HomeMy WebLinkAboutD-4 Staff Report - Urgency Ordinance Sixth Amendment to RosedaleAPPROVED
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SCHEDULED ITEM
D-4
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: KURT E. CHRISTIANSEN, FAICP
ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR
DATE: JULY 16, 2018
SUBJECT: AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA, APPROVING AND AUTHORIZING EXECUTION OF A SIXTH
AMENDMENT TO THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE
CITY OF AZUSA AND ROSEDALE LAND PARTNERS II
BACKGROUND:
Rosedale Land Partners II has requested a Sixth Amendment for the Monrovia Nursery Development
Agreement. The City and developer have been holding meetings regarding the granting of a 5 year
development agreement extension. With the pending legal action taken against the developer and the
City, Staff has been unable to complete the final negotiations and is requesting a sixth term extension.
The proposed action adopts Urgency Ordinance No. 2018-03 granting a twelve (12) month extension of
the Monrovia Nursery Development Agreement.
RECOMMENDATION:
Staff recommends the City Council take the following action:
1) Waive further reading, read by title only and adopt Urgency Ordinance No. 2018-03 granting a
twelve (12) month extension of the Monrovia Nursery Development Agreement.
ANALYSIS:
The Rosedale project was originally approved by the City Council on February 3, 2003, and approved
later by Azusa voters on May 4, 2004. A Development Agreement dated May 27, 2004, was approved
as part of the entitlements granted to Monrovia Nursery, which is an important part of the Rosedale
project in that it binds both the Developer and the City to certain commitments that are important to the
project. The City Council adopted the First Amendment to the Development Agreement on April 27,
2014, which granted a 9 month extension. The City Council adopted the Second Amendment to the
Development Agreement on January 5, 2015. The City Council adopted the Third Amendment to the
Development Agreement on November 2, 2015. The Fourth Amendment the Development Agreement
was adopted by the City Council on July 18, 2016 and the Fifth Amendment was adopted by the City
Urgency Ordinance, Monrovia Nursery DA
July 16, 2018
Page 2
Council on July 17, 2017
A sixth development agreement amendment is proposed to extend the current Monrovia Nursery
Development Agreement between the City of Azusa and Rosedale Land Partners II (Developer) by an
additional twelve (12) months. Staff has been negotiating changes to the Development Agreement and
an extension of time is needed to provide the City and Developer with more time. The proposed
extension does not amend any of the prior obligations of the parties and merely extends the term by an
additional twelve (12) months.
The proposed action would not modify the physical attributes or characteristics of the project as
previously analyzed in an Environmental Impact Report (EIR) certified by the City Council on February
4, 2003, and approved by the City (SCH 2002071046). Insofar as no changes are being made to the
previously approved project that would result in a new or substantially greater significant impact as
compared to those identified in the aforementioned EIR, no subsequent CEQA review is required, as per
State CEQA Guidelines section 15162.
FISCAL IMPACT:
The Development Agreement would no longer be enforceable and public improvements required by the
agreement might not be completed.
Prepared by:
Kurt E. Christiansen, FAICP
Economic and Community Development Director
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachments:
1) Urgency Ordinance No. 2018-03
2) Sixth Amendment to the Development Agreement
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RECORDING REQUESTED BY
WHEN RECORDED MAIL TO
Jeffrey Lawrence Cornejo, Jr.
City Clerk
City of Azusa
213 E. Foothill Blvd.
Azusa, CA 91702
Document Number:15593023
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TITLE
URGENCY ORDINANCE NO. 2018-03
URGENCY ORDINANCE NO. 2018-03
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF AZUSA, CALIFORNIA, APPROVING AND AUTHORIZING
EXECUTION OF AN AMENDMENT TO THE DEVELOPMENT
AGREEMENT BY AND BETWEEN THE CITY OF AZUSA AND
ROSEDALE LAND PARTNERS II
WHEREAS, the City of Azusa ("City") and Monrovia Nursery Company entered into
that certain Development Agreement dated as of May 27, 2004 ("Development Agreement");
and
WHEREAS, the City of Azusa ("City") and Rosedale Land Partners II, LLC entered into
the First Amendment to the Development Agreement dated as of April 7, 2014, a Second
Amendment to extend the term to November 27, 2015, a Third Amendment to extend the term to
August 27, 2016, and a Fourth Amendment to extend the term to August 27, 2017; and a Fifth
Amendment to extend the term to August 27, 2019 and
WHEREAS, the Development Agreement provides for the development of a master
planned community project consisting of 1,250 residential units, commercial space and various
public and infrastructure improvements; and
WHEREAS, on August 27, 2004, Monrovia Nursery Company assigned all of its rights,
obligations, title and interest under the Development Agreement to Azusa Land Partners, LLC, a
Delaware limited liability company, in accordance with Section 3.6 of the Development
Agreement; and
WHEREAS, Azusa Land Partners, LLC surrendered all of its rights, obligations, title
and interest under the Development Agreement due to foreclosure; and
WHEREAS, on October 10, 2010, Rosedale Land Partners II, LLC, a Delaware limited
liability company, obtained all rights, obligations, title and interest of the Development
Agreement by acquiring the subject property pursuant to a Trustee's Deed dated October 1,
2010, pursuant to Section 3.6 of the Development Agreement; and
WHEREAS, the Development Agreement is set to expire on or before August 27, 2018;
and
WHEREAS, Owner has requested that the term of the Development Agreement be
extended; and
WHEREAS, City and Owner are currently negotiating a long-term extension of the
Development Agreement as well as substantive amendments to adjust the rights and
responsibilities of the City and Owner; and
WHEREAS, the Development Agreement is also the subject of a lawsuit filed by the
Azusa Unified School District relating to the construction of a K-8 school referenced in
documents relating to the Development Agreement; and
WHEREAS, the City desires to amend the Development Agreement to extend the term
by twelve (12) months in order to allow sufficient time to conclude negotiations and bring those
negotiated amendments to the City Council for approval, as it will be in the best interest of the
City and the public interest to do so; and
WHEREAS, both Owner and City wish to extend the terms of the Development
Agreement for an additional twelve (12) months to provide the additional time necessary to
negotiate changes to the Development Agreement, resolve the pending lawsuit filed by the Azusa
Unified School District (AUSD) over the references to a K-8 school and to complete the project;
and
WHEREAS, in order to ensure the development of the Rosedale Specific Plan takes
place and the Development Agreement is implemented, this Urgency Ordinance is adopted to
extend the Development Agreement immediately so that it does not expire and the City can
continue to work with the Owner and AUSD in the implementation of this Development
Agreement; and
WHEREAS, the extension of the Development Agreement is for the immediate
preservation of the public peace, health, and safety because the Rosedale Specific Plan and
Development Agreement are considered critical projects for the City and a lapse in the
Development Agreement would have significant detrimental impacts which cannot be easily
remedied by other methods; and
WHEREAS, this Urgency Ordinance is adopted pursuant to California Government
Code Section 36937 and shall take effect immediately upon adoption by a four-fifths vote of the
City Council; and
WHEREAS, the amendment to the Development Agreement is consistent with the City
of Azusa General Plan and the Rosedale Specific Plan and contains all necessary elements
required by Government Code section 65864 et seg. and Section Division 14 of the City of
Azusa Municipal Code as no substantive changes are proposed by the amendment; and
WHEREAS, the City Council of the City of Azusa has reviewed and studied the
amendment to the Development Agreement and found it to comply with the California
Environmental Quality Act ("CEQA") as more fully described below.
THE CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY ORDAIN AS
FOLLOWS:
SECTION 1. The City Council hereby adopts the recitals in this Urgency Ordinance as
Urgency Findings for its adoption. Based on the entire record before the City Council of the City
of Azusa ("Council") and all written and oral evidence presented to the Council, the Council
finds the Sixth Amendment to the Development Agreement attached here to as Exhibit "A"
("Sixth Amendment") is consistent with the General Plan of the City of Azusa ("General Plan")
and the Rosedale Specific Plan and systematically implements the goals and objectives of the
General Plan and Rosedale Specific Plan.
A. The Sixth Amendment is consistent with the objectives, policies, general
land uses and programs specified in the General Plan and the Rosedale Specific Plan.
B. The Sixth Amendment will not be detrimental to the health safety and
general welfare of persons residing in the immediate area nor be detrimental or injurious to the
general welfare of the residents of the City as a whole.
C. The Sixth Amendment will not adversely affect the orderly development
of property or the preservation of property values.
D. The Sixth Amendment is consistent with the provisions of Government
Code sections 65864 through 65869.5 and Division 14 of the Azusa Municipal Code.
SECTION 2. Based on the entire record before the Council and all written and oral
evidence presented to the Council, the Council hereby finds and determines, that it can be seen
with certainty that adoption of this Urgency Ordinance and approval of the Sixth Amendment
will not have a significant adverse effect on the environment. Thus, the adoption of this Urgency
Ordinance and approval of the Sixth Amendment is exempt from the requirements of the
California Environmental Quality Act ("CEQA") pursuant to Sections 15061(b)(3) of the CEQA
Guidelines. Staff is directed to file a Notice of Exemption with the Los Angeles County
Recorder's Office within five (5) working days of adoption of this Urgency Ordinance.
SECTION 3. The Council hereby approves the Sixth Amendment in substantially the
form presented to the Council, together with such additions favoring the City and non -
substantive revisions as may be approved by both the City Manager and the City Attorney during
execution of the Sixth Amendment.
SECTION 4. The City Manager is hereby authorized to execute the Sixth Amendment
on behalf of the City and City staff is authorized to take any action and execute any and all
necessary documents to implement the Sixth Amendment.
SECTION 5. The City Clerk is directed to record the Sixth Amendment with the Los
Angeles County Recorder, no later than 10 days after the Sixth Amendment is fully executed.
SECTION 6. This Ordinance shall be in full force immediately upon its passage.
SECTION 7. A summary of this Ordinance shall be published in the manner required by
law.
PASSED, APPROVED and ADOPTED this 16'h day of July, 2017.
A ?--z'ose Romero Rocha
Mayor
ATTEST:
Je 4'rk'
ity
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Urgency Ordinance No. 2018-02 was passed
and adopted by the City Council of the City of Azusa at a regular meeting oii the 16"' day of July,
2018, by the following vote:
AYES: COUNCILMEMBERS: GONZALES, CARRILLO, ALVAREZ, ROCHA
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: MACIAS
Je 4C�W
aw. Cornejo, Jr. /
City Clerk
APPROVED AS TO FORM:
ter.
k
City Aomey
Best Bit & Krieger LL
EXHIBIT "A"
SIXTH AMENDMENT TO THE DEVELOPMENT AGREEMENT
[Attached behind this page]
RECORDED AT THE REQUEST OF
AND WHEN RECORDED RETURN TO:
City of Azusa
213 East Foothill Boulevard
Azusa, California 91702
Attention: City Manager
Exempt from filing fees — Gov't Code §6103
(Space above for Recorder's use only)
SIXTH AMENDMENT TO THE DEVELOPMENT AGREEMENT
THIS SIXTH AMENDMENT TO THE DEVELOPMENT AGREEMENT (the "Sixth
W Amendment") is dated as of 1 � , 2018, and is being entered into by and
among the City of Azusa, a Califon is municipal corporation ("City"), and the City of
Azusa Light and Water Department ("ALW") (jointly referred to as the "City") and
Rosedale Land Partners II, LLC, a Delaware limited liability company ("Owner"), with
reference to the following facts:
A. City and Monrovia Nursery Company, a California corporation, entered
into that certain Development Agreement between City and Owner's predecessor in
interest dated as of May 27, 2004, and recorded on July 29, 2004, in the Official
Records of Los Angeles County as Document No. 04-1952514, ("Development
Agreement"), covering that certain property more particularly described in the
Development Agreement.
B. The Development Agreement provides for the development of a master
planned community project consisting of 1,250 residential units, commercial space and
various public and infrastructure improvements.
C. On August 27, 2004, Monrovia Nursery Company assigned all of its
rights, obligations, title and interest under the Development Agreement to Azusa Land
Partners; LLC, a Delaware limited liability company, in accordance with Section. 3.6 of
the Development Agreement; and
D. Azusa Land Partners, LLC surrendered all of its rights, obligations, title
and interest under the Development Agreement due to foreclosure; and
E. On October 10, 2010, Rosedale Land Partners Il, LLC, a Delaware
limited liability company, obtained all rights, obligations, title and interest of the
Development Agreement by acquiring the subject property pursuant to a Trustee's
Deed dated October 1, 2010, pursuant to Section 3.6 of the Development Agreement;
and
45635 01000\83573112
F. Pursuant to the "First Amendment to the Development Agreement"
approved by Ordinance No. 14-01, the "Second Amendment to the Development
Agreement" approved by Ordinance No. 14-06, the "Third Amendment to the
Development Agreement" approved by Urgency Ordinance No. 2015-013, the "Fourth
Amendment to the Development Agreement" approved by Urgency Ordinance No.
2016-05, and the "Fifth Amendment to the Development Agreement" approved by
Urgency Ordinance No. 2017-10, the Term of the Development Agreement has been
extended to August 27, 2018.
G. Owner has requested that the term of the Development Agreement be
extended pursuant to Section 3.5 of the Development Agreement. City and Owner are
currently negotiating a long-term extension of the Development Agreement as well as
substantive amendments to adjust the rights and responsibilities of the parties.
H. The parties desire to amend the Development Agreement to extend the
Term by six (6) months in order to allow sufficient time to conclude negotiations and
bring those negotiated amendments to the City Council for approval. Nothing set forth
herein shall amend or affect the additional five year extension of the Development
Agreement pursuant to the last paragraph of Section 3.5.
I. All capitalized but undefined terms used herein shall have the same
meaning as set forth in the Development Agreement.
J. On- 4u , 2018, the City Council held a duly noticed meeting
on this Sixth Amend ent. On I c, ' i, ! tr , 2018, the City Council adopted
Urgency Ordinance No. 2018-_(2� appro ing this Sixth Amendment and affirming the
findings required under Government Code Section 65867.5 for approval of this Fifth
Amendment.
NOW, THEREFORE, in consideration of the mutual terms and conditions
contained herein, the parties agree to amend the Development Agreement as follows:
1. Effective Date. This Sixth Amendment shall become effective on the
date on which all of the following are true: (i) this Sixth Amendment has been
executed by Owner's duly authorized officers and officials and delivered to the City; (ii)
this Sixth Amendment has been approved by urgency ordinance of the City Council of
the City of Azusa and such urgency ordinance has become effective; and (iii) this Sixth
Amendment has been duly executed by the Mayor and delivered to Owner.
Notwithstanding the above, the "Effective Date", for purposes of the Development
Agreement, shall remain as defined in Section 3.1.9 of the Development Agreement.
2. Recordation. The City and Owner hereby consent to the recordation of
this Sixth Amendment in the Official Records of Los Angeles County, California at any
time following the effective date of this Sixth Amendment,
3. Amendment to Section 3.5. The first and second paragraphs of Section
3.5 of the Development Agreement are hereby amended to read as follows:
45635.0 1 000\83573 11.2
"3.5. Term. The term ("Term") of this Agreement shall commence on the
Effective Date and shall continue until August 27, 2019, unless terminated sooner
pursuant to a specific provision of this Agreement. The Term of this Agreement shall
be extended for one (1) additional five (5) year period following the expiration of the
Term upon the occurrence of all of the following:
(i) The Owner shall give written notice to the City no later than one hundred
twenty (120) days before the expiration of the Term that the Owner desires to extend
this Agreement for the additional five (5) -year period;..."
4. This Sixth Amendment may be executed in any number of identical
counterparts, each of which shall be deemed to be an original, and all of which
together shall be deemed to be one and the same instrument when each party has
signed one such counterpart.
5. Not later than ten (10) days following the Effective Date of this
SixthAmendment, the City Clerk shall record this Sixth Amendment with the Los
Angeles County Recorder's Office.
6. Other than as set forth herein, all of the terms and conditions of the
Development Agreement shall remain in full force and effect. To the extent of any
inconsistency between the terms and conditions of this Sixth Amendment and the
Development Agreement, the terms and conditions of this Sixth Amendment shall
control.
[Signatures on following page]
45635.0 1000\8357311.2
IN WITNESS WHEREOF, the parties hereto have executed this Sixth
Amendment as of the date and year first written above.
CITY
City of Azusa
EA
City Manager
Date: -2" 36 -L
ATTEST:
nce
Clerk
APPROVED AS TO FORM:
By:
Besq Best & KrIer LLP
City Attorney
Date:
45635.01000\8357311.2
OWNER
ROSEDALE LAND PARTNERS II, LLC
a Delaware limited liability company
By: CDG ROSEDALE INVESTMENT, LLC,
a Delaware limited liability company its
Administrative Member
By:
Its:
Date:
NOTARY ACKNOWLEDGMENT
STATE OF CALIFORNIA )
) ss.
COUNTY OF LOS ANGELES )
On 20_ before me, , notary
public, personally appeared , who proved
to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity.{ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
WITNESS my hand and officia[ seal.
45635.0 1000\8357311.2
signature of Notary Public
N-5
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document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California }
County of
On before me, _ �v�Yi2 lv' �� rU�i t✓
j Date Here Insert Name and Title of the dfficer
personally appeared
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
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or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph
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ANNEi71`JARI<Z WITNESS my hand and official seal.
o COMM. s 21$8222
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State of California )
)ss -
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ss.County of Orange )
On July 17 2018 before me, Jayne M. Crawford, Notary Public
personally appeared Daniel O'Bannon
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
JAYNE M. CRAWFORD
NotaryPublic— California Z
Orange County >
z Commission # 2226367
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Signature GL�d r�'G'+ (Seal)