Planning and Building Agency
www.santa-ana.org/planning-and-building
Item # 29
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 19, 2024
TOPIC: The Madison Mixed-Use Development Project Located at 200 North Cabrillo Park Drive
AGENDA TITLE
Third One-Year Extension of Site Plan Review No. 2016-03 and Variance Nos. 2017-05 and 2017-06 for The Madison Mixed-Use Development Project Located at 200 North Cabrillo Park Drive
RECOMMENDED ACTION
1. Adopt a resolution approving a third and final one-year extension of Site Plan Review No. 2016-03, Variance No. 2017-05, and Variance No. 2017-06 to December 31, 2025.
RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA ANA APPROVING A THIRD ONE-YEAR EXTENSION OF SITE PLAN REVIEW NO. 2016-03, VARIANCE NO. 2017-05, AND VARIANCE NO. 2017-06 FOR THE MADISON MIXED-USE DEVELOPMENT LOCATED AT 200 NORTH CABRILLO PARK DRIVE
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 June 5, 2018, the City Council approved Appeal No. 2017-05, overturning the Planning Commission denial of Site Plan Review No. 2016-03, Variance No. 2017-05, and Variance No. 2017-06. This decision allowed for a reduction in parking and increased side yard setback, which facilitated the construction of a seven-story mixed-
The Madison Mixed-Use Development Project Located at 200 North Cabrillo Park Drive November 19, 2024
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use development project with up to 260 units for the property located at 200 North Cabrillo Park Drive.
Pursuant to Section 41-647 of the Santa Ana Municipal Code (SAMC), entitlements such as variances automatically become void should the property owner fail to execute the entitlements within two years of its approval. However, this section also allows the property owner to request an extension of the entitlement up to a period of three years from the date of the expiration.
The initial entitlements were set to expire on June 5, 2020. This date was then extended to December 31, 2022, because of the state of local emergency declared stemming from the COVID-19 pandemic. Due to challenges in securing funding, labor, and construction materials, as well as the impact of increased interest rates, the applicant requested the first one-year entitlement extension on December 6, 2022, extending the entitlements through December 31, 2023 (Exhibit 3). On November 21, 2023, the City Council granted a second one-year extension, extending the entitlements to December 31, 2024 (Exhibit 4).
The applicant submitted construction drawings into building plan check on August 14, 2022. However, the plan check expired August 10, 2023 due to delays in securing financing, which was largely the result of high interest rates and slowdown in the investment market. To proceed with a new building plan check and obtaining the required building permits, the applicant would be required to update the plans to meet the current building codes (2022).
Analysis
The applicant had made significant progress in the plan check process and was on track to pull permits by the end of 2024. However, the project was severely impacted by challenging market conditions, including rising interest rates and a slowdown in the investment market. These factors made securing financing increasingly difficult, which in turn caused delays in moving the project forward. As a result, the applicant was unable to pull permits before the plan check expired.
With the expiration of the plan check, the applicant is now required to submit a new set of detailed drawings that comply with the current building code, which has introduced further delays. Updating the plans to meet the latest code requirements requires additional time and resources, further stretching the timeline for the start of construction of the project. The extended delay due to financing difficulties, combined with the need to restart the plan check process, has led the applicant to request a third and final one- year extension through December 31, 2025, in accordance with Section 41-647 of the SAMC. If the entitlement extension is approved, and if the new plan check process is completed, the applicant has indicated an intent to commence construction of the project by September of 2025.
The Madison Mixed-Use Development Project Located at 200 North Cabrillo Park Drive November 19, 2024
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The Planning Division continues to support this request, aligning with its policy of recommending one-year extensions at a time to encourage timely project development.
This final one-year extension would allow the applicant the opportunity to overcome current obstacles, pull permits, and commence construction in compliance with the extended entitlement period.
ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act, the approval of the time extension is exempt from CEQA per Section 15061(b)(3). This determination has been made as it has been determined that the proposed action to extend the existing, approved entitlement does not have the potential to cause a significant effect on the environment, as the existing, approved entitlement has already been evaluated pursuant to CEQA.
FISCAL IMPACT
There is no fiscal impact associated with this action.
EXHIBIT(S)
1. Resolution Approving the Third One-Year Extension
2. Original Resolution Approving Entitlement (No. 2018-038)
3. Resolution Approving First One-Year Extension (No. 2022-092)
4. Resolution Approving Second One-Year Extension (No. 2023-082)
5. Full project plans
Submitted By: Minh Thai, Executive Director of the Planning and Building Agency Approved By: Alvaro Nuñez, City Manager