Planning and Building Agency
www.santa-ana.org/planning-and-building
Item # 24
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
October 1, 2024
TOPIC: Third Extension of Entitlements for the Central Pointe Mixed-Use Development to be Located at 1801 East Fourth Street
AGENDA TITLE
Third Extension of Site Plan Review No. 2020-04 for the Central Pointe Mixed-Use Project to be Located at 1801 East Fourth Street
RECOMMENDED ACTION
1. Adopt a resolution approving a third and final one-year extension of Site Plan Review No. 2020-04 to November 9, 2025.
RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA ANA APPROVING A ONE-YEAR EXTENSION OF SITE PLAN REVIEW NO. 2020-04 FOR THE CENTRAL POINTE MIXED-USE DEVELOPMENT TO BE LOCATED AT 1801 EAST FOURTH STREET
2. Determine that, pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the extension for this project is exempt pursuant to Section 15061(b)(3). This determination has been made as it has been determined that the proposed action to extend the existing, approved entitlement does not have the potential to cause a significant effect on the environment, as the existing, approved entitlement has already been evaluated pursuant to CEQA.
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
On November 9, 2020, the Planning Commission unanimously approved Site Plan Review (SPR) No. 2020-04 by adopting Resolution No. 2020-38 for the Central Pointe mixed-use development, which consists of 644 residential units and 15,130 square feet of commercial space for the property located at 1801 East Fourth Street in the Metro East Mixed Use (MEMU) Overlay Zone (Exhibit 2). Pursuant to Section 8.4 of the MEMU Overlay Zone document, Site Plan Review approvals must be exercised within two years of approval unless the City Council by resolution extends the date on which a MEMU Site Plan Review becomes void for a period or periods not exceeding three years.
Third Extension of Entitlements for the Central Pointe Mixed-Use Development - 1801 East Fourth Street
October 1, 2024
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The City Council approved the applicant’s first request for a one-year entitlement extension on July 19, 2022 after taking into account the of effects COVID-19 pandemic on securing funding, labor, and construction materials (Exhibit 3). The approval of the initial request extended the subject project’s entitlements until November 9, 2023. On September 19, 2023, the City Council granted a second one-year extension for the project's entitlement, extending it to November 9, 2024 (Exhibit 4). This extension was necessary as the applicant was unable complete the plan check process, obtain building permits, and begin construction before the November 9, 2023 deadline.
Analysis
As a result of the global COVID-19 pandemic, the California Legislature approved AB 1561, which extended entitlements that were effective prior to March 4, 2020, and that were set to expire before December 31, 2021. Due to the various dates of approval and expiration on November 9, 2020 and November 9, 2022, AB 1561 did not apply to the subject entitlement. Therefore, an extension by the City Council pursuant to Section 8.4 of the MEMU Overlay Zone was initially requested by the applicant and approved on July 19, 2022.
High interest rates have impacted construction loans and land development costs, resulting in ongoing delays to the project’s ability to break ground on the project by the November 9, 2024 deadline that was established by the last City Council-approved entitlement extension. The applicant was issued building permits for the first development phase of the project (325 units and 9,165 square feet of commercial space) in December 2023 and has paid the associated permit fees. However, current challenges in the capital markets for both debt and equity financing continue to impede project development. As a result, the applicant is requesting a third one-year entitlement extension to November 9, 2025 pursuant to Section 8.4 of the MEMU Overlay Zone document. In an effort to encourage construction of entitled projects, it is the Planning Division’s policy to recommend no more than one-year extensions at a time. The applicant’s request is the third and last of three permissible one-year extensions. Upon the securing of funding for the project, the applicant intends to break ground on the project to effectuate its entitlements within a timely manner. Information provide by the applicant indicates an anticipated groundbreaking by January of 2025.
Property Maintenance
The vacant site previously experienced issues with uncontrolled vegetation, site security, and illegal dumping. In response to community concerns and measures identified by the Planning and Building Agency, the applicant previously submitted and is adhering to a vacant property maintenance plan that addresses the issues stemming from the site’s ongoing vacancy. These measures include:
•Installation of a construction fence around the perimeter of the site on Fourth Street, Cabrillo Park Drive, Parkcourt Place, and tie-ins to existing fencing along the Santa Ana (I-5) Freeway.
Third Extension of Entitlements for the Central Pointe Mixed-Use Development - 1801 East Fourth Street
October 1, 2024
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•Clearing the site of overgrown vegetation and weed abatement. •Retention of a security company to conduct bi-weekly site visits to prevent illegal dumping and trespassing.
•Removal of illegally-dumped items within 24 hours of notification. •Execution of the City’s Limited Authorization for Arrest Form to enable the Police Department to better enforce trespass and violations laws.
Since submission of the vacant property maintenance plan, the project site has been generally maintained free of overgrown weeds and debris/litter. Moreover, the amount of community complaints about the subject site have significantly decreased as a result of the implementation of the vacant property maintenance plan.
Full project plans are included with this report as Exhibit 5.
ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the extension for this project is exempt pursuant to Section 15061(b)(3). This determination has been made as it has been determined that the proposed action to extend the existing, approved entitlement does not have the potential to cause a significant effect on the environment, as the existing, approved entitlement has already been evaluated pursuant to CEQA.
FISCAL IMPACT
There is no fiscal impact associated with this action.
EXHIBIT(S)
1. Resolution Approving Third One-Year Entitlement
2. Original Resolution Approving Entitlement (No. 2020-038)
3. Resolution Approving First One-Year Entitlement (No. 2022-062)
4. Resolution Approving Second One-Year Entitlement (No. 2023-061)
5. Full Project Plans
Submitted By: Minh Thai, Executive Director of the Planning and Building Agency Approved By: Alvaro Nuñez, City Manager