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SUBJECT: Second Reading and Final Adoption of Ordinance Amending the Term of the Development Agreement from 25 Years to 40 Years for Bellevue Ranch, Initiated by Baxter Ranches LLC and Stonefield Home, Inc.
REPORT IN BRIEF
Second reading to modify the Development Agreement for Bellevue Ranch to extend the term of the Agreement for the remaining portions of Bellevue Ranch West (generally north of Cardella, west of G Street) from 25 years to 40 years.
RECOMMENDATION
City Council - Adopt a motion adopting Ordinance 2516, An Ordinance of the City Council of the City of Merced, California, amending Ordinance No. 1906 to modify the term of the development agreement for Bellevue Ranch for the remaining portion of Bellevue Ranch West from 25 Years to 40 Years.
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ALTERNATIVES
1. Approve as recommended by Planning Commission and staff; or,
2. Approve, subject to modifications by the City Council; or,
3. Deny; or,
4. Refer back to staff for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in motion).
AUTHORITY
Government Code Section 65865.1 and Merced Municipal Code Section 20.86 spell out procedures for adopting and amending Development Agreements.
CITY COUNCIL PRIORITIES
Infill Development is listed as a priority in the FY 19-20 Council Goals and Priorities and this project relates to the continuation of development in the Bellevue Ranch area.
DISCUSSION
Summary
The applicants propose to modify the Development Agreement for Bellevue Ranch to extend the term of the Development Agreement from 25 years to 40 years for the remaining portions of Bellevue Ranch West. The Original Agreement was modified in 2009 for a previous owner. The current property owners have made substantial progress in the development of Bellevue Ranch West and are up to date on their assessment obligations. City staff is recommending that the Development Agreement be modified to extend the term from 25 to 40 years, the original term of the agreement.
Background
The Bellevue Ranch Master Development Plan was originally adopted on May 15, 1995, by City Council Resolution #95-34, and the associated Development Agreement was adopted by Ordinance #1906 on June 5, 1995, and became effective on July 5, 1995, for a term of 40 years or until July 5, 2035. The Bellevue Ranch Master Development Plan (BRMDP) covered approximately 1,385 acres generally bound by Cottonwood Creek on the south, R Street (extended) to the west, G Street to the east, and Old Lake Road (extended) to the north. The BRMDP included a variety of land uses including single-family residential, multi-family, commercial, office, schools, parks and open space, a transit station, and a fire station.
The Development Agreement was amended twice in 1996. The First Amendment to the Development Agreement was approved by Ordinance #1929 on February 21, 1996, and granted a 6-month extension to the deadline for the initial annexation to be completed. The Second Amendment was approved by Ordinance #1944 on September 3, 1996, and granted another 6-month extension for the annexation to be completed.
Bellevue Ranch was subsequently annexed to the City in two segments: 1) approximately 801 acres including all the land south of Bellevue Road on July 11, 1997; and, 2) approximately 607 acres north of Bellevue Road on October 26, 2000, which included approximately 23 acres which were not part of the Bellevue Ranch MDP.
In about 2003-04, Bellevue Ranch was divided into three portions and divided up among three different property owners: 1) Bellevue Ranch West, made up of approximately 500 acres encompassing all the land south of Cardella Road and the portion north of Cardella Road up to Bellevue Road west of M Street; 2) Bellevue Ranch East, made up of approximately 285 acres north of Cardella Road up to Bellevue Road east of M Street; and, 3) Bellevue Ranch North, made up of approximately 580 acres, north of Bellevue Road.
In 2009, the Planning Commission and City Council held an annual review of the Bellevue Ranch Development Agreement in relation to the development of Bellevue Ranch West and found that Woodside, the property owner at the time, was not in “good faith compliance” with the terms of the Development Agreement, including failure to construct a bike path along Cottonwood Creek from R to G Streets and being delinquent in payments to the Communities Facilities District (CFD) for maintenance of infrastructure and impacts on public safety. The City Council subsequently adopted Ordinance #2331 on May 4, 2009, which terminated the Development Agreement for Villages 1, 2, 3, 4, 5, and 10, and modified the term of the Development Agreement from 40 years to 25 years for the remaining portions of Bellevue Ranch West.
Attachment 3 contains the Original Development Agreement along with the 1st and 2nd Amendments adopted in 1996, and modifications adopted by Ordinance #2331 in 2009. Attachment 1 consists of several maps showing the project location, the General Plan designations for the entire Bellevue Ranch area, and the current plans for Bellevue Ranch West.
Most of the single-family subdivisions in Bellevue Ranch East have developed, but the multi-family and commercial adjacent to Bellevue Road have remained vacant. Villages 1, 2, 3, 4, and 5 (single-family subdivisions south of Cardella), and Village 10 (single-family subdivision north of Cardella) of Bellevue Ranch West have also developed.
In 2012, Baxter Ranches LLC and Stonefield Home, Inc. acquired the remaining portions of Bellevue Ranch West and also acquired Bellevue Ranch North.
Bellevue Ranch West Development Progress
In 2012, Baxter Ranches LLC and Stonefield Home, Inc. acquired the remaining portions of Bellevue Ranch West as well as Bellevue Ranch North. Since that time, the property owners have been making steady progress on the development of Bellevue Ranch West and North. In 2016, the City approved Tentative Subdivision Map #1304 for Village 12, for 242 single-family lots just north of Village 10. Village 12 has begun to develop with Final Maps recorded for all seven Phases. In 2018, Tentative Subdivision Map #1307 was granted for Lot A of Village 12 for another 43 single-family lots in place of a park and school site which were moved to another portion of Bellevue Ranch West. (A Final Map was recorded for Village 12 Lot A as well.) Approximately 36 homes have been completed and sold in Village 12 thus far. Also in 2018, Tentative Subdivision Map #1308 was approved for 14 large lots in Villages 17 through 22, the first step in developing those properties, with a Final Map subsequently recorded. In 2019, Tentative Subdivision Map #1310 was approved for Villages 17 and 18 for 249 single-family lots, with Final Map applications filed for Village 17 (61 lots) and Village 18A, Phase 1 (45 lots).
City staff has also been working with the developers on a weekly basis for over 2 years on various future amendments to the Master Development Plan to reflect changes to the MDP to address critical infrastructure financing and phasing and changes in circulation patterns, recently identified wetlands in Bellevue Ranch North, the change in the configuration of Fahrens Creek (the original proposal to channelize the creek along R Street will no longer be possible given wetlands and habitat issues), etc. The developers and City staff hope to be able to bring a comprehensive amendment to address all these issues to the Planning Commission and City Council for consideration in the near future.
Progress has also been made on the development of Bellevue Ranch North with the following Tentative Subdivision Maps approved: 1) #1280 for Villages 23-36 for 30 large lots, originally approved in 2006 and extended in 2018; and, 2) #1305 for Village 23 (58 single-family lots) in 2019. Final Map applications have been filed for Villages 23, 21, and 29.
Assessments
In 2009, the Development Agreement for the remaining portions of Bellevue Ranch West was modified from 40 years to 25 years for failure to install required infrastructure and for delinquent assessments by the previous property owner, Woodside Homes. In checking with the City’s Finance Department, the current property owner, Baxter Ranches LLC and Stonefield Home, Inc., is up to date through the most recent reporting period on their assessments.
Development Agreement Findings
Merced Municipal Code (MMC) Chapter 20.86--Development Agreements (Attachment 2) spells out procedures for adopting and amending Development Agreements, which includes the requirement for public hearings before the Planning Commission and City Council for adoption and amendments (MMC 20.86.050-Public Notice and Hearings and MMC 20.86.140-Amendment or Termination). Per Merced Municipal Code Section 20.86.080, the City Council may approve an application for a Development Agreement only if the following finding can be made.
MMC 20.86.080-Finding
1. The City Council may approve an application for a Development Agreement only if the Development Agreement is consistent with the General Plan and any applicable specific or community plan.
The proposed project complies with the General Plan designations of Regional Community Commercial (RC), High Medium Density Residential (HMD), Low Medium Density Residential (LMD), Low Density Residential (LD), Open Space/Park Recreation (OS-PK), and School (SCH); and the Master Development Plan for Bellevue Ranch (adopted on May 15, 1995).
In addition to the Finding above, Merced Municipal Code Section 20.86.030-Review Authority, states that “Procedures for considering Development Agreements are spelled out in this chapter and in City Council Resolution No. 1995-06, adopted on February 6, 1995. Resolution No. 1995-06, in Section 301, spells out that the Planning Commission’s recommendation to the City Council should include the following determination whether or not the Development Agreement proposed:
City Council Resolution No. 1995-06 Findings
1. Is consistent with the objectives, policies, general land uses and programs specified in the general plan and any applicable specific plan?
The proposed project complies with the General Plan designations of Regional Community Commercial (RC), High Medium Density Residential (HMD), Low Medium Density Residential (LMD), Low Density Residential (LD), Open Space/Park Recreation (OS-PK), and School (SCH); and the Master Development Plan for Bellevue Ranch (adopted on May 15, 1995).
2. Is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located?
The proposed project complies with the uses and regulations in the zoning classification of Planned Development (P-D) #42. The uses and regulations for Planned Development #42 match those of the Bellevue Ranch Master Development Plan.
3. Is in conformity with public convenience, general welfare, and good land use practice?
The Bellevue Ranch Master Development Plan was adopted in 1995 and contains a mixture of residential and commercial land uses that closely match the Urban Village Land Use Policies of the Merced Vision 2030 General Plan. Therefore, the Master Plan reflects the City’s goals regarding land use and development as prescribed in the General Plan and thus represents good land use practice. There is nothing in the Master Plan or Development Agreement that interferes with public convenience or the general welfare.
4. Will be detrimental to the health, safety, and general welfare?
Since the Bellevue Ranch Master Development Plan and its associated Development Agreement conforms to the City’s General Plan and Zoning Ordinance, development within the area will not be detrimental to the health, safety, or general welfare.
5. Will adversely affect the orderly development of property or the preservation of property valued?
The Bellevue Ranch Master Development Plan and the associated Development Agreement were designed to ensure the orderly development of the property and the preservation of property values by addressing land use, circulation, public facilities and services, parks and open space, and infrastructure phasing and financing for all future development in the area.
Environmental Clearance
Planning staff has conducted an environmental review (#20-12) of the project in accordance with the requirements of the California Environmental Quality Act (CEQA), and a Categorical Exemption is being recommended (Attachment 4).
Planning Commission Action
On June 24, 2020, the Planning Commission will hold a special meeting and a public hearing to consider the modification to the Development Agreement. Information about the Planning Commission’s action will be made available to the City Council at the June 29, 2020, City Council meeting.
IMPACT ON CITY RESOURCES
No impacts on City resources with the adoption of this modification to the Development Agreement.
ATTACHMENTS
1. Draft Ordinance