CITY COUNCIL AGENDA REPORT
City of Anaheim
PLANNING AND BUILDING DEPARTMENT
200 S. Anaheim Blvd.
Suite #162
Anaheim, CA 92805
Tel: (714) 765-5139
Fax: (714) 765-5280
www.anaheim.net
DATE: DECEMBER 20, 2022
FROM: PLANNING AND BUILDING DEPARTMENT
SUBJECT: ANNUAL REVIEW OF DEVELOPMENT AGREEMENT NO.
2019-00001 FOR 1600 WEST LINCOLN AVENUE MIXED USE
PROJECT (MILLS FORD SITE)
ATTACHMENT (Y/N): YES ITEM # 07
RECOMMENDATION:
That the City Council, by Motion, determine, on the basis of the evidence submitted by MBK Rental Living, LLC (MBK), that the property owner has complied in good faith with the terms and conditions of Development Agreement No. 2019-00001 for the 2022 review period for the 1600 West Lincoln Avenue mixed-use project (former Mills Ford Site).
DISCUSSION:
A Development Agreement is a contract between the City and property owner that provides certainty to the developer that the approved project will be exempt from future changes to zoning laws and requires the developer to provide benefits to the City in exchange for that certainty. On June 23, 2020, the City of Anaheim and KNT I Enterprises, LLC (KNT) executed Development Agreement No. 2019-00001 (Agreement) associated with a mixed-used development consisting of 315 apartment units, a 2,031 square-foot leasing office, a 3,413 square-foot retail space, and a parking structure at the southwest corner of Lincoln Avenue and Loara Street (1600 West Lincoln Avenue) which is included as Attachment 3. The Agreement has a seven-year term that expires in 2027. The Agreement provides surety for the developer and includes a voluntary financial contribution in the amount of $300,000 to support the City’s affordable housing programs and projects which would be used at the City’s discretion to support affordable housing programs and projects.
Pursuant to the Agreement, the City Council is required to determine annually if the property owner has complied in good faith with the terms and conditions of the Agreement. Demonstration of good faith compliance includes conformance with all terms and schedules set forth in the Agreement. If the Council finds that the property owner has demonstrated good faith compliance, the review for that period is complete.
Annual Review of Development Agreement No. 2019-00001
December 20, 2022
The Agreement contains specific developer obligations. Attachment 2 is an Annual Review Report submitted by the property owner outlining the status of said obligations. MBK acquired the subject property from KNT I Enterprises, LLC, the original developer, on January 24, 2022.
MBK has named the project ZIA and it is currently under construction. At the close of escrow, MBK made the $300,000 Affordable Housing Payment to the City as required by Section 6.2 of the Development Agreement.
Staff has reviewed the terms of the Agreement (Attachment 3) and has determined that the property owner has complied with all applicable terms for this review period. Staff recommends that the City Council determine that the property owner has complied in good faith with the terms and conditions of the Agreement for this review period.
IMPACT ON BUDGET:
There is no budgetary impact. The property owners are paying the cost of this annual review.
Respectfully submitted,
Ted White
Planning and Building Director
Attachments:
1. Annual Review Letter
2. Annual Review Report
3. Development Agreement
4. Vicinity Map