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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 Page 2 of 6 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 Page 3 of 6 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 Page 4 of 6 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 Page 5 of 6 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. 15. In lieu of orovidincL-aftr eIQ r -r ThoDollars 0- IY 1 1 days of W n . �r � r -n of theordinance ar)Dr2qA' !.n.q—the second amendment to the An r _ . -A;-. 106- a r" -� ,. .K K ... ...Wf A'- - -- . I.INIM TV - K.• IM R M sx. MA rn W IK- �. W.. �WK - • �►. w '. K mw. i- YZF I�A, # 72% M.. it wi w AW - YW -. W KK C @ MK W:.ATi -.W 'W w r K a�....w xr r-M,ww w.. -.•r.- - W e "market I - M'_'. wMKIM w:w' AIE AM _. K K+�''. W KJ '�'' W. .. -.-. uW _:w KK w.K •K K -Y. _. . M. .x. Y. . 'M +... iK � V• nW -. w i _ - AM '.A'Y r 'AW AA K PTA, 9F. w. 431- M -t t RESOLUTION NO. 5203 Page 6 of 6