SR - AGR-6402 - PRE-DEVELOPMENT AGREEMENT TRAILS AT SANTIAGO CREEK1. SUBJECT
Pre - Development Agreement between the City of Orange ( "City ") and Milan REI X relating to a
109 -acre site known as the Trails at Santiago Creek.
2. SUMMARY
Milan REI X intends to submit a land use entitlement application for the 109 -acre site known as
the Trails at Santiago Creek. The primary purposes of the Pre - Development Agreement are
twofold: (1) to establish a framework of guidelines and procedures for the processing of
requested land use entitlements for the proposed Project; and (2) to identify a range of potential
Project Alternatives to be considered. In consideration for this Pre - Development Agreement, the
Developer has agreed to provide certain Public Benefits. The agreement does not limit the City
Council's discretion to either approve or deny future requested approvals for the proposed
development.
3. RECOMMENDED ACTION
Authorize the Mayor and City Clerk to execute the Pre - Development Agreement between the
City of Orange and Milan REI X.
4. FISCAL IMPACT
There will be no fiscal impact to the City.
5. STRATEGIC PLAN GOAL(S)
3. Enhance and promote quality of life in the community:
c. Support and enhance attractive, diverse living environments.
e. Develop and strengthen collaborative partnerships to enhance and promote quality of life
programs, projects, and services.
1 6. DISCUSSION and BACKGROUND
BACKGROUND
Over the past two decades, there have been various attempts to process land use entitlement
applications for the 109 -acre site located north of Santiago Canyon Road, south of Mabury
Ranch, east of Cannon Street and west of The Reserve. A portion of the site includes Santiago
Creek. The site, previously referred as "Sully Miller" or "Rio Santiago ", has been utilized for a
sand and gravel operation for many years. The current property owner, Milan REI X
( "Developer ") intends to submit a new land use entitlement application for the site for a project
to be known as the Trails at Santiago Creek ( "Project ").
DISCUSSION
For the past 16 months, the Developer has conducted extensive outreach with representatives of
many of the adjacent neighborhoods in an attempt to determine community priorities for the
future of the site, including Orange Park Association, Mabury Ranch Homeowners Association,
and The Reserve Homeowners Association. In . addition, a City Council Ad Hoc Committee
comprised of Mayor Pro Tern Murphy and Council Member Nichols has met with community
members to facilitate discussions related to the future of the site.
As a result of the community input, the Developer has identified a range of alternatives for the
109 -acre site that could include residential development on 25 to 50 acres of the Project. The
remainder of the site could include alternatives for open space, trails, and equestrian, community
and recreation uses. The Project, including the proposed number of residential units, lot sizes,
amount of open space and project amenities will be further defined through the environmental
review and entitlement process.
As part of this pre - planning effort, City staff and the Developer's representatives have worked
together to establish a framework for an appropriate land use entitlement process for the Project.
To formalize and ensure transparency for the entitlement process, the City and the Developer are
interested in entering into the attached Pre - Development Agreement which sets out some general
parameters and alternatives to guide the processing of various requested land use approvals
required for the Project. The relative merits of the Project will be fully addressed and judged by
staff, the public, the Planning Commission and the City Council during and upon completion of
the CEQA process.
A typical development agreement contains conditions associated with the discretionary
entitlements for a developer to build a project. Development agreements generally provide for a
wide range of public benefits than those that might otherwise be obtained. However, this
agreement does not rise to the level of a development agreement, but is designed to accomplish
some development agreement goals, i.e., establishing parameters for future processing,
efficiency and public benefits beyond which might otherwise be obtainable, while not providing
the developer with any entitlements or vesting rights. The agreement does not bind the City
Council to any particular course of action and the City Council retains its full and complete
discretion to approve, deny or request modifications when the Project is considered for a final
decision.
ITEM # 2 10/11/16
The major provisions of the Pre - development Agreement are as follows:
• Proposed alternatives for the Project on approximately 109 acres with a range of 25 to 50
acres available for residential units, and includes alternatives which takes into
consideration open space, trails, equestrian, community and recreational uses.
• An obligation of the Developer to submit for land use entitlement approvals that include a
Development Plan, CEQA compliance, Zoning /General Plan Amendment, Vesting
Tentative Map and a Development Agreement.
• Continue with the cessation of the operation of the sand and gravel operation during the
processing of the Project consistent with the June 12, 2015 memorandum submitted by
the Developer (attached within the Pre - development Agreement) and the interim
remediation of the property which will result in the lowering of the existing sand and
gravel material stockpiles on the Project site.
• Cooperation between Developer and City for the evaluation of easements and the
possible extension of the Santiago Creek Trail to the north side of the Project site.
• A maximum term of five years.
Based on community input, in September 2015 the Developer temporarily ceased the sand and
gravel operations as well as improved the aesthetics of the perimeter of the site. This good faith
effort has led to positive community feedback and has helped with the Developer's outreach
efforts. To further with their good faith effort, as a component of this Pre - development
Agreement the Developer is committing to lower the material stockpiles on the site. This
significant Public Benefit is being provided by the Developer in advance of obtaining any land
use approvals. Per the agreement, the Developer will have 90 days to prepare and submit to the
City a stockpile reduction plan ( "Interim Remediation Plan "). The agreement allows the
Developer to discontinue the Interim Remediation Plan should they withdraw their land use
entitlement application.
CONCLUSION
The proposed Pre - development Agreement will provide the Developer with certainty as to the
land use entitlement process in exchange for certain Public Benefits that have been agreed to in
response to community input. The Pre - development Agreement also provides for a high level of
transparency to the community related to the consideration of Project Alternatives. The
agreement does not limit the City Council's discretion to either approve or deny future requested
approvals for the proposed development and subject to full compliance with CEQA.
7. ATTACHMENTS
• Pre - Development Agreement
ITEM # 3 10/11/16
CITY COUNCIL MINUTES OCTOBER 11, 2016
7. ADMINISTRATIVE REPORTS
7.1 Financial status update for Fiscal Years 2016 and 2017. (C2500.J.1.1)
Finance Director Will Kolbow presented the staff report; and provided detailed information
regarding the PERS payments.
MOTION — Nichols
SECOND — Whitaker
AYES — Alvarez, Whitaker, Smith, Murphy, Nichols
Moved to receive and file.
7.2 Pre - Development Agreement between City of Orange and Milan REI X relating to a
109 acre site known as the Trails at Santiago Creek. (A2100.0; AGR 6402)
City Manager Rick Otto presented the staff report. Mr. Otto noted that staff is
recommending to change the word "securing" to "seeking" on Article 2, Section 2.03 (b)
of the agreement (top of page 6). In addition, a letter was submitted and distributed to
Council outlining concerns from the Homeowners Associations (HOA) of Orange Park,
Mabury Ranch, and the Reserve at Orange Park Acres.
Public Speakers:
Frank Elfend, applicant — spoke in favor of the project and the pre - development agreement,
and answered Council's questions.
Theresa Sears — spoke in favor of a pre - development agreement, however, has some
concerns addressed in the letter provided to Council.
Don Bradley, Orange Park Acres Association Vice President — spoke in favor of a pre -
development agreement; however the Orange Park Acres HOA Board has some issues with
the agreement as it is written.
Nick Lall, Mabury HOA — spoke in favor of a pre - development agreement; however, has
concerns addressed in the letter provided to Council.
Tom Davidson — spoke in favor of a pre - development agreement; however, has concerns
addressed in the letter provided to Council.
Stephanie Lesinski, Mabury HOA Vice President — spoke in favor of a pre- development
agreement; however, has concerns addressed in the letter provided to Council.
Addison Adams, The Reserve HOA President — spoke in favor of a pre - development
agreement; however, has concerns addressed in the letter provided to Council.
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CITY COUNCIL MINUTES OCTOBER 11, 2016
During discussion, City Attorney Winthers addressed each of the questions and concerns
discussed on page two of the letter submitted to Council by the HOA representatives.
• Staff recommends the following change be made, which was agreed upon by the
applicant: Article 1, Section 1.03 (a)(3) — change the wording in the entire section
to "Immediately upon delivery of written notice to terminate this agreement by
either party."
• Councilmember Whitaker suggested the following change for Article 2, Section
2.04 (a) — add a comma to the end of the last sentence after "Property" with the
additional wording "or City's right to enforce any and all laws and regulations
governing the operations on the Property;" which was agreed to by the applicant.
City Manager Otto then went over the first page of the letter. He clarified that there is an
issue with the acreage amounts which will need to be corrected in the future. In addition,
the HOA representatives requested that the "OPA/Mabury Ranch/The Reserve" labeling
on Alternative Maps B, C, and D be removed; and Alternative Map E be deleted. The
applicant agreed to these changes.
MOTION — Nichols
SECOND — Murphy
AYES — Alvarez, Whitaker, Smith, Murphy, Nichols
Moved to authorize the Mayor and City Clerk to execute the amended Pre - Development
Agreement between the City of Orange and Milan REI X with the agreed upon changes
made to Sections 1.03 (a)(3), 2.03 (b), and 2.04 (a); and changes to maps as follows:
• Article 1, Section 1.03 (a)(3) — change the wording in the entire section to
"Immediately upon delivery of written notice to terminate this agreement by either
party."
• Article 2, Section 2.03 (b) — change the word "securing" to "seeking" (top of page
six of the agreement).
• Article 2, Section 2.04 (a) — add a comma and additional wording "or City's right
to enforce any and all laws and regulations governing the operations on the
Property" to the end of the last sentence after "Property."
• Alternative Maps B, C, and D — remove label "OPA/Mabury Ranch/The Reserve"
from those maps.
• Alternative Map E — remove map from the agreement.
RECESS: The City Council recessed at 8:11 p.m. and reconvened at 8:20 p.m. with all Members
present.
8. REPORTS FROM CITY MANAGER — None
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