HomeMy WebLinkAbout62 - OB-1 - Second Reading of Ordinance 16-08 - 9/20/2016CITY COUNCIL
AGENDA REPORT
MEETING DATE: SEPTEMBER 20, 2016 ITEM NUMBER: OB -1
SUBJECT: SECOND READING OF ORDINANCE 16-08: AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF COSTA MESA, CALIFORNIA ADOPTING DA -16-03 APPROVING A
FOURTH AMENDMENT TO THE SEGERSTROM HOME RANCH DEVELOPMENT
AGREEMENT DA -00-01
DATE: SEPTEMBER 14, 2016
FROM: PLANNING DIVISION / DEVELOPMENT SERVICES DEPARTMENT
PRESENTATION BY: MINOO ASHABI, PRINCIPAL PLANNER
FOR FURTHER INFORMATION CONTACT: MINOO ASHABI, AIA (714) 754-5610
minoo.ashabi@costamesaca.gov
RECOMMENDATION:
Give second reading to Ordinance No. 16-08 approving a fourth amendment to the
Segerestrom Home Ranch Development Agreement No. DA -00-01.
ANALYSIS
On August 6, 2016, the City Council gave first reading to Ordinance No. 16-08 by a 5-0 vote.
Councilmember Foley requested a status update on the obligations of the applicant with
respect to various provisions of the development agreement. The following is a summary of
the important dates related to the Development Agreement and the obligations to date:
Item
Status
Development Agreement
The original agreement was executed in 2002 and applicable
DA -00-01
to the entire Home Ranch site (93 -acres) that includes
residential (56 detached and 192 attached homes), Ikea,
former 14.5 -acre Emulex site currently owned by Steelwave,
43.57 -acre vacant site, Segerestrom office and historic
structures.
First Amendment
Recorded in April 25, 2007, was pertaining to clarification of
circulation improvements
Second Amendment
Modified the effective date of the agreement to January 3,
2002.
Third Amendment
Required the Historic Reserve Account and a 50 -year
covenant for preservation of the historic structures and
modified the fire station site to 40,000 SF with direct access
to South Coast Drive and available within a year of notification
from the City.
Term of the Development
Original Agreement:
Agreement
The Development agreement was executed on March
20, 2002 for 15 years.
Third Amendment:
• The agreement was extended for additional 20 years
(third amendment); therefore, the agreement will
expire on August 3, 2030.
Fire Station Site
Original Agreement:
• Required reservation of a 30,000 SF fire station site if
needed upon completion of a study by the City within
3 years.
Third Amendment:
• Required reservation of a 40,000 square foot parcel
facing South Coast Drive for future development of the
Fire Station. the land transfer should occur within a
year of notification by the City. This obligation is good
through the term of the agreement which will expire in
2030.
Fire Station Building
Original Agreement:
• If the City issues construction documents for a fire
station, the applicant is required to pay $500,000 for
the cost of building construction and site
improvements less a credit for all fire impact fees paid
to Home Ranch up to the date of fire station
construction. Fire Impact fees in the amount of
$235,789.62 were paid in 2003 and additional fees in
the amount of $264,210.38 (total amount $500,000)
was submitted on September 10, 2010. This obligation
has been satisfied.
IKEA
$5,000,000 over the course of five years. This obligation has
Sales tax Guarantee
been satisfied.
Huscroft House
Original Agreement:
• $200,000 received in 2002 for the relocation and
renovation of Huscroft House.
First Amendment:
• Allowed reallocation of Huscroft House
funds. Note: Council approved in 2005 reallocation
of these funds to the Community Foundation:
o $120,000 Estancia Adobe (current balance is
$61,147)
o $80,000 Segerstrom Homestead (current
balance is $80,000)
Historical Site
Original Agreement:
• Required an endowment of $250,000 within five years
and formation of a non-profit foundation for
preservation of historic structures. The historic
structures are part of a 1.5 -acre area of the overall
Home Ranch site.
Third Amendment:
• Required the applicant to preserve the structures
based on a 50 -year recorded covenant that will expire
in 2060. The applicant was also required to establish
a Historic Reserve Account and submit $260,000. The
account was established in 2010 and the current
balance is $274,970.00. The applicant has indicated
that several recent improvements (replacing the roof,
upgrading fire suppression system, replacement of
old wiring, and a few other items) are along the way
and they plan to submit a reimbursement invoice
later in the fall.
Historical Structures
The Segerstrom House and Segerstrom Barn are noted as
eligible sites for the National Register in the City's Historic
Survey.
Access to Public
Third Amendment:
• Required that the historic site shall be open to the
public by the Historic Site Owner at least one day a
year.
• The applicant has been holding annual open house
events that are advertised in the newspaper and on
the City's Website. The number of attendees are
reported to the City's Planning Division on annual
basis.
Citywide Traffic Impact
Original Agreement:
Fee
• Required payment of $3,887,910 (allowing up to
19,938 ADTs at $195 per trip end) for General Plan
improvements. The fees were submitted with issuance
of the first building permit.
• Required payment of mitigation fees in the amount of
$4,578,400. The fee was submitted with issuance of
the first building permit.
Until 2011, City Staff provided annual reviews of the Development Agreement to the
Planning Commission. On November 14, 2011, the Planning Commission allowed annual
reviews be completed by the Development Services Director until construction
commences on the Home Ranch site.
MINOO ASHABI, AIA GARY ARMSTRONG, AICP
Principal Planner Economic Development & Development
Services Director/ Deputy CEO
Attachments: 1. Ordinance 16-08 includinq Exhibit 1 (fourth amendment)
cc: Justin McCusker
C.J. Segerstrom & Sons
3315 Fairview Road
Costa Mesa, CA 92626