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HomeMy WebLinkAboutOrdinances - No. 1865ORDINANCE NO. 1865 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI PARTIALLY RESCINDING AND AMENDING DEVELOPMENT AGREEMENT PERTAINING TO THE DEVELOPMENT OF 220 ACRES LOCATED ON THE SOUTH SIDE OF HARNEY LANE BETWEEN STATE HIGHWAY 99 AND THE UNION PACIFIC RAILROAD TO THE WEST (REYNOLDS RANCH) (DEVELOPMENT AGREEMENT 06-GM-01) --------____________----------------------------------------------- --------____________----------------------------------------------- BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LODl AS FOLLOWS: SECTION 1. The Lodi City Council passed Ordinance No. 1785 approving a Development Agreement covering the following property: 220 ACRES LOCATED ON THE SOUTH SIDE OF HARNEY LANE BETWEEN STATE HIGHWAY 99 AND THE UNION PACIFIC RAILROAD (UPRR) TO THE WEST - ASSESSORS PARCEL NUMBERS 058-1 10-04, 058-1 10-41, 058-130-06, 058-1 30-07, 058-1 30-08, 058-1 30-09, 058-1 30-1 1, 058-1 30-1 5, 058-1 30-1 6, 058-1 30-21, 058-1 30-22, 058-1 30-24, AND 058-1 30-04. SECTION 2. San Joaquin Valley Land Company LLC. (“SJVLC”), the sole party to the above referenced Development Agreement, requested that the agreement be partially rescinded and amending by letter of September 24, 2012, a copy of which is attached hereto and incorporated by reference. However, SJVLC, Citizens for Open Government and the City entered into a settlement agreement dated August 26, 2006 (“Settlement Agreement”), the obligations of which were incorporated into the Development Agreement and into the California Environmental Quality Act (CEQA) approvals set forth in Resolution 2006-162. This ordinance shall not terminate any of the obligations set forth in the Settlement Agreement, Moreover, CEQA Resolution 2006-1 62 shall continue in full force and obligate Frontiers to comply with all of the obligations set forth in the Settlement Agreement. SECTION 3. The City Council hereby finds that partial termination of the Development Agreement and amendment as set forth in the attached Mutual Agreement to Terminate Development Agreement is in the best interest of the City to ensure that any construction is subject to the new impact mitigation fee program, and to eliminate conditions in the Development Agreement that could present barriers to housing construction in the current economy. SECTION 4. The City Council hereby finds that the partial termination of the Development Agreement and amendment as set forth in the attached Mutual Agreement to Terminate Development Agreement is consistent with the General Plan land use designation and the zoning for the proposed Development. SECTION 5. The City Council hereby adopts Ordinance No. 1865 partially rescinding and amending the Development Agreement by and between the City of Lodi and SJVLC as set forth in the attached Mutual Agreement to Terminate Development Agreement. However, the Settlement Agreement and CEQA Resolution 2006-1 62 shall continue in full force and obligate SJVLC to comply with all of the obligations set forth in the Settlement Agreement. 1 SECTION 6. No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer for employee thereof, a mandatory duty of care towards persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. SECTION 7. Severability. If any provision of this ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application. To this end, the provisions of this ordinance are severable. The City Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof. SECTION 8. This ordinance shall be published one time in the "Lodi News-Sentinel,'' a daily newspaper of general circulation printed and published in the City of Lodi, and shall take effect 30 days from and after its passage and approval. Approved this 1 7'h of October, 201 2 (+ [L mm* (AOANNE MOUNCE / "yv IAOANNE MOUNCE Mayor City Clerk State of California County of San Joaquin, ss. I, Randi Johl, City Clerk of the City of Lodi, do hereby certify that Ordinance No. 1865 was introduced at a regular meeting of the City Council of the City of Lodi held October 3, 2012, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held October 17, 2012, by the following vote: -------------_______----------------------------------------------- -------------_______------_---------------------------------------- AYES: NOES; COUNCIL MEMBERS - None ABSENT: COUNCIL MEMBERS - None ABSTAIN: COUNCIL MEMBERS - None COUNCIL MEMBERS - Hansen, Johnson, Katzakian, Nakanishi, and Mayor Mounce I further certify that Ordinance No, 1865 was approved and signed by the Mayor on the date of its passage and the same has been p d pursuant to law. City Attorney 2 san joaquin valley land companyelk August 13,2012 Mr. Rad warn, Ciuanapra: City of Lodi 221 W. Pine Street Ldi, CA 95240 RE. Reqaest to Terminate ReynolaS Ranch Development Agreement ' This letter concerns the Development Agreement, ("DA"), for the Reynolds Ranch project approved on August 30,2006 by the Lodi Ci Council On behalf of SJW, I am requesting that the DA be terminated. The project is not sustainable fbnciaUy with the DA m e&d due to the combination of the cost of the obligations and the much lower laud values since the DA and the pmject were origiDaly approved in 2006. We undcrstaud that we will lose any benefils contained in the DA upon hnnination. Pleasecantact me at your earliest convenimce so that we may discuss the steps necessary by US and the City to place this item on a City CouaciI meeting agenda as soon as possible. .. Shly, Dale N. Gillespie, Managing Member San Joaquin Valley Land Company, LLC cc: SJvLCmtmbns j DEVELOPMENT AGREEMENT This Mutual Agreement to Terminate Development Agreement (Agreement) is made this - day of , 2012 by and between the City of Lodi, a California general law city (Lodi) and San Joaquin Valley Land Company LLC (Landowner or Developer) and terminates that certain Development Agreement entered into by the parties on September 6, 2006 (Development Agreement) regarding the Reynolds Ranch Project (the “Project”). 1. RECITALS. A Landowner om or controls certain real property generally known as the Reynolds Ranch Project and more specifically described in Exhibit A which is attached hereto and incorporated herein by this reference. B. In 2005 Blue Shield of Califomia, (“BSC”), which at the time employed over 600 employees in 3 separately leased Lodi facilities, and constituted one of Lodi’s largest private employers, desired to consolidate their operations into a single owned location and thereafter expand their employment to 1 100 employees. Despite best efforts by the City of Lodi, BSC was unable to find a suitable location within the then current Lodi municipal boundary and subsequently BSC decided to locate its new facility in Stockton. C. The City of Lodi was discouraging residential development applications during this period of time, as it anticipated updating Lodi’s General Plan, a process which had not yet begun. D. During this same time, Landowner proposed developing a mixed use project adjacent to Highway 99 and South of Harney Lane that would be designed to accommodate Blue Shield’s needs in the proposed Project. The Project as conceived and designed included approximately 1 , 100 residential units of various types, office uses, and an anchored retail shopping center. E. Negotiations between BSC and Landowner resulted in an enforceable agreement in favor of BSC purchasing a 20.5 acre campus within the Project site contingent upon Lodi and San Joquin County LAFCo approving the annexation of the Project site to Lodi and Lo& granting related land use entitlements within a certain time frame. BSC leveraged the fact that they had already secured the Stockton site due to BSC’s inability to earlier locate a suitable site in Lodi to negotiate a substantial land price concession and a cap on its contribution to infrastructure far below BSC’s fair share contribution. 1 M. The Costco store generates significant sales tax revenue for Lodi. It also employs at least 180 employees, 20 in management positions. Approximately two-thirds of Costco’s sales are to non-lodi residents, creating additional sales opportunities for local merchants. N. Home Depot opened its jirst LEED-certified 135,000 square foot store, which is one of the only “new-market” stores it opened in 2012. This store draws national attention as the only Home Depot store outfitted with state of the art energy management systems as part of a U.S. Department of Energy grant. The Lodi store is the test site for these systems on an on-going basis. The Home Depot employs approximately 150 employees, most full time. It is projected to create sign%cant sales tax revenue to the City. Like Costco, approximately two-thirds of the projected sales volume is expected to be derived from non-lodi residents. 0. Subsequent to the entry of the Development Agreement, the City adopted its anticipated General Plan but that General Plan did not contain many of the conditions anticipated in the Development Agreement. P. Government Code Section 65868 authorizes the parties to terminate the Development Agreement upon mutual consent and providing the public notice required by Government Code Section 65867. Q Therefore, the City finds the public interest has been served by lochg the Blue Shield, Home Depot, Costco and other retail users at Reynolds Ranch. Further, the City finds the exactions imposed by the Development Agreement represent significant obstacles to the development of the residential aspect of the approved mixed use plan and the City will not enjoy the additional benefits flowing from full build out of this approved mixed use Project. Further, the City finds that the exactions imposed by the Development Agreement place the residential aspect of the mixed use plan at a fatal economic disadvantage in relationship to other pending or future residential projects in Lodi which do not carry the weight of the Development Agreement’s conditions. The City further finds that conditions and terms imposed by the recently enacted General Plan Update are appropriate to the residential aspects of the Reynolds Ranch Project, fulfill the public interest and are the functional equivalent to the ad hoc conditions imposed by the Development Agreement. 2. TERMINATION OF DEVELOPMENT AGREEMENT. Subject to the terms and conditions contained herein, the parties tenmate * the Development Agreement as of this Agreement’s effective date. Thereafter the parties shall have no rights or duties to one another (except as set forth herein) or any third party from any and all rights or obligations arising fiom the Development Agreement, whether or not such rights or obligations have been fully or partially enjoyed andor performed or if the enjoyment of the right or performance of the obligation has not yet happened. It is the intention of the parties that upon the effective date of this Agreement the parties shall 3 no longer have any rights or obligations between themselves under the Development Agreement except as set forth herein. A. Obligations Arising from Existing Benefits: The obligations set forth below, which were triggered under the Development Agreement prior to this Termination Agreement but have not yet been satisfied by the Developer shall continue in full force and effect. In the event Developer has failed to meet any of the obligations set forth below at the time Developer applies for any development entitlements within the Project, City will be entitled to refuse to process the application until the below listed obligations are fully satisfied. i) ii) iii) Electric Utility Impact Fees. Developer shall pay an mount to be billed by the City not to exceed $291,336.28 in electric utility Line Extension Costs called for in paragraph 6.4.10 of the Development Agreement by January 1,20 13. Developer and Citizens for Open Government and the City entered into a settlement agreement dated August 24, 2006 (“Settlement Agreement”), the obligations of which were incorporated into the Development Agreement and into the CEQA approvals set forth in Resolution 2006-162. This agreement shall not terminate any of the obligations set forth in the Settlement Agreement. Moreover, CEQA Resolution 2006-162 shall continue in full force and obligate Developer to comply with all of the obligations set forth in the Settlement Agreement. Agricultural Mitigation. Developer shall satisfy the Agricultural Mitigation Requirements set forth in Pareh 6.1.2 and 6.4.1 1 of the Development Agreement at the times required by those sections. This obligation, among others, is also included in the Settlement Agreement referenced in section 2.A.ii above. Maintenance of Public Improvements. Developer shall comply with the requirements of Paragraph 6.4.5 of the Development Agreement. Dedication of Fire Station Property. Developer shall comply with the requirement of Paragraph 6.4.6 of the Development Agreement to dedicate property for a Fire Station. The remainder of the requirements of paragraph 6.4.6 shall be terminated. Public Art. Developer shall comply with the requirement to Install public Art set forth in the Project set forth in Paragraph 6.4.8 of the Development Agreement. The $60,000 amount shaIl be reduced by the ratio that the acres of Project land developed as of the date 4 of this Agreement bears to the total acreage of the Project (52.7 acred220 acres which eqyb $14,373.00). 3. SUBSEOUENT DEVELOPMENT AND CONSTRUCTION SHALL BE SUBJECT TO CURRENT ORDINANCES, STANDARDS AND POLICIES. A. Portions of the Project Already Constructed. Those portions of the Project already constructed shall be regarded as vested from any changes in the ordinances, standards and policies in effect at the time the Development Agreement was effective and shall not be subject to any new ordinances, standards or policies enacted subsequently. B. Portions of the Project not Yet Constructed. Those portions of the Project that have not yet obtained a building permit fiom the City of Ludi shall be subject to the ordinances, standards and policies in effect at the time the building permit application is submitted unless Landowner first obtains a vested right affecting the applicability of such ordinances, standards and policies through a vesting tentative map, a development agreement or some other form of right. 4. MISCELLENOUS PROVISIONS. A. Partial Invalidity. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be afkcted thereby, and each such term and provision of this Agreement shall be valid, and shall be enfoned to the fullest extent permitted by law. B. Waivers. No waiver of any breach of any covenant or provision herein contained shall be deemed a waiver of any preceding or succeediig breach thereoE or of any other covenant or provision herein contained. No extension of time for performance of any obligation or act shall be deemed an extension of time for performance of any other obligation or act except those of the waiving party, which shall be extended by a period of time equal to the period of the delay. C. Successors and Assinns. This Agreement shall be binding upon and shall inure to the benefit of the permitted successors and assigns of the parties hereto. D. Professional Fees. If either party commences an action against the other to interpret or enforce any of the terms of this Agreement or because of the breach by the other party of any of the terms hereof, the losing party shall pay to the prevailing party reasonable attorneys' fees, costs and expenses and court costs and other costs of action incurred in connection with the prosecution or defense of such action, whether or not the action is prosecuted to a final judgment. For the pupose of this Agreement, the 5 ! terms "attorneys' fees" or "attorneys' fees and costs" shall mean the fees and expenses of counsel to the parties hereto, which may include printing, photostating, duplicating and other expenses, air hight charges, and fees billed for law clerks, paralegals, librarians and others not admitted to the bar but performing services under the supervision of an attorney. The terms "attorneys' fees" or "attorneys' fees and costs" shall also include, without limitation, all such fees and expenses incurred with respect to appeals, arbitrations and bankruptcy proceedings, and whether or not any action or proceeding is brought with respect to the matter for which said fees and expenses were incurred. The term "attorney" shall have the same meaning as the term "counsel." E. Entire Ameement. This Agreement (including all Exhibits attached hereto) is the final expression of, and contains the entire agreement between, the parties with respect to the subject matter hereof and supersedes all prior understandings with respect thereto. This Agreement may not be modified, changed, supplemented, superseded, canceled or terminated, nor may any obligations hereunder be waived, except by written instrument signed by the party to be charged or by its agent duly authorized in writing or as otherwise expressly permitted herein. The parties do not intend to coda any benefit hereunder on any person, firm or corporation other than the parties hereto and la- assignees. F. Time of Essence. City of Lodi and Landowner hereby acknowledge and agree that time is strictly of the essence with respect to each and every term, condition, obligation and provision hereof and that failure to timely perform any of the terms, conditions, obligations or provisions hereof by either party shall constitute a material breach of and a non-curable (but waivable) default under this Agreement by the party so failing to perform. G. Construction. Headings at the beginning of each paragraph and subparagraph are solely for the convenience of the parties and are not a part of the Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and the masculine shall include the feminine and vice versa. This Agreement shall not be coflstrued as if it had been prepared by one of the parties, but rather as if both parties had prepared the same. Unless otherwise indicated, all references to pamgraphs, sections, subparagraphs and subsections are to this Agreement. All exhibits referred to in this Agreement are attached and incorporated by this reference. H. govern in^ Law. The parties hereto acknowledge that this Agreement has been negotiated and entered into in the State of California. The parties hereto expressly agree that this Agreement shall be governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California. I. Days of Week. If any date for performance herein falls on a Saturday, Sunday or holiday, as defined in Section 6700 of the California Government Code, the time for such perfomce shall be extended to 5:OO p.m. on the next business day. 6 J. No Construction Against Drafting Partv. The parties ~~JXX that this Agreement was jointly negotiated and jointly drafted and that is shall not be interpreted or construed in favor of or against any party on the ground that the party or the parties' attorney drafted this Agreement. IN WITNESS THEMOF this MUTUAL AGREEMENT TO 'IERMINATE ,2012. DEVELOPMENT AGREEMENT is effective this - day of CITY OF LODI, a municipal corporation ATTEST: RAND1 JOHL City Clerk APPROVED AS TO FORM: By: D. STEPHEN SCHWABAUER, City Attorney KONRADT BARTIAM City Manager SAN JOAQUIN VALLEY LAND COMPANY, LLC By: Name: Title: I I ! .! ! 1 7