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CC Resolution 9310 CITY COUNCIL OF THE CITY OF CAMPBELL RESOLUTION NO. 9310 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AUTHORIZING EXECUTION OF A FIRST AMENDED AND REST A TED DISPOSITION AND DEVELOPMENT AGREEMENT WITH WT A CAMPBELL TECHNOLOGY PARK LLC, MAKING SPECIFIED FINDINGS, AND STATING OVERRIDING CONSIDERA nONS IN THE CONSIDERATION OF A PROJECT TO REDEVELOP THE FORMER WINCHESTER DRIVE-IN SITE RESOLVED, by the City Council (the "City Council") of the City of Campbell (the "City"), that: WHEREAS, the City of Campbell Redevelopment Agency (the "Agency") is responsible for redevelopment of the Central Campbell Redevelopment Project Area (the "Project Area") pursuant to the Second Amended and Restated Central Campbell Redevelopment Plan (the "Plan"), as amended; and WHEREAS, the City Council and Agency took joint action on January 7, 1997 in authorizing execution of the disposition and development agreement (the "Original DDA") to develop the entire 23.5 acre former Winchester Drive-In Site (the "Property") which constitutes one of the most underutilized and blighted properties in the Project Area; and WHEREAS, on June 17, 1997 the City Council, in its consideration of the planning approvals contemplated under the Original DDA (the "Original Project") with Campbell Technology park LLC (the "Developer") requested that the Developer redesign the Original Project to accommodate a four acre public open space; and WHEREAS, the Agency desires to cause redevelopment of a19.58 acre parcel of the Property (the "Site") through the construction of a 280,000 square foot high-end research and development business park (the "Project") and four acres of public open space; and WHEREAS, the Agency desires to enter into a First Amended and Restated Disposition and Development Agreement (the "DDA") with the Developer, substantially in the form on file with the City Clerk, under which the Developer would agree to develop the Project on the Site; and WHEREAS, redevelopment of the Property pursuant to the DDA would serve major Redevelopment Plan goals and objectives by directly redeveloping an underutilized and blighted property, enhancing the physical environment of the Project Area, and generating sale proceeds in excess of Agency acquisition and improvement costs that can provide a valuable supplement to tax increment revenue in accelerating the redevelopment program; and WHEREAS, the DDA provides for disposition of the Site to the Developer only if the 1 City, in its discretion, grants specified land use entitlements (the "Planning Approvals") including making specified changes in the City's General Plan; and WHEREAS, the Agency has placed on file a copy of the DDA and the summary called for in Health and Safety Code Section 33433 (the "Section 33433 Summary"), and has made the DDA and the Section 33433 Summary available for public inspection and copying pursuant to Health and Safety Code Section 33433; and WHEREAS, the City Council and the Agency have conducted a duly noticed public hearing on the DDA pursuant to Health and Safety Code Section 33433 for the purpose of receiving the input and comments of the public on the DDA; and WHEREAS, under the DDA the Agency would pay all or a part of the cost of the installation and construction of certain publicly owned storm drain improvements on the Site and certain public open space improvements within the Project Area collectively (the "Public Improvements"); and WHEREAS, the City Council has made the findings required by Health and Safety Code Sections 33433 and 33445, and 33421.1 and has granted the consents required by Health and Safety Code Sections 33433 and 33421.1, in connection with Agency approval of the DDA; and WHEREAS, the Agency and the City Council have caused preparation of an environmental impact report, including a Supplemental Environmental Impact Report (the" 1996 SEIR") and an Addendum (dated October, 1997), in accordance with the California Environmental Quality Act ("CEQA"), the State CEQA Guidelines, and the Local CEQA Implementing Guidelines, and the 1996 SEIR and Addendum have been certified by the Agency and the City Council in connection with consideration of the DDA; and WHEREAS, this Resolution includes the attached Exhibit A, consisting of findings and a statement of overriding considerations; and WHEREAS, by staff report accompanying this Resolution and incorporated into this Resolution by this reference (the "Staff Report"), the City Council has been provided with additional information upon which the findings and actions set forth in this Resolution are based. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. The City Council finds that above recitals and the information contained in Exhibit A are accurate. 2. The City Council hereby makes the findings and declares the statement of overriding considerations set forth in detail in the attached Exhibit A. The statements, findings and determinations set forth in Exhibit A are based on the certified 1996 SEIR, the Addendum and other information available to the City Council, and are made in compliance with Sections 15092 and 15093 of the State CEQA Guidelines and Section 21081(b) ofCEQA. 2 3. Pursuant to Health and Safety Code Section 33433, the City Council hereby finds that the consideration to be given by the Developer under the DDA is not less than the fair reuse value of the Site in at the use and with the covenants, conditions and development costs authorized by the DDA. This finding is based on the facts and analysis set forth in the Section 33433 Summary and the Staff Report accompanying this Resolution, and synopsized as follows: a. The Section 33433 Summary contains a reuse appraisal documenting the fair reuse value of the Site under uses and terms of the DDA is $7,500,000; and b. The sale price of the Site to the Developer under the DDA is $7,500,000 all cash, equally the documented fair reuse value. 4. Pursuant to Health and Safety Code Section 33433, the City Council hereby finds that the conveyance of the Site pursuant to the DDA will assist in the elimination of blight in the Project Area and is consistent with the implementation plan adopted pursuant to Health and Safety Code Section 33490. These findings are based on the facts and analysis set forth in the Section 33433 Summary and the Staff Report accompanying this Resolution, which may be briefly synopsized as follows: a. The Redevelopment Plan documentation identified the lack of private sector utilization of, and investment in the Property over the last 15 years as the most critical blighting condition in the McGlincey Lane portion of the Project Area, and identified related blighting conditions affecting nearby McGlincey Lane properties. b. Redevelopment of the Property is expressly designated as both a key objective and key program in the Agency's five year implementation plan (the "Implementation Plan"). c. Sale and redevelopment of the Site by the Developer in accordance with the DDA, together with Agency development of public open space on the four acre balance of the Property in accordance with the DDA, will directly eliminate blight throughout the McGlincey Lane portion of the Project Area in a manner that fulfills and is consistent with specific objectives and programs of the Implementation Plan. 5. Pursuant to Health and Safety Code Section 33433, the City Council hereby approves the DDA and all ancillary documents; approves execution by the Agency of the DDA and all ancillary documents in substantially the form on file with the City Clerk, with such changes as are approved by the Agency signatory (such approval to be conclusively evidenced by the execution of the DDA); and approves the grant of the Property by the Agency pursuant to the provisions of the DDA, including the condition that the Developer first obtain the Planning Approvals (which may be granted or denied in the City's policy discretion). 6. Pursuant to Health and Safety Code Section 33445, the City Council hereby finds that the Public Improvements are of benefit to the Project Area, no other reasonable means of financing the construction of the Public Improvements is available to the City, and payment of funds for the cost of the Public Improvements will assist in the elimination of one or more blighting conditions inside the Project Area and is consistent with the implementation plan 3 adopted pursuant to Health and Safety Code Section 33490. These findings are based on the facts and analysis set forth in the Staff Report accompanying this Resolution, which may be briefly synopsized as follows: a. The storm drain improvements will directly correct a blighting condition (lack of storm drain infrastructure impairing private reinvestment in the McGlincey Lane area) that was identified in the Redevelopment Plan documentation and called for in the Implementation Plan, thereby allowing nearby nonconforming properties to connect to the approved public system and providing benefit to the McGlincey Lane portion of the Project Area through enhanced private reinvestment opportunities. b. The development of public open space on a four acre portion of the Property, together with the redevelopment of the Site, all as provided in the DDA will eliminate blight, benefit the Project Area, and be consistent with the Implementation Plan in the manner further summarized in Section 4 of this Resolution. c. Agency funding (using proceeds of the sale of the Site) is the only reasonable means available to the community to finance the Public Improvements because: I) the City lacks resources and has not budgeted for the Public Improvements in its six year capital improvement program due to numerous competing projects; 2) nearby property owners generally lack resources to pay special assessments, taxes or fees for such Public Improvements; and 3) the Developer is already paying the highest supportable cost for purchase of the Site and completion of required on and off-site improvements, and so could not bear the additional cost burden of the Public Improvements. 7. Pursuant to Health and Safety Code Section 33421.1, the City Council hereby consents to the development ofthe Project under the DDA, including the Agency's provision of assistance for the Public Improvements, and finds that the provision of the Public Improvements is necessary to effectuate the purposes of the Redevelopment Plan. This finding is based on the facts and analysis set forth in the Staff Report accompanying this Resolution, which have already been summarized in Sections four and six of this Resolution. 8. Nothing in this Resolution shall affect the City Council's policy discretion in granting or denying the Planning Approvals. 9. This Resolution shall take immediate effect upon its adoption. 4 Passed and adopted this 18th day of November , 1997 by the following vote: AYES: NOES: COUNCILMEMBERS: Watson, Furtado, Conant COUNCILMEMBERS: Dougherty, Dean ABSENT: COUNCILMEMBERS: None :. 6-tu II -;- APPROVED: Barbara D. Conant, Mayor /. -, /~ / I . ,. //,/ ATTEST: bJVx..L' 'LA- ~Ybee, City C erk 5 1030Q8.P50 12/30/96 EXHIBIT A (CEQA Findings And Statement Of Overriding Considerations) EXHIBIT" A" STATEMENT OF OVERRIDING CONSIDERATIONS IN SUPPORT OF APPROVAL OF A FIRST AMENDED AND RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT FOR DEVELOPMENT OF THE FORMER WINCHESTER DRIVE SITE I. INTRODUCTION AND BACKGROUND Puroose. This Exhibit A sets forth the Statement of Overriding Considerations of the City of Campbell Redevelopment Agency (the "Agency") and the City of Campbell City Council (the "City Council") in compJiance with Sections 15092 and 15093 of the State CEQA Guidelines and Section 21 081 (b) of Public Resources Code in recommending approval of a First Amended and Restated Disposition and Development Agreement for the sale and development of the former Winchester Drive-I site. The project consists of development of a 280,000 square foot high-end research and developmentlbusiness park and associated on-and-off-site improvements on 19.58 acres by WTA Campbell Technology Park, LLC (the "Developer") and the designation of a four (4) acre remainder parcel for public open space (the "Project") B. The Proiect. On January 7, 1997 the City Council and Agency certified the 1996SEIR for the proposed development of 23.58 acres of the former Winchester Drive- In theater site (the "Site") for a 330,000 square foot research and development business park (the "Original Project"). On June 17, 1997 the City Council, in considering the Planning Approvals, and acting upon the recommendation of the Planning Commission, requested that the Developer submit a redesign of the Original Project to accommodate a four acre parcel for public open space. The Developer submitted a redesign of the Original Project and is now proposing the Project. The Site is located in the McGlincey Lane industrial area of the Central Campbell Redevelopment Project Area. The Project will include three, two-story buildings ranging in size from 60,000 to 100,000 square feet and one 40,000 square foot single story building, associated parking, landscaping and off- site improvements on 19.58 acres, and a designated four acre public open space parcel. The Site has been vacant for the past 15 years despite several private sector efforts. to cause its redevelopment. It is the largest and one of the most blighted parcels in the Project Area. The Agency purchased the Site in 1994 so that it could control the Site's timely redevelopment in furtherance of the goals and objectives of the Redevelopment Plan. Such timely redevelopment is viewed by the Agency as the lynch-pin to overall redevelopment of the McGlincey Lane portion of the Project Area, and is a critical element of the Agency's five-year Implementation Plan (defmed below). Exhibit A - Statement of Overriding Considerations (Winchester Drive-In Site) Page 2 C. The CEOA Process. The Agency and the City have caused preparation of a supplemental environmental impact report (SCH# 96072018) (the "1996 SEIR") pursuant to CEQA to evaluate the environmental impacts of the proposed Project and the DDA. The 1996 SEIR builds upon a 1992 environmental impact report (SCH# 91053015) (the "1992 EIR") that evaluated, among other matters, a prior proposed development of the Property . By concurrent resolution of January 7, 1997 (the "1996 SEIR Resolution"), the Agency and the City Council certified the 1996 SEIR and made fmdings regarding the impacts of the Project in accordance with CEQA and the State CEQA Guidelines. The 1996 SEIR Resolution identified one unavoidable potentially significant environmental impact of the Project as follows: The increase in concentrations of carbon monoxide at the Camden/Curtner and Union/Campbell intersections as a result of anticipated Project-related traffic would represent a significant unmitigated air quality impact because I-hour and 8-hour carbon monoxide exceedances would become worse under Project conditions. An Addendum was prepared to address the changes between the Original Project and the Project. The primary changes are a reduction in building area by 50,000 square feet and the designation of four acres for use as public open space. While the Project impacts are less significant than the Original Project due to less traffic impacts, there still exists an unavoidable potentially significant environmental impact on Air Quality. Accordingly, the City Council and Agency are making this Statement of Overriding Considerations. II. STATEMENT OF OVERRIDING CONSIDERATIONS The City Council and Agency have fully considered the discussion and analysis in the Record regarding the environmental impacts and socioeconomic effects of the Project. The City Council and Agency find that the approval and the implementation of the Project will provide significant economic, social and other benefits of the Project which override and outweigh the unavoidable significant air quality impact identified in the 1996 SEIR Resolution. The City Council and Agency further fmd that the alternatives to the Project identified in the 1992 EIR, and the 1996 SEIR Resolution are infeasible for the reasons stated therein and because such alternatives would limit the economic, social and other benefits that will be provided by the Project. Following are the specific Project benefits upon which these fmdings and statement of overriding considerations are based: A. Elimination of Bli~ht on the ProDerty. The City Council and Agency find that implementation pursuant to approval of the DDA and the granting of discretionary Planning Approvals will eliminate blight on the Property, thereby accomplishing a central purpose and achieving a primary benefit of the City's Redevelopment Plan for that area. Exhibit A - Statement of Overriding Considerations (Winchester Drive-In Site) Page 3 The Property is the largest underutilized parcel in the Project Area and, consequently, constitutes one of its most blighted properties. The Property has remained unused for 15 years despite several private sector redevelopment efforts. As summarized in the 1992 Report to Council: "Although a number of properties suffer from adverse conditions cited above, the site of the former Winchester Drive-In Theater provides the single most significant example of economic dislocation, deterioration, and disuse within the Expansion Area. This 24-acre site has abandoned, partially demolished buildings; broken projection screens; and hazardous wastes. The property also lacks satisfactory access to public streets. Repeated efforts to develop the site have failed due, in part, to the extraordinary costs associated with removing hazardous wastes and improving accessibility. Private redevelopment of this site, without public assistance in the form of redevelopment, will be difficult, if not impossible, to achieve." (1992 Report to Council, pages 111-5 and 111-6.) The Agency and City Council amended the Redevelopment Plan in 1992 in substantial part to include the Drive-In site and the remainder of the McGlincey Lane industrial area in the Project Area, so that redevelopment resources could be focused on revitalizing the Property. A basic objective of the Redevelopment Plan states that: "The Agency will facilitate economic revitalization in the McGlincey Lane area by: . . . providing assistance to a developer or developers, as necessary, in developing the former Winchester Drive-In site in a manner consistent with the General Plan . . ." (Redevelopment Plan, page 9). Likewise, the Agency's five-year Implementation Plan describes the benefit of redeveloping the Property as follows: "The Winchester Drive-In Site has sat vacant for over 1 0 years. It is difficult to develop because of the poor access to the site, substandard infrastructure to serve it and the surrounding area, and the general poor condition of the surrounding area. Its development will eliminate a large, underutilized piece of property and should prompt improvement of surrounding properties." (Implementation Plan, page 27.) To accomplish redevelopment of the Property, the Agency gained site control in 1994, arranged for the necessary hazardous materials remediation, and through the DDA will pay for storm drai~ improvements and park improvements that will facilitate revitalization of the Property and the surrounding McGlincey Lane industrial area. which the Developer is prepared to purchase and develop. The Project itself will be one of the highest quality industrial parks in the City, and will eliminate the major blighting influence described above. Exhibit A - Statement of Overriding Considerations (Winchester Drive-In Site) Page 4 B. Elimination of Blight in Remaining Proiect Area. The City Council and Agency find that implementation of the Project subject to the granting of the discretionary Planning Approvals will eliminate blight in the adjacent McGlincey Lane portion of the Project Area, thereby achieving related purposes and benefits of the Redevelopment Plan. As noted in the Implementation Plan, the McGlincey Lane area: ". . . was brought into the redevelopment project area in 1992 in order to address a host of adverse conditions in the area including dilapidated buildings, substandard infrastructure, and a number of factors inhibiting proper land utilization and development." (Implementation Plan, page 27; see also 1992 Report to Council, Section III and accompanying Report on Existing Conditions.) Several of the redevelopment objectives and programs set forth in the Redevelopment Plan and the Agency's Implementation Plan relate to revitalization of the McGlincey Lane area through Agency provision of necessary street and public improvements and other assistance to property owners (see Redevelopment Plan, Part IV.B and Implementation Plan, pages 27-28). Development of the project pursuant to the granting of the necessary Planning Approvals will provide an essential catalyst to elimination of blight and revitalization of the McGlincey Lane area in five direct ways. First, the Project will constitute a "flagship" development for the area, making clear the area's locational potential for quality industrial uses. Second, the new businesses and employees in the Project will be a source of customers for other businesses in the McGlincey Lane area and the larger Campbell community . Third, through the Disposition and Development Agreement (DDA) the Agency will generate approximately $2.1 million dollars of net sale proceeds (after taking into account acquisition costs, carrying costs, and costs of storm drain infrastructure and a public park/open space to be paid by the Agency). The net sale proceeds will provide the Agency with a vital source of immediate cash that can be reinvested in the Project Area to further other redevelopment and community goals and objectives. Fourth, by putting the Property back on the tax rolls and causing development of approximately 280,000 square feet of quality research and development facilities, the Project will annually generate approximately $50,000 of tax increment revenue for affordable housing programs and $30,000 of tax increment revenue for other activities that will further the Agency's redevelopment program for the Project Area. Finally, through the DDA and Planning Approvals, the Developer will be required to provide a range of additional intersection and utility improvements that will benefit the Exhibit A - Statement of Overriding Considerations (Winchester Drive-In Site) Page 5 entire McGlincey Lane Industrial Area. (see the 1996 SEIR Resolution, Exhibit A and Conditions of Approval for the Planned Development Permit). C. Economic Revitalization of the Proiect Area. The City Council and Agency fmd that approval of the Planning Approvals and implementation of the Project will significantly strengthen the economic base of the Project Area, offer employment opportunities to qualified local residents, generate additional spending power within Campbell to the benefit of existing and new Campbell businesses, and contribute to the appropriate balance between jobs and housing in Campbell. At buildout, the Project is expected to generate 600 new full-time employees at one or more new businesses. The jobs and businesses are expected to be at the high-end of research and development uses, thereby producing high incomes for employees and enhancing the reputation of Campbell as a place to do business. These benefits will help to fulfill economic revitalization objectives of the Redevelopment Plan (see Section IV.B.4 of the Redevelopment Plan) and the Agency's Implementation Plan, which states: "Attracting and retaining key businesses is important to the success of the redevelopment project area, as well as to the City as a whole. In order to redevelop properties and eliminate blighting conditions, the area must have a strong and successful business presence in order to attract new development." (Implementation Plan, page 28.)