DATE: MAY 24, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, DIRECTOR
BY: LISA BRINTON, ASSISTANT DIRECTOR
JILL MILLER, SENIOR PLANNER
TITLE: ECONOMIC DEVELOPMENT ELEMENT TARGET AREA K (FERRASCI BUSINESS PARK SPECIFIC PLAN) AGREEMENTS RECOMMENDED MOTION:
A motion to approve resolutions to:
Establish a new Capital Improvement Project (CIP) for the processing of the Ferrasci Business Center Specific Plan entitlements (Project), which will be fully funded through the Special Construction Assistance Fund (5203), Authorize the Mayor to execute a Funding Agreement with Chris Steinbruner, an individual, and Michael Mueller, an individual (Developer) under which City will be reimbursed for all Project costs and expenses and administrative overhead incurred with the processing of Project entitlements, Appropriate up to $500,000 to Fund 5203 for consultant planning and technical support ($486,128.50) and City staff time for project management and processing ($13,871.50), and directing initial deposit and corresponding reimbursement revenue of up to $500,000 from the Developer back into Fund 5203; and Authorize the Mayor to execute an Agreement for Professional Services for an amount not to exceed $486,128.50 with EMC Planning Group for planning and technical project support for the preparation, packaging, and processing of planning entitlements and associated CEQA compliance for the proposed Project.
RECOMMENDATION:
It is recommended that the City Council approve resolutions to:
Establish a new Capital Improvement Project (CIP) for the processing of the Ferrasci Business Center Specific Plan entitlements (Project), which will be fully funded through the Special Construction Assistance Fund (5203); Authorize the Mayor to execute a Funding Agreement with the Chris Steinbruner, an individual, and Michael Mueller, an individual (Developer) under which City will be reimbursed for all Project costs and expenses and administrative overhead incurred with the processing of Project entitlements; Appropriate up to $500,000 for consultant planning and technical support ($486,128.50) and city staff time for project management and processing ($13,871.50), and budgeting the initial deposit of $75,000 and corresponding reimbursement revenue of up to $500,000 from the Developer to Fund 5203; and Authorize the Mayor to execute an Agreement for Professional Services for an amount not to exceed $486,128.50 with EMC Planning Group for planning and technical project support for the preparation, packaging, and processing of planning entitlements and associated CEQA compliance for the proposed Project.
EXECUTIVE SUMMARY:
The City received applications for the proposed Ferrasci Business Center Specific Plan and associated Sphere of Influence Amendment and Annexation (reorganzation), General Plan Amendment and Prezoning of Economic Development Element (EDE) Target Area K (Project). The proposed Specific Plan implements the EDE and would entitle future employment center/business park and commercial retail uses that would attract small, large, and entrepreneurial businesses to Salinas and would result in increased revenue and employment opportunities. Outside planning and technical project support is required for the preparation, packaging and processing of planning entitlements and associated Califonia Environmental Quality Act (CEQA) compliance for the proposed Project. Under the recommended Funding Agreement, the Developer agrees to be responsible for all costs and expenses associated with contract consultants’ work, City staff time to administer consultant agreement(s) and work, and city staff time for project management and administrative costs and expenses incurred with the processing of Project entitlements. It is further recommended that the City enter into an Agreement for Professional Services with EMC Planning Group for planning and environmental services required to process Project entitlements and CEQA compliance. The details (terms, conditions, and scope) of both Agreements are summarized in this staff report.
BACKGROUND:
In December 2017, the City adopted an Economic Development Element (EDE) to the 2002 Salinas General Plan. In the EDE, the City identifies an area outside the City’s current northern Sphere of Influence boundary as a future growth area for economic development. The lands which comprise EDE Economic Opportunity Area K (EOA K), or the “North Entrance” as it is referred to in the EDE, shown and marked on Attachment 3 to this staff report, is comprised of a Target Area, where near to mid-term development (three (3) to five (5) years) is projected by the City, and an Economic Development Reserve Area, also identified Attachment 3, which is to accommodate the City’s longer-term (ten (10) to twenty (20) years) economic development needs. With the adoption of the EDE, the General Plan Land Use and Circulation Map was amended to reflect Business Park and Commercial Retail uses in Target Area K and projected development capacity impacts were evaluated in the EDE Program EIR which was certified by the City Council on December 5, 2017.
DISCUSSION:
The 2002 Salinas General Plan requires the preparation of a specific plan prior to development occurring in future growth areas. In June 2021, the primary property owner of Target Area K submitted applications for the Ferrasci Business Center Specific Plan (Specific Plan) and associated Sphere of Influence Amendment and Annexation (reorganzation), General Plan Amendment and Prezoning of Target Area K. The specific plan area consists of two planning areas (shown on Attachment 4).
Area A is approximately 123 acres of undeveloped land, zoned Farmland 40 (Farmland, minimum building site of 40 acres) located within the County’s jurisdiction, but within the City’s Target Area K (Monterey County Assessor’s Parcel Numbers 113-151-002, 113-15-011, and a portion of 113-161-018). Proposed uses are to be consistent with the City’s EDE policies and identified land uses of Business Park and Commercial Retail, with the addition of some residential uses.
Area B consists of the remainder of Target Area K contemplated to implement retail and commercial land use capacity in accordance with the Economic Development Element Final Environmental Impact Report. Area B would be included as an overlay in the specific plan for cohesive, high-level, and long-range planning purposes.
Upon future Specific Plan entitlement, it is anticipated that the City will submit an application to the Monterey County Local Agency Formation Commission (“LAFCO”) for Sphere of Influence Amendment and Annexation (reorganzation) and Prezoning of all Target Area K and a proposed commercial retail development immediately to the north of Target Area K at Sala Road, should it be constructed. Attachment 5 to the staff report outlines the proposed Annexation Area. Should the City proceed with an annexation application, it will be the lead agency for the application and associated CEQA compliance. The proposed Annexation Area may be either modified or not pursued by the City.
Funding Agreement
Outside planning and technical project support is required for the preparation, packaging, and processing of planning entitlements, including General Plan Amendment, Pre-zoning, Sphere of Influence and Annexation applications, Specific Plan, and preparation of the required technical studies and analysis pursuant to CEQA (Project). It is anticipated that the environmental review of the Project can tier off of the EDE Program EIR (2017) which analyzed environmental impacts in Target Area K. The Developer has agreed to be responsible for all costs and expenses associated with contract consultants’ work and City staff time to administer consultant agreement(s) and work. In addition, given the City’s limited planning staff resources, the Developer has agreed to be responsible for staff project management and administrative costs and expenses incurred with the processing of the Project entitlements.
Following the process of past specific plan preparation and entitlement (West Area Specific Plan, the Central Area Specific Plan and Salinas Travel Center), the first step is to enter into a Funding Agreement with the Developer. Under the Funding Agreement, the Developer agrees to:
Reimburse City for cost and expenses associated with Consultant’s work (planning and environmental) and City staff time (project management and processing), Provide an initial deposit of $75,000,
Maintain a fund balance of $75,000; and
the City agrees to:
Invoice the Developer monthly,
Provide quarterly accounting of expenditures,
Issue a Stop Work Notice if insufficient funds are available to cover work; and Refund any remaining fund balance within 60 days of the Project completion.
Agreement for Professional Services
On February 17, 2022, the City issued a Request for Proposals (Attachment 6) seeking a consultant team, or consultant teams, that have extensive experience in preparing General Plan Amendments, Pre-Zoning applications, Sphere of Influence and Annexation applications, Specific Plans, and associated CEQA documents. The requested scope of work has three components CEQA Compliance – Environmental Impact Report and Technical Studies, Technical Planning Support - Processing activities include reviewing applications, drafting review comments, consistency analysis, and other technical recommendations; and Graphics and Final Document Packaging.
One proposal from EMC Planning Group was submitted by the March 25th deadline. Staff evaluated the EMC proposal and confirmed EMC has the qualifications and experience to perform the requested work. EMC will subcontract with Kimley-Horn, WJV Acoustics and Illingworth & Rodkin to prepare technical studies and provide analysis and recommendations in the areas of traffic and circulation, noise, and health risk assessment. EMC’s qualifications and experience comes from working on several projects in Salinas and supporting city staff on multiple projects by taking on tasks such as application/specific plan review, preparing applications to and coordinating with Monterey County Local Agency Formation Commission (LAFCO) and its staff, preparing and presenting project consideration packages to the Planning Commission and City Council, and preparing CEQA documentation for numerous development entitlement and public works projects. Key projects EMC has worked on in Salinas are listed below:
EDE, and EDE Program Environmental Impact Report
Salinas Travel Center Specific Plan and Environmental Impact Report Salinas Ag Industrial Specific Plan and Environmental Impact Report Staff and the Developer team met with EMC to discuss their proposed scope of work and approach. EMC’s revised scope and budget is attached to this report as Exhibit B to the City’s Standard Agreement for Professional Services. The not to exceed compensation amount is $486,128.50 with a term ending June 30, 2024.
Housing and Land Use Committee Comments
On May 2, 2022, both Agreements were presented to the Housing and Land Use Committee (HLUC). Comments received primarily focused on a desire to incorporate housing or have a commercial linkage fee/community benefit agreement tied with the proposed Project. Staff explained that it is anticipated that the environmental review of the Project can tier off of the EDE Program EIR (2017) which analyzed environmental impacts in Target Area K. The EDE EIR did not evaluate residential uses in Target Area K, only business park and commercial retail uses. The addition of residential uses to the Project description will require additional CEQA analysis. At the meeting the HLUC approved a motion recommending that the City Council approve the execution of both Agreements.
CEQA CONSIDERATION:
The City of Salinas has determined that the action of authorizing the execution of the proposed Agreements is not a project as defined by the California Environmental Quality Act (CEQA). Section 15061 (b) (3) of CEQA Guidelines states that when it can be seen with certainty that there is no possibility that the activity in question, in this case the execution of the Agreements, may have a significant effect on the environment, the activity is not subject to CEQA. The execution of the Agreements does not constitute approval of the Ferrasci Business Center Specific Plan. Execution of the Agreements allows the City to proceed to process the submitted applications and prepare the required CEQA compliance for the Project entitlements to be considered by the City Council with a recommendation from the Planning Commission.
STRATEGIC PLAN INITIATIVE:
Future implementation of these Agreements supports the City Council Strategic Goal and Initiative of Economic Development. The proposed Ferrasci Business Center Specific Plan implements the EDE and would entitle future employment center/business park and commercial retail uses that would attract small, large, and entrepreneurial businesses to Salinas that would result in increased revenue and employment opportunities for the City.
DEPARTMENTAL COORDINATION:
Community Development coordinated preparation of the two (2) Agreements and staff report and will work with the City Attorney’s Office and the City Manager to finalize and execute the attached Agreements.
FISCAL AND SUSTAINABILITY IMPACT:
There are no fiscal impacts associated with preparation of the Agreements, this report, or the authorization to execute these Agreements. Staff time for coordination, review and implementation of projects and issues is already allocated in the adopted budget. Through the Funding Agreement, the Developer agrees to reimburse the City for costs and expenses associated with Consultant’s (EMC’s) work (planning and environmental) and City staff time (project management and processing). In addition to approving the Funding Agreement, the following authorization is needed to Establish a new Capital Improvement Project (CIP) for the processing of the Ferrasci Business Center Specific Plan entitlements (Project), which will be fully funded through the Special Construction Assistance Fund (5203), Appropriate up to $500,000 to Fund 5203 for consultant planning and technical support ($486,128.50) and City staff time for project management and processing ($13,871.50), and directing initial deposit and corresponding reimbursement revenue of up to $500,000 from the Developer back into Fund 5203; and Authorize the Mayor to execute an Agreement for Professional Services for an amount not to exceed $486,128.50 with EMC Planning Group for planning and technical project support for the preparation, packaging, and processing of planning entitlements and associated CEQA compliance for the proposed Project.
As stated in the Discussion above, the City will invoice the Developer monthly for costs and expenses incurred related to the processing of applications, the preparation of CEQA compliance, and staff time for project management. A Stop Work notice will be issued should the Deposit balance fall below $75,000 and be insufficient to cover Project costs.
ATTACHMENTS:
Resolution authorizing execution of Funding Agreement
Resolution authorizing execution of Professional Services Agreement EDE Economic Opportunity Area K Figure
Proposed Specific Plan Area
Proposed Annexation Area (Target Area K & Sobel Retail Site Parcels) Ferrasci Business Center Planning and CEQA Services RFP PowerPoint Presentation
Page | 3
Page | 1
CITY OF SALINASCOUNCIL STAFF REPORTCITY OF SALINASCOUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT