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HomeMy WebLinkAboutCity Council - 2000-39 RESOLUTION NO. 2000—39 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING A SETTLEMENT AGREEMENT AND MUTUAL GENERAL RELEASE WITH PLC, A CALIFORNIA GENERAL PARTNERSHIP REGARDING DEVELOPMENT AGREEMENT NO. 90-1, KNOWN AS THE HOLLY-SEACLIFF DEVELOPMENT AGREEMENT WHEREAS, effective December 5, 1990, the City of Huntington Beach, a municipal corporation ("City"), and Pacific Coast Homes, a California corporation, and Garfield Partners, a California corporation (collectively, "Developer") entered into Development Agreement No. 90- 1 ("Development Agreement") which was recorded in the Official Records of Orange County, California as Document No. 90-599766 on November 14, 1990; and The Development Agreement provides for the development of a residential and commercial development of approximately 545 acres of real property in the City (the "Project"). The development area is bounded generally by Central Park and Ellis Avenue on the north, Huntington and Main Streets on the east, Yorktown and Clay Avenues on the south, and the City of Huntington Beach boundary line on the west (the"Property"); and The Development Agreement provides, among other things, for the Developer to construct certain public facilities and to pay certain public facilities fees to the City. The Development Agreement further provides for the City to: (1) determine the cost of the public facilities required under the Development Agreement that are in excess of those required to service the Project("Reimbursable Costs"); (2)reimburse Developer for its verified Reimbursable Costs from funds generated by fees or exactions from other developments served by the excess capacity of the public facilities, and(3) to the extent lawful, establish new impact fee programs to apportion Reimbursable Costs to subsequent developers found to benefit from the public facilities; and sff/99reso/ple set agree/04/I 1/00 1 Res . No. 2000 - 39 Effective May 6, 1996, City consented to the sale of a portion of the Property from Developer to PLC, a California general partnership ("PLC"), and the remaining portion of the Property to MS Vickers, L.P., a Delaware limited partnership ("MS Vickers"); and As a condition of the transfer, PLC agreed to assume the Developer's obligation to install all the public facilities required under the Development Agreement; and City and PLC are in dispute (the "Dispute")regarding the amount of Reimbursable Costs the City is to cause to be paid to PLC in connection with police, sewer, storm drain, water,traffic and circulation facilities (the "Public Facilities")required to be constructed by the Developer; and An actual dispute having arisen and PLC having invoked the arbitration clause under Section 3.4 of the Development Agreement, PLC and City desire to settle and compromise any and all disputes, claims, differences, actions or causes of action, whether actual or potential, without admitting or conceding the truth of any allegations or assertions made in connection with the Dispute. NOW, THEREFORE, the City Council of the City of Huntington Beach hereby resolves as follows: SECTION 1. The Settlement Agreement and Mutual General Release ("Agreement") between the City of Huntington Beach and PLC, a California general partnership, is hereby approved and the Mayor is authorized to sign and the City Clerk is authorized to attest to the Agreement. SECTION 2. Section 2.2.5 (h) of the Development Agreement provides that PLC was to construct a reservoir and a water well and dedicate it to the City. The Development Agreement also provides that the cost of Public Facilities required under the Development Agreement, including the water well, that are in excess of those required to serve the Project were to be reimbursed to the Developer from funds generated by fees or exactions from other developments sff/99reso/p1c set agree/04l11/00 2 Res. No. 2000 — 39 served by the excess capacity of the Public Facilities constructed. The City Council finds that the water well required by the Development Agreement would serve the needs of all existing and new developments throughout the City and the benefits of the well are not limited to the Property. Accordingly, the Council further finds that it is reasonable and appropriate to use two sources of fees to pay for the Reimbursable Costs due PLC. These fees are the capital surcharge levied on monthly water bills and the capital facilities fee (connection charge) levied on all new developments. These fees are paid into the Water Master Plan Fund of the City of Huntington Beach, and will be used to pay for the Reimbursable Costs associated with the reservoir. Because the Council further finds that there is not an immediate need to construct a water well at this time, rather than require PLC to construct the water well at the cost of Two Million, Two Hundred Fifty Thousand Dollars, the City finds that it will waive that requirement pursuant to the Agreement, and construct the well in the future, with funds from the Water Master Plan Fund, and apply said cost credits to offset the City's Reimbursable Cost obligation. SECTION 3. Section 2.2.7 of the Development Agreement requires that PLC construct a police substation in the City. The police substation was to be located in an area such that it could serve both the-Project as well as the neighboring area of the Bolsa Chica lowlands, which was contemplated to be developed concurrently with the Project. However, the State of California has purchased the Bolsa Chica lowlands as a conservation area, and consequently there will be no development within the lowlands. Accordingly, in lieu of constructing a police substation and reimbursing PLC the cost of the station to the extent that it exceeds Eight Hundred Fifty Thousand Dollars, the City finds that it will receive the substantially equivalent benefit of the Development Agreement if the same Eight Hundred Fifty Thousand Dollars is paid directly to the City, to be used to construct a new dispatch center in the existing police station located adjacent to Huntington Beach City Hall. sff/99reso/p1c set agree/04/11/00 3 Res. No. 2000 - 39 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17 th day of Aril , 2000. �+ Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney REVIEWED AND APPROVED: T TED AND PROVED: CitrAdministrator Dir to blic Works sff/99reso/ple set agree/04/1 1/00 4 Res. No. 2000-39 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH I, CONNIE BROCKWAY, 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 resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 17th day of April, 2000 by the following vote: AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: None City Clerk and ex-offici Clerk of the City Council of the City of Huntington Beach, California