TITLE
Recommendation to declare ordinance approving an application for a Development Agreement pursuant to Chapter 21.29 of the Long Beach Municipal Code; directing the City Attorney to prepare a Development Agreement embodying the application and key terms of the Development Agreement as approved by the City Council; and authorizing and directing the City Manager to execute, on behalf of the City of Long Beach, a Development Agreement with 400 Oceangate, Ltd., Eleven Golden Shore, L.P., and One Golden Shore, L.P., for the Golden Shore Development Project, read and adopted as read. (District 2)
DISCUSSION
The 5.87-acre project site is located on the south side of Ocean Boulevard at Golden Shore. The subject site extends from Ocean Boulevard to Shoreline Drive and includes parcels totaling 4.31 acres west of Golden Shore and a 1.56-acre parcel east of Golden Shore (Exhibit A - Location Map).
On March 18, 2010, the Planning Commission certified an Environmental Impact Report and adopted a Resolution with Findings of Fact and a Statement of Overriding Considerations; recommended approval of a Local Coastal Program Amendment and an Amendment to PD-6 to the City Council; and approved a Master Plan for the Golden Shore Project consisting of three development options with a maximum of 1,370 residential condominiums, 340,000 square feet of office space, 28,000 square feet of retail space, a 400-room hotel, 27,000 square feet of conference and banquet facilities, and up to 3,430 parking spaces (Exhibit B - Master Plan).
On April 20, 2010, the City Council adopted an Ordinance amending the Local Coastal Program and the Downtown Shoreline Planned Development District (PD-6) and approved the Golden Shore Master Plan that was forwarded to the California Coastal Commission (CCC) for consideration. At its June 16, 2011 meeting, the CCC approved the Local Coastal Program Amendment and Golden Shore Master Plan with suggested modifications that were subsequently approved by the City Council on August 9, 2011. As such, the project has been granted full Master Plan entitlements.
The applicant is now requesting approval of a Development Agreement (Exhibit C - Development Agreement) to protect the entitlements associated with the Master Plan for a period of 20 years. The City has the authority to enter into a Development Agreement with a person having legal or equitable interest in property per Sections 65884-65869.5 of the California Government Code. The intent of this proposed Development Agreement is to benefit both the City and the Developer by (1) creating significant opportunities for economic growth in the City, the Southern California Region, and the State of California; (2) allowing the Developer the opportunity to realize increased value and returns from the property; (3) creating additional housing units in the City; and (4) providing a high-quality, mixed-use project which will provide the City with a strong entry statement for the western gateway to the City’s Downtown.
There is no specific development project proposed in conjunction with the approved Golden Shore Master Plan at this time. The Master Plan allows for different development options in order to provide the developer with flexibility to quickly respond to market conditions. Once the developer chooses an option, they will be required to submit a Site Plan Review application for Planning Commission consideration prior to any development proceeding at the site.
Due to the scope and complexity of the project, together with the associated benefits for the City of Long Beach, staff recommends that the City Council adopt the Ordinance approving the Golden Shore Development Agreement.
On June 4, 2015, the Planning Commission considered the request and unanimously recommended approval of the Development Agreement to the City Council subject to amending Section 3.1.1 to include the following language: "Developer agrees to work with the City to incorporate a local hire component in its construction contracts." (Exhibit D-Planning Commission Staff Report from June 4, 2015).
In accordance with the Guidelines for Implementation of the California Environmental Quality Act, a Categorical Exemption (CE 15-051) was issued for the proposed project (Exhibit E-Categorical Exemption).
This matter was reviewed by Assistant City Attorney Michael J. Mais on June 12, 2015 and by Budget Management Officer Victoria Bell on June 15, 2015.
TIMING CONSIDERATIONS
City Council action is requested on July 7, 2015, to comply with Section 21.29.030(B) of the Long Beach Municipal Code which contains specific timing requirements for Development Agreements.
FISCAL IMPACT
There will be no fiscal impact as a result of the recommended action.
SUGGESTED ACTION
Approve recommendation.
BODY
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LONG BEACH APPROVING AN APPLICATION FOR A DEVELOPMENT AGREEMENT PURSUANT TO CHAPTER 21.29 OF THE LONG BEACH MUNICIPAL CODE; DIRECTING THE CITY ATTORNEY TO PREPARE A DEVELOPMENT AGREEMENT EMBODYING THE APPLICATION AND KEY TERMS OF THE DEVELOPMENT AGREEMENT AS APPROVED BY THE CITY COUNCIL; AND AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE, ON BEHALF OF THE CITY OF LONG BEACH, A DEVELOPMENT AGREEMENT WITH 400 OCEAN GATE, LTD, ELEVEN GOLDEN SHORE, L.P., AND ONE GOLDEN SHORE, L.P. FOR THE GOLDEN SHORE DEVELOPMENT PROJECT
Respectfully Submitted,
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER