HomeMy Public PortalAbout11) 8A Second Reading and Adoption of the Olson Company ProjectDATE:
TO:
FROM:
SUBJECT:
AGENDA
ITEM 8.A.
COMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM
January 21, 2014
The Honorable City Council
Tracey Hause, Acting City Manager/Administrat~ Services DirecQ,
By: Geoffrey Starns, AICP, Planning Manager~
Adam Gulick, Associate Planner
Peter Sun, Management Analyst
SECOND READING AND ADOPTION OF THE OLSON COMPANY
PROJECT (FILE NO. 130000091), WHICH INCLUDES CREATING AN
INFILL COMMUNITY (IC) OVERLAY ZONING DISTRICT; A ZONE
CHANGE FROM M-2 TO R-2-IC; AND A DEVELOPMENT AGREEMENT
FOR THE PROJECT, LOCATED AT 9250 LOWER AZUSA ROAD
(APNS: 8592-005-003 AND 8592-005-004)
RECOMMENDATION:
The City Council is requested to waive further reading and adopt:
a) Ordinance No. 14-981 (Attachment "A"): creating the lnfill Community (IC) Overlay
Zoning District;
b) Ordinance 14-988 (Attachment "8"): changing the zoning of 9250 Lower Azusa
Road (APN's: 8592-005-003 and 8592-005-004) from the Heavy Manufacturing
(M-2) Zoning District to the R-2 Zoning District and the lnfill Community (IC)
Overlay Zoning District; and
c) Ordinance 14-989 (Attachment "C"): approving the Development Agreement
(Attachment "D") between the City and the project applicant, Olson Land
Opportunities, LLC.
BACKGROUND:
On January 7, 2014, the City Council conducted a public hearing (Attachment "E")
approving various resolutions and introduced Ordinance No. 14-981, Ordinance No. 14-
988, and Ordinance No. 14-989, approving the above-mentioned residential
development.
City Council
January 21, 2014
Page 2 of 3
ANALYSIS:
At the public hearing on January 7, 2014, six people spoke in opposition to the project.
The concerns were related. to potential increase of traffic at project location, safety for
future residents and changing the property from an industrial use to a residential use.
These concerns were addressed by staff and the project developer. After a lengthy
discussion, the City Council made one revision to the Development Agreement. In
Section 8.4 of the Development Agreement, the City Council was concerned that the
public art requirement only provided a maximum value of the art installed. In order to
address this concern, the language was changed to read as follows: The public art
installed by the Developer shall be approved by the City. The total cost for the public art
installed by the Developer shall be approximately, but is not required to be in excess of,
fifty thousand dollars ($50,000).
In addition, it was discovered by staff after the hearing that there was no timeframe
requirement for the public art to be installed. Staff consulted with the applicant, and the
applicant agreed to add a sentence in Section 8.4 that states "The project's public art
shall be installed prior to the issuance of a Certificate of Occupancy for the project's 60th
dwelling unit."
In order for the developer to move forward with project, it is necessary for the City Council
to adopt the three Ordinances associated with the project. Ordinance No. 14-981
establishes an lnfill Community Overlay District, Ordinance No. 14-988 changes the
zoning designation of the project site from Heavy Manufacturing M-2 to the R-2 Zoning
District and the lnfill Community Overlay District, and Ordinance No. 14-989 approves a
Development Agreement between the City and the applicant. It would be appropriate to
have the second reading and adopt the ordinances at this time.
Approval of these ordinances will allow for construction of 74 attached and detached
homes on the project site and provide $549,000 to the City for affordable housing, public
art, parks, and sewer reconstruction projects.
CONCLUSION:
The City Council is requested to adopt Ordinance No. 14-981: creating the lnfill
Community (IC) Overlay Zoning District; adopt Ordinance No. 14-988: changing the
zoning of 9250 Lower Azusa Road (APN's: 8592-005-003 and 8592-005-004) from the
Heavy Manufacturing (M-2) Zoning District to the R-2 Zoning District and the lnfill
Community (IC) Overlay Zoning District; and adopt Ordinance No. 14-989: approving
the Development Agreement (Attachment "C") between the City and the project
applicant, Olson Land Opportunities, LLC.
City Council
January 21, 2014
Page 3 of 3
FISCAL IMPACT:
As part of the approval of the Development Agreement, the applicant will contribute to
the City $157,000 for affordable housing, $168,000 for park development, $150,000 for
public art and $74,000 for sewer reconstruction totaling $549,000 in the form of impact
fees. These fees must be used for their stated purposes within five years of the
payment (estimated to be 2019). To properly account for these fees, staff, as part of the
mid-year budget adjustments, will ask the City Council to authorize creation of
affordable housing and public art funds. Sewer reconstruction and parks development
funds already exist.
ATTACHMENTS:
A. Ordinance No. 14-981
B. Ordinance No. 14-988
C. Ordinance No. 14-989
D. Development Agreement
E. January 7, 2014 City Council Staff Report
ATTACHMENT A
ORDINANCE NO. 14-981
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TEMPLE CITY AMENDING THE TEMPLE CITY MUNICIPAL CODE
RENAMING ARTICLE R, "RESIDENTIAL PLAN DEVELOPMENT,
RPD" TO "RESIDENTIAL OVERLAY DISTRICTS" AND TO CREATE
AN INFILL COMMUNITY (IC) OVERLAY ZONING DISTRICT
THE CITY COUNCIL OF THE CITY OF TEMPLE CITY HEREBY ORDAINS
AS FOLLOWS:
SECTION 1. The City council has considered all of the evidence submitted into the
administrative record which includes but is not limited to:
1. Reports and presentations of project related data and analysis prepared by
the Community Development Department for the December 10, 2013
Planning Commission Meeting; and the January 7, 2014 and January 21,
2014 City Council Meetings;
2. The Mitigated Negative Declaration, Initial Study, Mitigation Monitoring and
Reporting Program, and all other supporting environmental documentation
and technical studies;
3. The Temple City Municipal Code, General Plan, and all other applicable
regulations and codes;
4. Public comments, both written and oral, received or submitted prior to the
public hearing, supporting or opposing the applicant's request;
5. Testimony and comments submitted by the applicant and representatives in
both written and oral form at or prior to the public hearing; and
6. All other related documents received or submitted prior to the public hearing.
SECTION 2. The City Council reviewed and considered the Mitigated Negative
Declaration and Mitigation Monitoring and Reporting Program (MMRP) and in view
of all of the evidence concludes that based upon the facts and information
contained in the proposed Mitigated Negative Declaration and MMRP, together with
all written and oral reports included for the environmental assessment for the
application, the City Council finds that with the proposed mitigation measures, there
is no substantial evidence that the project will have a significant effect upon the
environment and adopts the Mitigated Negative Declaration and MMRP based upon
the findings as follows:
1. The Mitigated Negative Declaration has been prepared in compliance with
the California Environmental Quality Act and the State CEQA guidelines
promulgated thereunder; that said Mitigated Negative Declaration and the
ORDINANCE 14-981
Zoning Code Amendment to create lnfill Community Overlay District
Page 2
Initial Study prepared therefore reflect the independent judgment of the City
Council; and, further, this Council has reviewed and considered the
information contained in said Mitigated Negative Declaration and MMRP with
regard to the application.
2. Based upon the design of proposed project and the mitigation measures
incorporated, no significant adverse environmental effects will occur.
3. Pursuant to the provisions of Section 753.5(c) of Title 14 of the California
Code of Regulations, the City Council finds that in considering the record as
a whole, including the Initial Study, Mitigated Negative Declaration, and
MMRP for the project, there is no evidence that the proposed project will
have potential for an adverse impact upon wildlife resources or the habitat
upon which wildlife depends. Furthermore, based upon substantial evidence
contained in the Mitigated Negative Declaration, MMRP, the staff reports and
exhibits, and the information provided to the Planning Commission and the
City Council during the public hearing, the City Council hereby rebuts the
presumption of adverse effect as set forth in Section 753.5(c-1-d) of Title 14
of the California Code of Regulations.
SECTION 3. "Article 9.2 lnfill Community (IC) Overlay District" is hereby
added to Title 9. Chapter 1.
SECTION 4. Section 9449.1 through 9449.4 is hereby added to Title 9.
Chapter 1. Article R.2 and shall read as follows:
9449.1: Purpose:
The lnfill Community Overlay District is introduced to establish standards of
development for medium and high density residential development at sites that are
underutilized, vacant, or unimproved with essential physical infrastructure and are
not part of an existing neighborhood. The site may be surrounded by non-
residential uses, physical barriers or impediments that obstruct access, public
services, or utility services. The lnfill Community Overlay District is established to
ensure that the residential development proposed on these infill sites are
compatible with existing surrounding land uses, have sufficient access to public
streets, infrastructure, and services, and that the residential development has taken
into account of all environmental, physical, and all site constraints.
9449.2: Applicability:
A. lnfill sites must meet the following conditions in order to be rezoned with the
lnfill Community Overlay District designation:
1. Property must be within the R-2 or R-3 zoning districts;
ORDINANCE 14-981
Zoning Code Amendment to create lnfill Community Overlay District
Page 3
2. The property must not be a part of an existing established
neighborhood;
3. Project site shall have no less than 5 acres of contiguous developable
area.
4. Project site shall have physical or environmental constraints such as
shape, topography, site access, noise, etc. which prevent the property
from meeting the normal requirements of the R-2 or R-3 zoning
districts.
9449.3: Reclassification Procedure and Development Review:
A. Reclassification of the lnfill Community Overlay District shall require the
application of a General Plan Amendment and Zone Change.
B. All development within the lnfill Community Overlay District shall be subject
to site plan review and applicable discretionary permits, application submittal
requirements, and approval procedures through the Community
Development Department, Planning Commission and/or City Council.
9449.4: Standards of Development:
Multi-family residential development shall comply with the density and provisions of
the underlying zoning district except as follows:
A. Minimum Lot Size: 1 ,400 square feet
B. Attached Units: No more than thirty-three percent (33%) of the total units
shall be comprised of attached units.
C. Lot Coverage: Maximum lot coverage is seventy percent (70%) of the
individual lot area.
D. Floor Area Ratio shall be calculated on the net developable lot area:
1. R-2 Zone: 0.60
2. R-3 Zone: 0.70
E. Second Story Floor Area: The second story floor area of any detached
dwelling unit shall not exceed ninety-five percent (95%) of the first story floor
area, including attached garages. The second story ratio for the attached
units (zero lot line), shall be calculated using the living area and attached
garage for all attached units.
ORDINANCE 14-981
Zoning Code Amendment to create lnfill Community Overlay District
Page 4
F. Required Setbacks:
1. A minimum 3-foot setback is required for all habitable space on the 151
and 2nd floor inclusive of architectural elements, such as bay windows,
fireplaces, planter boxes or similar items; cornices, eaves, and
elements that do not restrict emergency service access may encroach
up to eighteen (18) inches.
2. 2nd floor projections over the first floor are permitted in all yards and
shall comply with the 3-foot setback requirement; 2nd floor projections
on the access driveway side may have zero setback but in no case
shall the 2nd floor projection extend over the property line.
3. Decorative architectural features not used for living purposes may
encroach up to eighteen (18) inches into the 3-foot setback provided a
minimum three (3) foot access is provided to the satisfaction of the
Fire Department
4. Zero Lot Line: Residential units may also be attached to other units,
therefore forming a zero lot line.
G. Required Parking:
1 . 2 private garage spaces shall be provided for each unit
2. 3/4 guest parking spaces shall provided for each unit The surface of
guest parking spaces may include impervious materials.
H. Development within the lnfill Community Overlay District shall comply with
the architectural design guidelines and articulation requirements in the
underlying zone to the intent of achieving a high quality project and shall be
subject to the approval of the appropriate approval body.
I. A minimum of one (1) recreational area or common open space shall be
provided for every twenty-five (25) units. The minimum size of each
recreational area shall be 5,000 square feet and have a minimum width of
forty (40) feet
J. Developments may be gated, provided any operable gate(s) and stacking
area meet the requirements of the Los Angeles County Fire Department and
City Engineer to ensure emergency access and prevent impacts to adjacent
public streets, and subject to approval of applicable approval body.
K. Walls or hedges may exceed 6 feet in height, provided the higher wall or
hedge is required mitigation as part of an approved Mitigated Negative
ORDINANCE 14-981
Zoning Code Amendment to create lnfill Community Overlay District
Page 5
Declaration or Environmental Impact Report, and subject to approval of
applicable approval body.
L. All permanent mechanical equipment located on the ground shall be
screened from common areas and shall not restrict emergency access.
M. Private and secure storage shall not be required.
SECTION 6. The City Clerk shall certify to the passage and adoption of this
ordinance and to its approval by the Mayor and shall cause the same to be
published according to law.
APPROVED AND ADOPTED THIS 21 5T DAY OF JANUARY 2014.
Mayor
ATTEST:
CITY CLERK
I, City Clerk of the City of Temple City, hereby certify that the foregoing Ordinance
14-981 was introduced at the regular meeting of the City Council of the City of
Temple City held on the 7th day of January, 2014 and was duly passed, approved
and adopted by said Council, approved and signed by the Mayor and attested to by
the City Clerk at the regular meeting held on the 21st day of January, 2014 by the
following vote:
AYES:
NOES:
ABSENT:
ATTEST:
CITY CLERK
Councilmember-
Councilmember-
Councilmember-
ATTACHMENT B
ORDINANCE NO. 14-988
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TEMPLE CITY AMENDING THE TEMPLE CITY MUNICIPAL CODE
TO CHANGE THE ZONING AT 9250 LOWER AZUSA ROAD (APN
8592-005-003, 8592-005-004) FROM THE HEAVY
MANUFACTURING (M-2) ZONING DISTRICT TO THE R-2 ZONING
DISTRICT AND THE INFILL COMMUNITY (IC) OVERLAY ZONING
DISTRICT.
THE CITY COUNCIL OF THE CITY OF TEMPLE CITY HEREBY ORDAINS
AS FOLLOWS:
SECTION 1. The City Council has considered all of the evidence submitted into the
administrative record which includes but is not limited to:
1. Reports and presentations of project related data and analysis prepared by
the Community Development Department; and
2. The Mitigated Negative Declaration, Initial Study, Mitigation Monitoring and
Reporting Program, and all other supporting environmental documentation
and technical studies; and
3. The Temple City Municipal Code, General Plan, and all other applicable
regulations and codes; and
4. Public comments, both written and oral, received or submitted prior to the
public hearing, supporting or opposing the applicant's request; and
5. Testimony and comments submitted by the applicant and representatives in
both written and oral form at or prior to the public hearing; and
6. All other related documents received or submitted prior to the public hearing.
SECTION 2. This resolution is made with reference to the following prefacing facts
as more fully set forth in the administrative record:
1. On July 1, 2013, the applicant submitted the application.
2. On September 6, 2013, the tentative maps prepared for the project were
distributed to City Land Development/Engineering Division and other relevant
public and private agencies for review and comments.
3. On November 15, 2013, the application was deemed complete.
4. On November 18, 2013, the Notice of Intent to adopt the Mitigated Negative
Declaration was published in the local newspaper and on November 19,
2013, the notice was posted at the Los Angeles County Clerk Office.
ORDINANCE 14-988
Zone Change at 9250 Lower Azusa Road
Page 2
5. On November 20, 2013, the public review period for the Initial Study and
Mitigated Negative Declaration began.
6. On November 26, 2013, notice of the December 10, 2013 Planning
Commission public hearing was provided to property owners within 300 feet
of the property as shown on the latest equalized assessment roll. Due to an
error in the notice, a revised notice was also mailed on December 3, 2013.
7. On November 28, 2013, the notice of the public hearing on December 10,
2013 was published in the Temple City Tribune. Due to an error on the
notice, a revised notice was also published on December 5, 2013.
8. On December 10, 2013 the public review period for the Initial Study and
Mitigated Negative Declaration ended.
9. On December 19, 2013, the notice of the City Council public hearing on
January 7, 2014 was published on the local newspaper.
10. On December 20, 2013, the notice of the City Council public hearing on
January 7, 2014 was mailed to property owners within 500 feet of the
property as shown on the latest equalized assessment roll.
11. Notice of the public hearing satisfied the noticing requirements set forth in
Government Code Sections 65090 and 65091.
12. The project is located at 9250 Lower Azusa Road and 4303 Temple City
Boulevard.
SECTION 3. On January 7, 2014 the City Council approved Resolution No. 14-
4961, approving a General Plan Amendment changing the Land Use Designation
on the subject property from Industrial to Medium Density Residential
SECTION 4. Based on all the facts and evidence stated in Sections 1 through 3 of
this Ordinance, the City Council of the City of Temple City does hereby approve
changing the zoning designation of the property located at 9250 Lower Azusa Road
(APN 8592-005-003, 8592-005-004) from the Heavy Manufacturing (M-2) Zoning
District to the R-2 Zoning District and lnfill Community (I C) Overlay Zoning District.
SECTION 5. The City Clerk shall certify to the passage and adoption of this
ordinance and to its approval by the Mayor and shall cause the same to be
published according to law.
APPROVED AND ADOPTED THIS 21st DAY OF JANUARY 2014.
ORDINANCE 14-988
Zone Change at 9250 Lower Azusa Road
Page 3
Mayor
ATTEST:
CITY CLERK
I, City Clerk of the City of Temple City, hereby certify that the foregoing Ordinance
14-988 was introduced at the regular meeting of the City Council of the City of
Temple City held on the 7th day of January, 2014 and was duly passed, approved
and adopted by said Council, approved and signed by the Mayor and attested to by
the City Clerk at the regular meeting held on the 21st day of January, 2014 by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
CITY CLERK
Councilmember-
Councilmember -
Councilmember -
Councilmember-
ATTACHMENT C
ORDINANCE NO. 14-989
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TEMPLE CITY, CALIFORNIA, APPROVING A
DEVELOPMENT AGREEMENT BETWEEN THE CITY OF
TEMPLE CITY AND OLSON URBAN HOUSING, LLC FOR
DEVELOPMENT OF A RESIDENTIAL HOUSING PROJECT
ON LOWER AZUSA ROAD BETWEEN THE EATON WASH
AND THE UNION PACIFIC RAILROAD RIGHT OF WAY
(APN 8592-005-003 and 8592-005-004)
WHEREAS, California Government Code Title 7, Chapter 4, Article 2.5
authorizes the City of Temple City to enter into development agreements which will
provide certainty, definition and commitment to developers as well as to necessary
public improvements required by development; and,
WHEREAS, Olson Urban Housing, LLC, and its related entity Olson Land
Opportunities, LLC (collectively "Developer") have proposed a 74-unit single family
attached and detached residential project, tentatively named "Azusa Walk," on a
10.8 acre site zoned M-2 and located in a mixed manufacturing and single-family
residential area ("Project"), and the Developer has submitted applications for a
General Plan Amendment, a Zone Change, a Tentative Tract Map, a Conditional
Use Permit, and a Site Plan Review as required by the Temple City Municipal Code
to implement the Project; and,
WHEREAS, the proposed amendments to the General Plan and Zoning Map
would allow development of the Project, which includes the demolition and clearing
of a former lumber yard and the construction of the 7 4 residential units, recreational
amenities, and common areas, as well as retention of 4.63 acres of easement
currently dedicated to the Eaton Wash; and,
WHEREAS, in connection with the General Plan and Zoning Map
amendments and other approvals, the Developer and City staff have negotiated a
proposed Development Agreement in accordance with the requirements of California
Government Code, Title 7, and Chapter 4, Article 2.5 and Resolution No. 1986-77,
which, among other things, sets forth the effective date and term of the agreement;
permitted uses of the property; densities of uses; applicable fees; applicable rules,
regulations and policies; required infrastructure improvements; provisions on
amendments, annual review and default; and other miscellaneous provisions, to
allow for development of the Project; and,
WHEREAS, in Resolution No. 13-2392PC, the Planning Commission
recommended that the City Council approve the Development Agreement and other
approvals necessary to implement the Project, and,
WHEREAS, in Resolution No. 14-4959, the City Council approved a Mitigated
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Negative Declaration for the Project, including the Development Agreement, and,
WHEREAS, the City Council amended the General Plan in Resolution No. 14-
4961 and amended the Zoning Map described in the Temple City Municipal Code by
Ordinance No. 14-988, as requested by the Developer for the implementation of the
Project, and,
WHEREAS, the proposed Development Agreement is consistent with the
approved amendments to the Temple City General Plan and Municipal Code, and,
WHEREAS, a Public Hearing on the Development Agreement was noticed as
required by law; and
WHEREAS, the City Council held the Public Hearing on the Development
Agreement on January 7, 2014, and on said date, the Public Hearing was opened,
held and closed.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMPLE
CITY HEREBY ORDAINS AS FOLLOWS:
Section 1. This Ordinance incorporates, and by this reference makes a part
hereof, that certain Development Agreement, substantially in the form on file with the
City Clerk, by and between the City of Temple City and Olson Urban Housing, LLC,
relative to the Project.
Section 2. This Ordinance is adopted under the authority of the Government
Code Section 65864, et seq.
Section 3. The City Council hereby finds and determines that the Development
Agreement is consistent with the General Plan of the City of Temple City, as amended
by Resolution No. 14-4961, adopted by the City Council on January 7, 2014.
Section 4. Based on the findings set forth in this Ordinance and the evidence in
the Staff Report, the City Council hereby approves the Development Agreement,
substantially in the form on file with the City Clerk, subject to minor and clarifying
revisions approved by the City Attorney.
Section 5. The City Manager is hereby authorized and directed to execute the
Development Agreement on behalf of the City of Temple City.
Section 6. The City Manager or his or her designee is hereby authorized and
directed to perform all acts required to be performed by the City in the administration
and implementation of this Development Agreement, including, without limitation,
reviewing the Development Agreement on annual basis, approving assignments and
executing other agreements or documents necessary to carry out the purposes of the
Development Agreement.
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Section 7. This Ordinance shall take effect thirty (30) days following its final
passage. The City Clerk shall cause this Ordinance to be posted or published pursuant
to the requirements of Government Code Section 36933.
Section 8. Within ten (1 0) days after the date upon which the City Manager
executes the Development Agreement on behalf of the City, the City Clerk shall record
the Development Agreement and this Ordinance with the Recorder/County Clerk of the
County of Los Angeles.
Section 9. If any part of this Ordinance, or the Development Agreement which it
approves, is held to be invalid for any reason, such decision shall not affect the validity
of the remaining portion of this Ordinance or of the Agreement, and this City Council
hereby declares that it would have passed the remainder of the Ordinance, or approved
the remainder of the Agreement, if such invalid portion thereof had been deleted.
INTRODUCED this 7th day of January 2014.
PASSED, APPROVED, AND ADOPTED this __ day of January 2014.
Cynthia Sternquist, MAYOR
ATTEST: APPROVED AS TO FORM:
Peggy Kuo, City Clerk Eric S. Vail, City Attorney
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I, Peggy Kuo, City Clerk of the City of Temple City, hereby certify that the foregoing
Ordinance No. 14-989 was introduced at the regular meeting of the City Council of the City
of Temple City held on the 7th day of January, 2014, and was duly passed, approved and
adopted by said Council at the regular meeting held on , 2014 by the following
vote:
AYES:
NOES:
ABSENT:
Peggy Kuo, City Clerk
LA #4829-3693-4167 vl
ATTACHMENT D
Recorded At The Request EXEMPT FROM RECORDING
FEES UNDER CALIFORNIA
GOVERNMENT CODE § 27383
And When Recorded Return To:
PeggyKuo
City Clerk
City of Temple City
9701 Las Tunas Drive
Temple City, CA 91780
DEVELOPMENT AGREEMENT NO. 2014-01 BY AND
BETWEEN OLSON URBAN HOUSING LLC AND
CITY OF TEMPLE CITY, CALIFORNIA
THIS DEVELOPMENT AGREEMENT (" Agreement") is made and entered into as
of the "Effective Date" set forth herein by and between OLSON URBAN HOUSING, LLC, a
Delaware limited liability company (" Developer") and the CITY OF TEMPLE CITY,
a Charter City organized and existing under the laws of the State of California ("City")
(individually a " Party" and collectively the " Parties" sometimes herein) as provided
herein:
RECITALS
A. Article 2.5 of Chapter 4 of Division 1, Title 7 of the California Government
Code, commencing at § 65864, et seq., authorizes cities to enter into binding development
agreements with persons having legal or equitable interests in real property for the development of
such property.
B. Developer has the contractual right to acquire all interest in and to that real
property located entirely within City, consisting of approximately I 0.86 acres, the
common and legal description of which is set forth in Exhibit "A," attached hereto and
incorporated herein by this reference (" Propertv"). Developer's right to acquire the
Property is set forth in that certain Sale Agreement and Escrow Instructions, by and between
the Developer and Ramshom Corporation, a California corporation, dated March 19,2012, as
amended (" Purchase Agreement").
C. Developer has received the following land use approvals from the City for
the development of the Project on the Property:
(i) Project No. 1300091 & 1300092 including a General Plan amendment,
a Zone Change, a Zoning Text Amendment, a Conditional Use Permit, a
Tentative Tract Map No. 72407, a Development Agreement and a Mitigated
Negative Declaration with related Mitigation Monitoring Program.
Page 2
D. On the 21st day of January 2014, City adopted its Ordinance No. 14-989 approving this
Development Agreement with Developer and said Ordinance became effective on
February 21,2014.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the above Recitals and of the mutual covenants
and agreements hereinafter contained and for other good and valuable consideration, the receipt
and sufficiency of which is hereby aclmowledged, the parties hereto do hereby covenant and agree
as follows:
1.0 Definitions. In this Agreement, unless the context otherwise requires, the following terms
shall have the following meaning:
1.1 "City" is the City of Temple City, a charter city and municipal corporation formed
and existing under the laws of the State of California and any successor-in-interest to the rights,
obligations, and powers of the City.
1.2 "Default" shall mean the failure of a party to perform any material action or
covenant required by and within the time periods provided following notice and expiration of the
opportunity to cure without such cure being completed, as set forth in Section 20 of this Agreement.
1.3 "Developer" is OLSON URBAN HOUSING, LLC, a Delaware limited liability
company.
1.4 "Development Impact Fees" shall mean those development impact fees imposed
and levied by the City to recover the cost of planned public facilities and to mitigate impacts of
projects on the City. "Development Impact Fees" do not include fees imposed by governmental
entities other than the City (even if the City collects such fees on behalf of the other governmental
entity), general and special taxes, application fees and processing fees.
1.5 "Development Regulations" means the ordinances, resolutions, codes, rules, and
official policies of the City governing the development and use of land, including, but not limited to,
the permitted use of land; the density or intensity of use; subdivision requirements; the maximum
height and size of proposed buildings; the provisions for reservation or dedication of land for public
purposes; and the design, improvement, and construction standards and specifications applicable to the
development ofthe Property. Development Regulations do not include any County or City ordinance,
resolution, code, rule, regulation, or official policy, governing:
1.5.1 The licensing or regulation of businesses, professions, and occupations;
1.5.2 Sales taxes, ad valorem property taxes, or voter approved general or special
taxes and assessments;
1.5.3 Health & Safety Regulations as defined in Section 11.3;
1.5.4 The granting of encroachment permits and the conveyance of rights and
interests which provide for the use of or the entry upon public property; and/or
84600.003-1086358v0.1
Page 3
1.5.5 The exercise of the power of eminent domain.
1.6 "Effective Date" shall mean the 31st calendar day following adoption of the
ordinance approving this Agreement by City's City Council.
I. 7 "Existing Development Approvals" shall mean those certain land use
development permits and approvals issued, approved, and/or certified by the City listed in Recital
C, and also including any land use or building permit or approval issued, approved, and/or
certified with respect to the Property as of the Effective Date of this Agreement by the City.
1.8 "Existing Development Regulations" shall mean those Development Regulations
in effect as of the Effective Date.
1.9 "Ministerial Implementing Approvals" shall mean those procedures, reviews,
permits and approvals that are ministerial (except as provided herein) in nature and necessary to
implement the Existing Development Approvals, this Agreement, and the Project, including, but
not limited to final map approval, grading plan check, grading permits, building plan check,
building permits, encroachment permits, sign review, sign permits, landscape plan review,
engineering plan check, and encroachment permits.
1.10 "Project" is that development approved for the Property as provided in this
Development Agreement comprised of 7 4 residential condominium units, three pocket parks and 70
guest spaces (Exhibit "E-Project Map") all as reflected in the Existing Development Approvals.
1.11 "Property" shall mean that real property consisting of approximately 10.86 acres,
the common and legal description of which is set forth in Exhibit "A.
1.12 "Public Improvements" shall mean those public improvements, including but not
limited to streets, street lights, traffic signals, curbs, gutters, sidewalks, parkway landscaping,
irrigation systems, storm drains, sewers, and other public facilities related to the Project and
required to be constructed and installed in the existing public rights-of-way and/or on areas of the
Property to be dedicated to the City by the Developer as part of the development of the Project.
The Public Improvements are more fully listed and described in Exhibit "B," which is attached
hereto and incorporated herein by reference.
1.13 "Subsequent Development Regulations" shall mean those Development Regulations
that go into effect after the Effective Date.
1.14 "Subsequent Project Approvals" shall mean those Ministerial Implementing
Approvals, and such amendments or modifications to the Existing Development Approvals as
Developer applies for and are granted by CITY after the Effective Date.
2.0 Recitals. The recitals are part of the agreement between the parties and shall be enforced
and enforceable as any other provision of this Agreement.
3.0 Interest of Property Owner. Developer warrants and represents that it has right to
acquire the Property, pursuant to the Purchase Agreement, that it has full legal right to enter into
this Agreement and that the persons executing this Agreement on behalf of Developer have been
duly authorized to do so.
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4.0 Binding Effect of Agreement.
4.1 Subject to Developer's acquisition of legal title to the Property, Developer hereby
subjects the Project and the Property to the covenants, reservations and restrictions as set forth in
this Agreement. The City and the Developer hereby declare their specific intent that the
covenants, reservations and restrictions as set forth herein shall be deemed covenants running with
the land and shall pass to and be binding upon Developer's successors and assigns in title or
interest to the Project.
4.2 Following Developer's acquisition of the Property, each and every contract, deed
or other instrument thereafter executed, covering or conveying the Project or any portion thereof
shall conclusively be held to have been executed, delivered and accepted subject to the
covenants, reservations and restrictions expressed in this Agreement, regardless of whether such
covenants, reservations and restrictions are set forth in such contract, deed or other instrument.
4.3 City and Developer hereby declare their understanding and intent that the burden of
the covenants, reservations and restrictions set forth herein touch and concern the land in that the
Developer's legal interest in the Property is rendered less valuable thereby. The City and
Developer hereby further declare their understanding and intent that the benefit such covenants
touch and concern the land by enhancing and increasing the enjoyment and use of the Property by
Developer and the future occupants of the Property, the intended beneficiaries of such covenants,
reservations and restrictions, and by furthering the public purposes for which this Agreement is
adopted. Further, the parties hereto agree that such covenants, reservations and restrictions benefit
all other real property located in the City of Temple City.
5.0 Relationship of Parties. It is understood that the contractual relationship between City
and Developer is such that Developer is an independent party and is not the agent of City for any
purpose whatsoever and shall not be considered to be the agent of City for any purpose whatsoever.
6.0 Term of Agreement. The term of the Agreement shall commence on the Effective Date
and shall expire thirty (30) months thereafter ("Initial Term"). provided that the Initial Term
shall be extended by the period of any Force Majeure Event (as described in Section 30
below) occurring during the Initial Term. If prior to the expiration of the Initial Term certain
Project Milestones are met as outlined in Exhibit "F", the term shall automatically extend
for an additional thirty (30) months from the date the Initial Term expired ("Extension
Term"). The Extension Term shall be extended by the period of any Force Majeure Event
(as described in Section 30 below) occurring during the Extension Term. The Initial Term and the
Extension Term are collectively referred to herein as the "Term".
7.0 Construction. Developer shall use commercially reasonable efforts, in accordance with its
own business judgment taking into account market conditions and economic considerations, to
complete construction of the Project on the Property, and all phases thereof, including, but not
limited to, landscaping, within the Initial Term and any Extension Term of this Agreement.
8.0 Public Improvements. The following provisions shall apply with regard to any Public
Improvements required for the Project:
8.1 Construction of Improvements. Developer hereby agrees to, at its sole cost and
expense, design, construct, and install, in accordance with the requirements of the City, the Public
Improvements (as set forth in Exhibit "B").
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8.2 Improvement Security. Developer shall provide to the City, by no later than the
issuance of specific permits for the construction of the Public Improvements, an instrument or
instruments securing the commencement, completion, and workmanship of the Public
Improvements and securing the payment of laborers and materialmen performing or to perform
work on the Public Improvements (collectively "Improvement Security"). The
Improvement Security shall be one or more of the securities listed under California Goverrnnent
Code § 66499, as is designated by the City. The principal amount of any Improvement Security
shall be determined by the City in application of California Goverrnnent Code §§ 66499.3 and
66499.4. All such Improvement Security provided to the City shall be released in accordance
with the provisions of California Goverrnnent Code§ 66499.7.
8.3 Dedication of Rights-of-Way for Public Improvements. Developer shall
dedicate such rights-of-way, easements, agreements, licenses, and other grants of rights over the
Property ("Dedications") to the City as are reasonably required to accomplish the survey,
design, construction, inspection, testing, operation, maintenance, and repair of the Public
Improvements and as the City is authorized to require under the Existing Development Regulations.
The Dedications, if any, to be required by the City for the Project is specified in Exhibit "C"
which is attached hereto and incorporated herein by reference. Developer agrees that the making of
such Dedications are part of the consideration provided by Developer for this Agreement, that
Developer shall not seek, nor have a right to, any compensation from the City for such
Dedications, and that Developer shall not pursue any legal action for compensation, including
inverse condenrnation or eminent domain, with regard to such Dedications.
8.3 Dedication of Rights-of-Way for Public Improvements. Developer shall
dedicate such rights-of-way, easements, agreements, licenses, and other grants of rights over the
Property ("Dedications") to the City as are reasonably required to accomplish the survey,
design, construction, inspection, testing, operation, maintenance, and repair of the Public
Improvements and as the City is authorized to require under the Existing Development Regulations.
The Dedications, if any, to be required by the City for the Project is specified in Exhibit "C"
which is attached hereto and incorporated herein by reference. Developer agrees that the maldng of
such Dedications are part of the consideration provided by Developer for this Agreement, that
Developer shall not seek, nor have a right to, any compensation from the City for such
Dedications, and that Developer shall not pursue any legal action for compensation, including
inverse condenrnation or eminent domain, with regard to such Dedications.
8.4 Public Art. Developer shall install public art, including but not limited to
sculptures, along the southwestern border of the Property. The public art installed by the Developer
shall be approved by the City. The total cost for the public art installed by the Developer shall be
approximately, but is not required to be in excess of, fifty thousand dollars ($50,000). The
project's public art shall be installed prior to the issuance of a Certificate of Occupancy for the
project's 60th dwelling unit. Developer agrees to work with the City's Public Arts Commission to
select the artwork that will be installed and the locations of the installations. The artwork and
locations selected by the Public Arts Commission will be submitted to the City Council for final
approval, consistent with Temple City Municipal Code Section 2632. The calculation of the total
cost of the public art piece shall include all costs of design, approval, acquisition and installation of
the public art piece, including, without limitation, all artist and consultant fees necessary to approve
the art, the lighting and mounting ofthe art on site, and the fabrication/installation of the art piece
itself.
84600.003·1086358v0.1
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9.0 Assignment.
9.1 Developer shall have the right to sell, mortgage, hypothecate, assign or transfer
(collectively, "Transfer") all or any portion of the Property (as the same may be
subsequently subdivided), subject to the express written permission of the City during the term of
this Development Agreement, which permission shall not be unreasonably withheld, conditioned
or delayed .. Except as provided in Section 9 .2.2 below, any such transfer shall be deemed to
include an assignment and assumption of all rights, duties and obligations created by this
Development Agreement with respect to the portion of the Property which is the subject of that
Transfer. No sale, transfer, or assignment by Developer shall violate the Subdivision Map Act,
Government Code Section 66410, et seq .. Notwithstanding anything herein to the contrary, no
City approval or permission shall be required in connection with a (i) an encumbrance of the
Property pursuant to Section 22 below, (ii) a sale to a publicly traded homebuilder, or one of the 25
largest private homebuilders operating in the State of California, (iii) a Transfer to the end user of
the residential unit pursuant to a final subdivision public issued with respect to the Property, or any
homeowner or property owner's association in which such homebuyers are members, (or) a
Transfer of completed model units in connection with the marketing or financing of the project. In
any event, all further restrictions upon Transfer shall terminate upon the earlier of the termination
of this Agreement or the completion of construction of all planned improvements upon the
Property.
9.2 Any assignment made under this section shall be made in compliance with the
following provisions:
9.2.1 No sale, transfer, or assignment of any right or interest under this Agreement
shall be made unless made together with the sale, transfer, or assignment of all or a part of the
Property. Developer agrees to provide specific notice of this Agreement, including the record or
document number, where a true and correct copy of this Agreement may be obtained from the
County Clerk/County Recorder of the County of Los Angeles, to the transferee.
9.2.2 No fewer than fifteen (15) business days prior to such sale, transfer, or
assignment, Developer shall notify City, in writing, of such sale, transfer, or assignment. Following
any sale, transfer, or assignment of a fee interest in the Property, Developer shall provide City with
an executed agreement, in a form reasonably acceptable to the City Attorney, by the Developer,
transferee, or assignee and providing therein that the transferee, or assignee is aware of the terms of
this Agreement and expressly and unconditionally assumes all the duties and obligations of the
Developer under this Agreement as it relates to the property being acquired; provided that no such
agreement shall be required in connection with and no rights or obligations hereunder shall transfer
to the end user of the Property acquiring it for occupancy as a primary or secondary residential use,
including any purchaser pursuant to a final subdivision public report issued with respect to the
Property.
9.2.3 Any sale, transfer, or assignment not made in strict compliance with this
Section 9 shall constitute default by the Developer under this Agreement. Notwithstanding the
failure of the Developer, buyer, transferee, or assignee to execute the agreement required by this
section, the burdens of this Agreement shall be binding upon the buyer, transferee, or assignee,
but the benefits of this Agreement shall not inure to the buyer, transferee, or assignee until and
unless such agreement is executed.
84600.003·1086358v0.1
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9.3 Release of Developer. Notwithstanding any sale, transfer, or assignment,
Developer shall continue to be obligated under this Agreement as it relates to the Property, or
portion thereof, transferred unless Developer is given a release in writing by City, which release
shall be provided by City upon the full satisfaction by Developer of ALL of the following
conditions:
9.3.1 The Developer no longer has a legal interest in all or any part of the Property
sold, transferred or assigned except as a beneficiary under a deed of trust.
9.3.2 The Developer is not then in material default under this Agreement.
9.3.3 The Developer or the buyer, transferee, or assignee has provided City with
the executed agreement required under section 9.2.2 above.
9.3.4 The buyer, transferee or assignee provides City with security reasonably
equivalent to the security, if any, previously provided by Developer to secure performance of its
obligations hereunder.
9.3.5 The Developer has paid all fees, if any, that are then due and owing by the
Developer to the City through the date of the proposed transfer.
9.4 Subsequent Assignment. Any subsequent sale, transfer, or assignment after an
initial sale, transfer, or assignment by Developer shall be made only in accordance with and
subject to the terms and conditions of this Section 9.
10.0 General Standards and Restrictions Pertaining to Development of the Property. The
following specific restrictions shall apply to the use of the Property pursuant to this Development
Agreement:
10.1 Developer shall have the right to develop the Project on the Property in accordance
with the terms and conditions of this Agreement and City shall have the right to control
development of the Property in accordance with the provisions of this Agreement. City agrees to
timely consider and expeditiously act upon any matter which is reasonably required, necessary or
desirable to accomplish the intent, purpose and understanding of the parties in entering into this
Agreement, including, without limitation, processing of any Subsequent Project Approval, as
provided for in Section 15.
10.2 Subject to Developer's installation of infrastructure in accordance with the
requirements of the Existing Development Approvals, City hereby acknowledges that it will have
sufficient capacity in its infrastructure and services to accommodate the Project. City hereby agrees
that it will provide all applicable City controlled services to the Project and that there shall be no
restriction by City on hookups or service for the Project with respect to said items.
10.3 The density and intensity of use, the uses allowed, the size of proposed buildings,
provisions for the reservation or dedication of land for public purposes, the maximum height of
proposed buildings and location of public improvements, together with other terms and conditions
of development applicable to the Property, shall be as set forth in this Development Agreement
and the Existing Development Approvals.
10.4 City agrees to cooperate with Developer in the issuance of permits on an expedited
basis and at the earliest feasible date, including, separate and sequential issuance of demolition,
84600.003-1086358v0.1
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grading and building permits and, if applicable, issuance of permits prior to recordation of tract
maps for the Project; provided Developer's applications for such permits comply with all
applicable Existing Development Regulations.
11.0 Effect of Existing Development Regulations on Development of Project. Except as
expressly provided in this Development Agreement, the Existing Development Regulations shall
apply to the construction and development of the Project on the Property and, subject only to the
terms of this Development Agreement, Developer shall have a currently effective vested right to
develop the Property in accordance with the Existing Development Regulations. The parties
acknowledge and agree that the City is restricted in its authority to limit the exercise of its policy
power by contract. As such, the parties agree that this Section adequately reserves to the City all
of its respective police power while providing the Developer, to the fullest extent allowed under
Article 2.5 of Chapter 4 of Division I, Title 7 of the California Government Code, connnencing at
§ 65864, et seq., and interpreting decisions of courts of competent jurisdiction, vested rights to
develop the Project. Subject to the foregoing, and to the maximum extent permitted under the law,
this Agreement is intended to, and shall, bind future City Councils to its terms.
11.1 The provisions of this Section 11 shall not preclude the application to the
development of the Property of Subsequent Development Regulations which are specifically
mandated and required to apply to the Project by changes in state or federal laws or regulations as
provided in California Government Code § 65869.5 or any successor provision or provisions.
11.2 As provided in California Government Code § 65866, in subsequent
actions applicable to the Property, City may apply new rules, regulations, and policies to the
Property adopted after the Effective Date provided such new rules, regulations and policies do
not conflict in any way with the terms of this Development Agreement or the rights granted
herein or further condition or restrict the development of the Project as provided for herein.
11.3 Nothing herein shall prevent the City from applying to the development of
the Project on the Property, or the subsequent use of the Property, any ordinances, rules,
regulations, policies, or procedures ("Laws"), the primary purpose of which is to protect
health, safety, and welfare, or the primary purpose of which is the general regulation of
business activity within the City. These matters may include, but are not limited to: (i) Laws
regarding the abatement of public nuisances; (ii) Laws regulating hazardous materials, trash
and related rubbish and solid waste, weeds, dust, graffiti, and inoperative vehicles; (iii) Laws
regarding emergency situations including fires, floods, earthquakes, and other natural disasters;
(iv) Laws prohibiting criminal acts; (v) Laws regulating the keeping and use of animals; (vi)
Laws regulating prurient interests including the regulations of adult businesses and activities,
smoking, and the sale and consumption of alcoholic beverages; (vii) Laws regulating the
conduct of business within the City including the requirement to obtain a business license; (viii)
Laws regulating the use and placement of signs within the City; and (ix) building, plumbing,
electrical, mechanical, fire, dangerous buildings, and similar uniform codes adopted by the
City (collectively, the " Health & Safety Regulations") . In the event Developer contests
that application of such Health & Safety Regulations to development of the Project on the
Property as being in conflict with any of the Existing Development Approvals, or as impairing
or prohibiting Developer's ability to develop the Project as contemplated in this
Agreement, then Developer shall so notify the City in writing, in which event City shall not
impose such regulation on the Property and until the City adopts a fmding that imposition of the
regulation is being applied to the Property in the same manner as it is being generally applied
throughout the City and is reasonably necessary to correct or avoid a condition general! y
84600.003-1086358v0.1
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injurious or detrimental to the public health, safety or welfare. These findings shall be based
upon substantial evidence in the record from a hearing conducted by the City Council.
12.0 Development Impact Fees. The Development Impact Fees applicable to the
Project during the Term of this Agreement shall be limited to those Development Impact
Fees and the amount thereof shown on Exhibit "D" attached hereto. The applicable portion
of each of the Development Impact Fees shown on Exhibit "D" shall be paid at the time a
building permit is issued for each residence within the Project during the Term.
13.0 Maintenance of the Property. The Developer shall, during its ownership of the Property
and at its sole cost and expense: (i) maintain the appearance and safety of the Property
(including all improvements, fixtures, and landscaping) in good order, condition, and repair,
and free from the accumulation of trash, waste materials, and other debris; (ii) remove all
graffiti placed upon the Property (including all improvements, fixtures, and landscaping) within
seventy-two (72) hours of its appearance; (iii) maintain in good order, condition and repair,
properly functioning landscape irrigation systems on the Property; and (iv) remove and
promptly replace all dead or diseased landscaping material on the Property. In the event of a
default of this Section 13 and of a failure to commence to cure such default within fifteen (15)
days after service of a written notice by the City, or to thereafter diligently pursue such cure to
completion, then the City or its agents, employees and contractors shall have the right to enter
upon the Property without further notice and to take such actions as are necessary to cure the
default. Developer shall reimburse the City for all reasonable costs associated with cure of the
default, within fifteen (15) days after delivery of a written notice by the City to the Developer
of those costs. Following assignment of the control of the common area of the Property to a
homeowners association, the obligations described above shall be performed by that
association and Developer shall have no further responsibility therefor.
14.0 Permitted Uses. The permitted uses of the Property shall be those specified in the
Existing Development Approvals and the Ministerial Implementing Approvals, all as they may
be amended from time to time at the request of the Developer and with the approval of the City.
15.0 Public Benefit. The parties aclmowledge and agree that this Agreement confers
private benefits on the Developer which should be balanced by commensurate public
benefits. Accordingly, the parties intend to provide consideration to the public to balance the
private benefits conferred on the Developer by providing more fully for the satisfaction of
the public needs resulting from development of the Project. The public benefits of the Project
include provision of park, open space, and affordable housing funding above and beyond that
currently required under the Existing Development Regulations and Development Fees and the
provision of such additional park space in the Project will assist City in meeting its need for
additional parks, open space, and affordable housing units.
16.0 Subsequent Project Approvals. The parties contemplate that development of the
Project will require Developer to obtain certain Ministerial Implementing Approvals from the
City for the Project. Such Subsequent Project Approvals shall be governed by the following:
16.1 Ministerial Implementing Approvals. The parties aclmowledge and agree
that Developer shall need certain Ministerial Implementing Approvals (such as grading and
84600.003-108635Sv0.1
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building permits) to undertake and complete the Project as contemplated under the Existing
Development Regulations, Existing Development Approvals and this Agreement.
These Ministerial Implementing Approvals are anticipated to be of a ministerial or only
limited discretionary nature and shall not cause a substantial or significant change in the
Project or in any Existing Development Approval. No Subsequent Development Regulation or
Development Impact Fee shall be imposed as a condition of approval on a Ministerial
Implementing Approval. City shall accept for processing, review, and action all applications
for Ministerial Implementing Approvals and such applications shall be processed in the
normal manner for processing such matters unless Developer requests expediting of the
Ministerial Implementing Approvals. At the Developer's request, City will contract for
planning and engineering consultant services to expedite the review and processing of
Ministerial Implementing Approvals, and, in that event, the cost plus a 15% administrative
fee shall be borne by Developer.
16.1.1 Subdivision Map. The Parties contemplate that Developer will process
a Tentative Tract Map as one of the Existing Development Approvals. However if the Developer
does not process or obtain approvals of a Tentative Tract Map before the effective date of this
Agreement, then Developer shall process a subdivision map through City's subdivision map
approval process, comprising all of the property identified in Exhibit "A," and cause the final map
to be recorded in the form prescribed by law. Developer may, at Developer's sole risk and expense,
and after executing and recording a subdivision improvement agreement approved and executed
by the City, apply for building and grading permits pursuant to City's codes and ordinances,
prior to the recordation of said map; provided, however, that no certificate of occupancy or other
entitlement of a similar nature may be granted or obtained prior to recordation thereof No
conditions of approval shall be imposed in connection with processing or approval of such
subdivision map beyond those contained in the Existing Development Approvals and Existing
Development Regulations, and those required by mitigation measures approved as part of any
subsequent CEQA review and approval, if any, required for the Map. As provided in California
Government Code §§ 66452.6 and 65863.9, the term of any tentative, vesting tentative or parcel
map hereafter approved with respect to the Project and the term of each of the Project
Approvals shall remain in effect and be valid through the scheduled termination date of
this Agreement or the date such approval would otherwise be in effect under applicable law,
whichever is later.
16.2 Amendments to Existing Development Approvals. Upon the
written application of Developer, modifications and changes to the Existing Development
Approvals may be approved pursuant to the terms of City's Zoning Ordinance.
17.0 Periodic Review Procedure
17.1 Timing. Pursuant to Government Code § 65865.1, City shall review
the Developer's compliance with the terms, conditions, and covenants of this Agreement.
Such review shall be undertaken at least once during every twelve (12) month period from the
Effective Date of this Agreement. The Developer or successor shall reimburse City for the
reasonable and necessary costs of this review, not to exceed One Thousand Dollars
($1 ,000.00) annually, excluding cost incurred under Section 20 [Default & Enforcement],
84600.003-1086358v0.1
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within thirty (30) days of written demand from City. City's failure to conduct any such
annual review shall not affect the validity or continuing effectiveness of this Agreement.
17.2 Evidence for Annual Review. Developer shall deliver to City within thirty (30)
days of the date of receipt of a written request from City, evidence to demonstrate the
Developer's good faith compliance with the terms of this Agreement. The City shall bear no
responsibility or obligation to research, investigate, or otherwise obtain evidence of Developer's
good faith compliance with this Agreement. It shall be Developer's sole responsibility and
obligation to provide evidence of its good faith compliance with this Agreement. Prior to malcing a
determination, the City shall make available to the Developer any public staff reports and
documents to be used or relied upon by City to determine Developer's good faith compliance with
this Agreement. The Developer shall be permitted an opportunity to respond to the City's
evaluation of its performance, either orally or at a public hearing or in a written statement. Such
response shall be made to the City Manager or its designee for purposes of review of
compliance with this Agreement.
17.3 Certificate of Compliance. With respect to each year for which an annual
review of compliance with this Agreement is conducted, and for which the City has
determined that Developer is in good faith compliance with this Agreement, the City, upon
written request of the Developer, shall provide Developer with a written certificate of good-
faith compliance, duly executed and acknowledged by the City. The Developer shall have the
right, in the Developer's sole discretion, to record this certificate of compliance.
18.0 Indemnification. Developer agrees to, and shall, hold City and its elected and
appointed officials, officers, agents and employees free and harmless from all liability for damage
or claims for damage for personal injury, including death, and claims for property damage which
may arise from the negligent or wrongful actions of Developer relating to the construction of the
Project. This hold harmless provision applies regardless of whether or not the City prepared,
supplied or approved the plans, specifications or other documents for the Project, but shall not
apply to any claim arising from the negligence or intentional misconduct of the City or any
agent or representative acting on the City's behalf.
19.0 Amendments. This Agreement may be amended or modified, in whole or in part, only
by mutual written consent of the parties and then in the manner provided for in
California Government Code§§ 65868, et seq., or their successor provisions.
20.0 Default & Enforcement.
20.1 Default. Either party's failure or unreasonable delay in performing any
term, provision or covenant of this Agreement constitutes a breach of this Agreement. In the
event of a breach, the injured party may give written notice of breach to the defaulting party,
specifying the breach. Delay in giving or failure to give such notice shall not constitute a waiver
of the breach. Ifthe breaching party fails to cure the breach within the Cure Period (as
defined below), then the party shall be in Default and liable to the injured party for any and
all damages caused by such Default, unless otherwise provided for by this Agreement. The
"Cure Period" shall be (i) forty-five ( 45) business days after receipt of a written notice of
breach, or, (ii) if the breach is of a nature that cannot reasonably be cured within such
84600.003-1086358v0.1
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forty-five (45) business days, a reasonable period, provided the breaching party connnences
to cure the breach within said forty-five (45) business days and thereafter diligently prosecutes
such cure to completion.
20.2 Breach by Developer. Developer is in breach under this Agreement upon
the happening of one or more of the following events or conditions:
20.2.1 If a material warranty, representation or statement is made or furnished
by Developer to City with respect to this Agreement and is false or proved to have been false in
any material respect when it was made;
20.2.2 If a finding and determination is made by City following an annual
review pursuant to Section 17 above, upon the basis of substantial evidence, that Developer
has not complied in good faith with any material terms and conditions of this Agreement, after
notice and opportunity to cure as described in hereinabove; or
20.2.3 A breach by Developer of any of the provisions or terms of this
Agreement, after notice and opportunity to cure as provided in hereinabove.
20.2.4 More than forty-five (45) days have passed since City's making of a
written request to Developer for payment or reimbursement for a fee or service authorized or
agreed to pursuant to this Agreement and which Developer was obligated to pay or
reimburse, and Developer has failed to provide such payment or reimbursement.
Termination of this Agreement shall not affect existing entitlements or
permits issued prior to such termination, although all such permits shall be and remain
subject to any terms and conditions of approval contained therein or imposed in connection
therewith.
20.3 Breach by City. If City has failed to cure its breach during the Cure Period
as provided in Section 20.1 Developer may pursue any legal or equitable remedy available to it
under this Agreement without further notice to City, except as may be required under the law for
service of summons and other legal papers. It is acknowledged by the parties that City would not
have entered into this Agreement if City was to be subject to or liable for damages --including
monetary damages --under or with respect to this Agreement or the application thereof.
Developer, for himself or any successor thereto, expressly waives the right to seek
damages --including monetary damages --against the City or any officer, employee, or
agent thereof, for any breach or Default of this Agreement. Developer covenants and agrees
not to sue for or claim any damages --including monetary damages --for any purported breach
or Default of this Agreement by City. During the time when Developer alleges the existence of a
City Default and without limiting any of its other available remedies, Developer shall not be
obligated to proceed with or complete the Project or any phase of the Project, nor to reserve or
dedicate any property pursuant to the Development Plan or this Agreement. Upon a City Default,
any resulting delays in Developer's performance shall neither be a Developer Default nor
constitute grounds for termination or cancellation of this Agreement by the City.
84600.003-1086358v0.1
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21.0 No Waiver of Remedies. Except as otherwise expressly provided herein, all
other remedies at law or in equity which are not otherwise provided for in this Agreement are
available to the parties to pursue in the event that there is a breach of this Development
Agreement. No waiver of any breach or default under this Development Agreement by a
party hereto shall be deemed to be a waiver of any other subsequent breach thereof or default
hereunder.
22.0 Rights of Lenders Under Agreement. This Agreement shall not prevent or
limit Developer, acting in good faith, in any manner, at its sole discretion, from encumbering the
portion of the Property owned by it, or any portion thereof or any improvement thereon, by any
mortgage, deed of trust, or other security device securing financing with respect to such portion of
the Property without further authorization from or consent or approval of the City. The City
acknowledges that the lenders providing such financing may require certain Agreement
interpretations and/or modifications and agrees upon request, from time to time, to meet
with the Developer and representatives of such lenders to negotiate in good faith any such
request for interpretation or modification. City agrees that it will not unreasonably withhold
consent to any such requested interpretation or modification provided such interpretation or
modification is consistent with the intent and purposes of this Agreement. Nothing in this
Agreement shall require City to agree to subordinate this Agreement to any security interest.
Neither the entering into of this Agreement nor a breach of this Agreement shall defeat, render
invalid, diminish, or impair the lien of any mortgage or deed of trust on the Property, or any
portion thereof, made in good faith and for value. Should Developer place or cause to be placed
any encumbrance or lien on the Project, or any part thereof, the beneficiary ("Lender") of said
encumbrance or lien shall have the right at any time during the term of this Agreement and the
existence of said encumbrance or lien to:
22.1 Do any act or thing required of Developer under this Agreement, and any such
act or thing done or performed by Lender shall be as effective as if done by Developer;
22.2 Realize on the security afforded by the encumbrance or lien by
exercising foreclosure proceedings or power of sale or other remedy afforded in law or in
equity or by the security document evidencing the encumbrance or lien (hereinafter referred to
as "a trust deed");
22.3 Transfer, convey or assign the title of Developer to the Project to any purchaser
at any foreclosure sale, whether the foreclosure sale be conducted pursuant to court order or
pursuant to a power of sale contained in a trust deed; and
22.4 Acquire and succeed to the interest of Developer by virtue of any foreclosure
sale, whether the foreclosure sale is conducted pursuant to a court order or pursuant to a power
of sale contained in a trust deed, and thereafter freely transfer or dispose of such interest to a
third party without complying with any of the requirements of this Agreement applicable to a
transfer, and, upon such transfer, Lender shall be automatically released from any further
liability hereunder. This Agreement will remain valid and binding on the transferee.
No Lender shall have an obligation or duty under this Agreement to perform
Developer's obligations, or to guarantee such performance prior to any foreclosure or
84600.003·1086358v0.1
Page 14
deed in lieu of foreclosure, but upon acquiring fee title to the Property or any portion thereof,
the Lender shall be subject to the terms and conditions of this Agreement. However, any person
who acquires title to the Property thereafter shall also be subject to the terms and conditions of
this Agreement.
23.0 Notice to Lender. City shall give written notice of any Default or breach under
this Agreement by Developer to Lender (if known by City) and afford Lender the opportunity
after service of the notice to:
23.1 Cure the breach or Default within forty five (45) business days after service of
said notice, where the Default can be cured by the payment of money;
23.2 Cure the breach or Default within forty five ( 45) business days after service of
said notice where the breach or Default can be cured by something other than the payment of
money and can be cured within that time; or
23.3 Cure the breach or Default in such reasonable time as may be required
where something other than payment of money is required to cure the breach or default and
such cure cannot reasonably be performed within forty five ( 45) business days after said notice,
provided that acts to cure the breach or default are commenced within a forty five ( 45) business
day period after service of said notice of default on Lender by City and are thereafter diligently
continued by Lender.
24.0 Action by Lender. Notwithstanding any other provision of this Agreement, a Lender
may forestall any action by City for a breach or Default under the terms of this Agreement by
Developer by commencing proceedings to foreclose its encumbrance or lien on the Project. The
proceedings so commenced may be for foreclosure of the encumbrance by order of court or for
foreclosure of the encumbrance under a power of sale contained in the instrument creating the
encumbrance or lien. The proceedings shall not, however, forestall any such action by the City
for the Default or breach by Developer uuless:
24.1 They are commenced within ninety (90) days after service on Developer and
Lender of the notice of breach described hereinabove;
24.2 They are, after having been commenced, diligently pursued in the manner
required by law to completion; and
24.3 Lender keeps and performs all of the terms, covenants and conditions of
this Agreement requiring the payment or expenditure of money by Developer until the
foreclosure proceedings are complete or are discharged by redemption, satisfaction or payment.
25.0 Notice. Any notice required to be given by the terms of this Agreement shall be
provided by certified mail, return receipt requested, at the address of the respective parties
as specified below or at any other such address as may be later specified by the parties hereto.
To Developer:
84600.003-1086358v0.1
OLSON URBAN HOUSING, LLC
3010 Old Ranch Parkway, Suite 100
With a copy to:
3010 Old Ranch Parkway,
Suite 100 Seal Beach,
California 907 40
Attention: Katherine M.
Chandler, Esq. Business
No.: (562) 370-2217
Facsimile No.:
With a copy to:
Page 15
Seal Beach, California 907 40
Attention: Todd Olson and John Reekstin
Business No.: (562) 596-4770
Facsimile No.: (562) 596-4 703
Email: tolson@theolsonco.com
OLSON URBAN HOUSING, LLC
(562) 598-
9535kchandler@theolsonco.com
City of Temple City
9701 Las Tunas Drive
Temple City, CA 91780
Attention: City Manager
Business No.: (626) 285-2171
Facsimile No.: (626) 285-8192
Email: jpulido@templecity.us
Eric S. Vail
Burke, Williams & Sorensen, LLP
2280 Market St., Suite 300
Riverside, CA 92592
Business No.: (951) 788-0100
Facsimile No.: (951) 788-5785
Email: evail@bwslaw.com
26.0 Attorneys' Fees. In any proceedings arising from the enforcement of this Development
Agreement or because of an alleged breach or Default hereunder, the prevailing party shall be
entitled to recover its costs and reasonable attorneys' fees incurred during the proceeding or upon
any appeal therefrom as may be fixed within the discretion of the court.
27.0 Binding Effect. This Agreement shall bind, and the benefits and burdens hereof shall
inure to, the respective parties hereto and their legal representatives, executors, administrators,
successors and assigns, wherever the context requires or admits.
28.0 Applicable Law. This Agreement shall be construed in accordance with and governed by
the laws of the State of California.
29.0 Partial Invalidity. If any provisions of this Agreement shall be deemed to be invalid,
illegal or unenforceable, the validity, legality or enforceability of the remaining provisions hereof
shall not in any way be affected or impaired thereby.
84600.003-1 086358v0.1
Page 16
30.0 Force Majeure. In addition to specific provisions of this Agreement, whenever a period of
time is designated within which any party hereto is required to do or complete any act, matter or
thing, the time for the doing or completion thereof shall be extended by a period of time equal to
the number of days during which such party is prevented from the doing or completion of such act,
matter or thing because of causes beyond the reasonable control of the party to be excused,
including, without limitation, war; acts of terrorism; insurrection; riots; floods; earthquakes; fires;
casualties; acts of God; strikes; litigation and administrative proceedings involving the Project;
restrictions imposed or mandated by other governmental entities; enactment of conflicting state or
federal laws or regulations; judicial decisions; moratoria or governmental restriction; extraordinary
disruptions in capital markets; the exercise of City's reserved powers; or similar bases for excused
performance which are not within the reasonable control of the party to be excused (collectively,
"Force Majeure Event").
31.0 Estoppel Certificate. At any time during the term of this Agreement, any lender or third
party may request any party to this Agreement to confirm that (i) this Agreement is unmodified and
in full force and effect (or if there have been modifications hereto, that this Agreement is in full force
and effect as modified and stating the date and nature of such modifications) and that (ii) to the best
of such party's knowledge, no Defaults exist under this Agreement or if Defaults do exist, to describe
the nature of such Defaults and (iii) any other information reasonably requested.
32.0 Timing of Development. The parties acknowledge that Developer cannot at this time predict
when or the rate at which the Project would be developed. Such decisions depend upon numerous
factors which are not all within the control of Developer. Because the California Supreme Court held
in Pardee Construction Co. v. City of Camarillo (1984) 37 Cal. 3d 465, that the failure of the parties
therein to provide for the timing of development resulted in a later adopted initiative restricting the
timing of development to prevail over such parties' agreement, it is the intent of Developer and City to
hereby cure that defect by acknowledging and providing that Developer shall have the right to develop
the Property consistent with the Existing Development Approvals in such order and at such rate and at
such times as Developer deems appropriate. No City-imposed moratorium or other limitation (whether
relating to the rate, timing or sequencing of the development or construction of all or any part of the
Property, whether imposed by ordinance, initiative, resolution, policy, order or otherwise, and whether
enacted by the City Council, a board, agency, commission or department of City, the electorate, or
otherwise) affecting parcel or subdivision maps (whether tentative, vesting tentative or final), building
permits, occupancy certificates or other entitlements to use or service (including, without limitation,
water and sewer) approved, issued or granted within City, or portions of City, shall apply to the
Property to the extent such moratorium or other limitation is in conflict with this Agreement.
33.0 Recordation. This Agreement shall be recorded in the Official Records of the County
Recorder of the County of Los Angeles within ten (I 0) business days following Developer's
acquisition of title to the Property, or the execution and delivery of this Agreement, whichever
occurs last. Developer shall bear the cost of recordation hereof, if any.
IN WITNESS WHEREOF, this Agreement has been executed by the parties and shall be
effective on the Effective Date set forth hereinabove.
[signatures on following page]
84600.003·1086358v0.1
CITY OF TEMPLE CITY,
a Charter City and municipal corporation
Dated:
By
Cynthia Stemquist, Mayor
ATTEST:
Peggy Kuo, City Clerk
APPROVED AS TO FORM:
Eric S. Vail, City Attorney
84600.003-1 086358v0.1
Page 17
OLSON URBAN HOUSING, LLC a
Delaware limited liability company
By: In Town Living, Inc.
a Delaware corporation
Its Managing Member
By:
Name:
Title:
By:
Name:
Title:
Page 18
STATE OF CALIFORNIA )
)
COUNTY OF LOS ANGELES )
On personally appeared, before me,
, a notary public, who proved to me on the basis of
satisfactory evidence to be the person(s) whose narne(s) is/are subscribed 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.
Notary Public
84600.003-1086358v0. 1
EXHIBIT "A"
LEGAL DESCRIPTION
Real property in the unincorporated area of the county of Los Angeles, state of California,
Described as follows:
Parcel 1: (8592-005-004)
Page 19
That portion of the rancho San Francisquito, in the city of Temple City, county of Los Angeles, state of
California, as shown on the plat record in book 1 pages 31 and 32 of patents, in the office of the county
recorder of said county, bounded as follows:
Bounded on the northeast by the northeast line and its northwesterly prolongation thereof of the land
described in deed to southern pacific railroad co., recorded in book 37 page 194 of deeds of said county;
bounded on the southwest by the southwest line of said deed in said book 37 page 194 of deeds of said
county and its northwesterly prolongation thereof; bounded on the northwest by the northwesterly line of
the land described in deed recorded June 1, 1937 as instrument no. 927 in book 14948 page 386, of
official records of said county and its southwesterly prolongation thereof and
Bounded on the southeast by the following described line:
Commencing at the point of intersection of the center line of Ellis lane (now known as temple city
boulevard), 80 feet wide, as shown on the map oftract no. 14535, recorded in book 298, pages 6 and 7
of maps, in the office of said county recorder, with the southeasterly prolongation of the southwesterly
line of the land described in said deed to southern pacific railroad co.; thence north 68 degrees 08
minutes 12 seconds west, along said southeasterly prolongation and said southwesterly line, 628.26 feet
to the true point of beginning; thence north 21 degrees 51 minutes 48 seconds east, at right angles to said
southwesterly line, 199.64 feet to the northeasterly line of the land described in said deed to southern
pacific railroad co.
Except that portion of said land lying within the lines of the land described in deed recorded October 7,
1965 as instrument no. 3388 of official records of said county.
Also except therefrom all minerals and mineral rights, interests, and royalties, including without
limiting, the generality thereof, oil, gas and other hydrocarbon substances, as well as metallic or other
solid minerals, in and under the property. However, grantors of its successors and assigns, shall not have
the right for any purpose, whatsoever to enter upon, into, or tlrrough the surface of the property in
connection therewith, as reserved by southern pacific transportation company, a Delaware corporation
by deed recorded December 27, 1991, as instrument no. 91-2033978 of official records.
Parcel2: ( 8592-005-003 )
That portion of the rancho San Francisquito, in the city of Temple City, county of Los Angeles, state of
California, as shown on the plat recorded in book 1 pages 31 and 32 of patents, in the office of the
county recorder of said county, described as follows:
84600.003-1 086358v0.1
Page 20
Beginning at the point of intersection of the center line of Ellis lane (now known as temple city
boulevard) 80 feet wide, as shown on the map of tract no. 14535, recorded in book 298, pages 6 and 7 of
maps, in the office of said county recorder, with the southeasterly prolongation of the southwesterly line
of the land described in deed to southern pacific railroad co., recorded in book 37, page 194 of deeds of
said county; thence north 68 degrees 08 minutes 12 seconds west, along said southeasterly prolongation
and said southwesterly line and its northwesterly prolongation, 2970.75 feet to the center line of! ower
Azusa road (70.00 feet wide) as said center line is shown on the map of tract no. 11282, recorded in
book 225, pages 41 and 42 of said maps; thence south 80 degrees 22 minutes 49 seconds west, along
said center line, 47.87 feet to a line that is parallel with and distant southwesterly 25.00 feet, measured at
right angles, from the above described line having a length of2970.75 feet; thence south 68 degrees 08
minutes 12 seconds east, along said parallel line 3013.08 feet to said center line of Ellis lane; thence
north 18 degrees 25 minutes 3o seconds east, along said center line, 25.05 to the point of beginning;
Except that portion of said land lying southeasterly of the following described line:
Commencing at the point of intersection of said center line of Ellis lane, with the southeasterly
prolongation of the southwesterly line of the land described in said deed to southern pacific railroad co. ;
thence north 68 degrees 08 minutes 12 seconds west, along said southeasterly prolongation and said
southwesterly line, 628.26 feet to the true point of beginning; thence south 21 degrees 51 minutes 48
seconds west, at right angles to the southwesterly line, 25.00 feet to said parallel line.
Also except therefrom all minerals and mineral rights, interests, and royalties, including without
limiting, the generality thereof, oil, gas and other hydrocarbon substances, as well as metallic or other
solid minerals, in and under the property. However, grantors of its successors and assigns, shall not have
the right for any purpose, whatsoever to enter upon, into, or through the surface of the property in
connection therewith, as reserved by southern pacific transportation company, a Delaware corporation
by deed recorded December 27, 1991, as instrument no. 91-2033978 of official records.
84600.003-1086358v0.1
84600.003-1086358v0. 1
Exhibit "A" - 1
EXHIBIT "B"
PUBLIC IMPROVEMENTS
Page 21
Page 22
Exhibit "B"-1
84600 003-1086358v0.1
84600 003-1086358v0.1
EXHIBIT "C"
DEDICATIONS
Exhibit "C"-1
Page 23
Affordable Housing Fee
Park Fee
Sewer Reconstruction Fee
Public Art Fee
84600 003-1086358v0.1
Page 24
EXHIBIT "D"
DEVELOPMENT IMP ACT FEES
$157,000 ($2121.62 per unit payable on a unit
by unit basis upon issuance of a building
permit for the applicable unit)
$168,000 ($2270.27 per unit payable on a unit
by unit basis upon issuance of a building
permit for the applicable unit)
$74,000 ($1,000 per unit payable on a unit
by unit basis upon issuance of building
permit for the applicable unit)
$150,000 ($2027.02 per unit payable on a unit
by unit basis upon issuance of building
permit for the applicable unit)
84600 003-1 086358v0. 1
EXHIBIT "E"
PROJECT MAP
Exhibit "E"-1
Page 25
18 Months
30 Months
84600.003-1086358v0.1
EXHIBIT "F"
PROJECT MILESTONES
Site demolition and remedial grading complete
Recording of Final Tract Map
Exhibit "F" -1
Page 26
DATE:
TO:
FROM:
SUBJECT:
ATTACHMENT E
COMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM
January 7, 2014
The Honorable City Council
Jose E. Pulido, City Manager/}"
Via: Mark Persico, AICP, Coyi'frnunity Develop92Znt Director
By: Geoffrey Starns, AICP, Planning Manage~
Adam Gulick, Associate Planner
Peter Sun, Management Analyst
PUBLIC HEARING: CONSIDERATION OF THE OLSON COMPANY
PROJECT (FILE NO. 130000091), WHICH INCLUDES A REQUEST FOR
A GENERAL PLAN AMENDMENT TO AMEND THE GENERAL PLAN
LAND USE DESIGNATION FROM INDUSTRIAL TO MEDIUM DENSITY
RESIDENTIAL; CREATING AN !NFILL COMMUNITY (IC) OVERLAY
ZONING DISTRICT; ZONE CHANGE FROM M-2 TO R-2-IC;
TENTATIVE TRACT MAP, CONDITIONAL USE PERMIT, SITE PLAN
REVIEW TO CONSTRUCT A 74-UNIT SINGLE-FAMILY ATTACHED
AND DETACHED RESIDENTIAL PROJECT WITH ASSOCIATED ON·
SITE RECREATIONAL AMENITIES (FILE NO. 130000091); AND A
DEVELOPMENT AGREEMENT FOR THE PROJECT, LOCATED AT
9250 LOWER AZUSA ROAD (APNS: 8592-005-003 AND 8592-005-004)
RECOMMENDATION:
The City Council is requested to:
a) Hold a Public Hearing to consider the project;
b) Adopt Resolution No. 14-4959 (Attachment "A") approving the Mitigated Negative
Declaration, Initial Study, and Mitigation Monitoring and Reporting Program;
c) Adopt Resolution No. 14-4961 (Attachment "B") approving a General Plan
Amendment to change the land Use Designation from Industrial to Medium
Density Residential;
d) Introduce Ordinance No. 14-981 (Attachment "C") for first reading by title only,
creating the lnfill Community (IC) Overlay Zoning District, and waive further
reading;
City Council
January 7, 2014
Page 2 of 8
e) Introduce Ordinance No. 14-988 (Attachment "D") for first reading by title only,
changing the zoning on the project site from the Heavy Manufacturing (M-2)
Zoning District to the R-2 Zoning District and the lnfill Community (IC) Overlay
Zoning District, and waive further reading;
f) Adopt Resolution No. 14-4962 (Attachment "E") approving the Tentative Tract
Map, Conditional Use Permit, and Site Plan Review to construct 74 residential
units;
g) Introduce Ordinance No. 14-989 (Attachment "F") approving a Development
Agreement (Attachment "G") between the City and the project applicant, Land
Opportunities, LLC; and
h) Schedule the second reading of Ordinances No. 14-981, 14-988, and 14-989 for
January 21, 2013.
BACKGROUND:
1. On July 1, 2013, the applicant submitted the application for File No. 130000091, a
74 unit single-family attached and detached residential project located at 9250
Lower Azusa Road.
2. On September 6, 2013, the tentative maps prepared for the project were distributed
to City Land Development/Engineering Division and other relevant public and
private agencies for review and comments.
3. On November 15, 2013, the application was deemed complete.
4. On November 18, 2013, the Notice of Intent to adopt the Mitigated Negative
Declaration was published in the Temple City Tribune.
5. On November 19, 2013, the Notice of Intent to adopt the Mitigated Negative
Declaration was posted at the Los Angeles County Clerk Office.
6. On November 20, 2013, the comment period for the Initial Study and Mitigated
Negative Declaration (Attachment "H") began and it ended on December 1 D, 2013.
7. On November 26, 2013, notice of the December 10, 2013 Planning Commission
public hearing was provided to property owners within 300 feet of the property as
shown on the latest equalized assessment roiL Due to an error in the notice, a
revised notice was mailed on December 3, 2013.
8. On November 28, 2013, notice of the December 10, 2013 Planning Commission
City Council
January 7, 2014
Page 3 of 8
public hearing on was published in the Temple City Tribune. Due to an error in the
notice, a revised notice was published on December 5, 2013.
9. On December 10, 2013 the public review period for the Initial Study and Mitigated
Negative Declaration ended. The Planning Commission conducted a noticed
public hearing to review the project. The Planning Commission voted in favor of the
project and made the recommendation to the City Council to approve File No.
130000091 and Ordinance No. 14-981.
10. On December 19, 2013, the notice of the City Council public hearing on January 7,
2014 was published in the Temple City Tribune.
11. On December 20,2013, the notice of the City Council public hearing on January 7,
2014 was mailed to property owners within 500 feet of the property as shown on
the latest equalized assessment roll. Mailing of the notice for the public hearing
satisfied the noticing requirements set forth in Government Code Sections 65090
and 65091.
ANALYSIS:
The Olson Land Opportunities, LLC (applicant) is proposing a 74-unit single-family
attached and detached residential project at 9250 Lower Azusa Road. The project
entails the approval of seven different planning applications: a General Plan
Amendment; creation of an Overlay Zoning District; a Zone Change; a Tentative Tract
Map; a Conditional Use Permit; a Site Plan Review; and a Development Agreement.
The project proposes to subdivide two parcels to create 74 single-family lots with
common ownership of streets and recreational areas. The subdivision is proposed at an
R-2 density (12 dwelling units/acre of the net developable lot size). The property is
currently zoned for Industrial uses and requires a Zone Change and General Plan
Amendment to allow the residential use.
The project is located at the southern most portion of the City on Lower Azusa Road
between the Eaton Wash and the Union Pacific Railroad. The site is zoned M-2 and is
located in an area surrounded by both industrial and single-family residential
development. The most recent business to occupy the project site was United Lumber,
an old lumber mill, which ceased operations in 2009. The project site is large but has
numerous constraints, including the site dimensions and adjacent uses. Due to the
physical site constraints, inquiries to develop the site for industrial uses and public storage
have never developed to the point where an application has been submitted. The
proposed project would improve the site and provide the City with creatively designed
housing at prices that are affordable to homebuyers.
The Planning Commission Staff Report (Attachment "I") provides a detailed analysis of
City Council
January 7, 2014
Page 4 of 8
the project including site planning, architecture, engineering, and zoning requirements. In
addition, the major issues for the project are analyzed below:
General Plan Amendment
The current land use designation of the project site is Industrial and does not permit the
development of residential uses. A General Plan Amendment is required to permit the
proposed project. The proposed project would change the land use designation of the
project site from Industrial to Medium Density Residential. This change would allow the
project to be consistent with the City's General Plan.
Zone Change & lnfill Community (IC) Overlay Zoning District
The project is designed to be at a density that meets the requirements of the R-2 Zoning
District. However, due to the sites physical constraints, the project is unable to meet all
the requirements of the R-2 Zoning District. Rather than go through a variance process
to address the zoning requirements, staff is proposing the creation of an lnfill
Community (IC) overlay zoning district that provides flexibility on sites with physical
constraints.
The IC overlay zoning district establishes standards of development designed to permit
medium and high density development but allows some flexibility to design guidelines
and development standards including floor area ratio, height limits, open space, or
parking, etc. The IC overlay district is intended for physically constrained sites that are
not part of an existing residential neighborhood, so Ordinance No. 14-981 also
establishes applicability standards to ensure the IC overlay zoning district is not used to
evade development standards in existing residential neighborhoods. In addition, except
as provided by the development standards of the IC overlay zoning District, projects
must comply with standards of the underlying zoning district.
As discussed further in the subsection "Planning Commission Discussion", a comment
was received from a property owner in the manufacturing area across the Eaton Wash
during the public comment period of the December 101h Planning Commission hearing.
The comment raised questions about the compatibility of the project and existing
industrial uses.
The City Council is requested to adopt proposed Ordinance No. 14-988 which makes
the physical zone change for the site from the Heavy Industrial (M-2) Zoning District to
the R-2 Zoning District and the lnfill Community (IC) Overlay Zoning District.
Project Design
The project was creatively designed to work within the physical constraints of the site.
The project concept is based on clusters of homes. To provide a variety of housing
City Council
January 7, 2014
Page 5 of 8
styles and types, a variety of plan types and architectural elevations are utilized. In
addition, each individual block contains a mix of attached and detached units, providing
architectural interest and variation.
The proposed project is designed as a gated community with a combination of wrought-
iron fencing and concrete block walls to shelter the community from the adjacent Eaton
Wash and Union Pacific Railroad. The project is divided into 15 blocks in three different
block arrangements. Each block has either 5 or 6 units. Every fourth block has 5 units
with a pocket park. The community has one main road with access driveways off of the
main road. Each unit has independent vehicular access to a garage and pedestrian
access to the main entrance. Two parking spaces within a garage is provided per unit
and a total of 70 guest spaces are provided as parallel parking along the main street.
The proposed lots range from 1,400 square feet to 2,365 square feet. The units are all
two stories and range from 1,410 square feet to 2,168 square feet of living space. Five
model floor plans are used and adapted to create assorted unit design. The units are
designed to resemble "California Spanish" style of architecture, and utilize design
elements and articulation to add visual interest at a pedestrian scale. Eight matching
earth tone color schemes are also planned to accentuate single-family character.
The proposed project also has amenities and infrastructure throughout the site. Three
pocket parks are provided throughout the project site and open space is provided at the
entrance. The pocket parks provide for different types of experiences, both passive and
active, to give residents a variety of recreational opportunities. Four fire hydrants are
provided equidistant on the main street, and catch basins are located throughout the site
to treat stormwater runoff prior to draining into the Eaton Wash. The sewer system for
the project connects to a mainline on Temple City Boulevard, via the Union Pacific
Railroad right-of-way.
Development Agreement
A Development Agreement (Agreement) has been drafted as a contract between the
applicant and the City to specify the standards and conditions that will govern
development of the property. The Agreement benefits both the City and applicant in
that it protects the project's entitlement and applicant investment and also includes
conditions required by the City.
The Agreement includes development impact fees (Exhibit "D") imposed by the City
including an affordable housing fee of $157,000; a park fee of $168,000; $200,000 for
public art which is comprised of a public art fee of $150,000 and an in-kind art
installation on the proposed sound wall valued up to $50,000; and a sewer
reconstruction fee of $74,000. The total value of the agreement is $599,000. The
Agreement also clarifies terms of entitlement and contract termination and extension,
which sets the targeted date of Final Tract Map recordation at 30 months following the
effective date. The City Council is requested to adopt Ordinance No. 14-989 in order to
City Council
January 7, 2014
Page 6 of 8
approve the Draft Development Agreement.
Environmental Assessment
Consistent with the requirements of the California Environmental Quality Act (CEQA),
the City has prepared an Initial Study and Mitigated Negative Declaration (MND) for the
proposed development. Staff has determined that this project has "less than significant"
environmental impacts with mitigation measures incorporated.
The Initial Study identified several areas with potential impacts in the Draft MND. They
are: Air Quality; Greenhouse Gas Emissions, Cultural Resources, Hazards &
Hazardous Materials, Geology & Soils, Hydrology & Water Quality, Noise, and Traffic.
Those impacts are addressed through mitigation measures that occur throughout the
the planning and construction of the project. Detailed analysis of the various mitigation
measures are contained in the attached MND
The review period for the Initial Study and Draft MND began on November 20, 2013 and
ended on December 10, 2013. Staff received one comment letter from South Coast Air
Quality Management District (SCAQMD). Those comments are addressed in the
Response to Comments that are incorporated into the Final MND.
The Planning Commission reviewed the MND and the proposed mitigation measures
and found that there is no substantial evidence that the project will have a significant
effect upon the environment with the mitigation measures incorporated, and therefore,
recommended that the City Council adopt the Mitigated Negative Declaration and
Mitigation Monitoring and Reporting Program (MMRP) (Attachment "J").
Planning Commission Discussion
At the Planning Commission Meeting of December 10, 2013, the Planning Commission
raised several issues and subsequently recommended approval of the project with the
condition that the City Council staff report explains the concerns that were brought up
during the public hearing. Of the issues and questions that were mentioned during the
Planning Commission meeting on December 10, 2013, the most frequent of the topics
surround site access, circulation, and traffic impact.
Because of the project density, the Commissioners agreed that the project would benefit
from a second exit and entrance off of Temple City Boulevard. When asked about
exploring the option of expanding the project to connect with Temple City Boulevard, the
applicant disclosed that the property at the east end of the project (APN 8592-005-005,
8592-005-006, 8592-005-007) is owned by different owner and that they had looked into
acquiring the parcel, but that the owner was not interested in selling it to the Olson
Company. Staff further clarified that the property is located within the City of El Monte
and that owner of the other property has plans to use it as a private bus storage facility.
City Council
January 7, 2014
Page 7 of 8
The Fire Department has approved the project plans and made no requirement for a
second exit and entrance. While a connection to Temple City Boulevard would improve
site access, it is not currently feasible to create such a connection.
There was also a suggestion to cover over the Eaton Wash as an option to improve site
access and circulation by making a connection to Gidley Street This option was not
considered or evaluated as part of the MND. In addition, the project would require
approvals and permits from the Army Corp of Engineers and the Los Angeles County
Flood Control District This option would dramatically complicate the project planning
and permitting phase and increase the project budget
Many concerns were also raised over the traffic that would be generated at the entrance
to the project on Lower Azusa Road. There was discussion over how the trips
generation counts were derived since they seemed low. Trip generation rate are based
on standard calculation methods from the Institute of Transportation Engineers (ITE).
The projected 430 daily trips, including 33 vehicles per hour during the AM peak hour
and 39 vehicles per hour during the PM peak hour, are consistent with similar sized
projects of this type. Additional concerns were raised over the sight lines exiting the
community due to the higher grading at the Eaton Wash. This issue was analyzed in
the project's Traffic Impact Study (TIS) which showed an adequate line-of-sight to have
safe turning movement in and out of the site. In addition, staff observed that the
entrance for the proposed project is located at the highest elevation point on Lower
Azusa Road and confirmed the Traffic Study's conclusion that there are adequate sight
lines.
Commissioners also recommended more conditions for the City to enforce potential
traffic mitigation measures from the developer should they become necessary in the
future. The potential measures include a two-way turn lane on Lower Azusa Road and
a traffic signal. However, the TIS shows no justification for utilizing a two-way turn lane
and/or traffic signal at the entrance. Therefore, based on State Law and applicable
case law, staff cannot include open-ended or unjustifiable conditions on the project
Finally, a notable concern raised by the public during the Planning Commission meeting
regarded the perceived incompatibility of the residential project to existing industrial
uses across the Eaton Wash. Staff has considered the potential impacts to existing
uses and potential of future development within the industrial area and concluded that
the project would have little to no impact on primary uses which are by-right within the
M-2 zone. All future uses and development within the industrial area are subject to
development standards contained within the Zoning Code which are not changed by
this project
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January 7, 2014
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CONCLUSION:
Given that the project site has remained vacant in the past four years and previous
plans to use the site for public storage were unsuccessful, the proposed project is
creatively designed to take into account the physical constraints of the site. It has a
high quality architectural variety which is complemented by its landscape architecture.
In addition, the onsite amenities provide a variety of opportunities for residents. The
Development Agreement also requires the applicant to contribute $549,000 to the City
for affordable housing, parks and public art, which will allow the city to provide greater
services to our residents.
After careful consideration, the Planning Commission determined that the overall
improvement to the property and benefit to the community outweighs the concerns and,
therefore, recommended approval of the project.
FISCAL IMPACT:
As part of the approval of the Development Agreement, the applicant will contribute to
the City budget $157,000 for affordable housing, $168,000 for park development,
$150,000 for public art and $74,000 for sewer reconstruction totaling $549,000 in the
form of impact fees.
ATTACHMENTS:
A. Resolution No. 14-4959
B. Resolution No. 14-4961
C. Ordinance No. 14-981
D. Ordinance No. 14-988
E. Resolution No. 14-4962
F. Ordinance No. 14-989
G. Development Agreement
H. Initial Study and Draft Mitigated Negative Declaration
I. Planning Commission Staff Report
J. Mitigation Monitoring and Reporting Program
K. Project Plans