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2021-12-07 CC Agenda - Public Communications - Chargers-Raython Development Agreement2021-12-07 CC AGENDA PACKET PUBLIC COMMUNICATIONS RELATED TO ITEM #16 - CHARGERS/RAYTHEON DEVELOPMENT AGR. Harada, Patricia From: Weaver, Tracy (City Clerk) Sent: Tuesday, December 7, 2021 1:33 PM To: *ALL CITY CLERKS Subject: FW: Raytheon Development Agreement Attachments: ES Challenger Field.pdf; ES Challenger Field.pptx Council received the email below. Tracy Weaver I City Clerk City of El Segundo 350 Main Street El Segundo CA 90245 310.524.2305 1 tweaverPelegunclO.Drg I www.elsegundo.org ELISEGUNDO Where Iri.-, ideiAS lalu Off, From: Ryan Baldino <ryan.baldino@gmail.com> Sent: Tuesday, December 7, 2021 1:25 PM To: ALL ELECTED OFFICIALS <ALLELECTEDOFFICIALS@eisegundo.org> Subject: Raytheon Development Agreement Dear City Council Members, I would like to opportunity to address the City Council tonight about the history of the Raytheon Campus Development Agreement. Attached is a PowerPoint that conveys some of the concerns I would like to share with you. The first part relating to the need for a new challenger field was taken from a 2017 PowerPoint prepared by Mike Zarneke for the little language board to raise awareness of the need in our town for more field space for our kids. This PowerPoint was presented to DR Horton, which resulted in DR Horton donating $100,000 to El Segundo Little League to help build a new Challenger field. We still don't have the land for the new Challenger Field. The slides after that were created by me to explain how the Raytheon Development Agreement has changed over the years. It documents that when Raytheon asked for the First Amendment to the Development Agreement in 2019, it was aware of the City's needs for a new park and Raytheon promised both the planning commission and the City Council the 7.54-acre park would be located in Phase III, outside of its security perimeter. The last time we amended the development agreement, Raytheon promised the park issue would be resolved in the next amendment to the development agreement. We were told the public park would be in Phase III and outside the Raytheon security fence. Now that the public benefit obligations have been triggered, Raytheon is again seeking to delay making any commitments on the 7.54 acre park and other public benefits required in the Development Agreement. If we do not resolve how Raytheon plans on making good on the public benefit obligations contained within the Development Agreement now, I'm afraid we never will. While Raytheon is offering a memorandum of understanding to allow some El Segundo teams to use Raytheon's private park, that right of access can be denied by Raytheon at any time in the future. In addition, a park that is not available to everyone who lives in our town on a drop -in basis is not a public park and therefore is not truly a public benefit. We need more parks for the people and families that live here. We have for years. The Development Agreement is clear. The public benefit obligations will be triggered by this second amendment. Raytheon has the obligation now to decide if it will provide the public benefit in Section 9.2 (dedication of 7.54 acres, outside the security perimeter for a public park), or provide a negotiated alternative of equal value under Section 9.3 (which would be some other public benefit comparable to 7.54 acres of land). Planning Commission unanimously agreed to draft an amendment to the conditions of approval for just the Raytheon storage project which states: "Prior to the issuance of a building permit of the Raytheon storage building, the applicant shall enter into an agreement with the City Committing to effectuate either Section 9.2 or Section 9.3 of the Development Agreement No. 4972A regarding the recreation/open space area." The City should not allow Raytheon to build in Phase IV without agreeing with the City on how the 7.54-acre park obligation will be met by Raytheon. If Raytheon is going to say no to providing the public benefits required of it and is refusing to discuss how these obligations will be met in the future, then we need to say no to Raytheon. Thank you for your time and service to our City. Ryan Baldino Est. 1954 =0 I I I'm le [SILM 0Y :12forwAm r6�rf Y MO6., owmawo L4S!EGU' :410 We lost a baseball field in El Segundo With the sale of the old school site on Imperial by ESUSD to DR Horton in 2017, El Segundo Little League has lost Imperial Field ►One of the four primary fields used by ESLL ►Home field for over 175 youth baseball players (in the 2016 spring season) Impacts half of our league With the loss of Imperial Field, 3 different divisions —half of our local baseball little league —has been impacted: ►Single A division (over 80 players) ►Rookie/T-Ball division (over 60 players) ►Challenger Division (nearly 40 players) ►(Based on 2016 registration numbers) ►(Currently using Raytheon's field.) Our Challenger Division El Segundo Little League is proud to offer a Challenger Division to people with special needs in El Segundo and other communities throughout the South Bay. The Little League Challenger Division enables boys and girls (and some adults!) with physical and mental challenges to participate in and enjoy the great game of baseball in a safe and controlled environment. ►Our ESLL Challenger Division has grown in recent years as neighboring Little Leagues have closed down their local Challenger Divisions N Challenger Division El Segundo is a baseball town El Segundo has enjoyed a long and distinguished history of successful baseball tradition. Baseball, and El Segundo Little League baseball, truly are a part of the community. ► The two most important divisions — young "Rookie" players who are first experiencing baseball, and Challenger players and their families who cherish the opportunity to see their loved enjoy these moments on the field — are the ones who will directly benefits from having a high -quality field to play on. t„El Segundo Challenger Field L�► C D.R. Horton donated $100,000 to El Segundo Little League to help build the next Challenger Field. But we don't have the land for a new park. PARK METRICS PARK LAND: Is there enough park land for the population? The county average is 3.3 park acres per 1,000 PARK ACCESSIBILITY: of population living Is park land located where of a park everyone can access it? Now much park land is available to residents in the area around each park? Our town needs more parks LOCAL NEWS •News Revamped Acacia Park in El Segundo opens to the public 0000 Jo—ny Gutie•rea and e f son Julian Cvtielw:. i exolore Acacia P— The park op. -red t3d3y afier a SE50.CO' -mo�3nt Clay structures The playground makeover cost $850.000. It was scheduled to finish ]ast sumrner, but, like with rn.an-y other projects, construction was delayed because of the coronavlrus pandemic. https://www.dailybreeze.com/202l /O4/3O/revamped-acacia-park-in-el-segundo-opens-to-the-public/ First Amendment to the Development Agreement • Original Development Agreement only had 2 Phases. Phase I was the retail center. Phase II was everything else. ® If Raytheon Developed one square foot, all of the roads must also be built at that time. ® At the August 20, 2019 City Council Meeting, staff stated Raytheon did not want to Develop Phase III. • Raytheon wanted to stager the road obligations to coincide with the construction of the different phases. Raytheon shifted the burden of improving Nash to the buyer of Phase 11. First Amendment to the Development Agreement • At the August 1, 2019 Planning Commission meeting, Raytheon stated the 7.54 acre the park would go in Phase III. • Planning Commission drafted Section 9.3 to allow the flexibility to Raytheon to provide a benefit similar to dedication the 7.54 acre park if Raytheon did not want to provide the land. (In 2019 staff valued the land at $15 million dollars). • At the August 20, 2019 City Council Meeting, Raytheon again promised the park would be in Phase III. These changes to the Development Agreement trigger the obligation of Raytheon to provide us the land for a new park now. The original terms of the Development Agreement and the First Amendment in 2019 always required that open park space be provided. The third is a requirement that 7.54 acres of land within the Specific Plan area to be used for Open Space and Recreational purposes. This is allowed to be accomplished by either Raytheon making an irrevocable offer of dedication of 7.54 acres of land to th]E City for recreational/open space area use or provide employees within the Specific Plan area permanent access to the 7.54 acre recreational area in the ESSCSP area. As an alternative to this requirement, the development agreement provides the City and Developer may agree in their discretion to explore other means of addressing this recreation/open space requirement. Raytheon's relocation of its storage facility would also trigger this requirement, but Raytheon is seeking an exception to this requirement for the relocation. Page 108 of 500 of the agenda packet Development Agreement Terms 9. Section 9 ("Recreational Access") is hereby amended to read as follows: "9.1 The Specific Plan provides for 7.54 acres of land to be used for Open Space and Recreational purposes_ This land must remain private and only available to Raytheon employees. However, should Developer sell more than twenty percent (20%) of ESSCSP Campus Area (i.e., at least 28.44 acres and not including parcels for which an irrevocable offer of dedication has made to the City which are located in Phases I through IV), to a user other than Raytheon or a Raytheon affiliate, Developer must provide non -Raytheon or Raytheon affiliated employees within the ESSCSP area with pennanent access to the 7.54-acre recreational area within the Campus. The access must be formalized tluough agreements between Raytheon and the purchaser(s) of the property. 9.2 Within 30 days of approval of a land transfer of the recreational/open space area to an alternative parcel and before a building permit may be issued on Parcel 11, the Developer must record a 20-year irrevocable offer- of dedication of a 7.54 acre recreational/open space area to the City of El Segundo, in a form approved by the City Attorney, for future potential park purposes if located on any of the lots (Parcels 1, 2, 3, 4, 7, 8, 13 or 14 of Vesting Map No. 71551) and outside the Raytheon security fenced perimeter. 9.3 The Developer acknowledges that under Sections 9.1 and 9.2, the City's strong preference is that the 7.54 acre recreational / open space be located outside Developer's security fence perimeter, so that the recreational / open space area may be accessed by the public, and that the land be developed by the Developer before the offer of dedication is recorded. However, as an alternative to the requirements of Sections 9.1 and 9.2, prior to development of Phase II1, the City and Developer may agree to explore other means of addressing the requirement for the 7.54 acre recreational / open space being located within the ESSCSP. Such alternatives may include funding for offsite recreational / open space within the City as opposed to an on -site reservation of such space. If terms and conditions of an alternative solution are mutually agreed upon by City and Developer in their respective sole discretion, the parties shall amend the Agreement and supporting documentation appropriately." Development Agreement Terms 4 2_03 } i 4 3 I FiFi '00 7" i 17 r Owl T _1 EXHIBIT 6 CONCEPTUAL SITE PLAN (EXISTING) EXHIBIT 5 CONCEPTUAL SITE PLAN (PROPOSED) Located on Page 25 of the ESSCP *Drawing to be updated with approved project plan By moving the rec/open space designation from Parcel 11 to Parcel to, Section 9.2 is triqqered now. -.j-- - -. - _- Development Agreement Terms I I KI ))) Horn a, LL:.4GLINIYJ HILL ND a F ri -,IT 1p Yii.A�F fV � • �� t N� y fi L l ;. PILASEII PfLASE 11 Y ® PHASE IV Fig" 1' rat P Construction of the new 5,000 square foot storage in Phase IV, triaaers the obligations. El Segundo New Park Location The current proposal has NO recreational / park space for our residents. Only refers to a private park. Recreational Facilities. The proposed modifications would decrease the land available for the ES S SP Raytheon employee private outdoor recreational facilities (from approximately 7.54 acres on Lot 1-1 to approximately 7.34 acres on Lots 10 and 11 ). Commission Staff Report Additionally, the £SAP included a private outdoor recreation aI facility for Raytheon employees totalling 7.54 acres within Lot 11. The Proposed Project would decrease the land available for this private facility to approximately 7.34 acres on Lots 10 a nd 11 (a decrease of 0.20 acres)_ Th is cha nge wou Id not gen erate the need for new or physically altered recreational facilities elsewhere to meet any parkland standard given it is a private facility. additionally, the Proposed Project would not generate any demand for recreational facilities given it does not include residential uses but does include various private recreational amenities for internal use. ESSCSP FEIR Environmental Impact Analysis Summary El Segundo New Park Location _ 2..m—vial O[fi.",filed L'.e - Uifx , ' 161Rtn] b1Lud Car - R.Cleafil m ! Chen SI—v EXHIBIT 5 PROPOSED LAND USE PLAN The current proposal has no recreational / park space for our residents. El Segundo New Park Location (" Q ii mapdevelopers.comlarea_findei php Map Developers iI Chicago csiam r.ar1 Home Maps- Ma Tools- Examples- Embed Maps- Mapping Software Free Trial Contact Us o P P P P PP• 9 41 Area 30500 meters', 328295 feet' 7.54 acres 0.012 miles' 0.030 km' Perimeter 697 meters . 2288 feet 0.433 miles 0.697 km Map Satellite �. Owl f { i t .t / HeyGoard sha:tC-L 443P data Z202S Imagery l'2921 CNI:S r Airbus, ilia C.Su.'a2, SFML. CA OPC, Ma:ar Technologies, U.S. Ciedogical Spmvey, USDA Fa This area is 7.54 acres of recreational/ open space. A soccer field is 1.76 acres. A baseball field is 4.5 acres Harada, Patricia From: Weaver, Tracy (City Clerk) Sent: Tuesday, December 7, 2021 6:42 AM To: *ALL CITY CLERKS Subject: Fwd: Comments from previous Raytheon Facilities Manager Scott Pozza re future park use -- 12/7/2021 City Council Meeting Agenda Item #16 Council received email and information below. —Tracy Sent from my iPhone Begin forwarded message: From: "Mitnick, Scott" <smitnick@elsegundo.org> Date: December 6, 2021 at 7:49:23 PM PST To: "Mitnick, Scott" <smitnick@elsegundo.org> Cc: "Weaver, Tracy (City Clerk)" <tweaver@elsegundo.org>, "Hensley, Mark" <mhensley@hensleylawgroup.com>, "Voss, Barbara" <bvoss@elsegundo.org>, "Allen, Michael" <mallen@elsegundo.org>, "Sassoon, Elias" <esassoon@elsegundo.org>, "McCollum, Melissa" <MMcCollum @elsegundo.org>, "Shilling, Mona" <MShilling@elsegundo.org> Subject: Comments from previous Raytheon Facilities Manager Scott Pozza re future park use -- 12/7/2021 City Council Meeting Agenda Item #16 City Council — In response to a request from a Councilmember for video copies of comments from previous Raytheon Facilities Manager Scott Pozza about the future use of the park site as it relates to future Phase 3 development, attached please find links to the previous first and second reading of the Raytheon Specific Plan Revisions which were discussed on August 20, 2019 and September 3, 2019: August 20, 2019 City Council Meeting: htt s: cit ofelse undo.sharefile.com d-slbde6aallel44939b4dl9efaaOd3l8ac September 3, 2019 City Council Meeting: https:llm.youtube.com/watch?v=RQz-100Bme0 Start at minute 49 Mr. Pozza did say: "We must solve the park issue as part of Phase 3" and made a commitment to increase public access to the park site going forward. City Council was promised that the broader issue of the public park would be resolved when a future development project involving Phase 3 or Phase 4 property comes forward. This issue was technically triggered with Item #16 on tomorrow night's City Council meeting agenda. This information will be shared with the applicant and made part of the public record. Thank you. Scott Mitnick City Manager City of El Segundo 350 Main Street I El Segundo, California 90245-3895 (o) 310-524-2301 1 (c) 310-648-2655 tt'�r��.else rustcic�.car E1SeP-wndoBusiIICSS.coEzi I DestinationElSegundo.com Harada, Patricia From: Weaver, Tracy (City Clerk) Sent: Monday, December 6, 2021 11:33 AM To: *ALL CITY CLERKS Subject: FW: City Letter - Support of Item Number C.16 - Chargers Attachments: LAC City Council - 12_06_21 - Signed AR.pdf Importance: High Council received email and letter below. Tracy Weaver I City Clerk City of El Segundo 350 Main Street El Segundo CA 90245 310.524.2305 1 tweaver@elegundo.org I www.eisegundo.or EL,EGUNDO Where big ideas take off. From: Perveen Galano<pgalano@continentaldevelopment.com> Sent: Monday, December 6, 2021 11:20 AM To: ALL ELECTED OFFICIALS <ALLELECTEDOFFICIALS@elsegundo.org>; Jennings, Mishia <MJennings@elsegundo.org> Cc: Richard Lundquist<rlundquist@continentaldevelopment.com>; Alex Rose <arose@continentaldevelopment.com>; Bob Tarnofsky<btarnofsky@continentaldevelopment.com>; allan.mackenzie@marventures.com; Lionel Uhry <lionel.uhry@marventures.com>; Mitnick, Scott <smitnick@elsegundo.org>; Hensley, Mark <mhensley@hensleylawgroup.com>; Steven Black <steven_m_black@raytheon.com>; Rich Field <richard.field@rtx.com> Subject: City Letter - Support of Item Number C.16 - Chargers Importance: High Good Morning All Please find attached letter from Alex Rose regarding tomorrow night's council item (C.16) on the Chargers. Please email with any questions. Again, our thanks to the City staff for its timely work and review in bringing forward this item for Council consideration. Thank you Perveen D. Galano Continental Development Corporation 2041 Rosecrans Avenue, Suite 200 El Segundo, CA 90245 (31o) 640-1520 X221 pgalanofu�conti nentaldevelopment.cam CD CON'IINI;NTAL DI-V1+,1,01 IMi-;,N'1' C0III'OiZNI"ION December 6, 2021 Via Email Mayor Drew Boyles Members of the City Council 350 Main St. El Segundo, CA 90245 Re: Support of Item Number C.16 Dear Mayor and Councilmembers; I am writing on behalf of Richard Lundquist, Continental Development Corporation ("CDC") and Allan Mackenzie, Mar Ventures, Inc. ("Mar"), based on my direct and intimate knowledge of the history and details surrounding Item Number C.16 on tomorrow night's City Council agenda. This letter is written in support of Item Number C.16, an application to allow construction of a practice facility and headquarters for the Los Angeles Chargers on a 13 acre parcel in the South Campus Specific Plan. As you know from extensive media coverage, the Chargers had various other locations to choose from and it speaks volumes about our community, your leadership and the City's staff that they chose El Segundo for their new home for many decades to come A quick overview: 1_ The use is a permitted use under the Specific Plan and does not exceed square footage limitations. 2. The reason for this application to the City Council (instead of only a Planning Commission level Site Plan Review) is that to accommodate the Chargers development CDC and Mar need to (a) acquire 3 additional acres from Raytheon, acreage currently part of Phase 4 of the four phase Specific Plan, and (b) implement a minor relocation of Nash Street that requires an amendment to the Development Agreement. 3. Fortunately, Raytheon has agreed to sell us the required land, despite (a) having no prior interest or intent in marketing the land for sale and (b) potentially causing increased parking pressures on Raytheon given their local growth and hiring objectives and the imminent construction of Nash Street. 4, Raytheon's consideration for this transaction is the payment of market value for their land in exchange for (a) no triggering of infrastructure requirements associated with Phases 3 or 4, including the extension of Continental Boulevard and (b) allowing the construction of the Butler Storage Buildings on Phase 4 property. 5 Without Raytheon's embrace of the use and the user, along with the sale of the 3 acres, we will be unable to bring the Chargers to El Segundo. 6. CDC/Mar will pay the City $3 million on top of all normal permit and related development fees to be used for the renovation of the Plunge, with the first million dollars due upon city approval of the Charger's project. 2044 ROSECRANS AVENUE, P.O. BOX 916, EL SEGUNDO, CALIFORNIA 90245-0916 PHONE (310) 640--520 • FAX (310) 414-9279 CONTINENTAL DEVELOPMENT CORPORATION We would ask for your support of the item before you based on the following: As noted above, the project meets the standards under the Specific Plan El Segundo will become the only city in the United States with team headquarters for four major professional football (NFL), basketball (NBA), hockey (NHL) and rugby (MLR) teams, The Chargers will add substantially to the City's name recognition and stature. The advertisement value equivalent of just the November media coverage surrounding the announcement of their potential move to El Segundo, was $6.7 million with coverage from 137 separate North American and overseas media outlets. This single announcement generated considerably more value than the City's entire annual economic development budget. A typical office or other commercial development would not receive anywhere close to this level of media attention. 4. These benefits will be ongoing as will additional municipal fiscal benefits such as increased property tax, enhanced transient occupancy tax (as the team will generate substantial overnight stays in El Segundo hotels), sales tax (from local purchasing), and restaurant sales. 5. The headquarters building is a spectacular and cutting -edge design, undertaken by the acknowledged leaders in sports architecture, Gensler Sports. 6. Raytheon will enter into a binding agreement with the City through 2036 (with automatic extensions thereafter) to allow greater use -- at no cost -- of their existing 14 acre private, employee recreational fields by the City Recreational Department. Additionally, Raytheon will build approximately 30 additional parking spaces to accommodate increased and safer use of the recreation area by the community. Raytheon will also be responsible for maintenance of the fields. 7. Approval of the project will ensure and accelerate completon of Nash Street between El Segundo Blvd. and Hughes Way, with an improved design and quicker completion relative to the existing entitlements. This will provide a key north -south linkage which will be further enhanced by completion of Park Place. Nash Street and Park Place will both have separate bike lanes, enhancing bicycle circulation within the City, and potentially contributing to an extension of the Aviation Greenway project_ In summary, the project will provide the City with benefit in excess of any other conceivable development. El Segundo will quickly become America's #1 home for professional sports — currently home to the Lakers, Kings and LA Giltinis. The Chargers intend to become contributors to our El Segundo schools and our recreation programs while energizing our local economy. Some concerns have been expressed and we want to address those head on -- The project is relatively low density and underutilizes the site, thereby resulting in less revenue to the City. The Specific Plan allows for transfer of development rights and any surplus development rights would logically be transferred to adjacent parcels within the Specific Plan area, and enabling, based on market conditions, higher densities which would offset lower densities on the subject property. Additionally, the project offers the unique financial benefits noted above. 2 The original project entitlements and Development Agreement entered into in 2016 were not in the best interest of the city. The only comparable project in the city is Campus El Segundo, a 57 acre project developed between 2006 and 2019. Campus El Segundo did not require any (JD CONTINENTAL AL I) FVl+,[,OI'M I-N7' CORI'ORKI`ION upfront payment by the developers compared to the 57 million in payments Raytheon and the project will be making to the City. The Campus soccer fields parcel was transferred at appraised value. This Specific Plan requires a $0.50 per square foot premium payable to the City -- Campus El Segundo has no such requirements. This administration has negotiated a much better arrangement than previous administrations. 3. The project will result in a further deferral of Raytheon's obligations to provide a park. Tlie project actually accelerates and enhances community access to park and active open space 4. The project eliminates the Coral Circle access. The project merely realigns this access and does not eliminate it. S. The project delays Nash St. The project actually accelerates Nash. St to mid-2024 because it is part of the Chargers' project. In summary, the proposed project offers the City a unique and economically beneficial use which conforms to the requirements of the Specific Plan and is of a cutting -edge design. Raytheon provides a commitment to immediate public access to its recreational facilities at no cost to the city. And there is no cost to El Segundo in bringing the Chargers to town — unlike Jacksonville, Florida which provided $60 million in taxpayer funded incentives to attract their football team. If the staff recommendation is rejected, these benefits will not accrue nor will the City receive the $3 million for the Plunge renovation And of course, the Chargers will need to find another home. We and our partners at RayShejDn greatly appreciate your positive consideration of this application- We thank you for all you -for the City, its residents and businesses - Sincerely, ` Alex R e Senior Vice President, Development Copies to Scott Mitnick, City Manager Mark Hensley, City Attorney Steve Black, Raytheon Technologies Rich Field, Raytheon Technologies Richard Lundquist, Continental Development Corporation Allan Mackenzie, Mar Ventures Inc. Robert Tarnofsky, Continental Development Corporation Lionel Uhry, Mar Ventures Inc.