Agenda Report
Fullerton City Council
MEETING DATE: June 4, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: SUNAYANA THOMAS, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT PREPARED BY: Taylor samuelson, senior administrative analyst Sunayana Thomas, director of community and economic development SUBJECT: FIRST AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT WITH FOX HARBOR LLC FOR THE FOX BLOCK DEVELOPMENT PROJECT
SUMMARY
An unexpected delay occurred in executing and recording the Covenants, Conditions and Restrictions (CC&Rs) Amendment and Developer Easements Grant for the Fox Block commercial and retail project which necessitates amending the Disposition and Development Agreement to extend the project schedule.
PROPOSED MOTION
Approve the First Amendment to Disposition and Development Agreement between Fox Harbor LLC and the City of Fullerton.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Deny extension and reject modified timelines
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
As City Manager, I support the request for an extension to December 30, 2026 of submittal of plans. While I believe the project will be submitted prior, based on a variety of items to be worked through and length of time, I believe this is an appropriate amendment of the schedule of performance.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability
Infrastructure and City Assets.
FISCAL IMPACT
None.
BACKGROUND AND DISCUSSION
City Council approved the Fox Block Commercial and Retail Project Disposition and Development Agreement (DDA) on November 15, 2022 which facilitates developing multiple former redevelopment agency parcels. The partnership project secured entitlements with unanimous support from both Planning Commission and City Council.
The project, located on 1.4+ acres of property next to the historic Fox Theatre, involves adaptive reuse of a restaurant and former dance studio building, converting them into multiple food and beverage establishments. This project would transform a surface parking lot into an outdoor food hall concept with a microbrewery. It would also transition a vehicular street to a fully pedestrian thoroughfare and gathering space with outdoor community amenities.
Executing and recording CC&Rs for large-scale developments can prove time-consuming and face unforeseen delays. The developer remains on-target to deliver the project, however, negotiations between parties have delayed the process and require extended timelines for the restricted covenants outlined in the DDA.
The proposed First Amendment to the DDA updates the Schedule of Performance, (Attachment 1), reflecting the new timeline and a December 30, 2026 project submittal deadline allowing contingency for the developer. Staff anticipates the developer will submit plans before this date as negotiations resolve and all parties’ concerns have been addressed.
Attachments:
Attachment 1 – First Amendment to DDA Between City and Fox Harbor LLC Attachment 2 – Original Disposition and Development Agreement Attachment 3 – Fox Harbor LLC Extension Request Letter
cc: City Manager Eric J. Levitt
Fox Block Disposition and Development Agreement Amendment June 4, 2024 - Page 2