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2019-09-03 CC Agenda - Public Communication related to Item #4 - RaytheonHarada, Patricia From: Weaver, Tracy (City Clerk) Sent: Tuesday, September 03, 2019 3:36 PM To: *ALL CITY CLERKS Subject: FW: Raytheon South Campus Specific Plan Development Agreement Follow-up Information (City Council Consent Agenda Item #4) Attachments: Raytheon DA Time Line.pdf Please post to website and distribute to Council and the public. Thanks, Tracy From: Mitnick, Scott Sent: Tuesday, September 03, 2019 3:33 PM To: Weaver, Tracy (City Clerk) Cc: Lee, Sam; Hensley, Mark (City Attorney); Berkman, Ken; Voss, Barbara; 'Scott Pozza'; McClain, Gregg Subject: Raytheon South Campus Specific Plan Development Agreement Follow-up Information (City Council Consent Agenda Item #4) City Council — Below is Raytheon's response to the following two questions: 1. Is Raytheon willing to enter into a possible separate "shared park use agreement?" 2. Is Raytheon willing to pay upfront for off-site traffic mitigation improvements? In addition, attached is a copy of this project's timeline since 2010. Staff is prepared to provide a quick overview of this project's history, current status, public benefits, and potential separate "shared park use agreement" at tonight's City Council meeting. Scott Pozza from Raytheon will also be attendance to answer questions. Please advise if any questions and/or comments in the interim. Thanks, Scott Mitnick City Manager From: Scott Pozza jmailto:Scott Pozza@ravtheon.comj Sent: Tuesday, September 03, 2019 3:03 PM To: Mitnick, Scott <smitnick(@elseRundo.org> Subject: Raytheon's Response to Your Questions re ES South Campus Specific Plan Development Agreement Scott M., Thanks again for the call on Friday, August 30th, and the subsequent conversations with respect to Development Agreement No. DA 11-02 and the EI Segundo South Campus Specific Plan. As I have mentioned to everyone, this is a key component of Raytheon's overall 5 year plan and the timing is absolutely critical to get this approved at this time. With this goal in mind, I have given some thought on how we could make the existing private Raytheon park more accessible in the interim before any Phase 3 development occurs which is when the final resolution of permanent future park would have to occur. Since Raytheon has had success with allowing EI Segundo Little League to use of our fields, my thought is to open the park up to more organized events and activities. This could be sports (baseball, softball, lacrosse, tennis, soccer, horseshoe tournaments, etc.), adult sports leagues, group socials or picnics, Arts & Craft Fairs, etc. Maybe even using a parking lot for a car show or something like that. Raytheon already closes off parking lots to help with parking needed for EI Segundo High School events and EI Segundo Fire Department training activities. There would have to be some controls and some that initially come to mind are: ■ Requests must be made in writing and in advance to be approved by Raytheon • Some form of documentation would have to be signed to address liability (similar to the Little League use) • Access for these events/activities would be limited to after normal work hours on weekdays and on weekends ■ Scheduled Raytheon uses would have priority • May have to limit number of concurrent activities/events or number of activities/events per day from a security (federal government compliance) perspective My thoughts are that allowing these types of uses would be a public benefit to the community and also will continue to strengthen Raytheon's community support. I think that any organized event will be considered but we can't have individuals randomly coming onto the property to use the park unless they are part of an approved use. We are a federal government contractor and, as such, have some legal limitations that we have to remain in compliance with. Having shared all this, there are a lot of activities that Raytheon would be able to support with these basic guidelines and I am personally willing to assign a single point -of -contact at Raytheon to support this and help coordinate within Raytheon and with the City's Recreation and Park staff. Although we do not really have a park manager, per se, I would hope that we could work with your Recreation and Park Department to help initially in setting up fields correctly, scheduling, etc. As this matures, it would be mutually beneficial to be able to share resources like staff time and, depending upon the level of activity, potentially negotiate some future mutually agreed upon cost sharing agreement, if needed for increased repair and enhanced recurring maintenance. think this would be a great opportunity for us to work together and Raytheon's strong commitment to the City of EI Segundo. Raytheon is also committed to make this happen quickly. You also asked about pre -paying the offsite traffic mitigation costs, estimated between $3M and $41VI spread over multiple off-site intersections with respect to future impacts. Even though the developer has that obligation, the timing and amount is triggered by the actual amount of development and additional trips generated by that specific development at a future date. In other words, these costs are dependent upon other events happening in the future. As a federal government defense contractor, pre -paying these future costs would not be allowable and would not pass a government accounting audit since the basis for the costs has not occurred. This is different from the $41VI obligation we agreed to pay because it was not tied to any specific event or trigger, and in fact had a timing schedule of payments specifically articulated in the Development Agreement. Thank you for the opportunity to partner with the City on this exciting endeavor. I am committed to working with you going forward as determined by City Council. Regards, Scott Pozza Director, GBS Facilities and Real Estate Raytheon Space and Airborne Systems 310.647.8880 office 310.628.3377 mobile Scott Pozz@6Dravtheon.com Raytheon—EI Segundo South Campus Specific Plan Deal Points Timeline Dec 7, 2010 First meeting with Raytheon on possible specific plan Jan 20, 2011 Meeting with future applicant at Raytheon campus Feb 2, 2011 First draft of DA submitted Dec 12, 2011 Completed application submitted May 2012 Deal points identified as: 1) extent of control over future development; 2) recreational amenities; 3) ESB bike lane; 4) bike station; 5) Trigger for Nash St; 6) Coral Circle extension; 7) Continental Blvd extension; 8) Future substation; 9) design guidelines; 10) development standards; and 11) CEQA. Jun 19, 2012 City Council study session Nov 20, 2012 Project introduced to City Council May 2, 2013 Deal points: 1) Nash St timing; 2) Continental Blvd public access; 3) Street lighting and maintenance; 4) ESB improvements; 5) ESB bike path; 6) Nash bike lanes; 7) bike station; 8) ped easements to Metro; 9) utility access; 10) sewer capacity; 11) off-site water lines; 12) water cost offsets; 13 public access to rec area; 14) impact fees. May 16, 2013 Transportation Improvement District added to deal points Dec 17, 2013 Agreements on most issues, City drops water costs offsets; transportation improvement district changed to DIF credits Jul 3, 2014 Implementation of mitigation measures added to deal points Jul 14, 2014 Planning Commission study session on specific plan Aug 6, 2014 Deal points issues resolved Feb 12, 2015 Planning Commission hearing. Major issues discussed were: $1M payment (traffic impacts?); timing of Nash Street extension; the justification for subdivision; use of advance payments and credits as "public benefits"; critique of staffs' negotiations on DA; pool/aquatics center; Raytheon's support for ES school district (lack of); and Raytheon's plans for future in ES. No decision was made. Oct 22, 2015 Planning Commission continued hearing. Major issues discussed: open space and park; Raytheon's presence in community and ES school district; sponsorships of teams and events; traffic; phasing (phase 3 discussed); and financial compensation as offset for impacts. Recommended SP be approved, but not DA. Recommended $0.50/sf fee; $3M payment to GF; and $5M Nash St penalty after 10 years. Nov 17, 2015 City Council hearing. Recommended increase PC $3M to $4M, include language about park. Continued. Dec 1, 2015 City Council continued hearing to address DA edits by Raytheon. Dec 15, 2015 City Council adopted Reso for EIR and introduced Ord for DA. Jan 19, 2016 City Council final approvals. Aug 1, 2019 Planning Commission approved Amended Development Agreement Aug 20, 2019 City Council approved First Reading of Amended Development Agreement Sept 3, 2019 City Council to consider Second Reading of Amended Development Agreement