HomeMy WebLinkAboutRed Oak Investments, LLC - 2007-12-17 fx � r
Council/Agency Meeting Held:
Deferred/Continued to:
Appr vedd ® Conditionally Approved ® Denied City C erk's ignayfUe
Council Meeting Date: 12/17/2007 Department ID Number: PL07-39
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: PEN LOPBREAFT, NIADMINISTRATOR
�Ii4
PREPARED BY: SCOTT HESS, DIRECTOR OF PLANNIN7x**-,
SUBJECT: Approve Reimbursement Agreement with Red Oak Investments, LLC,
for Preparation of an Environmental Impact Report for The Ripcurl
Project
H
ment of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue:
Transmitted for City Council's consideration is a Reimbursement Agreement between the
City and Red Oak Investments, LLC. The Reimbursement Agreement will help defray the
costs of professional planning services associated with the Environmental Impact Report for
The Ripcurl project at the Southeast corner of Gothard Street and Center Avenue.
Funding Source:
Pending City Council approval of this reimbursement agreement, Red Oak Investments will
pay to the City $351,793 for the anticipated costs of preparing the requisite environmental
documentation. This revenue and expenditure are not included in the Fiscal 2007/08 budget;
a budget appropriation was approved by the City Council on October 15, 2007.
Recommended Action: Motion to:
"Approve the Reimbursement Agreement with Red Oak Investments, LLC as prepared by the
City Attorney,'and authorize the Mayor and City Clerk to execute the agreement.
Alternative Action(s):
"Continue the Reimbursement Agreement and direct staff accordingly."
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 12/1712007 DEPARTMENT ID NUMBER: PL07-39
Analysis:
The City Council approved a professional services agreement with PBS&J on October 15,
2007, to prepare an EIR for The Ripcurl project in accordance with the Municipal Code and
Administrative Regulations pertaining to professional services agreements. The Ripcurl
project is proposed at 7302-7400 Center Avenue, across from Goldenwest College. The
applicant, Red Oak Investments LLC, proposes to develop the 3.8 acre site with
approximately 440 luxury residential units in five residential stories, located above
approximately 15,000 square feet of street level retail and commercial uses. Open space
amenities will be included.
The cost of the contract with PBS&J is $351,793. These costs will be reimbursed by Red
Oak Investments, LLC. There have been many reimbursement agreements requested by
staff and the development community. This is an acceptable method to give developers
greater assurance of timely entitlement processing in the City of Huntington Beach. Staff
recommends the City Council approve the reimbursement agreement.
Strategic Plan Goal:
Land Use Development, Project 1, Revitalize Old Commercial Centers. The EIR is the
requisite first step in creating new development at this site.
Environmental Status:
Projects over which public agencies exercise ministerial authority, such as this agreement
contracting for preparation of environmental documentation, are categorically exempt from
the California Environmental Quality Act pursuant to Section 15300.1.
Attachment(s):
1. Reimbursement Agreement with Red Oak Investments
-2- 11/29/2007 10:13 Alai
ATTACHMENT # 1
EFE_,i £Ixl.,i f>tiif; l'I`- PLANNING - AC,l�i E.%�1k, 'I' E3E,"fE'Vi'F.E. THE
t.1,.IN OF I-1I1N_I.,INGTON :B1,-ACI I ND
1 S l R,"'R. ."D()AK 11I,,4•TTNG`l`C:)N Bf,'AC It I_.I_C
2 rt�
11 HS ACiI;FTMIEN E t;,3'yreaaa ent") is n'aaade and entered into this � l .. ci£ix
...... a2_00?-
munici al cc rpormiE.ara of the State of C aahlbrniaa, Eaer•a<inaafler• referred to as ``CFIrv`t " and Araastaar KQc d
Oak Huntington Beach. 1_.I..,C`, as C oloradi..> limited liability company- hereinafter refierr-od to as
"DEVI.1 {)1 I-A."
N I It',RFAS, D V E1..OPER is proposing to develop an area within Me (IQ #al`I13arat n ton
Beach known as Me Rip Cud E'a ject: and
DE.VELCWE•R is re aaired W ;aalarar t applications to CITY f0lr aapl}Nail Of VaarioUS
discretion,try rraakter' "aacala as entitlements. zone changes. land use approvals and
ia�it;c"*i�lalt'711.;�; <'clls`i
l)L i-:[_OPLA desires tlaaat all caatiderr enis, z{rrae cfta-ra.pes, land use approvals and
eaa ia'c:aaaaaeaataai aasscanlents be F?nwessed as stwn as possible: and
l)l;VEI:CkETJZ desires to fame CAN commit Sufficient resources to enable tile expeditious
processing of apizAicaatkmis and other"necessary docLaYT enitaation; and
P ar>aaaaaat to Caa/ilijrnicr (:i azviwnieni (:,'tr ie Secdon 87103.6, f)f-:VEI:C::)PFA is allowed to
defray tile cost of proc ssint, developmerA applications and entitlements by reirnbursing CITY Y Ar
such casts,
It)W. THEREFORE in consideration oflite promises and agreements herein:after aa-azade and
exchanged. the parties a4gree .as f-i)ll aws::
I PAYMENT
D1,V F (=)1'1:T,1 agrees to reinibur'se C"rFY & its professional services as follows-
A DFVFLOPER will make an initial payinent to CITY in flie arnouni of One
Hundred Thousand Dollars (S 100,000.00) (hercianafter the "Arnount of Deposit") on
-0 Tbc�reftfteT, I)EVEA-0PER shall replenish the
20 4
Amount oi'Deposit by payikg, to CITY three(3)subsequent payments, each in fhearnt'.4unt o.t
Ei-lity-Three Thous;nd,N-inc Hundred rhivy-One Dollars (5,193�.93)1 00'), to be paid within
d)Jrty 00) days of notification by City(the "Noticed Payinetnt"), or if, pr.,.)T to the payment
of any, Noticed Payment. the Amount of Deposit is, less than 011e ThOU.Sand Dallas's
[)EVF-,'I,Opf-,R shall 1-nake the next Noticed Payment within ten (10) days notice
from CJTY The Isar-ties acknowledot that the Amount of Deposit will be used to pay the.
DE".7-F-,I,.OPEP,.Ickiio,%!Icd4)cstliai
the aniount referenced in this Agreement is the CH"Y's, best estimate of the costs for th�
�iervices dc.,ii:.ribcd herein. and that the actual cost ofsaid sei-vices may lie hieher. In the
cvent that 11110 t-lLtMll Wit 017said ser-,:ices exceed';the esi-in-imed ctosts, DEVELOPER agrees
to pay the actual cost �wjthin ten (10) days after receiving CMT "s invoice for sarric. In the
event [tic actiiji costs of Reirnbursement Services ai-e less than the estima d costs. CITY
w d I refund file
e difference between the actUill and estimated costs.
B. The estinlatz:d Cost to, cover t,-kelvr (12) months of profcssional scrvict:s is
ThreL Hundred Fifty-Onc Thousand, Seven Hundred Ninety-Three Dollars(S '15 1,793.001,1.
C1, A late payment fee of tc;n percent (10%) vvitl be assessed if CITY receives
any payinent later thwo the thirtieth day after that payment is due but wipaid. In
addition,oil-, and one-half Percent(11,,,-)interest pc-month shall be added for each month the
payment herewider is due but unpaU
0-12199ill s6b?
A. DF..V1 1_,OPER mill make €n miti<al payment to CITY in the arrac?a.nt oi:' ()ne
Hundred Thousand Dollars ( 100,{)00.(W) (bereina her the "Araunus of Deposit") on
u._ •_� _l.� 20,).4�...... ` fi rea ter, I)1::.4`E. .,Ol'ER shall replenish the
,Njn unt of IJeposit by lxaying to �'I l °s' t. re e (3) subsecltrent payinents, each in the zasrat)atnt i>:(`
Ei,,,,oy-` hree Thousand, h,`ine flun<Ired Thirty-Onc Dollars ($£3,9 41.00), to be paid Within
ti hly (0) days of In)Waztion by CAI (dic Noticed Payment"), or T lvior to the payinent .
of any Notiecd. lla meant. the Arracataan of Deposit is less than One llrr,tasand Dollars
(S1_()OO), I)[ 4 1°l_;C1,'I=:f' AM! anaikc the next 'Noticed Payment within tern (10) days notice
Itcaaaa CITY Ile punks asdr ovvi d.ge that the Arrrount of Deposit ;vviil be used to pay the
professional planning services li.ruieal by this A rcenrr:rat. I)1....V ::1.i P[:,,R ackaao lvtlwges that
the aarr otuit referenced in this greernerat is tlae C I'Y's lest estimate taf tlrc G'ta>ts !'()I- the
services desk::becl herein, arml that the actual cost of said sc vices may he Iliglier, in Ow
ciao ant tI'.at be acttaa l c(,)st of said si;a"v€ces exceeds the ;'sdnizaed costs. LW111;(_XPER aa; w s .
to pay the actual cost within ten (10) days aaRer receiving C FY', in-,oice for same, In the
event !hQ actual cogs of lleinibUr ernent Serviccs are less than the estimated cogs. C'TF Y
v,ill relbi cl the the aCttaarl ,and estimated oasts,
131, The c°stiniaated cast to cover twelve (12) months of professional al services is
TIrwe Iltandwd Idly fate"i'ousaatatl, `even Hundred Ninety-Three Dollars ($ 15 1 93.00))
(_'. A Kite payment Ice of ten percent (ltt%) will be assessed of t_'11 receives:
any payment later than the thirtieth (30") Q after that payment is due but w1paaicl. In
addki m one and one-ha.lf percent(I /z) interest per nat>ntli shaall be added for each month the
aaynient Irereurider is dare bUt unp aiI
f�7_128f,;1�063
The amounts rcirr bursed to CITY rrrst.a mt to this ,1��re rnent will 1 is 1lp defray
CI..Y's cost of the prntissional planning services required to process l7llVI=I.t PEI ''R's various
development applications and entitlerrents asset forth herein.
t::ITY will rnairttln exclusive ct>r nal over the %vork described herein. Nothing in
this,'greement
A RA be dee.rt•red to require Cl` Y to approve any plan. pr€po al, wrag estiom .
pplicaticni or request scub rrittr d by I:)L;'t'I C:t)I'Il W
EL Shall be cicemed to limit. irr any respect whatsoever. t,`1T1`'s ,;c>Ie authol its h)
Wrest cum ccrrrtrtrl the planner(s) assigned to DI=VIMl'ER's various developt-rent proajects.
(I Shall e deenned to irrrpo e any liability on CITY difl rent from any liitl dRy
to may trtlrerv6se be established by law,
Dl_VL, i PF'.R shall erapb) no t.'I`Y official nor any, regular CITY em to ee in the
work pe6.rrrtred pursuant to this Agreement. No officer or employee of(ATY ;!mall have any direct
financial interest in this Agreement,
CITY agrees that time is oCthe esswnc°e for the p rt >r-truncc of the vork to be funded
rrrsr:rant to this ,,Xgrc.eincnt.
Either r party:, rn ay terminate this Agoreernent at any time N ith or Without cause. upon
ten. (10) days prior wduen. notice to the other part. DEVELOPER shall be responsible liar all costs
inCUrrecl prior to termination. including any aanc:I all costs incurred ;after notice of termination has
been +,iv,,,n,
This Agrcement shall be effective on the date of its approval 1"fy the City C ouncii cat`
Cl"i'K This A< reeat ent shall exj-4c when fuliv p rltarmed or terminated as farce,,iaicaf herein,
8. NO'lICT'S
Any notices, certificates. or other a rram.niunieations hereunder shall he given either b
personal delivery to D VFA.eOP R's aagent or to CITY Y xas the sittaaatictn shall x a rr anta or by encicasin"
the same in as sealed envelz-Pe. Postage pry p aicl, �aacl depositing the same in the United States l'�:>stLal
Service,, to the aaddr ssc s spcc:ified hc:Itm faro idcd that CITY and DEVELOPER. by notice gi cn
herecunderx mav c esi;.lnaatc different addresses to which stalasequent notices. ceatitic"-Vey or other
C.
atntnaantc4tti011s will be sent:
TO CITY: TO f>}V l t)l,'ER:
City ot`I ftantin-,toll Beach Amst arl"Red Oak lluntim.,ton Beach, .IWI.C
2000 N,1ain Street ?101 Business Center Drive. Staite 2 0
I lnntim ton Beach, CA 92648 It`\-atic. CA 02612
No waiver or modification of and land aaae in this Agreement shall he valid awnless ita
writing and clttlV executed by both parties,
The titles, captions., section, paragraph and subJec:t headings, and descriptive phrases
at the beginning apt'Ibe carious sections in this Agreement are merely descriptive and are included
sca'ely for convenience of reference only and are not representative of matters included or exciud d
'roil) such provisions, and do not interpret, define, limit or describe, or construe the intent of'tile
parties or affect the Construction or interpretation off am' provision offlus,., Agreernew.
11, INTI RPRETATION OF 'THIS AC;R,FF-,M-1--`,,j'
The lanuua,.�,e of ail parts of this Agm-eement shall in all cases be construed as a
whole, accorditw, to its Cale- meaning, and not strictly for or ag tinst any of the parties. If taut/
provision of this Agireement is held by an arbitrator or couri, of cornpQwnt 'Jurisdiction, tt) be
unenforceable. void, or invalid, such hokluli-, shall not invalidate or affcct the rcmainine,
covenants and provisions ol'this Agreement. No ciwenant or provision shall be deemed dependent
upon any other unless so expressly provided here. As used in this i\greenreat, fliv- rnws-culille (")a-
ncwer gender wid singular or plural number shall be dee.med To include the other kvilenever the
coritext s(,,) indicates or requires. NothiTIQ contained herein shall be construed so, as to require the
-e is ariv conflict between any pn, i on
commission of any act contra r�, it) kiw, and wherever tim )vI S
conunned herein and any present or futs,ire statute, law,. ordinance or regulation cojitracy to ,�1)i c il
the parties have it(.) right to contract. then the Later shall prevail, and the provision of this
AgIrcennent which is hereby affected shall be curtailed and limited only to the (:xtent necessarN to
brim-, it within the requirements ofthe JaNv.
I DUPLICATE ORRANAL
The ori,-,inal of this Agreement and one or more copies 'hereto have been prepared
and,si� each of�6ich so executed shall, irrespectiv gmed in counterparts as duplicate originals, e r,i Oie
date of its execution and delivery. be deemed an original. J."ach duplicate orig�inal shall be deciried
,in original instrument as against any party w1w.) has sioned, it.
13. I'VIMIGRATION-,
DENFUX)PER shall be responsible for fill! coni 1A ia lice with the immi—ation and
naturalization of the United States wid shall, in particular, complY witti the provisions (,,&the
L/iitet,I.Stales Co&, regarding employment verification,
14, LFGAL SERVICES SUIBCONIT RAC-TING IIR(A-f IBITED
DEVELOPER and CTIN agree that CTIN is not liable for payment of' any
SUbcontractor work involvino legal services, and that such lei-,al services are expressly outside tile
Z� I
scope of services contemplated hereunder. DEVE."LOPI.,"A understands that pursuant to
Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY: and
Cl'l Y shall not be liable for payment o:fany legal services expenses incurred. by DFNELOPIER.
15. ATTORNEY'S F1,,-j,-,S
I I , brouQht by either party an&'Or eniorce the'
III the t�Verlt Alit is to construe, 1,
I, provisions 'CCLII-C the per' )rrnance hereof. each party sliall bear
terms and'or ofthis Agreement or to S 1,(
its own attorriev's tees 3,
16. (JOVERNING LAW
-............
This At-yreemerit shall be ooverned and construed in accordance xvith fll-I laws oftiw
State of California.
..............
This Agrcernent. and the attached exhibits, contains the entire a'oreernem between the
parties 'respectim, the subject matter of this Agreement ,And skq rsedes all prior undermandiwl:, and
agreements whether oral or in writing,between the, partics respecting the subject matter hereof,
IN WI'l NESS W1 IF'R[1`101 (he parties hereto have caused this Agreement to he CXCCUted hV
and throu-Ii tlic'r authorized offices the dav- month and dear bast above written,
CITY OF IJUNTING]'ON BEACI 11. a
ANk.TS-I'AP,/R.L,'.D OAk III.)NTINGTON, rruinicipal corporation ot'thc.Staw',of
BEACFL LLC a Colorado limited liabili.tv C.alifurt A
companY
........................-...............
Nlayor
co-r,
.............................. 13 Lae—
..........
-
. ... ............. .—----
plint ... ..Cie
- (ciro'--oae/C.hairmao 'Presidem Vice President ITS rk
D A J PPRO lNIJ'IA" I VEI:'
AN ,
v- ......... .............
r
.......... ........ Direct 'r Of-I -in i i i u,
ITS, (c.ircele one)Secretary,'
T- APPROVED AS TO FORM:
Asst.Secretary easurer Mau xz bel
City At 'mi v
REVIEWED AND APPROVED:
...........
..........
Cv, Adm
inistrator
07-1 2 T_f!�K,'
CA ROUTING SHEET
INITIATING DEPARTMENT: Manning
SUBJECT: The Ripcuri EIR Reimbursement Agreement
COUNCIL MEETING DATE: December 17, 2007
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Attached ❑
Not Ap licable
Resolution (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable
Tract Map, Location Map and/or other Exhibits Attached ❑
Not Ap licable
Contract/Agreement (w/exhibits if applicable) Attached zo
(Signed in full by the City Attorney) Not Applicable ❑
Subleases, Third Party Agreements, etc. Attached ❑
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Attached ❑
Not Applicable
Fiscal Impact Statement (Unbudgeted, over $5,000) Attached
Not Applicable ❑
Bonds (If applicable) Attached ❑
Not Applicable
Staff Report (If applicable) Attached ❑
Not Applicable
Commission, Board or Committee Report (If applicable) Attached ❑
Not Applicable
Findings/Conditions for Approval and/or Denial Attached ❑
Not Applicable
EXPLANATIQN FOR nlUnlWNG ATTACHMENTS
REVIEWED RETURNED FORWARDED
Administrative Staff ( )
Deputy City Administrator (initial) ) )
City Administrator (Initial) ( ) ( )
City Clerk ( )
EXPLANATION FOR RETURN OF ITEM
RCA Author: M. Broeren/C. Davis
City ®f Huntington Reach
2000 Main Street • Huntington Beach, CA 92648
. OFFICE OF THE CITY CLERIC
JOAN L. FLYNN
CITY CLERK
December 26, 2007
Amstar/Red Oak Huntington Beach, LLC
2101 Business Center Drive
Suite 230
Irvine, CA 92612
Attn: Alex Wong
Dear Mr. Wong:
Enclosed for your records is a copy of the Reimbursement - Planning - Agreement
Between the City of Huntington Beach and Amstar/Red Oak Huntington Beach, LLC for
preparation of an Environmental Impact Report for The Ripcurl Project.
Sincerely,
LeA-,-\ 67,(' J
".0-1 -
Joan L. Flynn
City Clerk
JF:pe
Enclosure: Agreement
G:fo11owup:agrmt1tr
Sister Cities: Anjo, Japan • Waitakere, New Zealand
(Telephone:714-536-5227)