2019/03/14 Planning Commission Resolution (3)PLANNING COMMISSION RESOLUTION NO. 2019-10
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF ROHNERT PARK, CALIFORNIA, RECOMMENDING CITY COUNCIL
ADOPTION OF AN ORDINANCE APPROVING THE THIRD AMENDMENT TO THE
DEVELOPMENT AGREEMENT BETWEEN THE CITY OF ROHNERT PARK AND
PENN GROVE MOUNTAIN LLC ELIMINATING THE WATER TANK, ADDITION OF
TWO LOTS AND PHASING REVISIONS
WHEREAS, Government Code § 65864, et seq., authorizes the City of Rohnert Park to
enter into development agreements which will provide certainty, definition and commitment to
developers as well as to necessary public improvements required by development; and
WHEREAS, the applicant, Penn Grove Mountain LLC filed Planning Applications
proposing General Plan amendments (PLGP 18-0003), an amended Specific Plan (PLSP 18-
0001), a revised Development Area Plan (PLDP 18-0005), an amendment to the Development
Agreement (PLDA17-0006), and modifications to conditions of approval for the Tentative Map
(PLSD18-0002), for the Southeast Specific Plan ("SESP") located south of the Canon Manor
Specific Plan Area, west of Petaluma Hill Road, and north of Valley House Drive (APN 047-
111-030), in accordance with the City of Rohnert Park Municipal Code ("RPMC"); and
WHEREAS, the proposed applications would eliminate the water tank from Parcel B,
allow development of two lots on the water tank site, and change development phasing for
Phases 3 and 4; and
WHEREAS, the City staff has evaluated the project and determined that it is consistent
with the City's current strategy for providing water service and will accelerate the delivery of
planned housing units; and
WHEREAS, in connection with the Project, Developer and City staff have negotiated a
proposed Third Amendment to Development Agreement ("Development Agreement
Amendment") in accordance with the requirements of Government Code § 65864, et seq., and
Chapter 17.21, "Development Agreement Procedure," of the Rohnert Park Municipal Code
("RPMC"), for the Property. The Development Agreement Amendment negotiated by
Developer and the City is attached to this Resolution as Exhibit A; and
WHEREAS, the Development Agreement Amendment, among other things, eliminates
the water tank from Parcel B, requires the construction of a water transmission line, provides for
the reconveyance of the water tank parcel to the development at fair market value, and allows
development of two lots on the water tank site; and
WHEREAS, the City Council of the City of Rohnert Park has certified the Final EIR
prepared for the Project and the City has otherwise carried out all requirements for the Project
pursuant to CEQA; and
WHEREAS, pursuant to California State Law and the RPMC, public hearing notices
were mailed to all property owners within an area encompassing a three hundred foot radius of
the subject property and a public hearing was published for a minimum of 10 days prior to the
first public hearing in the Community Voice.
WHEREAS, on March 14, 2019, the Planning Commission held a public hearing at
which time interested persons had an opportunity to testify either in support or opposition to the
proposed amendments to the Development Agreement Amendment; and
WHEREAS, the Planning Commission has reviewed and considered the information
contained in proposed amendments to the Development Agreement.
NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City
of Rohnert Park makes the following findings, determinations and recommendations with respect
to the proposed Development Agreement Amendment:
Section 1. The above recitations are true and correct and material to this Resolution.
Section 2. Environmental Review.
A. On December 7, 2010, the City Council of the City of Rohnert Park certified the
Final EIR for this Project, including adoption of associated CEQA Findings, Statement of
Overriding Considerations, and the Mitigation Monitoring and Reporting Program, as described
in City Council Resolution No. 2010-134. The proposed amendment will not result in additional
environmental effects not previously evaluated in the EIR and is consistent with the analysis in
the 2010 EIR. No additional environmental review is necessary.
B. Further, CEQA Guidelines section 15162 provides that "no subsequent EIR shall
be prepared" for a project unless the lead agency determines that (1) "substantial changes are
proposed in the project which will require major revisions of the previous EIR"; or (2)
"substantial changes occur with respect to the circumstances under which the project is
undertaken"; or (3) "new information of substantial importance ... shows" one or more
significant effects not discussed in the original EIR, greater severity to previously -identified
substantial effects, or newly -found feasible mitigation measures that would substantially reduce
significant effects. The proposed Development Agreement Amendment will not result in any
changes to the proposed project not previously analyzed in the 2010 EIR and no new information
of substantial importance shows any significant effects or newly found feasible mitigation
measures that would substantially reduce significant effects.
Section 3. Findings for _Adaption of Development Agreement. The Planning
Commission, in recommending approval to the City Council of Planning Application Nos.
PLGP18-0003, PLSP18-0001, PLSD18-0002, PLDP18-0005, and PLDA17-0006 Development
Agreement Amendment for Southeast Specific Plan, hereby makes the following findings
pursuant to Government code section 65867.5 and RPMC 17.21.040:
1. The proposed Development Agreement Amendment was considered at a public
hearing
Criteria Satisfied. A duly noticed public hearing regarding the amended
Development Agreement was held by the Planning Commission on
March, 14, 2019, in conformance with the notice provisions of Government Code
§§ 65090 and 65091 and the requirements of the RPMC section 17.21.030.
2. The provisions of the proposed Development Agreement Amendment are
consistent with the general plan and any applicable specific plan
Criteria Satisfied. The proposed Development Agreement Amendment is
consistent with the General Plan and would direct the Project's development in an
orderly manner that benefits the City.
The provisions of the amended Development Agreement would eliminate an
onsite, at -grade water tank in the Southeast Specific Plan Area. Staff has
evaluated the impact of the proposed change and determined that it is consistent
with the City's current water service plans, which include development of
elevated water storage tanks with funding from water capacity charges.
Staff has also considered the need for housing in the region and the changes to
phasing will accelerate the delivery of housing with the addition of two units in
Phase 1 and the addition of 35 units from Phase 4 moving to Phase 3.
3. The provisions of the proposed Development Agreement are consistent with
Government Code 65867.5(C).
Criteria Satisfied. The Development Agreement satisfies the requirements of
Government Code 65867.5(C) that requires that a sufficient water supply be
available for subdivisions which meet the definition of "subdivision" in
Government Code 66473.7(a)(1) within the Project, as required by Government
Code section 66473.7(b)(1). The City prepared a Water Supply Assessment to
examine the demands of new development and assesses the City's supply sources
to meet the demands. Based on the City's Water Supply Assessment, it was
determined that sufficient sources exist to meet the demands of the City's general
plan buildout using a combination of surface water, groundwater and recycled
water. The SESP is included in the City's General Plan and, therefore, the City's
Water Supply Assessment accounts for increases in the population and use
associated with the SESP development. Because the Project is consistent with the
prior analysis and sufficient water supply is available for this project, no
additional analysis is needed and the proposed Development Agreement satisfies
the required of Government Code 65867.5(C).
4. The Planning Commission has given consideration to other pending
applications and approved projects; the traffic, parking, public service, visual,
and other impacts of the proposed development project upon abutting properties
and the surrounding area; ability of the applicant to fulfill public facilities
financing plan obligations; the relationship of the project to the City's growth
management program; the provisions included, if any, for reservation, dedication,
or improvement of land for public purposes or accessible to the public; the type
and magnitude of the project's economic effects to the city of Rohnert Park, and
of its contribution if any toward meeting the city's housing needs; and to any
comparable, relevant factor.
Criteria Satisfied. The proposed modifications to the development result in a
very increase the number of residential units in the project and the removal of a
water tank. The impacts of these changes on traffic, parking public service are
modest. The Southeast SPA has an approved Community Facilities District (CFD)
which generates special taxes to support public services. The two new residential
lots will pay these special taxes, which will mitigate its impacts. The new
residential units will be less visually intrusive on the abutting properties than the
proposed water tank and the conditions of approval for the project require
landscaping to further reduce visual impacts. As a practical matter, the
infrastructure necessary to support the two new residential units has been
completed but the units will pay the City's Public Facilities Fee and Water
Capacity charges, ensuring that they contribute their fair share towards supporting
infrastructure. The relatively modest changes to the project do not substantially
change the project, its relationship with the City's growth management program
or the magnitude of the project's economic effects on the City.
Section 4. Based on the findings set forth in this Resolution and the evidence in the staff
report, the above -referenced Findings, and all other Project applications considered by the
Planning Commission concurrently with the proposed amendment to the Development
Agreement, the Planning Commission hereby recommends that the City Council approve the
Third Amendment to Development Agreement, substantially in the form set form set forth at
Exhibit 1 hereto.
DULY AND REGULARLY ADOPTED on this 14th day of March, 2019 by the City of
Rohnert Park Planning Commission by the following vote:
AYES: J NOES: ® ABSENT: 0 ABSTAIN: O
BLANQUIE B(# �IUDICE AHAYDON ORLOFF
City of Rohnert Park Planning Commission
Attest:
Recor ng Secretary
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Rohnert Park
130 Avram Avenue
Rohnert Park, CA 94928
Attention: City Clerk
(Space Above This Line for Recorder's Use Only)
Exempt from recording fee per Gov. Code § 27383
THIRD AMENDMENT TO
DEVELOPMENT AGREEMENT
THIS THIRD AMENDMENT TO DEVELOPMENT AGREEMENT ("Third
Amendment") is entered into as of , 2019, by and among PENN GROVE
MOUNTAIN, LLC, a California Limited Liability Company ("Developer") and the CITY OF
ROHNERT PARK, a California municipal corporation ("City"). City and Developer are
sometimes referred to herein as a "Party" and collectively as "Parties."
RECITALS
A. The City of Rohnert Park and Redwood Equities, LLC, Developer's predecessor -
in -interest ("Redwood Equities"), entered into that certain Development Agreement, as of
December 7, 2010, recorded on December 15, 2010, as Instrument No. 2010114199 in the Official
Records of Sonoma County ("Original Development Agreement"), with respect to that certain
real property described therein and in Exhibit A, attached hereto and incorporated herein by this
reference (the "Property").
B. Among other things, Section 4.12(C) of the Original Development Agreement
included a requirement for Redwood Equities to construct and install a water storage tank, as
described in the Original Development Agreement (the "Water Tank").
C. The City and Redwood Equities entered into that certain First Amendment to
Development Agreement dated December 9, 2014, and recorded on September 29, 2015, as
Instrument No. 2015085465 in the Official Records of Sonoma County, to, among other things,
revise the specifications for the Water Tank (the "First Amendment").
D. On September 9, 2016, Redwood Equities and Developer entered into an
Assignment and Assumption Agreement recorded in the Official Records of Sonoma County as
Instrument No. 2017039425, whereby Redwood Equities assigned all rights and obligations of the
Development Agreement to Developer, Penn Grove Mountain, LLC, and Developer assumed all
rights and obligations of the Development Agreement.
E. Thereafter, the City and Developer entered into that certain Second Amendment to
Development Agreement dated February 28, 2018 and recorded on February 28, 2018, as
Instrument No. 2018013757 in the Official Records of Sonoma County, to revise certain conditions
associated with the timing of the construction of the Water Tank (the "Second Amendment").
The Original Development Agreement as amended by the First Amendment and the Second
Amendment may be collectively referred to herein as the "Development Agreement."
F. The parcel on which the Water Tank was proposed to be located was dedicated to
City as Parcel B on the Final Map for the Southeast East Estates Subdivision recorded on
October 25, 2016 at Book 781 of Maps, Pages 31 through 38, in the Office of the County
Recorder of the County of Sonoma (the "Water Tank Parcel").
G. On November 26, 2016, the City revised its development impact fee program,
rescinded its "Per Acre Development Fee" and adopted a Water Capacity Charge, with
Resolution 2016-112, which is applicable to all new development, including Developer's Project
(as defined in the Development Agreement), and which funds critical water system
infrastructure, including water tanks (the "Water Capacity Charge"). The City also secured
title to an elevated water tank site east of Petaluma Hill Road, which is large enough to
accommodate two new water tanks and alleviates the need for the Water Tank.
H. Given the new Water Capacity Charge and water tank site, City has agreed that
Developer no longer needs to construct the Water Tank. A new transmission line used to convey
potable water from the Sonoma County Water Agency aqueduct to the Property has been added
to the City's Capital Improvement Program to provide water to portions of the Project (the
"Water Transmission Line").
I. Developer has submitted applications to create two additional single-family lots
on the Water Tank Parcel, thus increasing the number of residential units in the Project from 475
to 477.
J. The Parties now desire to enter into this Third Amendment to Development
Agreement to: (1) confirm and document Developer's payment to City of the Water Capacity
Charge and provide for certain credits to Developer for funding expended in connection with the
Water Tank; (2) document the increase in residential units from 475 to 477; (3) remove
Developer's obligation to construct the Water Tank and add provisions regarding the
construction of the Water Transmission Line; and (4) provide for City's reconveyance to
Developer of the Water Tank Parcel.
AGREEMENT
NOW, THEREFORE, in consideration of the promises, covenants and provisions set forth
herein, the receipt and adequacy of which is hereby acknowledged, the Parties agree as follows:
1. Defined Terms. All capitalized terms used and not otherwise defined in this Third
Amendment shall have the same meaning as in the Development Agreement. Defined terms in
the Recitals above are hereby added to the Development Agreement. The Parties acknowledge
and agree that all references in the Development Agreement to "RWE," referring to Developer's
predecessor -in -interest, Redwood Equities, shall now be replaced with a reference to "PGM," to
refer to PENN GROVE MOUNTAIN, LLC, a California Limited Liability Company, the current
Developer.
2. Amendment of Section 3.04. A new sentence is added to the end of Section 3.04
of the Development Agreement to read as follows:
"The Project includes two units that are not provided allocations under the
City's Growth Management Program and will need to pursue building permits
through the City's standard procedures."
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3. Amendment of Section 4.01(C). Section 4.01(C) of the Development Agreement is
hereby deleted and amended in its entirety to read as follows:
"C. Notwithstanding any other provisions of this Agreement, including
Section 3.01 on Vested Rights, City may charge and Developer agrees to pay all
City fees and charges related to water and sewer ("Water/Sewer Fees"), which are
in force and effect on a City-wide basis at the time those Water/Sewer Fees are
payable at the rates then in effect. Developer agrees and acknowledges that it is
subject to payment of the Water Capacity Charges, at the rate in effect at the time
such charges are due."
4. Amendment of Section 4. t2(C) of the Development Agreement. Section 4.12(C)
of the Development Agreement is hereby deleted and amended in its entirety to read as follows:
"C. Construction of Water Transmission Line. City intends to construct
the Water Transmission Line, which will serve the Project. In the event that City
has not completed the Water Transmission Line prior to Developer's desire to pull
building permits for any commercial or multi -family portion of the Project,
Developer shall enter into a Public Improvement and Fee Credit Agreement with
City, in a form approved by City, prior to the issuance of any commercial or multi-
family building permit. Among other things, the agreement shall provide for
Developer's receipt of water capacity charge credits for the costs of construction of
the Water Transmission Line up to six hundred six thousand dollars ($606,000).
The Water Transmission Line must be completed and accepted by City prior to the
issuance of any building permits for any commercial or multi -family portion of the
Project."
5. Addition of New Sections 4.15 Rep-ardinp Reconveyance of Water Tank
Parcel. Section 4.15 is hereby added to the Development Agreement as follows:
"Section 4.15 Reconveyance of Water Tank Parcel. City agrees to transfer
to Developer and Developer agrees to purchase from City the Water Tank Parcel
pursuant to the terms of this Section 4.15. In consideration for the City's transfer
of the Water Tank Parcel, Developer has agreed to pay City the amount of one
hundred thousand dollars ($100,000.00) (the "Water Tank Purchase Price"),
which represents the fair market value of the Water Tank Parcel.
Within 30 days of the recordation of this Third Amendment, Developer
shall submit the Water Tank Purchase Price to City in immediately available funds
and City shall immediately thereafter record a Grant Deed transferring title to the
Water Tank Parcel to Developer. Developer acknowledges it was the prior owner
of the Water Tank Parcel and is making and relying upon its own knowledge and
investigation of the physical, environmental, economic and legal condition of the
Water Tank Parcel, and is not relying upon any representations and warranties of
City. Developer specifically undertakes and assumes all risks associated with the
Water Tank Parcel and is purchasing the Water Tank Parcel in its "as is" condition.
Developer assumes any and all risk associated with the physical, environmental,
economic or legal condition of the Water Tank Parcel."
6. Addition of New Sections 4.16 Regarding Water Capacity Charge Credits.
Section 4.16 is hereby added to the Development Agreement as follows:
3
"Section 4.16 Water Capacity Charge Credits. City recognizes that
Developer has incurred certain costs in planning for and designing the Water Tank
and will provide Developer with Water Capacity Charge credits in an amount not
to exceed one hundred sixty eight thousand five hundred seventy five dollars and
sixty-three cents ($168,575.63) (the "Water Capacity Charge Credits").
Application of Water Capacity Charge Credits is contingent upon the Developer's
submission of documentation of costs, acceptable to the City Engineer.
The Water Capacity Charge Credits shall be applied against the Water Capacity
Charges that would otherwise be applicable to the Project, as the result of
construction on the Property. Developer shall be entitled to receive Water Capacity
Charge Credits at the time of issuance of building permits for construction on the
Property. The City shall keep an accounting of the balance of Water Capacity
Charge Credits and City's obligation to extend credits shall expire upon the
available balance reaching $0.00.
The Water Capacity Charge Credits shall run with the land and may be
credited only for development of the Project on the Property, provided that
Developer may allocate the use of the Water Capacity Charge Credits among
components of the Project. Developer may authorize the assignment of all or
portions of the Water Capacity Charge Credit balance in writing, with the consent
of the City, provided that Water Capacity Charge Credits may not be assigned
outside the boundaries of the Property and the Water Capacity Charge Credits are
fully utilized on the development of the Property."
7. Deletion of Exhibits E and F. Exhibits E and F, regarding the Water Tank, also
referred to as the Water Storage Facility, are hereby intentionally omitted.
8. Effect of Amendment. Except to the extent the Development Agreement is
modified by this Third Amendment, the remaining terms and provisions of the Development
Agreement shall remain unmodified and in full force and effect. In the event of a conflict
between the terms of the Development Agreement and the terms of this Third Amendment, the
terms of this Third Amendment shall prevail.
9. Counterparts. This Third Amendment may be executed in counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
Amendment.
10. Effective Date. This Third Amendment is effective upon its recordation with the
Sonoma County Recorder's Office. This Third Amendment shall be recorded within ten days after
the effective date of the ordinance approving this Third Amendment.
[Intentionally left blank. Signatures continue on following page.]
C!
IN WITNESS WHEREOF, this Third Amendment has been entered into by and between
Developer and City as of the day and year first above written.
Approved as to Form:
By:
City Attorney
Attest:
By:
City Clerk
CITY:
City of Rohnert Park, a California municipal
corporation
City Manager
DEVELOPER:
Penn Grove Mountain, LLC
a California limited liability company
By:_
Title:
5
ACKNOWLEDGMENTS
A notary public or other officer completing this certificate verifies only the identity of the individual who
signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that
document.
STATE OF CALIFORNIA
COUNTY OF
On . _, 20 before me, , Notary Public,
personally appeared , who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature:
******************************
(seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who
signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that
document.
STATE OF CALIFORNIA
COUNTY OF
On , 20 before me, , Notary Public,
personally appeared who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Acknowledgment
Signature: (seal)
Exhibit A
Legal Description of the Property
[to be inserted]
Exhibit A