3. MEMORANDUM OF
UNDERSTANDING TOPICS &
COMMUNITY INPUT
OVERVIEW
• MOU is a non-binding agreement between two or more parties that establishes policy objectives, business terms, roles and responsibilities, and procedures for a subsequent agreement or program.
• The Mill Site MOU contains the key factors involved in the preparation, review, and adoption of the planning & permitting needed to proceed with redevelopment of the Mill Site
• The MOU approach assures, prior to initiating the costly and timeconsuming formal planning process, that the proposed plan (Illustrative Plan) can be meet City policy objectives, address constraints, and attract the necessary private investment.
• On June 9th the City Council by Resolution initiated moving forward with the MOU.
• It is intended that the MOU process will also provide the basis of a settlement of the pending lawsuit
MOU TOPIC #1: KEY COMPONENTS OF LAND
USE PLANNING CONTEXT
Land Use Sub-Topics: (tonight’s topics)
1. Establishing an Optimal Approach to the
Entitlement Documents (Local Coastal Plan
Amendment, EIR, Financing Plan, and
Development Agreement)
2. Illustrative Plan Update
3. Conformance with Coastal Act Priorities and
City’s Local Coastal Plan
4. Rail-Related Land Use Regulations
MOU TOPIC #2: KEY FACTORS INFLUENCING
LAND USE & DEVELOPMENT
Exploration of the key factors influencing Mill Site land use
1. Precedent Images and Concept Studies to Define Planning and Design Opportunities and Intent
2. Further Resolving Site-Specific Development Constraints
3. Continued Cooperation with Other Regulating Agencies (e.g., DTSC, tribal interests, and RWQCB)
4. Linking the Pace and Scale of ‘Development Readiness’ to Realistic Market Demand-Driven Development
Opportunities
5. Creating Public Benefits and Market Value by Responding to Market Opportunities
MOU TOPIC #3 DOCUMENTING MILL SITE
INFRASTRUCTURE REQUIREMENTS AND
FINANCING STRATEGY
1. A Preliminary Site Improvement Program
2. A listing and evaluation of potential funding
sources and related financing strategies
3. Framework for an Agreement Regarding
Private and Public Funding Mechanisms
4. A Financial Feasibility Study
MOU TOPIC #4: IDENTIFYING SPECIAL
REAL ESTATE LAND TRANSACTIONS
1. These land transactions (sales, purchases, exchanges) are above and beyond the normal subdivision-related
dedications of rights-of-way
2. These transactions would be completed to:
• Adjust parcel boundaries to land use designations
• Provide for additional open space and parkland
• Implement the best solution for meeting hazardous
materials remediation
• Provide for mitigation of for various constraints
• Establish ownership of lands for Pomo Culture legacy
MOU TOPIC #5: ARTICULATING THE
FUNCTIONS AND TERMS OF THE MASTER
DEVELOPMENT AGREEMENT
• The Master Development Agreement is the overarching agreement between the City and the developer(s) that secures public benefits through ‘vesting’ of development rights (consistent with the Plan) and offering public financing mechanisms
• The Development Agreement underpins but does not overrule adopted plans, policies, and regulations
• The Development Agreement will establish financial obligations of the developer and create remedies for failure to meet terms of the Agreement.
• The Development Agreement is a durable document that ‘runs with the land’ (is a feature of title) adopted following completion of the Plan (LCP) and environmental review
MOU PROCESS & SCHEDULE
MOU Process was approved and budgeted by City Council on June 9th.
Each ‘Topic’ will be addressed in order involving:
• Technical efforts by Planning Team
• Negotiation with Mendocino Railways
• Consultations with affected agencies and organizations • Subsequent review by City Council and public
Following completion of the Topics a complete MOU will be assembled, reviewed, and considered for adoption by the City Council; acceptance will trigger formal application for LCP Amendment, environmental review, and other components.
The MOU Process will take several months to complete, at the least. A detailed schedule will be prepared in the coming month
4. ENTITLEMENT STRATEGY &
COASTAL POLICY ALIGNMENT
4. ENTITLEMENT STRATEGY &
TIMEFRAME
Comprehensive
Local Coastal Plan
Amendment
Public Review &
Comment
Coastal Commission
Review &
Certification
LCP Policy
Framework
Zoning Map
Amendments
Land Use Regulation
(Zoning
Amendments)
Other Applicable
Regulations
(Rail-Related, DTSC,
etc.)
Zoning Text
Amendments
Mill Site
Programmatic
Environmental
Impact Report
Mill Site
Development
Agreement
Infrastructure &
Mitigation Financing
Plan
Mill Site Master
Vesting Tentative
Subdivision Map
Mill Site Master
Facilities Program
Coastal
Development Permit
Financial Terms
Final Map
Approval
Individual
Development
CDP Application
Phase 3
Entitlement
Documents
Phase 4
Management of Phased
Development
Coastal Act
Environmental
Review
City Council
Direction &
Decisions
Technical
Environmental
Studies
Coastal Commission
Review & Appeal
Process
Coastal Commission
& Other Agency
Consultation
Financial Terms
Final Map
Approval
Individual
Development
CDP Application
Financial Terms
Final Map
Approval
Individual
Development
CDP Application
Rough Timeframe
2025-2026
2026-2027
2027-2028
2026-2027
2028
2028-2058
Coastal Policy Alignment
Coastal Act Priorities
• Coastal Access
• Open Space and Recreation
• Coastal Dependent Uses
• Resource Protection
• Protection of views
• 3 connections north of Pine Street
• One connection between Pine Street and
Oak Street
• 4 connections south of the Mill Pond.
• Process for financing and developing the
coastal access routes will be defined in both
the LCP amendment and the Development
Agreement.
• The Mill Pond area has no connection to the
coast/beach. Coastal access to the beach
could be required as part of the Mill Pond
Remediation project.
COASTAL ACCESS.
Multiple connections to Noyo Headlands
Park.
Consistent with previous Land Use Plans prepared
through previous community planning processes:
26 acres of open space north of Redwood Avenue
east of the Coastal Trail.
Mill Pond area, Ponds 1-4 and the forested areas
are open space (72 acres or 24% of MR’s
property).
Daylighting of the creek between Maple Street and
Pond 8.
New Open Space
Three new public parks (8.6 acres) on the
southern portion of the site.
OPEN SPACE & PARKS.
106 acres (35% of mr’s property) as
open space & parks.
Consistent with previous Land Use
Plans prepared through previous
community planning processes:
• 43 acres (14.6% of MR’s
property) designated for Highway
Commercial and a hotel
conference center, which are
coastal dependent uses.
• Noyo Center property (11 acres)
is a coastal dependent use,
however that site is not part of
this LCP amendment as it has
already been rezoned.
COASTAL DEPENDENT USES
Visitor serving, coastal related
industries, coastal recreation
• Land Use Plan designates known
wetlands in the central open space
configuration which is 72 acres or
24% of MR’s site.
• Site not surveyed for Coastal Act
wetlands.
• Based on aerial imagery parcels S9,
S10, S6, and S1 might have Coastal
Act wetland over a portion of each
parcel.
• No rare plant survey to date.
PROTECTION OF WETLANDS &
RARE PLANTS.
• The Coastal Act protects public views
from street corridors and public parks.
• The site will be analyzed for impacts to
ocean views as part of the LCP amendment
process.
• Potential views could be blocked with future
development from Alder, Madrone, and
Maple Streets and between Walnut and
South Street.
• The LCP amendment will establish view
corridors from public vantage points.
PROTECTION OF PUBLIC
VIEWS to and along the ocean.
• Protection of Cultural Resources.
• Protection of Water Quality.
• Retention of Infrastructure
Capacity (water, sewer, road
capacity) for Priority Coastal
Uses.
• Continue grid on to the Mill Site.
• Plan does not preclude creek
daylighting.
OTHER ITEMS
5. ILLUSTRATIVE PLAN UPDATE
6. ADDRESSING
RAILROAD-RELATED USES
POTENTIAL FRAMEWORK FOR REGULATING
RAIL-RELATED AND NON-RAIL-RELATED
USES & ACTIVITIES ON THE MILL SITE
• MR has tentatively agreed to
comply with State and local
regulations (building zoning
codes) without obtaining
permits.
• MR agrees it’s permit
exemption is for Railroad Uses
only.
• MR agrees that all NonRailroad-Related Uses would
be subject to City permitting.
• for mixed projects (train
station with a restaurant), the
restaurant would require a
permit.
Rail Related: Compliance
without Permits
Non-Rail: Permits Required
• Parcel R4 "Railroad Square."
• Parcel R7 "Skunk Station." MR
wants to relocate the Skunk Train
Station to this parcel.
• A dual loop of tracks.
• A "Trolley Only" track for an allelectric trolley from "Glass Beach Station" to the south side of the
site.
• "Glass Beach Station" would be a
secondary station and would
include a second story ocean view
restaurant.
POTENTIAL GEOGRAPHIC
EXTENT OF RAILROADRELATED USES
RAILROAD USES, NO
PERMITS
1. Development and operations related
to railroad tracks, signals, and
crossings
Construction of railroad infrastructure
such as ties, rail, other track materials,
switches, and crossings.
2. Development and operations related
to railroad facilities Construction and
improvement of stations, yards, shops,
transloading facilities, and ancillary facilities.
3. Construction and operation of
railroad equipment freight/passenger
equipment, maintenance of way equipment,
transloading equipment, as well as any
noise, horns, and emissions.
1. Facilities. Construction, renovation, and maintenance of buildings, such as hotels, restaurants, bars, retail stores, residential housing, and other commercial or
public facilities Installation, maintenance.
2. Utilities: installation of electrical water, sewage, stormwater, gas, and telecommunications utilities.
3. Roads. City streets, sidewalks, and public trails.
4. Parks, greenspace, and landscaping: This
encompasses the design, creation, and maintenance of
public parks, gardens, open spaces, and landscaping.
5. Events: public or private events such as festivals,
markets, parades, and community gatherings
6. Uses. Regulation of residential and business uses on the millsite.
7. Events.
NON-RAILROAD USES,
PERMITS REQUIRED
CITY'S PERMITTING PROCESS
• Coastal Development Permit.
Protects coastal resources (biological, wetlands,
cultural, public views, public access, water
quality…) while prioritizing visitor serving uses.
• Use Permit. Ensures compatibility between
uses where there is the potential for conflict
(noise, glare, traffic, odors, etc.).
• Design Review Permit. Ensures that new
development follows the City’s design guidelines.
• Variance. A variance allows a project to
proceed without compliance with one or more
development standards of the code under narrow,
legally prescribed circumstances.
• Sign Permit. Signs are regulated for size, location,
height, color, lighting and appearance.
• Limited Term Permit. Limited term permits
regulate special events and other short-term activities. • Zoning Clearance. For all projects, including
those which don’t require planning permits. City staff
review to ensure that a project complies with the zoning code prior.
• Building Permit. Ensures that new
construction complies with building, plumbing, mechanical and electrical codes.
ESTABLISH PERMIT EXEMPTIONS
IN THE LCP AMENDMENT
The City Could:
• Use Permits. Designate Railroad Uses as a “permitted use” by right in the use tables in Chapter 2 of the Coastal Land Use and Development Code.
• CDPs. Apply to the Coastal Commission for approval of a “CDP Categorical Exclusion Area” for Railroad uses in the purple zoning area.
• Design Review. Exempt Railroad Uses from Design Review in Chapter 7 of the CLUDC.
• Sign Permit. Exempt railroad from Sign Permit requirements in Chapter 3 of the CLUDC.
• The LCP amendment could include a map overlay illustrating the agreed to area of exemption and a General Plan policy which describes the purpose and extent of the exemption. • Through the LCP amendment process, the
City/Coastal Commission would add a new
chapter to the City’s zoning code to outline
the required steps for railroad compliance
with the City’s certified LCP.
• Establish procedures in the LCP for
ensuring compliance with regulations,
without issuance of permits.
• Develop specific use-related regulations.
CDP OPTIONS
CONSIDERED AND DISCARDED
• Coastal Development Permit’s
processed under protest.
Not acceptable to MR
• Add an exemption from applying for a
Costal Development Permit to the
City’s Zoning Ordinance.
Not acceptable to Coastal
Commission’s Attorneys or staff.
REMAINING CDP OPTION
CATEGORICAL
EXCLUSION AREAS
• Coastal Commission can adopt
a “Categorical Exclusion Area
Order” with a 2/3 majority
vote of the Coastal
Commission.
• To approve the order, the
Coastal Commission must
have to make findings that no
coastal act resources would be
impacted by new development
in the Categorical exclusion
area.
Regulatory Adoption Process
• “Categorical Exclusion Areas” are
• Allowed under the Coastal Act.
• Apply only to specified uses types located
in a specified area.
• The City would apply for the categorical
exclusion area with an analysis that must
show rail projects would have no impact
on coastal resources.
• Need detailed plan of all potential rail
activities.
• Complete all background studies.
• This process will likely take a year to
complete.
REMAINING CDP OPTION
CATEGORICAL
EXCLUSION AREAS
• Projects must comply with all
exclusion area requirements:
• Submit an application, project
plans, resource studies, etc.
• City completes CEQA if required.
• Categorical exclusion notification
sent to Coastal Commission.
• Coastal commission can challenge
(appeal) the exclusion, if it does
not meet all requirements.
Application
• Projects within a CDP
Categorical Exclusion Area can
proceed without getting a
CDP. (e.g. Todd’s Point is a
CDP Categorical Exclusion
Area).
PERMITTING MIXED PROJECTS
(RAILROAD & COMMERCIAL)
FOR USE PERMIT, DESIGN REVIEW (NOT
CDPs)
• All non-railroad components, of a
mixed project would be required to
get all required permits from the City
and a building permit from the
County.
• Mixed projects could include shared
facilities: parking lots, landscaping,
elevators, bathrooms, foundations,
walls, roofs, etc. which would be
regulated through the permitting
process
• The components of a shared structure
(shell) that impact structural safety of the
non-railroad components of the mixed
project would be regulated through a
building permit.
OTHER KEY ISSUES
Enforcement
• Through the Development
Agreement
• Letter of Credit
• Performance Bond
Appeals
• Coastal Commission can accept
an appeal of a Categorical
Exclusion project.
CEQA
• The environmental impacts of all
permitted uses (including
railroad) must be analyzed in the
EIR for the LCP Amendment.
OTHER LITIGATION ISSUES
• Noise from train horn
• Can request a Quite Zone
• Install additional signalized rail crossing
• Events – subject to Limited Term Permits
• Rail of transport of hazardous materials -
• Health & safety – Compliance with the Building
Code
REMEDIATION TOPICS
GROUND
WATER
STATUS
SOIL &
SEDIMENT
STATUS