Resolution No. 2024-XXX
RESOLUTION NO. 2024-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA APPROVING A THIRD ONE-YEAR
EXTENSION OF SITE PLAN REVIEW 202 0-03 AND
VARIANCE NO. 2020-06 FOR THE 4TH AND MORTIMER
MIXED-USE DEVELOPMEN T LOCATED AT 409 AND 509
EAST FOURTH STREET
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows:
A. On October 12, 2020, the Planning Commission unanimously approved Site Plan Review No. 2020 -03, for a development project over four stories in height, and Variance No. 2020 -06, to allow an increase in the allowable building size and massing, for a new mixed-use development located at 409 and 509 East Fourth Street.
B. Pursuant to SAMC Section 41 -647, when construction does not commence, these types of entitlements expire after two (2) years unless the applicant applies for, and the City Council approves, an extension. Up to three extensions may be granted.
C. Taking into considera tion the difficulties experienced by the development industry from the global COVID -19 pandemic and its effects on securing funding, labor, and construction materials , t he City Council unanimously approved Resolution No. 2022 -093, approving the applicant’s first request for a one-year entitlement extension on December 6, 2022, extending the subject project entitlements until December 15, 2023.
D. On August 1, 2023, the applicant obtained all required building permits for development of the project, including demolition permits for existing buildings at both project sites.
E. Due to increases in interest rates and their impact on construction loa ns and land development costs, t he City Council unanimously approved Resolution No. 2023 -088, approving the applicant’s second request for a one-year entitlement extension on December 5, 2023, extending the subject project entitlements until December 15, 2024.
F. In late December 2023, the applicant completed demolition of all existing onsite buildings, including the former Northgate market.
Resolution No. 2024-XXX
G. To date, the applicant has been unable to secure acceptable construction financing to start the project. This is due to high interest rates affecting construction loans and land development costs, resulting in additional delays to the proj ect’s ability to begin vertical construction. Current loan interest rates have been 300 -500 basis points above historical norms, which not only increases the cost of construction financing, but also constricts the flow of lender dollars for construction projects.
H. It is the Planning Division’s policy to recommend no more than one -year extensions at a time, mainly in an effort to encourage the construction of previously approved projects.
I. The applicant filed a reques t for the third and final one-year extension on September 27, 2024. The extension request came before the City Council on November 19, 2024.
J. 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 entitleme nt has already been evaluated pursuant to CEQA.
Section 2. Site Plan Review No. 2020-03 and Variance No. 2020-06 are each hereby extended for a period of one (1) year until December 15, 2025. This decision is based upon the evidence submitted, which includes, but is not limited to, the Request for Council Action dated November 19, 2024, and exhibits attached thereto, and any public testimony, all of which are incorporated herein by this reference.
Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this Resolution.
[Signatures on the following page]
Resolution No. 2024-XXX
ADOPTED this 19th day of November, 2024.
_______________________
Valerie Amezcua
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
By:________________________
Melissa M. Crosthwaite
Senior Assistant City Attorney
AYES: Councilmembers ___________________________________ NOES: Councilmembers ___________________________________ ABSTAIN: Councilmembers ___________________________________ NOT PRESENT: Councilmembers ___________________________________
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Jennifer L. Hall, City Clerk, do hereby attest to and certify the attached Resolution No. 2024-______ to be the original resolution adopted by the City Council of the City of Santa Ana on _______________, 2024.
Date: ____________ ________________________________
City Clerk
Resolution No. 2024-XXX
City of Santa Ana