ECONOMIC DEVELOPMENT COMMITTEE
MINUTES
Tuesday, August 29, 2023
Call to Order/Roll Call 1:05 PM
EDC MEMBERS PRESENT
Mayor Deborah Robertson
Councilmember Ed Scott
CITY/AGENCY STAFF PRESENT
Arron Brown, Acting City Manager
Robert Messinger, Deputy City Attorney
Tanya Williams, Assistant to the CM
Colby Cataldi, Community Development Director
Paul Gonzales, Community Development Manager
Daniel Casey, Senior Planner
Vince Giron, Engineering Manager
Art Cervantes, Engineering Manager
Kim Dame, Administrative Analyst
PUBLIC COMMENTS – None
REVIEW/APPROVAL OF MINUTES
Minutes from the June 28, 2023 – Accepted for the Record*
*Arron Brown pointed out there were four instances in the minutes where the word “medium” was used instead of the correct word “median”. The minutes were accepted with the identified error.
REPORTS/DISCUSSION ITEMS
EDC-23-780
Discussion regarding Olive Grove Industrial Project proposed by Crow Holdings Industrial, LLC
Presented by Daniel Casey
Committee Comments/Questions/Recommendations:
Colby Cataldi presented the DIF estimates for the project as background information.
Mayor Robertson requested from Mr. Cataldi a recap of a letter that arrived from Crow Holdings. Mr. Cataldi stated that he was contacted by Crow on Thursday (8/24/23) in the late afternoon with a revised easement agreement. In their CBA with the City, they will provide an easement from Baseline to the north , within said easement will be a storm drain facility infrastructure, as such, they sent a revised agreement for staff to review.
Development staff and legal staff have reviewed the revised agreement and have some comments back to Crow which will be provided to them by end of business on 8/29/23.
The easement has an approximate valuation between $2M and $3M. Construction of the storm drain facilities also has an approximate valuation of $2M to $3M. The two improvements total the $5M contribution to the community by the developer.
Mayor Robertson clarified she is speaking of the letter that arrived on Tuesday (8/22/23) prior to the City Council meeting where the developer stated that the City had requested a delay.
Mr. Cataldi stated that the project was scheduled to go before Council at the end of August but the week before the meeting the City had not settled on the details of the agreement or conditions of approval with the developer. An agreement could not be reached in the timeframe needed to present the item to Council and the developer requested a 30-day continuance. The project was rescheduled to go before Council the second meeting of September, which is what was outlined in the letter given to Council at the 8/22/2023 meeting.
Mayor Robertson asked the question if the City would be able t o use the proposed easement if we are unable to drain into the Cactus Basin? CM Scott followed with his own question about whether we are able to drain into the Cactus Basin.
Vince Giron provided some explanation as to what is shown on the proposed plans for the easement. The plans are not fully approved as of the day of this meeting (8/29/2023).
Mayor Robertson asked if we had a written agreement for the use of the connection to the storm drain and asked staff to ensure we have a written agreement for u se of the Baseline storm drain to the Cactus Basin.
Mayor Robertson asked about the total dollar amount being paid for the easement.
Mr. Cataldi answered that the current total estimated cost for the easement and infrastructure is $5M. A breakdown of the estimated costs were shown in Exhibit H of this item’s agenda packet documents. The developer has agreed to burden all the costs for this portion of the project as a community benefit. A new item has come up with the developer where they now want to restrict the improvements, they are making to what is within their property boundaries; anything outside the boundaries of their property line would be a cost to the City, which is not what was previously discussed. As this is a voluntary contribution, staff will continue to negotiate with the developer.
Mayor Robertson asked about the traffic in and out of the project site and traffic lights to be installed. CM Scott asked about the traffic signal being a three-way signal and it lining up with the existing residential streets that exit on Baseline to the south. A concern was raised by the Mayor Robertson about those residents to the South not being able to turn left due to a proposed median along Baseline.
Mr. Cataldi stated that the current project design shows the streets to the south of the project site would be right-in and right-out only due to the median.
CM Scott asked if this design was reviewed by the Transportation Commission.
Daniel Casey responded that he did not believe this project design went before the TC as they have not met for quite some time.
Mayor Robertson asked why they have not met and the response from Mr. Brown is that there has not been a quorum for the last 8 or 9 meetings.
Mayor Robertson and CM Scott if the Planning Commission was aware of the median when they reviewed the project. Mr. Casey said the median was not discussed at Planning Commission; however, the traffic generation and truck trips were discussed.
Mayor Robertson has many concerns over the traffic impact to the existing residential area to the south of the project site.
Mr. Cataldi stated that design for the median and the impact it will have to the residents in the homes to the south could be reviewed further and may warrant additional design modifications to improve functionality. If Council directs staff to defer the median construction so City staff can reevaluate the design and engage the public in the discussion, staff would be happy to do that. Staff will be providing Council with a second option for the project which omits the median which will allow Engineering to consider a redesign of the median for improved functionality.
Mayor Robertson asked if there was anything else for this project.
Mr. Cataldi stated that one change that was made is that public noticing prior to the City Council meeting will be at a 1000-foot radius as opposed to the original noticing radius of 300 feet.
CM Scott expressed concern over commercial vehicle enforcement for industrial/commercial areas within the City.
EDC-23-779
Request the Economic Development Committee (EDC) Members Review and Consider the Draft Community Benefit Agreement Ordinance
Presented by
Committee Comments/Questions/Recommendations
Mr. Cataldi explained that most cities use development agreements , which is a different type of community benefit tool. He is not aware of any city that have Community Benefit Agreement’s codified as they more of internal policy and of a voluntary nature.
Mayor Robertson asked then why we would try to codify CBA’s. She is concerned about creating something where the City may potenti ally be held liable if a developer doesn’t deliver on items set forth in a CBA.
Robert Messinger added that the challenge with CB A’s, because they are voluntary, Council relies upon the word of the developers make saying they will provide a benefit without having anything in place to enforce that promise. Once a developer receives approval of a project there is nothing in place legally to keep them from backing out of the CBA. His argument with the Crow attorneys has been when a community benefit is to be performed.
Consensus amongst staff and EDC is leaning in the direction of having development agreements instead of a codified community benefit agreement ordinance which would require developers to perform all community benefit items in the development agreement at project start or at permit issuance.
Mr. Messinger stated that the advantage of a development agreement is that it takes place at the beginning of the process and is a recorded document that encumbers the property so that any future owners bear the responsibility of carrying out the contents of the agreement.
Mr. Brown asked if his understanding was correct – EDC does not want to move forward with a CBA ordinance, but instead ask for development agreements where contributions to the community are voluntary.
Mayor Robertson recommended to follow what Mr. Messinger stated about having development agreements and those agreements being attached to the property so that if ownership changes , the agreement is still enforceable. CM Scott agreed with this recommendation.
ADJOURNMENT
Meeting adjourned at 2:59 p.m.