HomeMy WebLinkAboutStaff Report - Development Agreement (Outlet Center_CITY
LA E - LSIAO E
DREAM EXTREME,
CITY OF LAKE ELSINORE
REPORT TO PLANNING COMMISSION
TO: Honorable Chair and Members of the Planning Commission
FROM: Grant Taylor
Community Development Director
DATE: January 6, 2015
PROJECT: Development Agreement — Outlet Center: A request for a
Development Agreement by and between the City of Lake
Elsinore and Mohr Affinity, LLC to 1) vest City regulations in
connection with the future expansion of the Lake Elsinore
Outlet Center, and 2) insure the completion of improvements
to the Collier Avenue median and installation of a freeway
bridge sign. The subject property totals 46.5 acres and is
located at 17600 Collier Avenue (APN 389 - 210 -063, 064 and
066).
APPLICANT Athena Property Management, 41 Corporate Park, Suite 260,
Irvine, CA 92606
OWNER: Mohr Affinity LLC
Recommendation
1. It is recommended that the Planning Commission approve and adopt Resolution
No. 2015 -`; A Resolution of the Planning Commission of the City Of Lake
Elsinore, California, Recommending City Council Approval of a Development
Agreement between the City of Lake Elsinore and Mohr Affinity LLC.
Project Request & Location
The Outlet Center applicant Athena Property Management, and owner Mohr Affinity
LLC, have requested City Council approval of a Development Agreement by and
between the City of Lake Elsinore and Mohr Affinity, LLC.
Pursuant to California Government Code Sections 65864 - 65869.5, the applicant is
requesting the Development Agreement to vest the General Plan, Specific Plan and
land use regulations governing the Property and applicable development impact fees
primarily to bring certainty and stability to the City regulations applicable to the future
Development Agreement — Outlet Center
January 6, 2015
Page 2 of 5
use and expansion of the Outlet Center. The Agreement does not constitute approval
of a development project for the expansion of the Outlet Center and the Developer has
not submitted applications to the City for such development.
The subject property totals approximately 46.5 acres and is located at 17600 Collier
Avenue, further described as Assessor Parcel Numbers 389 - 210 -063, 064 and 066 and
is developed with the Outlet Center consisting of ten buildings, parking and signage.
This report and action is for the Development Agreement only. In the future the
applicant will submit entitlement applications for development of the four building pads
that would require approval of a Conditional Use Permit, Commercial Design Review
and Tentative Parcel Map. The Collier Avenue street median improvements will require
an encroachment permit and potentially grading permit, and the freeway bridge sign
would require Caltrans approval.
Environmental Setting
Project Site
Commercial
Specific Plan (Business
Specific Plan
Center
District)
(Community
Commercial
North
1 -15 Freeway
1 -15 Freeway
1 -15 Freeway
South
Collier Avenue
General Commercial
C -2 General
then vacant
and Floodway
Commercial and
Floodwa
East
Vacant then
Limited Industrial
M -1 Limited
Riverside Drive
Manufacturing
S R -74
West
Arco Gas Station
Specific Plan (Business
Specific Plan
then Nichols
District)
Road
Background
The Outlet Center Specific Plan was originally approved by the City Council in June
1990 and provided development standards and guidelines for a 297,235 square foot
Outlet Center.
In July 1993, the City Council approved Specific Plan Amendment #1 which increased
the total allowable building area to 377,235 square feet, an increase of 80,000 square
feet which included two additional buildings.
Development Agreement — Outlet Center
January 6, 2015
Page 3 of 5
In August 1994, the City Council approved Specific Plan Amendment #2 which revised
signage guidelines and standards.
In July 2000, the City Council approved Specific Plan Amendment #3 which annexed
3.5 acres into the Specific Plan Area that provided additional parking and a 0.17 -acre
wetland. In addition, signage guidelines and standards were amended.
In July 2013, the City Council approved Specific Plan Amendment #4 which authorized
a sign program, allowed demolition of 60,936 square feet of existing building area, and
approved a 40,000 square foot building pad. Improvements are underway and should
be fully complete by Spring of 2015.
Analvsis & Discussion
Athena Property Management operates the Outlet Center on a daily basis and has been
coordinating with the City on the Development Agreement and future proposed
improvements. The property owner has made a significant investment to upgrade and
improve the Outlet Center property with signage, building demolitions, fagade painting,
new parking areas, landscaping, outdoor living areas and other amenities consistent
with Amendment No. 2013 -01 - Fourth Amendment to the Outlet Center Specific Plan
and Uniform Sign Program No. 2013 -02.
The property owner desires to expand the Outlet Center by developing four building
pads on the westerly part of the property in the ride share parking area. In addition, the
applicant understands the benefit of improving the Collier Avenue street median and
desires to partner and coordinate with the City to implement landscape, hardscape,
fencing and signage improvements in the median to create a City western gateway.
Further, the applicant and City understand the benefit of a freeway sign to market the
City and Outlet Center by gaining Caltrans approval to implement a freeway bridge sign
on the Nichols Road and 1 -15 Freeway bridge.
Approval of this Development Agreement will provide benefits and assurances to both
the City and property owner in implementing the mutually desirable improvements. The
draft Development Agreement is attached and available on the City's website.
The main terms of the proposed Development Agreement are as follows:
1. The Term of the Development Agreement is 5 years.
2. Existing Land Use Regulations, including ordinances, resolutions,
applicable General Plan and Specific Plans, and zoning governing permitted uses;
density; intensity of use; design; subdivision; improvement, construction, building and
occupancy; restrictions, if any, on timing, sequence, and phasing of development;
Development Agreement — Outlet Center
January 6, 2015
Page 4of5
construction standards and specifications; public improvements and dedications
applicable to the development of the Property throughout the Term shall be those in
force and effect as of the effective date of the Development Agreement.
3. Existing Development Impact Fees applicable to development of the
Property during the first 30 months of the Term shall be those in effect as of the date of
the Development Agreement. Thereafter, development on the Property shall be subject
to such development impact fees in effect as of the date of the issuance of building
permits.
4. In reliance upon the vested rights provided by the Agreement, the
Developer will submit applications for future commercial development of the Property
consistent with the Expansion Concept as described in the Agreement consisting of four
building pads along Collier Avenue between the north end of the Outlet Center and
Nichols Road ranging in size between 2,000 and 8,000 square feet with a total up to
20,000 square feet and with up to three of the buildings pads providing drive -thru lanes.
5. As consideration for the vested rights and certainty provided by the
Development Agreement, the Developer shall (a) pay an initial Development Agreement
Fee in the amount $50,000 and a Commercial Development Agreement Fee of $2.50
per square foot at the time of issuance of building permits, (b) complete certain public
improvements consisting of Collier Avenue street median improvements along the
frontage of the Property and installation of a freeway bridge sign on the 1 -15 Freeway at
Nichols Road, and (c) complete certain improvements to the Property consistent with
and in substantial conformance with Amendment No. 2013 -01 - Fourth Amendment to
the Outlet Center Specific Plan and Uniform Sign Program No. 2013 -02.
6. To secure payment of the Development Agreement Fees and completion
of the above - referenced public improvements, the Developer shall deposit one million
dollars ($1,000,000) into an escrow account that can be drawn down to pay such costs
during construction. Upon payment of all Development Agreement Fees and
completion of the above - referenced improvements, any undisbursed funds will be
released to the Developer.
Environmental Determination
The Lake Elsinore City Council certified a Final Environmental Impact Report (FEIR) for
the Lake Elsinore Outlet Center in June 1990. The Development Agreement is
consistent with the Lake Elsinore General Plan, the Outlet Center Specific Plan, the
Lake Elsinore Municipal Code, and does not conflict with the findings and discussions
contained in the FEIR. The Development Agreement is Categorically Exempt from the
California Environmental Quality Act (CEQA) Guidelines pursuant to Class 2 — CEQA
Guidelines Section 15302, Replacement or Reconstruction, and Class 15 — CEQA
Guidelines 15315, Minor Land Division.
Development Agreement — Outlet Center
January 6, 2015
Page 5 of 5
Prepared By: Grant Taylor
Community Development Director
Approved By: Barbara Leibold, City Attorney
Attachments:
1. Vicinity Map
2. Site Plans (2)
3. Planning Commission Resolution
4. Draft Development Agreement
VICINITY MAP
LAKE ELSINORE OUTLET CENTER
DEVELOPMENT AGREEMENT
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RESOLUTION NO. 2015-
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
LAKE ELSINORE, CALIFORNIA, RECOMMENDING CITY COUNCIL
APPROVAL OF A DEVELOPMENT AGREEMENT BETWEEN THE CITY
OF LAKE ELSINORE AND MOHR AFFINITY
WHEREAS, Athena Property Management (the "Applicant "), filed a request on
behalf of Mohr Affinity LLC, (the "Property Owner "), with the City of Lake Elsinore
requesting approval of a Development Agreement for the Outlet Center Property
located at 17600 Collier Avenue (APN 389 -210 -063, 063 & 066) (the "Property "); and
WHEREAS, the Development Agreement request is being processed pursuant
to California Government Code Sections 65864 - 65869.5 and Lake Elsinore Municipal
Code Chapter 19.12 to vest the General Plan, Specific Plan and land use regulations
governing the Property and applicable development impact fees primarily to bring
certainty and stability to the City regulations applicable to the future use and expansion
of the Outlet Center; and
WHEREAS, Government Code section 65867 and LEMC 19.12.060 require
that the Planning Commission review the proposed Development Agreement and
make a recommendation to the City Council regarding approval of the Development
Agreement based upon certain findings including consistency with the City's General
Plan; and
WHEREAS, the Development Agreement will provide benefits and assurances
to both the City of Lake Elsinore and Mohr Affinity LLC in implementing mutually
desirable improvements; and
WHEREAS, on January 6, 2015 at a duly noticed public hearing the Planning
Commission has considered evidence presented by the Community Development
Department and other interested parties with respect to this item.
NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER
AS FOLLOWS:
SECTION 1. The Planning Commission has considered the Development
Agreement and the main terms and conditions thereof, including the vesting of City
rules, regulations and official policies governing the future expansion of the Outlet
Center and the completion of Collier Avenue median improvements and installation of
a freeway bridge sign at the 1 -15 Freeway and Nichols Road and finds that the
Development Agreement will further the goals and objectives of the City's land use
planning policies, by eliminating uncertainty in planning for the expansion of the Outlet
Center and completion of public improvements and that entry into the Development
Agreement is in furtherance of the goals, objectives and policies of the City's General
Plan and of benefit to the public.
PLANNING COMMISSION RESOLUTION NO. 2014 -32
PAGE 2OF3
SECTION 2. The Planning Commission has considered the California
Environmental Quality Act (CEQA) Guidelines and that a Final Environmental Impact
Report (FEIR) was certified in June 1990 and that the Development Agreement is
Categorically Exempt pursuant to Class 2 — CEQA Guidelines Section 15302,
Replacement or Reconstruction, and Class 15 — CEQA Guidelines 15315, Minor Land
Division.
SECTION 3. That the City of Lake Elsinore Planning Commission makes the
following findings for recommending City Council approval of the Development
Agreement for the Outlet Center:
1. The Development Agreement is consistent with the goals and policies set forth
in the Lake Elsinore General Plan and the purpose of the planning district in
which the properties are located.
2. The Development Agreement will not be detrimental to the general health,
safety, comfort, or general welfare of persons residing or working within the
area, or injurious to property or improvements in the area or the City.
3. The Development Agreement sets forth provisions and stipulations that will
provide mutual benefits and assurances to the City and property owner and
improve the area as a gateway to Lake Elsinore.
4. The Development Agreement sets forth provisions to assure performance by
the applicant in a timely manner.
5. The property owner has made significant investment in improvements to the
Outlet Center and is cooperating and coordinating with the City on provisions
set forth in the Development Agreement.
6. This recommendation is for the Development Agreement only and the applicant
will submit for mandatory entitlement applications and permits for the
improvements.
SECTION 4. Based upon the evidence presented, the above findings, and oral
and written testimony, the Planning Commission hereby recommends City Council
approval of the Development Agreement for the Outlet Center.
SECTION 5. This Resolution shall take effect from and after the date of its
passage and adoption.
PLANNING COMMISSION RESOLUTION NO. 2014 -32
PAGE 3OF3
PASSED, APPROVED AND ADOPTED this 6th day of January 2015, by the
following vote:
John Gray, Chairman
City of Lake Elsinore Planning Commission
ATTEST:
Richard J. MacHott, LEED Green Associate
Planning Manager
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF LAKE ELSINORE SS
I, Richard J. MacHott, Planning Manager of the City of Lake Elsinore, California,
hereby certify that Resolution No. 2015- as adopted by the Planning Commission of
the City of Lake Elsinore at a regular meeting held on the 6th day of January 2015, and
that the same was adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Richard J. MacHott, LEED Green Associate
Planning Manager