City Council Agenda Report
Meeting Date: March 19, 2024
From: Daniel S. Wall, P.E., Director of Public Works
Department: Public Works
Submitted by: Daniel S. Wall, P.E., Director of Public Works Subject
Warehouse Development Agreement for 5764 Alcoa Avenue
Recommendation
A. Find that the ordinance is not subject to CEQA as the adoption of the ordinance is not a “project” pursuant to CEQA Guidelines Section 15302, because the proposed development consists of the replacement and reconstruction of existing facilities where the new structure will be located on the same site as the structures being replaced and will have substantially the same size, purpose, and capacity as the structures being replaced; B. Introduce and conduct first reading of Ordinance No. 1299 approving Warehouse Development Agreement No.WH-001 for Assessor Parcel Numbers 6310-005-003, 6310-005- 004, 6310-005-009, and 6310-005-010 between the City of Vernon and; and GPT Vernon Owner, LP; and
C. Direct staff to schedule second reading and adoption for the April 2, 2024 City Council meeting.
Background
GPT Vernon Owner, LP (GPT) wishes to remove existing warehouse buildings and associated structures totaling 145,950 square feet on a 7.12-acre (310,147 square feet) lot, and replace them with a single 153,000 square foot warehouse building. Municipal Code Section 17.22.035 permits warehouses on lots encompassing 150,000 square feet or more in the General Industrial Zone and all overlay zones, with the exception of the Housing Overlay Zone, subject to the approval of a development agreement between the City and the applicant and complying with all conditions in Chapter 17.22 of the Municipal Code. Municipal Code Section 17.84.060 requires a public hearing and adoption of development agreements by ordinance. Ordinances adopting development agreements do not reflect the laws of the City and are there uncodified. GPT and City Staff have negotiated a development agreement allowing the development of a 153,000 square foot warehouse at 5764 Alcoa Avenue. This project will not significantly increase traffic as it will result in a less than 5% increase in warehouse space on the site.
The Director of Public Works has reviewed the Development Agreement for conformity with Municipal Code Section 17.84.040 and finds that:
A. The Development Agreement is consistent with the General Plan Objectives, policies, land uses, and implementation programs and any other adopted plans or policies applicable to the agreement as the property is in the Industrial Zone and warehouse uses are allowed in the Industrial Zone;
B. The Development Agreement is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located, as the proposed warehouse use is replacing the existing warehouse use, and is allowed in the Industrial Zone via development agreement;
C. The Development Agreement will promote the public convenience, health, interest, safety, and general welfare of the City and will not be detrimental to or cause adverse effects to adjacent property owners, residents or the general public as this development replaces older warehouse buildings with a new more aesthetically pleasing warehouse of similar size to the existing warehouse buildings and provides a source of funds to benefit the community; D. The Development Agreement is consistent with the provisions of California Government Code Section 65864 et seq.
The Director of Public Works has reviewed the Development Agreement for conformity with Municipal Code Section 17.22.035 and finds that the proposed Development Agreement is:
1. Is consistent with the objectives, policies, general land uses and programs specified in the General Plan and any applicable specific plan as the property is in the Industrial Zone and warehouse uses are allowed in the Industrial Zone;
2. Is in conformity with and will promote public convenience, general welfare and good land use practice as the proposed development replaces older warehouse buildings with a new more aesthetically pleasing warehouse of similar size to the existing warehouse buildings and provides a source of funds in addition to warehouse parcel taxes. This project will pay to the city a community benefit fee of up to $1 million in four incremental payments to benefit the community;
3. Will not be detrimental to public health, safety or welfare as the proposed warehouse is similar in size to the existing warehouses on the site and will improve eliminate trucks backing into the property and blocking traffic through improved site design and building layout.;
4. Will not adversely affect the orderly development of property or the preservation of property values through the investment in a new building and landscaping; and
5. Will promote and encourage the development of the proposed project by providing a greater degree of requisite certainty by including a site (Exhibit B-1 to the Development Agreement), and landscape plan (Exhibit B-2 to the Development Agreement) and an elevations and materials board (Exhibit B-3).
Fiscal Impact
The construction of the new warehouse will result in General Fund net revenue of $250,000 as a condition to the issuance of a grading permit, followed by a second payment of up to $250,000 as a condition to the issuance of a certificate of occupancy for the completed building, followed by a third payment of up to $250,000 one year after the second payment, followed by a fourth payment of up to $250,000 one year after the third payment. Second, third and fourth payments may be reduced based on utility users tax payments generated by the warehouse in accordance with a formula contained in the development agreement.
Attachments
1. CEQA Memo
2. Ordinance No. 1299
3. Notice of Public Hearing