CC Resolution 9182
CITY COUNCIL OF THE CITY OF CAMPBELL
RESOLUTION NO. 9182
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
AUTHORIZING EXECUTION OF A DISPOSITION AND DEVELOPMENT AGREEMENT
WITH WTA CAMPBELL TECHNOLOGY PARK LLC, MAKING SPECIFIED FINDINGS,
AND STATING OVERRIDING CONSIDERATIONS 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 Project Area (the "Project Area") pursuant to the Second
Amended and Restated Central Campbell Redevelopment Plan (the
"Redevelopment Plan"), as amended; and
WHEREAS, the 23.5 acre former Winchester Drive-In site (the
"Property") constitutes one of the most underutilized and
blighted properties in the Project Area; and
WHEREAS, the Agency desires to cause redevelopment of the
Property through the construction of a high-end research and
development and light industrial business park (the "Project");
and
WHEREAS, the Agency has selected WTA Campbell Technology
Park LLC (the "Developer") to serve as the developer of the
Project on the Property; and
WHEREAS, the Agency desires to enter into a 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
Property; 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 Property to
the Developer only if the City, in its discretion, grants certain
land use entitlement (the "Planning Approvals") including making
103OQ8.PSO
12.130/96
-1-
certain changes in the City's General Plan, and if the Planning
commission makes the finding required by Government Code section
65402 regarding the disposition's conformity with 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 within the Project Area (the
"Storm Drain Improvements"); and
WHEREAS, the Agency and the City have caused preparation of
an environmental impact report, including a Supplemental
Environmental Impact Report (the "1996 SEIR"), in accordance with
the California Environmental Quality Act ("CEQA"), the State CEQA
Guidelines, and the Local CEQA Implementing Guidelines, and the
1996 SEIR has 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 and other information available to the City Council,
103OQ8.PSO
12/30/96
-2-
and are made in compliance with Sections 15092 and 15093 of the
State CEQA Guidelines and section 21081(b) of CEQA.
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 market
value of the Property at its best and highest use in accordance
with the Redevelopment Plan. This finding is based on the facts
and analysis set forth in the section 33433 Summary and the Staff
Report accompanying this Resolution.
4. Pursuant to Health and Safety Code section 33433, the
city council hereby finds that the conveyance of the Property
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.
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 Storm Drain Improvements are
of benefit to the Project Area, no other reasonable means of
financing the construction of the Storm Drain Improvements is
available to the City, and payment of funds for the cost of the
Storm Drain Improvements will assist in the elimination of one or
more blighting conditions inside 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 Staff Report
accompanying this Resolution.
7. Pursuant to Health and Safety Code section 33421.1, the
City Council hereby consents to the development of the
Development under the DDA, including the Agency's provision of
assistance for the Storm Drain Improvements, and finds that the
provision of the Storm Drain Improvements is necessary to
effectuate the purposes of the Redevelopment Plan. This finding
103OQ8.PSO
12/30/96
-3-
is based on the facts and analysis set forth in the Staff Report
accompanying this Resolution.
8. Nothing in this Resolution shall affect the city
Council's or the Planning Commission's policy discretion in
granting or denying the Planning Approvals.
9. This Resolution shall take immediate effect upon its
adoption.
Passed and adopted this 7th day of January, 1997 by the
following vote:
AYES:
COUNCILMEMBERS: Watson, Furtado, Conant
NOES:
COUNCILMEMBERS: Dougherty, Dean
ABSENT:
COUNCILMEMBERS: None
APPROVED:
~JJ2~
BARBARA CONANT, MAYOR
ATTEST:
/,- "
..~
/ /
{~ /
Anne Bybee, City Clerk
103OQ8.PSO
12/30/96
-4-
EXHIBIT A
STATEMENT OF OVERRIDING CONSIDERATIONS
IN SUPPORT OF APPROVAL OF A DISPOSITION AND
DEVELOPMENT AGREEMENT FOR REDEVELOPMENT
OF THE FORMER WINCHESTER DRIVE-IN SITE
I. INTRODUCTION AND BACKGROUND
A. Purpose. This Exhibit A sets forth the Statement of
overriding Considerations of the City of Campbell Redevelopment
Agency (the "Agency") and the City Council (the "City Council")
of the City of Campbell (the "City") in support of the approval
by the Agency, and consent (with appropriate findings under the
Community Redevelopment Law) by the City Council, of a
Disposition and Development Agreement (the "DDA") between the
Agency and WTA Campbell Technology Park LLC (the "Developer").
This Statement of Overriding Considerations is made in compliance
with the California Environmental Act ("CEQA", Public Resources
Code section 21000 et sea., with particular reference to Public
Resources Code section 21081(c)) and the State CEQA Guidelines
(14 California Code of Regulations Section 15000 et sea., with
particular reference to sections 15092 and 15093).
B. The DDA and the Proiect. The DDA provides for the sale
by the Agency to the Developer, upon specified terms and
conditions, of the approximately 23.5 acre former Winchester
Drive-In-Site (the "Property") located in McGlincey Lane
industrial area portion of the Central Campbell Redevelopment
Project Area. The sale is conditioned upon procurement by the
Developer of discretionary City land use entitlements (the
"Planning Approvals") to permit development on the Property of an
approximately 325,000 square foot high-end research and
development/business park and associated on-and off- site
improvements (the "Project"). The DDA further provides for the
Developer to develop the Project on the Property in accordance
with any Planning Approvals that may be obtained and with the
Second Amended and Restated Central Campbell Redevelopment Plan
(the "Redevelopment Plan").
The Property has been vacant for the past 14 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 Property in 1994 so that it could
control the Property'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
103OQD.PSO
12/30/96
-1-
redevelopment of the McGlincey Lane portion of the Project Area,
and is a critical element of the Agency's five-year
Implementation Plan (defined below) .
C. The CEOA Process. The Agency and the City have caused
preparation of a supplemental environmental impact report (SCH
#96082018) (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 findings 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 1-hour
and 8-hour carbon monoxide exceedances would become worse
under Project conditions.
Accordingly, the Agency and the City Council are adopting
this statement of Overriding Considerations.
II. THE RECORD
The record (the "Record") of the Agency and the City Council
relating to the Project and this statement of Overriding
Considerations includes:
A.
The 1996 SEIR;
B.
The 1992 EIR;
C.
Concurrent City Council and Agency Resolution Nos. 8322
and 1992-19, dated June 2, 1992 regarding the 1992 EIR;
D.
The DDA;
E.
The 1996 SEIR Resolution;
F.
The summary of the DDA prepared by Agency staff in
December 1996 pursuant to Health and safety Code
section 33433 (the "section 33433 Summary").
103OQD.PSO
12/30/96
-2-
G. Detailed Evaluation of Winchester Drive-In site
Alternatives, prepared for the Agency by Economic
Research Associates, dated February, 1995 (the "ERA
Alternatives study");
H. staff memoranda to the Agency Board dated February 20,
1996 and April 16, 1996 discussing land use
alternatives and developer selection for the Property
(the "Staff Reports on Alternatives").
I. The staff report accompanying this Resolution, the 1996
SEIR and the DDA dated January 7, 1997 (the "DDA Staff
Report");
J. The Second Amended and Restated Central Campbell
Redevelopment Plan (the "Redevelopment Plan");
K. The March 1992 Report to City council on the
Redevelopment Plan, and supplements thereto including
the Report on Existing Conditions (the "Report to
council");
L. The City of Campbell Redevelopment Agency AB 1290
Implementation Plan and AB 315 Affordable Housing
Production Plan for the Central Campbell Redevelopment
project Area, adopted by the Agency on November 15,
1994 pursuant to Health and Safety Code section 33490
(the "Implementation Plan").
M. Documentary and oral evidence received by the Planning
Commission, the Agency and the City council during
public hearings and meetings on the Project and the
1996 SEIR;
N. Matters of common knowledge to the Agency and the City
council which they have considered, such as the City of
Campbell General Plan (the "General Plan"), and prior
resolutions and ordinances of the Agency and the city.
III. STATEMENT OF OVERRIDING CONSIDERATIONS
The Agency and the City Council have fully considered the
discussion and analysis in the Record regarding the environmental
impacts and socioeconomic effects of the Project. The Agency and
the City council find that the approval of the DDA and
implementation of the Project (subject to the granting of the
discretionary Planning Approvals) will provide significant
103OQD.PSO
12/30/96
-3-
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 Agency and the City
council further find that the alternatives to the Project
identified in the 1992 EIR, the 1996 SEIR 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 findings and
statement of overriding considerations are based:
A. Elimination of Bliaht On the Propertv. The Agency and
the city council find that approval of the DDA and implementation
of the Project (subject to the granting of the discretionary
Planning Approvals) will eliminate blight on the Property,
thereby accomplishing a central purpose and achieving a primary
benefit of the Redevelopment Plan.
The Property is the largest unutilized parcel in the Project
Area and, consequently, constitutes one of its most blighted
properties. The Property has remained unused for 14 years
despite several private sector redevelopment efforts. As
summarized in the 1992 Report to Council:
"Although a number of properties suffer from the 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
103OQD.PSO
12.130/96
-4-
former Winchester Drive-In site in a manner consistent with
the General Plan. II (Redevelopment Plan, page 9).
Likewise, the Agency's five-year Implementation Plan describes
the benefit of redeveloping the Property as follows:
liThe Winchester Drive-In site has sat vacant for over 10
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. II (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
drain improvements that will facilitate revitalization of the
Property and the surrounding McGlincey Lane industrial area.
Further, the Agency's intention to upgrade Cristich Lane has
helped to create the development environment in which the
Developer is prepared to purchase the Property for $8 million and
to build the Project. The project itself will be one of the
highest quality industrial parks in the city and region, and will
eliminate the major blighting influence described above.
B. Elimination of Bliqht in Remaininq Project Area. The
Agency and the City Council find that approval of the DDA and
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
103OQD.PSO
12.130/96
-5-
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).
Approval of the DDA and development of the Project (subject
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 DDA and the recent sale of two small
parcels acquired by the Agency in conjunction with the Property,
the Agency will generate approximately $3.8 million dollars of
net sale proceeds (after taking into account acquisition costs,
carrying costs, and costs of storm drain infrastructure to be
paid by the Agency through the DDA). The net sale proceeds will
provide the Agency with a vital source of immediate cash that
can be reinvested in the McGlincey Lane area and overall Project
Area to alleviate the infrastructure and other blighting
conditions that have impaired revitalization. Such reinvestment
may include funds for upgrading Cristich Lane and providing
business location and expansion assistance, in addition to the
Agency storm drain improvements that will be funded directly
through the DDA (see Staff Reports on Alternatives; the DDA Staff
Report; and the 1996 SEIR Resolution, Exhibit A, section
VII.A.3) .
Fourth, by putting the Property back on the tax rolls and
causing development of approximately 325,000 square feet of
quality industrial 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 (see DDA Staff Report) .
Finally, through the DDA and Planning Approvals (if
granted), the Developer will be required to provide a range of
additional intersection and utility improvements that will
benefit the entire McGlincey Lane industrial area (see Exhibit F
of the DDA and the 1996 SEIR Resolution, Exhibit A) .
C. Economic Revitalization of the proiect Area. The
Agency and the city council find that approval of the DDA and
implementation of the Project (subject to the granting of the
discretionary Planning Approvals) will significantly strengthen
103OQD.PSO
12130/96
-6-
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 750 new
full~time employees at one or more new businesses. The jobs and
businesses are expected to be at the high-end of industrial 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.)
103OQD.PSO
12130/96
-7-