City Council Agenda Report
April 15, 2025
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Alex Hamilton, Interim Director of Community Development SUBJECT: ORDINANCE NO. 25-1756 – STATUTORY DEVELOPMENT AGREEMENT NO. 2025-0001 FOR THE DEVELOPMENT OF THE NORWALK TRANSIT VILLAGE SPECIFIC PLAN AREA LOCATED AT 13200 BLOOMFIELD AVENUE
Background:
On July 10, 2024, the Planning Commission (PC) held a public hearing for review and consideration of the Norwalk Transit Village Specific Plan for the property located at 13200 Bloomfield Avenue (Property) and recommended with a 5-0 vote that City Council approve the Specific Plan.
On November 19, 2024, City Council completed a public hearing for review of the Specific Plan for the Norwalk Transit Village Specific Plan and adopted Resolution No. 24-58 certifying the project Final Environmental Impact Report (FEIR) (SCH No. 2022070103) with a 5-0 vote. On January 21, 2025, City Council, adopted Ordinance No. 24-1754 establishing Specific Plan Area No. 17, the “Norwalk Transit Village Specific Plan” which became effective on February 21, 2025.
On November 25, 2024, the PC adopted Resolution No. 24-12 finding that the disposition of the Property is in conformance with the City’s General Plan pursuant to Government Code Section 65402.
On December 3, 2024, City Council adopted Resolution No. 24-61 approving the Purchase and Sales Agreement (“PSA”) by and between the State of California and the City for the Subject Site.
On December 17, 2024, City Council adopted Resolution No. 24-62 declaring the Southern California Youth Correctional Reception Center and Clinic (“CYA”) located at the Property exempt surplus land pursuant to Government Code Sections 54221(F)(1) and approving a Disposition and Development Agreement (DDA), by and between the City of
City Council April 15, 2025
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Norwalk (“City”) and Lewis Land Developers, LLC (“Developer”).
On March 26, 2025, the Planning Commission held a public hearing for review and consideration of DA No. 2025-0001 and recommended with a 5-0 vote that City Council adopt an ordinance approving Development Agreement (DA) No. 2025-0001.
Request:
The Developer is requesting approval of DA No. 2025-0001 to expressly define a development project’s rules, regulations, commitments, and policies for a specific period of time for the development of the Specific Plan area. Development Agreements such as this are commonly known as “Statutory Development Agreements” (SDA). The purpose of an SDA is to “lock in” entitlement approvals to provide for more certainty in the entitlement process.
Authority:
The Development Agreement Act (California Government Code §65864 et seq.) authorizes cities to enter into binding development agreements with persons having a legal or equitable interest in real property for the development of such property, all for the purposes of strengthening the public planning process, encouraging private participation and comprehensive planning and identifying the economic costs of such development.
Analysis:
Summary of Key Terms of DA No. 2025-0001:
•Term: 10 years from the Effective Date of this Agreement (the “Term”), with an automatic additional five (5) years if certificates of occupancy have been issued for at least 150 total Residential Units by the expiration of the initial Term. •Subdivision Maps. Any tentative subdivision map or tentative parcel map approved for the property after the Effective Date shall automatically be extended for the term of the agreement as provided under the provisions of Government Code section 66452.6(a). •Assignment. Developer has the right to assign the Agreement in whole or in part to any person, partnership, limited liability company, corporation or other legal entity at any time during the term of this Agreement that acquires a fee or ground leasehold interest in any of the Property (a “Transfer”), subject to approval by the City. This is important to ensure that the transferee has the financial means and expertise to develop a project of this magnitude. This provision does not apply to restrict or limit any assignment of this Agreement to an Affordable Housing Builder as part of the Transfer of the Affordable Parcel to the City or the Affordable Housing Builder. •Vested Development Rights. Developer acquires vested right to develop the Project on the Property in accordance with, and to the extent of, the Development Approvals that are in place at the time the Development Agreement is entered into by the parties during the Term of the Development Agreement.
City Council April 15, 2025
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•Public Benefits:
oPublic Park. In lieu of the payment of any Quimby park fees (park dedication/in- lieu fees) or other Development Impact Fees for parks or open space, Developer will construct and dedicate two public parks within the Specific Plan area. oAffordable Housing. The Developer will provide range of affordable housing units for a total of 40 percent of the overall mix of residential units. These affordable housing units will contribute to the City’s Regional Housing Needs Assessment (RNHA) requirement.
oArt in Public Places. Developer may elect to install art work or pay an in-lieu fee equal to one percent of the total project cost.
Environmental:
The California Environmental Quality Act (“CEQA”) and the CEQA Guidelines allow the City to rely on the previously certified, November 19, 2024, Norwalk Transit Village Specific Plan FEIR unless a subsequent or supplement Environmental Impact Report (“EIR”) is required. None of the conditions requiring a subsequent or supplemental EIR under CEQA Guidelines Sections 15162 and 15163 have occurred. Accordingly, taking into consideration the analysis in the FEIR, DA No. 2025-0001 is within the envelope of the FEIR prepared for the Norwalk Transit Village Specific Plan area and no further environmental review is required.
Fiscal Impact:
As previously noted, there will be public benefits resulting from the project in the form of public parks, affordable housing, and art in public places.
In addition, the proposed project will have a positive fiscal benefit to the City. Estimates from renowned economist Kosmont Companies projects the following benefits to the City from this project:
•$500,000/annually from Hotel Transient Occupancy Tax (TOT); •$200,000 from commercial/retail sales tax annually; and •$170,000 (approximate) in net annual property tax to the City.
Citizens Advised:
Public hearing notices were published in The Norwalk Patriot on April 4, 2025, and posted at locations set forth in NMC Section 1.08.030 as well as mailed to 539 property owners within 500’ of the property. As of the writing of this report, staff has not received any correspondence regarding the proposed project.
Strategic Plan 2023 Implementation:
Approval of Ordinance No. 25-1756 for Development Agreement No. 2025-0001 is consistent with Goal 3 – Create and Sustain a Resilient and Economically Prosperous City –Objective 3 – Build Great Public Destinations.
City Council April 15, 2025
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Recommended Action:
Staff recommends City Council:
a. introduce by title only Ordinance No. 25-1756, AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF NORWALK, CALIFORNIA APPROVING DEVELOPMENT AGREEMENT NO. 2025-0001 BY AND BETWEEN THE CITY OF NORWALK, CALIFORNIA AND LEWIS LAND DEVELOPERS, LLC. FOR THE DEVELOPMENT OF THE NORWALK TRANSIT VILLAGE SPECIFIC PLAN AREA LOCATED AT 13200 BLOOMFIELD AVENUE, and schedule for adoption;
b. find that Development Agreement No. 2025-0001 is within the envelope of the FEIR prepared for the Norwalk Transit Village Specific Plan Project and no further environmental review is required.
Attachments:
1. Ordinance No. 25-1756
2. Draft Development Agreement No. 2025-0001