FROM: James D. Herberg, General Manager
Originator: Kathy Millea, Director of Engineering
SUBJECT:
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APPROVAL OF FOUNTAIN VALLEY DEVELOPMENT AGREEMENT
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Approve the Development Agreement with the City of Fountain Valley and authorize its execution and implementation.
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BACKGROUND
Between October 2016 and August of 2018, the Orange County Sanitation District (Sanitation District) acquired five properties across Ellis Avenue from Plant No. 1. The Sanitation District plans to construct a new headquarters complex on the properties (Project). The Project will replace the existing administration building at Plant No. 1. The properties are located within the City of Fountain Valley (City). The Sanitation District must obtain certain land use approvals from the City in order to construct the Project.
Over the last few months, the City and the Sanitation District have negotiated the terms of a development agreement (Development Agreement). The Development Agreement contains the following material terms:
* Subject to a limited reservation of authority, the Sanitation District has the right to develop the Project in accordance with the City's approvals and the land use regulations in effect on the date when the City Council approves the Development Agreement. This right shall continue in effect for 30 years.
* In consideration of these vested rights, the Sanitation District shall pay the City a one-time monetary contribution of two million nine hundred thousand dollars ($2,900,000) to compensate the City for property tax revenue lost as a result of the Project.
On October 28, 2020, the City's Planning Commission approved the Project as designed, including a pedestrian bridge across Ellis Avenue, reduced requirements for parking and open space, and certain variances. This approval was and remains subject to the Sanitation District's ...
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