City Council Agenda Report
March 5, 2024
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: John P. Ramirez, Director of Community Development
SUBJECT: RESOLUTION NO. 24-13 - APPROVING THE TERMINATION OF THE FRONT
STREET PARTICIPATION AGREEMENT
Background:
On July 6, 2021, City Council approved the Heart of Norwalk Vision Plan, which envisions opportunities for new economic development within Front Street, Firestone Boulevard, and San Antonio Drive corridors. The properties exchanged are part of the Heart of Norwalk project area, which includes the City-owned parcels measuring approximately 0.57 acres identified as Assessor’s Parcel Numbers (APNs) 8056-015-901 and 8056-015-900 and located at 12124 Firestone Boulevard in the City of Norwalk, County of Los Angeles (“City Property”) and real property currently owned by Firestone Lofts, LP (“Developer”) measuring approximately 0.65 acres identified as APNs 8056-015-014 and 8056-015-016 and located at 13400 San Antonio Drive in the City of Norwalk, County of Los Angeles (“San Antonio Property”). City staff is working with the Arroyo Group to prepare a Specific Plan and create regulations and standards of how change can occur within the project area.
On February 7, 2023, City Council approved an Option Agreement for the exchange of real property for City-owned APNs 8056-015-900 and 8056-015-901 (“City Property”) and granted the exclusive right to exchange for real property APNs 8056-015-014 and 8056-015-016 (“San Antonio Property”), subject to further approval by the City Council and compliance with the California Government Code Sections 54220 et seq. (“Surplus Land Act”). On October 17, 2023, City Council adopted Resolution No. 23-62 declaring the City-owned real property located at 12124 Firestone Boulevard exempt surplus land pursuant to Government Code Section 54221(F)(1)(C) and approving an Exchange Agreement and Joint Escrow Instructions.
The City and the predecessors in interest to the current owners of the properties in the Project Area (as defined in the Participation Agreement) previously entered into: (a) an Agreement for Participation in a Commercial Revitalization Project within the City of Norwalk, dated August 11,
City Council March 5, 2024
Resolution No. 24-13 Termination of Participation Page No. 2 7 9
6 1986 (the “Participation Agreement”), and recorded in the Official Records of Los Angeles County, California (the “Official Records”) on September 29, 1986, as Instrument No. 86- 1297875, to govern the rights, duties, and obligations related to the prior revitalization of the Project Area, and (b) a related Reciprocal Easement & Maintenance Declaration, dated August 11, 1986 (“Original Declaration”), and recorded in the Official Records on September 29, 1986, as Instrument No. 86-1297876, to govern the rights, duties, and obligations of the Owners related to the prior development, construction, maintenance, and operation of portions of the Project Area. In order to facilitate new revitalization of the Project Area, the action to terminate the Participation Agreement is necessary. Furthermore, as part of the transactions under the Exchange Agreement, the City, Lofts LP and the other current owners of the Project Area (Lofts LP and the other owners are collectively referred to as the “Owners”) are entering into, and/or will be subject to, an Amended and Restated Reciprocal Easement and Maintenance Declaration (the “Declaration”) to govern the rights, duties and obligations of the City and the Owners in connection with the proposed new revitalization of the Project Area consistent with the Exchange Agreement and the future development, construction, maintenance and operation of the Project Area. The Declaration replaced the Original Declaration and recognizes the changed development conditions and requirements and new ownership structures of the properties in the Project Area.
Environmental:
The proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15061(b)(3) under common sense exemption which provides that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The termination of the Participation Agreement terminates an existing agreement and does not authorize any specific development.
Fiscal Impact:
None at this time.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
The recommended action will further the City’s Strategic Plan 2021 Goal 3: Create dynamic neighborhoods that incorporate mobility, connectivity, and sustainability.
City Council March 5, 2024
Resolution No. 24-13 Termination of Participation Page No. 3 7 9
6 Recommended Action:
Staff recommends City Council:
a. find that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15061(b)(3) under common sense exemption which provides that CEQA applies only to projects which have the potential for causing a significant effect on the environment.
Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. b. adopt Resolution No. 24-13, A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NORWALK APPROVING THE TERMINATION OF THE FRONT STREET PARTICIPATION AGREEMENT, which does not authorize any specific development; and
c. authorize the City Manager to execute any and all documents necessary to terminate the Participation Agreement and such other ancillary documents reasonably necessary to effectuate the intent of Resolution No. 24-13.
Attachments:
Resolution No. 24-13