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Home My Public Portal About2023.109 (9-19-2023)RESOLUTION NO.2023.109 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA, APPROVING OPERATING COVENANT AND COVENANT AND RESTRICTIVE COVENANTS (ECONOMIC DEVELOPMENT INCENTATIVE AGREEMENT) PURSUANT TO GOVERNMENT CODE SECTION 53083 BY AND BETWEEN THE CITY OF LYNWOOD AND LYNWOOD SPRINGS, LLC WHEREAS, Lynwood Springs, LLC ("Developer") is the owner of certain real property located at 11700 Long Beach Boulevard, Lynwood, County of Los Angeles, State of California and more particularly described in Exhibit "A" attached hereto (the "Property') (the "Property"); WHEREAS, Developer intends to develop and construct an approximately 36,974 square foot Northgate Market consisting of approximately 205 parking stalls and related improvements, which was previously approved by the City under Conditional Use Permit No. 2019-01, Parcel Map No. 2019-01, and Mitigated Negative Declaration No. 2019-01 ("Project"); WHEREAS, the Project is anticipated to serve the residents of the City and neighboring cities by providing vital access to food such as fresh vegetables, meat, milk and other nutritious foods to an area that has been identified as a food desert by the USDA; WHEREAS, the Project will redevelop an underutilized, blighted site and remediate existing site contamination and will create an estimated 130 full-time and 80 part-time jobs and generate additional property and sales taxes for the City and associated taxing entities that may be used for vital public services, infrastructure, and educational purposes; WHEREAS, the State Legislature passed Assembly Bill 562 on October 13, 2013, which went into effect on January 1, 2014, adding Section 53083 to the Califomia Govemment Code, which allows cities to encourage employment and retain jobs and businesses by providing economic assistance to businesses and making available to the public an economic subsidy report, hold hearings, and provide further reports at specified intervals before approving economic assistance greater than $100,000; WHEREAS, to encourage Developer to establish the Northgate Market in the City it is necessary to provide economic assistance to Developer pursuant to Califomia Govemment Code Section 53083; WHEREAS, in exchange for providing Developer with economic assistance the City desires to impose certain operating covenant and restrictive covenants on Developer and its use of the Property (the "Covenants"); WHEREAS, the City and Developer desire to enter into an Agreement Re Operating Covenant and Restrictive Covenants (the "Agreement") that would provide economic assistance in accordance with Government Code Section 53083 to assist in the development of a Northgate Market and retention of same in the City during the term of the Agreement; WHEREAS, Developer has agreed to the Covenants and to maintain the Northgate Market operations at the Property in exchange for the economic assistance; WHEREAS, the Covenants shall become effective only if terms and conditions set forth in the Agreement as a condition are satisfied; WHEREAS, in accordance with Government Code Section 53083, prior to approving any economic assistance to Developer, the City shall provide the following information in written form and shall provide public notice and a hearing regarding the economic development subsidy: (1) The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable. (2) The start and end dates and schedule, if applicable, for the economic development subsidy. (3) A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy. (4) A statement of the public purposes for the economic development subsidy. (5) Projected tax revenue to the local agency as a result of the economic development subsidy. (6) Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions. WHEREAS, the report required under Government Code Section 53083 was prepared and made available to the public on September 7, 2023 and presented to the City Council on September 19, 2023 ("53083 Report"); WHEREAS, a public hearing regarding the economic development subsidy was duly noticed pursuant to Government Code Section 53083 and held on September 19, 2023. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES RESOLVE AS FOLLOWS: SECTION 5. The City Council finds and determines that approval of this Agreement is exempt from the provisions of the Califomia Environmental Quality Act ("CEQA") pursuant to the following: CEQA Guidelines Section 15601(b)(3) under the common sense exemption, which only applies to projects that have the potential for causing a significant effect on the environment and it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment. In addition, the approval of this Agreement is not a "project" as that term is defined by CEQA Guidelines § 15378, because this Agreement relates to (i) an organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment and (ii) creates a govemment funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The City Council further finds that none of the exceptions to the exemptions under CEQA Guidelines Section 15300.2 apply. SECTION 6. If any part of this Resolution or its application is held to be invalid, the remainder of the Resolution shall not be affected and shall continue in full force and effect. SECTION 7. The City Clerk shall attest and certify to the passage and adoption of this resolution, and it shall become effective immediately upon its approval. ADOPTED AND APPROVED this 19th day of September 2023. Oscar Flores, Mayor ATTEST: Maria Quirionez, City Clerk APPROVED AS TO FORM: Noel Tapia, City Attorney SECTION 1. The City Council hereby finds and determines that the foregoing recitals are true and correct and constitute a material part of this Resolution, and therefore incorporate them herein in their entirety as part of the findings. SECTION 2. The City Council, after consideration of the staff presentation, reports, discussions, oral testimony and evidence presented, further finds and determines as follows: Notwithstanding any provision set forth in the Agreement, the City's approval and execution of the Agreement shall not constitute a prejudgment or pre - commitment by the City with respect to any future discretionary City permits and approvals that may be required for any potential future improvements to the Property, which as of the date of the Agreement, are not fully known by the Parties, and as such, the City reserves its full and unfettered discretion with respect thereto to the same extent it would have such discretion in the absence of the Agreement; ii. Subject to the foregoing, the City recognizes that the economic subsidy provided to Developer under the Agreement in exchange for the Covenants is necessary in order for Developer to develop a Northgate Market in the City and be commercially competitive; Project's value to the City is the development of a grocery store on an underutilized, blighted site and remediation of contaminated property that will create an estimated 130 full-time and 80 part-time jobs and generate new tax revenue for the City and associated taxing entities for vital public services, infrastructure, and educational purposes and serve the residents of the City by making available a variety of food such as fresh vegetables, meat, milk and other nutritious foods to an area that has been identified as a food desert by the USDA; iv. The imposition of the Covenants upon the Property pursuant to the Agreement in exchange for the covenants consideration to be paid by the City constitutes a valid public purpose, including but not limited to furtherance of economic development as expressly permitted by state law and is consistent with the goals and policies of the City's General Plan; and v. The 53083 Report is hereby incorporated herein as part of the findings. SECTION 3. Based on the findings set forth in this Resolution, the City Council hereby authorizes and approves that certain "Agreement Re Operating Covenant and Restrictive Covenants," (the "Agreement") in substantially the same form as attached to the staff report presented concurrently with this Resolution. SECTION 4. The City Council hereby authorizes the City Manager, or his/her designee, to execute the Agreement and all ancillary documents reasonably necessary to carry out and effectuate the intent of this Resolution on behalf of the City. aria Quinonez, City Clerk STATE OF CALIFORNIA ) )§ COUNTY OF LOS ANGELES ) I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a meeting held on the 19th day of September 2023. AYES: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA, SOLACHE, MAYOR PRO TEM SOTO AND MAYOR FLORES NOES: NONE ABSENT: NONE ABSTAIN: NONE Date: Maria Quinonez, City Clerk 0743 STATE OF CALIFORNIA )§ COUNTY OF LOS ANGELES ) 1, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. 2023.109 on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 19th day of September 2023. Date: