SR - ORD-02-14 - EXTENSION TIME LIMITS�pPOR�_
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AGENDA ITEM
May 13, 2014
ReviewedNerified B
City Manager
Finance Dire for
To Be Presented By:
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TO: Honorable Mayor and
Members of the City Council
THRU: John W. Sibley
City Manager
FROM: Wayne Winthers
City Attorney
Rick Otto ��./
Interim Co unity Development Director
1. SUBJECT
Adoption of Ordinance 2 -14 amending OMC Section 17.08.060 extending land use entitlements
beyond the current Zoning Code time limits.
2. SUMMARY
Due to challenging economic conditions, in 2009 the City Council adopted Ordinance 19 -09
which provided for the ability of an applicant to receive an extension of land use entitlements for
up to three years. With Ordinance 19 -09 expiring on January 1, 2013, extension to entitlements
reverted back to a maximum of one year. As the economy is still not on solid footing, applicants
and developers may still be encountering land use entitlements that could expire prior to the
projects being able to move ahead. This ordinance would amend the Zoning Code to again
allow for additional time extensions.
3. RECOMMENDED ACTION
Approve First Reading of Ordinance No. 2 -14.
4. FISCAL IMPACT
This action should have a neutral to potentially positive fiscal impact.
5. STRATEGIC PLAN GOAL(S)
2. Be a fiscally healthy community
ITEM 2. a 5/13/14
6. GENERAL PLAN IMPLEMENTATION
Not Applicable
7. DISCUSSION and BACKGROUND
Currently, most of our land use entitlements are valid for two years. Within this time the
applicant /developer should secure a building permit (if required) and commence construction, or
in the case of an entitlement that is solely use related, begin the business. The City's Zoning
Code does provide for a one year extension, with such extension request being heard and acted
upon by the original approval body.
During the most recent recession, our applicants and developers with approved land use
entitlements were experiencing difficulty securing construction and operations financing,
completing construction drawings, and being in position to start construction within that three
year window. In 2009, in recognition of this, the City Council adopted Ordinance 19 -09,
providing for the ability of an applicant to receive an extension of land use entitlements for up to
three years. Ordinance 19 -09 expired on January 1, 2013 with the ability to extend entitlements
reverting back to a one year extension. Although the economy has improved, the difficulties
seen in 2009 still exist. City staff is concerned some of the projects which have obtained land
use entitlements including Design Review, Site Plan Review, Conditional Use Permit, etc. may
still be unable to move to completion of the next stage of development without having to re-
apply and go back through the entitlement process. As such, Staff is concerned that the
applicants might choose to forego the extension request knowing that it only grants them one
additional year of entitlement.
In an effort to be pro- active and encourage the completion of projects that have received land
use entitlements, Ordinance 2 -14 would once again provide for up to a three year extension.
This ordinance would sunset on December 31, 2016.
8. ATTACHMENTS
Ordinance 02 -14.
ITEM 5/13/14
ORDINANCE NO. 2-14
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING SECTION 17.08.060
OF THE ORANGE MUNICIPAL CODE RELATING
TO EXTENSIONS TO LAND USE ENTITLEMENTS
EXPIRATION DATES.
WHEREAS, the Orange Municipal Code contains provisions concerning the expiration
of conditional use permits, variances, site plans, etc. (hereafter, "entitlements "), which have been
granted but not constructed or utilized by the holder of the entitlement; and
WHEREAS, due to current economic conditions numerous parties holding entitlements
have delayed development and several risk having their entitlements lapse due to the lack of any
construction or use of the land use entitlement; and
WHEREAS, the City Council recognizes that current economic conditions may make it
difficult for some parties to obtain financing to construct development or to make such
development financially feasible; and
WHEREAS, the City Council previously adopted Ordinance 19 -09 on December 8,
2009, providing for the ability of an applicant to receive an extension of land use entitlements for
up to three years with this ability expiring and reverting back to a one year extension on January
1, 2013; and
WHEREAS, the City Council desires to further extend the potential duration of
entitlements to assist parties during these difficult economic conditions, to help parties avoid the
potential cost of having to go back through the process to renew entitlements previously
approved; and to have development that is essentially ready to build once economic conditions
improve to a degree that development becomes financially feasible.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES
ORDAIN AS FOLLOWS:
SECTION I
Section 17.08.060 of the Orange Municipal Code is amended to provide as follows:
"17.08.060 Time Extensions.
A. The body granting final approval for a land use entitlement, an extension of which is
subject to this section, may extend the period upon which to commence use or construction of
the land use entitlement by a period of up to three years. The person seeking such an extension
must submit a written request to the Community Development Director in a form acceptable to
the Community Development Director. The written request should be submitted at least 45 days
prior to the expiration date and at a minimum shall explain the extenuating circumstances that