Transcript Slide 1

Planning & Community Development Department
Development Agreement between
Norton Simon Art Foundation
& City of Pasadena
City Council Meeting
December 16, 2013
Importance of this Agreement
Planning & Community Development Department
• Sales Tax accounts for 16% of total General Fund
revenues.
• Auto dealers account for 10% of total Sales Tax
revenues.
• Between 2000 and 2012, Pasadena lost numerous
automobile franchises:
> Mercedes, Chevrolet, Ford, Chrysler, Dodge, Jeep,
Hummer, Hyundai, Suzuki and Acura.
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Importance of this Agreement
Planning & Community Development Department
• Rusnak Auto Group is consistently in top 10% of sales tax
generators:
> Approximately 300 employees and annual payroll of $19.3
million.
> Rolls Royce, Bentley, Porsche, Audi, Maserati & Volvo.
• Current lease between Norton Simon and Rusnak Auto Group
expires at the end of 2015. The loss of Rusnak would have a
significant negative impact on the local economy.
• The property requires reinvestment to remain viable as a
dealership:
> A long-term lease would incentivize investment
> Norton Simon is reluctant to extend lease unless it can
preserve options for the future.
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Background
Planning & Community Development Department
• State Government Code and the Pasadena Zoning Code
regulate development agreements
• They are contracts between local government entities and
applicants (usually a property owner or developer).
• Provide assurances for applicants to maintain the right to develop
subject to the rules and regulations at that time in return for
public amenities, negotiated fees and/or other benefits.
• Cannot be used to allow a use that would not be permitted under
the Zoning Code, constitute a rezoning or permit a Variance.
• Noticed public hearings with findings before the Planning
Commission and City Council.
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Background
Planning & Community Development Department
• On August 2012 – Development Agreement submitted between
the Norton Simon Art Foundation & City of Pasadena.
• 267-337 W. Colorado Blvd. & 55-77 N. St. John Ave.
> 5.7 acres; Located in West Gateway Specific Plan.
> Property developed with Rusnak-Pasadena dealership.
• Under the proposed agreement:
> The applicant would pursue a long-term lease extension.
> Applicant would preserve its right to develop in the future
under the current General Plan, Specific Plan & Zoning Code.
• No project or property modifications proposed at this time.
• Planning Commission meetings on April 10th & July 24th.
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Subject Site
OS
Colorado Blvd.
SP
6
PS
CD-1
Pasadena Ave.
St. John Ave
PS
710-FRW
Planning & Community Development Department
Subject Site
Planning & Community Development Department
Rusnak-Pasadena
Dealership
St. John Ave
Norton Simon
Art Museum
OS
Colorado Blvd.
Knights of
Columbus
SP
Ralphs
7
PS
Union St.
CD-1
Pasadena Ave.
Freeway
ROWs
710-FRW
PS
Old
Pasadena
Subject Site
Planning & Community Development Department
Union St.
710-ROW
St. John Ave
134-ROW
Colorado Blvd.
Subject Site
Planning & Community Development Department
West Colorado Street
Historic Auto Row
Colorado Blvd.
Union St.
710-ROW
Auto Service Buildings
&
Outdoor Display Areas
St. John Ave
134-ROW
Subject Site
Planning & Community Development Department
Buildings along W. Colorado Blvd.
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Subject Site
Planning & Community Development Department
ABOVE – Buildings along St. John Ave.
LEFT - Auto Display & Service Areas
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Original Proposed Agreement
Planning & Community Development Department
• Current lease for the dealership expires at end of 2015.
• Applicant would use good faith efforts to maintain a luxury
brand dealership for an additional 15 years.
• Still subject to changes in laws, fees and building related codes.
• Includes annual reviews.
• Terms of agreement would end if:
> The applicant is unable to secure a new lease or an
extension of the existing lease or the use was no longer a
luxury brand dealership.
 Includes grace periods of up to 5 years.
 In no event will the total length exceed 23 years.
 Applications deemed complete would be vested.
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Planning Commission Meetings
Planning & Community Development Department
• On April 10th Planning Commission unable to reach a decision
and continued the item.
• On July 24th Commission recommended City Council deny the
development agreement by a vote of 4-3. The Commission
identified the following significant issues:
> There was no specific project associated with the agreement;
> The use of “grace periods” was too broad and its maximum
length was too long, overall agreement was too long;
> Agreement would set precedence for other property owners to
request similar agreements; and
> Property owner would be able to vest existing development
standards when the West Gateway Specific Plan may sunset.
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Modified Proposed Agreement
Planning & Community Development Department
• Staff and applicant continued to work together to address the
Commission’s concerns.
• “Grace periods” only apply if the use was extended for five years
or more from the effective date of agreement;
• “Grace periods” are reduced from five years to three years;
complete applications would be vested.
Length of
existing
lease:
Length of
Number of
extended or new additional years
lease:
of the agreement
(grace period)
Total length of
agreement
2 years
None
0 years
2 years
2 years
1 to 2 years
0 years
3 to 4 years
2 years
3 to 18 years
3 years
8 to 23 years
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Existing Standards
Planning & Community Development Department
• West Gateway Specific Plan adopted in 1998.
• Remaining caps in the Specific Plan:
> 407,000 SF of commercial and no housing units.
> SF can be converted to housing units (850 SF per unit).
• All properties maintain their existing SF on site and receive an
additional FAR of 0.4 (for a total FAR of 0.94).
> Transfer of Development Rights (TDRs) allows transfer of
the 0.4 FAR from one property to another.
> Existing SF can be demolished an reconstructed on-site.
• Proposed General Plan does not call for significant changes for
subject property (FAR of up to 1.0).
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Existing Standards
Planning & Community Development Department
• Other development standards for the subject property:
Topic Area
Permitted Uses:
Development Standard
• Housing, business and community serving
uses and automobile dealerships.
Residential Density: • Urban housing standards
• 48 units per acre; or 274 units for the property
• Minimum lot area per unit: 910 SF
Height:
Setbacks:
Lot Coverage:
• 40 ft. for first 150 ft. along Colorado Blvd.
• 85 ft. for rest of property
• 20 ft. along Colorado Blvd.
• No other setback requirements
• Does not apply
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TDRs
Planning & Community Development Department
• Clarification on Transfer of Development Rights (TDRs):
> Proposed agreement would maintain the list of permitted
uses, maximum FAR and development standards as
outlined in existing Specific Plan.
> However, if TDRs were removed within the Specific Plan,
the subject property would also not be able to utilize TDRs.
> None of the other properties would be able to transfer SF
from their property to the subject property.
• Specific language included in the agreement to further clarify
TDRs.
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Findings of Support
Planning & Community Development Department
1) The proposed agreement is in the best interest of the City
• City and community would enjoy many benefits from
maintaining the dealership:
> Dealership generates significant revenues through sales
taxes and other taxes and revenues.
> As a luxury brand dealership, it attracts a large portion of its
customers from outside Pasadena.
> Eliminates uncertainty in the planning process and provides
for the orderly future development of the property.
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Findings of Support
Planning & Community Development Department
2) The proposed agreement is in conformance with the goals,
policies and objectives of the General Plan, West Gateway
Specific Plan and Zoning Code.
• Agreement would maintain all existing goals, objectives and
standards of the General Plan and Specific Plan:
> General Plan Guiding Principle highlights economic vitality.
> General Plan Objectives include the need to encourage
businesses that contribute to the City’s fiscal health.
> Automobile Dealerships are permitted “by right” in the
Specific Plan.
• General Plan Update does not call for significant changes for
the subject property.
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Findings of Support
Planning & Community Development Department
3) The proposed agreement would not be detrimental to the
health, safety and general welfare of the immediate area or
the City.
• Agreement would maintain the existing luxury dealership or
maintain present conditions:
> Automobile sales have occurred since the 1920s.
> Existing business has not been a nuisance to the
surrounding area or community.
> Automobile sales are permitted “by right”.
• A proposed new project would need to comply with all existing
public hearing and noticing requirements and all provisions of
CEQA.
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Findings of Support
Planning & Community Development Department
4) The proposed agreement is consistent with the California
State Government Code (Sections 65864 through 65869.5).
• These sections outline requirements related to the contents of
the agreement, the applicability of an agreement and on the
public hearing and approval process:
> City Staff and City Attorney have reviewed agreement and it
meets or exceeds all provisions of the Code.
> Public outreach includes newspaper notice, notices mailed
to all property owners within 500 ft. and multiple on-site
postings.
> Does not constitute a Zone Change or Variance.
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Highly Unique Situation
Planning & Community Development Department
• Terms of agreement are highly unique and do not set
precedence.
• Involves to long-standing community institutions.
• Provides significant economic benefits to the City.
• Any other agreement for another property would be reviewed
separately on its merits by Planning Commission and City
Council.
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Recommendation
Planning & Community Development Department
1) Find agreement is exempt from the California
Environmental Quality Act (CEQA) and does not have the
potential for causing a significant effect on the
environment;
2) Make the four findings necessary to approve a
Development Agreement;
3) Approve the Development Agreement between the Norton
Simon Art Foundation and the City of Pasadena; and
4) Direct the City Attorney to draft an ordinance within
60 days.
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Planning & Community Development Department
Development Agreement between
Norton Simon Art Foundation
& City of Pasadena
City Council Meeting
December 16, 2013