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HomeMy WebLinkAboutOrdinance #4027 ORDINANCE NO. 4027 - - ------AN ORDINANCE-OF-THE CITY OF HUNTINGTON BEACH ADOPTING THE FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF HUNTINGTON BEACH AND FREEWAY INDUSTRIAL PARK (PROPERTY OWNER) AND SARES-REGIS GROUP (DEVELOPER) (DEVELOPMENT AGREEMENT NO. 11-001) WHEREAS, the Planning Commission approved Site Plan Review No. 10-004 to develop an approximately 12-acre property located at 7441 Edinger Avenue (Property) with a mixed use project consisting of 487 apartment units, 10,000 square feet of commercial/retail uses, 4,500 square feet of office leasing area and 9,000 square feet of resident recreation area (Project) pursuant to the Beach and Edinger Corridors Specific Plan (BECSP); and The City Council adopted the Beach and Edinger Specific Plan in March, 2010; and The City Council adopted Ordinance No. 3916, An Ordinance of the City of Huntington Beach Adopting a Development Agreement By and Between The City of Huntington Beach and Freeway Industrial Park (Property Owner) and Sares-Regis Group (Developer), for the purpose of the mutually beneficial development of the Property, including the provision of affordable housing; and The City, Property Owner and Developer each mutually desire to amend the Development Agreement adopted pursuant to Ordinance No. 3916 to ensure that the Property is developed in accordance with the approved Site Plan Review No. 10-004 and Section 2.2.3 of the Beach and Edinger Corridors Specific Plan. NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. That the City Council hereby finds that the amendment to Development Agreement No. 11-001 conforms to Government Code Section 65864 et. seq. and that: a. Development Agreement No. 11-001, as amended, is consistent with the Huntington Beach General Plan and the applicable provisions of the BECSP; and b. Development Agreement No. 11-001, as amended, is consistent with Chapter 246 of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) and the Huntington Beach Municipal Code; and c. Development Agreement No. 11-001, as amended, will not be detrimental to the health, safety and general welfare, and will not adversely affect the orderly development of the property because it is consistent with applicable land use regulations of the BECSP, mitigation measures adopted for the Project in accordance with EIR No. 10-002, and conditions approved for Site Plan Review No. 10-004; and 1 14-4180/109753 Ordinance No. 4027 d. The City Council has considered the fiscal effect of the amendment to Development Agreement No. 11-001 on the City and the effect on the housing needs of the region in which the City is situated and has balanced these needs against the public service needs of its residents and available fiscal and environmental resources. SECTION 2. Based on the above findings, the City Council of the City of Huntington Beach hereby approves the First Amendment to Development Agreement No. 11-001 and adopts it by this ordinance pursuant to Government Code Section 65867.5. This action is subject to a referendum. SECTION 3. This ordinance shall take effect 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16 t hiay of June , 2014. Ma} r U . ATTEST: APPROVED AS TO FORM: 8 Y Ci lerk C ty Atto y Ir REVIE D AND APPROVED: INITIA ED AND APPROVED: CityMaJ#Jer Director of Planning and Building Exhibit A: First Amendment to Development Agreement No. 11-001 2 14-4180/109753 s This Document was electronically recorded by City of Huntington Beach Recorded in Official Records, Orange County RECORDING REQUESTED BY AND Hugh Nguyen, Clerk-Recorder WHEN RECORDED MAIL TO: IIIII I I II 1111111111111111111111111111111111111111111111111 IIINO FEE 2014000282366 09:56am 07/16/14 Cityof Huntington Beach 93 0 0.0Sec4 0.0 8 � o.00 o.00 o.00 0.00 21.00 0.00 0.00 0.00 2000 Main Street Huntington Beach, CA 92648 Attn: Director of Planning and Building SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT ("The First Amendment") is made in Orange County, California, as of MAy z� , 2014, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California(the "City") and Freeway Industrial Park, a California Corporation (the "Property Owner"), and Sares-Regis Group (the "Developer"). RECITALS A. The City is authorized pursuant to Government Code sections 65864 through 65869.5 and Huntington Beach Zoning and Subdivision Ordinance (HBZSO) Chapter 246 to enter into and modify binding development agreements with persons or entities owning legal interests in real property located within the City. B. The City, Property Owner and Developer have entered into that certain Development Agreement dated as of August 1, 2011 that was recorded in the Official Records of the Orange County Recorder's office on August 18, 2011, as Instrument No. 2011000408735 (the "Development Agreement"). All capitalized terms used in this First Amendment that are not defined herein shall have the same meanings ascribed to those terms in the Development Agreement. Among other things, the Development Agreement sets forth certain rights and obligations of the City, Property Owner and Developer with respect to the mutually beneficial development of the Property identified therein. NOW, THEREFORE, in consideration of the foregoing recitals which are hereby incorporated into the operative provisions of this First Amendment by this reference and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the City, Property Owner and the Developer agree that the Development Agreement shall be amended as follows: 1. The following definitions from Section 1 —Definitions shall be amended and read as follows: This document Is solely for the ofttcl hishim of the City of Huntington Beach,as oonteaVlated under euvwmient Code Sac.6103 and eh*A b s recorded free of charga. 1.3 "Affordable Rent" for Very Low Income households shall have the same meaning set forth in California Health and Safety Code section 50053, as more specifically set forth in the Agreement Containing Covenants Affecting Real Property to be attached to the Affordable Housing Agreement. "Affordable Rent" for Moderate Income households means rents which do not exceed the product of 30 percent times 120 percent of the area median income, adjusted for family size appropriate for the unit, as more specifically set forth in the Agreement Containing Covenants Affecting Real Property to be attached to the Affordable Housing Agreement. 1.14 "Moderate Income Household" means persons and families whose gross incomes do not exceed the Moderate Income Limits for the County of Orange ("County") as published annually by the Department of Housing and Community Development and determined in accordance with the U.S. Department of Housing and Community Development criteria then in effect and published from time to time. For purposes of this Agreement, the qualifying limits shall be those limits for the County, as set forth in Title 25, California Code of Regulations, section 6932, as that section may be amended, modified or recodified from time to time. If Title 25, California Code of Regulations, section 6932 is amended or modified during the term of this Agreement so that such regulations do not specify the Moderate Income limits for the County, the City and Developer shall negotiate in good faith to determine an equivalent authoritative source which determines the Moderate Income limits for the County. 1.22 "Very Low Income Household" shall mean persons and families whose gross incomes do not exceed the Very Low Income Limits for the County of Orange ("County") as published annually by the Department of Housing and Community Development and determined in accordance with the U.S. Department of Housing and Community Development criteria then in effect and published from time to time. For purposes of this Agreement, the qualifying limits shall be those limits for the County, as set forth in Title 25, California Code of Regulations, section 6932, as that section may be amended, modified or recodified from time to time. If Title 25, California Code of Regulations, section 6932 is amended or modified during the term of this Agreement so that such regulations do not specify the Very Low Income limits for the County, the City and Developer shall negotiate in good faith to determine an equivalent authoritative source which determines the Very Low Income limits for the County. 2. Section 1 — Affordability Covenants of Exhibit C ("Affordable Housing Agreement") shall be amended to read as follows: (a) Qualified Households. Covenantor agrees to make available, restrict occupancy to, and to lease 57 units for the duration of the Affordability Period as defined herein. These 57 units may sometimes be referred to as an "Affordable Unit" or, collectively, the "Affordable Units." Each Affordable Unit shall be occupied by Moderate or Very Low Income Households as those terms are defined in the Development Agreement adjusted for the actual number of persons Page 2 of 4 in the Household that will reside in the Affordable Unit. 10 Affordable Units shall only be occupied by Very Low-Income Households, and 47 Affordable Units shall only be occupied by Moderate-Income Households, adjusted for the actual number of persons in the Household that will reside in the Affordable Units. The Affordable Units will not be fixed in specific locations, but once final inspections have been issued for all 487 units in the Project, a minimum of 57 units will always be designated by the Covenantor as Affordable Units during the term of this Agreement. Of this total, at least 10 of the units will be designated as Very Low Income units. (d) Determination of Affordable Rent for the Affordable Units. The rent for each Affordable Unit (the "Affordable Rent") shall be adjusted annually by the following formula upon the publication of revised Orange County median income figures by the California Housing and Community Development Department: (i) The Affordable Rent amount for the Very Low-Income units shall not exceed thirty percent (30%) of 50 percent (50%) of the monthly area median income adjusted for the family size as set forth in California Health and Safety Code Section 50052.5(h); (ii) The Affordable Rent amount for the Moderate-Income units shall not exceed thirty percent (30%) of one-hundred twenty percent (120%) of the monthly area median income adjusted for the family size as set forth in California Health and Safety Code Section 50052.5(h). The income limits and Affordable Rents in effect as of the date of this Agreement are attached hereto as Exhibit "B" and incorporated herein by this reference. 3. Exhibit B ("Current Qualifying Income and Rent Schedule") to the Affordable Housing Agreement shall be replaced as set forth in and attached hereto as Exhibit "A" and incorporated herein by this reference. 4. Except as expressly set forth in this First Amendment, all of the terms and provisions set forth in the Development Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the City, Property Owner and the Developer hereto have each executed this First Amendment to the Development Agreement as of the date first written above. Developer: SARES-REGIS GROUP, a California general partnership and/or its assignees Print: James Ivory Its: Vice President Property Owner: Freeway Industrial Park, a California corporation rint: J.p.NggTE R_ '3 CT-Kows-kY 151c� AT-1AC4+1�P A Gfav�l( C�NC� Page 3 of 4 Its: -Fr-11F-7S i ITT City: City of Huntington Beach, a municipal corporation of the State of California Ma or ATTEST: APPROVED AS TO FORM: it Clerk Clh�dAttomeyt IEWE ) APPROVED: INITI ED AND APPROVED: City M g Director or Planning and Building Exhibit A: Exhibit B—Current Qualifying Income and Rent Schedule of the Affordable Housing Agreement (Exhibit C to the Development Agreement) Page 4 of 4 EXHIBIT B CURRENT QUALIFYING INCOME AND RENT SCHEDULE BOARDWALK APARTMENT PROJECT HUNTINGTON BEACH,CALIFORNIA I. 2014 Orange County Income Information Household Size HCD Median HUD Median 1 Person $61,050 2 Persons 69,750 3 Persons 78,500 4 Persons 87,200 87,200 5 Persons 94,200 6 Persons 101,150 7 Persons 108,150 8 Persons 115,100 II. Household Income Limits as Defined by the California Health&Safety Code Very-Low Income Moderate Income (Section 50105) (Section 50093) 1 Person $0 $33,750 $53,950 $73,250 2 Persons 0 38,550 61,650 - 83,700 3 Persons 0 43,350 69,350 94,200 4 Persons 0 - 48,150 77,050 - 104,650 5 Persons 0 - 52,050 83,250 - 113,000 6 Persons 0 55,900 89,400 121,400 7 Persons 0 - 59,750 95,550 - 129,750 8 Persons 0 63,600 101,750 138,150 III. Development Agreement Affordable Housing Cost Calculations Very-Low Income Moderate Income Studio 1-Bdrm 2-Bdrm Studio 1-Bdrm 2-Bdrm Section 50053 Benchmark Hhld Size 1 2 3 1 2 3 %of HCD Median Income 50% 50% 50% 120% 120% 120% Household Income for Rent Calculation' $30,525 $34,875 $39,250 $73,260 $83,700 $94,200 %of Income Allotted to Gross Rent 30% 30% 30% 30% 30% 30% Allowable Gross Rent $763 $872 $981 $1,832 $2,093 $2,355 (Less)Utilities Allowance 2 67 84 97 67 84 97 Allowable Net Rent $696 $788 $884 $1,765 $2,009 $2,258 i The Development Agreement imposes a rent calculation standard for Moderate Income Households at the top of the Moderate Income category. This calculation does not comport with the Section 50053 methodology,and therefore these units cannot be counted towards the fulfillment of Section 33413 inclusionary housing production requirements. 2 Based on utilities published by(OCHA 10/1/2013). Includes Gas:Cooking&Water Heater;Electric:Basic&Space Heating;-t�Water& Sewer aAcf t(,, 5k ServIco- Prepared by:Keyser Marston Associates,Inc. File name:Boa rdwalk_Inc_Aff_5_19_2014;Exh 6 DA_2014 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 State of California County of (J �� On 2- before me, -AL," ate Here Insert Name land Title of thi Officer personally appeared V 4 Mes -5 Name(s) o Signer(s) who proved to me on the basis of satisfactory evidence to be the person(; whose nameN isl-m& subscribed to the within instrument and acknowledged to me that he/slieA44ey executed the same in ALLISON HILL his/I;cr 4 eir- authorized capacity, and that by Commission 8 1999957, = his/her4#e+f- signature on the instrument the a K d Notary Public-California z z P_r. > person( ;, or the entity upon behalf of which the z Orange County person(N acted, executed the instrument. My Comm.Expire Dec 3.2016 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. Place Notary Seal Above Signature:,Au,)J� kt(A& Signature of Notary Public OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Doc ment Title or Type of Document: Document Date: Number of Pages: S Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: ❑ Corporate Officer—Title(s): ❑ Corporate Officer—Title(s): ❑ Partner— ❑ Limited ❑ General ❑ Partner— ❑ Limited ❑ General ❑ Individual ❑Attorney in Fact ❑ Individual ❑Attorney in Fact ❑Trustee ❑ Guardian or Conservator ❑Trustee ❑ Guardian or Conservator ❑Other: ❑ Other: Signer Is Representing: Signer Is Representing: 0 2013 National Notary Association • www.NationalNotary.org • 1-800-US NOTARY(1-800-876-6827) Item#5907 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189 State of CaliforniaPei ,�� -- {{ County of ()I�67t__ On S Z-a 1� before me, AUp— -H1 �, Kcpg` �Roau i , Date ,-r— Here Insert Name and Title oe the Officer personally personally appeared jkt,1 Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person whose name is/&e subscribed to the within instrument and acknowledged aI Moll HILL to me that ke/sheA*e L executed the same in ..•. 4i&/her/theif authorized capacity and that by _Y Commission a 1999857Z #isMerAke►r- signature'(s) on the instrument the Notary Public-Californinia z orange County ' personX or the entity upon behalf of which the My Comm.Ex ires Dec 3.2016+ 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 Place Notary Seal Above Si( nature: � 3M Signature of Notary Public OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached DocumentTom' Title or Type of Document: ff�L of),, ,.�I"� Aai'�r.r!nrT Document Date: Number of Pages:g �� Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: ❑ Corporate Officer—Title(s): ❑ Corporate Officer—Title(s): ❑ Partner— ❑ Limited ❑ General ❑ Partner— ❑ Limited ❑General ❑ Individual ❑Attorney in Fact ❑ Individual ❑Attorney in Fact ❑Trustee ❑ Guardian or Conservator ❑Trustee ❑ Guardian or Conservator ❑ Other: ❑ Other: Signer Is Representing: Signer Is Representing: ©2013 National Notary Association • www.NationalNotary.org • 1-800-US NOTARY(1-800-876-6827) Item #5907 ACKNOWLEDGMENT STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) On June 23, 2014, before me, P. L. Esparza, Notary Public, personally appeared Joan L. Flynn and Matthew M. Harper who proved to me on the basis of satisfactory evidence to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons 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. P", ` P. L.ESPARIA WITNESS m hand and official seal. Commission#E032750 y Notary Public-California Orange County M Comm.Expires Aug4,2017. (Seal) Notary igna re) Ord. No. 4027 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) ° I, JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a Regular meeting,thereof held on June 2, 2014, and was again read to said City Council at a Regular meeting thereof held on June 16, 2014, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Katapodis, Hardy, Harper, Boardman, Shaw, Carchio NOES: Sullivan ABSENT: None ABSTAIN: None I,Joan L.Flynn,CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on June 26,2014. In accordance with the City Charter of said City Joan L. Flynn, Qi1y Clerk Civ Clerk and ex-officio Clerk se for De u City Clerk of the City Council of the City of Huntington Beach, California