AGENDA ITEM NO. 7 ORDINANCE No CITY OF HAWTHORNE CITY COUNCIL AGENDA BILL

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1 AGENDA ITEM NO. 7 ORDINANCE No CITY OF HAWTHORNE CITY COUNCIL AGENDA BILL For the meeting of October 26, 2010 Originating Department: Planning & Community Development City Manager: James Mitsch Department Head: Gregg McClain SUBJECT: An Amendment to the development agreement for the Century Business Center for purposes of excluding property on which the proposed 9to5 project will be developed from the development agreement. RECOMMENDED MOTION: 1. Open and close Public Hearing 2. First reading of Ordinance No NOTICING PROCEDURES: Advertising and notification of the Public Hearing for the application was conducted in compliance with Chapter 17.06, Title 17 of the HMC. FISCAL IMPACT: None ATTACHMENTS: 1. Staff Report 2. Draft, First Amendment to Development Agreement for the Century Business Center Project 3. Legal Notice 4. Planning Commission Resolution PC Ordinance No. 1978

2 Staff Report City of Hawthorne To: Through: From: Honorable Mayor and City Councilmembers Jim Mitsch, City Manager Gregg McClain, Acting Director of Planning & Community Development Date: October 26, 2010 Subject An Amendment to the development agreement for the Century Business Center for purposes of excluding property on which the proposed 9to5 project will be developed from the development agreement. Recommendation 3. Open and close Public Hearing 4. First reading of Ordinance No Summary Report The original Development Agreement was made between the City and MS Kearny Northrop Avenue, LLC pursuant to the authority of Sections et seq. of the Government Code of the State of California. The development agreement encompassed approximately 86 acres north of Jack Northrop Boulevard, south of the Hawthorne Municipal Airport, west of Crenshaw Boulevard, and east of Prairie Avenue. This amendment excludes the property that will be developed for 9to5 Furniture from the development agreement that was entered into between the City and MS Kearny Northrop Avenue, LLP in The justification for approving this amendment to the development agreement with MS Kearney Northrop Avenue, LLC, is to facilitate the sale of land to 9to5 Furniture, who is prepared to construct a new manufacturing building at the site. All unfulfilled obligations of the development agreement will remain the responsibility of Kearney.

3 ORDINANCE NO AN ORDINANCE OF THE CITY OF HAWTHORNE, CALIFORNIA APPROVING AN AMENDMENT TO THE DEVELOPMENT AGREEMENT FOR THE CENTURY BUSINESS CENTER FOR PURPOSES OF EXCLUDING PROPERTY ON WHICH THE PROPOSED 9TO5 PROJECT WILL BE DEVELOPED FROM THE DEVELOPMENT AGREEMENT WHEREAS, MS Kearny Northrop Avenue, LLC (the Applicant ) has requested approval of an amendment to the Development Agreement for the Century Business Center Project to exclude from the Development Agreement the property that the Applicant proposed to convey to MIR RE, LLC for purposes of developing a 9 to 5 manufacturing project. The proposed Amendment is to be known as the First Amendment to the Development Agreement (the Application ) and is known as (Development Agreement Amendment No. 2010DA01); WHEREAS, the Century Business Center is located on approximately 86 acres of property bounded by Crenshaw Boulevard to the east, Jack Northrop Avenue to the south, Prairie Avenue to the west, and the Hawthorne Municipal Airport to the north (the Property ); WHEREAS, on September 12, 2006, the City of Hawthorne entered into a Development Agreement (Development Agreement No. 2006DA01) with the Applicant, which Agreement applied to the Property and which will expire on December 31, The Agreement was recorded on April 9, 2007 as Document No ; WHEREAS, the portion of the Property that will be conveyed to MIR RE, LLC for the proposed 9 to 5 Project is described in Exhibit A and depicted in Exhibit B; WHEREAS, the remaining unfulfilled obligations of the Developer under the Development Agreement will remain the obligation of the Applicant; WHEREAS, a Final Environmental Impact Report (FEIR) under CEQA, State Clearinghouse No was prepared for the Development Agreement, Specific Plan and related uses. Thereafter an Addendum to that FEIR was prepared in connection with the consideration and adoption of the Third Amendment to the Specific Plan. A further Addendum (a second addendum) was prepared in connection with the Fourth Amendment to the Specific Plan; 1

4 WHEREAS, a duly noted public hearing was held by the Planning Commission, of the right to submit comments thereon and of the date of the public hearing on the proposed First Amendment to the Development Agreement was given by publication in the Hawthorne Herald on September 2, Notice was mailed on August 25, 2010 as required by law. In accordance with that Notice, the public hearing was held by the Planning Commission to consider the proposed First Amendment to the Development Agreement was held on September 15, 2010; and WHEREAS, on September 15, 2010, the Planning Commission adopted Resolution PC recommending to the City Council approval of the proposed First Amendment to the Development Agreement; and WHEREAS, evidence was heard and presented from all persons in favor of the application, from all persons opposed to the application and from members of the City staff; and that the Planning Commission having heard and received all of said evidence, testimony and statements and being fully informed in the applications. Thereafter the public hearing was closed on September 15, WHEREAS, a duly noted public hearing was held by the City Council, of the right to submit comments thereon and of the date of the public hearing on the proposed First Amendment to the Development Agreement was given by publication in the Hawthorne Herald on October 15, Notice was mailed on October 15, 2010, as required by law. In accordance with that Notice, the public hearing was held by the City Council to consider the proposed First Amendment to the Development Agreement was held on October 26, 2010; and NOW THEREFORE, the City Council of the City of Hawthorne ordains as follows: Section 1. The City Council finds that all of the facts set forth in the recitals of this resolution are true and correct. Section 2. Based on this analysis and the information contained in this Addendum, there is no evidence that the proposed First Amendment to the Development Agreement requires major changes to the FEIR. Comparison of the Development Agreement with the First Amendment to the Development Agreement indicates that there are no new significant environmental impacts associated with adoption of the First Amendment to the Development Agreement. In addition, there is no substantial evidence that the circumstances under which the project is undertaken have substantially changed and there is no evidence of new or more severe environmental impacts arising out of the proposed changes to the Development Agreement. This is because the First Amendment to the Development Agreement is deleting property from the scope of the Development Agreement while leaving the obligations contained in the 2

5 Development Agreement to remain with the original developer of the Property (MS Kearny Northrop Avenue, LLP). For these reasons, the City Council finds that no additional environmental review is required for the Fourth Amendment pursuant to State CEQA Guidelines Section Section 3. The documents and other materials that constitute the record of the proceedings upon which the City Council decision is based, which include, but are not limited to, the staff reports for the Project and all of the materials that support the staff reports for the Project, are located in the Office of the Planning Director of the City of Hawthorne, at 4455 West 126th Street, Hawthorne, California The custodian of these documents is the Director of Planning of the City of Hawthorne. Section 4. Based on all the evidence in the record, the City Council finds that the First Amendment to the Development Agreement is appropriate for the following reasons: (a) The Development Agreement No. 2006DA-01 as amended by the First Amendment will still comply with the requirement of the State Planning and Zoning Law for consistency between the General Plan and the Zoning Ordinance because the Development Agreement allows for uses and development that is consistent with the land use designation and policies of the Hawthorne Comprehensive General Plan. (b) The Development Agreement as amended by the First Amendment will still be appropriate for this site because it will allow for the continued conversion of approximately 86 acres of property formerly used for airplane manufacturing to be used for a variety of retail, commercial, and industrial uses which are compatible with each other and compatible with the surrounding uses. The Hawthorne Municipal Airport to the north and the retail development to the east of the project will be positively impacted by the potential for increased airport related businesses and by an increased number of potential retail customers as employment at the Center increases. (c) The type of development that would be allowed under the Development Agreement as amended by the First Amendment will continue to be industrial, hangars, recreational vehicle storage, self storage, commercial, and office uses. These uses will be developed through the adaptive reuse of several of the existing larger buildings and the construction of a number of various sized smaller buildings. This type of a comprehensive development ensures that the site is developed in a cohesive and compatible manner. (d) The Development Agreement as amended by the First Amendment will result in the creation of increased permanent job opportunities in the City, temporary construction jobs, improved economic use of the site over the current 3

6 uses, and the generation of additional property taxes for the state and local governments. Section 5. The City Council further finds that Development Agreement No. 2006DA01 as amended by the First Amendment to the Development Agreement does comply with the requirements of California Government Code Sections through in that the Development Agreement does specify in detail and contains the following: (a) Provisions are included in Section 14 of the Development Agreement requiring periodic review of the Agreement at least every twelve months, at which time the applicant shall be required to demonstrate good faith compliance with the terms of the Agreement (California Government Code Section ). (b) The term of the Development Agreement is specified in Section 8(a) of the Agreement and, with respect to the CBC Project Phase I Property, shall extend until December 31, 2016, and with respect to the CBC Project Phase II Property, shall extend until the later to occur of (i) the seventh anniversary of the date upon which the Lease expires or terminates and Vought vacates the CBC Project Phase II Project, or (ii) December 31, 2016 (Government Code Section ). (c) The permitted uses of the property, the density and intensity of use, the maximum height and size of the proposed structures, and other required provisions are referred to in Section 6(b) of the Development Agreement (Government Code Section ). (d) The Development Agreement includes conditions, terms, restrictions and requirements for subsequent discretionary actions in Section 6 (a), (c) and (d) of the Agreement (Government Code Section ). Section 6. Based on all the evidence in the record and the findings contained in Sections 1 through 5 of this Resolution, the City Council hereby approves the First Amendment to the Development Agreement for the Century Business Center Specific Plan, subject to the provisions of Section 7 of this Resolution. Section 7. The City Council s approval of the First Amendment to the Development Agreement shall be subject to (i) the City Attorney s approval as to form, and (ii) a condition that it not become effective unless and until the 9 to 5 Project owner has closed escrow and taken title to the portion of the Property described in Exhibit A and depicted on Exhibit B. 4

7 Section 8. The City Clerk shall certify to the adoption of this Resolution, shall mail a copy of this Resolution to the applicant, and shall forward a copy to the City Manager and City Attorney. PASSED, APPROVED, and ADOPTED this day of, LARRY M. GUIDI, MAYOR City of Hawthorne, California ATTEST: NORBERT HUBER, City Clerk City of Hawthorne, California APPROVED AS TO FORM: RUSSELL MIYAHIRA, Acting City Attorney City of Hawthorne, California 5