HomeMy WebLinkAbout99-83 - Approving the waiver of condition for the City's benefit in the Development Agreement for the South Coast Metro CenterRESOLUTION NO. 99-83
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, APPROVING THE WAIVER OF A
CONDITION FOR THE CITY'S BENEFIT IN THE DEVELOPMENT
AGREEMENT FOR THE SOUTH COAST METRO CENTER
PROPERTY.
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
RESOLVE AS FOLLOWS:
WHEREAS, on April 19, 1999, the City Council adopted its Resolution
No. 99-25 approving Master Plan PA -98-77, a preliminary master plan for four
office buildings, two restaurants, a retail building, a hotel, and a health club, with a
final master plan for four office buildings consisting of approximately 475,000
square feet of building area, with a minor conditional use permit to allow a
deviation from the shared parking requirements in the City's PDC zone (collectively,
the "Master Plan Approval") for certain real property located in the City of Costa
Mesa and bounded generally on the south by the San Diego Freeway (1-405), on
the west by Avenue of the Arts, on the north by Anton Boulevard, and on the east
by undeveloped agricultural land (the "Property") within the South Coast Metro
Center development; and
WHEREAS, on May 3, 1999, the City Council adopted its Ordinance
No. 99-4 approving a Development Agreement (the "Development Agreement") by
and between the City and BRE/South Coast LLC and McCarthy Cook & Co.- South
Coast Metro, LLC (collectively "Developer"), for the development of the Property;
and
WHEREAS, subparagraph (ii) of the second paragraph of Section 2.1 of the
Development Agreement provides in pertinent part that Developer shall not be
entitled to the issuance of building permits for the last two (i.e., the third and
fourth) office buildings that are the subject of the Master Plan Approval until the
City and/or the California Department of Transportation ("Caltrans") has received
the full dedication of those property interests reasonably necessary to enable the
City and/or Caltrans to commence construction of the freeway on-ramp between
Anton Boulevard and 1-405 located generally along the easterly boundary of the
Property, and the freeway widening located generally along the southerly boundary
of the Property, the freeway off -ramp between 1-405 and Anton Boulevard located
generally along the westerly boundary of the Property (collectively, the 1-405
Project"); and
WHEREAS, pursuant to subparagraph (i) of the second paragraph of Section
2.1 of the Development Agreement and Condition No. 40 ("Code Requirements") of
the Master Plan Approval for the Property Developer previously has dedicated to
the City all of the Developer's interests in the Property required by the City and
Caltrans for the 1-405 Project; and
WHEREAS, on November 15, 1999, the City Council adopted its Ordinance
No. 99-16 approving a separate development agreement by and between the City
and Sakioka Farms and Roy K. Sakioka & Sons (collectively, "Sakioka"), the
reversionary fee owner of the South Coast Metro Center property and the adjacent
properties described in said development agreement as Sakioka Lots 1 and 2,
which separate development agreement provides for the dedication of all of the
remaining property interests required to satisfy the condition to Developer's right to
the issuance of building permits for the third and office buildings that are the
subject of the Master Plan Approval with the exception of the property interests
referred to in the next Recital herein below; and
WHEREAS, Developer has provided substantial assistance to the City in
attempting to secure a dedication of the following remaining unacquired property
interests needed by the City and Caltrans for the 1-405 Project: (i) the leasehold
dedication by the ground lessee of Parcels 1 and 2 of Lot Line Adjustment No.
LL90-04 (referred to in the Development Agreement as the "555 Parcels") of
additional right-of-way along the southerly side of said parcels; and (ii) the
leasehold and fee dedication by the owner of the property located immediately to
the west of the South Coast Metro Center property ("the Two Town Center
Property") of fee leasehold interests along the easterly side of the said property
within what currently is a private roadway; and
WHEREAS, Developer has entered into a purchase/sale agreement with
Experian Information Solutions, Inc. (the "Office Developer"), which proposes to
develop the entire 475,000 square feet of office development contained within the
Master Plan Approval (i.e., all four buildings) in a single phase; and
WHEREAS, the Office Developer, on behalf of Experian Information
Solutions, Inc., has indicated to the City that it is not prepared to close escrow
unless and until the City confirms in writing that the condition set forth in
subparagraph (ii) of the second paragraph of Section 2.1 of the Development
Agreement either has been satisfied or waived and that said condition no longer
prevents, restricts, or delays the issuance of building permits for any of the office
buildings to be constructed by Experian Information Solutions, Inc., on the portion
of the Property that it intends to acquire; and
WHEREAS, Developer has offered to the City that in consideration for the
City's waiver of the condition set forth in subparagraph (ii) of the second paragraph
of Section 2.1 of the Development Agreement, Developer is prepared and willing to
execute and record against the portion of the Property on which the Master Plan
Approval provides for development of a hotel a covenant in favor of the City that
Developer shall not be entitled to the issuance of a building permit for the hotel
until the City and/or Caltrans has received the full dedication of the property
interests necessary for the 1-405 Project; and
WHEREAS, Section 3.17 of the Development Agreement authorizes the City
to waive any provision of the Development Agreement for the City's Benefit so
long as said waiver is in writing and signed by a duly authorized representative of
the City; and
WHEREAS, the City Council has determined that the public interest is best
served at this time by waiving the condition set forth in subparagraph (ii) of the
second paragraph of Section 2.1 of the Development Agreement on the terms and
conditions set forth herein;
NOW, THEREFORE, BE IT RESOLVED by the Costa Mesa City Council as
follows:
1. Subject to Developer's compliance with the requirements of
Paragraph 3 of this Resolution, the City Council hereby approves a waiver of
the condition set forth in subparagraph (ii) of the second paragraph of
Section 2.1 of the Development Agreement. From and after the date of
Developer's compliance with the requirements of Paragraph 3 of this
Resolution or the date that the City and/or Caltrans has received the full
dedication of the property interests necessary for the 1-405 Project,
whichever first occurs, the dedication of any additional property interests
(including without limitation the property interests in the 555 Parcels and
Two Town Center Property) required for the 1-405 Project shall no longer
prevent, restrict, or delay the issuance of the building permits for any of the
office buildings to be constructed on the Property.
2. The City's waiver of the condition set forth in subparagraph (ii) of the
second paragraph of Section 2.1 of the Development Agreement shall
not become effective prior to the date that Developer delivers to City
an executed covenant in recordable form in favor of the City that
Developer shall not be entitled to the issuance of a building permit for
the hotel that is the subject of the Master Plan Approval until the City
and/or Caltrans has received the full dedication of the property
interests necessary for the 1-405 Project. The form of said covenant
shall be approved as to form and content by the City's Deputy City
Manager -Development Services or his designee.
PASSED AND ADOPTED this 20" day of December, 1999.
6 32 C, — I (—, :: � )
Mayor of th City of Costa Mesa
ATTEST:
Deputy City Jerk of the City of Costa Mesa
STATE OF CALIFORNIA
COUNTY OF ORANGE ► ss
CITY OF COSTA MESA
I, MARY T. ELLIOTT, Deputy City Clerk and ex -officio Clerk of the City Council
of the City of Costa Mesa, hereby certify that the above and foregoing
Resolution No. 99-83 was duly and regularly passed and adopted by the said City
Council at a regular meeting thereof held on the 201h day of December, 1999.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of
the City of Costa Mesa this 21 ' day of December, 1999.
Deputy City CIand ex -officio Clerk of
the City Counc of the City of Costa Mesa
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