FROM:
Planning Department
TITLE:
Title
Master Case No. 19-000016R1: Development Agreement No. 19-000002R1 - A request to approve a first amendment to the Goodman Logistics Center Fontana III Development Agreement to extend the term and add sustainability features.
End
RECOMMENDATION:
Based on the information in the staff report and subject to the findings, conclusions, and information set forth therein, as well as in the resolution and the information presented in the public hearing, staff recommends that the Planning Commission adopt Resolution No. PC 2026 -____; and forward a recommendation to the City Council to:
1. Find, after review of this First Amendment to the Development Agreement, that Pursuant to Sections 15162 and 15164 of the California Environmental Quality Act (CEQA) Guidelines and Section 8.06 of the City of Fontana’s 2019 Local CEQA Guidelines of the Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse [SCH] No. 2019039071), along with a subsequent March 2021 Addendum, no subsequent or supplemental EIR is required because there are no substantial changes in the project or its circumstances, and no new information of substantial importance has been identified that would result in any new or more severe significant environmental impacts; and
2. Adopt an Ordinance approving a First Amendment to the Goodman Logistics Center Fontana III Development Agreement with GLC Fontana III LLC
APPLICANT:
GLC Fontana III, LLC
3333 Michelson Drive
Irvine, CA 92612
LOCATION:
The project site is generally located between Cypress Avenue and Juniper Avenue, north of Jurupa Avenue, (APNs: 0255-091-20, -23, -63, -64, and -65).
REQUEST:
Development Agreement (AGR) No. 19-000002-R1; A request to amend a previously approved Development Agreement for GLC Fontana III, LLC
PROJECT PLANNER:
Rina Leung, Senior Planner
BACKGROUND INFORMATION:
On April 21, 2020, the Planning Commission recommended that the City Council adopt Development Agreement No. 19-000002 under MCN No. 19-000016, for an industrial commerce center development comprised of three buildings and associated improvements, the Agreement to provide a public benefit fee in the amount of six million dollars ($6,000,000).
On June 23, 2020, the City Council adopted Development Agreement No. 19-000002 for an industrial commerce center development project, to provide a public benefit fee in the amount of six million dollars ($6,000,000) and certified the Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse (SCH) No. 2019039071).
On April 20, 2021, the Planning Commission approved MCN No. 21-000002, which included approval of Tentative parcel Map 20354, Conditional Use Permit 21-001 and Administrative Site Plan 21-002 along with an Addendum to the EIR to subdivide the southern portion of the site and establish a tractor trailer parking lot.
PROJECT DESCRIPTION:
The item currently before the Planning Commission for consideration is the GLC Fontana III, LLC DA first amendment. The land use approvals and entitlements for the underlying properties have been granted through prior Planning Commission and City Council actions.
ANALYSIS:
Development Agreements are voluntary, negotiated contracts between cities and property developers. They vest development rights by freezing existing land-use regulations, ensuring the project can proceed under rules in place at approval. In exchange for vested rights, property developers often provide public benefits through the payment of fees or the provision of public improvements.
The applicant, GLC Fontana III, LLC. is requesting an amendment to Development Agreement No. 19-000002. This aforementioned development agreement was approved as a part of with MCN No. 19-000016 which included the development of an industrial commerce center project consisting of three (3) buildings along with associated improvements. The applicant is requesting approval for a first amendment to this Agreement which includes a modification to extend the term and to add sustainability features.
The Development Agreement Amendment is in conformity with the public convenience, general welfare, and sound land uses practices, and will not be detrimental to the health, safety and general welfare of the City. The Amendment will not adversely affect the orderly development of property or the preservation of property values and will have a positive fiscal impact on the City. The provisions of the Development Agreement, along with the amendment, are consistent with the objectives, policies, general land uses and programs specified in City’s General Plan, zoning code and municipal ordinances.
The key terms of the Amendment to the Development Agreement are as follows:
Time Extension
The initial Development Agreement approved by City Council on June 23, 2020, included a 10-year term that became effective on March 9, 2021. However, this first amendment to the Development Agreement provided for an extension for ten (10) additional years from the effective date for a total term of twenty (20) years from the previous effective date of March 9, 2021, to the new effective date of March 9, 2041.
Additional Sustainability Features
The project was approved prior to the adoption of Ordinance No. 1891 that required sustainability standards for industrial Commerce Centers. Thus, this project was not subjected to these requirements in Ordinance No. 1891 when it was approved on June 23, 2020.
The first amendment to the Development Agreement includes sustainability features to portions of the project that have not been constructed. Currently one (1) of the three (3) buildings for the project have been constructed and has been in operation since October 2021. The sustainability features to be included for the two (2) remaining buildings are summarized as follows: a requirement of a truck routing plan; additional signage; larger trees; improved emissions standards for on-site motorized operational vehicles; light colored and solar ready roofs; EV conduit infrastructure for future charging stations; cool driving surfaces, larger electrical rooms; lower VOC paints/coatings; incorporate highest available CARB Tier rating for construction equipment; implementation of a recycling program and property maintenance program; and property owner shall also provide facility operator with information on incentive programs such as the Carl Moyer Program, voucher incentive program, and United States Environmental Protection Agency's SmartWay Program. A complete detailed list of these features are included in the First Amendment to the Goodmand Logistics Center Fontana III Development Agreement (Exhibit A of Attachment No. 2).
The terms and conditions of the first amendment to the Development Agreement has undergone extensive review by City staff and have been found to be fair, just and reasonable. The project will best serve the interest of the City’s citizens and the public health, safety, and welfare. The Zoning and Development Section 30-322 along with Government Code Section 65864 et. seq requires Planning Commission and City Council to consider this item at a public hearing.
Recommendation
Staff requests that the Planning Commission provide a recommendation to the City Council to approve and authorize the execution of the first amendment to the Development Agreement with the Applicant. Staff is of the opinion that the amendment will further implement the following goals of the City:
• To promote economic development by concentrating on job creation.
• To promote economic development by pursuing business retention, expansion and attraction.
• To promote economic development by striving to constantly improve the city’s competitiveness
Environmental:
Pursuant to Sections 15162 and 15164 of the California Environmental Quality Act (CEQA) Guidelines and Section 8.06 of the City of Fontana’s 2019 Local CEQA Guidelines of the Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse [SCH] No. 2019039071) along with a subsequent March 2021 Addendum has been prepared for this proposed project. The aforementioned EIR was adopted by the City Council on June 23, 2020 and Addendum approved by Planning Commission on April 20, 2021, and they anticipated the development of the site for a commerce center development and industrial uses along with a development agreement and they also adequately identified any potential impacts associated with this project. No new additional impacts beyond what was anticipated in the EIR mentioned above were identified.
Public Communications
A public communication received by the Planning Department is attached to the staff report. The communication includes a request to include an adjacent property at 16490 Jurupa Avenue for land use redesignation from Residential Planned Community (R-PC) to a Commercial Designation along with this current application. However, the current request is solely for an amendment to the Goodman Development Agreement and does not include any General Plan Amendments or Zone Changes to redesignate property.
MOTION:
Approve staff’s recommendation.
ATTACHMENTS:
Attachment No. 1 - Vicinity Map
Attachment No. 2 - Planning Commission Resolution
Attachment No. 3 - Notice of Determination
Attachment No. 4 - Public Hearing Notice