15593-06 TG Memo
PROJECT TRIP GENERATION
Table 1 summarizes the Project trip generation as evaluated in the 2024 Traffic Study. The proposed Project is anticipated to generate 406 two-way trips per day with 21 AM peak hour trips and 24 PM peak hour trips (actual vehicles). Intersection operations analysis for an industrial project must be evaluated using the passenger car equivalent (PCE) trip generation consistent with the City’s Guidelines. As such, the Project’s trip generation in PCE is also summarized in Table
1. The Project is anticipated to generate 604 two-way PCE trips per day with 29 PCE AM peak hour trips and 32 PCE PM peak hour trips.
TABLE 1: PROJECT TRIP GENERATION
EXISTING TRIP GENERATION
In an effort to understand the existing traffic associated with 100% occupancy of the existing office use, the trip generation rates used for this assessment are based upon information collected by the Institute of Transportation Engineers (ITE) as provided in their Trip Generation Manual (11th Edition, 2021). General Office (ITE Land Use Code 710) land use category has been used to calculate the trip generation for the existing 150,626 square feet of available office space.
The trip generation summary illustrating daily, and peak hour trip generation estimates for the existing uses are shown in Table 2 along with the applicable trip generation rates. As shown in Table 2, 150,626 square feet of general office use generates a total of 1,634 two-way trips per day with 228 AM peak hour trips and 217 PM peak hour trips.
Land Use Quantity Units1 In Out Total In Out Total Daily Actual Vehicles:
High-Cube Cold Storage Warehouse 191.394 TSF
Passenger Cars: 15 1 16 4 14 18 262
2-axle Trucks: 1 1 2 1 1 2 50
3-axle Trucks: 0 0 0 0 0 0 16
4+-axle Trucks: 1 2 3 2 2 4 78
Total Truck Trips (Actual Vehicles): 2 3 5 3 3 6 144
Total Trips (Actual Vehicles)2 17 4 21 7 17 24 406
Passenger Car Equivalent (PCE):
High-Cube Cold Storage Warehouse 191.394 TSF
Passenger Cars: 15 1 16 4 14 18 262
2-axle Trucks: 1 2 3 1 2 3 76
3-axle Trucks: 0 1 1 1 0 1 32
4+-axle Trucks: 3 6 9 5 5 10 234
Total Truck Trips (PCE): 4 9 13 7 7 14 342
Total Trips (PCE)2 19 10 29 11 21 32 604
Note: Due to rounding, some of the numbers reflected in the table to not reflect actual calculated amounts. 1 TSF = Thousand Square Feet
2 Total = Passenger Cars + Trucks
AM Peak Hour PM Peak Hour
Alicia Velasco, City of Cypress
February 20, 2024
15593-06 TG Memo
TABLE 2: EXISTING TRIP GENERATION
TRIP GENERATION COMPARISON
Table 3 shows the trip generation comparison between the proposed Project uses and the existing office use (assuming 100% occupancy). The resulting net change in trips is identified in Table 3. As shown, the proposed Project is anticipated to generate 1,030 fewer two-way PCE trips per day with 199 fewer PCE AM peak hour trips and 185 fewer PCE PM peak hour trips as compared to the existing office use (resulting in a net reduction).
TABLE 3: TRIP GENERATION COMPARISON
If you have any questions or comments, I can be reached at [email protected].
ITE LU AM Peak Hour PM Peak Hour
Land Use1 Units2 Code In Out Total In Out Total
General Office (based on average rates) TSF 710 1.34 0.18 1.52 0.24 1.20 1.44 10.84 Land Use Quantity Units2 In Out Total In Out Total Daily General Office3 150.626 TSF 201 27 228 37 180 217 1,634 1 Trip Generation Source: Institute of Transportation Engineers (ITE), Trip Generation Manual, Eleventh Edition (2021). 2 TSF = Thousand Square Feet
3 100% occupancy of the 150,626 square foot office building.
Daily
AM Peak Hour PM Peak Hour
Land Use In Out Total In Out Total Daily
Proposed Project
Passenger Cars: 15 1 16 4 14 18 262
Total Truck Trips (PCE): 4 9 13 7 7 14 342
Total Trips (PCE) 19 10 29 11 21 32 604
Existing Use: General Office
Passenger Cars: 201 27 228 37 180 217 1,634
Total Truck Trips (PCE): 0 0 0 0 0 0 0
Total Trips (PCE) 201 27 228 37 180 217 1,634
Variance
Passenger Cars: -186 -26 -212 -33 -166 -199 -1,372
Total Truck Trips (PCE): 4 9 13 7 7 14 342
Total Trips (PCE) -182 -17 -199 -26 -159 -185 -1,030
AM Peak Hour PM Peak Hour
9200 Valley View Street, Cypress, CA 90630 714-484-7126 [email protected] cypresscollegefoundation.org November 7, 2024
Alisha Farnell
City Clerk
City of Cypress
5275 Orange Avenue
Cypress, CA 90630
[email protected]
Dear Ms. Farnell,
On behalf of the Cypress College Foundation, we would like to express our support for Goodman as a partner in the community. As an organization dedicated to meeting the needs of both our students and campus, we see tremendous value in the good work that Goodman does in the community.
The Cypress College Foundation sees the results of Goodman’s work providing job opportunities for our students and future partnership possibilities that align with our mission. Their ongoing commitment to the community, demonstrated by their support of the Cypress College Foundation and other local organizations, further solidifies them as a valuable partner.
We believe that Goodman’s projects will contribute to the long-term vitality of Cypress, strengthening the local economy while providing meaningful opportunities for education and workforce development. The Cypress College Foundation fully supports Goodman’s efforts in the community.
Sincerely,
Howard Kummerman
Executive Director
H O M E R E A L E S T A T E
R E A L E S T A T E N E W S W E E K L Y N E W S
Goodman Pays $128.3M For Cypress Office Park
B Y S T A F F - A U T H O R
O C T O B E R 1 1 , 2 0 2 1 290
Part of Cypress Technology Center
The local office of Goodman Group has bought one of the largest business parks in the city of Cypress, with an eye on redeveloping the site as a new industrial project, which contains a large amount of office space.
The Australia-based firm, a $26 billion-valued industrial investor and developer that operates its North American operations out of Irvine, recently paid $128.3 million for the Cypress Technology Center, a two-building campus on about 26 acres at 5757 and 5665 Plaza Drive.
The site is north of Katella Avenue, a few blocks from the Los Alamitos Race Course that’s located in the city.
The five-story office component of the center, at 5665 Plaza Drive, runs about 150,000 square feet. The larger building at the site, at 5757 Plaza Drive, counts another 331,000 square feet of office and industrial space.
The properties were built about 30 years ago.
The campus’ larger tenants include UnitedHealth Group, which has other buildings in the vicinity, as well as Trident University and Toyo Tires, according to CoStar Group Inc. records.
Tops in City
New York-based DRA Advisors LLC is the seller of the property, in what’s the largest reported real estate deal in Cypress this year.
Goodman paid about $267 per square foot for the existing buildings at the campus, or about $110 per land square foot for the 26-acre site, which counts an abundant amount of surface parking space and is located in an area with a fair amount of industrial properties nearby. “This property is another example of Goodman’s global strategy to provide strategic sites in gateway city locations close to end consumers and logistics infrastructure,” Lang Cottrell, regional director of the southwest region for Goodman Group US, told the Business Journal.
Cushman and Wakefield’s Jeff Chiate, Rick Ellison, and Rusty Smith brokered the deal on behalf of the buyer and seller; CBRE’s Tom Sheets was also involved in the transaction.
11/7/24, 2:52 PM Goodman Pays $128.3M For Cypress Office Park - Orange County Business Journal https://www.ocbj.com/news/weekly-news/goodman-pays-1283m-cypress-office-park/ 1/2 Office Conversions Continue
The new owners are expected to soon kick off the entitlement process to redevelop the two buildings into new industrial uses.
Goodman is “currently evaluating the property for an adaptive reuse or potential new redevelopment opportunity,” according to Cottrell.
The company declined to include specifics of the potential redevelopment; the entitlement process could ultimately change the size, scale and feasibility of the project. There are no records of the proposed project filed with the city yet.
It wouldn’t be the only example of an older area business park with office components getting reworked into a new industrial project.
Elsewhere in the city, just off Katella Avenuer, industrial developer Duke Realty plans a new last-mile distribution facility for Amazon on a portion of the former base of Mitsubishi Motors.
Last week’s Business Journal reported on L.A.-based Rexford Industrial paying close to $192 million for a trio of OC sites, including office campuses in Santa Ana and Orange, which it expects to eventually turn into industrial projects.
Busy Boulevard
Cypress has been a beacon for real estate investors of all types in recent months.
The multibillionaire owners of the Panda Express restaurant chain this summer paid $22 million for a nearby office building at 10810 Walker St., apparently as a personal investment for the family.
The Walker Street office is adjacent to a 7-acre site just off Katella Avenue that Irvine homebuilder Melia Homes bought for a new townhome project, dubbed Belmont.
The new community will hold 135 townhomes, and will go up on land that was once used for Los Alamitos Race Course’s overflow parking.
Melia paid a reported $30.3 million for the site, in a deal that closed in July.
Goodman’s Growth
Goodman is currently heading the largest industrial project on the books for Orange County: a 1.5 million-square-foot logistics campus at the former Kimberly-Clark tissue paper manufacturing site in Fullerton.
Construction is expected to be completed by spring 2022.
Goodman bought the site at the end of 2019 for $202 million. 11/7/24, 2:52 PM Goodman Pays $128.3M For Cypress Office Park - Orange County Business Journal https://www.ocbj.com/news/weekly-news/goodman-pays-1283m-cypress-office-park/ 2/2 October 20, 2021 Bianca Barragán, Southern California (https://www.bisnow.com/author/biancabarragn-350667) (mailto:[email protected]) A convergence of the bottom-up softening of certain parts of the office market, the white-hot demand for Class-A industrial space that is close to consumers and the lack of available space for that use has caused industrial developers to, at least temporarily, get into the office business.
Developers like Goodman (https://www.bisnow.com/tags/goodman), Rexford Industrial Realty (https://www.bisnow.com/tags/rexfordindustrial-realty) and Black Creek Group (https://www.bisnow.com/tags/black-creek-group) are looking for and acquiring office space that is zoned industrial, even if it has tenants in it, with plans to replace those offices with new industrial space once leases are up.
Rexford spent roughly $105.3M on the Behr paint company headquarters in Santa Ana last month, the Orange County Business Journal reported (https://www.ocbj.com/news/2021/oct/04/office-parks-flux/), and $70M DevelopersEyeing IndustriallyZoned
Offices AsLast-Mile Opportunities
on the Volt Campus (https://www.bisnow.com/orangecounty/news/industrial/rexford-industrial-volt-orange-hines-oaktreecapital-logistics-110148) in the city of Orange in late August — both office properties with tenants with years left on their leases — with plans to turn both into industrial space.
“We had never really focused on doing office conversions before this pandemic,” Rexford Industrial Realty Executive Vice President of Investments and Acquisitions Patrick Schlehuber
(https://www.bisnow.com/tags/patrick-schlehuber) told Bisnow.
In the past, industrial properties were getting purchased for office developments, because office was the higher-revenue use, Schlehuber said.
That isn't always the case now.
Over the past decade, the demand for industrial space has been intense, especially spaces close to consumers that can fill in the so-called last mile of the e-commerce equation. But the coronavirus pandemic poured gasoline on the fire of industrial demand, RCLCO (https://www.bisnow.com/tags/rclcoreal-estate-advisors) Managing Director of Strategic Consulting Eric Willett (https://www.bisnow.com/tags/eric-willett) said. Over the past two years, interest in any available parcel and weighing its potential for industrial usage has definitely increased, Willett said.
“The fact that the end user or the supplier of goods to the customer is wanting and needing to be closer to the population is leading groups like ourselves to look at these types of opportunities in a different way,” said Lang Cottrell (https://www.bisnow.com/tags/lang-cottrell), Southwest regional director for Goodman North America.
CRE professionals said that although this isn’t necessarily a new concept, these deals have become increasingly popular as the availability of land in these infill areas becomes ever scarcer, as the prices for industrial land rise, and as the strong demand for industrial space intersects with the weakening demand for certain kinds of office space.
In Orange County (https://www.bisnow.com/tags/orange-county), where a number of these deals have taken place, CBRE found the Q3 vacancy rate (https://www.cbre.com/insights/figures/orange-county-industrialmarketview-q3-2021) for industrial was 1.3% — a record low. Another record was set by the 2.3M SF of projects under construction “as developers respond to record low vacancy paired with insatiable demand from occupiers,” the report’s authors wrote.
In the South Bay area of LA County, where these deals are also playing out and where developers are looking for prospective spaces in Carson, Gardena and Torrance, the overall Q3 vacancy rate was 0.6%, CBRE reported (https://www.cbre.com/insights/figures/greater-los-angeles-industrialmarketview-q3-2021? utm_source=CampaignLogic&utm_medium=email&utm_campaign=GLA+Marketvi In LA overall, industrial and logistics capital markets are experiencing record activity, thanks to e-commerce (https://www.bisnow.com/tags/ecommerce) growth, CBRE said.
Office, especially outside of the highly amenitized low-rise campuses of the Westside and premier areas and trophy spaces, has not been experiencing the same boom. In Torrance, CBRE’s Q3 count found office vacancy at 14% (https://www.cbre.com/insights/figures/los-angeles-office-marketview-q3- 2021?
utm_source=CampaignLogic&utm_medium=email&utm_campaign=GLA+Marketvi but industrial vacancy at 0.3%
Cushman & Wakefield Capital Markets Group Vice Chair Jeff Cole (https://www.bisnow.com/tags/jeff-cole) said the market for low-rise commodity office buildings, like the ones that are favored in office-toindustrial transactions, has struggled significantly. “The rates have gone down, vacancy has gone up and the alternative for that office owner is to try to re-lease the building in a very soft market or try to sell the building,” Cole said.
The pricing on those two choices is so much lower than what owners can expect if they sold to an industrial developer, so when the option arises, office owners bite.
“They invariably decide that it is a good alternative strategy for them to sell to an industrial developer,” Cole said.
There are some commonalities in what developers look for. Industrial zoning makes a property attractive, eliminating the hurdle of having to rezone the site, which can push out the timeline for industrial transformation.
South Bay areas that have lots of industrial space with offices mixed in or similar areas in North Orange County or South Orange County, where Lake Forest is, are ripe for these kinds of office-to-industrial transitions because the underlying properties are often zoned for industrial, Cole said.
A joint venture between Western Realco
(https://www.bisnow.com/tags/western-realco) and RREEF Property Trust (https://www.bisnow.com/tags/rreef) snapped up four neighboring office buildings totaling about 222K SF in South Orange County’s Lake Forest in April. The JV plans to turn them into 240K SF of new Class-A industrial space once the office tenants have moved on. That same month, an adjacent roughly 145K SF office building in that same park sold to Black Creek Group for $34.9M, public records show.
Buyers with office-to-industrial plays in mind don't see tenants in the building as a hurdle. Though developers are definitely looking at how long they are slated to stay in the building, several of these deals included office buildings with long-term leases in place.
Goodman (https://www.bisnow.com/tags/goodman) purchased the Cypress Technology Center with a 330K SF industrial building on the site, but the remaining third of the site is occupied by a 150K SF office building. Both buildings have leases in play for six to 12 months, which provides Goodman some cash flow while it figures out how best to use the space, Cottrell said.
Location in an industrial area is ideal because then the new industrial use fits in. Infill sites are attractive because they are close to people, but those people don’t always want to be close to a last-mile-type site. Several of the industry professionals who spoke to Bisnow mentioned the importance of being sensitive to the community throughout the planning phases of these projects, as community pushback against them can complicate city approvals.
Cottrell said that at the Cypress site, it is exploring whether it could adaptively reuse the property, which would help get it online faster and with less environmental impact. But it is also evaluating a possible redevelopment of the site with a three-building campus of Class-A industrial space.
While there are clearly a fair amount of these types of properties in infill areas where these deals make financial sense, it isn't a trend that will be cropping up in every neighborhood. Though these deals aren't confined to Orange County by any means, the economics that make office-to-industrial attractive don’t work everywhere. In Culver City
(https://www.bisnow.com/tags/culver-city), West LA
(https://www.bisnow.com/tags/west-la) and other markets where tech, media and entertainment tenants are still attracted to office space (https://www.bisnow.com/los-angeles/news/office/los-angeles-officesublease-space-110540), these types of deals don’t pencil. “These aren’t happening in Playa Vista or Santa Monica,” Cole said.
Contact Bianca Barragán at [email protected]
(mailto:[email protected])
See Also: Report: PREIT Sells Exton Square Mall To Developer With Plans For Mixed-Use Makeover (/philadelphia/news/commercial-real-estate/preit-sellsexton-square-mall-to-developer-with-plans-for-mixed-use-126690) Related Topics: Patrick Schlehuber (https://www.bisnow.com/tags/patrick-schlehuber), Jeff Cole (https://www.bisnow.com/tags/jeff-cole), Western Realco (https://www.bisnow.com/tags/westernrealco), RREEF Management (https://www.bisnow.com/tags/rreef-management), Goodman Group (https://www.bisnow.com/tags/goodman-group), Lang Cottrell (https://www.bisnow.com/tags/lang- cottrell), Black Creek Group (https://www.bisnow.com/tags/black-creek-group), Eric Willett (https://www.bisnow.com/tags/eric-willett), Rexford Industrial Realty (https://www.bisnow.com/tags/rexford-industrial-realty) CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Special 4.
FROM: Fred Galante, City Attorney
DATE: 11/18/2024
SUBJECT: Approve a Resolution Adopting Procedural Requirements as Prerequisites for Any Council Member Wishing to Retain Separate Legal Counsel to Represent Them on City-Related Matters
RECOMMENDATION
Approve a Resolution adopting procedural requirements as prerequisites for any Council Member wishing to retain separate legal counsel to represent them on City-related matters.
DISCUSSION
The City has experienced circumstances where a Council Member unilaterally retained separate legal counsel purportedly related to a City matter and thereafter sought reimbursement from the City for those legal fees. Allowing Council Members to unilaterally retain separate legal counsel and expose the City to any obligation to reimburse him/her for such fees is an improper use of City resources insofar as the City Council is the only body authorized to retain legal counsel, control legal expenses, mitigate legal risks to the City and approve the expenditure of funds. To address these circumstances, it is recommended that the City Council establish procedures for all Council Members to follow before they may retain separate legal counsel to address any City-related legal issues as a condition of the City having any legal obligation to consider any request for reimbursement of any legal fees. The recommended Resolution establishes these procedures, including:
Providing a written explanation for the request
Providing a budget for the legal representation
City Council consideration of complete requests at a public meeting Ensuring the requested legal representation is sufficiently qualified and charges a reasonable rate
Ensuring the legal representation is consistent with the City’s interests and proceeds in a cost-effective manner
BUDGET IMPACT
None.
LEGAL REVIEW
The City Attorney prepared the recommended Resolution.
APPROVED BY: Peter Grant, City Manager
Attachments
Resolution
01004.0002/932049.2 1
RESOLUTION NO. _________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
AND ACTING AS EX-OFFICIO GOVERNING BOARD OF DIRECTORS
OF THE CYPRESS RECREATION AND PARK DISTRICT, ADOPTING
PROCEDURAL REQUIREMENTS AS PREREQUISITES FOR ANY
COUNCIL MEMBER WISHING TO RETAIN SEPARATE LEGAL
COUNSEL TO REPRESENT THEM ON CITY-RELATED MATTERS
RECITALS
WHEREAS, the City of Cypress has experienced circumstances where a City Council Member has unilaterally retained separate legal counsel purportedly related to a City matter and thereafter sought reimbursement from the City for those legal fees; WHEREAS, allowing Council Members to unilaterally retain separate legal counsel and expose the City to any obligation to reimburse him/her for such fees is an improper use of City resources insofar as the City Council is the only body authorized to retain legal counsel, control legal expenses and any mitigate legal risks to the City; and WHEREAS, for these reasons, it is necessary for the City Council to establish procedures for all Council Members to follow before they may retain separate legal counsel to address any City-related legal issues as a condition of the City having any legal obligation to consider any request for reimbursement of any legal fees in connection thereto.
NOW THEREFORE, The City Council of the City of Cypress hereby resolves as follows:
Section 1. The following prerequisites shall apply to any Council Member wishing to retain separate legal counsel to represent him/her related to any City matter, under any circumstance whether due to the Council Member being personally named in a lawsuit related to City business, fearing personal legal exposure, believing there is a risk of a conflict of interest in having the City’s legal counsel represent the Council Member’s interests, or any other reason. Fully complying with the following prerequisites shall be a condition to the City having any legal obligation to consider any request for reimbursement of any legal fees for a Council Member’s separate legal counsel:
a. The Council Member wishing to retain separate legal counsel shall explain in writing to the City Manager the request to retain separate legal counsel to represent the Council Member’s interests, including an explanation as to why the City Attorney is unable to handle the matter at issue, which explanation shall be sufficiently detailed for the City Manager to analyze the issue and confer with the City Attorney as the City Manager deems necessary. The City Manager shall have sole discretion to determine if the explanation is sufficient and may require the Council Member to provide additional information. b. The request shall include a detailed background of the separate legal counsel the Council Member seeks to retain, that separate legal counsel’s experience and expertise, hourly rates, and estimate of the legal fees anticipated to be incurred in the matter.
01004.0002/932049.2 2
c. If the City Manager deems that the request contains all the information necessary to analyze the request, the City Manager shall present the request to the City Council, or to a City Council subcommittee established for the purpose of assessing the request.
d. After considering the request, and any recommendation from the City Manager, City Attorney and/or City Council subcommittee established for the purpose of assessing the request, the City Council shall consider the request, and in its sole discretion, may approve or reject the request by the Council Member for separate legal counsel or request additional information. Any approved request shall be subject to the hourly rates and may not exceed the amount of fees approved by the City Council.
e. If such legal representation is approved by the City Council, the Council Member shall provide copies of all legal invoices to the City Manager at the same time as they are provided to the Council Member by the City Councilapproved separate legal counsel. f. If the Council Member’s City Council-approved separate legal representation exceeds the City Council-approved legal fees budget, the Council Member having retained the separate legal counsel must request additional funding following the process established in this Resolution.
g. The City Council-approved separate legal counsel shall confer with the City Attorney in a manner to assure the legal representation provided by such separate legal counsel is consistent with the City’s interests and proceeds in a cost-effective manner, and does not pursue litigation tactics or actions not supported by the City Attorney or City Council. If the Council Member represented by City Council-approved separate legal counsel disagrees with the City Attorney’s direction/decision in this regard, they may appeal to the City Council or to a City Council subcommittee established for the purpose of assessing the request.
Section 2. Any request by a Council Member for City Council approval of separate legal counsel shall only apply to matters that are directly related to City business. The City Council retains sole discretion to determine whether any request complies with this requirement.
Section 3. Notwithstanding any approval by the City Council of a Council Member’s request for separate legal counsel, should the City Council find, in its sole discretion, that the Council Member’s interest have diverged from those of the City or that the Council Member acted outside the scope of his/her duties as a Council Member, the City Council retains the right to terminate any approval granted under the authority granted herein and seek restitution of any legal fees paid by the City in connection with such approval.
Section 4. The City shall not be responsible for payment of any legal fees for an attorney retained by a Council Member that does not strictly comply with the requirements of this Resolution.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Cypress, and acting as ex-officio governing Board of Directors of the Cypress Recreation and Park District, at a special meeting held on the ____ day of November 2024.
01004.0002/932049.2 3
_______________________________
MAYOR OF THE CITY OF CYPRESS
ATTEST:
__________________________________
CITY CLERK OF THE CITY OF CYPRESS
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
I, Alisha Farnell, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a special meeting of the said City Council held on the ___ day of November 2024; by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTENTION: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
__________________________________
CITY CLERK OF THE CITY OF CYPRESS