City of Chino
CA

Staff Report

Review The Preserve Development Agreement Annual Monitoring Report and authorize the issuance of a Certificate of Compliance.

Information

Department:Community Development DepartmentSponsors:
Category:Report

Attachments

  1. Printout
  2. LOC DA Certificate of Compliance 2017 (This file has not yet been converted to a viewable format)
  3. Annual Monitoring Report

Budget String

Revenue: Expenditure: Transfer In: Transfer Out:

Body

BACKGROUND

In June 2004, the City entered into a Development Agreement (DA) with three entities of the Lewis Operating Company (LOC) known as Chino Development Corporation, Chino Preserve Development Corporation, and Chino Holding Company, LLC.  The Agreement was entered into to help guide the orderly development of the Agricultural Preserve Subarea 2 (The Preserve), which was envisioned as a master planned residential and commercial community.  Further, the Agreement set out the terms and conditions of development on property owned by LOC, and established the rights and obligations of LOC and the City of Chino during the course of development.

At the time of the Development Agreement approval, LOC owned or controlled 1,125 of the approximately 2,500 developable acres in The Preserve.  Since the time of the Agreement, LOC has acquired additional property for future development.

In December 2008, the City Council approved an amendment to the 2004 Development Agreement.  This amendment provided for additional units to be constructed in The Preserve and adjusted certain due dates for the development of an affordable housing project. The City Council approved a second amendment to the Development Agreement in 2013.

 

ISSUES/ANALYSIS

One provision of the Preserve Development Agreement is the requirement for an annual review of the terms and conditions of the Agreement, along with the production of an Annual Monitoring Report.  Pursuant to Article 11 of the Agreement, the Owners (LOC) are required to produce an annual monitoring report demonstrating the Owners’ compliance with the terms and conditions of the Agreement.  Upon receipt of the monitoring report, City staff is to conduct an analysis of the report to determine its accuracy, and then submit a report to the City Council indicating compliance or lack of compliance with the terms and conditions of the Agreement.  The Owners have the right to request a formal Certificate of Compliance from the City Council.

The Owners have submitted the annual monitoring report to the City, and staff has completed its analysis of the information contained in the report. Section 4.3 of the Development Agreement provided a schedule of development, that established a minimum number of residential units that LOC was required to construct and obtain occupancy on per year. The schedule started with 100 units per year in the first 10 years of the agreement, accelerating to 600 units per year in the last 10. With the unanticipated economic downturn of 2008-2010 and its impact to southern California's housing market, this schedule has not been attainable, and LOC was short approximately 240 units of their required goal on July 1, 2017.

Staff and LOC are currently working on revisions to address the schedule of development, as well as clarifications to other sections. For this reporting period, LOC is requesting that the City Council determine substantial compliance with the Development Agreement, waiving compliance with section 4.3 for the reasons stated above. The revisions will come before the City Council for approval at a future hearing.

Based on the review of the annual monitoring report, staff has determined that the Owners are in substantial compliance with the requirements of the Preserve Development Agreement for the period July 1, 2016 through June 30, 2017. LOC has requested that the City provide LOC a formal Certificate of Compliance relating to this annual review.

NL/ro

Meeting History

Oct 3, 2017 7:00 PM Video City Council Regular Meeting
draft Draft
RESULT:APPROVED [UNANIMOUS]
MOVER:Earl C. Elrod, Council Member
SECONDER:Gary George, Council Member
AYES:Gary George, Paul Rodriguez, Eunice M. Ulloa, Tom Haughey, Earl C. Elrod