February 6, 2017
Page 2
DISCUSSION:
Irwindale and Azusa each have jurisdiction over a portion of the 14.9-acre site. In January of 2015, as part of
Round 4 of Metro’s Transit Oriented Development Planning Grant Program, the Metro Board of Directors
awarded Irwindale a grant in the amount of $460,000 to develop and adopt the Irwindale Gold Line Station TOD
Specific Plan. As part of this endeavor the parties intend to create a separate planning area within the Irwindale
TOD Specific Plan that will govern the future development of Kincaid Pit site, including that portion of the site
located in Azusa. As a result, both cities must approve the TOD specific plan before any development occurs.
For this reason, the MOU is focused on delineating responsibilities of each jurisdiction in the development of the
specific plan that will govern the site. The MOU does not approve any specific development, nor does it allocate
sales tax share that is expected from the retail development. Those matters will be addressed separately in other
agreements. Instead, the purpose of this MOU is to reaffirm the parties’ commitment to the development of
Kincaid Pit through continuous cooperation to accomplish development of the site as a major regional retail
center
The MOU contains the following elements:
Requires both cities to cooperate in the development of a specific plan for the site (Section 1) and
authorizes Irwindale to prepare the appropriate environmental documents for compl iance with the
California Environmental Quality Act (CEQA);
Allows each city to process the ultimate entitlements that may be authorized by the specific plan (Section
2.01);
Requires the parties to negotiate in good faith a sales tax sharing arrangement (Section 2.03);
Requires that the design of the retail development incorporate “Spanish Mission” architecture (Section
4.02).
It should be noted that the MOU contains blank information concerning the timing for filling-in the Kincaid Pit.
This information is entirely dependent on Irwindale and will be filled in as part of the execution of the MOU.
FISCAL IMPACT:
There is no fiscal impact associated with the recommended action.
Prepared by: Reviewed and Approved:
Marco Martinez Kurt E. Christiansen, FAICP
City Attorney Economic and Community Development Director
Reviewed and Approved: Reviewed and Approved:
Louie F. Lacasella Troy L. Butzlaff, ICMA-CM
Management Analyst City Manager
Attachments:
1) Memorandum of Understanding (MOU)
2) Map of Kinkaid Pit
45635.01000\29538973.1 1
MEMORANDUM OF UNDERSTANDING
FOR DEVELOPMENT OF KINCAID PIT
This MEMORANDUM OF UNDERSTANDING (“Agreement”) is made this ___ day of
___________ 2017, by and among the CITY OF IRWINDALE (“Irwindale”), and the CITY OF
AZUSA (“Azusa”) Irwindale and Azusa are sometimes hereinafter referred to individually as
“party” or collectively as “parties.”
RECITALS
The parties enter into this Agreement on the basis of the following facts, understandings,
and intentions.
A. The Kincaid Pit (i) is unimproved real property located within the boundaries of
both Irwindale and Azusa, (ii) is bisected by the 210 Freeway and divided into the North Pit and
the South Pit, and (iii) is depicted on Exhibit “A” attached hereto and incorporated herein
(“Site”).
B. Irwindale and Azusa each have jurisdiction over permitting of any development
over that portion of the Site within their respective boundaries, and believe that the development
of the Site is best accomplished through a cooperative agreement among Irwindale, Azusa, and
Developer to assure a consistent and efficient approval and development process.
C. The parties anticipate that the filling operation required to rehabilitate the Site
from the condition left by the effects of mining require significant investment. The fill operation
is scheduled to take approximately [eighteen (18) months] after the full execution of this
Agreement to complete and significant funds will be required to place engineered fill at the Site.
D. The parties previously entered into that certain Memorandum of Understanding
for Development of Kincaid Pit dated July 23, 2003.
E. In January 2015, as part of Round 4 of Metro’s Transit Oriented Development
Planning Grant Program, the Metro Board of Directors awarded Irwindale a grant in the amount
of $460,000 to develop and adopt the Irwindale Gold Line Station TOD Specific Plan. The
performance period for this grant is 36 months from the date of agreement execution with Metro.
Metro executed its agreement with the City of Irwindale on June 9, 2016. As part of this
endeavor the parties intend to create a separate planning area within the TOD Specific Plan that
will govern the future development of Kincaid Pit Site.
F. The purpose of this MOU is to reaffirm the parties’ commitment to the
development of Kincaid Pit through continuous cooperation to accomplish development of the
Site as a major regional retail center.
AGREEMENT
NOW, THEREFORE, incorporating and in consideration of the mutual covenants
contained herein, parties mutually agree to the following:
45635.01000\29538973.1 2
SECTION 1. NATURE OF NEGOTIATIONS.
1.01 Good Faith. Irwindale and Azusa agree that, for the period set forth in Section
3.01 herein (“Negotiation Period”), they will negotiate diligently and in good faith to (1)
cooperate in the preparation of development of a separate planning area within the TOD Specific
Plan that will govern the development and future uses on the Site; (2) cooperate in having the
Planning Commission and City Council of each City consider approval of the planning area
within the TOD Specific Plan that will govern the Site; (3) prepare and enter into any agreement
necessary or desirable (“Development Instruments”) to allow for the development of the Site
(“Project”) consistent with the provisions of this Agreement, the TOD Specific Plan and the
developer selection process initiated by Irwindale. The development will be subject to this
Agreement, all rules, regulations, standards, and criteria set forth in the respective Cities’
General Plans, the proposed TOD Specific Plans and any applicable zoning regulations. The
Development Instruments will generally be in the form negotiated by Irwindale and Azusa with
other development entities, including the developer selected by Irwindale (Developer), and
subject to the terms Irwindale, Azusa, and a selected Developer agree upon.
1.02 Purpose of Agreement. It is expressly understood and agreed by the parties that
this is an Agreement to conduct contract negotiations only and does not convey any interest in
the Site whatsoever. It is further agreed and understood that this Project must go through a land
use entitlement process to be determined by each City for those portions of the TOD Specific Plan
that are applicable to the Site and will be subject to noticed public hearings. Nothing herein shall
imply any prejudgment concerning this Project nor does this Agreement imply any obligation on the
part of any party to enter into any agreement that may result from the negotiations contemplated
herein.
SECTION 2. DEVELOPMENT OF PROJECT.
2.01 Permitting Process. Irwindale and Azusa will process those Project entitlements
required for the portions of the Site located within their boundaries, respectively. To the extent
permitted by law, the parties will cooperate to process the separate land use entitlement
applications for the Project simultaneously pursuant to each jurisdiction’s Development Code
and any applicable state planning and zoning law requirements. Such cooperation may include,
but is not limited to, holding joint public hearings by Irwindale and Azusa to consider Project
entitlements. Irwindale will be principally responsible for processing the environmental reviews
necessary for the Project. As permitted under CEQA, Azusa will cooperate with Irwindale in the
preparation of any environmental document required for the Project and utilize such documents
for its consideration in adopting mitigation measures and issuing necessary entitlements for the
Project.
2.02 Schedule of Performance. The goal will be to (a) commence filling the North
Pit by _________, ____, 20__, (b) commence construction of the above-grade improvements
(e.g., buildings) by ______ ___, 20__, and (c) open the Project by _______ ___, 20__, with an
understanding that the opening of the Project may be phased. The Development Instruments
shall contain a more detailed Schedule of Performance.
2.03 Sales Tax Sharing Agreement. Irwindale and Azusa intend to share sales tax
revenues evenly, if any, produced from the Project, regardless of where the sales tax generating
45635.01000\29538973.1 3
sources are located on the Site. Such sales tax sales agreement shall be negotiated in good faith
by the parties.
SECTION 3. DURATION OF NEGOTIATIONS.
3.01 Period of Exclusive Negotiation. The period of negotiation shall be one (1) year
from the date this Agreement is signed by the parties (the “Term”).
3.02 Early Termination. If any of the parties determine that the Project is not
economically feasible, or if Irwindale or Azusa find progress with respect to the Schedule of
Performance set forth in Section 2.02 is unsatisfactory in its reasonable discretion, then such
party may terminate this Agreement by delivering written notice thereof to the other parties.
SECTION 4. SELECTED DEVELOPER’S RESPONSIBILITIES.
4.01 The Developer selected will prepare such studies, reports, and analysis, as shall be
necessary to permit Developer to determine the feasibility of the Project. Developer shall obtain
any additional permits from other agencies as necessary.
4.02 The design of the Project shall be “Spanish Mission” architecture consistent with
the design guidelines of both Irwindale and Azusa, as may be agreed by the parties in the
Development Instruments. It is agreed that Developer shall also obtain architectural review and
other approvals for the Project from both Irwindale and Azusa for the portions of the Project that
fall within the boundaries of the respective Cities. The Developer will be solely responsible for
obtaining all approvals and entitlements for the Project, arranging the financing for the Project,
and constructing all improvements upon the Site.
4.03 It is also agreed that development of the Site by Developer may necessitate
changes to existing circulation and access patters that lead to the Site, including access from
surrounding properties and streets. The parties agree to cooperate in the redesign of such access
and circulation patterns to accommodate improved access to the Site and Project.
SECTION 5. MISCELLANEOUS.
5.01 Indemnification. Each party shall defend and indemnify the other party against,
any and all claims, demands, liability, judgments, awards, fines, mechanics’ liens or other liens,
labor disputes, losses, damages, expenses, attorneys’ fees, and court costs related to this
Agreement and arising either directly or indirectly from any act, error, omission, or negligence of
Irwindale or Azusa or its respective agents, officers, or employees.
5.02 Governing Laws and Venue. This Agreement has been negotiated and executed
in the State of California and shall be governed by and construed under the laws of the State of
California. In the event of any legal action to enforce or interpret this Agreement, the sole and
exclusive venue shall be a court of competent jurisdiction located in Los Angeles County,
California.
45635.01000\29538973.1 4
5.03 Severability. If any term or portion of this Agreement is held to be invalid,
illegal, void or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions of this Agreement shall continue in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day first
above written.
[SIGNATURES ON NEXT PAGE.]
45635.01000\29538973.1 5
CITY OF IRWINDALE
By:
City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
CITY OF AZUSA
By:
City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
21 | P a g e
City of Irwindale & Irwindale Community Redevelopment Agency
E C O N O M I C S T R A T E G I C P L A N
Commercial-Retail Development
Retail development is Irwindale’s next strongest tier of market opportunity. Based on the existing retail
inventory in the Market Area and projected population growth, Irwindale’s capture potential from the
Market Area is focused on suburban and regional retail categories, including big box (e.g.,
warehouse/club stores, department stores, home furnishings), drug stores, and specialty food services.
TCG’s market analysis also identified multifamily rental housing as a second tier product type. However,
based on Irwindale’s long history of slow residential growth and deep community roots, rental housing
opportunities are extremely limited in the City. This Plan recognizes that, by limiting residential density in
the City, a key demand driver for retail is automatically limited and, therefore, a potential source of new
General Fund revenues is limited. The lack of internally generated growth in demand means the City will
have to capture a higher percentage of demand from the greater Central/East SGV Market Area.
The lack of a 24/7 community, night-time population, and traditional downtown core also extremely limits
the types of retail products Irwindale can capture. Neighborhood-serving retail, including sit-down
restaurants, must depend almost solely on Irwindale’s day-time population and employment centers.
Recent vacancies and high turnover of restaurant uses, however, as observed in the 25,730 square foot
retail strip center located at 15600 Arrow Highway (at 4th Street), indicate that the local day-time
population and traffic counts on major thoroughfares have not reached a critical mass to support certain
types of retail. Discussions between RSG and local business stakeholders also confirm these
challenges, and that the current volume of lunch-time business generally does not support the financial
viability of most sit-down restaurants. However, as job growth in Irwindale continues over the next
several years, the increase in day-time populations and demand for goods and services will support new
lunch-time dining choices for current and future employees.
TCG’s market analysis indicates that, during the next 10 to 20
years, Irwindale has a significant upside capture potential for
suburban/regional retail in the Market Area of up to 50,000 square
feet per year. Upon successful reclamation of former mining pits
located at key freeway locations along the I-605 and I-210
Freeways, there are significant opportunities for Irwindale to support
regional-serving big box “power centers” and smaller developments.
ICRA land assets at key retail locations include the 14.9-acre North
Kincaid Pit, located on the north side of the I-210 Freeway at
Irwindale Avenue, and the 14.1-acre triangular site located at the
westerly intersection of Arrow Highway and Live Oak Avenue
(includes the ICRA properties known as “Gore Point” and the 12-
acre “Triangle Parcel”) which, combined with the easterly adjacent
60-acre JH Pit, creates a 74-acre development site for a mix of
regional-serving retail, industrial/flex, and hospitality uses located
directly across the road from Toyota Speedway. Both sites,
however, have their own unique sets of development and
infrastructure challenges, including reclamation, drainage, and access. Where appropriate and justified,
the ICRA should program tax increment funds to assist in the remediation of impr operly filled and
compacted pits. The ICRA should also work with the owners of other privately-held mining pits to help
facilitate potential retail development on those sites. The nearest-term development opportunity is
expected to occur on Reliance Pit II, located on the other side of Irwindale Avenue from the North Kincaid
Pit. The pit is owned and currently being filled by Vulcan Materials. Reclamation is anticipated to be
completed between 2016 and 2019.
Housing
As described above, higher density multifamily housing opportunities are constrained by local
preferences. The ICRA and Irwindale Housing Authority have historically facilitated the creation of
affordable single-family, for-sale housing projects. Higher density housing in recent years has b een
N. Kinkaid Pit
JH Pit