CC RESOLUTION 5203RESOLUTION NO. 5203
A RESOLUTION OF THE EL SEGUNDO CITY COUNCIL APPROVING
AN AMENDMENT TO ENVIRONMENTAL ASSESSMENT NO. 1154 AND
A MODIFICATION TO CONDITION OF APPROVAL NO. 15 TO ALLOW
THE DEVELOPER D.R. HORTON CA2, INC. TO PAY A FEE TO THE
CITY FOR AFFORDABLE HOUSING PURPOSES IN LIEU OF THE
AFFORDABLE HOUSING REQUIREMENT, AND AUTHORIZING THE
CITY MANAGER TO TERMINATE THE AFFORDABLE HOUSING
AGREEMENT WITH THE DEVELOPER.
The City Council of the City of EI Segundo does resolve as follows:
SECTION 1: The City Council finds and declares that:
A. On March 20, 2012, the City Council approved the "540 East Imperial Avenue
Specific Plan" (Specific Plan 10-03) and other entitlements, to allow for the
construction of one of two possible conceptual options on a 5.65 -acre surplus
school site then -owned by the EI Segundo Unified School District. Option 1
consisted of a three-story, 150 unit assisted living complex and a 154 -unit senior
apartment/condominium complex. Option 2 consisted of 34 multi -family dwelling
units taking access from Imperial Avenue (six of which would be designated for
low, very low and extremely low affordable units), and 24 single-family dwelling
units taking access from Walnut Avenue, for a total of 58 units;
B. On September 28, 2016, the EI Segundo City Council adopted Resolution No.
4999, approving Environmental Assessment No. EA 1154, an amendment to the
540 East Imperial Avenue Specific Plan, and the First Amendment to Development
Agreement No. 16-01 for the development of Option 2 described above;
C. Pursuant to the conditions of approval contained in Resolution No. 4999, which
were agreed to by D.R. Horton CA2, Inc. (either the "Applicant" or "Developer"),
the approved residential development must set aside six multi -family units as
affordable units, for sale to qualified lower income households. Specifically, two
units must be affordable to extremely low income households, two units affordable
to very low income households, and two units affordable to low income
households;
D. On December 30, 2019, the Applicant submitted an application to amend the
affordable housing requirement for the residential development, requesting either
that the affordability be changed to provide eight units at the moderate income
level or to allow the Applicant to pay an in -lieu fee of $5.3 million to the City for
affordable housing purposes;
E. On December 26, 2019, a notice was provided to 119 property owners within a
300 -foot radius of the 540 East Imperial Avenue project site, and a notice was also
published in the El Segundo Herald on December 26, 2019, indicating that a public
hearing was scheduled with the Planning Commission on January 9, 2020;
F. The Planning Commission conducted a public hearing on January 9, 2020, at
which time all interested parties were given an opportunity to be heard and present
evidence regarding said amendments as set forth in the Planning Commission
Staff Report of that date and to receive public testimony and other evidence
regarding the proposed amendments, including, without limitation, information
provided to the Planning Commission by City staff and public testimony;
G. On January 9, 2020, the Planning Commission reviewed and considered the
proposed amendments, and continued the item to the February 13, 2020;
H. On February 13, 2020, adopted PC Resolution No. 2880 recommending the City
Council approve this ordinance amending Environmental Assessment No. EA -
1054, 540 East Imperial Avenue Specific Plan and Development Agreement No.
16-01;
I. On March 3, 2020, the City Council conducted a noticed public hearing to receive
public testimony and other evidence regarding the applications including, without
limitation, information provided to the City Council by City staff and public
testimony, and the applicant;
J. Concurrently with this resolution, the City Council has also introduced and is
expected to adopt an ordinance approving an amendment to the 540 East Imperial
Avenue Specific Plan and a Second Amendment to the Development Agreement.
SECTION 2: Factual Findings and Conclusions. The City Council finds the following:
A. Based upon the income limits for each income category, the financial viability of
households in the extremely low, very low and low-income categories is not
sustainable, and such households would be challenged with paying essential and
basic housing costs, including mortgage, HOA fees, property taxes, and housing
maintenance costs. Thus, households in these income categories would be placed
in a position that make them vulnerable to defaulting on their loans.
B. The amendment is in the City's best interest as it provides for an in -lieu payment
of $5.3 million that allows the City to assist in affordable housing rental units, rather
than only "for sale" units, thereby giving the City greater flexibility in meeting its
Regional Housing Needs Assessment (RHNA) goals.
SECTION 3: Environmental Assessment. An Addendum to the Environmental Impact
Report (EIR) for the development project was certified by the City Council on September
28, 2016. The requested amendment to the affordable housing requirement does not
introduce new significant environmental effects or substantially increase the severity of
the environmental impacts that previously were identified and analyzed in the Council -
certified EIR Addendum. Further, the project does not include changed circumstances or
new information, which were not known at the time the EIR was certified, that would
require the preparation of a subsequent environmental analysis pursuant to CEQA
Guidelines.
RESOLUTION NO. 5203
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SECTION 4: General Plan Findings. After considering the above facts, the City Council
finds as follows:
A. Following a Specific Plan Amendment, the General Plan Land Use Designation of
the project site will remain unchanged; 540 East Imperial Avenue Specific Plan
(540EIASP). This designation is intended for multi -family housing units consisting
of market rate and affordable apartments or condominiums.
B. The General Plan contains a number of relevant Goals, Objectives, and Policies
in the Land Use Element. Implementation of the proposed project is consistent with
Land Use Element Policy LU3-2.1 to "promote high quality Multi -Family Residential
developments with ample open space, leisure and recreational facilities." If
approved, the development will be built and maintained in accordance with these
requirements and regulations and the requirements and regulations of the 540
East Imperial Avenue Specific Plan.
C. The proposed project is consistent with Housing Element Goal 2 to "Provide
sufficient new, affordable housing opportunities in the City to meet the needs of
groups with special requirements, including the needs of lower and moderate
income households," in that the developer is proposing to pay the City an in -lieu
fee of $5.3 million to be used for affordable housing purposes.
SECTION 5: Housing Element and "No Net Loss" Finding. The project site and the
original 540EIASP Option 1 (150 unit assisted living complex and a 154 -unit senior
apartment/condominium complex) was identified as a pending project in the City's
certified Housing Element, which would have provided enough affordable housing units
to address the City's RHNA allocation of 29 affordable units in the lower income
categories. By adopting this resolution, the City is allowing development of the property
with fewer units by income category than identified in the Housing Element. Based on a
review of the Housing Element, the City does not find that the remaining sites in the
Housing Element are adequate to accommodate the City's share of the regional housing
need by income level. Accordingly, pursuant to Government Code § 65863(c)(2), the City
will, within 180 days, identify and make available additional adequate sites to
accommodate the City's share of the regional housing need by income level.
SECTION 6: Approvals. Based on the foregoing and subject to the amended and
restated conditions listed on the attached Exhibit "A," the City Council hereby:
A. Approves an amendment to Environmental Assessment No EA 1154; and
B. Authorizes the City Manager to terminate the Affordable Housing
Agreement with the Applicant, upon the Applicant's full payment of the $5.3
million in -lieu fee.
RESOLUTION NO. 5203
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SECTION 7: Reliance On Record. Each and every one of the findings and determination
in this Resolution are based on the competent and substantial evidence, both oral and
written, contained in the entire record relating to the project. The findings and
determinations constitute the independent findings and determinations of the City Council
in all respects and are fully and completely supported by substantial evidence in the
record as a whole.
SECTION 8: Limitations. The City Council's analysis and evaluation of the project is
based on the best information currently available. It is inevitable that in evaluating a
project that absolute and perfect knowledge of all possible aspects of the project will not
exist. One of the major limitations on analysis of the project is the City Council's lack of
knowledge of future events. In all instances, best efforts have been made to form
accurate assumptions. Somewhat related to this are the limitations on the city's ability to
solve what are in effect regional, state, and national problems and issues. The City must
work within the political framework within which it exists and with the limitations inherent
in that framework.
SECTION 9: Summaries of Information. All summaries of information in the findings,
which precede this section, are based on the substantial evidence in the record. The
absence of any particular fact from any such summary is not an indication that a particular
finding is not based in part on that fact.
SECTION 10: Effective Date. Concurrently with this resolution, the City Council has also
introduced and is expected to adopt an ordinance approving an amendment to the 540
East Imperial Avenue Specific Plan and a second amendment to the Development
Agreement, amending the affordable housing requirement to provide for eight affordable
units for qualified moderate income households within the residential development. If the
ordinance is introduced and adopted by the City Council, this resolution will be become
effective upon the effective date of the ordinance and remain effective until superseded
by a subsequent resolution. If the ordinance is not adopted by the City Council, this
resolution will be null and void and of no effect.
SECTION 11: A copy of this Resolution must be mailed to D.R. Horton Homes CA2, Inc.
and to any other person requesting a copy.
PASSED, APPROVED AND ADOPTED this 3rd day of March, 2020.
X
Drew Boyl .. ayor
RESOLUTION NO. 5203
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ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Tracy Weaver, City Clerk of the City of EI Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is four; that the foregoing
Resolution No. 5203 was duly passed, approved, and adopted by said City Council at a
regular meeting held on the 31d day of March, 2020, approved and signed by the Mayor,
and attested to by the City Clerk, by the following vote:
AYES: Mayor Boyles, Mayor Pro Tem Pirsztuk, and Council Member Pimentel
NOES: None
ABSENT: None
ABSTAIN: Council Member Nicol
Tracy/, r, City Clerk
APPROVED AS TO FORM:
MaQ�JID 'i <-'e J=,D(L-
rk D. Hensle„ C Attorney
RESOLUTION NO. 5203
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CITY COUNCIL RESOLUTION NO. 5203
Exhibit A
AMENDED CONDITION OF APPROVAL NO. 15
Condition No. 15, approved as part of City Council Resolution No. 4999, is modified as
indicated below. The proposed revisions to these conditions of approval are illustrated
with GtFikethFOUrvh for existing language that is proposed for elimination and underlined
for proposed new language. Except as otherwise modified below, the conditions of
approval attached to Resolution No. 4999 remain unchanged and in effect.
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RESOLUTION NO. 5203
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