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HomeMy WebLinkAboutD-2 Staff Report - Urgency Ordinance Fifth Amendment to Rosedale DAAPPROVED CITY COUNCIL SCHEDULED ITEM D-2 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: STEPHAN E. HUNT, CHIEF OF POLICE/ACTING CITY MANAGER FROM: KURT E. CHRISTIANSEN, FAICP ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR DATE: JULY 17, 2017 SUBJECT: AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, APPROVING AND AUTHORIZING EXECUTION OF A FIFTH AMENDMENT TO THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF AZUSA AND ROSEDALE LAND PARTNERS II SUMMARY: Rosedale Land Partners II has requested a Fifth 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 fifth term extension. The proposed action adopts Urgency Ordinance No. 2017-10 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. 2017-10 granting a twelve (12) month extension of the Monrovia Nursery Development Agreement. DISCUSSION: 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. Urgency Ordinance, Monrovia Nursery DA July 17, 2017 Page 2 A fifth 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: Stephan E. Hunt Chief of Police/Acting City Manager Reviewed and Approved Louie F. Lacasella Management Analyst Attachments: 1) Urgency Ordinance No. 2017-10 2) Fifth Amendment to the Development Agreement This page is part of your document - DO NOT DISCARD A 20170952080 Il�lllllllll�lllllllll�ll�lll�lllll�lll�lllll�llll�llllfll �1 Recorded/Filed in Official Records Recorder's Office, Los Angeles County, California 08/22/17 AT 02:08PM FEES; TAXES: OTHER: 1111111111111111111111111111111111111111111111111111111111111111111 LEADSHEET 111111111111111111111111111111111111111111111111111111111 201708222850031 00014133841 IIN9111111111HO�YI1 008537390 SEQ: 01 DAR - Mail (Intake) IIIWIII9111BIIIIII�IIIII�IIIIIIIIIIIMIINIInl1 THIS FORM IS NOT TO BE DUPLICATED E53454, PO 16 0.00 0.00 0.00 0.00 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:14133841 �illiliilcilli:i!!lliillli! !II ll!!I III!!I Batch Number:8537390 �llllilillili!!'II,!il!!! Ilill,llili!!I SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE TITLE URGENCY ORDINANCE NO. 2017-10 URGENCY ORDINANCE NO. 2017-10 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 Il, 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 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, 2017; 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 (AVSD) 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 seq. 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 Fifth Amendment to the Development Agreement attached here to as Exhibit "A" ("Fifth 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 Fifth Amendment is consistent with the objectives, policies, general land uses and programs specified in the General Plan and the Rosedale Specific Plan. B. The Fifth 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 Fifth Amendment will not adversely affect the orderly development of property or the preservation of property values. D. The Fifth 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 Fifth Amendment will not have a significant adverse effect on the environment. Thus, the adoption of this Urgency Ordinance and approval of the Fifth 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 Fifth 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 Fifth Amendment. SECTION 4. The City Manager is hereby authorized to execute the Fifth 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 Fifth Amendment. SECTION 5. The City Clerk is directed to record the Fifth Amendment with the Los Angeles County Recorder, no later than 10 days after the Fifth Amendment is fully executed. law. 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 PASSED, APPROVED, AND ADOPTED this 17th day of July, 2017. Lo-,O�- // /� J eph Romero Rocha Mayor ATTEST: �– Z—aze'.1 fr e Cornej o, Jr City Cie STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES )ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Urgency Ordinance No. 2017-10 was passed and adopted by the City Council of the City of Azusa at a regular meeting on the 17th day of July, 2017, by the following vote: AYES: COUNCIL MEMBERS: CARRILLO, GONZALES, MACIAS, ALVAREZ, ROCHA NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: h f L ce Cornejo r. City Cler APPROVED AS TO FORM: Best Bfst&Krieger LP City Attorney EXHIBIT "A" FIFTH 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) FIFTH AMENDMENT TO THE DEVELOPMENT AGREEMENT THIS FIFTH AMENDMENT TO THE DEVELOPMENT AGREEMENT (the "Fifth Amendment") is dated as of July 17, 2017, and is being entered into by and among the City of Azusa, a California 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 ll, 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 4563 5.01000\8357311.2 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, and the "Fourth Amendment to the Development" approved by Urgency Ordinance No. 2016- 05, the Term of the Development Agreement has been extended to August 27,2017. 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 July 17, 2017, the City Council held a duly noticed meeting on this Fifth Amendment. On July 17, 2017, the City Council adopted Urgency Ordinance No. 2017-10, approving this Fifth 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 Fifth Amendment shall become effective on the date on which all of the following are true: (i) this Fifth Amendment has been executed by Owner's duly authorized officers and officials and delivered to the City; (ii) this Fifth 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 Fifth 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 Fifth Amendment in the Official Records of Los Angeles County, California at any time following the effective date of this Fifth 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: "3.5. Term. The term ("Term") of this Agreement shall commence on the Effective Date and shall continue until August 27, 2018, unless terminated sooner pursuant to a specific provision of this Agreement. The Term of this Agreement shall 4563 5.01000\83 573 11.2 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 Fifth 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 Fifth Amendment, the City Clerk shall record this Fifth 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 Fifth Amendment and the Development Agreement, the terms and conditions of this Fifth Amendment shall control. [Signatures on following page] 4563 5.01000\8357311.2 IN WITNESS WHEREOF, the parties hereto have executed this Fifth Amendment as of the date and year first written above. Cit M -Y OWNER y of Azusa ROSEDALE LAND PARTNERS II, LLC a Delaware limited liability company ? By: CDG ROSEDALE IN\/FSThAFNT i i r a Delaware limited liability City Manager Administrative Member Date: '3 V -7 r r'-) Its: ATTEST: Date: RAW4I1114- T AFM City Clerk APPROVED AS TO FORM: Bett Best & Krieger L P City Attorney Date: 4563 5.01000\83 57311.2 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 bei he person(s) whose name(s) is/are subscribed to the within instrument and a�6owledged to me that he/she/they f executed the same in his/her/their authoriz d capacity(ies), and that by his/her/their signature(s) on the instrument the pers n(s), or the entity upon behalf of which the person(s) acted, executed the instrum nt. I certify under PENALTY O� PERJURY under the laws of the State of California that the foregoing paragraphis rue and correct. WITNESS my hand qdofficial seal. Signature of Notary Public N-5 4563 5.01000\83 57311.2 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } County of _ , ) On. --(' n.-- —�' ' t `� G ore me, Date Here Insert Name and Title of the 'Officer personally appeared 041L, V1 ) Kk --- Narne(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be th , Re (s) whose name(s) is/fare .subscribed to the within instrument and ackno dged t❑ me that elhelthey executed the same in ti$Yher/their authorized capacity(ies), and that byoiqher/theirslgnaturw on the instrument the person(s), or the entity upon behalf of which the persons) ac ed, executed the instrument. BEATRIZ G KLARDO Commission # 2113770 Notary Public - California z z f Los Angeles County a 1 My Comm. Expires Jun 1, 2019' Place Notary Seal Above I certify under PENALTY OF PERJURY under the laws of the State of WQrrnia that the foregoing paragraph is true and .eorrect. WITNESS r'qv hand and official seal. Signature of Notary Public OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Documen Title or Type of Document: _- ' (.1 f 2 f ,0ocument Dater Number of Pages: 1. _ Signer(s) Other Than Named Above: _ N�< Capacity(ies) Claimed by Signer(s) Signer's Name: ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: _ Signer's Name: ❑ Corporate Officer — Title(s): __..- ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: _ Signer Is Representing: ©2014 National Notary Association • www.NationalNotary.org • 1 -800 -US NOTARY (1-800-876-6827) Item #5907 NOTARY ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF ORANGE On 9C ) ss. before me, % notary public, personally appeared , who proved to me on the basis of satisfactory evidence to be thh person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/the Y executed the same in his/her/their authcrizeo,/capacity(ies), and that by his/her/their f signature(s) on the instrument the perso� N, or the entity upon behalf of which the person(s) acted, executed the instrume certify under PENALTY OF/VERJURY under the laws of the State of California that the foregoing paragraph is WITNESS my hand an¢ 45635.01000\8357311.2 and correct. official seal. Signature of Notary Public ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Orange On August 1, 2017 before me, C. Newell, Notary Public (insert name and title of the officer) personally appeared Daniel O'Bannon who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that t&sbefthey-executed the same inis�herltheir authorized capacity, and that byfiWhe#tft, signature on the instrument the person, or the entity upon behalf of which the person 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. C. NEWELL I' WITNESS my hand and official seal. Commission # 2096339 Notary Public - California z' r Orange County r My Comm. Expires Jan 9. 2019 Signature } } v��� (Seal)