Ordinance 17-04ORDINANCE NO. 2017-04
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EASTVALE
APPROVING A FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT
WITH TARPON PROPERTY OWNERSHIP 2 LLC.
THE CITY COUNCIL OF THE CITY OF EASTVALE ORDAINS AS FOLLOWS:
SECTION 1. The City Council finds:
WHEREAS, City and Landowner are parties to that certain Development Agreement dated as of
November 9, 2016 (the "Agreement"), pursuant to which Landowner desired to vest its right to
develop up to 2,983,400 square feet of commercial retail, light industrial, business park and other
uses across the 205.4 acre site (collectively, the "Project"). A copy of the Agreement is attached
hereto as Exhibit "A" and incorporated herein by reference; and
WHEREAS, as a material consideration of the vested rights and other City obligations provided
for by the Agreement, the Landowner offered and agreed to provide local and regional public
benefits, including economic development that will be achieved in accordance with the terms of
the Agreement; and
WHEREAS, Pursuant to the teens of the current Agreement, City is required to enter into a
twenty (20) year, interest-free agreement to reimburse Landowner up to, but not to exceed two -
million and five -hundred thousand dollars ($2,500,000) for infrastructure improvements; and
WHEREAS, both City and Landowner wish to amend the Agreement so that City would
reimburse Landowner up to, but not to exceed four -million and five -hundred thousand dollars
($4,500,000) for the cost of infrastructure improvements.
WHEREAS, Landowner will be required to expend approximately thirty million dollars
($30,000,000) for infrastructure improvements under the Agreement and City's percentage share
of the reimbursement under the Amendment to the Agreement would not exceed 15% of the total
cost of infrastructure improvements; and
WHEREAS, both City and Landowner agree that the additional reimbursement by the City
under the Amendment to the Agreement is necessary for the Project to provide increased real
property and sales taxes and other revenues to the City which is a critical component of
economic development to the City; and
WHEREAS, both City and Landowner agree that the anchor store must execute a lease
agreement with Landowner by September 30, 2017; have the store operational by December 31,
2018; the City would not be charged interest on reimbursement payments made to the
Landowner, and if these conditions are not met, then the amendment would be void; and
WHEREAS, under the existing Agreement, the reimbursements would be paid by the City from
tax revenue derived from retailers' sales on the Project; and
WHEREAS, the proposed Amendment to the Agreement is authorized pursuant to both the
terms of the Agreement and state law.
WHEREAS, The City Council specifically finds that the provisions of this Amendment to the
Agreement are consistent with the City's general plan. The Council further finds that the
underlying development has been subject to full and proper environmental review under CEQA,
resulting in Resolution No. 14-032, dated June 11, 2014, which certified Environmental Impact
Report No. (SCH No. 2011111012) (the "Project EIR").
SECTION 2. The City Council approves the First Amendment to that certain Development
Agreement by and between the City of Eastvale and Tarpon Property Ownership 2 LLC, as set
out in Exhibit" 6", attached hereto and incorporated as if fully set forth herein and the Mayor is
authorized to sign it on behalf of the City.
SECTION 3. Effective Date: This ordinance and the First Amendment to the Agreement
adopted by it shall take effect 30 days from the date of the adoption of this Ordinance.
PASSED, APPROVED AND ADOPTED THIS 13`x' day of September, 2017
Adam Rush, Council Member
Approved as to form:
Id
Cavanaugh,
Attest
.z
Steven D. Aguilar Assistant City Clerk
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) §
CITY OF EASTVALE )
1, Steven D. Aguilar, Assistant City Clerk of the City of Eastvale, do hereby certify that the
foregoing Ordinance plumber 2017-04 was introduced at a special meeting of the City Council of
the City of Eastvale held on the 21" day of August, 2017, and was passed by the City Council of
the City of Eastvale at its regular meeting held on the 13°i day of September, 2017, by the
following called vote:
AYES: Council Members Plott, Rigby, Rush
NOES:
ABSENT: Mayor Pro Tern Lorimore, Mayor '1 essari
ABSTAIN:
4
Steven D. Aguilar, Assistant City Clerk
f00009906:noc v1, 3