NVF:MJV:JMD File No. DA22-001
9/15/2022
1 T-5433.014 / 1957883.doc
Council Agenda: 10-25-2022
Item No: 10.3(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Administrative changes made since original posting on 10/20/2022
ORDINANCE NO. _____
AN ORDINANCE OF THE CITY OF SAN JOSE
APPROVING A THIRD AMENDMENT TO DEVELOPMENT
AGREEMENT WITH JACKSON-TAYLOR PARTNERS,
LLC, RELATIVE TO THE DEVELOPMENT OF THE
JAPANTOWN CORPORATION YARD REDEVELOPMENT
PROJECT ON CERTAIN REAL PROPERTY LOCATED AT
696 NORTH SIXTH STREET AND AUTHORIZING THE
CITY CLERK TO EXECUTE THE THIRD AMENDMENT TO
THE DEVELOPMENT AGREEMENT AND CAUSE THE
SAME TO BE RECORDED WITH THE SANTA CLARA
COUNTY RECORDER'S OFFICE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SAN JOSE:
SECTION 1. This Ordinance is adopted under the authority of California Government Code Section 65868 and pursuant to the provisions of the City of San José ("CITY") Ordinance No. 28986, codified in Chapter 18.02 of Title 18 of the San José Municipal Code (the "Enabling Ordinance"), both of which provide for the ability of CITY to adopt development agreements and amendments and set forth procedures and requirements for the consideration of those agreements.
SECTION 2. This Ordinance incorporates by reference as though fully set forth herein that certain "Third Amendment to Development Agreement By and Between the City of San José and Jackson-Taylor Partners LLC for Japantown Corporation Yard Redevelopment Project" (the "THIRD AMENDMENT"), the substantive form of which is attached hereto as Exhibit "A." All defined terms not otherwise defined herein shall have the same meaning as set forth in the AGREEMENT as amended.
SECTION 3. The environmental impacts of the residential/commercial mixed use development project described within the THIRD AMENDMENT to the AGREEMENT NVF:MJV:JMD File No. DA22-001
9/15/2022
2 T-5433.014 / 1957883.doc
Council Agenda: 10-25-2022
Item No: 10.3(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Administrative changes made since original posting on 10/20/2022 were disclosed, analyzed and evaluated as a part of that certain Final Environmental Impact Report prepared for the Japantown Corporation Yard Redevelopment Project (the "EIR"), considered and certified by the City Council on May 20, 2008, by Resolution No. 74384, a first addendum to that EIR prepared and approved by the Director of Planning, Building and Code Enforcement on May 2, 2014, and a second Addendum to that EIR prepared and approved by the City Council on November 17, 2015 (collectively, the “PROJECT ENVIRONMENTAL CLEARANCE”), prior to taking any approval actions on this Ordinance, in conformance with the California Environmental Quality Act of 1970 ("CEQA"), together with state and local guidelines implementing CEQA, all as amended to date.
SECTION 4. The City Council of the City of San José finds that the following are the relevant facts concerning the proposed THIRD AMENDMENT:
a. The City Council conducted a duly noticed public hearing on December 16, 2014 to consider an ordinance to approve the Development Agreement (“AGREEMENT”) by and between the CITY and Jackson-Taylor Partners, LLC, a Delaware limited liability company (“DEVELOPER”) to develop between 425 to 600 multi-family attached residential units and between 16,000 to 25,000 square feet of commercial space for a mixed-use development with dedication of public parkland and dedication of public community performance land located on approximately 5.25 gross acres bounded by North Sixth Street, East Taylor Street, North Seventh Street and Jackson Street (“PROJECT”), all as more specifically set forth in the AGREEMENT.
b. After conducting a duly noticed public hearing on December 16, 2014, the City Council considered, confirmed and certified that the PROJECT ENVIRONMENTAL CLEARANCE adequately addresses the environmental impacts of the PROJECT at the SUBJECT PROPERTY and the AGREEMENT, approved under its Ordinance No. 29528 the form of the AGREEMENT, authorized the execution of the AGREEMENT, and found that the provisions of the AGREEMENT are consistent with the GENERAL PLAN and the SPECIFIC PLAN, as amended, and the DEVELOPMENT AGREEMENT ORDINANCE.
NVF:MJV:JMD File No. DA22-001
9/15/2022
3 T-5433.014 / 1957883.doc
Council Agenda: 10-25-2022
Item No: 10.3(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Administrative changes made since original posting on 10/20/2022 c. The CITY and DEVELOPER fully executed the AGREEMENT on March 24, 2015 and the AGREEMENT was recorded in the Santa Clara County Recorder’s Office on April 17, 2015 as Document No. 22920137.
d. At the time of the approval of the AGREEMENT by the City Council on December 16, 2014, the following CITY entitlements had been granted with respect to the SUBJECT PROPERTY and the DEVELOPER’s development of the PROJECT:
1. GENERAL PLAN designation of Transit Residential; and
2. The “Jackson-Taylor Residential Strategy” approved by CITY Council Resolution No. 64109 on October 6, 1992, including amendments through the effective date of March 24, 2015 (the “SPECIFIC PLAN”).
e. Although the PROJECT is consistent with the CITY’s GENERAL PLAN designation and applicable SPECIFIC PLAN, as of the effective date (March 24, 2015) of the AGREEMENT the PROJECT could not be constructed under the then existing zoning for the SUBJECT PROPERTY, and required a rezoning.
Therefore, as of the effective date of the AGREEMENT, DEVELOPER did not have a vested right to construct the PROJECT through the AGREEMENT.
f. On December 1, 2015, the City Council adopted Planned Development (PD) Rezoning No. PDC15-018, under Ordinance No. 29651, which consisted of the rezoning of the SUBJECT PROPERTY from the R-M Multiple Residence Zoning District to the CP(PD) Planned Development Zoning District to allow construction of up to 600 residential units, up to 25,000 square feet of commercial space, and a private community center with indoor performance use (“PD ZONING”).
g. On May 25, 2016, CITY’s Planning Director approved and issued Planned Development Permit No. PD15-055, which allowed the removal of five (5) ordinance sized trees and the construction of 520 multi-family residential units in two (2) buildings, 19,191 square feet of commercial space, and 729 parking spaces (“PD PERMIT”).
h. The CITY and DEVELOPER desired to amend the AGREEMENT to vest the PD REZONING and PD PERMIT under the AGREEMENT, so on November 29, 2016, the City Council adopted Ordinance No. 29819 amending the AGREEMENT specifically to amend the definition of DEVELOPMENT APPROVALS in the AGREEMENT to include the PD REZONING and PD PERMIT and to specify the PD REZONING AND PD PERMIT as a VESTED NVF:MJV:JMD File No. DA22-001
9/15/2022
4 T-5433.014 / 1957883.doc
Council Agenda: 10-25-2022
Item No: 10.3(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Administrative changes made since original posting on 10/20/2022 ELEMENT under the AGREEMENT, and did not otherwise amend the terms and conditions of the AGREEMENT in any other manner (“FIRST AMENDMENT”).
i. In accordance with the terms of Exhibit C of the AGREEMENT, the DEVELOPER requested and the CITY granted a one year extension of the term of the AGREEMENT on September 29, 2016 (“LETTER EXTENSION”).
j. The CITY and DEVELOPER further desired to amend the AGREEMENT to incorporate the LETTER EXTENSION into the AGREEMENT; clarify the provisions governing assignment; clarify the provisions regarding the applicability of inclusionary housing requirements and housing impact fees; authorize the use of the SUBJECT PROPERTY by the CITY on a temporary basis for a farmers market and public parking; assign a DEVELOPER’S Community Liaison for the PROJECT; and revise the remedies for DEVELOPER delay in performance or default of the AGREEMENT, so on October 17, 2017, the City Council adopted Ordinance No. 30010 amending the AGREEMENT and did not otherwise amend the terms and conditions of the AGREEMENT in any other manner (“SECOND AMENDMENT”)
k. In November 2017, DEVELOPER assigned all of its right, title and interest in, to, and under the SECOND AMENDMENT to Jackson Taylor Partners Owner LLC pursuant to that certain Assignment and Assumption of Development Agreement (Japantown Corporation Yard Redevelopment Project), recorded in the Official Records of Santa Clara County on November 13, 2017, as Instrument No. 23799048.
l. Jackson Taylor Partners Owner LLC then assigned to ICS Corporate Yard Multifamily, LLC (Developer, Shea Properties), all of its rights, title and interest in, to, and under the DEVELOPMENT AGREEMENT, FIRST AMENDMENT, and SECOND AMENDMENT pursuant to that certain Assignment and Assumption of Development Agreement (Japantown Corporation Yard Redevelopment Project), recorded in the Official Records of Santa Clara County on November 13, 2017, as Instrument No. 23799123.
m. On September 28, 2022, the Planning Commission, designated by Chapter
18.02 of Title 18 of the San José Municipal Code as the advisory agency to the City Council for purpose of development agreement amendment review pursuant to California Government Code Section 65867 and said Chapter 18.02 of Title 18, considered the THIRD AMENDMENT to the AGREEMENT, at a duly noticed public hearing and recommended to the City Council that CITY adopt an ordinance approving the THIRD AMENDMENT.
NVF:MJV:JMD File No. DA22-001
9/15/2022
5 T-5433.014 / 1957883.doc
Council Agenda: 10-25-2022
Item No: 10.3(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Administrative changes made since original posting on 10/20/2022 n. The CITY and DEVELOPER now desire to further amend the AGREEMENT in order to revise the parties’ Performance Center Site obligations to facilitate the development of space dedicated to housing local nonprofit arts and cultural groups. Under the terms of the THIRD AMENDMENT, the CITY will be the master tenant at the Creative Center of the Arts. Silicon Valley Creates will be the master subtenant and will further sublease the space to groups including San Jose Taiko, Red Ladder Theater Company, and a range of local Japantown arts and cultural community organizations.
o. The CITY and DEVELOPER have taken all actions mandated by and fulfilled all requirements set forth in Chapter 18.02 of Title 18 of the San José Municipal Code and under applicable State law in connection with this THIRD AMENDMENT.
p. Consistent with the information contained in the AGREEMENT as amended:
i. Development of the PROJECT as set forth in the THIRD AMENDMENT is consistent with the GENERAL PLAN and all applicable specific and area plans and policies, as amended;
ii. Development of the PROJECT should be encouraged because it will help meet important economic, social, environmental and planning goals of the CITY, including but not limited to; locating housing near jobs, transit (i.e., within 2,000 feet of light rail) and neighborhood commercial retail to reduce commutes for San José residents, reduce vehicle trips and increase transit ridership; redeveloping underutilized property in an infill location with housing and jobs; integrating high density residential with neighborhood serving commercial uses; and further, providing for an extraordinary contribution of land to facilitate the development of a desired community amenity, specifically, a performance and cultural space; iii. The THIRD AMENDMENT will facilitate the development of the PROJECT in the manner proposed in the AGREEMENT for the further reasons set forth in the Recitals to the AGREEMENT as amended;
iv. DEVELOPER will incur unusually substantial costs in order to provide public improvements, facilities or services, in particular an extraordinary contribution of land to facilitate the development of a performance and cultural center long-desired by the community in the CITY, from which the public will benefit, as set forth in more detail in the AGREEMENT; and Jackson-Taylor Partners, LLC, has made commitments to a very high standard of quality for the PROJECT and has agreed to development limitations beyond that required by the existing laws, as set forth in the NVF:MJV:JMD File No. DA22-001
9/15/2022
6 T-5433.014 / 1957883.doc
Council Agenda: 10-25-2022
Item No: 10.3(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Administrative changes made since original posting on 10/20/2022 PROJECT description, in the DEVELOPMENT APPROVALS described in the original AGREEMENT and amendments thereto generally; and v. Development of the PROJECT will make a substantial contribution to the economic development of the City of San José in that the PROJECT will create additional, transit-oriented housing to support transit infrastructure investments, as well as provide an extraordinary contribution of land to facilitate the development of a performance and cultural center long desired by the community.
SECTION 5. This Council, based upon analysis of the facts set forth above and the provisions of the original AGREEMENT, the FIRST AMENDMENT, the SECOND AMENDMENT, and the THIRD AMENDMENT finds and concludes that the PROJECT, as described in the AGREEMENT, the FIRST AMENDMENT, the SECOND AMENDMENT, and the THIRD AMENDMENT will make a substantial contribution to the economic development of CITY.
SECTION 6. Based upon the foregoing facts, findings, and conclusions, and as required by the Enabling Ordinance, the City Council hereby adopts the following as its findings:
a. The proposed PROJECT is consistent with the GENERAL PLAN, as amended, and all applicable specific or area plans of CITY including amendments thereto. b. The proposed PROJECT should be encouraged in order to meet important economic, social, environmental or planning goals of CITY. c. The proposed THIRD AMENDMENT will facilitate the development of the PROJECT on the SUBJECT PROPERTY in the manner proposed in the original AGREEMENT.
d. The proposed PROJECT will make a substantial contribution to the economic development of CITY in that DEVELOPER will incur unusually substantial costs to provide public improvements, facilities or services, including, without limitation, an extraordinary contribution of land to facilitate the development of a performance and cultural center long desired by the community in the CITY, all as more specifically described in the original AGREEMENT, from which the public will benefit, and DEVELOPER, has made a commitment to a very high NVF:MJV:JMD File No. DA22-001
9/15/2022
7 T-5433.014 / 1957883.doc
Council Agenda: 10-25-2022
Item No: 10.3(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Administrative changes made since original posting on 10/20/2022 standard of quality for the PROJECT and has agreed to development standards beyond that required by applicable existing laws.
e. The proposed THIRD AMENDMENT is consistent with the provisions of the Enabling Ordinance and the AGREEMENT is in the public interest.
SECTION 7. The City Council hereby approves the proposed THIRD AMENDMENT in substantially the form attached hereto as Exhibit "A" and hereby authorizes and directs the City Clerk to execute the THIRD AMENDMENT, substantially in the form attached hereto as Exhibit "A," on behalf of the CITY as soon as this ordinance becomes effective and the FIRST THIRD AMENDMENT is executed by the DEVELOPER.
SECTION 8. The City Clerk is hereby directed to record this ordinance including the fully executed form of the THIRD AMENDMENT attached hereto as Exhibit "A" with the Santa Clara County Recorder no later than ten (10) days following the effective date of this ordinance.
PASSED FOR PUBLICATION of title this _____ day of _____, 2022 by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
SAM LICCARDO
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk
NVF:MJV:JMD File No. DA22-001
9/15/2022
Exhibit A
T-5433.014 / 1957883.doc
Council Agenda: 10-25-2022
Item No: 10.3(a)
EXHIBIT A
THIRD AMENDMENT TO DEVELOPMENT AGREEMENT
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.