Planning and Building Agency
www.santa-ana.org/planning-and-building
Item # 33
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 21, 2023
TOPIC: Second One-Year Extension for Site Plan Review No. 2016-03 and Variance Nos. 2017-05 and 2017-06 for The Madison Mixed-Use Development Project Entitled at 200 North Cabrillo Park Drive
AGENDA TITLE
Second One-Year Extension of Site Plan Review No. 2016-03 and Variance Nos. 2017- 05 and 2017-06 for The Madison Mixed-Use Development Project Located at 200 North Cabrillo Park Drive
RECOMMENDED ACTION
1. Adopt a resolution approving a second one-year extension of Site Plan Review No. 2016-03, Variance No. 2017-05, and Variance No. 2017-06.
RESOLUTION NO. 2023-XXX entitled A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA ANA APPROVING A ONE-YEAR EXTENSION OF SITE PLAN REVIEW NO. 2016-03, VARIANCE NO. 2017-05, AND VARIANCE NO. 2017- 05, AND VARIANCE NO. 2017-06 FOR THE MADISON MIXED-USE
DEVELOPMENT TO BE LOCATED AT 200 NORTH CABRILLO PARK DRIVE
2. Determine that in accordance with the California Environmental Quality Act (CEQA), the approval of the time extension is exempt form CEQA per Section 15061(b)(3).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
Background
On June 5, 2018, the City Council approved Appeal No. 2017-05, reversing the Planning Commission’s decision to deny Site Plan Review No. 2016-03, Variance No. 2017-05, and Variance No. 2017-06, for a reduction in parking and increased side yard setback, which facilitated the construction of a seven-story mixed-use development project with up to 260 units for the property located at 200 North Cabrillo Park Drive.
Pursuant to Section 41-647 of the Santa Ana Municipal Code (SAMC), entitlements such as variances automatically become void should the property owner fail to institute an action to comply with the provisions of the entitlements within two years of its
Second Extension of Entitlements for the Madison Mixed-Use Development (200 North Cabrillo Park Drive)
November 21, 2023
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approval. This section also allows the property owner to request an extension of the entitlement up to a period of three years from the date of the expiration.
The subject entitlements were in effect until June 5, 2020; however, due to difficulties stemming from the COVID-19 global pandemic, which affected the development industry worldwide, the applicant experienced delays in moving the project forward and constructing the new mixed-use development. During this time, a state of local emergency was declared stemming from the COVID-19 pandemic, which provided relief to residential developers by extending approvals of residential entitlements to December 31, 2022.
The applicant had submitted construction drawings into plan check on August 14, 2022, and was working through the plan check process when they requested the first one-year extension of the site plan and variances. The City Council approved the first one-year extension, which extended the entitlement approval through December 31, 2023.
Analysis
Due to increased cost of materials, changes in construction loan interest rates, labor shortage, and market changes impacting the applicant’s ability to develop the project, the applicant is requesting a second one-year extension through December 31, 2024.
Specifically, recent increases in interest rates beginning the first quarter of 2022 and continuing through 2023, and their impacts on construction loans and land development costs, have resulted in additional delays to the project’s ability to complete the plan check process, pull permits, and break ground on the project by the December 31, 2023, deadline that was established the City Council-approved entitlement extension.
As a result, the applicant is requesting a second one-year entitlement extension pursuant to Section 41-647 of the SAMC. In an effort to encourage construction of entitled projects, it is the Planning Division’s policy to recommend no more than one- year extensions at a time.
The applicant has since completed the building plan check process and is working through the Public Works Agency’s review process, which would need to be completed prior to permit issuance. Following the completion of the plan check process the applicant intends to obtain their permit and begin construction in third quarter of 2024 in order to effectuate its entitlements within a timely manner.
Second Extension of Entitlements for the Madison Mixed-Use Development (200 North Cabrillo Park Drive)
November 21, 2023
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ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act, the approval of the time extension is exempt form CEQA per Section 15061(b)(3). This determination has been made as it has been determined that the proposed action to extend the existing, approved entitlement does not have the potential to cause a significant effect on the environment, as the existing, approved entitlement has already been evaluated pursuant to CEQA.
FISCAL IMPACT
There is no fiscal impact associated with this action.
EXHIBIT(S)
1. Resolution Approving the Second One-Year Extension
2. Original Resolution Approving Entitlement (No. 2018-038)
3. Resolution Approving First One-Year Extension (No. 2022-092)
4. Full Project Plans
Submitted By: Minh Thai, Executive Director of the Planning and Building Agency Approved By: Steven A. Mendoza, Acting City Manager