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ORDINANCE 1678ORDINANCE NO. 1678 AN ORDINANCE APPROVING AND ADOPTING A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT NO. 5751, TO AMEND THE ALLOWABLE USES AND ITS CONCEPTUAL SITE PLAN AS ALTERNATIVE NO. 4 FOR BEACH CITIES MEDIA CAMPUS (Environmental Assessment No. EA-1391 and Amendment No. 1 to Development Agreement No. DA 5751) The City Council of the City of El Segundo does ordain as follows: SECTION 1: The City Council finds and declares as follows: A. On August 6, 2019, the City of El Segundo City Council approved Environmental Assessment No. EA-1201, General Plan Amendment No. GPA 17-01, Zone Change No. ZC 17-01, and Development Agreement No. DA 5751. This action changed the land use designation and zoning of the property from Commercial Center (C-4) to Urban Mixed Use South (MU-S), allowed a development concept that included a mixture of alternatives for creative office, retail/cafe, and studio and production facility uses, and certified an Environmental Impact Report (EIR) for the development of the property and authorized the City to enter into a development agreement with the property owner; B. Development Agreement No. 5751 and Conditions of Approval were originally approved (EA-1201) by the City Council on August 6, 2019; C. Through the Development Agreement, the property owner voluntarily waived its rights to develop the property with certain uses which are allowed or conditionally allowed in the MU-S zone, and limited the FAR to 1.13, which is less than the 1.3 FAR allowed in the MU-S Zone; D. On August 20, 2025, Andrew Brady on behalf of property owner LA RE DEVELOPMENT HOLDINGS, LLC (hereinafter Applicant) filed request to amend certain section of Development Agreement No. 5751, including the allowed uses at the site; E. The proposed Development Agreement (DA) Amendment modifies the allowed uses to include a Professional Sports Team Headquarters and Training Facility use and its Conceptual Site Plan as alternative no. 4; F. The amendment request was reviewed by the City's Community Development Department for, in part, consistency with the General Plan and conformity with the El Segundo Municipal Code (ESMC); G. The City reviewed the amendments environmental impacts under the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., "CEQA") Ordinance No. 1678 Page 1 and the regulations promulgated thereunder (14 Cal. Code of Regulations §§15000, et seq., the "CEQA Guidelines"); H. On October 6, 2025, public notices were mailed to all property owners and occupants within a 300-foot radius from the site, providing a 10-day time period for the submittal of comments in accordance with ESMC § 15-28-6(A); I. On October 9, 2025, a public notice was published in the El Segundo Herald newspaper, providing a 10-day time period for the submittal of comments in accordance with ESMC § 15-28-6(A); J. The item was duly noticed for the October 23, 2025, Planning Commission meeting. However, due to the lack of quorum this item was continued to be considered by the Planning Commission on November 13, 2025; K. On November 13, 2025, the Planning Commission held a duly noticed public hearing to receive public testimony and other evidence regarding the draft ordinance including, without limitation, information provided to the Planning Commission by city staff; and adopted Resolution No. 2973 recommending that the City Council approve this Ordinance; L. On November 3, 2025 public notices were mailed to all property owners and occupants within a 300-foot radius from the site, providing a 10-day time period for the submittal of comments in accordance with ESMC Section 15-28-6(A); M. On November 6, 2025 a public notice was published in the El Segundo Herald newspaper, providing a 10-day time period for the submittal of comments in accordance with ESMC Section 15-28-6(A); N. On November 18, 2025 the City Council held a duly noticed public hearing and considered the information provided by City staff and public testimony regarding the Ordinance; and O. This Ordinance and its findings are made based upon the entire administrative record including, without limitation, testimony and evidence presented to the City Council at its December 3, 2025 hearing and the staff report submitted by the Community Development Department. SECTION 2: Factual Findings and Conclusions. The proposed amendments to Development Agreement No. 5751 are listed in Exhibit A, attached hereto, and incorporated herein by this reference.. SECTION 3: General Plan Findings. As required under Government Code § 65860, the City Council finds as follows: A. The approved Development Agreement No. 5751 was found to be consistent with the General Plan per Ordinance No. 1587. The proposed amendments do not alter Ordinance No. 1678 Page 2 any of the General Plan findings made in the original approval. Approval of the Development Agreement amendment will further the goals, objectives, and policies of the General Plan and will not obstruct their attainment. SECTION 4: Amendment to Development Agreement Findings. In accordance with Government Code §§ 65867.5 and 65868 and Resolution No. 3268, adopted June 26, 1984, the City Council finds as follows: A. The Development Agreement Amendment is consistent with the General Plan of El Segundo and there are no applicable Specific Plans. The amended Development Agreement continues to be a 10-year agreement that provides the following public benefits in exchange for vested development rights: Consistent with the objectives, policies, general land uses, and programs specified in the General Plan. Promotes a balance of land uses that provide for a range of employment opportunities while maintaining compatibility with surrounding development. Encourages development that contributes to El Segundo's role as a major employment and business center in the South Bay. • Foster land uses that enhance El Segundo's identity as a destination for business, recreation, and entertainment. The Development Agreement amended uses are compatible with the uses authorized in and regulations prescribed for the Mixed -Use South (MU-S) zone in which the real property is located. The Development Agreement Amendment is in conformity with the public convenience, general welfare, and good land use practice as it provides expanded commercial opportunities in a synergistic manner with the previously approved site plan review and adjacent land uses. • The proposed amendment will not be detrimental to the health, safety and general welfare. The proposed amendment to the Development Agreement will not adversely affect the orderly development of property or the preservation of property values. • The development standards prescribed in the MU-S zone and development agreement will result in the orderly development in the future. All mitigation measures will be implemented at the time and place impacts occur. Ordinance No. 1678 Page 3 SECTION 5: Environmental Assessment. In accordance with the provisions of the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, the proposed Ordinance is exempt from further environmental review pursuant to CEQA Guidelines §15060(c)(3), as the Ordinance does not constitute a "project" within the meaning of CEQA §15378 and the action of amending the language has no potential to result in a direct or reasonably foreseeable indirect physical change to the environment. In addition, the Ordinance is exempt under CEQA Guidelines §15061(b)(3), the "common sense" exemption, as the action is limited to minor amendments to the existing Development Agreement, does not authorize or approve any physical development, and there is no possibility that the action may result in a significant effect on the environment. Any future development proposed pursuant to the Development Agreement would be subject to separate site plan review pursuant to Development Agreement No. 5751, Section 4.15, and City Code Chapter 25 (Site Plan Review). Pursuant to City Code § 15- 25-3, site plan review is a discretionary action that requires separate environmental review in accordance with CEQA and the CEQA Guidelines when a site plan review application is submitted for a development project. Accordingly, no further environmental review is required for the DA Amendment pursuant to CEQA Guidelines §15168(c)(2). SECTION 6 Approvals and Authorization. The City Council hereby approves and adopts the First Amendment to Development Agreement No. 5751, attached to this ordinance as Exhibit "A". 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: 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 amendment. 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 amendment is based on the best information currently available. It is inevitable that in evaluating a amendment that absolute and perfect knowledge of all possible aspects of the amendment will not exist. One of the major limitations on analysis of the amendment 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 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. Ordinance No. 1678 Page 4 SECTION 10: Effectiveness of ESMC. 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 11: Recordation. The City Clerk, or designee, is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of El Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 12: 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 13: Effective Date. This Ordinance will become effective 30 days following its passage and adoption. PASSED AND ADOPTED this 3rd day of December, 2025. Chris Pimentel, Mayor ATTEST: Susan Truax, tity Cl rk APPROVED AS TO FORM Mark D. He ley, City Attorney Ordinance No. 1678 Page 5 Certification STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Susan Truax, City Clerk of the City of El Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. 1678 was duly introduced by said City Council at a regular meeting held on the 18t" day of November, 2025, 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 3rd day of December, 2025, and the same was so passed and adopted by the following vote: AYES: Mayor Pimentel, Mayor Pro Tern Baldino, Council Member Giroux, and Council Member Keldorf NOES: None ABSENT: Council Member Boyles ABSTAIN: None WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 3rd day of December 2025. usan Truax, City Clerk of the C t ; of El Segundo, California Ordinance No. 1678 Page 6 Exhibit A Amendment No. 1 to Development Agreement (DA) No. 5751 Ordinance No. 1678 Page 7 Agreement No. 5751A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BEACH CITIES MEDIA CAMPUS (FORMER AIR PRODUCTS SITE) THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (the "Amendment") is dated as of L, , 2025 by and between the CITY OF EL SEGUNDO, a municipal corporation (the "City"), and LA RE DEVELOPMENT HOLDINGS, LLC, a Delaware limited liability company (the "Developer"), collectively, the "Parties." RECITALS A. City and Rosecrans-Sepulveda Partners 4, LLC entered into a Development Agreement dated August 20, 2019 (the "Agreement") and recorded on December 11, 2019 in the official records of Los Angeles County as Instrument No. 20191380759. B. On or about September 15, 2025, pursuant to Sections 3.2 and 3.3 of the Agreement, Rosecrans-Sepulveda Partners 4, LLC assigned all of its rights, interests, duties, obligations and requirements under the Agreement to Developer, and Developer assumed all rights, interests, duties, obligations and requirements of Rosecrans-Sepulveda Partners 4, LLC under the Agreement. C. The Parties now wish to amend the Agreement to allow for an additional development alternative that would allow for professional sports team headquarters and practice facility uses within the Project. D. Each of the initially capitalized terms used in this Amendment and not otherwise defined in this Amendment shall have the meaning given to it in the Agreement. NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. The definitions of "Beach Cities Media Campus," "Media Campus," "Alternatives," "Project," and "Site Plan" set forth in Section 1 of the Agreement are hereby deleted in their entirety and replaced with the following, respectively: "Beach Cities Media Campus" or "Media Campus" means development of the Property with a development of a mixture of creative office, retail/caf6, and studio and production facilities, professional sports team headquarters and training facility that would consist of a maximum of. 240,000 square feet of creative office/professional sports team headquarters and training facility with the option to incorporate a roof deck; 66,000 square feet of studio and production facilities building; 7,000 square feet of retail/cafe uses for a total of 313,000 square feet of floor area with an associated FAR of 1.13 to l; and the provision of parking Agreement No. 5751A spaces in a combination of surface parking, underground parking, and a parking structure all as shown in the Conceptual Site Plan attached hereto as Exhibit B. "Alternatives" means Alternatives 1, 2, 3, or 4 as described below: Alternative 1 shall consist of the following development components: (a) 25,000 square feet of retail space; (b) 100,000 square feet of general office space with the option to incorporate a roof deck; and (c) 188,000 square feet of studio and production facilities, as shown in the Site Plan attached to the Agreement as Exhibit C. Alternative 2 shall consist of the following development components: (a) 100,000 square feet of research and development; (b) 10,000 square feet of retail; and (c) 100,040 square feet of creative office space with the option to incorporate a roof deck, as shown in the Site Plan attached to the Agreement as Exhibit D. Alternative 3 shall consist of the following development component: (a) 261,990 square feet of creative office space with the option to incorporate a roof deck, as shown in the Site Plan attached to the Agreement as Exhibit E. Alternative 4 shall consist of the following development component: (a) up to 65,000 square feet of professional sports team headquarters and practice facilities uses with the option to incorporate a roof deck; (b) 200,000 square feet of office facility uses; and (c) 7,000 square feet of retail/cafe uses. "Project" means the development of the Property for the Beach Cities Media Campus or one of the Alternatives in substantial conformance with the site plans attached to the Agreement and this Amendment as Exhibits B through F, in accordance with the Project Approvals and Applicable Rules. "Site Plan" refers to the conceptual development plans for the Beach Cities Media Campus and each of the four Alternatives as shown on Exhibits B through F, attached hereto and incorporated herein by reference. 2. Section 2.6 of the Development Agreement is hereby deleted in its entirety and replaced with the following: 2.6 This Agreement is intended to provide flexible entitlements to develop the Media Campus or one of the four Alternatives, within the parameters set forth herein and subject to the terms and conditions hereof, to meet the changing market demands that are likely to occur throughout the Term of this Agreement. Agreement No. 5751A 3. Section 4.13.1(a) of the Development Agreement is hereby deleted in its entirety and replaced with the following: a. Minor Modifications include: i. A modification to the Site Plan for the Media Campus, or the Alternatives, provided the Director determines, in his/her discretion, that the Site Plan is substantially similar to the approved Site Plans attached hereto as Exhibits B through F; the modification complies with the Development Constraints; and there is no change which would qualify as a Major Modification under section 4.13.2 below; ii. A different mix of retail space, general or creative office space, studio and production facilities, research and development uses, or professional sports team headquarters and practice facilities uses provided that it meets the Development Constraints and the Director determines that no subsequent or supplemental EIR is required and any new impacts can be mitigated; and iii. Any other change that does not qualify as a Major Modification as defined below. 4. Exhibit F ("Assignment and Assumption Agreement") to the Agreement is hereby redesignated as Exhibit G. 5. Anew Exhibit F ("Site Plan for Alternative 4"), copy of which is attached hereto and incorporated herein by this reference, is hereby added to the Agreement. 6. Section 19 of the Agreement is deleted in its entirety and replaced with the following: Notices. Any notice that a party is required or may desire to give the other must be in writing and must be sent by: (i) personal delivery; (ii) deposit in the United States Mail, postage prepaid; (iii) registered or certified mail, return receipt requested; (iv) overnight delivery using a nationally recognized overnight courier providing proof of delivery; or (v) electronic delivery, evidenced by confirmed receipt, addressed as follows: If to City: City of El Segundo 350 Main Street El Segundo, CA 90245 Attn: City Manager Email: dhgec)r gti cvdseL gLic) qrg With a Copy to: City of El Segundo 350 Main Street El Segundo, CA 90245 Attn: Director of Planning and Building Safety Agreement No. 5751A Email:��1��t'�ry� With a Copy to: Hensley Law Group 2600 W. Olive Street, Suite 500 Burbank, California 95105 Attn: Mark D. Hensley, Esq. Email:z'wa� To Developer: LA RE DEVELOPMENT HOLDINGS, LLC Attn: Tim Katt 1900 W Loops#1300 Houston, TX 77027 Email: tim.katt@transwestem.com With a Copy to: DLA Piper LLP (US) Attn: Andrew Brady 2000 Avenue of the Stars Suite 400 Los Angeles, CA 90067 Email: Andrew.brady@us.dlapiper.com 7. Recognition of Assignment. Pursuant to Sections 3.2 and 3.3 of the Agreement, all rights duties and obligations under the Agreement were assigned from Rosecrans- Sepulveda Partners, 4 LLC to LA RE Development Holdings, LLC, a Delaware limited liability company on or about September 15, 2025 ("Assignment"). The Parties hereby recognize that LA RE Development Holdings, LLC has assumed all rights, interests, duties, obligations and requirements of Developer under the Agreement. The Parties further recognize that the Assignment also includes an assignment and assumption of all rights, interests, duties and obligations to LA RE Development Holdings, LLC with respect to entitlements, permits and approvals for the Project, and to any and all applications for permits, inclusive of all plans, submittals and fees submitted and paid to City related to same. The Parties agree to hereafter work in good faith to take any reasonably required steps to ensure the assignment and assumption of all rights, duties, obligations and requirements under the Agreement are fully and properly effectuated. 8. Ratification. Except as expressly amended by this Amendment, the Agreement is in full force and effect and is hereby ratified and confirmed by the Parties in all respects. 9. Counterparts. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall be deemed to be one and the same instrument. A facsimile transmission of an original signature shall be deemed to be an original signature. IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed as of the day and year first above written. Agreement No. 5751A CITY: The City of E1 Segundo, a municipal corporation. By: _ �. .�........ ._ .. Chris Pimentel, Mayor DEVELOPER: LA RE Development Holdings, LLC By: . a ....._ Andrew Brady, its: Authorized _* toil .. XTES City 0 f rIc City of El Soglljndo Agreement No. 5751A E C O Mco Q) w 0 c V UJ vi ry C as a v �i, EXHIBIT F SITE PLAN FOR ALTERNATIVE 4 30