Agenda packet — Santa Ana City Council, August 6, 2024 (part 7 of 9)

No GPU PEIR regulatory requirements or mitigation measures apply.

4.17 Transportation

4.17.1 GPU PEIR Findings
The GPU PEIR determined that buildout of the General Plan Update would not conflict with a program, plan, ordinance, or policy addressing the circulation system with implementation of RR T-1. RR T-1 requires the City to design and operate a balanced multimodal circulation system network with all users in mind including bicyclists, public transportation vehicles and riders, and pedestrians of all ages and abilities. The General Plan Update incorporates future networks and policies related to supporting transit, bicycles, and pedestrians in the City, which are consistent with regional and local planning efforts supporting these modes of travel. The GPU PEIR also determined that implementation of the General Plan Update would result in a reduction of VMT per service population in comparison to existing conditions at the time the GPU PEIR was prepared and would achieve a VMT per service population of at least 15 percent lower than the County VMT per service population. In addition, the GPU PEIR also determined that buildout of the General Plan Update would not substantially increase hazards due to a geometric design feature or result in inadequate emergency access with compliance with the City’s circulation plan and roadway design guidelines, the California Manual of Uniform Traffic Control Devices design guidelines, the policies in the City’s Mobility Element, and with implementation of RR T-2. RR T2 requires projects pursuant to the General Plan Update to implement fire protection requirements as detailed in the Orange County Fire Authority’s (OCFA) Fire Prevention Guidelines and the California Fire Code. Overall, impacts related to transportation were determined to be less than significant.

4.17.2 Project Analysis

CONSISTENCY WITH APPLICABLE PROGRAM, PLAN, ORDINANCE, OR POLICY The Project does not propose changes to the existing circulation system in the Project area.

Pedestrian circulation for the proposed Project would continue to be provided via existing public sidewalks along Lake Center Drive and Susan Street within the vicinity of the Project Site. There are no bike paths, bike lanes, or bus routes along Lake Center Drive and South Susan Street adjacent to the Project Site. Additionally, based on the existing traffic and pedestrian volumes, current intersection geometrics, and review of the accident data, the installation of a traffic signal at the intersection of Alpine Street/Lake Center Drive at MacArthur Boulevard would not be warranted.40,41 Moreover, according to SAMC Chapter 36, Article XIII, Transportation 40 Linscott, Law & Greenspan, Engineers, Traffic Signal Warrant Analysis for Alpine Street/Lake Center Drive at MacArthur Boulevard, January 19, 2024.
41 The Traffic Signal Warrant Analysis was conducted for a project with three industrial buildings totaling 325,044 square feet. However, since the completion of the analysis, the total building square footage has been reduced to 313,244 square feet. Therefore, the Project’s analysis is conservative.

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Management, any developments with more than 250 employees would be required to prepare a Transportation Demand Management (TDM) plan. The proposed Project would result in approximately 425 employees and would be required to prepare a TDM plan to reduce demand on the circulation system by promoting alternative modes of transportation, reducing or limiting the number of vehicle trips, and implementing other strategies to reduce the demand on the circulation system. The TDM plan for the proposed Project would be required to comply with standards and regulations listed within the SAMC. Thus, the proposed Project would not conflict with any program, plan, ordinance, or policy addressing the circulation system and impacts would be less than significant.

VMT ASSESSMENT
According to the City of Santa Ana Traffic Impact Study Guidelines (City Traffic Guidelines), a project can be presumed to have a less-than-significant VMT impact if the project satisfies one of the following screening criteria: 42

• Projects which serve the local community and have the potential to reduce VMT, such as neighborhood K-12 schools and local-serving retail less than 50,000 sq. ft. (Charter schools are excluded from this criteria).
• Projects that generate less than 110 net daily trips. • Projects located within Transit Priority Areas (TPAs); refer to City Traffic Guidelines Appendix A, Santa Ana Transit Priority Areas.
• Projects located in a low-VMT generating Traffic Analysis Zone (TAZ). City Traffic Guidelines Appendix B, VMT/SP in Santa Ana as Compared to Orange County Average, shows VMT per service population in Santa Ana as compared to the County average.

Low-VMT TAZs per Santa Ana’s threshold of significance are any TAZs generating VMT 15 percent below the County average.

The Project proposes to demolish three buildings and a parking structure to construct three new industrial buildings for office, manufacturing, and/or warehouse use. According to the Attachment K, Trip Generation Assessment, the trip generation potential for the existing land use totals 1,930 daily trips, with 271 trips (238 inbound, 33 outbound) during the AM peak hour and 256 trips (44 inbound, 212 outbound) during the PM peak hour. The proposed Project would generate approximately 1,544 gross daily trips with 222 gross trips (169 inbound, 53 outbound) during the AM peak hour and 242 gross trips (76 inbound, 166 outbound) during the PM peak hour. Thus, the proposed Project would generate 386 fewer gross daily trips, 49 fewer gross AM peak hour trips and 14 fewer gross PM peak hour trips than existing uses. Therefore, the proposed Project would meet the screening criteria for projects that generate less than 110 net daily trips.

Additionally, according to the Attachment L, Vehicle Miles Traveled (VMT) Screening Assessment for the Proposed South Coast Technology Center (VMT Assessment),43 prepared by Linscott, Law & Greenspan, Engineers (LLG) dated February 29, 2024, the Project Site is located within a TPA, which is defined as a 0.5-mile radius around an existing or planned major transit stop (e.g., Metrolink Station, Streetcar Station, etc.) or an existing stop along a high-quality transit corridor. 42 City of Santa Ana, City of Santa Ana Traffic Impact Study Guidelines, September 2019. 43 The VMT Assessment was conducted for a project with three industrial buildings totaling 325,044 square feet.

However, since the completion of the analysis, the total building square footage has been reduced to 313,244 square feet. Therefore, the VMT assessment is conservative.

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Further, the Project is consistent with the land uses in the 2020-2024 RTP/SCS, which assumed the Project Site would be built out with an industrial use. Thus, the Project also meets the screening criteria related to projects located within TPAs. Overall, the Project meets two of the VMT screening requirements and thus, no VMT analysis would be required. Accordingly, the Project’s VMT impact is presumed to be less than significant.

HAZARDS AND EMERGENCY ACCESS
The Project would not introduce incompatible uses to area roadways. Site access would not change as part of the proposed Project. Similar to existing conditions, the Project Site would be accessible from driveways along Lake Center Drive and South Susan Street. Project driveways and internal roadways would be designed to meet City standards. Additionally, the proposed Project would not require any full road closures during Project construction. Emergency access to the Project Site and within the surrounding area would be maintained during construction and operation of the Project. Furthermore, pursuant to RR T-2, the Project would be required to implement OCFA’s fire protection requirements to ensure that the Project would not adversely affect emergency vehicle access. Therefore, impacts related to hazards and emergency access would be less than significant.

Based on the above, the Project would not result in new or substantially more severe impacts compared to the determinations of the GPU PEIR, which concluded that impacts related to consistency with a circulation plan, program, ordinance, or policy; VMT; hazards; and emergency access would be less than significant. Therefore, no new project-specific mitigation measures are required.

4.17.3 Conclusion
The Project is consistent with the General Plan Update and would not have any specific effects which are peculiar to the Project or the Project Site. There are no project-specific impacts or potentially significant off-site or cumulative impacts that the GPU PEIR did not analyze, and there are no new significant or substantially more severe transportation impacts than anticipated by the GPU PEIR.

4.17.4 Applicable GPU PEIR Regulatory Requirements/Mitigation Measures:

RR T-2 Projects pursuant to the General Plan Update will implement fire protection requirements as detailed in the Orange County Fire Authority’s Fire Prevention Guidelines and in the California Fire Code.

4.18 Tribal Cultural Resources

4.18.1 GPU PEIR Findings
As discussed in the GPU PEIR, the City consulted with applicable Native American tribes in accordance with SB 18 and AB 52 and determined that future development allowed under the General Plan Update could potentially impact and cause significant adverse impacts to portions of the City with sensitivity to tribal cultural resources. The GPU PEIR MM CUL-4 through MM CUL-7 were included to reduce such impacts. Specifically, GPU PEIR MM CUL-4 requires an Archaeological Resources Assessment for projects with ground disturbance to be conducted under the supervision of an archaeologist that meets the Secretary of the Interior’s Professionally Qualified Standards in either prehistoric or historic archaeology. Further, if unpaved surfaces are present within the project area, and the entire project area has not been previously surveyed within the past 10 years, a Phase I pedestrian survey is required. If potentially significant City Council 28 – 156 8/6/2024
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archaeological resources are identified and impacts cannot be avoided, GPU PEIR MM CUL-5 requires a Phase II Testing and Evaluation investigation to be performed by an archaeologist meeting the Secretary of the Interior’s Standards to determine the significance of the resource(s), and site-specific mitigation measures to be developed for significant resources. Per GPU PEIR MM CUL-6, if the Archaeological Resources Assessment does not identify archaeological resources but indicates the project area is highly sensitive for archeological resources, a qualified archaeologist and a Native American monitor culturally affiliated with the project area must monitor all ground-disturbing activities in the areas of high archaeological sensitivity. In the event that archaeological resources (artifacts or features) are exposed during ground-disturbing activities, construction activities in the immediate vicinity of the discovery must halt while the resources are evaluated for significance by a qualified archaeologist. Pursuant to GPU PEIR MM CUL-7, if the Archaeological Resources Assessment does not identify potentially significant archaeological resources but the site has moderate sensitivity for archaeological resources, an archaeologist meeting the Secretary’s Standards must be retained on-call. The archaeologist must inform all construction personnel prior to construction activities about the proper procedures in the event of an archaeological discovery. According to the GPU PEIR, impacts related to tribal cultural resources would be reduced to less-than-significant levels with implementation of GPU PEIR MM CUL-4 through MM CUL-7.

4.18.2 Project Analysis
The following section evaluates potential impacts to tribal cultural resources that would result from the construction and operation of the proposed Project. The analysis is primarily based upon Attachment M, Tribal Cultural Resources Identification Memorandum (Tribal Cultural Resources Memorandum). Additionally, as discussed above in Section 3, California Environmental Quality Act Regulatory Setting, the proposed Project qualifies for an exemption under CEQA Guidelines Section 15183. Therefore, no formal government-to-government consultation pursuant to AB 52 is required for the proposed Project.

Based on the Tribal Cultural Resources Memorandum, the Project Site is located in a region traditionally important to multiple Native American groups. In particular, these include the Gabrielino (including the Tongva and Kizh), the Juaneño or Acjachemen, and the Luiseño. In March 2024, a Native American Heritage Commission search of the Sacred Lands File for any Native American cultural resources that might be affected by the Project yielded negative results.

Moreover, as discussed in Section 4.5, Cultural Resources, a records search of the Project Site and a half-mile search radius identified five resources within the Project area, none of which are located within or adjacent to the Project Site. An archaeological field survey conducted in February 2024 identified two marine shell scatters along the northeast portion of the Project Site’s vacant parcel; none of the shell observed on-site showed any sign of burning or other cultural modification. No prehistoric artifacts were observed, either within or outside the shell scatters anywhere on the Project Site. Based on the results of the field survey, a follow-up visit occurred to conduct limited subsurface testing to understand the origin of the shell scatters and determine whether the shell is an archaeological resource. Based on the collective evidence from the geotechnical trenching and the archaeological shovel test pits, it was concluded that the shell scatters do not constitute an archaeological site. All the observed shell and shell fragments are unmodified. All the documented shell and shell fragments were located at or within 10 cm of the surface, within artificial fill. No prehistoric artifacts were observed anywhere in the Project Site.

The collective evidence is that the shells and shell fragments were brought in with imported fill and dumped at the site relatively recently. Thus, the shell scatters are not part of a prehistoric deposit and are not historical resources as defined by CEQA Section 15064.5(a).

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The Project would redevelop a 10.2-acre office park and develop an approximately 5.6-acre vacant field. The majority of the excavation for the proposed buildings would require overexcavation for the building pads at a depth of approximately 5 to 8 feet. Trenches for utility connections would require a maximum excavation depth of 14 feet. Based on the Tribal Cultural Resources Memorandum, sensitivity for cultural resources consisting of archaeological sites is considered low at and near the surface but increases to moderate with depth. The late nineteenth to early twentieth century bed of the Santa Ana River was located approximately 0.6 miles to the northwest and would have provided abundant resources to area inhabitants. As the river meandered and changed its course, it or its tributaries may have been located closer to the Project area at times. These conditions heighten the sensitivity of the Project area for buried cultural resources.

However, the Project area has an extensive history of recent disturbances. East of Susan Street, the Project Site is entirely developed by the construction of multi-storied office buildings, a pond, and parking lots. Building methods at the time, and the installation of associated utilities, would have resulted in the disturbance of archaeological sites buried at shallow depths. West of Susan Street, geotechnical testing indicates that a layer of imported fill, ranging from 3 to 4.5 feet thick, covers the entire Project Site. However, buried resources may remain in areas where developments such as parking lots or structures with shallow foundations have required only minimal ground disturbance, or below the existing imported fill. Therefore, the sensitivity of the Project area at the surface and near surface is low due to past disturbances. However, excavations for the Project are anticipated to disturb a large part of the Project Site to points below the level of existing fill and other disturbances. The sensitivity for potential buried prehistoric archaeological sites is moderate in these undisturbed soils.

Therefore, consistent with the GPU PEIR, the proposed Project would implement GPU PEIR MM CUL-7 since the Cultural Memorandum did not identify potentially significant resources but portions of the Project Site with undisturbed soils has been determined to be moderately sensitive for buried resources. With implementation of GPU PEIR MM CUL-7, impacts would be reduced to less-than-significant levels. Additionally, in the event that human remains are uncovered during ground disturbing activities, the Project would be required to comply with California Health and Safety Code Section 7050.5 (RR CUL-1) and Public Resources Code Section 5097.98 to ensure that Project impacts to human remains would be less than significant.

Based on the above, the Project would not result in new or substantially more severe impacts would occur compared to the determinations of the GPU PEIR, which concluded that impacts to tribal cultural resources would be less than significant with mitigation incorporated. Therefore, no new project-specific mitigation measures are required.

4.18.3 Conclusion
The Project is consistent with the General Plan Update. With implementation of RR CUL-1 and GPU PEIR MM CUL-7 identified in the GPU PEIR, the proposed Project would not have any specific effects which are peculiar to the Project or the Project Site. There are no project-specific impacts or potentially significant off-site or cumulative impacts that the GPU PEIR did not analyze, and there are no new significant or substantially more severe tribal cultural resources impacts than anticipated by the GPU PEIR.

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4.18.4 Applicable GPU PEIR Regulatory Requirements/Mitigation Measures:

Refer to Section 4.5, Cultural Resources, for RR CUL-1 and MM CUL-7.

4.19 Utilities and Service Systems

4.19.1 GPU PEIR Findings
The GPU PEIR concluded that buildout of the General Plan Update would increase sewer flows and sewer upgrades may be needed to achieve optimal hydraulic capacity. However, the City’s Sewer Master Plan and Capital Improvement Program process would adequately prioritize necessary projects as developments under the General Plan Update occur. Additionally, as described in the GPU EIR any project within the City and under the GPU that goes through the entitlement process would be required to perform a sewer monitoring study with submittal and review of the study by City staff. If the sewer system is found to be deficient, the developer would be required to upsize the portion of the sewer pipe within the frontage of their property in accordance with City standards and could pay for the upsize through agreements with the Orange County Sanitary District (OCSD).

The GPU PEIR also concluded that OCSD wastewater treatment plants would have the capacity to accommodate the increased flows generated by the buildout of the General Plan Update.

Additionally, the GPU PEIR states that that any sewer utility infrastructure improvement would be designed, constructed, and operated in accordance with the City’s Design Guidelines for Water and Sewer Facilities, and development would be required to abide by the requirements of OCSD’s ordinances and wastewater discharge requirements of the NPDES permit. Overall, with compliance with General Plan Update policies related to wastewater and implementation of RR U-1 through RR U-3, impacts related to wastewater infrastructure and wastewater treatment facilities were determined to be less than significant.

The GPU PEIR concluded that buildout of the General Plan Update would increase water demand, but the City would have adequate capacity for the proposed increases in water demand across the City and adequate supplies from the City, Orange County Water District, and Metropolitan Water District of Southern California to meet the increased demand. Furthermore, policies in the General Plan Update encourage business and industry to improve their performance in water conservation, promote the implementation of cost-effective conservation strategies and programs that increase water-use efficiency, and encourage and educate residents, business owners, and operators of public facilities to use water wisely and efficiently.

Policies also promote the maintenance and upgrade of water infrastructure through impact fees from new development and use of drought-tolerant landscape. Overall, with compliance with General Plan Update policies related to water and implementation of RR U-5 through RR U-7, impacts related to water infrastructure and supply were determined to be less than significant.

The GPU PEIR concluded that, while the City is largely developed, buildout of the General Plan Update would result in vacant lots being developed into higher-intensity uses that could increase peak-flow runoff. However, the City has policies in place for reviewing and permitting new developments, which includes review of potential increases in runoff. Policies in the General Plan Update also encourage site drainage features that reduce impermeable surface area, increase surface water infiltration, and minimize surface water runoff during storm events on private and public developments. Overall, with compliance with General Plan Update policies related to drainage and stormwater and implementation of RR U-8.1, RR HYD-1, and RR HYD-4, impacts related to stormwater drainage were determined to be less than significant.

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The GPU PEIR concluded that waste generated by buildout of the General Plan Update could be accommodated by existing facilities. Additionally, all development pursuant to the General Plan Update would comply with the CALGreen Code, which requires that at least 65 percent of nonhazardous construction and demolition waste from nonresidential construction operations be recycled and/or salvaged for reuse. Policies in the General Plan Update also encourage land uses and strategies that reduce waste generation and support infill development projects that provide adequate and creative solutions for waste and recycling collection activities. Overall, with compliance with General Plan Update policies related to solid waste and implementation of RR U-7 and RR U-8.2, impacts related to solid waste were determined to be less than significant.

As stated in the GPU PEIR, the forecasted increase in electricity and natural gas demand for the plan area is well within the forecasted demand in Southern California Edison’s and Southern California Gas Company’s service area, respectively. Furthermore, development pursuant to the General Plan Update would be required to comply with energy efficiency standards, appliance efficiency regulations, CALGreen, and policies of the General Plan Update for energy-efficient building design and maintenance practices. Therefore, the GPU EIR concluded that impacts related to other utilities, including electric power, natural gas, and telecommunications facilities would be less than significant.

4.19.2 Project Analysis
The Project proposes to demolish three buildings and a parking structure to construct three new industrial buildings for office, manufacturing, and/or warehouse use. According to the Attachment N, Water Supply & Sewer Demand Assessment, prepared by Incledon Consulting Group, dated January 10, 2024, the proposed fixture units (i.e., drinking fountains, toilets, sinks) associated with the three new industrial buildings would result in a nearly 40 percent reduction in demand for water due to the change in building usage from office to industrial use. Thus, there would also be large reduction in wastewater. The proposed Project would connect to existing wastewater distribution and treatment infrastructure, which would have the capacity to serve the Project’s reduced demand in addition to existing service commitments and would not require the expansion of existing facilities. Compliance with RR U-2 would ensure that OCSD connection fees are paid in accordance with Ordinance No. OCSD-40. Thus, Project impacts related to wastewater infrastructure and treatment would be less than significant and less than the impacts disclosed in the GPU PEIR.

As stated above, the proposed Project would result in a nearly 40 percent reduction in water use due to the change in building usage from office to industrial use. The proposed Project would also require water for landscaping; however, water use for landscaping would be minimal as the proposed Project would use drought-tolerant landscape. Additionally, the proposed Project would comply with RR U-5, which requires the Project to be designed pursuant to the water conservation and efficiency requirements of the SAMC, and RR U-6, which requires payment of water connection fees. Since the Project Site’s water demand would be significantly reduced compared to existing conditions, the City’s existing water infrastructure and supplies would be sufficient to serve the Project. As such, the Project impacts related to water infrastructure and supply would be less than significant and less than the impacts discussed in the GPU PEIR.

As discussed in Section 4.10, Hydrology and Water Quality, the Project would introduce a new use to the Project Site (i.e., industrial/warehousing), and thus, would be required to comply with the requirements of the General Industrial Permit and RR HYD-2. A preliminary WQMP has been prepared for the proposed Project to comply with the requirements of the County’s NPDES Stormwater Program (RR HYD-4) and to be consistent with the Orange County Drainage Area City Council 28 – 160 8/6/2024
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Management Plan. The WQMP describes site design and drainage. Moreover, according to Attachment I, Preliminary Drainage and Hydrological Study, the proposed Project would increase imperviousness but due to modifications in stormwater flow paths within the Project Site, peak runoff produced from the site is expected to decrease or remain the same as existing conditions.

The Drainage Study determined that the proposed Project has been designed to effectively capture and convey the Project’s storm water to the existing/public systems during a 10-year storm, utilizing a new on-site storm drain system that would collect surface water from the on-site BMP catch basins. The system would continue the flow patterns of the existing conditions by utilizing the street’s infrastructure and an on-site storm drain system. Therefore, consistent with the General Plan Update, impacts related to stormwater drainage would be less than significant.

Regarding solid waste, the proposed Project would include the demolition of existing buildings and pavement on-site, which would generate 8,400 tons of crushed concrete and 2,100 tons of crushed a/c paving during construction. The proposed Project would minimize construction waste by complying with the CALGreen Code, which requires new development projects to submit and implement a construction waste management plan in order to reduce the amount of construction waste transported to landfills (RR U-7). During operation, the proposed Project would also generate waste typical of industrial and warehouse uses. Any recyclable or green waste would be diverted from landfills, in compliance with RR U-8 and AB 341. As discussed in the GPU PEIR, existing landfills have adequate capacity to serve the City, including the proposed Project.

Therefore, consistent with the General Plan Update, impacts related to solid waste would be less than significant.

The proposed Project would require electricity for construction and operation of the Project. The proposed Project would not use natural gas during operation and natural gas is generally not required to power construction equipment. As summarized under Section 4.6, Energy, the Project would not result in substantial energy consumption. The proposed Project would also comply with existing regulatory requirements, including the 2022 Title 24 Building Energy Efficiency Standards. The 2022 Title 24 provides minimum efficiency standards related to various building features, including appliances, water and space heating and cooling equipment, building insulation and roofing, and lighting. Specifically, the Project would install energy efficient appliances (RR U-11), and high efficiency lighting that would exceed the 2022 Title 24 standards by 10 percent (RR U-10). Additionally, the Project would be required to pay connection and ongoing user fees to SCE and SoCalGas to offset Project impacts on existing dry utility services and resources. Thus, impacts with regards to other utilities would be less than significant.

Therefore, the Project would not result in new or substantially more severe impacts compared to the determinations of the GPU PEIR, which concluded that impacts related to water supply, wastewater treatment, storm water drainage, solid waste, and other utilities would be less than significant. Therefore, no new project-specific mitigation measures are required.

4.19.3 Conclusion
The Project is consistent with the General Plan Update. With implementation of RR U-2, RR U-5, RR U-6, RR U-7, RR U-8.1, U-8.2, RR U-10, RR U-11, RR E-1 through RR E-5, RR E-7, RR HYD1, RR HYD-2, RR HYD-4, and RR HYD-5 identified in the GPU PEIR, the proposed Project would not have any specific effects which are peculiar to the Project or the Project Site. There are no Project specific impacts or potentially significant off-site or cumulative impacts the GPU PEIR failed to analyze, and there are no new significant or substantially more severe impacts to utilities and service systems than anticipated by the GPU PEIR.

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4.19.4 Applicable GPU PEIR Regulatory Requirements/Mitigation Measures:

Refer to Section 4.6, Energy, for RR E-1 through RR E-5 and RR E-7, and Section 4.10, Hydrology and Water Quality, for RR HYD-1, RR HYD-2, RR HYD-4, and RR HYD-5.

RR U-2 Any new connections to the Orange County Sanitation District system or expansion of a previous connection shall pay a capital facilities charge in accordance with Ordinance No. OCSD-40.

RR U-5 Any development implemented under the General Plan Update shall abide by the water conservation and efficiency requirements detailed in Chapter 8, Article XVI, Chapter 39, Article VI and Chapter 41, Article XVI of the Santa Ana Municipal Code.

RR U-6 Water connection fees shall be paid in accordance with Chapter 39, Article II of the City’s Municipal Code and plumbing shall be installed in compliance with Chapter 8, Article III.

RR U-7 All development pursuant to the General Plan Update shall comply with Section

4.408 of the 2019 California Green Building Code Standards, which requires new development projects to submit and implement a construction waste management plan in order to reduce the amount of construction waste transported to landfills.

RR U-8.144 Storm drain shall be installed in compliance with Chapter 8, Article III, of the Santa Ana Municipal Code.

RR U-8.234 All development pursuant to the General Plan Update shall store and collect recyclable materials in compliance with Assembly Bill 341. Green waste will be handled in accordance with Assembly Bill 1826.

RR U-10 New buildings are required to achieve the current California Building Energy and Efficiency Standards (Title 24, Part 6) and California Green Building Standards Code (CALGreen) (Title 24, Part 11).

RR U-11 All new appliances would comply with the 2012 Appliance Efficiency Regulations (Title 20, California Code of Regulations, Sections 1601 through 1608)

4.20 Wildfire

4.20.1 GPU PEIR Findings
As stated in the GPU PEIR, the City does not contain any very high fire hazard severity zones (VHFHSZ). The CEQA Guidelines require analysis of wildfire risk in state responsibility areas (SRAs) and/or lands classified as VHFHSZs. According to the GPU PEIR, the nearest fire hazard severity zone (FHSZ) in an SRA to the City of Santa Ana is a high FHSZ about four miles east along the western edge of Loma Ridge. The nearest FHSZ in a local responsibility area (LRA) is about 3.8 miles at the southern tip of the Peters Canyon Regional Park. Thus, buildout of the General Plan Update would not substantially impair an adopted emergency response plan or emergency evacuation plan, exacerbate wildfire risks thereby creating elevated particulate 44 Please note that there was an error in the numbering of RRs in the GPU EIR and two RR U-8 requirements are listed. In order to avoid confusion for the purposes of this document, we have renumbered them as RR U-8.1 and RR U-8.2.

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concentration exposure to people, or expose people or structures to significant risks. While buildout of the General Plan Update would require the installation and maintenance of associated infrastructure in areas that are undeveloped or vacant, which could exacerbate fire risk, no impact would occur related to VHFHSZs.

4.20.2 Project Analysis
As stated in the GPU PEIR, the City does not contain any VHFHSZ and is not in or adjacent to an SRA. Therefore, the Project Site is not in or near SRAs or lands classified as VHFHSZs. As such, consistent with the GPU PEIR, no impact related to wildfire would occur as a result of the proposed Project.

4.20.3 Conclusion
The Project is consistent with the General Plan Update and would not have any specific effects which are peculiar to the Project or the Project Site. There are no Project specific impacts or potentially significant off-site or cumulative impacts that the GPU PEIR did not analyze, and there are no new significant or substantially more severe impacts to wildfire than anticipated by the GPU PEIR.

4.20.4 Applicable GPU PEIR Regulatory Requirements/Mitigation Measures:

No GPU PEIR regulatory requirements or mitigation measures apply.

5. Findings
As discussed in Section 3.0, the proposed Project qualifies for a CEQA exemption under CEQA Guidelines Section 15183. The General Plan Update and GPU PEIR were adopted and certified by the Santa Ana City Council in 2022. The Project Site is located within the southwestern portion of the City on three parcels on the south side of Lake Center Drive in both the southeast and southwest corners of the intersection with Susan Street. The Project Site is designated Industrial (IND), which provides space for activities such as light and heavy manufacturing, warehousing, processing, and distribution as well as commercial uses ancillary to industrial activities. The Project Site is zoned SD-58. According to Ordinance No. NS-2089, permitted uses in the SD-58 District are professional and business offices providing personal and professional services including employment agencies, medical insurance, real estate, travel, trade contractors, architects, engineers, finance, research and development, and other similar use. The SD-58 District also allows commercial/retail uses, including service commercial uses such as daycare centers, banks and other financial institution, delicatessens, food stores, newsstands, automobile support facilities, health and exercise centers and other similar uses, office and computer equipment, copy centers and other similar uses, office and computer equipment, postal centers, restaurants, travel services, and other similar uses.

The proposed Project would demolish the Lake Center Office Park, including the three existing buildings, a parking structure, and parking lots to construct three new Class A industrial buildings for office, manufacturing, and/or warehouse use. To allow the use of the proposed buildings, the Project proposes to amend SD-58 to allow for industrial uses. Specifically, SD-58 would be amended to allow for the use of Limited Light Industrial uses, consistent with the General Plan Update. The Project qualifies for an exemption from additional environmental review as set forth in CEQA Guidelines Section 15183 based on the following findings:

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(1) The project is consistent with the development density established by existing zoning, community plan or general plan policies for which an EIR was certified.

Based on General Plan Update Land Use Element Figure LU-1, Land Use Map, the Project Site is designated Industrial (IND). According to the General Plan Update Land Use Element Table LU-3, Density and Intensity Standards, the Industrial designation generally allows a maximum

0.45 floor-area-ratio (FAR) with a typical maximum building height of 35 feet. However, Table LU3 provides a specific exception for the Lake Center Development, defined by Specific Development Plan Number 58 (SD-58), that allows intensities up to 0.72 FAR (see Footnote 4 of General Plan Update Land Use Element Table LU-3). Similarly, regarding height, Table LU-3 Footnote 2 explains that the actual maximum standard allowed on each site may be different than listed in Table LU-3 and that the allowable height of development on any parcel is subject to the zoning standards. SD-58 District permits a maximum FAR of 0.72 and a maximum height of 200 feet for the Project Site.

The proposed Project would demolish the Lake Center Office Park and construct three new buildings totaling 313,244 square feet. The Project Site is approximately 15.8-acres. Thus, the Project would result in a 0.46 FAR. Additionally, the maximum height of the proposed buildings would be 48 feet and 4 inches. Although the Project proposes to amend SD-58 to allow for industrial uses, the Project would not change the FAR or maximum height allowed in SD-58. Thus, the proposed Project would be consistent with the development density established by the General Plan Update for SD-58. Additionally, the Project would be consistent with applicable General Plan Update Land Use Element policies as detailed in Table 4.11-1. Overall, the Project would be consistent with Criterion (1).
(2) There are no project specific effects which are peculiar to the project or its site.

The Project Site is located in a highly developed and urbanized area of Santa Ana. The Project Site consists of an existing 10.2-acre office park, the Lake Center Office Park, and an approximately 5.6-acre vacant field to the west of and separated from the office park by the northsouth South Susan Street. The Project Site is designated Industrial (IND) and zoned SD-58.

Surrounding uses adjacent to the Project Site include office, commercial, government, and recreational uses, and are designated Industrial (IND) and Professional & Administrative Office (PAO). The proposed Project would be consistent with the land use designation of the Project Site. Additionally, operation of the proposed Project as industrial buildings for office, manufacturing, and/or warehouse use would be consistent with the surrounding uses of the Project Site. As evaluated in Section 4.0, there are no Project specific effects which are peculiar to the Project or its site. Therefore, the proposed Project is consistent with Criterion (2). (3) There are no project specific impacts that were not analyzed as significant effects in the prior EIR.

The GPU PEIR concluded that buildout of the General Plan Update would result in a total of 115,053 residential units and 72,967,816 square feet of non-residential development by 2045.

The proposed Project, which is consistent with the General Plan Update, involves the demolition of the Lake Center Office Park and construction of three new buildings. The proposed Project would result in an increase of 135,218 square feet of non-residential uses. The Project would be consistent with the development density requirement for the IND designation and thus, was considered in the planned development of the General Plan Update and would have similar or lesser significant impacts than analyzed in the GPU PEIR. As evaluated in Section 4.0, there are no Project specific impacts which the GPU PEIR did not analyze as significant effects. Therefore, the proposed Project is consistent with Criterion (3).

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South Coast Technology Center Project
CEQA Exemption 15183

July 2024 Page 102
(4) There are no potentially significant off-site and/or cumulative impacts that were not discussed in the prior EIR.

As stated, buildout of the proposed Project is consistent with the General Plan Update and, thus, was considered in the GPU PEIR analysis. No off-site improvements are proposed in the Project area and the size and nature of the Project would not result in cumulatively considerable environmental impacts. As evaluated in Section 4.0, there are no potentially significant off-site and/or cumulative impacts from the Project which the GPU PEIR did not discuss. Therefore, the Project is consistent with Criterion (4).
(5) There is no substantial new information which results in more severe impacts than anticipated by the prior EIR.

As evaluated in Section 4.0, the proposed Project would result in similar and/or lesser impacts than the GPU PEIR. There is no substantial new information which results in more severe impacts than anticipated by the GPU PEIR. Therefore, the Project is consistent with Criterion (5).

As shown, the proposed Project is consistent with the criteria in CEQA Guidelines Section 15183.

As such, the proposed Project qualifies for the CEQA exemption.

City Council 28 – 165 8/6/2024
South Coast Technology Center Project
CEQA Exemption 15183

July 2024 Page 103

REFERENCES
Berger, Elliott H., et al., Noise Navigator Sound Level Database with Over 1700 Measurement Values, June 26, 2015.

California Air Resources Board, 2022 Scoping Plan, November 16, 2022.

California Department of Conservation, California Important Farmland Finder, https://maps. conservation.ca.gov/DLRP/CIFF/, accessed February 27, 2024.

California Department of Conservation Division of Mines and Geology, A General Location Guide for Ultramafic Rocks in California – Areas More Likely to Contain Naturally Occurring Asbestos Report, August 2000, https://ww3.arb.ca.gov/toxics/asbestos/ofr_2000-019.pdf, accessed April 3, 2024.

California State Water Resources Control Board, GeoTracker, https://geotracker.waterboards.ca. gov/map/, accessed April 25, 2024.

California Department of Toxic Substances Control, Envirostor, https://www.envirostor.dtsc.ca. gov/public/, accessed April 25, 2024.

California Department of Transportation, California State Scenic Highway System Map, https://caltrans.maps.arcgis.com/apps/webappviewer/index.html?id=465dfd3d807c46cc8 e8057116f1aacaa, accessed April 25, 2024.

California Department of Transportation, Technical Noise Supplement to the Traffic Noise Analysis Protocol, September 2013.

California Department of Transportation, Transportation Related Earthborne Vibrations, 2002.

City of Santa Ana, City of Santa Ana Climate Action Plan, December 2015.

City of Santa Ana, City of Santa Ana Traffic Impact Study Guidelines, September 2019.

City of Santa Ana, City of Santa Ana Zoning Map, March 4, 2021.

City of Santa Ana, General Plan Update Program Environmental Impact Report, Table 5.13-7, Population and Employment Projections for Santa Ana and Orange County, October 2021.

City of Santa Ana, Golden City Beyond, Santa Ana General Plan Land Use Element, Figure LU1, Land Use Map, April 2022.

City of Santa Ana, Golden City Beyond, Santa Ana General Plan Mobility Element, accessed on April 2022.

City of Santa Ana, Santa Ana Municipal Code, codified through Ordinance No. NS-3049, adopted July 18, 2023.

Environmental Health Perspectives, Vehicle Motion Alarms: Necessity, Noise Pollution, or Both? https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3018517/, accessed March 20, 2024.

City Council 28 – 166 8/6/2024
South Coast Technology Center Project
CEQA Exemption 15183

July 2024 Page 104
Federal Highway Administration, Roadway Construction Noise Model User’s Guide Appendix A, January 2006.

Federal Transit Administration, Noise and Vibration Impact Assessment Manual, Section 5.2, Sources of Transit Ground-borne Vibration and Noise, September 2018.

Geosyntec Consultants, Draft Phase I Environmental Site Assessment for 3100, 3110, and 3120 Lake Center Drive, Santa Ana 92704, April 2024.

Geosyntec Consultants, Phase I Environmental Site Assessment for Undeveloped Parcel, West Lake Center Drive, Santa Ana 92704, April 2024.

Incledon Consulting Group, DP 2023-37 (3100 W Lake Center Dr. – South Coast Technology Center) Water Supply & Sewer Demand Assessment, January 10, 2024.

Incledon Consulting Group, Preliminary Water Quality Management Plan (WQMP) – South Coast Technology Center Development, June 6, 2024.

Incledon Consulting Group, South Coast Technology Center Development Preliminary Drainage and Hydrological Study, June 2024.

International Code Council, 2022 California Building Code, Title 24, Part 2, https://codes.iccsafe.org/content/CABC2022P1/chapter-18-soils-and-foundations, accessed July 26, 2023.

Linscott, Law & Greenspan, Engineers, Traffic Signal Warrant Analysis for Alpine Street/Lake Center Drive at MacArthur Boulevard, January 19, 2024.

Linscott, Law & Greenspan, Engineers, Trip Generation Assessment for the Proposed South Coast Technology Center Project, January 2, 2024.

Linscott, Law & Greenspan, Engineers, Vehicle Miles Traveled (VMT) Screening Assessment for the Proposed South Coast Technology Center - Santa Ana, CA, February 29, 2024.

Michael Baker International, Air Quality Technical Memorandum – South Coast Technology Center Project, June 14, 2024.

Michael Baker International, Cultural and Paleontological Resources Identification Memorandum for the South Coast Technology Center, City of Santa Ana, Orange County, California, April 10, 2024.

Michael Baker International, Energy Assessment Memorandum – South Coast Technology Center Project, June 13, 2024.

Michael Baker International, Greenhouse Gas Technical Memorandum – South Coast Technology Center Project, June 14, 2024.

Michael Baker International, Health Risk Assessment Technical Memorandum – South Coast Technology Center Project, June 19, 2024.

Michael Baker International, Noise and Vibration Assessment Memorandum – South Coast Technology Center Project, June 14, 2024.

City Council 28 – 167 8/6/2024
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CEQA Exemption 15183

July 2024 Page 105
Michael Baker International, Tribal Cultural Resources Identification Memorandum for the South Coast Technology Center, City of Santa Ana, Orange County, California, April 10, 2024.

NMG Geotechnical, Inc., Geotechnical Design Report for Lake Center Office Park Redevelopment, South Coast Technology Center, 3100 Lake Center Drive, City of Santa Ana, California, April 18, 2024.

NMG Geotechnical, Inc., Geotechnical Review of Shallow Groundwater and Potential Dewatering during Grading and Construction, Lake Center Office Park Redevelopment Project, City of Santa Ana, California, June 12, 2024.

San Joaquin Valley Air Pollution Control District, Application for Leave to File Brief of Amicus Curiae Brief of San Joaquin Valley Unified Air Pollution Control District in Support of Defendant and Respondent, County of Fresno and Real Party In Interest and Respondent, Friant Ranch, L.P. In the Supreme Court of California. Sierra Club, Revive the San Joaquin, and League of Women Voters of Fresno v. County of Fresno, April 13, 2015.

South Coast Air Quality Management District, Application of the South Coast Air Quality Management District for Leave to File Brief of Amicus Curiae in Support of Neither Party and Brief of Amicus Curiae. In the Supreme Court of California. Sierra Club, Revive the San Joaquin, and League of Women Voters of Fresno v. County of Fresno, April 3, 2015.

South Coast Air Quality Management District, Draft Guidance Document – Interim CEQA Greenhouse Gas (GHG) Significance Threshold, October 2008 South Coast Air Quality Management District, Rule 1113 Architectural Coatings, http://www.aqmd .gov/docs/default-source/rule-book/reg-xi/r1113.pdf, accessed June 15, 2023.

Southern California Association of Governments, 2020-2045 Regional Transportation Plan/ Sustainable Communities Strategy – Connect SoCal, September 3, 2020.

Southern California Association of Governments, Local Profiles Report, Profile of the City of Santa Ana, May 2019, https://scag.ca.gov/sites/main/files/file-attachments/santaana_local profile.pdf?1606012682, accessed June 5, 2024.

Southern California Association of Governments, Local Profiles Report, Profile of Orange County, May 2019, https://scag.ca.gov/sites/main/files/file-attachments/orangecountylp.pdf?1606 012194, accessed June 5, 2024U.S. Army Corps of Engineers, Corps reclassifies Prado Damn, implements risk-reduction measures,
https://www.spl.usace.army.mil/Media/News-Releases/Article/1849301/corpsreclassifies-prado-dam-implements-risk-reduction-measures/, May 15, 2019.

U.S. Fish and Wildlife Service. Critical Habitat for Threatened and Endangered Species Online Mapper, https://fws.maps.arcgis.com/home/webmap/viewer.html?webmap=9d8de5e265 ad4fe09893cf75b8dbfb77, accessed April 25, 2024.

U.S. Fish and Wildlife Service. National Wetlands Inventory Wetlands Mapper. https://fwsprimary .wim.usgs.gov/wetlands/apps/wetlands-mapper/, accessed April 25, 2024.

City Council 28 – 168 8/6/2024

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City Council 28 – 169 8/6/2024
EXHIBIT 6
The South Coast Technology Center California Environmental Quality Act (CEQA) Exemption 15183 Environmental Documentation Technical Appendices may be accessed at:

www.FinanceDTA.com
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds

FISCAL IMPACT ANALYSIS
REPORT
EPD SOLUTIONS, INC.

PROPOSED SOUTH COAST TECHNOLOGY CENTER

PROJECT

CITY OF SANTA ANA, CA
May 13, 2024
City Council 28 – 171 8/6/2024
www.FinanceDTA.com 18201 Von Karman Avenue, Suite 220
Irvine, CA 92612
EPD SOLUTIONS, INC.

FISCAL IMPACT ANALYSIS REPORT

PROPOSED SOUTH COAST TECHNOLOGY CENTER

PROJECT

CITY OF SANTA ANA, CA
Prepared for:

EPD Solutions, Inc.
3333 Michelson Drive, Suite 500
Irvine, CA 92612
Attention: Meaghan Truman
City Council 28 – 172 8/6/2024
TABLE

OF CONTENTS

SECTION PAGE
I EXECUTIVE SUMMARY ................................................... 1 A Purpose of the Study .......................................................... 1 B Fiscal Impacts on the City Evaluated in This
Study .................................... Error! Bookmark not defined.

C Description of the Project ................................................. 1 D Conclusions of the Fiscal Impact Analysis
(“FIA”) ..................................................................................... 3 II INTRODUCTION .............................................................. 4 A Scope and Methodology – Recurring Fiscal
Impacts .................................................................................. 4 B Major Assumptions and Analysis Used in
This Report ........................................................................... 5 C Limitations – Accuracy of Information ......................... 6

III DESCRIPTION OF RECURRING FISCAL
REVENUES/COSTS ........................................................... 8 A Analysis of Recurring Revenues, Case Study
Method .................................................................................. 8 B Analysis of Recurring Revenues, Multiplier
Method ................................................................................ 12 C Analysis of Recurring Costs, Case Study
Method ................................................................................ 15 D Analysis of Recurring Costs, Multiplier
Method ................................................................................ 15 IV FISCAL IMPACTS ........................................................... 18 A Total Recurring Revenues ............................................... 18 B Total Recurring Costs ...................................................... 19 C Overall Net Fiscal Impact ................................................ 20

APPENDICES

APPENDIX A FIA
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1 SECTION I

EXECUTIVE SUMMARY
EPD Solutions, Inc. May 13, 2024
South Coast Technology Center Fiscal Impact Analysis Report www.FinanceDTA.com

I EXECUTIVE SUMMARY
A Purpose of the Study
The objective of this Fiscal Impact Analysis (“FIA”) Report (the “Report”) is to analyze the incremental net fiscal impact of the proposed South Coast Technology Center project (the “Project”) on the City of Santa Ana (the “City”) General Fund. To provide the City with a comprehensive evaluation of the Project’s potential, this DTA Report will evaluate whether the Project is likely to generate an incremental net fiscal surplus or a net fiscal deficit to the City’s General Fund.

B Incremental Fiscal Impacts on the City’s General Fund The fiscal impacts identified in this Report include annual recurring municipal revenues and costs that result from the Project’s proposed land use scenario. To provide an accurate fiscal picture of the Project, the Report will focus exclusively on annual recurring revenues and costs.

Recurring revenues to the City General Fund identified in this Report are generated from a variety of sources, including property taxes, sales taxes, in-lieu vehicle license fees, utility user taxes, licenses and permits, franchise fees, fines, and other revenue sources. Although these revenues vary from year to year, they recur on a regular basis and are part of the City’s annual budgeting plans. The recurring costs to the City General Fund are equally important in this analysis. Recurring costs are associated with a variety of City services, including public safety, public works maintenance, and general government administrative services.

Similar to annual revenues, these are costs that the City must anticipate and plan to fund on a yearly basis.

Revenues that are considered non-recurring to the City General Fund, such as various permitting fees, are excluded from this analysis. These types of revenues have been excluded as new development is generally required to pay specific user fees, such as grading and building prior to the construction of the project. As these are considered one-time revenues, there is no expectation that new development will need to pay these fees on a recurring basis. In addition, costs imposed as a result of the proposed Project that are considered to be non-recurring, such as impact fees, are also excluded from the FIA calculations because they are expended on a one-time basis to fund new development’s fair share of capital improvement costs.

C Description of the Project
The Project site, as depicted in Figure 1 below, is generally comprised of two separate sites located on both sides of Susan Street in the City, with the site on the east side currently developed with three existing office buildings located at 3100, 3110, and 3120 West Lake Center Drive, and the site on the west side encompassing approximately 5.58 acres of vacant land. The entire Project site is located within the City Specific Development No. 58 (“SD58”) zoning district, with the permissible land uses comprised of commercial/retail uses and professional and business offices.

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2 SECTION I

EXECUTIVE SUMMARY
EPD Solutions, Inc. May 13, 2024
South Coast Technology Center Fiscal Impact Analysis Report www.FinanceDTA.com
Figure 1: Aerial Map for the Project Site
The Project proponent is proposing to demolish the existing office buildings and appurtenant infrastructure on the Project site,and to amend the permissible uses of SD-58 for the Project site to include limited light industrial uses (“LLIUs”), including but not limited to product assembly, the manufacture of biological, biomedical, and pharmaceutical products, the manufacture of scientific, engineering, and medical instruments, wholesale, warehousing, machine and other metal working shops, and research laboratories.

As illustrated in Figure 2 and presented in Table 1 on the following page, the Project site is proposed to be redeveloped with three buildings encompassing approximately 313,244 building square feet (“BSF”) of LLIU space.

Figure 2: Proposed Project Site Plan
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3 SECTION I

EXECUTIVE SUMMARY
EPD Solutions, Inc. May 13, 2024
South Coast Technology Center Fiscal Impact Analysis Report www.FinanceDTA.com
Table 1: Proposed Land Uses for the Project
Land Uses Building Square Feet
Industrial Building 1 112,230
Industrial Building 2 121,645
Industrial Building 3 79,369
Grand Total 313,244
D Conclusions of the Fiscal Impact Analysis (“FIA”)
The body of this Report will present the results of the incremental FIA, including narratives and tables detailing the fiscal impacts of the Project on specific General Fund revenue and expenditure categories. As presented in Table 2 and illustrated in Figure 3, below, the Project site is anticipated to generate a sizable annual recurring incremental fiscal surplus at build-out of $257,736 based on the generation of $460,412 in annual recurring revenues and $202,676 in recurring annual costs. Overall, the annual revenues generated are projected to equal 2.27 times the associated City General Fund costs. In a fiscal impact analysis, a revenue/cost ratio >1 is expected to generate a positive net fiscal impact. A summary of the overall incremental fiscal impacts of the Project to the City General Fund is provided in Appendix A.

Table 2: Net Fiscal Impact (the City’s General Fund)
Category Impact/Ratio
Total Recurring Revenues $460,412
Total Recurring Costs* $202,676
Annual Recurring Surplus/(Deficit) $257,736
Total Annual Revenue/Cost Ratio 2.27
Figure 3: Net Fiscal Impact (the City’s General Fund)

City Council 28 – 176 8/6/2024
4 SECTION II

INTRODUCTION
EPD Solutions, Inc. May 13, 2024
South Coast Technology Center Fiscal Impact Analysis Report www.FinanceDTA.com

II INTRODUCTION
DTA has been retained by EPD Solutions, Inc. to analyze the fiscal impacts of the development of the proposed South Coast Technology Center project (the “Project”) on the City of Santa Ana (the “City”) General Fund. The Project site is generally comprised of two sites located on both sides of Susan Street in the City, with the one on the east side currently developed with three existing office buildings located at 3100, 3110, and 3120 West Lake Center Drive, and the one on the west side encompassing approximately

5.58 acres of vacant land. The entire Project site is located within the City Specific Development No. 58 (“SD-58”) zoning district, with the permissible land uses of professional and business offices and commercial/retail uses.

The Project proponent is proposing to demolish the existing office buildings and appurtenant infrastructure on the Project site, and amend the permissible uses of SD-58 for the Project site to include limited light industrial uses (“LLIUs”), including but not limited to product assembly, the manufacture of biological, biomedical, and pharmaceutical products, the manufacture of scientific, engineering, and medical instruments, wholesale, warehousing, machine and other metal working shops, and research laboratories.

To provide the City with a comprehensive evaluation of the Project’s potential, DTA will determine whether the Project is likely to generate an incremental net fiscal surplus or a net fiscal deficit to the City’s General Fund.

A Scope and Methodology – Recurring Fiscal Impacts
Fiscal impacts arising from a land development plan can be broadly categorized as one of two types, specifically one-time impacts or recurring impacts. Each of these types may, in turn, be divided into a revenue component and cost component. In this Report, it is assumed that one-time revenues would directly offset one-time costs. This is consistent with Section 66000 et. seq. of the California Government Code, which authorizes a municipality to require the payment of development impact fees equal in value to the cost of the public infrastructure necessary to support a development project.

Thus, the fiscal impacts considered in this Report focus on ongoing, or recurring, fiscal impacts of the Project on the City General Fund. Revenues that are generated outside of the City General Fund (e.g., special district revenues) or costs that are incurred by the City outside of the General Fund (e.g., costs financed through a special district) are not included within this fiscal analysis.

The FIA presented in this Report utilizes two methods of analysis, specifically the Per Capita/Multiplier Approach and Case Study Approach. The primary Multiplier Methodology used is the Per Capita (“Persons Served”) Methodology, which recognizes the fact that the exact relationship of service demands and revenue-generating potential between residents and employees is difficult to quantify. In order to address this challenge, several assumptions are employed.

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5 SECTION II

INTRODUCTION
EPD Solutions, Inc. May 13, 2024
South Coast Technology Center Fiscal Impact Analysis Report www.FinanceDTA.com
First, based on more than 30 years of preparing fiscal impact studies and performing peer reviews of similar studies prepared by other consulting firms, DTA has determined that utilizing a Persons Served population comprised of all residents and 50% of the employees working at locations within a given service area is common fiscal practice in generally quantifying the impacts of new development if more specific local data or facilities usage data is not readily available. This ratio suggests that a resident generally has twice the fiscal impact of an employee on the use of a typical public improvement and can be applied to a City’s General Fund budget to calculate average revenues and costs per Person Served on a Citywide basis using a Multiplier Approach. While a fiscal impact analysis focused on marginal revenues and costs associated with a specific new development project (with greater emphasis on a Case Study Approach) is often applied to larger projects, the consulting budgets required to evaluate individual metrics related to each type of municipal revenue and service, including interviews with individual municipal departments, can be prohibitive for smaller projects. As a result, while DTA did utilize a Case Study Approach for General Fund revenues and costs that were easy to quantify (e.g., property taxes, sales taxes, and utility user taxes), many of the metrics employed in this Report are based on average revenues/costs per Person Served utilizing the Fiscal Year (“FY”) 2023-2024 City budget as could be applied to the Project.

DTA also used solely a Per Employee Methodology in this Report to project recurring fiscal factors that relate to employment only, such as business license revenues. Similar to the Persons Served Methodology discussed above, the Per Employee Methodology involves dividing the applicable revenues/costs by the total number of employees in the City utilizing the FY 2023-24 City budget, and applying these factors to the specific number of employees forecast to be working within the Project under the given scenario.

For the purposes of the Report, all recurring revenues and costs are stated in constant (uninflated) 2024 dollars based on the assumption that the relative impacts of inflation in future years will be the same for both fiscal impact categories.

B Major Assumptions and Analysis Used in This Report
B.1 Discounting Revenues and Expenses
Certain revenues and expenditures presented in this Report are not expected to increase on a one-to-one basis with the addition of new development. To project these numbers without any adjustment would result in inaccurate conclusions.

To accurately account for this factor, DTA applied a series of discount rates to specific budget components. Based on an examination of the numbers presented in the City’s annual General Fund budget, 15% and 90% discount rates were applied to several revenue categories as documented in Appendix A-1. As discussed in the previous section of this Report, revenues that are considered nonrecurring to the City General Fund, such as revenues generated by building/planning/engineering fees, are excluded from this analysis. Furthermore, DTA applied a 100% discount rate to financing source categories that are deemed City Council 28 – 178 8/6/2024
6 SECTION II

INTRODUCTION
EPD Solutions, Inc. May 13, 2024
South Coast Technology Center Fiscal Impact Analysis Report www.FinanceDTA.com
static, in terms of their not being anticipated to increase significantly as a result of the construction of the Project. This includes intergovernmental and commercial cannabis tax revenues, revenues generated by property rentals, jail leases, and advertisements, and cost recoveries and reimbursements
This same discounting technique was applied to the General Fund expenditures to accurately reflect the estimated ratio of fixed costs to variable costs. Notably, DTA has assumed that no discount factors would be applied to police, public works, and fire protection expenditures. As documented in Appendix A-1, a 15% discount rate is applied to remaining services expenditures. The marginal increase in the general government overhead costs associated with the additional non-general government expenditures incurred by new development is assumed to be 75%, which means a 25% discount was applied to these overhead costs.

B.2 Employee Generation
DTA estimated the number of direct employees at the Project’s build-out based upon the 737 Square Feet per Employee (“SF/E”) provided by the Project proponent. Based on several data sources that provided this type of data for similar land uses, DTA deemed this metric to be appropriate for the Project. As summarized in the attachment for Appendix A-3, the Project is anticipated to generate 425 direct on-site employees at its build-out.

B.3 Valuation per BSF
This report provides an estimated valuation per BSF calculation. Accuracy in these calculations is important because these totals are used to determine expected property revenues. The estimated valuation of $389.79 per BSF is derived based on the projected land value and construction costs of $122.1 million and 313,244 BSF as provided by Project proponent.

C Limitations – Accuracy of Information
The fiscal model in the Report contains an analysis of revenues, costs, and impacts to the City resulting from the Project. This model is based on information provided to DTA by Project proponent, the City’s FY 2023-24 budget, the County’s FY 2023-24 Assessor’s Roll, Housing and Population Information from the California Department of Finance, a 2023 City of Santa Ana Employment Profiles analysis using North American Industry Classification System codes as prepared by Environics Analytics, a U.S. Energy Information Administration Energy Consumption Survey, Internet research performed by DTA regarding various industries, and additional assumptions derived from DTA’s municipal cost database, as compiled by DTA from previous fiscal impact studies prepared by the firm. The sources of information and basis of the estimates calculated in the Report are stated herein. While DTA is confident that the sources of information are reliable, DTA does not express an opinion or any other form of assurance on the accuracy of such information. The analysis of fiscal impacts contained in this Report is City Council 28 – 179 8/6/2024
7 SECTION II

INTRODUCTION
EPD Solutions, Inc. May 13, 2024
South Coast Technology Center Fiscal Impact Analysis Report www.FinanceDTA.com
not considered to be a “financial forecast” or a “financial projection” as technically defined by the American Institute of Certified Public Accountants. The word “projection” used within this Report relates to broad expectations of future events or market conditions. Since the analysis contained herein is based on estimates and assumptions that are inherently subject to uncertainty and variation depending on evolving events, DTA cannot represent that such estimates will definitely be achieved. Some assumptions inevitably will not materialize, and unanticipated events and circumstances may occur.

Therefore, the actual results achieved may vary from the projections stated throughout the Report.

City Council 28 – 180 8/6/2024
8 SECTION III

DESCRIPTION OF RECURRING

FISCAL REVENUES/COSTS
EPD Solutions, Inc. May 13, 2024
South Coast Technology Center Fiscal Impact Analysis Report www.FinanceDTA.com

III DESCRIPTION OF RECURRING FISCAL REVENUES/COSTS
A Analysis of Recurring Revenues, Case Study Method
A.1 Property Taxes – Secured and Unsecured
Property tax revenues are specifically based on the City’s estimated share of the general 1% ad valorem property tax levy. Per the County Auditor’s Office, the City’s General Fund receives approximately 19.30% of the FY 2023-24 basic 1% [Proposition (“Prop”) 13] property tax from the Tax Rate Areas (“TRAs”) encompassing the Project.

The remaining 80.70% are distributed to a variety of taxing entities as summarized in Table 3 below, with 67.35% of the total estimated $1.22 million in annual property taxes earmarked for educational purposes. The basic 1% property tax collected is considered a significant source of municipal revenues. The net apportionment factors for each taxing entity represent the fraction of the FY 2023-24 basic 1% ad valorem property tax that it will receive from the Project TRAs after deducting the projected Education Revenue Augmentation Fund (“ERAF”) property tax shifts.

Table 3: 1% Ad Valorem Property Tax Distribution Among Taxing Entities Taxing Purpose/Taxing Entity
Net
Apportionment
Factor
Estimated
Property
Tax
County 0.10522489379 $128,480
General Fund 0.06706762904 $81,890
Flood Control District 0.02152166856 $26,278
Parks CSA 26 0.01663559619 $20,312
City 0.19296953238 $235,616
General Fund 0.19296953238 $235,616
Education 0.67354729727 $822,402
ERAF Fund 0.19081315008 $232,983
Santa Ana Unified School District 0.37790501072 $461,422 Rancho Santiago Community College District 0.08310048144 $101,466 Orange County Department of Education 0.02172865503 $26,531 Special District 0.02825827656 $34,504
Orange County Cemetery District 0.00054103515 $661
Orange County Vector Control District 0.00121524893 $1,484 Orange County Water District 0.00781725639 $9,545
Orange County Transit Authority 0.00305422873 $3,729
Orange County Sanitation District #7 0.01563050736 $19,085 Grand Total 1.00000000000 $1,221,002
Note: All numbers are subject to rounding.

City Council 28 – 181 8/6/2024
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DESCRIPTION OF RECURRING

FISCAL REVENUES/COSTS
EPD Solutions, Inc. May 13, 2024
South Coast Technology Center Fiscal Impact Analysis Report www.FinanceDTA.com
Major property tax assumptions are summarized in Table 4 below.

Table 4: Property Tax Assumptions
Description Assumptions
Land Use and Estimated Taxable Valuation
Industrial Building One 112,230 BSF @ $389.79/BSF
Industrial Building Two 121,645 BSF @ $389.79/BSF
Industrial Building Three 79,369 BSF @ $389.79/BSF
Total Land Use Net Taxable Value $122,100,000
Secured Property Tax – Net Apportionment Factor to the City as a Fraction of 1.0% Property Tax Rate (Net of ERAF)
City’s General Fund 19.296953238%
Unsecured Property Tax – Unsecured Taxes as a % of Secured Property Value Non-Residential Property 10.00%
Property Tax Transfer
Non-Residential Property Turnover Rate 0.00%
Transfer Tax as a % of Assessed Value 0.11%
Property Transfer Tax Passed Through to the City 50.00% Property Taxes in Lieu of Vehicle License Fees (“VLFs”) City – Total Assessed Value (FY 2023-24) $34,504,366,076 City – VLF Property Tax Revenues (FY 2023-24) $42,044,300 VLF Property Tax In-Lieu per $1,000 Assessed Value $1.22 Unsecured property taxes collected in the City are levied on tangible personal property that is not secured by real estate. Specific examples of unsecured property include trade fixtures such as manufacturing equipment, computers, dock equipment, conveyors, forklifts, and racks and shelves.

A.2 Property Taxes in Lieu of VLFs
The passage of Prop 1A in California in 2004 enacted a constitutional amendment that introduced a new methodology to calculate Property Taxes in Lieu of VLFs. Per California Revenue and Taxation Code §97.70, the amount of Property Taxes in Lieu of VLFs now grows in proportion to the growth rate of gross assessed valuation in a city or county. Property Taxes in Lieu of VLF revenues are projected to grow with the change in the Citywide gross assessed valuation of taxable property from the prior FY.

Property Taxes in Lieu of VLF revenues constitute an addition to other property tax apportionments and were calculated for the purposes of this Report at $1.22 per $1,000 increase in assessed valuation on a Citywide basis. Table 4 presents details City Council 28 – 182 8/6/2024
10 SECTION III

DESCRIPTION OF RECURRING

FISCAL REVENUES/COSTS
EPD Solutions, Inc. May 13, 2024
South Coast Technology Center Fiscal Impact Analysis Report www.FinanceDTA.com
regarding the property tax assumptions utilized in the FIA. Property tax revenue generated in this category is presented later in the report in Table 10.

A.3 Sales Taxes
Direct sales tax revenues are generated by taxable sales from businesses within the City. The current sales tax rate in the City is 9.25%, with sales tax collected by the State and distributed to the City. The City currently receives approximately 2.54% of taxable sales receipts, which include a 1.00% sales tax established by Municipal Code §35.51 and Measure X sales tax, a 1.50% voter-approved sales tax to provide funding for neighborhood safety, homeless prevention, and essential City services enhancement. In addition, the City currently receives approximately 8.87% of the Proposition 172 sales tax receipts generated within the City (a 0.50% voter-approved sales tax dedicated to local public safety), which is equivalent to 0.04% sales tax rate.

Measure X rate will decrease to 1% in 2029 and sunset in 2039. In generating the fiscal impact models for this Report, DTA has conservatively assumed that Measure X sales tax at the Project’s build-out will only be 1%. In aggregate, 2.04% of taxable sales receipts are passed through to the City for purposes of this FIA. As reflected in Table 5, the proposed on-site non-residential land use types are conservatively assumed not to generate any taxable sales.

Table 5: Sales Tax Assumptions
Description Assumptions
Percentage of Sales Tax Passed Through to the City 2.04% Local Employee Spending (Spending in Fast Food/Deli/Lunch Eateries) $951 Non-Project Capture Rate of Retail Spending (Within the City) 25% Taxable Sales per BSF
Industrial Building One $0.00
Industrial Building Two $0.00
Industrial Building Three $0.00
Indirect sales tax revenues, as summarized in the table above, are generated by the purchases made by the Project’s employees within the City. With respect to on-site employee retail spendings, DTA conservatively limited the scope to meal purchases occurring in quick-service restaurants. Based on studies outlined in the International Council of Shopping Projects’ Office-Worker Retail Spending in a Digital Age, DTA estimates that an employee within the Project will spend an average of $951 annually in the Fast Food/Deli/Lunch Eateries category near their place of work. Assuming the off-site businesses in the City would capture on average 25% of the Project employees’ annual spending, each employee is estimated to spend $238 annually off-site within the City. The direct and indirect tax revenues generated are presented later in the Report in Table 10.

City Council 28 – 183 8/6/2024
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FISCAL REVENUES/COSTS
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A.4 Utility User Tax (“UUT”)
The UUT is imposed by the City on the consumption of utility services of telephone, electricity, natural gas, and water. The UUT rates for those utility services are presented in Table 6 below.

Table 6: UUT Assumptions
Description Assumptions
UUT Rates
Telephone (Municipal Code §3.16.020) 5.50%
Electricity (Municipal Code §3.16.030) 6.00%
Natural gas (Municipal Code §3.16.040) 6.00%
Water (Municipal Code §3.16.050) 6.00%
Annual Telephone Gross Receipts
Industrial Building One (5 Lines) $4,800
Industrial Building Two (5 Lines) $4,800
Industrial Building Three (4 Lines) $3,840
Electricity Usage and Cost
Kilowatthour (kWh) per BSF 10.8
Rate per kWh $0.0816
Natural Gas Usage and Cost
Cubic Feet (Cu. Ft.) per BSF 26.4
Rate per 1,000 Cu. Ft. $13.29
Water Usage and Cost
Gallons per BSF 8.3
Rate per 748 Gallons $2.60
The electricity, natural gas, and water usages, as reflected in the table above, assume that the Project buildings will house manufacturing facilities. DTA utilized the applicable electrical and natural gas usage metrics from the 2018 Commercial Buildings Energy Consumption Survey (“CBECS”) conducted by the U.S. Energy Information and Administration (“EIA”), with the sourcing of the water usage metric from the 2012 CBECS compiled by the EIA. The UUT revenues generated are presented later in the Report in Table 10.

A.5 Other Property Tax Revenue
Per California Revenue and Taxation Code §11901, et seq., and the City Code §3.22.020, sales of real property are taxed by the City at a rate of $0.55 per $1,000 of property value, excluding assumed liens or encumbrances. Since the Project proponent indicated that it plans to own and operate the Project for an extended City Council 28 – 184 8/6/2024
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FISCAL REVENUES/COSTS
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South Coast Technology Center Fiscal Impact Analysis Report www.FinanceDTA.com
period, DTA conservatively assumes that there will not be any sales of the Project components, therefore generating no property transfer tax.

A.6 Interest Income
Interest “Investment” Income revenues are generated by the increase in General Fund revenues resulting from the Project. This increase reflects growth in the following revenue categories: property taxes, VMT, sales taxes, utility user tax, and multiplier revenues (to be discussed in detail in the following sections of this Report).

Revenues from this source are usually estimated by multiplying the projected recurring General Fund revenues available for investment by the Local Agency Investment Fund (“LAIF”) investment fund rate of return. A LAIF percentage of earnings cost factor of 50% is then applied because the funds being invested on average will be available for only 1 month. Investment income assumptions are summarized in Table 7 below.

The projected recurring General Fund revenues available for investment total $460,017. This calculation results in estimated investment income (less earnings cost) of $395. It should be noted that LAIF factors are determined quarterly by the California State Treasurer, whose office governs the investment of revenues by municipalities.

Table 7: Investment Income Assumptions
Description Assumptions
Investment Period for Non-Interest General Fund Revenues 1 Month LAIF Rate of Return (Estimated) 2.06%
LAIF Percentage of Earnings 50%
Projected Recurring General Fund Revenues Available for Investment $460,017 B Analysis of Recurring Revenues, Multiplier Method
The Per Capita Employee (Persons Served) Multiplier figures presented in this section play a key role in understanding the impact of the proposed Project on the City’s General Fund. As stated in the introduction section of this Report, the Persons Served approach recognizes the fact that the exact relationship of service demands and revenue-generating potential between residents and employees is difficult to quantify, so a specific set of assumptions are needed.

To address this, DTA has introduced several assumptions, including the utilization of a service population, or Persons Served population, comprised of all service area residents and 50% of employees working in the service area, as this is common fiscal practice in quantifying the impact of new development in a given service area. This number suggests that a City resident generally has twice the fiscal impact of an employee within the City on the City General Fund.

The Persons Served population of the City is estimated at 370,403, equaling the total residents within the City (299,630) plus 50% of employees working in the City (141,545).

Utilizing the above assumptions, the multipliers presented in this section and illustrated in City Council 28 – 185 8/6/2024
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FISCAL REVENUES/COSTS
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Table 8 quantify the marginal increase in revenue per Person Served by each specific revenue category that will result from the development of the proposed Project.

Table 8: General Fund Revenues (Multiplier Method)
Category Amount Methodology Discount
Business License Tax $90.08 Per Employee 15%
Franchise Fees and Taxes $25.13 Person Served 15%
Charges for Services $24.50 Person Served 15%
Licenses and Permits $7.78 Person Served 15%
Fines, Forfeitures, and Penalties $12.98 Person Served 15% Adult-Use Retail Business Cannabis Tax $4.08 Person Served 90% Medical Marijuana Taxes $0.14 Person Served 90%
B.1 Business License Tax
Business license tax revenue is expected to increase as the City looks to expand its commercial and industrial sectors. The purpose of this annual tax is to ensure that businesses share the burden of payment for City services used by the business and/or their employees.

Note that the revenue multiplier presented in this section has been reduced by 15% to account for only the portion of the business license tax revenues that are expected to vary with population and employee growth in the City.

DTA forecasts the business license tax at $90.08 per employee using the Per Employee Multiplier Method, generating $38,284 in additional revenue to the City’s General Fund.

B.2 Franchise Fees and Taxes
Franchise fees and taxes are expected to play a consistent role in contributing to the City’s General Fund over the next several years. Generally, a tax is a compulsory payment levied by the government on its citizens and various business firms. In contrast, a fee is usually defined as a voluntary payment to the government for the special services rendered by it in the public interest. This distinction has become blurred as fees are usually a required part of doing business in a particular area or industry, so for the purpose of this Report, both terms will be referred to as fees.

Note that the revenue multiplier presented in this section has been reduced by 15% to account for only the portion of the franchise fee and tax revenues that are expected to vary with population and employee growth in the City, as opposed to such revenues that are fixed and will therefore remain unchanged by the Project.

DTA has forecasted franchise fees at $25.13 per Person Served using the Per Capita Multiplier Method (this represents a marginal increase in revenue per additional Persons Served in this category). This is expected to generate $5,353 in additional City Council 28 – 186 8/6/2024
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FISCAL REVENUES/COSTS
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revenue to the City’s General Fund.

B.3 Charges for Services
Charges for services is another area that generates revenues on behalf of the City’s General Fund, accounting for 3% of total General Fund recurring revenues in FY 2023-24. This category is made up of service charges and fees imposed on users for specialized services provided by the City under the rationale that benefiting parties, rather than the general public, should pay for the cost of those services.

Note, only charges for non-development services are evaluated for this Report.

Note that the revenue multiplier presented in this section has been reduced by 15% to account for only the portion of the charges for services revenues that are expected to vary with population and employee growth in the City, as opposed to such revenues that are fixed and will therefore remain unchanged by the Project.

DTA has forecasted charges for services at $24.50 per Person Served using the Per Capita Multiplier Method (this represents a marginal increase in revenue per additional Persons Served in this category). This is expected to generate $5,219 in additional revenue to the City’s General Fund.

B.4 Licenses and Permits
In addition to business licenses, the City imposes fees on a variety of permits. This is a reliable source of revenue and it is expected to continue to be a steady contributor to the General Fund over the coming years. Note, only non-development licenses and permits are evaluated for this Report.

Note that the revenue multiplier presented in this section has been reduced by 15% to account for only the portion of the licenses and permits tax revenues that are expected to vary with population and employee growth in the City, as opposed to such revenues that are fixed and will therefore remain unchanged by the Project.

DTA forecasts the licenses and permits tax at $7.78 per Persons Served using the Per Capita Multiplier Method, generating $1,657 in additional revenue to the City’s General Fund.

B.5 Fines, Forfeitures, and Penalties
To ensure the payment of various licenses and fees, the City Code empowers the City to impose penalties and collect fines in several areas. Although considered a consistent revenue stream each year, the City expects to derive 1% of its total FY 2023-24 General Fund revenues from fines, forfeitures, and penalties.

Note that the revenue multiplier presented in this section has been reduced by 15% to account for only the portion of the fines, forfeitures, and penalties that are expected to vary with population and employee growth in the City. Fines, forfeitures, and penalties are projected at $12.98 per Person Served, generating $2,765 in City Council 28 – 187 8/6/2024
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DESCRIPTION OF RECURRING

FISCAL REVENUES/COSTS
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additional revenue to the City’s General Fund.

B.6 Retail Cannabis Taxes
The City currently imposes taxes on the retail sales of adult-use and medicinal cannabis. Although these retail cannabis taxes currently constitute 4% of City’s FY 2023-24 General Fund revenues, DTA conservatively applied a 90% discount rate to account for only the portion of the retail cannabis tax revenues that are expected to vary with population and employee growth in the City, as opposed to such revenues that are fixed and will therefore remain unchanged by the Project.

DTA forecasts the retail cannabis taxes at $4.22 per Person Served, generating $899 in additional revenue to the City’s General Fund.

C Analysis of Recurring Costs, Case Study Method
C.1 General Government Costs
General government costs are projected at a marginal rate of 75.00% of the City General Fund recurring costs, based on the assumption that the FY 2023-24 general government expenditures, equaling $99.2 million, will remain at the same relative proportion of the FY 2023-24 City total non-governmental expenditures of approximately $283.8 million in future years. Government costs in this area are generated from several areas, including the City Council, City Manager, City Attorney, City Clerk, Finance and Management Services, Human Resource, Planning and Building, and Non-Departmental expenditures.

According to the FY 2023-24 budget, the percentage of general government expenditures to non-governmental expenditures is approximately 34.9%. However, these general government costs are not expected to increase on a one-for-one basis as a result of the land use development depicted in this Report. Therefore, this Report assumes that general government costs increase at an estimated marginal rate of 75%, or 26.2% of the existing General Government cost overhead rate. This approach results in annual general government costs of $42,092. A detailed explanation of these calculations is presented in Appendix A-10.

D Analysis of Recurring Costs, Multiplier Method
As discussed previously in Section III.B, DTA utilized the Persons Served population approach to quantify the marginal increase in City’s General Fund expenditures resulting from the proposed Project. The multipliers presented in this section and illustrated in Table 9 quantify the marginal increase in expenditures per Person Served for each specific service category.

City Council 28 – 188 8/6/2024
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DESCRIPTION OF RECURRING

FISCAL REVENUES/COSTS
EPD Solutions, Inc. May 13, 2024
South Coast Technology Center Fiscal Impact Analysis Report www.FinanceDTA.com
Table 9: General Fund Expenditures (Multiplier Method)
Category Amount Methodology Discount
Police Department $396.34 Person Served 0%
Fire Department $152.49 Person Served 0%
Public Works $135.19 Person Served 0%
Park, Recreation & Community Services $34.90 Person Served 15% Community Development $14.20 Person Served 15%
Library $16.96 Person Served 15%
Museum $3.84 Person Served 15%
D.1 Non-General Government Costs
D.1.i Police Services
The FY 2023-24 City General Fund expenditures for police services are $146.8 million.

Notably, the cost multipliers presented in this section have not been discounted. The police services expenditures are projected at $396.34 per Person Served, resulting in an additional $84,420 to the City’s annual expenditures.

D.1.ii Fire Protection Services
The FY 2023-24 City General Fund expenditures for fire protection services are $56.5 million. Notably, the cost multipliers presented in this section have not been discounted. The fire protection services expenditures are projected at $152.49 per Person Served, resulting in an additional $32,480 to the City’s annual expenditures.

D.1.iii Public Works Services
The FY 2023-24 City General Fund expenditures for public works services are $50.1 million. Notably, the cost multipliers presented in this section have not been discounted. The public works services expenditures are projected at $135.19 per Person Served, resulting in an additional $28,795 to the City’s annual expenditures.

D.1.iv Park, Recreation & Community (“PRC”) Services
The FY 2023-24 City General Fund expenditures for PRC services are $15.2 million.

The cost multiplier presented in this section has been reduced by 15% to account for only the portion of the PRC services costs that are expected to vary with population and employee growth in the City. The PRC services expenditures are projected at $34.90 per Person Served, resulting in an additional $7,434 to the City’s annual expenditures.

D.1.v Community Development
The FY 2023-24 City General Fund expenditures for the community development services are $6.2 million. The cost multiplier presented in this section has been reduced by 15% to account for only the portion of the community development City Council 28 – 189 8/6/2024
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FISCAL REVENUES/COSTS
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services costs that are expected to vary with population and employee growth in the City. The community development services expenditures are projected at $14.20 per Person Served, resulting in an additional $3,025 to the City’s annual expenditures.

D.1.vi Library Services
The FY 2023-24 City General Fund expenditures for library services are $7.4 million.

The cost multiplier presented in this section has been reduced by 15% to account for only the portion of the library services costs that are expected to vary with population and employee growth in the City. The library services expenditures are projected at $16.96 per Person Served, resulting in an additional $3,612 to the City’s annual expenditures.

D.1.vii Museum Services
The FY 2023-24 City General Fund expenditures for museum services are $1.7 million.

The cost multiplier presented in this section has been reduced by 15% to account for only the portion of the museum services costs that are expected to vary with population and employee growth in the City. The museum services expenditures are projected at $3.84 per Person Served, resulting in an additional $818 to the City’s annual expenditures.

City Council 28 – 190 8/6/2024
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FISCAL IMPACTS
EPD Solutions, Inc. May 13, 2024
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IV FISCAL IMPACTS
A Total Recurring Revenues
The total recurring incremental revenues to the City are projected to be $460,412 per year.

As illustrated below in Table 10 and Figure 4, the largest percentage of revenue generated (82.4%) is attributed to the Property Tax category (including property tax in lieu of VLFs).

Given the existing assessed value for the Project site has been artificially restricted by a 2% annual escalator, the development of the components of the Project would remove that restriction and substantially increase the property taxes and in-lieu VLF revenues for the site. Attachments in Appendices A-4 through A-8 provide additional details regarding all recurring revenues and the assumptions used in their derivation.

Table 10: Recurring Fiscal Revenues (the City’s General Fund) Category Amount Percent
Secured Property Tax $235,616 51.2%
Unsecured Property Tax $23,562 5.1%
Property Taxes In Lieu of VLFs $120,157 26.1%
Indirect Sales Tax $2,066 0.4%
UUT $24,439 5.3%
Business Licenses $38,284 8.3%
Franchise Fees $5,353 1.2%
Charges for Services $5,219 1.1%
Licenses and Permits $1,657 0.4%
Fines and Forfeitures $2,765 0.6%
Adult-Use Retail Business Cannabis Tax $869 0.2%
Medical Marijuana Taxes $30 0.0%
Investment Income $395 0.1%
Total Revenues $460,412 100.0%
Note: All numbers are subject to rounding.

Figure 4: Recurring General Fund Revenues at Project Build-Out Broken Down by Source City Council 28 – 191 8/6/2024
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FISCAL IMPACTS
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B Total Recurring Costs
As illustrated in Table 11 and Figure 5 below, the City’s projected total annual incremental recurring costs are projected to be $202,676 per year. Police and fire protection services constitute two of the largest projected costs, respectively accounting for 41.7% and 16.0% of total recurring fiscal costs. Attachments in Appendices A-9 and A-10 provide additional details about all recurring costs and the assumptions used in their derivation.

Table 11: Recurring Fiscal Costs (the City’s General Fund) Category Amount Percent
Police Department $84,420 41.7%
Fire Department $32,480 16.0%
Public Works $28,795 14.2%
Park, Recreation & Community Services $7,434 3.7%
Community Development $3,025 1.5%
Library $3,612 1.8%
Museum $818 0.4%
General Government $42,092 20.8%
Total Costs $202,676 100.0%
Note: All numbers are subject to rounding.

Figure 5: Recurring General Fund Costs at Project Build-Out Broken Down by Source City Council 28 – 192 8/6/2024
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FISCAL IMPACTS
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South Coast Technology Center Fiscal Impact Analysis Report www.FinanceDTA.com
C Overall Net Fiscal Impact
Table 12 and Figure 6 below shows the overall incremental fiscal impact to the City. The Project site is anticipated to generate an annual recurring incremental fiscal surplus at build-out of $257,736 based on the generation of $460,412 in annual recurring revenues and $202,676 in recurring annual costs. Furthermore, annual revenues generated are projected to equal 2.27 times the associated City incremental General Fund costs.

Table 12: Net Fiscal Impact (the City’s General Fund)
Category Impact/Ratio
Total Recurring Revenues $460,412
Total Recurring Costs* $202,676
Annual Recurring Surplus/(Deficit) $257,736
Total Annual Revenue/Cost Ratio 2.27
Figure 6: Net Fiscal Impact (the City’s General Fund)
City Council 28 – 193 8/6/2024

APPENDIX A
EPD Solutions, Inc.

Proposed South Coast Technology Center Project
Fiscal Impact Report
FIA
City Council 28 – 194 8/6/2024
APPENDIX A-1
SANTA ANA, CALIFORNIA: SOUTH COAST TECHNOLOGY CENTER

CITY FUND REVENUES (BY TYPE)
I Demographics and Other Data
2023 Estimated City Population [1] 299,630
2023 Estimated City Employees [2] 141,545
2023 Persons Served Population [3] 370,403
Notes:
[1] California Department of Finance, Housing and Population Information, January 1, 2023. [2] Environics Analytics, EmploymentProfiles by NAICS Codes 2023 for the City of Santa Ana.

II City Revenue Sources (by Type)
Total
Revenues
Revenue
Type
Fiscal Impact
Basis Discount
Fiscal Impact
Revenue
Factor
Tax Revenue $249,028,390 Persons Served $0.00
Property Tax - Exclude In-Lieu of VLF $46,525,390 Recurring Case Study 0% NA Transient Occupancy Taxes $8,500,000 Recurring Case Study 0% NA Utility Users Tax $25,800,000 Recurring Case Study 0% NA Sales Tax $64,715,400 Recurring Case Study 0% NA
Prop 172 Sales Tax $2,871,200 Recurring Case Study 0% NA Measure X Sales Tax $88,616,400 Recurring Case Study 0% NA Documentary Stamp Tax $1,000,000 Recurring Case Study 0% NA Santa Ana Residual $11,000,000 Recurring Case Study 0% NA Business Licenses $15,000,000 Recurring Per Employee 15% $90.08 Franchise Fees $10,950,000 Recurring Persons Served 15% $25.13 Interest Income $700,000 Recurring Case Study 0% NA
Charges for Services $10,675,650 Recurring Persons Served 15% $24.50 Building/Planning/Engineering Fees $10,740,000 Non-Recurring NA 100% NA Licenses and Permits $3,388,240 Recurring Persons Served 15% $7.78 VLF/Property Tax Compensation $42,044,300 Recurring Case Study 0% NA Fines and Forfeitures $5,654,100 Recurring Persons Served 15% $12.98 Intergovernmental $7,789,340 Recurring NA 100% NA
Use of Money and Property $17,956,500 Recurring Persons Served 100% $0.00 Other / Miscellaneous $10,792,020 Recurring Persons Served 100% $0.00 Adult-Use Retail Business Cannabis Tax $15,116,130 Recurring Persons Served 90% $4.08 Commercial Cannabis Tax $416,000 Recurring Persons Served 100% $0.00 Medical Marijuana Taxes $528,000 Recurring Persons Served 90% $0.14 $400,778,670 NA NA NA NA
Total Recurring Revenues $390,038,670 NA NA NA NA
[3] Assumes City population plus 50% of employees.

Revenue Type
Total Revenues
City Council 28 – 195 8/6/2024
APPENDIX A-2
SANTA ANA, CALIFORNIA: SOUTH COAST TECHNOLOGY CENTER

CITY FUND EXPENDITURES (BY TYPE)
I Demographics and Other Data
2023 Estimated City Population [1] 299,630
2023 Estimated City Employees [2] 141,545
2023 Persons Served Population [3] 370,403
Notes:
[1] California Department of Finance, Housing and Population Information, January 1, 2023. [2] Environics Analytics, EmploymentProfiles by NAICS Codes 2023 for the City of Santa Ana. [3] Assumes City population plus 50% of employees.

II City Expenditures (by Type)
Total
Expenditures
Expenditure
Type
Fiscal Impact
Basis Discount
Fiscal Impact
Expenditure
Factor
General Government
City Council $1,021,070 Recurring Case Study NA NA
City Clerk's Office $2,411,150 Recurring Case Study NA NA City Manager's Office $3,144,680 Recurring Case Study NA NA City Attorney's Office $4,365,880 Recurring Case Study NA NA Planning and Building $20,146,220 Recurring Case Study NA NA Financial & Management Services $11,973,870 Recurring Case Study NA NA Human Resources $4,283,540 Recurring Case Study NA NA
Non-Departmental $51,847,740 Recurring Case Study NA NA Non-General Government
Police Department $146,805,550 Recurring Persons Served 0% $396.34 Fire Department $56,483,060 Recurring Persons Served 0% $152.49 Public Works $50,075,950 Recurring Persons Served 0% $135.19 Park, Recreation & Community Services $15,206,990 Recurring Persons Served 15% $34.90 Community Development $6,186,710 Recurring Persons Served 15% $14.20 Library $7,392,510 Recurring Persons Served 15% $16.96
Museum $1,674,210 Recurring Persons Served 15% $3.84
$383,019,130 NA NA NA NA
Total Recurring Expenditures $383,019,130 NA NA NA NA
Expenditure Type
Total Expenditures
City Council 28 – 196 8/6/2024
APPENDIX A-3
SANTA ANA, CALIFORNIA: SOUTH COAST TECHNOLOGY CENTER

LAND USE AND DEMOGRAPHICS SUMMARY
I Developable Land Use Description
A Projected Non-Residential Land Uses Building Sq. Ft. [1] Industrial Building One 112,230
Industrial Building Two 121,645
Industrial Building Three 79,369
I Non-Residential Land Use Employee Generation
A Projected Non-Residential Land Uses Sq. Ft. per Employee [2] Industrial Building One 737 BSF
Industrial Building Two 737 BSF
Industrial Building Three 737 BSF
I Projected Direct Employees
A Projected Non-Residential Land Uses Building Sq. Ft. Total Direct Employees Industrial Building One 112,230 BSF 152
Industrial Building Two 121,645 BSF 165
Industrial Building Three 79,369 BSF 108
I Total Projected Residential Population 0
II Total Projected Direct Employees 425
III Total Persons Served Population [3] 213
NOTES:
[1] Source: Project Proponent.
[2] Source: Project Proponent.
[3] An employee is typically assumed to be equivalent to 50% of a resident given they would spend only eight active hours in the City per day versus a resident who is active for 16 hours per day. * All figures subject to rounding
Population and Employees (Totals)
Future Land Use Data
Demographic Data
Population and Employees (Calculations)
City Council 28 – 197 8/6/2024
APPENDIX A-4
SANTA ANA, CALIFORNIA: SOUTH COAST TECHNOLOGY CENTER

PROPERTY TAX REVENUE ANALYSIS
I Property Tax Allocation (as a Portion of the 1% General Property Tax Levy) [1] A Category / Code Allocated to City [2]
General Fund 19.296953238%
Total 19.296953238%
I Non-Residential Land Uses
A Industrial Building One
Estimated Number of Sq. Ft. [3] 112,230
Estimated Valuation per Sq. Ft. [4] $390
Total Estimated Net Taxable Value $43,746,354
B Industrial Building Two
Estimated Number of Sq. Ft. [3] 121,645
Estimated Valuation per Sq. Ft. [4] $390
Total Estimated Net Taxable Value $47,416,246
C Industrial Building Three
Estimated Number of Sq. Ft. [3] 79,369
Estimated Valuation per Sq. Ft. [4] $390
Total Estimated Net Taxable Value $30,937,400
II Total Land Use Net Taxable Value $122,100,000
I Unsecured Property Taxes - Assumptions [5]
A Unsecured Taxes as a % of Secured
Non-Residential Property 10.00%
II Property Tax Transfer - Assumptions [6]
A Turnover Rate
Non-Residential Property 0.00%
B Other Assumptions
Transfer Tax as a % of Assessed Value 0.11%
Property Transfer Tax Passed Through to City of Santa Ana 50.00% III Motor Vehicle Licensing Fees - Assumptions
Vehicle Licensing Fees per Capita NA
IV Property Tax In-Lieu of Vehicle License Fee - Assumptions Total City of Santa Ana Gross Assessed Value [7] $34,504,366,076 City of Santa Ana Property Tax In-Lieu of Vehicle License Fee [8] $42,044,300 Property Tax In-Lieu of Vehicle License Fee Increase per $1,000 Assessed Value $1.22 I Fiscal Impact Category Annual Fiscal Impact Amount
A Secured Property Tax
A.1 Projected Non-Residential Land Uses
Industrial Building One $84,417
Industrial Building Two $91,499
Industrial Building Three $59,700
B Unsecured Property Tax
B.2 Projected Non-Residential Land Uses
Industrial Building One $8,442
Industrial Building Two $9,150
Industrial Building Three $5,970
General Property Tax Assumptions
Assessed Valuation Assumptions
Other Property Tax Revenue Assumptions
Fiscal Impact Calculation
City Council 28 – 198 8/6/2024
APPENDIX A-4
SANTA ANA, CALIFORNIA: SOUTH COAST TECHNOLOGY CENTER

PROPERTY TAX REVENUE ANALYSIS
C Property Tax In-Lieu of Vehicle License Fee [9]
Projected Residential and Non-Residential Land Uses $120,157 II Total Property Tax Revenues $379,335
NOTES:
[1] Based on "General Fund" levy for Tax Rate Area (TRA). Data provided by the County of Orange Auditor-Controller's Office. TRA allocations adjusted for ERAF. Note, figure does not include non-General Funds. [2] Post ERAF rates based on the weighted average of the fiscal year 2023-24 rates applicable to the TRAs in the Project.

Source: County of Orange Auditor-Controller Office.
[3] Please see Appendix A-3. Subject to change.
[4] Source: Project Proponent.
[5] Based on typical DTA baseline assumptions.
[6] Project Proponent plans to own the Project for an extended period. [7] Source: County of Orange Auditor-Controller's Office. [8] Source: City of Santa Ana Adopted Budget, Fiscal Year 2023-2024. [9] Property Tax in-lieu of Vehicle Licensing Fees applies to incremental property value.

Current estimated land value of Project site of $23,491,046 excluded from calculation. * All figures subject to rounding
City Council 28 – 199 8/6/2024
APPENDIX A-5
SANTA ANA, CALIFORNIA: SOUTH COAST TECHNOLOGY CENTER

SALES TAX REVENUE ANALYSIS
I Indirect Sales Tax Assumptions - Employees
Annual Spending per Employee [1] $951
II Retail Taxable Sales Capture
City of Santa Ana Retail Taxable Purchase Capture [2] 25% I Non-Residential Direct Sales Tax Assumptions
A Non-Residential Land Uses Taxable Sales per Sq. Ft [3] Industrial Building One $0.00
Industrial Building Two $0.00
Industrial Building Three $0.00
I Percent to the City of Santa Ana
City of Santa Ana Municipal Code §35-51 1.00%
Prop 172 Sales Tax [4] 0.04%
Measure X Sales Tax [5] 1.00%
Total 2.04%
I Fiscal Impact Category Annual Fiscal Impact Amount
A Indirect Sales Tax
A.1 Employee Taxable Sales
Direct Employees $2,066
B Direct Sales Tax
B.1 Projected Non-Residential Land Uses
Industrial Building One $0
Industrial Building Two $0
Industrial Building Three $0
II Total Sales Tax Revenues $2,066
NOTES:
[1] Based on the average spending on Fast Food/Deli/Lunch Eateries for workers with annual income between $50K and $75K. Source: "Office-Worker Retail Spending in a Digital Age," ICSC (2012).

Adjusted for inflation assuming 3% annual inflation rate. [2] Based on typical DTA baseline assumptions.
[3] Source: Project Proponent.
[4] The City projects to receive approximately 8.87% of the Prop 172 sales tax receipts generated within the City, which is equivalent to 0.04% sales tax rate. Source: City of Santa Ana Proposed Budget, Fiscal Year 2023-2024. [5] Current rate is 1.5%, decreases to 1.0% in 2029, and then sunsets in 2039. * All figures subject to rounding
Indirect Sales Tax Assumptions
Direct Sales Tax Assumptions
Other Sales Tax Assumptions
Fiscal Impact Calculation
City Council 28 – 200 8/6/2024
APPENDIX A-6
SANTA ANA, CALIFORNIA: SOUTH COAST TECHNOLOGY CENTER

UTILITY USERS' TAX REVENUE ANALYSIS
I Utility Usage Assumptions
Telephone Electricity Natural Gas Water
A Non-Residential Land Uses ($ per Business) [1] (kWh per Sq. Ft.) [2] (Cu. Ft. per Sq. Ft.) [3] (Gal. per Sq. Ft.) [4] Industrial Building One $4,800 10.8 26.4 8.3
Industrial Building Two $4,800 10.8 26.4 8.3
Industrial Building Three $3,840 10.8 26.4 8.3
II Energy Price Assumptions
A Non-Residential Land Uses
Electricity Costs per kWh [5] $0.0816
Natural Gas Rate per 1,000 Cu. Ft. [6] $13.29
Water Rate per 748 Gallons [7] $2.60
I Non-Residential Land Uses
A Industrial Building One
Telephone $4,800
Electricity $98,906
Natural Gas $39,377
Water $3,238
B Industrial Building Two
Telephone $4,800
Electricity $107,203
Natural Gas $42,680
Water $3,509
C Industrial Building Three
Telephone $3,840
Electricity $69,946
Natural Gas $27,847
Water $2,290
I Utility Users' Tax Rate Assumptions
Telephone (Municipal Code §3.16.020) 5.50%
Electricity (Municipal Code §3.16.030) 6.00%
Natural Gas (Municipal Code §3.16.040) 6.00%
Water (Municipal Code §3.16.050) 6.00%
I Fiscal Impact Category Annual Fiscal
Impact Amount
A Utility User's Tax - Telephone
A.1 Non-Residential Land Uses
Industrial Building One $264
Industrial Building Two $264
Industrial Building Three $211
B Utility User's Tax - Electricity
B.1 Non-Residential Land Uses
Industrial Building One $5,934
Industrial Building Two $6,432
Industrial Building Three $4,197
C Utility User's Tax - Natural Gas
C.1 Non-Residential Land Uses
Industrial Building One $2,363
Industrial Building Two $2,561
Industrial Building Three $1,671
D Utility User's Tax - Water
D.1 Non-Residential Land Uses
Industrial Building One $194
Industrial Building Two $211
Industrial Building Three $137
II Total Utility Users' Tax Revenues $24,439
Utility Assumptions
Gross Utility Receipts
Utility Users' Tax Assumptions
Fiscal Impact Calculation
City Council 28 – 201 8/6/2024
NOTES:
[1] Based on the current base cost of AT&T Business Unlimited Premium plan with varying number of lines depending on the business. [2] Source: Commercial Buildings Energy Consumption Survey, Table C15, 2018. [3] Source: Commercial Buildings Energy Consumption Survey, Table C25, 2018. [4] Source: Commercial Buildings Energy Consumption Survey, Table W1, 2012. [5] Source: https://www.electricitylocal.com/states/california/santa-ana/ [6] Source: https://naturalgaslocal.com/states/california/santa-ana/. [7] Source: Santa Ana Water District.
[8] Source: Project Proponent.
* All figures subject to rounding
City Council 28 – 202 8/6/2024
APPENDIX A-7
SANTA ANA, CALIFORNIA: SOUTH COAST TECHNOLOGY CENTER

MULTIPLIER REVENUE SOURCES ANALYSIS
I Revenue Category Multiplier Factor [1] Revenue Projection Basis Business Licenses $90.08 Per Employee
Franchise Fees $25.13 Persons Served
Charges for Services $24.50 Persons Served
Licenses and Permits $7.78 Persons Served
Fines and Forfeitures $12.98 Persons Served
Adult-Use Retail Business Cannabis Tax $4.08 Persons Served Medical Marijuana Taxes $0.14 Persons Served
I Fiscal Impact Category Annual Fiscal Impact Amount
Business Licenses $38,284
Franchise Fees $5,353
Charges for Services $5,219
Licenses and Permits $1,657
Fines and Forfeitures $2,765
Adult-Use Retail Business Cannabis Tax $869
Medical Marijuana Taxes $30
II Total Multiplier Revenues $54,177
NOTES:
[1] Based on the City of Santa Ana Proposed Budget, Fiscal Year 2023-2024. * All figures subject to rounding
Multiplier Revenue Assumptions
Fiscal Impact Calculation
City Council 28 – 203 8/6/2024
APPENDIX A-8
SANTA ANA, CALIFORNIA: SOUTH COAST TECHNOLOGY CENTER

INVESTMENT INCOME REVENUES ANALYSIS
I Investment Income Assumptions
Investment Period for Recurring Non-Interest General Fund Revenues 1 Month Local Agency Investment Fund (LAIF) Rate of Return [1] 2.06% Local Agency Investment Fund (LAIF) Percentage of Earnings Cost [1] 50.00% I Fiscal Impact Category Annual Fiscal Impact Amount
Total Property Tax Revenues (Appendix A-4) $379,335
Total Sales Tax Revenues (Appendix A-5) $2,066
Total Utility User's Tax Revenues (Appendix A-6) $24,439 Total Multiplier Revenues (Appendix A-7) $54,177
II Projected Recurring General Fund Revenues Available for Investment $460,017 III Plus: Investment Income (Less Earnings Cost) $395
IV Total Recurring General Fund Revenues $460,412
NOTES:
[1] Estimate. Subject to change.
* All figures subject to rounding
Assumptions
Fiscal Impact Calculation
City Council 28 – 204 8/6/2024
APPENDIX A-9
SANTA ANA, CALIFORNIA: SOUTH COAST TECHNOLOGY CENTER

MULTIPLIER EXPENDITURES ANALYSIS
I Expenditure Category Multiplier Factor [1] Expenditure Projection Basis Police Department $396.34 Persons Served
Fire Department $152.49 Persons Served
Public Works $135.19 Persons Served
Park, Recreation & Community Services $34.90 Persons Served Community Development $14.20 Persons Served
Library $16.96 Persons Served
Museum $3.84 Persons Served
I Fiscal Impact Category Annual Fiscal Impact Amount
Police Department $84,420
Fire Department $32,480
Public Works $28,795
Park, Recreation & Community Services $7,434
Community Development $3,025
Library $3,612
Museum $818
II Total Multiplier Expenditures $160,584
NOTES:
[1] Based on the City of Santa Ana Proposed Budget, Fiscal Year 2023-2024. * All figures subject to rounding
Multiplier Expenditure Assumptions
Fiscal Impact Calculation
City Council 28 – 205 8/6/2024
APPENDIX A-10
SANTA ANA, CALIFORNIA: SOUTH COAST TECHNOLOGY CENTER

GENERAL GOVERNMENT EXPENDITURES ANALYSIS
I General Government Overhead Expenditures
Total Recurring Fund Expenditures (excluding General Government Overhead) [1] $283,824,980 Recurring General Government Overhead Expenditures (as a % of Total Recurring Fund Expenditures) [2] 34.9% Marginal Increase in General Government Costs 75%
I Fiscal Impact Category Annual Fiscal Impact Amount
Total Multiplier Expenditures (Appendix A-9) $160,584
II Projected Recurring General Fund Expenditures $160,584 III Plus: General Government Costs $42,092
IV Total Recurring Expenditures $202,676
NOTES:
[1] Based on the City of Santa Ana Propsed Budget, Fiscal Year 2023-2024. [2] General Government Overhead Expenditures defined as costs for Legislative, Administration, Finance, Development Services, and other General Government.
* All figures subject to rounding
Assumptions
Fiscal Impact Calculation
City Council 28 – 206 8/6/2024
18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 92612
PHONE: (800) 969-4DTA
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
www.FinanceDTA.com
City Council 28 – 207 8/6/2024
Irvine | San Jose | San Francisco | Riverside
Dallas | Houston | Raleigh | Tampa

www.FinanceDTA.com
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds

ECONOMIC IMPACT STUDY
EPD SOLUTIONS, INC.

PROPOSED SOUTH COAST TECHNOLOGY

CENTER PROJECT

CITY OF SANTA ANA, CA
May 13, 2024
City Council 28 – 208 8/6/2024
www.FinanceDTA.com 18201 Von Karman Avenue, Suite 220
Irvine, CA 92612
EPD SOLUTIONS, INC.

ECONOMIC IMPACT STUDY

PROPOSED SOUTH COAST TECHNOLOGY CENTER

PROJECT

CITY OF SANTA ANA, CA
Prepared for:

EPD Solutions, Inc.
3333 Michelson Drive, Suite 500
Irvine, CA 92612
Attention: Meaghan Truman

City Council 28 – 209 8/6/2024
TABLE

OF CONTENTS

SECTION PAGE
I EXECUTIVE SUMMARY ................................................... 2 II INTRODUCTION .............................................................. 6 A Purpose of the Study .......................................................... 6 B Description of the Project ................................................. 7 C Approach to the Study ....................................................... 7 D Study Limitations .............................................................. 10

III RECURRING ANNUAL AND ONE-TIME ECONOMIC
IMPACTS ......................................................................... 11 A Description of the Annual Recurring Impacts of the
Project ................................................................................. 11 B Description of the One-Time Construction Impacts of
the Project .......................................................................... 16 IV PROJECT IMPACTS ON THE CITY’S
JOBS-HOUSING BALANCE ......................................... 20

APPENDICES

APPENDIX A ANNUAL RECURRING ECONOMIC

IMPACTS OF THE PROJECT

APPENDIX B ONE-TIME ECONOMIC IMPACTS OF

THE PROJECT

City Council 28 – 210 8/6/2024
2 SECTION I

EXECUTIVE SUMMARY
South Coast Technology Center Project May 13, 2024
Economic Impact Study
www.FinanceDTA.com

I EXECUTIVE SUMMARY
The objective of this Economic Impact Study (the “Study”) is to analyze the economic impacts of the proposed industrial use development known as South Coast Technology Center (the “Project”) within the City of Santa Ana (the “City”) in the County of Orange (“County”), California.

This Executive Summary provides a general overview of the Study’s conclusions regarding the economic impact of the Project on the City and the County. Overall, the Project is anticipated to add 687 permanent new jobs (425 on-site and 262 offsite) within the City. The Project would also provide 555 one-time jobs associated with its construction. Notably, the Project would deliver a substantial boost to the City’s economy, with the production of goods and services increasing by $256.1 million annually. This growth in jobs and economic output would have a positive impact on the City as it would expand its economic base, thereby providing a strong foundation for the City’s continued economic growth and fiscal health.

A Description of the Project
The Project location, as depicted in Figure 1 below, is generally comprised of two separate sites located on both sides of Susan Street in the City, with the one on the east side currently developed with three existing office buildings located at 3100, 3110, and 3120 West Lake Center Drive, and the one on the west side encompassing approximately

5.58 acres of vacant land. The entire Project site is located within the City Specific Development No. 58 (“SD-58”) zoning district, with the permissible land uses of the commercial/retail uses and professional and business offices.

Figure 1: Aerial Map for the Project Site
The Project Proponent is proposing to demolish the existing office buildings and appurtenant infrastructure on the Project site, and amend the permissible uses of SD-58 for the Project site to include limited light industrial uses (“LLIUs”), including but not limited to product assembly, the manufacture of biological, biomedical, and pharmaceutical products, the manufacture of scientific, engineering, and medical City Council 28 – 211 8/6/2024
3 SECTION I

EXECUTIVE SUMMARY
South Coast Technology Center Project May 13, 2024
Economic Impact Study
www.FinanceDTA.com
instruments, wholesale, warehousing, machine and other metal working shops, and research laboratories.

Figure 2: Proposed Project Site Plan
B Overview of Economic Impact Analysis
This Study identifies the general economic impacts of the Project on the County and City.

Economic impact studies operate under the basic assumption that any increase in spending resulting from a development project has direct, indirect, and induced economic effects. First, there is a direct impact caused by the additional output of goods or services on-site. Second, there are a ripple of indirect impacts on all the industries whose outputs are used by firms located within the Project and various firms’ supply chains. Third, there are induced impacts that arise when employment increases in the region and stimulates greater household spending.

In evaluating these economic impacts, the Study incorporates two stages of the development process: (i) construction and (ii) recurring operations. First, there is a onetime impact from the construction of the various types of land uses within the Project.

Then, after the construction and tenant improvement phases are complete, the Study determines the magnitude of the permanent annual recurring impact on the economy through the ongoing operations of the development that has occurred on the Project site.

City Council 28 – 212 8/6/2024
4 SECTION I

EXECUTIVE SUMMARY
South Coast Technology Center Project May 13, 2024
Economic Impact Study
www.FinanceDTA.com
DTA used the web application of the Impact Analysis for Planning (“IMPLAN”) economic modeling system for its analysis. IMPLAN is a nationally recognized input-output model that can be used to estimate the impacts of new development on the economy through the use of an economic multiplier analysis that is applied to individual counties (e.g., Orange County). The economic multipliers are based on a proprietary model that inputs a series of extensive databases, local economic factors, and demographic statistics. A more detailed discussion regarding the IMPLAN model, as well as the conclusions described in this Executive Summary and assumptions and methodology utilized to reach these conclusions, may be found in Sections II-IV of the Study.

C Recurring Economic Impacts of the Project
As shown in Table 1, the annual recurring economic impacts of the Project on the City will be substantial. First, the Project is anticipated to create 425 permanent Full-Time Equivalent (“FTE”) jobs on-site. In addition, the Project is expected to generate 262 permanent recurring indirect and induced full-time/part-time jobs off-site within the City, for a total of 687 jobs. As the City’s total current workforce consists of 141,545 employees, FTE and part-time employees holding these additional jobs will constitute a 0.49% increase in the size of the City’s current workforce. The total Labor Income associated with these new jobs will equal $63.1 million generated annually directly on-site, plus $22.4 million off-site Citywide, for a total increase in Labor Income of $85.5 million annually within the City. Finally, adding in $54.0 million in Other Value-Added revenues and $116.5 million in Intermediate Inputs yields a total recurring Citywide economic output of $256.1 million per year from the Project, which represents a considerable boost to the City’s economy.

Table 1: Project’s Total Recurring Annual Impacts on the City Recurring Annual Impacts Direct Indirect/Induced Total
Employment 425 262 687
Overall Economic Output $195,213,681 $60,921,643 $256,135,324 Labor Income $63,120,866 $22,420,892 $85,541,758
Other Value Added $38,616,322 $15,432,424 $54,048,746
Intermediate Inputs $93,476,494 $23,068,326 $116,544,820 Note: All numbers are subject to rounding.

D One-Time Economic Impacts of the Project
Similarly, as reflected in Table 2 below, the one-time economic impacts from the construction of the Project on the City will also be significant. First, the Project is anticipated to create 457 FTE construction jobs on-site. In addition, the Project is expected to generate 98 indirect and induced full-time/part-time jobs off-site within the City, for a total of 555 one-time jobs within the City. The total Labor Income associated with these added employees will equal $38.0 million directly on-site, plus $7.3 million off-site but within the City, for a total increase in Labor Income of $45.3 million Citywide City Council 28 – 213 8/6/2024
5 SECTION I

EXECUTIVE SUMMARY
South Coast Technology Center Project May 13, 2024
Economic Impact Study
www.FinanceDTA.com
on a one-time basis. Finally, adding in $6.9 million in Other Value-Added revenues and $32.4 million in Intermediate Inputs yields a total one-time Citywide economic output for the Project of $84.66 million, which represents a considerable boost for construction within the City. Notably, the one-time construction output represents the aggregate outputs generated during the overall Project construction period, which could span over more than one year.

Table 2: Project’s One-Time/Construction Impacts on the City One-Time/Construction Impacts Direct Indirect/Induced Total Employment 457 98 555
Overall Economic Output $63,500,000 $21,159,774 $84,659,774 Labor Income $38,002,669 $7,346,977 $45,349,646
Other Value Added $1,126,141 $5,802,880 $6,929,022
Intermediate Inputs $24,371,189 $8,009,916 $32,381,106
Note: All numbers are subject to rounding.

E Jobs-Housing Balance
The jobs-housing balance is an indicator of the relative equilibrium between employment and housing opportunities in a given area. A positive balance between jobs and housing has a beneficial impact on a municipality by decreasing costs associated with commuting and traffic congestion. It also reduces commute times, improves local social, cultural and family involvement, provides a more attractive work/life balance to residents, and generates savings to local public agencies in terms of the need to construct and maintain new road improvements and other facilities.

As reflected below in Table 3, the City’s current ratio of jobs within the City as compared with the number of housing units Citywide is 1.725, exceeding the Statewide average of 1.260. The addition of 687 new jobs through the construction of the Project would increase this ratio to 1.733. A more detailed explanation of this metric is included in Section IV of this Study.

Table 3: Pre-Project and Post-Project Jobs-Housing Balance Description Citywide Average Statewide
Pre-Project Post-Project Average
Number of Jobs 141,5451 142,232 18,537,400
Number of Housing Units 82,058 82,058 14,707,698
Existing2 82,058 82,058 14,707,698
New N/A 0 0
Jobs-Housing Balance 1.725 1.733 1.260
1 Spotlight by Environics Analytics, Employment Profiles by NAICS Code 2023. 2 Labor Market Information Division, State of California Employment Development Department.

City Council 28 – 214 8/6/2024
6 SECTION II

INTRODUCTION
South Coast Technology Center Project May 13, 2024
Economic Impact Study
www.FinanceDTA.com

II INTRODUCTION
A Purpose of the Study
The objective of this Economic Impact Study (the “Study”) is to analyze the economic impacts of the proposed industrial use development known as South Coast Technology Center (the “Project”) within the City of Santa Ana (the “City”) in the County of Orange (the “County”), California.

This Study identifies the general economic impacts of the Project on the County and City.

General economic impacts include additions to the County’s and City’s employment (number of average annual full-time and part-time jobs), economic output (e.g., gross receipts), and earnings (the sum of wages, salaries and benefits, and other labor income).

Economic impact studies also operate under the basic assumption that any increase in impacts has direct, indirect, and induced effects as illustrated in Figure 3 below. First, there is a direct effect caused by the additional output of goods or services on-site.

Second, there is a ripple of indirect effects on all the industries whose outputs are used by firms located within the Project and various firms’ supply chains. Third, there are induced effects that arise when employment increases in the region and stimulates greater household spending.

Figure 3: Direct, Indirect, and Induced Impacts
City Council 28 – 215 8/6/2024
7 SECTION II

INTRODUCTION
South Coast Technology Center Project May 13, 2024
Economic Impact Study
www.FinanceDTA.com
The Study also distinguishes between one-time economic impacts and permanent economic impacts. One-time impacts include benefits to the community that occur on a non-recurring basis as a result of construction and development activity, while permanent recurring impacts refer to benefits that occur on a continuous basis year after year once the Project has been build-out. Generally, first, there is a one-time impact from the construction of the facility. Then, after the construction phases are complete, firms have a recurring impact on the economy through their ongoing operations. Additionally, for the purposes of the Study, all economic impacts are stated in constant 2024 (uninflated) dollars based on the assumption that the relative impacts of inflation in future years may be difficult to gauge.

B Description of the Project
The Project location delineated in Figure 1, which may be found in the Executive Summary of this Study, is generally comprised of two separate sites located on both sides of Susan Street in the City, with the one on the east side currently developed with three existing office buildings located at 3100, 3110, and 3120 West Lake Center Drive, and the one on the west side encompassing approximately 5.58 acres of vacant land. The entire Project site is located within the City Specific Development No. 58 (“SD-58”) zoning district, with the permissible land uses of commercial/retail uses and professional and business offices.

The Project Proponent is proposing to demolish the existing office buildings and appurtenant infrastructure on the Project site, and amend the permissible uses of SD-58 for the Project site to include limited light industrial uses (“LLIUs”), including but not limited to product assembly, the manufacture of biological, biomedical, and pharmaceutical products, the manufacture of scientific, engineering, and medical instruments, wholesale, warehousing, machine and other metal working shops, and research laboratories. A summary of the proposed land uses and their respective associated BSF in the Project is listed below in Table 4 and depicted in Figure 2 in the Executive Summary of this Study.

Table 4: Proposed Land Uses for the Project
Land Uses Building Square Feet
Industrial Building 1 112,230
Industrial Building 2 121,645
Industrial Building 3 79,369
Grand Total 313,244
For purposes of this Study, Industrial Buildings 1 and 2 are assumed to be occupied by tenants in the Surgical and Medical Instrument Manufacturing sector, while Building 3 is assumed to house a tenant in the Electromedical and Electrotherapeutic Apparatus Manufacturing sector. Both manufacturing sectors have prominent employment bases in the County and are permissible LLIUs. The City and Project proponent have deemed City Council 28 – 216 8/6/2024
8 SECTION II

INTRODUCTION
South Coast Technology Center Project May 13, 2024
Economic Impact Study
www.FinanceDTA.com
those uses to be feasible on the Project site. However, since the Project proponent is constructing all three buildings on a speculative basis, the building uses presented in this Study are preliminary and cannot be guaranteed by the Project proponent or the City.

C Approach to the Study
The Study distinguishes between one-time impacts and permanent impacts. In evaluating these impacts, the Study quantifies both direct and indirect/induced economic impacts on the County and City. Direct economic impacts reflect the initial or first-round increases in jobs, earnings, and output, all of which occur directly on-site.

Indirect/induced economic impacts are the secondary and other additional rounds of economic activity that occur as a result of the direct impacts and generally take place elsewhere within the County and City. The indirect impacts represent the economic activity, specifically the buying and selling of goods and services, of suppliers to the Project land use types analyzed. In this Study, suppliers to the Project consist primarily of wholesalers, maintenance and repair professionals, utilities’ providers, real estate services, and employment and business support services.

One-time impacts include benefits to the County and City that occur on a non-recurring basis as a result of construction and development activity, while permanent impacts refer to benefits that occur on a continuous basis year after year. The suppliers representing the indirect one-time impacts are mainly heavy industrial and construction suppliers for the actual development of buildings and facilities. The induced impacts represent the economic activity that results from household spending by employees of all companies directly and indirectly affected by the construction and operation of the land uses analyzed in this Study.

For the purposes of determining impacts, the Study employs two standards that are frequently utilized in economic impact studies, as detailed below.

C.1 North American Industry Classifications
Indirect and induced impacts can occur throughout all industries of the economy and have been categorized using the North American Industry Classification System (“NAICS”). Adopted by the Office of Management and Budget (“OMB”) in 1997 to replace the Standard Industrial Classification (“SIC”) System, NAICS is a widely used system that classifies business establishments for the collection, analysis, and publication of statistical data in Canada, Mexico, and the United States. NAICS industries are identified using a 6-digit coding system to classify all economic activity into 20 broad sectors, five of which are mainly goods-producing sectors and 15 of which are services-producing sectors. This 6-digit hierarchical structure allows for the identification of nearly 1,170 industries.

IMPLAN employs a sectoring scheme representing rollups of NAICS descriptions, with each sector having its own spending pattern derived from the U.S. Bureau of City Council 28 – 217 8/6/2024
9 SECTION II

INTRODUCTION
South Coast Technology Center Project May 13, 2024
Economic Impact Study
www.FinanceDTA.com
Economic Analysis’ expenditures patterns. The Electromedical and Electrotherapeutic Apparatus Manufacturing Sector and Surgical and Medical Instrument Manufacturing Sector are the focal IMPLAN sectors analyzed within this Study to determine the indirect and induced economic impacts generated by the Project.

C.2 IMPLAN Multipliers
Although most economists agree that indirect and induced effects, or “multiplier” effects, exist, most economists also concur that such effects are difficult to measure. Patterns of spending and employment among suppliers and employee households often vary over time and from one region to another. Nevertheless, there are certain input-output models that can be used to estimate indirect and induced effects.

In quantifying the indirect and induced economic impacts for the Study, DTA utilized the IMPLAN input-output modeling system, a type of quantitative economic model that provides an approximate measure of the “multiplier effect” of a firm’s spending on payroll and the purchasing of goods and services. DTA used the web application of the IMPLAN economic modeling system with economic data from 2022 for the County (“IMPLAN Study Model”).

Like similar econometric models, IMPLAN helps calculate the flow of payments for goods and services across different industry sectors and between households and industries. Unlike similar econometric models, e.g., the Regional Input-Output Modeling System (“RIMS II”), IMPLAN is the industry standard. RIMS II and IMPLAN both include induced effects, but RIMS II differs from IMPLAN in two ways.

Specifically, RIMS II uses a single household type for induced personal consumption and employs the traditional single row/column Type II formulation, whereas IMPLAN uses nine (9) household types and applies a more robust mapping of factor income to household consumption using several submatrices.

RIMS II also uses location quotients to regionalize the national technical coefficients, a method that underestimates inter-regional trade and overestimates regional multipliers when cross-hauling is present.

The IMPLAN model can be envisioned simply as a large spreadsheet with hundreds of industries (plus the household sector) arrayed across the top as producers and the same industries and households listed down the side as consumers. Each million dollars (output) in spending by any one consumer (i.e., the Project) is allocated across the producing industries from which it buys goods and services. These producing industries, in turn, spend money buying goods and services from their own distinct sets of suppliers. Thus, the IMPLAN multiplier model allows one to gauge the effect on each dollar expended by an industry as it diffuses through a regional economy. Furthermore, it allows one to translate the overall regional impact of spending into jobs and employee City Council 28 – 218 8/6/2024
10 SECTION II

INTRODUCTION
South Coast Technology Center Project May 13, 2024
Economic Impact Study
www.FinanceDTA.com
compensation. Please refer to Figure 4 for a graphical representation of the multiplier effect. The multiplier factors available to determine indirect/induced impacts are intended to reflect impacts for entire areas within the County.

Figure 4: Multiplier Effect of Project Expenditures
Source: Northern Economics, Inc. 2011.

D Study Limitations
The economic models in the Study contain an analysis of revenues and impacts to the County and City resulting from the Project. These models are based on information provided to DTA by the Project proponent, certain assumptions taken from DTA’s proprietary databases as compiled from previous studies prepared by the firm, Spotlight by Environics Analytics, and Internet research performed by DTA regarding various industries. The sources of information and basis of the estimates calculated in the Study are stated herein. While DTA is confident that the sources of information are reliable, DTA does not express an opinion or any other form of assurance on the accuracy of such information. The analysis of economic impacts contained in this report is not considered to be a “financial forecast” or “financial projection” as technically defined by the American Institute of Certified Public Accountants. The word “projection” used within this report relates to broad expectations of future events or market conditions. Since the analyses contained herein are based on estimates and assumptions that are inherently subject to uncertainty and variation depending on evolving events, DTA cannot represent that such estimates will be achieved. Some assumptions inevitably will not materialize, and unanticipated events and circumstances may occur. Therefore, the actual results achieved may vary from the projections stated throughout the Study.

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III RECURRING ANNUAL AND ONE-TIME ECONOMIC IMPACTS
As noted previously, the Study identifies the general impacts on the County and City economy that would result from the construction of the Project and quantifies these impacts wherever possible. General economic impacts include additions to the County’s and City’s employment (number of average annual full-time and part-time jobs), economic output (e.g., gross receipts), and earnings (the sum of wages, salaries and benefits, and other labor income). The Study also distinguishes between one-time economic impacts and permanent economic impacts. One-time impacts include benefits to the community that occur on a non-recurring basis as a result of construction and development activity, while permanent recurring impacts refer to benefits that occur on a continuous basis year after year.

A Description of the Annual Recurring Impacts of the Project A.1 Employment
“Employment” follows the same definition as the U.S. Bureau of Economic Analysis’ regional economic accounts and U.S. Bureau of Labor Statistics’ Census of Employment and Wages data, which is the full-time/part-time annual average. Thus, one (1) job lasting 12 months is equivalent to two (2) jobs lasting 6 months each or four (4) jobs lasting 3 months each. In terms of a typical IMPLAN analysis, a job that lasts 6 months would be considered ½ (0.50) of a job, while one that lasts 3 months would be considered ¼ (0.25) of a job. Notably, IMPLAN’s analysis normally includes both FTE jobs and part-time jobs, which overstates the number of FTE jobs generated by a development project. In order to compensate for that factor, DTA applies a discounting factor provided by IMPLAN that varies by industry and can be used to reduce the number of direct jobs generated by IMPLAN in our Study so that it represents the equivalent of the number of FTE direct jobs.

The indirect and induced full-time/part-time job estimates for the Project were derived utilizing the IMPLAN Study Model. While the specific location of the additional indirect jobs created within the County cannot be definitively determined, experience and modeling indicate that a large percentage of these jobs will be support service jobs. These jobs are also likely to be located close to the Project and, therefore, within the County itself, with an estimated 50% of those jobs to be located within the City. Similarly, the Project’s jobs will lead to more consumer spending by employees in existing retail establishments within the County and City, as well as new retail development that will be attracted to the County and City as a result of this spending. Job creation also results in increased tax revenues to the County and City through increased property taxes and sales taxes related to this new development.

However, because of potential differences in the timing of the build-out of the Project, the number of employees summarized above will likely not be realized at City Council 28 – 220 8/6/2024
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the same time. Notably, it is possible that the build-out of the Project will occur over more than one year and the demand for some elements of the Project may fluctuate over time.

DTA estimated the number of direct employees at the Project’s build-out based upon the 737 Square Feet per Employee (“SF/E”) factor provided by the Project Proponent.

Based on several data sources that provided this type of data for similar land uses, DTA deemed this metric to be appropriate for the Project.

Simply put, the Project will contribute to the creation of new jobs in the County and City. As reflected in Figure 5 and Table 5, the development of the Project is forecasted to generate approximately 425 estimated new recurring permanent on-site FTE jobs within the County and City annually. In addition to these on-site employment opportunities, DTA estimates that the Project will generate new off-site jobs in all industries of the County’s and City’s economy that constitute the indirect/induced employment impacts of the Project. A total of 240 permanent indirect jobs and 284 induced jobs are expected to be created in the County, with 120 of those indirect jobs and 142 of those induced jobs occurring within the City.

As described previously, indirect jobs are those that are located off-site but are necessary to support the Project by providing goods and services to on-site businesses. Induced jobs are those that result from the expenditures made by the employees working directly or indirectly on-site within the Project.

Table 5: Project’s Recurring Annual Employment Impact Conclusions Land Use BSF SF/E
Recurring Annual Employment Impacts
Direct
Indirect3 Induced3 Total
County City4 County City4 County City4
Industrial
Building One 112,230 737 152 72 36 89 45 313 233
Industrial
Building Two 121,645 737 165 78 39 97 48 340 253
Industrial
Building Three 79,369 737 108 89 45 98 49 295 202
Grand Total 313,244 N/A 425 240 120 284 142 949 687
Note: All numbers are subject to rounding.
3 The IMPLAN Study Model outputs are based on the number of direct employees. 4 Assumes 50% of the indirect/induced jobs generated in the County will be created within the City.

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Figure 5: Annual Recurring Jobs Generated by the Project 0 100
200
300
400
500
600
700
800
900
1,000
County City
425 425
240
120
284
142
Direct Indirect Induced
The indirect and induced job estimates for the Project were derived utilizing the IMPLAN Study Model. While the specific location of the additional indirect jobs created within the County cannot be definitively determined, experience and modeling indicate that a large percentage of these jobs will be support service jobs.

These jobs are also likely to be located close to the Project and therefore, within the City itself. Similarly, the Project’s jobs will lead to more consumer spending by employees in existing retail establishments within the City and County, as well as new retail development that will be attracted to the City and County as a result of this spending. Job creation also results in increased tax revenues to the City and County through increased property taxes and sales taxes related to this new development.

However, as a result of potential differences in the timing of the build-out of the Project, the number of employees summarized above will likely not be realized at precisely the same time. Notably, it is estimated that the build-out of the Project will occur over several years, as the demand for some elements of the Project may fluctuate over time.

A.2 Total Economic Output
“Total Economic Output” represents the total value of all goods and/or services produced throughout a designated economy during a specified period of time, including Labor Income, Other Value Added, and the cost of Intermediate Inputs.

Each of these components are defined below.
“Labor Income” includes employee compensation (wages and benefits) and payments received by self-employed individuals and unincorporated City Council 28 – 222 8/6/2024
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business owners. The Quarterly Census of Employment and Wages (“CEW”) published by the Bureau of Labor Statistics is the primary source of employment and income data for IMPLAN.
“Other Value Added” encompasses other property income, such as the consumption of capital investment, profits, royalties, dividends, interest impacts, and taxes on production and imports. The primary sources of Other Value Added are taxes on production and imports net of subsidy and Gross Operating Surplus (“GOS”) data at the 3-digit NAICS level released by the Bureau of Economic Analysis.
“Intermediate Inputs” include purchases of non-durable goods and services used for the production of other goods and services within a project, rather than for final consumption. Intermediate Inputs equal the Total Economic Output minus the sum of Labor Income and Other Value Added.

Total Economic Output within the City and County will increase substantially as a result of the development of the Project and can be estimated based on the different types of development projected to occur. As previously stated, this Study analyzes direct, indirect, and induced impacts. With regard to direct impacts, the economic output reflects the initial or first-round increases in the total value of all goods and/or services produced (total spending/gross receipts, plus the Labor Income listed in Table 6 and other incomes/taxes), all of which occur directly on the Project site.

Indirect/induced economic impacts are the secondary and other additional rounds of economic activity that occur due to the direct output impacts and can take place outside of the boundaries of the Project site. The indirect impacts represent economic activity, specifically the buying and selling of goods and services, of suppliers and/or supporting businesses. The induced impacts represent economic activity that results from household spending by employees of all companies directly and indirectly affected by the Project. Please refer to Figure 3 for a graphical representation of the indirect and induced effects.

The generation of 949 new jobs in the County will increase the payrolls collected by County and City residents who are holding these jobs, which were estimated utilizing the IMPLAN Study Model. As summarized in Table 6 and listed in detail in Appendix A, the jobs to be generated by the Project will provide Labor Income ranging from an average of $133,608 per year for Surgical and Medical Instrument Manufacturing Sector jobs in Buildings 1 and 2 to an average of $192,289 per year for Electromedical and Electrotherapeutic Apparatus Manufacturing Sector jobs in Building 3. This would result in an average income of $148,520 per direct FTE employee on-site and an average Labor Income of $124,541 per job if we also include both indirect and induced jobs. Total aggregate Labor Income paid to all direct, indirect, and induced employees for the Project will equal $108.0 million within the County, with $85.5 million of the income generated within the City. The total direct City Council 28 – 223 8/6/2024
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Labor Income generated by the Project on-site is anticipated to be $63.1 million.

Table 6: Annual Recurring Labor Income Generated by the Project Municipality Direct Indirect Induced Total
County $63,120,866 $25,448,599 $19,393,185 $107,962,650 City5 $63,120,866 $12,724,299 $9,696,592 $85,541,758
Note: All numbers are subject to rounding.

The IMPLAN Study Model also includes algorithms that forecast the Other Value Added and Intermediate Inputs to be generated by the Project. As reflected in Tables 7 and 8, DTA has estimated that the Project’s direct and indirect/induced economic outputs total $317.1 million for the County and $256.1 million for the City. As summarized in Table 8 and Figure 6, and listed in detail in Appendix A, the total direct economic output generated by the Project on-site is anticipated to be $195.2 million.

Table 7: Project’s Total Annual Recurring Impacts (County) Recurring Annual Impacts Direct Indirect/Induced Total
Overall Economic Output $195,213,681 $121,843,286 $317,056,967 Labor Income $63,120,866 $44,841,784 $107,962,650
Other Value Added $38,616,322 $30,864,849 $69,481,171
Intermediate Inputs $93,476,494 $46,136,653 $139,613,146 Note: All numbers are subject to rounding.

Table 8: Project’s Total Annual Recurring Impacts (City) Recurring Annual Impacts Direct Indirect/Induced Total
Overall Economic Output $195,213,681 $60,921,643 $256,135,324 Labor Income $63,120,866 $22,420,892 $85,541,758
Other Value Added $38,616,322 $15,432,424 $54,048,746
Intermediate Inputs $93,476,494 $23,068,326 $116,544,820 Note: All numbers are subject to rounding.
5 Assumes 50% of the indirect/induced Labor Income generated in the County will be created within the City.

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Figure 6: Annual Recurring Economic Output Generated by the Project $0
$50
$100
$150
$200
$250
$300
$350
County City
$195.2 $195.2
$66.1
$33.1
$55.7
$27.9
Millions
Direct Indirect Induced
B Description of the One-Time Construction Impacts of the Project As was the case for annual recurring economic impacts, one-time impacts generate one-time non-recurring increases in the County’s and City’s employment rates (number of full-time and part-time jobs), economic output (e.g., gross receipts), and earnings (the sum of wages, salaries and benefits, and other labor income). The difference is that one-time impacts include economic benefits to the community that occur on a non-recurring basis as a result of construction and development activity.

B.1 One-Time Employment
According to the IMPLAN Study Model, development of the Project is also projected to create 457 estimated one-time FTE construction-related jobs on-site and 196 one-time indirect and induced full-time/part-time jobs off-site in the County, with 98 of those jobs within the City, for a total of 653 and 555 one-time jobs within the County and City, respectively. Table 9 and Figure 7 below, as well as Appendix B, summarize the projected increases in one-time employment that are generated from the construction of the Project land uses.

Table 9: Project’s One-Time Construction and Development Employment Municipality Direct Indirect Induced Total
County 457 53 143 653
City6 457 26 72 555
Note: All numbers are subject to rounding.
6 Assumes 50% of the indirect/induced jobs generated in the County will be created within the City.

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Figure 7: Project’s One-Time Construction and Development Employment 0 100
200
300
400
500
600
700
County City
457 457
53 26
143
72 Direct Indirect Induced
B.2 One-Time Labor Income
One-time construction and development costs will also have multiplier effects on the economy, thereby generating one-time increases in Labor Income from the construction of the site infrastructure improvements and non-residential buildings.

The average Labor Income is $83,157 per direct FTE job on-site, with an average Labor Income of $81,699 per job including both indirect and induced jobs. Table 10 and Figure 8 below, as well as Appendix B, summarize the projected increases in Labor Income generated from the construction of the Project land uses.

Table 10: Project’s One-Time Construction and Development Labor Income Municipality Direct Indirect Induced Total
County $38,002,669 $4,912,090 $9,781,864 $52,696,624
City7 $38,002,669 $2,456,045 $4,890,932 $45,349,646
Note: All numbers are subject to rounding.
7 Assumes 50% of the indirect/induced Labor Income generated in the County will be created within the City.

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Figure 8: Project’s One-Time Construction and Development Labor Income $0
$10
$20
$30
$40
$50
$60
County City
$38.0 $38.0
$4.9 $2.5
$9.8
$4.9
Millions
Direct Indirect Induced
B.3 One-Time Total Economic Output
According to the IMPLAN Study Model, the development of the Project is also projected to generate one-time increases of $105.82 million in Total Economic Output from the construction and development of the site infrastructure improvements and non-residential buildings within the County, with increases of $84.66 million in Total Economic Output within the City. Table 11 and Figure 9 below, as well as Appendix B, summarize the projected increases in total one-time economic output generated from the construction and development of the Project land uses.

Table 11: Project’s One-Time Construction and Development Total Economic Output Municipality Direct Indirect Induced Total
County $63,500,000 $14,235,907 $28,083,641 $105,819,548 City8 $63,500,000 $7,117,954 $14,041,820 $84,659,774
Note: All numbers are subject to rounding.
8 Assumes 50% of the indirect/induced economic outputs generated in the County will be created within the City.

City Council 28 – 227 8/6/2024
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Figure 9: Project’s One-Time Construction and Development Total Economic Output $0
$20
$40
$60
$80
$100
$120
County City
$63.5 $63.5
$14.2 $7.1
$28.1
$14.0
Millions
Direct Indirect Induced
City Council 28 – 228 8/6/2024
20 SECTION V
PROJECT IMPACTS ON THE CITY’S

JOBS-HOUSING BALANCE
South Coast Technology Center Project May 13, 2024
Economic Impact Study
www.FinanceDTA.com
IV PROJECT IMPACTS ON THE CITY’S JOBS-HOUSING BALANCE
As stated previously, the Project is estimated to create approximately 425 new on-site permanent recurring FTE jobs and DTA approximates that an additional 262 new off-site indirect and induced permanent recurring full-time/part-time jobs will be created Citywide.

This results in a jobs-housing balance calculation wherein the numerator (i.e., number of jobs) increases, while the denominator (i.e., number of housing units located in the City) remains the same.

The jobs-housing balance is an indicator of the balance between employment and housing opportunities in a given area. To a large degree, the jobs available in a community should adequately represent the skills of the community’s labor force. Housing prices/locations should also be suited to the budgets of the workers within that community. However, defining what constitutes a “balance” is not an easy task due to variations in local and regional economies and housing patterns, e.g., what indicates “balance” in the City might not be similarly appropriate in other parts of the State.

A positive balance between jobs and housing has a beneficial impact on the City by decreasing costs associated with commuting and traffic congestion. A balanced jobs-housing ratio also provides, inter alia, reduced commute times, improved social and cultural involvement, a more attractive work/life balance to residents, and savings to local public agencies in terms of the need to construct and maintain new road improvements and other facilities. For example, any decrease in transportation facility costs experienced by local public agencies will enable these agencies to invest their tax proceeds in other facilities that can improve the quality of life within the City, such as libraries, recreational projects, and other community amenities.

All these factors enhance the City’s economic well-being and that of the residents of the City, a portion of whom will find work within the Project. Notably, the change in the City’s jobs-housing balance will be mitigated by an influx of residents to the City who currently live elsewhere but might move to the City in order to live closer to the new jobs generated directly or indirectly by the Project. However, this in turn would increase the City’s labor force and provide new consumers who will support existing and new businesses in the City that will provide them with the necessary goods and services. The positive impact of an increase in the City’s jobs-housing balance can’t be overstated.

City Council 28 – 229 8/6/2024
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PROJECT IMPACTS ON THE CITY’S

JOBS-HOUSING BALANCE
South Coast Technology Center Project May 13, 2024
Economic Impact Study
www.FinanceDTA.com
At build-out, the Project will have a positive effect on the City’s jobs-housing balance. Table 12 and Figure 10 below summarize the pre-Project and post-Project jobs-housing balance, as well as California Statewide average development figures.

Table 12: Pre-Project and Post-Project Jobs-Housing Balance Description Citywide Average Statewide
Pre-Project Post-Project Average
Number of Jobs 141,5459 142,232 18,537,400
Number of Housing Units 82,058 82,058 14,707,698
Existing10 82,058 82,058 14,707,698
New N/A 0 0
Jobs-Housing Balance 1.725 1.733 1.260
Figure 10: Pre-Project and Post-Project Jobs-Housing Balance:

0.000

0.500

1.000

1.500

2.000
Pre-Project
Citywide
Post-Project
Citywide
Statewide

1.725 1.733

1.260
As reflected above in Table 12 and Figure 10, the City’s current ratio of jobs within the City as compared with the number of housing units Citywide is 1.725, exceeding the Statewide average of 1.260. Clearly, the City is an employment-rich community with a large number of local jobs that are likely to provide employment to both City residents and persons residing outside of the City. The addition of 687 new jobs through the construction of the Project would increase this ratio to 1.733.

As the City’s total current workforce consists of 141,545 employees, FTE and part-time employees holding these additional jobs will constitute a 0.49% increase in the size of the City’s current workforce.
9 Spotlight by Environics Analytics, Employment Profiles by NAICS Code 2023. 10 Labor Market Information Division, State of California Employment Development Department.

City Council 28 – 230 8/6/2024

APPENDIX A
EPD Solutions, Inc.

South Coast Technology Center Project
Economic Impact Study

ANNUAL RECURRING

ECONOMIC IMPACTS

OF THE PROJECT

City Council 28 – 231 8/6/2024
Appendix A
South Coast Technology Center Project
City of Santa Ana
Recurring Economic Impact (2024$)
Per
Employee Aggregate
Industrial Building One
County 313.37 $107,862 $33,800,653 $18,983,991 $41,219,898 $94,004,542 Direct 152.00 $133,608 $20,308,390 $9,333,289 $27,182,408 $56,824,086 Indirect 72.07 $102,622 $7,395,932 $4,537,821 $7,735,873 $19,669,627 Induced 89.30 $68,268 $6,096,330 $5,112,882 $6,301,617 $17,510,829 City 232.69 $116,271 $27,054,521 $14,158,640 $34,201,153 $75,414,314 Direct 152.00 $133,608 $20,308,390 $9,333,289 $27,182,408 $56,824,086 Indirect1 36.04 $102,622 $3,697,966 $2,268,911 $3,867,937 $9,834,814 Induced1 44.65 $68,268 $3,048,165 $2,556,441 $3,150,808 $8,755,414 Industrial Building Two
County 340.17 $107,862 $36,691,498 $20,607,622 $44,745,284 $102,044,404 Direct 165.00 $133,608 $22,045,292 $10,131,530 $29,507,219 $61,684,041 Indirect 78.23 $102,627 $8,028,479 $4,925,925 $8,397,494 $21,351,898 Induced 96.94 $68,266 $6,617,727 $5,550,167 $6,840,571 $19,008,465 City 252.59 $116,271 $29,368,395 $15,369,576 $37,126,252 $81,864,223 Direct 165.00 $133,608 $22,045,292 $10,131,530 $29,507,219 $61,684,041 Indirect1 39.12 $102,627 $4,014,240 $2,462,962 $4,198,747 $10,675,949 Induced1 48.47 $68,266 $3,308,864 $2,775,084 $3,420,285 $9,504,233 County 295.17 $126,945 $37,470,499 $29,889,557 $53,647,964 $121,008,020 Direct 108.00 $192,289 $20,767,184 $19,151,503 $36,786,866 $76,705,554 Indirect 89.34 $112,203 $10,024,188 $5,135,268 $9,956,867 $25,116,322 Induced 97.83 $68,273 $6,679,127 $5,602,786 $6,904,231 $19,186,145 City 201.59 $144,449 $29,118,842 $24,520,530 $45,217,415 $98,856,787 Direct 108.00 $192,289 $20,767,184 $19,151,503 $36,786,866 $76,705,554 Indirect1 44.67 $112,203 $5,012,094 $2,567,634 $4,978,433 $12,558,161 Induced1 48.92 $68,273 $3,339,564 $2,801,393 $3,452,116 $9,593,072 Grand Total - County 948.71 $113,799 $107,962,650 $69,481,171 $139,613,146 $317,056,967 Grand Total - City 686.86 $124,541 $85,541,758 $54,048,746 $116,544,820 $256,135,324 1 Assumes 50% of County's indirect/induced impacts will be created within the City.

Industrial Building Three
Total Output
Labor Income Land Use/
Impact Employment Other Value Added
Intermediate
Expenditures

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City Council 28 – 232 8/6/2024

APPENDIX B
EPD Solutions, Inc.

South Coast Technology Center Project
Economic Impact Study

ONE-TIME ECONOMIC

IMPACTS OF THE

PROJECT

City Council 28 – 233 8/6/2024
Appendix B
South Coast Technology Center Project
City of Santa Ana
One-time Economic Impact (2024$)
Per
Employee Aggregate
Vertical Construction
County 653.17 $80,678 $52,696,624 $12,731,902 $40,391,022 $105,819,548 Direct 457.00 $83,157 $38,002,669 $1,126,141 $24,371,189 $63,500,000 Indirect 52.82 $92,997 $4,912,090 $3,413,289 $5,910,528 $14,235,907 Induced 143.35 $68,238 $9,781,864 $8,192,471 $10,109,305 $28,083,641 City 555.09 $81,699 $45,349,646 $6,929,022 $32,381,106 $84,659,774 Direct 457.00 $83,157 $38,002,669 $1,126,141 $24,371,189 $63,500,000 Indirect1 26.41 $92,997 $2,456,045 $1,706,645 $2,955,264 $7,117,954 Induced1

71.68 $68,238 $4,890,932 $4,096,236 $5,054,652 $14,041,820 Grand Total - County 653.17 $80,678 $52,696,624 $12,731,902 $40,391,022 $105,819,548 Grand Total - City 555.09 $81,699 $45,349,646 $6,929,022 $32,381,106 $84,659,774 1 Assumes 50% of County's indirect/induced impacts will be created within the City.

Impact Employment Total Output
Labor Income Other Value
Added
Intermediate
Expenditures

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18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 92612
PHONE: (800) 969-4DTA
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
www.FinanceDTA.com
City Council 28 – 235 8/6/2024
Exhibit 9 - Community Meeting Documents
The project was subject to the City’s Sunshine Ordinance (Ordinance No. NS-3040) requiring two community meetings to facilitate early public participation. The first community meeting was held on September 27, 2023, and the second meeting was held on January 10, 2024.

All materials from the two required community meetings were published, and can be found on the project’s webpage on the City’s website:
https://www.santa-ana.org/south-coast-technology-center-3100-3110-3120-west-lake-centerdrive/ City Council 28 – 236 8/6/2024
Planning Commission
Regular Meeting Agenda
July 8, 2024
5:30 P.M.

Council Chamber
22 Civic Center Plaza
Santa Ana, CA
Members of the public may attend this meeting inperson or join via Zoom.

Join from your computer: https://zoom.us/j/81145086688 Join from your mobile phone via Zoom App. Meeting ID: 81145086688 Dial in from a mobile phone or landline. (669) 900 6833; Meeting ID: 81145086688 *For viewing only: www.youtube.com/cityofsantaanavideos. Please note: There is up to a 30 second delay when viewing the meeting via YouTube. If you plan to provide a public comment during the meeting, please join the meeting via Zoom.

For detailed participation and commenting options, please review the instructions provided at the end of this agenda.

To download or view each item, select either Download PDF or View Item Details to the right of the agenda title.

BAO PHAM
Chair, Ward 1 Representative
JENNIFER OLIVA
ViceChair
Ward 6 Representative
CHRISTOPHER LEO
Citywide Representative
MANUEL J. ESCAMILLA
Ward 2 Representative
CARL BENNINGER
Ward 4 Representative
ISURI S. RAMOS
Ward 3 Representative
ALAN WOO
Ward 5 Representative
Minh Thai
Executive Director
Jose Montoya
Legal Counsel
Ali Pezeshkpour, AICP
Planning Manager
Nuvia Ocampo
Recording Secretary
In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this Meeting, contact Michael Ortiz, City ADA Program Coordinator, at (714) 6475624. Notification 48 hours prior to the Meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. The City Council agenda and supporting documentation can be found on the City’s website – www.santaana.org/citymeetings.

CALL TO ORDER
Commissioners: Bao Pham, Chair
Manuel Escamilla
Christopher Leo
Carl Benninger
Jennifer Oliva
Isuri S. Ramos
Alan Woo
Executive Director Minh Thai
Chief Asst. City Attorney Jose Montoya
Planning Manager Ali Pezeshkpour, AICP
Recording Secretary Nuvia Ocampo
ROLL CALL
PLEDGE OF ALLEGIANCE
PUBLIC COMMENTS
CONSENT CALENDAR ITEMS
a. Minutes
Recommended Action: Approve Minutes from June 24, 2024. b. Excused Absences
Recommended Action: Excuse absent commissioners.
*End of Consent Calendar*
BUSINESS CALENDAR
Public Hearing: The Planning Commission decision on Conditional Use Permits, Variances, Tentative Tract and Parcel Maps, Minor Exceptions, Site Plan Review, and Public Convenience or Necessity Determinations are final unless appealed within 10 days of the decision by any interested party or group (refer to the Basic Meeting Information page for more information). The Planning Commission recommendation on Zoning and General Plan amendments, Development Agreements, Specific Developments, and Specific Plans will be forwarded to the City Council for final determination. Legal notice was published in the OC Reporter on June 28, 2024, and tiildiddt
City Council 28 – 239 8/6/2024
Public Hearing: The Planning Commission decision on Conditional Use Permits, Variances, Tentative Tract and Parcel Maps, Minor Exceptions, Site Plan Review, and Public Convenience or Necessity Determinations are final unless appealed within 10 days of the decision by any interested party or group (refer to the Basic Meeting Information page for more information). The Planning Commission recommendation on Zoning and General Plan amendments, Development Agreements, Specific Developments, and Specific Plans will be forwarded to the City Council for final determination. Legal notice was published in the OC Reporter on June 28, 2024, and notices were mailed on said date.

1. MODIFICATION OF CONDITIONAL USE PERMIT (CUP) NO. 200522 FOR THE PROPERTY LOCATED AT 1441 WEST SEVENTEENTH STREET
LOCATED WITHIN THE GENERAL COMMERCIAL (C2) ZONING DISTRICT.

Project Applicant: Beth Aboulafia with Hinman and Carmichael, LLP. and representing Target Corporation (Applicant/Property Owner) Proposed Project: Applicant is requesting approval of modification of existing Conditional Use Permit No. 200522 to allow the sale of distilled spirits, in addition to beer and wine, for offsite consumption at an existing Target retail store.

Environmental Impact: Pursuant to the California Environmental Quality Act (CEQA), the project is categorically exempt from further review pursuant to Section 15301 (class 1 – Existing Facilities) of the CEQA guidelines. A new Notice of Exemption (NOE) will be filed for this project.

Recommended Actions:

1. Adopt a resolution approving Conditional Use Permit No. 200522 MOD1 as conditioned, and

2. Authorize staff to issue a Letter of Public Convenience or Necessity to the State Department of Alcoholic Beverage Control.

2. MODIFICATION OF CONDITIONAL USE PERMIT (CUP) NO. 201214 FOR THE PROPERTY LOCATED AT 3300 SOUTH BRISTOL STREET LOCATED WITHIN THE PLANNED SHOPPING CENTER (C4) ZONING DISTRICT.

Project Applicant: Beth Aboulafia with Hinman and Carmichael, LLP. and representing Target Corporation (Applicant/Property Owner) Proposed Project: Applicant is requesting approval of modification of existing Conditional Use Permit No. 201214 to allow the sale of distilled spirits, in addition to beer and wine, for offsite consumption at an existing Target retail store.

Recommended Actions:

1. Adopt a resolution approving Conditional Use Permit No. 201214 MOD1 as conditioned, and

2. Authorize staff to issue a Letter of Public Convenience or Necessity to the State Department of Alcoholic Beverage Control.

3. CONDITIONAL USE PERMIT (CUP) NO. 202406 AND CONDITIONAL USE PERMIT (CUP) NO. 202407 FOR THE PROPERTY LOCATED AT 1303 NORTH BRISTOL STREET FOR THE PROPERTY LOCATED WITHIN THE BRISTOL STREET CORRIDOR SPECIFIC PLAN (SP1) ZONING DISTRICT.

Project Applicant: Jay Higgins, with Raising Cane’s Chicken Fingers (Applicant) on behalf of Charles Manh (Property Owner)
City Council 28 – 240 8/6/2024

2. Authorize staff to issue a Letter of Public Convenience or Necessity to the State Department of Alcoholic Beverage Control.

Project Applicant: Jay Higgins, with Raising Cane’s Chicken Fingers (Applicant) on behalf of Charles Manh (Property Owner)
Proposed Project: Applicant requests approval of Conditional Use Permit (CUP) No. 202406 and Conditional Use Permit (CUP) No. 202407 to allow for the construction of a new eating establishment (Raising Cane’s Chicken Fingers) with drivethrough window services and afterhours operation (between 12:00 a.m. and 5:00 a.m.). The subject site is comprised of two parcels, Assessor’s Parcel No. (APN) 40527221 and 40527224, which will be merged as part of a ministerial review process.

Environmental Impact: Pursuant to the California Environmental Quality Act (CEQA), the project is exempt from additional review pursuant to Section 15303 (Class 3 – New Construction) of the CEQA guidelines. Environmental Review No. 202372 will be filed for this project.

Recommended Actions:

1. Adopt a resolution approving Conditional Use Permit No. 202406 for drivethrough window service, as conditioned.

2. Adopt a resolution approving Conditional Use Permit No. 202407 for afterhours operation, as conditioned.

4. ZONING ORDINANCE AMENDMENT (ZOA) NO. 202401 FOR PROPERTY LOCATED AT 3100, 3110, 3120, 3130, AND 3400 WEST LAKE CENTER DRIVE (COLLECTIVELY REFERRED TO AS 3100 WEST LAKE CENTER DRIVE) LOCATED WITHIN SPECIFIC DEVELOPMENT NO. 58 (SD58) Project Applicant: Jeffrey Reese representing C.J. Segerstrom & Sons (Applicant) Proposed Project: Applicant is requesting approval of Zoning Ordinance Amendment (ZOA) No. 202401 modifying Specific Development No. 58 (SD58) to establish permitted and conditionally permitted light industrial land uses, accompanying development standards, as well as additional zoning text updates, in order to facilitate the construction of three industrial buildings, approximately 112,230 square feet, 121,645 square feet, and 79,369 square feet in size, for a new industrial park development (“South Coast Technology Center”). The subject site is comprised of several parcels, including Assessor’s Parcel Nos. (APNs) 41427209, 41427210, and 41426101.

Environmental Impact: Pursuant to the California Environmental Quality Act (CEQA), the project is exempt from CEQA pursuant to Section 15183 of the CEQA Guidelines (Projects Consistent with a Community Plan or Zoning). Environmental Review No. 2023109 will be filed for this project.

Recommended Actions:

1. Recommend that the City Council adopt an ordinance approving Zoning Ordinance Amendment (ZOA) No. 202401 modifying various sections of the Specific Development No. 58 (SD58) zoning district.

Administrative Matters

5. ELECTION OF OFFICERS FOR THE PLANNING COMMISSION FOR THE 2024 City Council 28 – 241 8/6/2024
Recommended Actions:

1. Recommend that the City Council adopt an ordinance approving Zoning Ordinance Amendment (ZOA) No. 202401 modifying various sections of the Specific Development No. 58 (SD58) zoning district.

Administrative Matters

5. ELECTION OF OFFICERS FOR THE PLANNING COMMISSION FOR THE 2024 2025 TERM.

Recommended Actions:

Elect a Chairperson for the 20242025 term.

Elect a Vice Chairperson for the 20242025 term.
*End of Business Calendar*
STAFF COMMENTS
Update on Comprehensive Zoning Code Update Workshops
COMMISSIONER COMMENTS

ADJOURNMENT
The next meeting of the Planning Commission will be on July 22, 2024 at 5:30 PM in the Council Chambers located at 22 Civic Center Plaza, Santa Ana, CA 92701.

APPEAL INFORMATION
The formal action by the Planning Commission shall become effective after the tenday appeal period, unless the City Council in compliance with section 41643, 41644 or 41645 holds a public hearing on the matter, then the formal action will become effective on the day following the hearing and decision by the City Council. An appeal from the decision or requirement of the Planning Commission may be made by any interested party, individual, or group. The appeal must be filed with the Clerk of the Council, accompanied by the required filing fee, and a copy sent to the Planning Department, within ten days of the date of the Commission's action, by 5:00 p.m. If the final day to appeal falls on a City Hall observed holiday or a day when City hall is closed, the final day to appeal shall be extended to the next day City Hall is open for public business. Please note: Under California Government Code Sec. 65009, if you challenge in court any of the matters on this agenda for which a public hearing is to be conducted, you may be limited to raising only those issues which you (or someone else) raised orally at the public hearing or in written correspondence received by the Planning Commission or City Council at or before the hearing.

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City Council 28 – 242 8/6/2024
MEETING INFORMATION
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Submit a written comment
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Email PBAecomments@santaana.org and reference the topic in the subject line.

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City Council 28 – 243 8/6/2024
Planning Commission
Regular Meeting Agenda Minutes
June 24, 2024
5:30 P.M.

Council Chamber
22 Civic Center Plaza
Santa Ana, CA
Bao Pham
Chair, Ward 1 Representative
Jennifer Oliva
ViceChair,
Ward 6 Representative
Christopher Leo
Citywide Representative
Manuel J. Escamilla
Ward 2 Representative
Carl Benninger
Ward 4 Representative
Isuri S. Ramos
Ward 3 Representative
Alan Woo
Ward 5 Representative
Minh Thai
Executive Director
Jose Montoya
Legal Counsel
Ali Pezeshkpour, AICP
Planning Manager
Nuvia Ocampo
Recording Secretary
In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this Meeting, contact Michael Ortiz, City ADA Program Coordinator, at (714) 6475624. Notification 48 hours prior to the Meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. The City Council agenda and supporting documentation can be found on the City’s website – www.santaana.org/citymeetings.

CALL TO ORDER
Commissioners: Bao Pham, Chair
Manuel Escamilla
Christopher Leo
1 Planning Commission
6/24/2024
City Council 28 – 244 8/6/2024
In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this Meeting, contact Michael Ortiz, City ADA Program Coordinator, at (714) 6475624. Notification 48 hours prior to the Meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. The City Council agenda and supporting documentation can be found on the City’s website – www.santaana.org/citymeetings.

PLEDGE OF ALLEGIANCE
PUBLIC COMMENTS
Minutes: None.

CONSENT CALENDAR ITEMS
a. Minutes
Recommended Action: Approve Minutes from June 10, 2024. b. Excused Absences
Recommended Action: Excuse absent commissioners.

Moved by Commissioner Woo, seconded by Commissioner Benninger to Approve Minutes from June 10, 2024.

YES: 4 – Isuri Ramos, Alan Woo, Jennifer Oliva, Carl Benninger NO: 0 – ABSTAIN: 0 – ABSENT: 3 – Bao Pham, Christopher Leo, Manuel J. Escamilla Status: 4 – 0 – 0 – 3 – Pass
Moved by Commissioner Benninger, seconded by Commissioner Oliva to Approve excused absence from Commissioner Leo.

YES: 6 – Bao Pham, Isuri Ramos, Alan Woo, Manuel J. Escamilla, Jennifer Oliva, Carl Benninger
NO: 0 – ABSTAIN: 0 – ABSENT: 1 – Christopher Leo
Status:6–0–0–1–Pass
2 Planning Commission
6/24/2024
City Council 28 – 245 8/6/2024
YES: 4 – Isuri Ramos, Alan Woo, Jennifer Oliva, Carl Benninger NO: 0 – ABSTAIN: 0 – ABSENT: 3 – Bao Pham, Christopher Leo, Manuel J. Escamilla Status: 4 – 0 – 0 – 3 – Pass
Moved by Commissioner Benninger, seconded by Commissioner Oliva to Approve excused absence from Commissioner Leo.

YES: 6 – Bao Pham, Isuri Ramos, Alan Woo, Manuel J. Escamilla, Jennifer Oliva, Carl Benninger
NO: 0 – ABSTAIN: 0 – ABSENT: 1 – Christopher Leo
Status: 6 – 0 – 0 – 1 – Pass
*End of Consent Calendar*
BUSINESS CALENDAR
Public Hearing: The Planning Commission decision on Conditional Use Permits, Variances, Tentative Tract and Parcel Maps, Minor Exceptions, Site Plan Review, and Public Convenience or Necessity Determinations are final unless appealed within 10 days of the decision by any interested party or group (refer to the Basic Meeting Information page for more information). The Planning Commission recommendation on Zoning and General Plan amendments, Development Agreements, Specific Developments, and Specific Plans will be forwarded to the City Council for final determination. Legal notice was published in the OC Reporter on June 14, 2024 and notices were mailed on said date.

1. CONDITIONAL USE PERMIT NO. 202405 FOR THE PROPERTY LOCATED AT 1430 EAST EDINGER AVENUE LOCATED WITHIN THE LIGHT INDUSTRIAL (M1) ZONING DISTRICT.

Project Applicant: Darian Radac with Novum Architecture, Inc. (Applicant) on behalf of Spiros Politis (Property Owner)
Proposed Project: Applicant is requesting approval of Conditional Use Permit No. 202405 to develop a new eating establishment (Tom’s Jr.) with drivethrough window service, at an existing commercial site developed with a standalone pad building and previously occupied by an eating establishment. The overall project would include a reduction in the gross floor area of the existing building, a new drivethrough lane, and various onsite improvements.

Environmental Impact: Pursuant to the California Environmental Quality Act (CEQA), the project is exempt from further review pursuant to Section 15301 of the CEQA Guidelines (Class 1 – Existing Facilities) Environmental Review No. 202332, will be filed for this project.

Recommended Action:

Adopt a resolution approving Conditional Use Permit No. 202405, as conditioned.

Minutes: Commission had questions for staff.

Staff answered questions from Commission.

Commissioner Escamilla requested a condition of approval requiring the applicant to work with staff to modify the proposed landscaping plan as per his comments.

Moved by Commissioner Escamilla, seconded by Commissioner Ramos to Approve.

YES: 6 – Bao Pham, Isuri Ramos, Alan Woo, Manuel J. Escamilla, Jennifer Oliva, Carl Benninger
NO0ABSTAIN0ABSENT1ChithL
3 Planning Commission
6/24/2024
City Council 28 – 246 8/6/2024
Commissioner Escamilla requested a condition of approval requiring the applicant to work with staff to modify the proposed landscaping plan as per his comments.

Moved by Commissioner Escamilla, seconded by Commissioner Ramos to Approve.

YES: 6 – Bao Pham, Isuri Ramos, Alan Woo, Manuel J. Escamilla, Jennifer Oliva, Carl Benninger
NO: 0 – ABSTAIN: 0 – ABSENT: 1 – Christopher Leo
Status: 6 – 0 – 0 – 1 – Pass
*End of Business Calendar*
STAFF COMMENTS
Minutes: Staff had comments for Commission.

COMMISSIONER COMMENTS
Minutes: Commission had comments for staff.

ADJOURNMENT
The next meeting of the Planning Commission will be on July 08, 2024 at 5:30 PM in the Council Chambers located at 22 Civic Center Plaza, Santa Ana, CA 92701.

Minutes: Meeting was adjourned at 6:19 PM.

MEETING INFORMATION
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To speak during the meeting: When you wish to comment on an item that is being is 4 Planning Commission
6/24/2024
City Council 28 – 247 8/6/2024
If you would like to learn how to use Zoom before the meeting, visit Zoom Video Tutorials.

1. Connecting directly from your computer:

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2. Connecting via the Zoom App:

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To speak during the meeting: When you wish to comment on an item that is being is discussed, press *9 on your phone to virtually raise your hand. You will have 3 minutes.

Submit a written comment
You are invited to submit a written comment in one of the following ways:

Email PBAecomments@santaana.org and reference the topic in the subject line.

Mail to Nuvia Ocampo, Recording Secretary, City of Santa Ana, 20 Civic Center Plaza – M20, Santa Ana, CA 92701.

Deadline to submit written comments is 3:30 p.m. on the day of the meeting. Comments received after the deadline may not be distributed to the Commission but will be made part of the record.
5 Planning Commission
6/24/2024
City Council 28 – 248 8/6/2024
Planning and Building Agency
July 8, 2024
Item # XX
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Planning Commission Staff Report
July 8, 2024
Topic: Conditional Use Permit No. 2005-22-MOD-1 – Target ABC License Modification (1441 West Seventeenth Street)

RECOMMENDED ACTION

1. Adopt a resolution approving modification to Conditional Use Permit No. 2005-22 as conditioned; and

2. Authorize staff to issue a Letter of Public Convenience or Necessity to the State Department of Alcoholic Beverage Control.

EXECUTIVE SUMMARY
Beth Aboulafia with Hinman and Carmichael, LLP., and representing Target Corporation (Applicant and Property Owner), is requesting approval of a modification to Conditional Use Permit (CUP) No. 2005-22 (CUP No. 2005-22-MOD-1) and approval to make a determination of Public Convenience or Necessity (PCN) to allow the sale of distilled spirits, in addition to beer and wine, for off-premises consumption through the operation of a Type-21 Alcoholic Beverage Control (ABC) license, at an existing Target retail store located at 1441 West Seventeenth Street.

Pursuant to Section 41-196 of the Santa Ana Municipal Code (SAMC), establishments wishing to sell alcoholic beverages for off-premises consumption require approval of a CUP and, in accordance with Section 41-649 of the SAMC, a modification to a CUP requires refiling of a new application and approval by the Planning Commission. In addition, in accordance with Section 41- 645.5 of the SAMC and Section 23958.4 of the Business and Professional Code, a determination of PCN is required for the proposed CUP modification. Staff is recommending approval of the applicant’s request because the site is located away from sensitive land uses and the property’s history of compliance with City codes and regulations. Furthermore, the project is anticipated to serve the public’s convenience by offering a convenient one-stop, full department store experience without resulting in detrimental impacts to the surrounding neighborhood.

DISCUSSION
Project Description
The applicant is requesting approval of a modification to CUP No. 2005-22 to allow the sale of distilled spirits for off-premises consumption, in addition to the existing sale of beer and wine, by upgrading from a Type-20 to a Type-21 ABC license, at an existing Target store located 1441 West Seventeenth Street. Target currently occupies an existing 122,751-square foot commercial building within a planned shopping center located at the northwest corner of Seventeenth Street and Bristol Street. If the CUP modification request is approved, Target will upgrade the interior retail service area of the store to expand their alcohol beverage display area to approximately 244-square feet in size to allow for the additional display of distilled spirits. No additional improvements are being proposed at this time. The hours of operation will continue to be Monday City Council 28 – 249 8/6/2024 Modification to CUP No. 2005-22 – Target ABC License Modification (1441 West Seventeenth Street)
July 8, 2024

Page 2 ends

through Sunday from 8:00 a.m. to 10:00 p.m. After-hours operations are not being requested at this time.

Table 1: Project and Location Information
Table 2: Operational Standards
Standards Permissible by SAMC Proposed
Hours of Operation for Alcohol
Sales
Monday through Sunday from
7:00 a.m. to 12:00 a.m.
(midnight), unless extended by a
separate after-hours CUP
Monday through Sunday from
8:00 a.m. to 10:00 p.m.;
Complies
Window Display 25% of Window Coverage Complies
Project Background
The project site was developed in 1995 as a Home Base home improvement retail store. In 2003, an addition was constructed to increase the square footage of the existing commercial building and interior improvements were also conducted in order to facilitate the operation of a new Target retail store. Throughout the years, the site has continued to be improved with roof-mounted solar equipment, signage upgrades, multiple tenant improvements, and two exterior façade remodels.

On November 28, 2005, the Planning Commission approved Resolution No. 2005-18 allowing the sale of beer and wine for off-premises consumption. On September 25, 2023, the applicant submitted the subject application to the Planning Division to modify the existing CUP to allow the sale of distilled spirts for off-premises consumption in order to provide an additional service to its customers and become a one-stop department store.

Item Information
Project Address and Council Ward 1441 West Seventeenth Street – Ward 3 Nearest Intersection Seventeenth Street and Bristol Street General Plan Designation General Commercial (GC)
Zoning Designation General Commercial (C2)
North Mendez Fundamental Intermediate
School
East Commercial
South Santa Ana College
Surrounding Land Uses
West Commercial
Property Size 7.69 acres (334,976 sq. ft.)
Existing Site Development The subject site is developed with a 122,751 sq. ft. building currently occupied by Target and Starbucks, and a surface parking lot with 1,656 shared parking spaces.

Unit Size 122,751 sq. ft.

Use Permissions Allowed with approval of a CUP
Uses SAMC sections 41-196(f),
Zoning Code Sections Affected 41-365(a), & 41-649
Operational Standards SAMC Section 41-196(f)
Census Tract No. 753.02 Census Tract and ABC License
Information No. of Allowed and Existing
Licenses (off-sale) 2 Allowed & 4 Existing
City Council 28 – 250 8/6/2024
Modification to CUP No. 2005-22 – Target ABC License Modification (1441 West Seventeenth Street)
July 8, 2024

Page 3 ends

Target currently operates at three locations in Santa Ana. The Target store located at 1330 East Seventeenth Street currently sells beer, wine, and distilled spirits for off-premises consumption as CUP No. 2023-04 was approved by the Planning Commission on April 10, 2023. At this time, the remaining Target stores located at 3300 South Bristol Street and 1441 West Seventeenth Street, hold a Type-20 ABC license, but are concurrently seeking approval to allow for the operation of a Type-21 ABC license upgrade, so all Santa Ana Targets can offer the same assortment of alcoholic beverages for off-premises consumption. Since the application was submitted, staff has been working with the applicant, ABC, Code Enforcement and the Police Department to address any potential adverse impacts associated with the sale of alcoholic beverages for off-premises consumption.

Project Analysis
Conditional Use Permit Analysis:

CUP requests are governed by Section 41-638 of the SAMC. Additionally, CUP modification requests are governed by Section 41-649 of the SAMC. CUPs and CUP modifications may be granted when it can be shown that the proposed project will not adversely impact the community.

If these findings can be made, then it is appropriate to grant the CUP. Conversely, the inability to make these findings would result in a denial. The purpose of regulating establishments that sell alcoholic beverages is to set forth operating practices and procedures and to minimize impacts to surrounding areas. Staff has reviewed the applicant’s request for the sale of alcoholic beverages for off-premises consumption and has determined that the sale of alcoholic beverages for offpremises consumption at the subject location will not be detrimental to the health, safety, and welfare of the community.

The proposed sale of alcoholic beverages for off-premises consumption at the proposed location will provide an ancillary service to Target’s customers by allowing them the ability to purchase a wider variety of alcoholic beverages with other products. This would allow Target to remain economically viable and complete with nearby stores offering the same type of services. The operational standards applied to the ABC license, per Section 41-196(f) of the SAMC, will mitigate any potential impacts created by the use and will ensure that the use will not negatively affect the surrounding community. The subject site is located in the Marketplace Bristol shopping center, which is primarily surrounded by other commercial uses. Although Target abuts the Mendez Fundamental Intermediate School, approximately 545 linear feet to the north, the orientation of the primary entrances of both buildings face in opposite directions, further enhancing the separation between the existing land uses. Santa Ana College is approximately 800 linear feet to the south of the property and across Seventeenth Street. The subject property is not located in close proximity to any public playgrounds or parks. The establishment will comply with the operational standards set forth in Section 41-196(f) of the SAMC, thereby mitigating impacts to public health, safety, and welfare. Lastly, the City has not received any complaints or issued any notice of violations to the property owner or previous tenants. Therefore, staff recommends approval of the proposed CUP.

Approval of the CUP will be consistent with several goals and policies of the General Plan. Policy

Page 4 ends

residential environment by providing an increase to the ancillary alcohol selection within the market section already provided by Target. Target is committed to offering employment opportunities (LU-2.1) for the surrounding community, and with an increase to the market section, more opportunities are provided. The community will benefit both from the convenience of having access to an increase in product selection that is within walking distance from the surrounding neighborhood (LU-3.1 and 4.1), and by alcohol being sold at an established department store that is in sound compliance with all local and State ABC regulations. The proposed Target operations are consistent with Policy LU-3.7 that calls for promoting a balance of land uses to address basic community needs, while maintain a clean and safe environment for Santa Ana’s residents, workers, and visitors. Furthermore, Policy LU-2.2 encourages a range of commercial uses to capture a greater share of local spending. The sale of alcohol beverages for off-premises consumption at this site will provide an additional location in Santa Ana where residents can purchase alcohol which will ensure local spending.

Public Convenience or Necessity Analysis:

PCN requests are governed by Section 41-645.5 of the SAMC and Section 23958.4 of the Business and Professional Code. A PCN determination is required for this project because Target is located in a census tract where the ratio of existing retail off-premises alcohol licenses to population in the census tract exceeds the ratio of retail off-premises alcohol licenses to population in the county, resulting in an over concentration as determined by ABC. Target is located in Census Tract No. 753.02, which ABC allows a maximum of two off-premises alcohol licenses, while there are currently four active licenses per ABC. Per ABC, an “undue concentration” would occur if more than two off-premises licenses are within this census tract. It is important to note that, if CUP No. 2005-22-MOD-1 is approved, the existing Type-20 ABC license currently being operated by Target will be surrendered once the Type-21 ABC license is approved and processed by ABC and the Census Tract will continue to have a total of four ABC licenses. Table 3 below and Exhibit 6 identify the location of the existing off-premises alcohol licenses. The licensed establishments are located intermittently throughout the census tract, with the closest licensed premises (Smart & Final), approximately 0.1 miles from Target.

Table 3: Off-Premises ABC Licenses within Census Tract No. 753.02 Premises Location License Type Distance
(1) Parks Dairy 1927 West Seventeenth Street Type 20 0.6 miles (2) CVS Pharmacy 1545 West Seventeenth Street Type 21 0.2 miles (3) Smart & Final 1523 West Seventeenth Street Type 21 0.1 miles (4) Target 1441 West Seventeenth Street Type 20 0.0 miles PCN requests are governed by Section 41-645.5 of the SAMC, and certain findings must be made in order to grant the PCN. Conversely, the inability to make these findings would result in a denial.

Page 5 ends

any other activity that could be detrimental to the surrounding community. The addition of distilled spirits would add a substantial convenience to the surrounding community by adding to the food options at the existing market section of the store. The ability to purchase alcoholic beverages with other grocery items will offer customers a more complete shopping experience and will provide a service to Target customers by eliminating the need for an additional shopping trip to other off-sale alcoholic beverage establishments nearby.

The proposed sale of alcoholic beverages for off-premises consumption would improve the overall functions of the business by enhancing the complete department store experience. Over 95- percent of the Target stores in California sell alcoholic beverages, and Target corporation implements its own policies to ensure the safe and responsible handling and sale of alcoholic beverages from its department stores. Although there are other establishments selling alcoholic beverages for off-premises consumption nearby, none of those establishments offer the same complete department store shopping opportunities as Target. The addition of alcoholic beverages for off-premises consumption at this Target location ensures the store will remain economically viable and that it offer a full selection of items that grocery customers expect. Because of this, staff recommends that the Planning Commission grant a determination of PCN and authorize staff to issue a Letter of PCN to ABC.

Police Department Analysis:

The Police Department has reviewed this request and has no concerns, as the operational standards applicable to off-premises ABC licenses will mitigate any potential impacts to the surrounding community. The Police Department reviews such applications for the sale of alcoholic beverages in order to ensure that the potential crime and nuisance behaviors associated with alcohol consumption are mitigated to the greatest extent possible. For off-premises licenses, the Police Department analyzes the crime rate in the area using the standards and definitions contained in the Business and Professions Code Section 23948.4(c)(2), which are also utilized by ABC. This section defines “reported crimes” as criminal homicide, forcible rape, robbery, aggravated assault, burglary, larceny theft, and motor vehicle theft, combined with all arrests for other crimes, both felonies and misdemeanors, except traffic citations.

The Police Department then compares the number of such crimes in the reporting district as compared to the number of crimes in other reporting districts. In keeping with the standard used by ABC and Business and Professions Code, should the Police Department determine that the reporting district has a 20 percent greater number of reported crimes than the average number found in all reporting districts, the Police Department will consider this information in making its recommendation. As part of the application process, the application was reviewed by the Police Department. Based on its review, the Police Department has no issues of concern regarding this application.

City Council 28 – 253 8/6/2024
Modification to CUP No. 2005-22 – Target ABC License Modification (1441 West Seventeenth Street)
July 8, 2024

Page 6 ends

Table 4: Police Department Analysis and Criteria for Recommendation Police Department Analysis and Criteria for Recommendation Police Grid No. and
Rank
Police Grid No. 123; ranked 23 out of 102 Police Reporting Grids (22nd percentile).

Threshold for High
Crime
This reporting district is below the 20 percent threshold established by the State for high crime
Police Department
Recommendation
As part of the review approval process, this application was analyzed by the Santa Ana Police Department. Based on its review, the Police Department has no issues of concern regarding this application.

The Police Department is satisfied with the operational standards applicable for a premise upgrade to Type 21 ABC license and conclude that the conditions set forth will mitigate any potential negative impact to the surrounding community, and therefore does not oppose the granting of a CUP modification.

Public Notification and Community Outreach
Project notifications were posted, published, and mailed in accordance with City and State regulations. Copies of the public notice, including a 1,000-foot notification radius map, and the site posting are provided in Exhibit 7. As part of the community outreach, Target and staff both contacted representatives of Washington Square, Artesia Pilar, West Floral Park, and Riverview neighborhood associations to identify any areas of concerns due to the proposed application request. At the time this report was printed, no issues of concern were raised regarding the proposed CUP.

ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is categorically exempt from further review pursuant to Section 15301 (Class 1 – Existing Facilities) of the CEQA Guidelines. Class 1 exemption applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use as determined by the lead agency. The project proposes to modify an existing CUP to allow the sale of distilled spirits, in addition to beer and wine, for offpremises consumption at an existing Target store located at 1441 West Seventeenth Street. As such, a new Notice of Exemption (NOE) will be filed for this project.

FISCAL IMPACT
There is no fiscal impact associated with this action.

City Council 28 – 254 8/6/2024
Modification to CUP No. 2005-22 – Target ABC License Modification (1441 West Seventeenth Street)
July 8, 2024

Page 7 ends

EXHIBIT(S)

1. Resolution for CUP No. 2005-22-MOD-1

2. Vicinity Zoning and Aerial View

3. Site Photo

4. Site Plan

5. Floor Plan

6. Map of Off-Premises ABC Licenses within Census Tract No. 753.02

7. Copy of Public Notices
Submitted By:

Matthew Kilroy, Assistant Planner I
Approved By:

Minh Thai, Executive Director of Planning and Building Agency City Council 28 – 255 8/6/2024
Resolution No. 2024-XXX

Page 1 of 8 ends

RESOLUTION NO. 2024-XXX

A RESOLUTION OF THE PLANNING COMMISSION OF

THE CITY OF SANTA ANA APPROVING A MODIFICATION
TO CONDITIONAL USE PERMIT NO. 2005-22 (CUP NO.
2005-22-MOD-1) AS CONDITIONED AND MAKING A

DETERMINATION OF PUBLIC CONVENIENCE OR

NECESSITY TO ALLOW THE SALE OF DISTILLED
SPIRITS, IN ADDITION TO BEER AND WINE, FOR OFFPREMISES CONSUMPTION FOR THE TARGET STORE LOCATED AT 1441 WEST SEVENTEENTH STREET

BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1. The Planning Commission of the City of Santa Ana hereby finds, determines, and declares as follows:

A. Beth Aboulafia with Hinman and Carmichael, LLP., representing Target Corporation (“Applicant” and “Property Owner”), is requesting approval of a modification to Conditional Use Permit (“CUP”) No. 2005-22 (“CUP No. 2005-22-MOD-1”) to modify an existing CUP and approval to make a determination of Public Convenience or Necessity (“PCN”) to allow the sale of distilled spirits, in addition to beer and wine, for off-premises consumption at an existing Target store located at 1441 West Seventeenth Street.

B. Santa Ana Municipal Code (“SAMC”) Section 41-196 requires approval of a CUP for establishments wishing to sell alcoholic beverages for off-premises consumption.

C. SAMC Section 41-649 requires approval of a modification of an approved CUP.

D. On November 28, 2005, the Planning Commission adopted Resolution No. 2005-18 approving CUP No. 2005-22 allowing the sale of beer and wine for off-premises consumption at 1441 West Seventeenth Street.

E. SAMC Section 41-645.5, and California Business and Professions Code Section 23958.4, requires a determination of PCN when a request for the sale of alcoholic beverages for off-premises consumption is located within an area deemed to have an undue concentration of off-premises alcohol licenses as determined by the Department of Alcoholic Beverage Control (“ABC”).

City Council 28 – 256 8/6/2024
Resolution No. 2024-XXX

Page 2 of 8 ends

F. On July 8, 2024, the Planning Commission held a duly noticed public hearing for CUP No. 2005-22-MOD-1.

G. The Planning Commission of the City of Santa Ana determines that the following findings, which must be established in order to grant a CUP pursuant to SAMC Section 41- 638, have been established for CUP No. 2005-22-MOD-1 to allow the sale of distilled spirits, in addition to beer and wine, for off-premises consumption at an existing Target store located at 1441 West Seventeenth Street:

1. That the proposed use will provide a service or facility which will contribute to the general wellbeing of the neighborhood or community.

The sale of distilled spirits, in addition to beer and wine, for offpremises consumption at the subject location will provide an ancillary service to Target’s customers by allowing them the ability to purchase alcoholic beverages with other products. This will thereby benefit the community by providing an additional establishment that will provide goods and services via a one-stop store. Operational standards applicable to the ABC license, pursuant to SAMC Section 41-196(f), and conditions of approval will mitigate any potential impacts created by the use and will ensure that the use will not negatively affect the surrounding community.

2. That the proposed use will not, under the circumstances of the particular case, be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity.

The sale of distilled spirits, in addition to beer and wine, for offpremises consumption at the subject site will not be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity because the operational standards applicable to the ABC license, pursuant to Section 41-196(f) of the SAMC, and conditions of approval will address any potential negative or adverse impacts created by the use. The granting of the CUP will not negatively impact any sensitive land uses that may be nearby. The City has not received any complaints or issued any notice of violations to the property owner or previous tenants.

3. That the proposed use will not adversely affect the present economic stability or future economic development of properties surrounding the area.

The sale of distilled spirits, in addition to beer and wine, for offpremises consumption at the subject site will not adversely affect the City Council 28 – 257 8/6/2024
Resolution No. 2024-XXX

Page 3 of 8 ends

economic stability of the area, but will instead allow Target to compete with other nearby stores that offer a full selection of alcoholic beverages for sale to their customers. The offering of alcoholic beverages for off-premises consumption will allow Target to remain economically viable and will contribute to the overall success of the City.

4. That the proposed use will comply with the regulations and conditions specified in Chapter 41 (Zoning) of the SAMC for such use.

The sale of distilled spirits, in addition to beer and wine, for offpremises consumption will be in compliance with all applicable regulations and operational standards imposed on an establishment selling alcoholic beverages for off-premises consumption pursuant to Chapter 41 of the SAMC. The establishment will be maintained as a commercial building with primary retail, having suitable storage facilities and supplying an assortment of essential goods. Moreover, operational standards, pursuant to Section 41-196(f) of the SAMC, and conditions of approval, will ensure the establishment remains in compliance with all applicable codes and regulations related to alcohol sales to ensure that the use does not impact neighboring properties or create an attractive nuisance.

5. That the proposed use will not adversely affect the General Plan of the city or any specific plan applicable to the area of the proposed use.

The sale of distilled spirits, in addition to beer and wine, for offpremises consumption at the subject site will not adversely affect the General Plan or any specific plan. The granting of CUP No. 2005-22- MOD-1 supports several policies contained in the General Plan.

Policy 2.2 of the Land Use Element (LU) encourages a range of commercial uses to capture a greater share of local spending and employment opportunities The sale of alcoholic beverages at the subject site will provide Target’s customers with a one-stop store service which will contribute to capturing local spending. Policy LU2.7 supports land use decisions that encourage the creation, development, and retention of businesses in Santa Ana. The granting of CUP No. 2005-22-MOD-1 will ensure Target remains competitive with other stores offering similar services in other cities, therefore ensuring Target’s retention in Santa Ana. Lastly, Policy LU4.1 encourages complete neighborhoods by creating a mix of complementary uses, community services, and places within a walkable area. The additional sales of distilled spirits for off-premises City Council 28 – 258 8/6/2024
Resolution No. 2024-XXX

Page 4 of 8 ends

consumption will create a one-stop store within walking distance for residents residing in the general vicinity of Target.

H. The Planning Commission of the City of Santa Ana determines that the following findings, which must be established in order to determine a PCN pursuant to SAMC Section 41-645.5, have been established for CUP No. 2005-22-MOD-1 to allow the sale of distilled spirits, in addition to beer and wine, for off-premises consumption at an existing Target store located at 1441 West Seventeenth Street:

1. The proposed use will not be detrimental to the character of development in the immediate neighborhood and will be in harmony with the overall objectives of the General Plan.

The sale of distilled spirits, in addition to beer and wine, for offpremises consumption will not be detrimental to the character of development in the immediate neighborhood. Target is a full-scale department store located in an integrated shopping center that is designed to minimize intrusion into surrounding neighborhoods. The primary entrance to the store is located on the south side of the building and faces away from any sensitive land uses nearby.

Moreover, operational standards applicable to the ABC license and conditions of approval will mitigate any potential impacts created by the use and will ensure that the use will not negatively affect the immediate neighborhood. The granting of CUP No. 2005-22-MOD-1 will be in harmony with the overall objective of the General Plan as stated in Section 1.G.5. above.

2. The economic benefit outweighs the negative impacts to the community as whole.

The economic benefit associated with the sale of distilled spirits, in addition to beer and wine, for off-premises consumption at the subject site will outweigh any potential negative impacts to the community as a whole. The sale of distilled spirits, in addition to beer and wine, for off-premises consumption will positively affect the economic welfare of the community by adding a service to an existing department store with grocery store located within its existing operations. The additional service will offer additional community services at an existing department store with its own policies and standards for the sale of alcoholic beverages, which complement policies and standards imposed by State ABC, and generates additional sale tax revenue for the City.

3. The issuance of the license will provide a needed service not currently being met in the community.

City Council 28 – 259 8/6/2024
Resolution No. 2024-XXX

Page 5 of 8 ends

The sale of distilled spirits, in addition to beer and wine, for offpremises consumption at the subject site will provide a needed service not currently being met at the subject department store. A significant component of the Target store is its market section. The market section offers a full-range of grocery products, including fresh meats and produce, along with a variety of dry goods. The ability to purchase alcoholic beverages with other grocery items will offer customers a more complete shopping experience and will provide a service to Target customers by eliminating the need for an additional shopping trip to other off-sale alcoholic beverage establishments nearby.

4. There exist special and unusual circumstances present here to justify a new retail alcohol outlet when there are already similar alcohol uses existing nearby.

Although there are other establishments selling alcoholic beverages for off-site consumption on other properties in the vicinity, none of those establishments offer the same shopping opportunities as Target in a one-stop, department store location, which will assist in creating an inclusive and economically diverse neighborhood.

5. The business cannot operate profitably without a liquor license.

The sale of distilled spirits, in addition to beer and wine, for offpremises consumption at the subject site will allow Target to remain competitive with other stores offering similar services and will contribute to the on-going economic viability of its grocery selection.

Over 95-percent of Target stores in California sell alcoholic beverages for off-premises consumption as part of the company’s grocery offerings. The addition of alcoholic beverages for offpremises consumption at this Target location ensures the store will remain economically viable and that it offer a full selection of items that grocery customers expect.

6. The applicant has demonstrated reasonable efforts to seek community input.

City Council 28 – 260 8/6/2024
Resolution No. 2024-XXX

Page 6 of 8 ends

As part of the application process, residents, business owners, and property owners within 1,000 feet of the Target were sent letters notifying them of Target’s application request for the sale of distilled spirits, in addition to beer and wine, for off-premises consumption.

Target and staff both contacted the representatives of the Washington Square, Artesia Pilar, West Floral Park, and Riverview neighborhood associations to identify any areas of concerns due to the proposed application request and no objections were received.

Target will continue to seek community input and coordinate with the community to first identify and then resolve any issues should they arise.

Section 2. In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is categorically exempt from further review pursuant to Section 15301 (Class 1 – Existing Facilities) of the CEQA Guidelines. Class 1 exemption applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use as determined by the lead agency. The project proposes to modify an existing CUP to allow the sale of distilled spirits, in addition to beer and wine, for off-premises consumption at an existing Target store. As such, a new Notice of Exemption (NOE) will be filed for this project.

Section 3. The Applicant shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, referendum, and other proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively “Actions”), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve the legal counsel providing the City’s defense, and that Applicant shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Applicant of any Action brought and City shall cooperate with Applicant in the defense of the Action.

City Council 28 – 261 8/6/2024
Resolution No. 2024-XXX

Page 7 of 8 ends

Section 4. The Planning Commission of the City of Santa Ana, after conducting the public hearing, hereby approves Modification No. 1 to Conditional Use Permit No. 2005-22, as conditioned in Exhibit A, and in Exhibit B, Operational Standards for Off-Sale Establishments, attached hereto and incorporated herein, and grants the request for determination of Public Convenience or Necessity to allow the sale of distilled spirits, in addition to beer and wine, for off-premises consumption at an existing Target store located at 1441 West Seventeenth Street. This decision is based upon the evidence submitted at the above-referenced hearing, including but not limited to: The Request for Planning Commission Action dated July 8, 2024, and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference.

ADOPTED this 8th day of July 2024 by the following vote.

AYES: Commissioners:

NOES: Commissioners:

ABSENT: Commissioners:

ABSTENTIONS: Commissioners:
_____________________
Bao Pham
Chairperson
APPROVED AS TO FORM:

Sonia R. Carvalho, City Attorney
By: ______________________
Jose Montoya
Assistant City Attorney
City Council 28 – 262 8/6/2024
Resolution No. 2024-XXX

Page 8 of 8 ends

CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, NUVIA OCAMPO, Recording Secretary, do hereby attest to and certify the attached Resolution No. 2024-XXX to be the original resolution adopted by the Planning Commission of the City of Santa Ana on July 8, 2024.

Date: _____________________ ______________________________ Recording Secretary
City of Santa Ana
City Council 28 – 263 8/6/2024

EXHIBIT A
Conditions of Approval for Conditional Use Permit No. 2005-22-MOD-1 Conditional Use Permit No. 2005-22-MOD-1 to allow the sale of distilled spirits, in addition to beer and wine, for off- premises consumption is approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with all applicable sections of the Santa Ana Municipal Code, the California Administrative Code, the California Building Standards Code, and all other applicable regulations.

The Applicant/Licensee (hereinafter, “Applicant”) shall comply with each and every condition listed in order to exercise the rights conferred by this conditional use permit.

The Applicant shall remain in compliance with all conditions listed below throughout the life of the conditional use permit. Failure to comply with each and every condition may result in the revocation of the conditional use permit.

1. Any amendment to this conditional use permit must be submitted to the Planning Division for review. At that time, staff will determine if administrative relief is available or if the conditional use permit must be amended.

2. The sale of alcoholic beverages for off-premises consumption shall be permitted in accordance with the operational standards for off-premises establishments pursuant to Section 41-196(f) of the Santa Ana Municipal Code (SAMC), attached hereto as Exhibit B for reference, in accordance with the provisions of an offpremises alcohol license by the California Department of Alcoholic Beverage Control (ABC), and in accordance with the site and floor plans attached to the staff report documenting the approved scope of the project.

3. The sale of alcoholic beverages for off-premises consumption shall occur from 7:00 a.m. to 12:00 a.m. (midnight) seven days per week, unless modified through a subsequent and separate conditional use permit application for after-hours operations pursuant to SAMC Section 41-196(f)(14).

4. The Planning Division shall review Conditional Use Permit No. 2005-22-MOD-1 no later than twelve (12) months after full execution of this conditional use permit.

Should any issues arise during such review, the Conditional Use Permit shall be scheduled for public hearing at the applicant’s full expense for condition modification(s).

5. Violations of the Conditional Use Permit, as contained in Section 41-647.5 of the SAMC, will be grounds for permit revocation and/or suspension as described in Section 41-651 of the SAMC.

City Council 28 – 264 8/6/2024

6. Prior to the release of this resolution, the applicant shall conduct the following site improvements:
a. All missing or dead landscape located around the Target building and throughout the entire site shall be rehabilitated, including, but not limited to, rehabilitation along the western perimeter wall, and replacement of trees to the north of the property. Applicant shall rehabilitate landscape and contact the Case Planner for a final walk-through inspection of the site. b. All unpermitted storage containers located to the west and east of the property shall be removed.

7. The business owner shall maintain and adhere to a “Good Neighbor Policy,” implementing measures to ensure patrons comply with applicable noise, parking, and outdoor smoking regulations, and removing litter and preventing loitering in the areas in the immediate vicinity of the business.

8. The contact information for onsite management shall be posted in a prominent location at the primary entrance to the business to allow prompt reporting of any site issues.

Applicant (and the owner of the property upon which the authorized use and/or authorized improvements are located if different from the Applicant) shall execute a maintenance agreement with the City of Santa Ana which shall be recorded against the property and which shall be in a form reasonably satisfactory to the City Attorney. The maintenance agreement shall contain covenants, conditions and restrictions relating to the following:
a. Compliance with operational conditions applicable during any period(s) of construction or major repair (e.g., proper screening and securing of the construction site; implementation of proper erosion control, dust control and noise mitigation measure; adherence to approved project phasing etc.); b. Compliance with ongoing operational conditions, requirements and restrictions, as applicable (including but not limited to hours of operation, security requirements, the proper storage and disposal of trash and debris, enforcement of the parking management plan, and/or restrictions on certain uses);
City Council 28 – 265 8/6/2024
c. Ongoing compliance with approved design and construction parameters, signage parameters and restrictions as well as landscape designs, as applicable;
d. Ongoing maintenance, repair and upkeep of the property and all improvements located thereupon (including but not limited to controls on the proliferation of trash and debris on or about the property; the proper and timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly accessible bathrooms and bathroom fixtures, landscaping and related landscape improvements and the like, as applicable);
e. If Applicant and the owner of the property are different (e.g., if the Applicant is a tenant or licensee of the property or any portion thereof), both the Applicant and the owner of the property shall be signatories to the maintenance agreement and both shall be jointly and severally liable for compliance with its terms;
f. The maintenance agreement shall further provide that any party responsible for complying with its terms shall not assign its ownership interest in the property or any interest in any lease, sublease, license or sublicense, unless the prospective assignee agrees in writing to assume all of the duties, obligations and responsibilities set forth under the maintenance agreement; and
g. The maintenance agreement shall contain provisions relating to the enforcement of its conditions by the City and shall also contain provisions authorizing the City to recover costs and expenses which the City may incur arising out of any enforcement and/or remediation efforts which the City may undertake in order to cure any deficiency in maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of the property. The maintenance agreement shall further provide that any unreimbursed costs and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use restrictions shall become a lien upon the property in an amount equivalent to the actual costs and/or expense incurred by the City.

City Council 28 – 266 8/6/2024

EXHIBIT B
Conditions of Approval for Conditional Use Permit No. 2005-22-MOD-1 Conditional Use Permit No. 2005-22-MOD-1 to allow the off-premise consumption of alcoholic beverages is approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with all applicable sections of the Santa Ana Municipal Code (“SAMC”), the California Building Standards Code, and all other applicable regulations.

The Applicant/ Licensee (hereinafter, “Applicant”) shall comply with each and every operational standard listed below, pursuant to SAMC Section 41-196(f), in order to exercise the rights conferred by this conditional use permit. Pursuant to SAMC Section 41-196(f), these SAMC operational standards are reprinted to establish compliance with SAMC requirements for the granting of a Conditional Use Permit for on-premises alcoholic beverage sales.

The Applicant must remain in compliance with all operational standards listed below throughout the life of the conditional use permit. Failure to comply with each and every operational standard may result in the revocation of the conditional use permit.

1. No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the licensee.

2. The applicant shall be responsible for maintaining free of litter the area adjacent to the premises over which he or she has control.

3. There shall be no exterior advertising of any kind or type, including window signs or other signs visible from outside, promoting or indicating the availability of alcoholic beverages on the premises.

4. There shall be no coin-operated games maintained on the premises at any time.

5. All public telephones shall be located on the interior of the premises.

6. Any graffiti painted or marked upon the premises or on any adjacent area under the control of the applicant shall be removed or painted over within twenty-four (24) hours of being applied.

7. The applicant shall post a placard prohibiting loitering, pursuant to California Penal Code ("CPC") Section 602, on the exterior of the premises.

8. It shall be the applicant's responsibility to ensure that CPC Section 602 is complied with at all times that the premises are in operation.

City Council 28 – 267 8/6/2024

9. The applicant shall at all times utilize an age verification device for all purchases of alcoholic beverages.

10. The owner or manager of the licensed premises shall maintain on the premises a written security policy and procedures manual, that has been approved by the Police Department, addressing at a minimum the following items; handling obviously intoxicated persons; establishing a reasonable ratio of employees to patrons, based upon activity level, in order to monitor beverage sales and patron behavior; handling patrons involved in fighting, arguing or loitering about the building and in the immediate adjacent area that is owned, leased, rented or used under agreement by the licensee(s); verifying age/checking identification of patrons; calling the police regarding observed or reported criminal activity.

11. If there is a marked or noticeable increase in the number of police-related incidents on or near the premises, as such increase may be determined by the chief of police, the applicant may be required to provide state-licensed, uniformed security guards at a number determined by the chief of police.

12. All managers and employees selling alcoholic beverages shall undergo and successfully complete a certified training program in responsible methods and skills for selling alcoholic beverages. The California Department of Alcoholic Beverage Control must approve said training program. Records of each employee's successful completion of the certified training program required by this section shall be maintained on the premises of the alcoholic beverage outlet and shall be presented upon request by a representative of the City of Santa Ana.

13. Alcoholic beverages in containers of less than sixteen (16) ounces cannot be sold by single containers, but must be sold in pre-packaged multi-unit quantities.

14. The sales of alcoholic beverages shall be permitted only between the hours of 7:00 a.m. and 12:00/midnight each day of the week unless otherwise modified by the granting of an after-hours conditional use permit.

15. Existing building and required parking must conform to the provisions of Chapter 8, Article II, Division 3 of the Santa Ana Municipal Code (building security ordinance). These code conditions will require that the existing project lighting, door/window locking devices and addressing be upgraded to current code standards. Lighting standards cannot be located in required landscape planters.

16. Cash register must be visible from the street at all times and shall not be obstructed at any time by temporary or permanent signage.

City Council 28 – 268 8/6/2024

17. Window displays must be kept to a minimum for maximum visibility and shall not exceed twenty-five (25) per cent of window coverage.

18. Window displays and racks must be kept to a maximum height of three (3) feet including merchandise.

19. A timed-access cash controller or drop safe must be installed.

20. A silent armed robbery alarm must be installed and operable at all times.

21. Clearly distinguishable height markers shall be installed on the inside door jamb of all doors used by the public to access the store. Horizontal marks, one (1) inch wide by three (3) inch long, in different colors, and in a contrasting color to the background, shall be placed every six (6) inches beginning at five (5) feet and ending at six (6) feet six (6) inches.

22. No person under the age of twenty-one (21) shall sell or deliver alcoholic beverages.

23. A closed-circuit television system shall be provided and approved by the police department and shall be capable of viewing and recording events inside and outside the premises including the parking areas with a resolution which will clearly identify individuals for later identification as follows:
a) A minimum of one (1) color camera at each cash register that views the front of a customer, from the waist to the top of the head. b) A minimum of one (1) color camera that views the full length side of a customer at the cash register area.
c) A color camera recorder capable of recording events on all cameras simultaneously.
d) A tape or disc storage library of recorded cameras kept for a minimum of sixty (60) days.
e) If video tape is used, tapes cannot be taped over more than six (6) times. f) An audio recording component that will record sounds occurring at the customer counter.
g) An internet protocol (IP)-based system is required.

24. It shall be the operator's responsibility to submit a shopping cart containment plan pursuant to SAMC Section 33.210.

City Council 28 – 269 8/6/2024

25. The operator shall be responsible for obtaining all necessary permits for building tenant and freestanding signs. This shall include any window signs and temporary banners.

City Council 28 – 270 8/6/2024
CUP No. 2005-22-MOD-1 For Target
1441 West 17th Street
Exhibit 2 - Vicinity Zoning and Aerial View
City Council 28 – 271 8/6/2024
CUP No. 2005-22-MOD-1 For Target
1441 West 17th Street
Exhibit 3 - Site Photo
City Council 28 – 272 8/6/2024
CUP No. 2005-22-MOD-1 For Target
1441 West 17th Street
Exhibit 4 - Site Plan City Council 28 – 273 8/6/2024
CUP No. 2005-22-MOD-1 For Target
1441 West 17th Street
Exhibit 5 - Floor Plan
City Council 28 – 274 8/6/2024
= Census Tract Boundary
(1) Parks Dairy
(2) CVS Pharmacy
(3) Smart & Final
(4) Target
Exhibit 6 – Map of Type 21 ABC Licenses within Census Tract 753.02 CUP No. 2005-22-MOD-1 For Target
1441 West 17th Street
(1) Parks Dairy
1927 W. 17th St.
(2) CVS Pharmacy
1545 W. 17th St.
(3) Smart & Final
1523 W. 17th St.
(4) Target
1441 W. 17th St.

City Council 28 – 275 8/6/2024

O R A N G E C O U N T Y R E P O R T E R
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GPN GOVT PUBLIC NOTICE
1441 W Seventeenth St
06/28/2024
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NOTICE OF PUBLIC HEARING

BEFORE THE SANTA ANA PLANNING

COMMISSION
The City of Santa Ana encourages the
public to participate in the decisionmaking process. We encourage you to contact us prior to the Public Hearing if
you have any questions.

Planning Commission Action: The
Planning Commission will hold a Public
Hearing to receive public testimony, and
will take action on the item described
below. Decision on this matter will be final
unless appealed pursuant to Article V of
Chapter 41 of the Santa Ana Municipal
Code within 10 calendar days of the
decision by any interested party or group.

Project Location: 1441 West
Seventeenth Street located within the
General Commercial (C2) zoning district.

Project Applicant: Beth Aboulafia with
Hinman and Carmichael, LLP. and
representing Target Corporation
(Applicant/Property Owner)
Proposed Project: Applicant is
requesting approval of modification of
existing Conditional Use Permit No. 2005-
22 to allow the sale of distilled spirits, in
addition to beer and wine, for off-site
consumption at an existing Target retail
store.

Environmental Impact: Pursuant to the
California Environmental Quality Act
(CEQA), the project is categorically
exempt from further review pursuant to
Section 15301 (class 1 – Existing
Facilities) of the CEQA guidelines. A new
Notice of Exemption (NOE) will be filed for
this project.

Meeting Details: This matter will be
heard on Monday, July 8, 2024, at 5:30 p.m. in the City Council Chambers, 22 Civic Center Plaza, Santa Ana, CA 92701.

Members of the public may attend this
meeting in person or join via Zoom. For the most up-to-date information on how to participate virtually in this meeting, please
visit https://www.santa-ana.org/planningand-building-meeting-participation/.

Written Comments: If you are unable to
participate in the meeting, you may send
written comments by e-mail to
[email protected]
(reference the Agenda Item # in the
subject line) or by mail to Nuvia Ocampo,
Recording Secretary, City of Santa Ana,
20 Civic Center Plaza – M20, Santa Ana,
CA 92701. Deadline to submit written
comments is 3:30 p.m. on the day of the
meeting. Comments received after the
deadline may not be distributed to the
Commission but will be made part of the
record.

Where To Get More Information: Additional details regarding the proposed action(s), including the full text of the
discretionary item, may be found on the
City website 72 hours prior to the public
hearing at https://santaana.primegov.com/public/portal.

Who To Contact For Questions: Should you have any project questions, please contact case planner Matthew Kilroy with
the Planning Division by phone at (714)
667-2708 or by email at MKilroy@santaana.org,
Note: If you challenge the decision on the
above matter, you may be limited to
raising only those issues you or someone
else raised at the public hearing
described in this notice, or in written
correspondence delivered to the Planning
Commission or City Council of the City of
Santa Ana at, or prior to, the public
hearing.

Si tiene preguntas en español, favor de
llamar a Nuvia Ocampo (714) 667-2732.

N u c n liên l c b ng ti ng Vi t,
xin i n tho i cho Tony Lai s (714)
565-2627.
6/28/24
OR-3826731#
City Council 28 – 276 8/6/2024

CITY OF SANTA ANA
Planning and Building Agency
20 Civic Center Plaza ● P.O. Box 1988
Santa Ana, California 92702
www.santa-ana.org/pba

NOTICE OF PUBLIC HEARING

BEFORE THE SANTA ANA PLANNING COMMISSION
The City of Santa Ana encourages the public to participate in the decision-making process. This notice is being sent to those who live or own property within 1000 feet of the project site or who have expressed an interest in the proposed action. We encourage you to contact us prior to the Public Hearing if you have any questions.

Planning Commission Action: The Planning Commission will hold a Public Hearing to receive public testimony, and will take action on the item described below. Decision on this matter will be final unless appealed pursuant to Article V of Chapter 41 of the Santa Ana Municipal Code within 10 calendar days of the decision by any interested party or group.

Project Location: 1441 West Seventeenth Street located within the General Commercial (C2) zoning district.

Project Applicant: Beth Aboulafia with Hinman and Carmichael, LLP. and representing Target Corporation (Applicant/Property Owner)
Proposed Project: Applicant is requesting approval of modification of existing Conditional Use Permit No. 2005-22 to allow the sale of distilled spirits, in addition to beer and wine, for off-site consumption at an existing Target retail store.

Meeting Details: This matter will be heard on Monday, July 8, 2024, at 5:30 p.m. in the City Council Chambers, 22 Civic Center Plaza, Santa Ana, CA 92701. Members of the public may attend this meeting in person or join via Zoom. For the most up-to-date information on how to participate virtually in this meeting, please visit https://www.santa-ana.org/planning-and-building-meeting-participation/.

Written Comments: If you are unable to participate in the meeting, you may send written comments by email to [email protected] (reference the Agenda Item # in the subject line) or by mail to Nuvia Ocampo, Recording Secretary, City of Santa Ana, 20 Civic Center Plaza – M20, Santa Ana, CA 92701. Deadline to submit written comments is 3:30 p.m. on the day of the meeting. Comments received after the deadline may not be distributed to the Commission but will be made part of the record.

Where To Get More Information: Additional details regarding the proposed action(s), including the full text of the discretionary item, may be found on the City website 72 hours prior to the public hearing at https://santa-ana.primegov.com/public/portal.

Who To Contact For Questions: Should you have any project questions, please contact case planner Matthew Kilroy with the Planning Division by phone at (714) 667-2708 or by email at MKilroy@santaana.org, City Council 28 – 277 8/6/2024
Note: If you challenge the decision on the above matter, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission or City Council of the City of Santa Ana at, or prior to, the public hearing.

Si tiene preguntas en español, favor de llamar a Nuvia Ocampo (714) 667-2732.

Nếu cần liên lạc bằng tiếng Việt, xin điện thoại cho Tony Lai số (714) 565-2627. 1000’ RADIUS NOTIFICATION MAP
City Council 28 – 278 8/6/2024
City Council 28 – 279 8/6/2024
City Council 28 – 280 8/6/2024
Planning and Building Agency
July 8, 2024
Item # XX
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Planning Commission Staff Report
July 8, 2024
Topic: Conditional Use Permit No. 2012-14-MOD-1 – Target ABC License Modification (3300 South Bristol Street)

RECOMMENDED ACTION

1. Adopt a resolution approving modification to Conditional Use Permit No. 2012-14 as conditioned; and

2. Authorize staff to issue a Letter of Public Convenience or Necessity to the State Department of Alcoholic Beverage Control.

EXECUTIVE SUMMARY
Beth Aboulafia with Hinman and Carmichael, LLP., and representing Target Corporation (Applicant) and Dayton-Hudson Corporation (Property Owner), is requesting approval of a modification to Conditional Use Permit (CUP) No. 2012-14 (CUP No. 2012-14-MOD-1) and approval to make a determination of Public Convenience or Necessity (PCN) to allow the sale of distilled spirits, in addition to beer and wine, for off-premises consumption through the operation of a Type-21 Alcoholic Beverage Control (ABC) license at an existing Target retail store located at 3300 South Bristol Street. Pursuant to Section 41-196 of the Santa Ana Municipal Code (SAMC), establishments wishing to sell alcoholic beverages for off-premises consumption require approval of a CUP and, in accordance with Section 41-649 of the SAMC, a modification to a CUP requires refiling of a new application and approval by the Planning Commission. In addition, in accordance with Section 41-645.5 of the SAMC and Section 23958.4 of the Business and Professional Code, a determination of PCN is required for the proposed CUP modification. Staff is recommending approval of the applicant’s request because the site is located away from sensitive land uses and the property’s history of compliance with City codes and regulations.

Furthermore, the Target store is anticipated to serve the public’s convenience by offering a convenient one-stop, full department store experience without resulting in detrimental impacts to the surrounding neighborhood.

DISCUSSION
Project Description
The applicant is requesting approval of a modification to CUP No. 2012-14 to allow the sale of distilled spirits for off-premises consumption in addition to the existing sale of beer and wine, by upgrading from a Type-20 to a Type-21 ABC license, at an existing Target store located 3300 South Bristol Street. Target currently occupies an existing 102,960-square foot commercial building within a planned shopping center located at the southwest corner of Bristol Street and Alton Avenue. If the CUP modification request is approved, Target will upgrade the interior retail service area of the store to expand their alcohol beverage display area to approximately 358- square feet in size to allow for the additional display of distilled spirits. No additional improvements City Council 28 – 281 8/6/2024 Modification to CUP No. 2012-14 – Target ABC License Modification (3300 South Bristol Street) July 8, 2024

Page 2 of 6 ends

are being proposed at this time. The hours of operation will continue to be Monday through Sunday from 8:00 a.m. to 10:00 p.m. After-hours operations are not being requested at this time.

Table 1: Project and Location Information
Table 2: Operational Standards
Standards Permissible by SAMC Proposed
Hours of Operation for Alcohol
Sales
Monday through Sunday from
7:00 a.m. to 12:00 a.m.
(midnight), unless extended by a
separate after-hours CUP
Monday through Sunday from
8:00 a.m. to 10:00 p.m.;
Complies
Window Display 25% of Window Coverage Complies
Project Background
The project site was developed in 1985 as a Target retail store. The store was improved with a snack bar in 1986. In 2010, Target expanded their retail selection by including a market and grocery section. Throughout the years, the site has continued to be improved with the addition of roof-mounted solar equipment, electric vehicle charging stations, signage upgrades, and multiple interior tenant improvements. On August 13, 2012, the Planning Commission approved Resolution No. 2012-08, allowing the sale of beer and wine for off-premises consumption. On September 25, 2023, the applicant submitted the subject application to the Planning Division to modify the existing CUP to allow the sale of distilled spirts for off-premises consumption in order to provide an additional service to its customers and become a one-stop department store.

Target currently operates three locations in Santa Ana. The Target store located at 1300 East Seventeenth Street currently sells beer, wine, and distilled spirits for off-premises consumption as CUP No. 2023-04 was approved by the Planning Commission on April 10, 2023. At this time, the remaining Target stores located at 3300 South Bristol Street and 1441 West Seventeenth Street hold a Type-20 ABC license but are concurrently seeking approval to allow for the operation Item Information
Project Address and Council Ward 3300 South Bristol Street – Ward 4 Nearest Intersection Bristol Street and Alton Avenue
General Plan Designation District Center - Medium (DC-2) Zoning Designation Planned Shopping Center (C4)
North Single-Family Residences and Industrial
East Commercial
South Commercial
Surrounding Land Uses
West Multi-Family Residential
Property Size 7.63 acres (332,363 sq. ft.)
Existing Site Development The subject site is developed with a 102,960 sq. ft. building currently occupied by Target and Starbucks, and a surface parking lot with 485 parking spaces.

Unit Size 102,960 sq. ft.

Use Permissions Allowed with approval of a CUP
Uses SAMC sections 41-196(f),
Zoning Code Sections Affected 41-365(a), & 41-649
Operational Standards SAMC Section 41-196(f)
Census Tract No. 741.07 Census Tract and ABC License
Information No. of Allowed and Existing
Licenses (off-sale) 3 Allowed & 4 Existing
City Council 28 – 282 8/6/2024
Modification to CUP No. 2012-14 – Target ABC License Modification (3300 South Bristol Street) July 8, 2024

Page 3 of 6 ends

of a Type-21 ABC license, so all Santa Ana Targets can offer the same assortment of alcoholic beverages for off-premises consumption. Since the application was submitted, staff has been working with the applicant, ABC, Code Enforcement, and the Police Department to address any potential adverse impacts associated with the sale of alcoholic beverages for off-premises consumption.

Project Analysis
Conditional Use Permit Analysis:

If these findings can be made, then it is appropriate to grant the CUP. Conversely, the inability to make these findings would result in a denial. The purpose of regulating establishments that sell alcoholic beverages is to set forth operating practices and procedures and to minimize impacts to surrounding areas. Staff has reviewed the applicant’s modification request for the sale of alcoholic beverages for off-premises consumption and has determined that the sale of alcoholic beverages for off-premises consumption at the subject location will not be detrimental to the health, safety, and welfare of the community.

The subject property is not located in close proximity to any parks, playgrounds, or schools. The establishment will comply with the operational standards set forth in Section 41-196(f) of the SAMC, thereby mitigating impacts to public health, safety, and welfare. Lastly, the City has not received any complaints or issued any notice of violations to the property owner or previous tenants. Therefore, staff recommends approval of the proposed CUP.

Approval of the CUP will be consistent with several goals and policies of the General Plan. Policy

1.1 of the Land Use Element of the General Plan (LU-1.1) encourages development that is compatible with and supporting of surrounding land uses. A commercial establishment with primary retail at this location will be compatible with the surrounding businesses as it supports the residential environment by providing an increase to the ancillary alcohol selection within the market section already provided by Target. Target is committed to offering employment opportunities (LU-2.1) for the surrounding community, and with an increase to the market section, more opportunities are provided. The community will benefit both from the convenience of having access to an increase in product selection that is within walking distance from the surrounding neighborhood (LU-3.1 and 4.1), and by alcohol being sold at an established department store that is in sound compliance with all local and State ABC regulations. The proposed Target operations are consistent with Policy LU-3.7 that calls for promoting a balance of land uses to address basic community needs, while maintain a clean and safe environment for Santa Ana’s residents, workers, and visitors. Furthermore, Policy LU-2.2 encourages a range of commercial uses to City Council 28 – 283 8/6/2024
Modification to CUP No. 2012-14 – Target ABC License Modification (3300 South Bristol Street) July 8, 2024

Page 4 of 6 ends

capture a greater share of local spending. The sale of alcohol beverages for off-premises consumption at this site will provide an additional location in Santa Ana where residents can purchase alcohol which will ensure local spending.

Public Convenience or Necessity Analysis:

It is important to note that, if CUP No. 2012-14-MOD-1 is approved, the existing Type-20 ABC license currently being operated by Target will be surrendered once the Type-21 ABC license is approved and processed by ABC and the Census Tract will continue to have a total of four ABC licenses. Table 3 below and Exhibit 6 identify the location of the existing off-premises alcohol licenses. The licensed establishments are located intermittently throughout the census tract, with the closest licensed premises (7-Eleven), approximately 0.4 miles from Target.

Table 3: Off-Premises ABC Licenses within Census Tract No. 741.07 Premises Location License Type Distance
(1) Target 3300 South Bristol Street Type 20 0.1 miles
(2) 7-Eleven 1441 W. MacArthur Boulevard Type 20 0.4 miles (3) Vons 3650 South Bristol Street Type 21 0.5 miles
(4) World Market 1313 Sunflower Avenue Type 21 1.0 miles PCN requests are governed by Section 41-645.5 of the SAMC, and certain findings must be made in order to grant the PCN. Conversely, the inability to make these findings would result in a denial.

Target has demonstrated civic participation by taking additional steps to seek community input via substantial notification efforts to the surrounding neighborhood. Target and staff both contacted the representatives of the South Coast, Republic Homes, and Metro Classic neighborhood associations to identify any areas of concerns due to the proposed application request, and no objections were received. Target will mitigate any potential detrimental effects, should any arise, by enforcing policies protocols, and alcohol-related training initiatives, to ensure that alcohol sales are handled in a responsible manner to deter crime, loitering, and any other activity that could be detrimental to the surrounding community. The addition of distilled spirits would add a substantial convenience to the surrounding community by adding to the food options at the existing market section of the store. The ability to purchase alcoholic beverages with other grocery items will offer customers a more complete shopping experience and will provide a service to Target customers by eliminating the need for an additional shopping trip to other offsale alcoholic beverage establishments nearby.

Page 5 of 6 ends

beverages from its department stores. Although there are other establishments selling alcoholic beverages for off-premises consumption nearby, none of those establishments offer the same complete department store shopping opportunities as Target. The addition of alcoholic beverages for off-premises consumption at this Target location ensures the store will remain economically viable and that it offer a full selection of items that grocery customers expect. Because of this, staff recommends that the Planning Commission grant a determination of PCN and authorize staff to issue a Letter of PCN to ABC.

Police Department Analysis:

Table 4: Police Department Analysis and Criteria for Recommendation Police Department Analysis and Criteria for Recommendation Police Grid No. and
Rank
Police Grid No. 130; ranked 26 out of 102 Police Reporting Grids (25th percentile).

City Council 28 – 285 8/6/2024
Modification to CUP No. 2012-14 – Target ABC License Modification (3300 South Bristol Street) July 8, 2024

Page 6 of 6 ends

Public Notification and Community Outreach
Project notifications were posted, published, and mailed in accordance with City and State regulations. Copies of the public notice, including a 1,000-foot notification radius map, and the site posting are provided in Exhibit 6. As part of the community outreach, Target and staff both contacted representatives of South Coast, Republic Homes, and Metro Classic neighborhood associations were contacted to identify any areas of concerns due to the proposed application request. At the time this report was printed, no issues of concern were raised regarding the proposed CUP.

ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is categorically exempt from further review pursuant to Section 15301 (Class 1 – Existing Facilities) of the CEQA Guidelines. Class 1 exemption applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use as determined by the lead agency. The project proposes to modify an existing CUP to allow the sale of distilled spirits, in addition to beer and wine, for offpremises consumption at an existing Target store located at 3300 South Bristol Street. As such, a new Notice of Exemption (NOE) will be filed for this project.

FISCAL IMPACT
There is no fiscal impact associated with this action.

EXHIBIT(S)

1. Resolution for CUP No. 2012-14-MOD-1

2. Vicinity Zoning and Aerial View

3. Site Photo

4. Site Plan

5. Floor Plan

6. Map of Off-Premises ABC Licenses within Census Tract No. 741.07

7. Copy of Public Notices
Submitted By:

Matthew Kilroy, Assistant Planner I
Approved By:

Minh Thai, Executive Director of Planning and Building Agency City Council 28 – 286 8/6/2024
Resolution No. 2024-XXX

Page 1 of 7 ends

RESOLUTION NO. 2024-XXX

A RESOLUTION OF THE PLANNING COMMISSION OF THE

CITY OF SANTA ANA APPROVING A MODIFICATION TO
CONDITIONAL USE PERMIT NO. 2012-14 (CUP NO. 2012-14-
MOD-1) AS CONDITIONED AND MAKING A DETERMINATION

OF PUBLIC CONVENIENCE OR NECESSITY TO ALLOW THE

SALE OF DISTILLED SPIRITS, IN ADDITION TO BEER AND

WINE, FOR OFF-PREMISES CONSUMPTION FOR THE
TARGET STORE LOCATED AT 3300 SOUTH BRISTOL
STREET

BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1. The Planning Commission of the City of Santa Ana hereby finds, determines, and declares as follows:

A. Beth Aboulafia with Hinman and Carmichael, LLP., representing Target Corporation (“Applicant”) and Dayton-Hudson Corporation (“Property Owner”), is requesting approval of a modification to Conditional Use Permit (“CUP”) No. 2012-14 (“CUP No. 2012-14-MOD-1”) to modify an existing CUP and approval to make a determination of Public Convenience or Necessity (“PCN”) to allow the sale of distilled spirits, in addition to beer and wine, for off-premises consumption at an existing Target store located at 3300 South Bristol Street.

B. Santa Ana Municipal Code (“SAMC”) Section 41-196 requires approval of a CUP for establishments wishing to sell alcoholic beverages for off-premises consumption.

C. SAMC Section 41-649 requires approval of a modification of an approved CUP.

D. On August 13, 2012, the Planning Commission adopted Resolution No. 2012- 08 approving CUP NO. 2012-14 allowing the sale of beer and wine for offpremises consumption at 3300 South Bristol Street.

E. SAMC Section 41-645.5 and California Business and Professions Code Section 23958.4, requires a determination of PCN when a request for the sale of alcoholic beverages for off-premises consumption is located within an area deemed to have an undue concentration of off-premises alcohol licenses as determined by the Department of Alcoholic Beverage Control (“ABC”).

F. On July 8, 2024, the Planning Commission held a duly noticed public hearing for CUP No. 2012-14-MOD-1.

G. The Planning Commission of the City of Santa Ana determines that the following findings, which must be established in order to grant a CUP pursuant City Council 28 – 287 8/6/2024
Resolution No. 2024-XXX

Page 2 of 7 ends

to SAMC Section 41-638, have been established for CUP No. 2012-14-MOD1 to allow the sale of distilled spirits, in addition to beer and wine, for offpremises consumption at an existing Target store located at 3300 South Bristol Street:

1. That the proposed use will provide a service or facility which will contribute to the general wellbeing of the neighborhood or community.

2. That the proposed use will not, under the circumstances of the particular case, be detrimental to the health, safety, or generalwelfare of persons residing or working in the vicinity.

3. That the proposed use will not adversely affect the present economic stability or future economic development of properties surrounding the area.

The sale of distilled spirits, in addition to beer and wine, for offpremises consumption at the subject site will not adversely affect the economic stability of the area, but will instead allow Target to compete with other nearby stores that offer a full selection of alcoholic beverages for sale to their customers. The offering of alcoholic beverages for off-premises consumption will allow Target to remain economically viable and will contribute to the overall success of the City.

City Council 28 – 288 8/6/2024
Resolution No. 2024-XXX

Page 3 of 7 ends

4. That the proposed use will comply with the regulations and conditions specified in Chapter 41 (Zoning) of the SAMC for such use.

The sale of distilled spirits, in addition to beer and wine, for offpremises consumption will be in compliance with all applicable regulations and operational standards imposed on an
establishment selling alcoholic beverages for off-premises consumption pursuant to Chapter 41 of the SAMC. The
establishment will be maintained as a commercial building with primary retail, having suitable storage facilities and supplying an assortmentof essential goods. Moreover, operational standards, pursuant to Section 41-196(f) of the SAMC, and conditions of approval, will ensure the establishment remains in compliance with all applicable codes andregulations related to alcohol sales to ensure that the use does not impact neighboring properties or create an attractive nuisance.

5. That the proposed use will not adversely affect the General Plan of the city or any specific plan applicable to the area of the proposed use.

The sale of distilled spirits, in addition to beer and wine, offpremises consumption at the subject site will not adversely affect theGeneral Plan or any specific plan. The granting of CUP No. 2012-14-MOD-1 supports several policies contained in the General Plan. Policy 2.2 of the Land Use Element (LU)
encourages a range of commercial uses to capture a greater share of local spending and employment opportunities. The sale of alcoholic beverages at the subject site will provide Target’s customers with a one-stop store service which will contribute to capturing local spending. Policy LU-2.7 supports land use decisions that encourage the creation, development, and retention of
businesses in Santa Ana. The granting of CUP No. 2012-14- MOD-1 will ensure Target remains competitive with other stores offering similar services in other cities, therefore ensuring Target’s retention in Santa Ana. Lastly, Policy LU-4.1 encourages complete neighborhoods by creating a mix of complementary uses, community services, and places within a walkable area.

The additional sales of distilled spirits for off-premises consumption will create a one-stop store within walking distance for residents residing in the general vicinity of Target.

H. The Planning Commission of the City of Santa Ana determines that the following findings, which must be established in order to determine a PCN pursuant to SAMC Section 41-645.5, have been established for CUP No. 2012-14-MOD-1 to allow the sale of distilled spirits, in addition to beer and wine, for off-premises consumption at an existing Target store located at 3300 South Bristol Street:

City Council 28 – 289 8/6/2024
Resolution No. 2024-XXX

Page 4 of 7 ends

1. The proposed use will not be detrimental to the character of development in the immediate neighborhood and will be in harmony with the overall objectives of the General Plan.

The sale of distilled spirits, in addition to beer and wine, for off-premises consumption will not be detrimental to the character of development in the immediate neighborhood. Target is a full-scale department store located in an integrated shopping center that is designed to minimize intrusion into surrounding neighborhoods. The primary entrance to the store is located on the east side of the building and faces away from the multi-family residential development to the west. Moreover, operational standards applicable to the ABC license and conditions of approval will mitigate any potential impacts created by the use and will ensure that the use will not negatively affect the immediate neighborhood. The granting of CUP No. 2012-14-MOD-1 will be in harmony with the overall objective of the General Plan as stated in Section 1.G.5. above.

2. The economic benefit outweighs the negative impacts to the community as whole.

The economic benefit associated with the sale of distilled spirits, in addition to beer and wine, for off-premises consumption at the subject site will outweigh any potential negative impacts to the community as a whole. The sale of distilled spirits, in addition to beer and wine, for offpremises consumption will positively affect the economic welfare of the community by adding a service to an existing department store with grocery store located within its existing operations. The additional service will offer additional community services at an existing department store with its own policies and standards for the sale of alcoholic beverages, which complement policies and standards imposed by State ABC, and generates additional sale tax revenue for the City.

3. The issuance of the license will provide a needed service not currently being met in the community.

The sale of distilled spirits, in addition to beer and wine, for off-premises consumption at the subject site will provide a needed service not currently being met at the subject department store. A significant component of the Target store is its market section. The market section offers a full-range of grocery products, including fresh meats and produce, along with a variety of dry goods. The ability to purchase alcoholic beverages with other grocery items will offer customers a more complete shopping experience and will provide a service to Target City Council 28 – 290 8/6/2024
Resolution No. 2024-XXX

Page 5 of 7 ends

customers by eliminating the need for an additional shopping trip to other off-sale alcoholic beverage establishments nearby.

4. There exist special and unusual circumstances present here to justify a new retail alcohol outlet when there are already similar alcohol uses existing nearby.

Target will provide its shoppers with a broad selection of goods and merchandise in a one-stop store service. The sale of distilled spirits, in addition to beer and wine, for off-premises consumption at the subject location will add an additional convenience to the broad selection of goods and merchandise, which includes a mix of grocery items, apparel and accessories, health and beauty products, home decor items, baby products, toys and electronics and other every-day essentials, that Target already provides to the community. Although there are other establishments selling alcoholic beverages for off-site consumption on other properties in the vicinity, none of those establishments offer the same shopping opportunities as Target in a one-stop, department store location, which will assist in creating an inclusive and economically diverse neighborhood.

5. The business cannot operate profitably without a liquor license.

Over 95-percent of Target stores in California sell alcoholic beverages for off-premises consumption as part of the company’s grocery offerings. The addition of alcoholic beverages for off-premises consumption at this Target location ensures the store will remain economically viable and that it offer a full selection of items that grocery customers expect.

6. The applicant has demonstrated reasonable efforts to seek community input.

Target and staff both contacted the representatives of the South Coast, Republic Homes, and Metro Classic neighborhood associations to identify any areas of concerns due to the proposed application request and no objections were received. Target will continue to seek community input and coordinate with the community to first identify and then resolve any issues should they arise.

City Council 28 – 291 8/6/2024
Resolution No. 2024-XXX

Page 6 of 7 ends

Section 2. In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is categorically exempt from further review pursuant to Section 15301 (Class 1 – Existing Facilities) of the CEQA Guidelines. Class 1 exemption applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use as determined by the lead agency. The project proposes to modify an existing CUP to allow the sale of distilled spirits, in addition to beer and wine, for off-premises consumption at an existing Target store located at 3300 South Bristol Street. As such, a new Notice of Exemption (NOE) will be filed for this project.

Section 3. The Applicant shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, referendum, and other proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively “Actions”), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the project, whether such Actions are brought under the Ralph M. BrownAct, California Environmental Quality Act, the Planning and Zoning Law, the SubdivisionMap Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state orlocal constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve the legal counsel providing the City’s defense, and that Applicant shall reimbursethe City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Applicant of any Action brought and City shall cooperate with Applicant in the defense of the Action.

Section 4. The Planning Commission of the City of Santa Ana, after conducting the public hearing, hereby approves Modification No. 1 to Conditional Use Permit No. 2012-14, as conditioned in Exhibit A, and in Exhibit B, Operational Standards for Off-Sale Establishments, attached hereto and incorporated herein, and grants the request for determination of Public Convenience or Necessity to allow the sale of distilled spirits, in addition to beer and wine, for off-premises consumption at an existing Target store located at 3300 South Bristol Street.

This decision is based upon the evidence submitted at the above-referenced hearing, including but not limited to: The Request for Planning Commission Action dated July 8, 2024, and exhibits attached thereto; and the public testimony, written and oral,all of which are incorporated herein by this reference.
[Signatures on the following page]
City Council 28 – 292 8/6/2024
Resolution No. 2024-XXX

Page 7 of 7 ends

ADOPTED this 8th day of July 2024 by the following vote.

AYES: Commissioners:

NOES: Commissioners:

ABSENT: Commissioners:

ABSTENTIONS: Commissioners:

Bao Pham
Chairperson
APPROVED AS TO FORM:

Sonia R. Carvalho, City Attorney
By:

Jose Montoya
Assistant City Attorney

Date:

Recording Secretary
City of Santa Ana
City Council 28 – 293 8/6/2024

EXHIBIT A
Conditions of Approval for Conditional Use Permit No. 2012-14-MOD-1 Conditional Use Permit No. 2012-14-MOD-1 to allow the sale of distilled spirits, in addition to beer and wine, for off- premises consumption is approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with all applicable sections of the Santa Ana Municipal Code, the California Administrative Code, the California Building Standards Code, and all other applicable regulations.

The Applicant/Licensee (hereinafter, “Applicant”) shall comply with each and every condition listed below in order to exercise the rights conferred by this conditional use permit.

4. The Planning Division shall review Conditional Use Permit No. 2012-14-MOD-1 no later than twelve (12) months after full execution of this conditional use permit. Should any issues arise during such review, the Conditional Use Permit shall be scheduled for public hearing at the applicant’s full expense for condition modification(s).

5. Violations of the Conditional Use Permit, as contained in Section 41-647.5 of the SAMC, will be grounds for permit revocation and/or suspension as described in Section 41-651 of the SAMC.

6. Prior to the release of this resolution, the applicant shall conduct the following site improvements:

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a. All missing or dead landscape located around the Target building and throughout the entire site shall be rehabilitated, including, but not limited to, rehabilitation along the western perimeter wall and along Alton Avenue.

Applicant shall rehabilitate landscape and contact the Case Planner for a final walk-through inspection of the site.
b. All unpermitted storage containers located to the east of the property shall be removed.

8. The contact information for onsite management shall be posted in a prominent location at the primary entrance to the business to allow prompt reporting of any site issues.

9. Prior to the release of this resolution, a Property Maintenance Agreement shall be recorded against the property. The agreement will be subject to review and applicability by the Planning and Building Agency, the CommunityDevelopment Agency, the Public Works Agency, and the City Attorney to ensure that the property and all improvements located thereupon are properly maintained.Applicant (and the owner of the property upon which the authorized use and/or authorized improvements are located if different from the Applicant) shall execute a maintenance agreement with the City of Santa Ana which shall be recorded against the property and which shall be in a form reasonably satisfactory to the City Attorney.

The maintenance agreement shall contain covenants, conditions and restrictions relating to the following:
a. Compliance with operational conditions applicable during any period(s) of construction or major repair (e.g., proper screening and securing of the construction site; implementation of proper erosion control, dust control and noise mitigation measure; adherence to approved project phasing etc.); b. Compliance with ongoing operational conditions, requirements and restrictions, as applicable (including but not limited to hours of operation, security requirements, the proper storage and disposal of trash and debris, enforcement of the parking management plan, and/or restrictions on certain uses);
c. Ongoing compliance with approved design and construction parameters, signage parameters and restrictions as well as landscape designs, as applicable;
d. Ongoing maintenance, repair and upkeep of the property and all improvements located thereupon (including but not limited to controls on the proliferation of trash and debris on or about the property; the proper and City Council 28 – 295 8/6/2024
timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly accessible bathrooms and bathroom fixtures, landscaping and related landscape improvements and the like, as applicable);
e. If Applicant and the owner of the property are different (e.g., if the Applicantis a tenant or licensee of the property or any portion thereof), both the Applicant and the owner of the property shall be signatories to the maintenance agreement and both shall be jointly and severally liable for compliance with its terms;
f. The maintenance agreement shall further provide that any party responsiblefor complying with its terms shall not assign its ownership interest in the property or any interest in any lease, sublease, license or sublicense, unless the prospective assignee agrees in writing to assume all of the duties, obligations and responsibilities set forth under the maintenance agreement; and g. The maintenance agreement shall contain provisions relating to the enforcement of its conditions by the City and shall also contain provisions authorizing the City to recover costs and expenses which the City may incur arising out of any enforcement and/or remediation efforts which the City may undertake in order to cure any deficiency in maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of the property. The maintenance agreement shall further provide that any unreimbursed costs and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use restrictions shall become a lien upon the property in an amount equivalent to the actual costs and/or expense incurred by the City.

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EXHIBIT B
Conditions of Approval for Conditional Use Permit No. 2012-14-MOD-1 Conditional Use Permit No. 2012-14-MOD-1 to allow the off-premise consumption of alcoholic beverages is approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with all applicable sections of the Santa Ana Municipal Code (“SAMC”), the California Building Standards Code, and all other applicable regulations.

The Applicant/ Licensee (hereinafter, “Applicant”) shall comply with each and every operational standard listed below, pursuant to SAMC Section 41-196(f), in order to exercise the rights conferred by this conditional use permit. Pursuant to SAMC Section 41- 196(f), these SAMC operational standards are reprinted to establish compliance with SAMC requirements for the granting of a Conditional Use Permit for on-premises alcoholic beverage sales.