ORDINANCE 1615ORDINANCE NO. 1615
AN ORDINANCE APPROVING AND ADOPTING AN
AMENDMENT TO THE 540 EAST IMPERIAL AVENUE SPECIFIC
PLAN AND A SECOND AMENDMENT TO DEVELOPMENT
AGREEMENT NO. 16-01, TO ALLOW THE DEVELOPER D.R.
HORTON CA2, INC. TO PAY A FEE TO THE CITY IN LIEU OF THE
AFFORDABLE HOUSING REQUIREMENT, AND AUTHORIZING
THE CITY MANAGER TO SIGN A SETTLEMENT AGREEMENT.
The City Council of the City of EI Segundo does ordain as follows:
SECTION 1: The City Council finds and declares as follows:
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. In 2019, Developer filed an application to amend the affordable housing
requirement for the residential development; the proposed amendment was
not approved by the City Council at its July 16, 2019 meeting;
E. On November 13, 2019, Developer filed a lawsuit against the City and City
Council, captioned D.R. Horton CA2, Inc. v. City of El Segundo et al. (L.A.
Superior Court case no. 19STCP04857;
F. On December 30, 2019, the Applicant's 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;
G. 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 EI Segundo Herald on December 26, 2019,
indicating that a public hearing was scheduled with the Planning
Commission on January 9, 2020;
H. 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;
On January 9, 2020, the Planning Commission reviewed and considered
the proposed amendments, and continued the item to the February 13,
2020;
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;
K. 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;
L. This Ordinance and its findings are made based upon the entire
administrative record including testimony and evidence presented to City
Council at its March 3, 2020, public hearings and the staff reports.
SECTION 2: 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 certified EIR Addendum. Further, the project
does not include changed circumstances or new information, which were not
ORDINANCE NO. 1615
PAGE 2 of 9
known at the time the EIR was certified, that would require the preparation of a
subsequent environmental analysis pursuant to CEQA Guidelines.
SECTION 3: General Plan and Specific 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 (EIASP). 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 4: Amendment to Development Agreement Findings. Pursuant to City
Council Resolution No. 3268 and Government Code §§ 65857.5 and 65858, the
City Council finds that:
A. The proposed amendment to the Development Agreement is consistent
with the objectives, policies, general land uses, and programs specified in
the General Plan as described above and the 540 East Imperial Avenue
Specific Plan (540EIASP), as amended by this ordinance.
B„ The proposed amendment to the Development Agreement is compatible
with the uses authorized in, and the regulations prescribed for, the land
use district in which the real property is located.
C. The proposed amendment to the Development Agreement conforms with
public convenience, general welfare and good land use practice. The
Development Agreement, as amended, would require the Applicant to pay
the City $5.3 million dollars to be used for affordable housing purposes
throughout the City.
ORDINANCE NO. 1615
PAGE 3 of 9
D. The proposed amendment to the Development Agreement will not be
detrimental to the health, safety and general welfare.
E. The proposed amendment to the Development Agreement will not
adversely affect the orderly development of property or the preservation
of property values. This project is surrounded by previously -developed
neighborhoods and will help improve the value of neighboring properties.
The proposed Development Agreement, as amended, will ensure that the
project will be developed in an orderly fashion.
SECTION 5: Specific Plan. The City Council makes the following findings:
A. Specific Plans create "mini -zoning" regulations for land uses within
particular areas of the City. All future development plans and entitlements
within the Specific Plan boundaries must be consistent with the standards
set forth in the adopted Specific Plan, even when they may be different
from the general regulations within the ESMC.
B. The proposed specific plan amendment is in the public interest, and there
will be a community benefit resulting from the specific plan.
SECTION 6: Approvals and Authorization. Subject to Section 7 of this ordinance,
the City Council hereby approves the amendment to 540 East Imperial Avenue
Specific Plan, as set forth in the attached Exhibit "A"; and the Second Amendment
to Development Agreement No. 16-01, attached to this ordinance -as Exhibit "B."
Upon the effective date of this Ordinance, the Mayor is authorized to execute the
amendment on behalf of the City. The City Manager is hereby authorized and
directed to perform all acts and execute all documents needed to effectuate this
Ordinance.
SECTION 7: Settlement Agreement is Condition Precedent; Authorization. The
approval of the amendment to the 540 East Imperial Avenue Specific Plan and the
Second Amendment to Development Agreement No. 16-01 will not become
effective unless and until the Applicant, the City and the City Council, each in its
sole discretion, enter into a Settlement Agreement to settle the pending case, D.R.
Horton CA2, Inc. v. City of EI Segundo et al. (L.A. Superior Court case no.
19STCP04857). The City Council hereby authorizes the City Manager to execute
such a settlement agreement on the City's and the City Council's behalf, in a form
approved by the City Attorney.
SECTION 8: Technical Corrections. The City Manager, or designee, is authorized
to make technical corrections, in a form approved by the City Attorney, to maps,
diagrams, tables, and other, similar, documents (collectively, "Maps") that may be
required to reconcile the changes made by this Ordinance with amendments made
to the Zoning Map by other City Council action in unrelated land use applications.
ORDINANCE NO. 1615
PAGE 4 of 9
SECTION 9: Reliance on Record. Each and every one of the findings and
determinations in this Ordinance 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 10: 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 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 11: 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 12: Effectiveness of SSMC. Repeal or amendment of any provision of
the ESMC will not affect any penalty, forfeiture, or liability incurred before or
preclude prosecution and imposition of penalties for any violation occurring before
this Ordinance's effective date. Any such repealed part will remain in full force and
effect for sustaining action or prosecuting violations occurring before the effective
date of this Ordinance.
SECTION 13: Recordation. The City Clerk is directed to certify the passage and
adoption of this Ordinance; cause it to be entered into the City of EI Segundo's
book of original ordinances; make a note of the passage and adoption in the
records of this meeting; and, within fifteen (15) days after the passage and
adoption of this Ordinance, cause it to be published or posted in accordance with
California law.
SECTION 14: Severability. If any part of this Ordinance or its application is
deemed invalid by a court of competent jurisdiction, the city council intends that
such invalidity will not affect the effectiveness of the remaining provisions or
applications and, to this end, the provisions of this Ordinance are severable.
SECTION 15: Effective Date. This Ordinance will go into effect and be in full force
and effect on the thirty-first (31 st) day after its passage and adoption.
ORDINANCE NO. 1615
PAGE 5 of 9
PASSED AND ADOPTED this 17th day of March, 2020.
Dre:��
es, Mayor
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 Ordinance No. 1615 was duly introduced by said City Council at a
regular meeting held on the 3rd day of March, 2020, and was duly passed and
adopted by said City Council, approved and signed by the Mayor, and attested to
by the City Clerk, all at a regular meeting of said Council held on the 17th day of
March, 2020, and the same was so passed and adopted by the following vote:
AYES: Mayor Boyles, Mayor Pro Tem Pirsztuk, and Council Member
Pimentel
NOES: None
ABSENT: None
ABSTAIN: Council Member Nicol
Trac \41-a�erp.. dty Clerk°'
APPROVED AS TO FORM:
:3 �1, for
Mark D. Hensley, ` Attorney
ORDINANCE NO. 1615
PAGE 6 of 9
ORDINANCE NO. 1615
Exhibit A
AMENDMENT TO 540 EAST IMPERIAL AVENUE SPECIFIC PLAN
Section 4.2 (Development Standards) and the paragraph titled "Affordability" on
Page 17 of the 540 East Imperial Avenue Specific Plan is modified as follows. The
proposed revisions to these conditions of approval are illustrated with StFikethFe gh
for existing language that is proposed for elimination and underlir-e-d for proposed
new language. Except as otherwise modified below, the Plan remains unchanged
and in effect:
AFFORDABILITY
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ORDINANCE NO. 1615
PAGE 7 of 9
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ORDINANCE NO. 1615
PAGE 8 of 9
Second Amendment to the Development Agreement
ORDINANCE NO. 1615
PAGE 9 of 9
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
CITY CLERK
CITY OF EL SEGUNDO
350 Main Street
El Segundo, California 90245
Exempt from recorder's fees
Pursuant to Govt. Code X6103
THIS SPACE ABOVE FOR RECORDER'S USE
SECOND AMENDMENT OF
DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF EL SEGUNDO
AND D.R. HORTON CA2, INC.
(540 E. IMPERIAL AVENUE SITE)
This Second Amendment of Development Agreement ("Second Amendment") is
entered into this q�Lday of March, 2020, by and between the CITY OF EL SEGUNDO
("City"), a municipal corporation and the D.R. HORTON CA2, INC. ("Developer").
RECITALS
A. City and the El Segundo Unified School District entered into that certain
Development Agreement dated May 4, 2012 (City Agreement No. 4271, hereafter
"Development Agreement"), which was recorded on May 30, 2012, in the Official Records of
Los Angeles County as Document No. 20120798461.
B. On or about September 28, 2016, the City Council approved a First Amendment
to the Development Agreement, which was recorded on January 23, 2017, in the Official
Records of Los Angeles County as Document No. 20170088928.
C. On or about September 30, 2016, the El Segundo Unified School District sold the
540 E. Imperial Avenue site to Developer. The District assigned its interest in the property,
including its obligations under the Development Agreement and First Amendment, to Developer.
The assignment took effect upon the close of escrow, September 30, 2016.
D. City and Developer entered into that certain Affordable Housing Agreement dated
October 16, 2018, which was recorded on October 16, 2018, in the Official Records of Los
Angeles County as Document No. 20181051979. As part of the Affordable Housing Agreement,
Developer agreed that the six units designated as affordable units must be sold to qualified
households before the City would issue a final Certificate of Occupancy for six unsold market
rate units within the same buildings as the affordable units ("Unsold Market Rate Units").
E. Concurrent with consideration of this Second Amendment, City is processing an
Amendment to the 540 East Imperial Avenue Specific Plan ("Specific Plan Amendment") to
modify the affordable housing requirements for the project site. City and Developer desire to
enter into this Second Amendment to allow the Developer to pay the City a fee in lieu of the on-
site affordable housing unit requirement.
AGREEMENT
1. Amendment of Development A reement. The following sections and exhibits of
the Development Agreement are hereby amended as follows:
A. Section 1 (Definitions) is hereby amended to add the following defined
term in alphabetical order:
"Unsold Market Rate Units" means six market rate units that were referred to in
Section 3.e of the Affordable Housing Agreement between the parties. The
Affordable Units within a building were to be sold to a qualified household, and
escrow must have closed on such affordable units, before the City would issue a
final Certificate of Occupancy for the last remaining Unsold Market Rate Units
within the same building."
B. Section 5.3 is hereby amended to read as follows:
"5.3 r° rfordable l'40L1'sil)21 In -Lieu Fee. Developer shall pay City a fee in the
amount of Five Million Three Hundred Thousand U.S. Dollars ($5,300,000) to be
used for affordable housing purposes within City's territorial boundaries ("In
Lieu Fee"). Developer's payment of the In Lieu Fee to City shall satisfy
Developer's obligation to provide affordable housing for the Project under this
Development Agreement, the Applicable Rules and the Project Approvals,
including but not limited to the Specific Plan Amendment and the Amended
Resolution. Developer shall pay the In Lieu Fee no later than the effective date of
the City's ordinance approving the Second Amendment to this Agreement. Upon
Developer's payment of the In Lieu Fee, City agrees that it shall promptly issue
all final Certificates of Occupancy for the Unsold Market Rate Units."
C. Subsections 5.3.1 through 5.3.3, inclusive, are hereby deleted in their
entirety.
D. Paragraph 4 of Subsection 5.9 is hereby deleted in its entirety.
E. Exhibit "D-1" of the Development Agreement is hereby deleted in its
entirety.
2. Mood I°aitli Compliance. This Second Amendment shall constitute the City's
Periodic Review pursuant to Section 8.1 of the Development Agreement and City's
determination that Developer is in substantial compliance with the terms and provisions of the
Development Agreement.
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3. Effect of Aniendmeiit. Except as expressly provided in this Second Amendment,
the Development Agreement shall not be amended or otherwise modified. In the event there is a
conflict between the terms of the Development Agreement, as amended, and the terms of this
Second Amendment, the terms provided in this Second Amendment shall control. On and after
the date hereof, each reference in the Development Agreement to "this Agreement,"
"hereunder," "hereof," "hereto," "herein," or words of like import referring to the Development
Agreement shall mean and be a reference to the Development Agreement as amended by the
First and Second Amendments.
4. Recordation. This Second Amendment shall be recorded with the County
Recorder of the County of Los Angeles by the City Clerk of City.
5. Counterparts. This Second Amendment may be executed in one or more
counterparts, each of which, taken together, shall constitute one fully executed original.
IN WITNESS WHEREOF, Developer and City of El Segundo have executed this
Second Amendment on the date first above written.
ATTEST:
Traci r, i y ci:
APPROVED AS TO FORM:
Mark D. Hensley, Attorney
CITY:
CITY OF EL SEGUNDO, a municipal corporation
Drew 13 , ayor
DEVELOPER:
..............
D.R. HORTON CA , INC.
By: ♦ ,
Its: JA�p�
ef-fil-C.Z,�ft—,
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
.4�jcument to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of
On rT.,h zq., 2D2—jc�) I before me, PA�n(A'( — K1q(-Tk r-V� rO ,,, a Notary Public,
personally appeared 1� 4.. . .... ..............
. ....... (S rn i who proved to me on the basis of
satisfactory evidence to be the person( whose subscribed to the within
instrUment and acknowledged to ine that-e:ys4wft+tey executed the same in�Vht-TIth-eir
authorized capacit),Titm), and that by/thek signatureN) on the instrument the person's), or
the entity upon behalf of which the personN acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
PATRICIA M. MONTENEGRO
Notary Public- California
Went
5� 0 Riverside County
Signature 4�&,A, Commission 2231533
...
.............. .... my Comm Expires Mar 9, 2022
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of
On Ap - r -A
9 -X
Z-0 before me, .,P-
a Notary Public,
personally appeared ........ who proved to me on the basis of
satisfactory evidence to be the person( whose narnO
J§s,&,� subscribed to the within
instrLiment and acknowledged to me 2at he/shefthL-y,'exCCL1ted the same in his/hor4dwiir
authorized capacityOzs), and that byP his/Fier/
is/ rier-44ae+rsignature � on the insti-6—ment the person(s), or
the entity upon behalf of which the FLrso��,'acted. c Zdthe instrunient.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
so
---—————————
PATRICIA HARADA-AU
Notary Public - California
Los Angeles County
Commission # 2239661
My Comm. Expires May 23, 2022
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