HomeMy WebLinkAbout1979-11-20; City Council; 6081; Lake Calavera Hills developmental assurancesCITY OF CARLSBAD
AGENDA BILL NO.
DATE: November 20, 1979
DEPARTMENT: citY Attorney
Subject:
LAKE CALAVERA HILLS REQUEST FOR DEVELOPMENTAL ASSURANCES .
Statement of the Matter
As the Council knows, we have been engaged for sometime in
an extensive series of negotiations with Lake Calavera Hills
Associates (the Developer) on a master financing agreement
for the construction of a 1.2 MGD wastewater treatment and
reclamation facility to serve the Calavera Hills drainage
basin. The parties have arrived at a mutually acceptable
agreement which is before the Council with a recommendation
for approval.
By letter dated November 7, 1979, the Developer has asked
for assurances from the Council that certain applications for
developmental approvals will be approved and that certain
building permits will be issued. While we understand the
Developer's position, it is our view that such assurances
are inappropriate. It is staff's position that each project
should be judged on its own merits against the applicable,
law and community standards at the time it comes forward
for approval. Matters such as the CPO population limits
and the City's ongoing effort to develop a growth management
program should be taken into account by the Developer and
evaluated as any other business risk. Staff thinks that such
matters, if they do become a concern, should be shared by all
developers in the City.
In recognition of Developer's construction of the sewer plant,
staff has recommended that a portion of the plant's capacity
be reserved for Calavera Hills. This reservation assures
Developer capacity, yet leaves the City free from restrictions
on its obligation to plan in the best interest of the whole
city. The La Costa Land Company is proceeding along similar
lines with the San Marcos County Water District to construct
a satellite plant. They have not found it necessary to
request any assurances in regard to developmental approvals.
Granting a request to Lake Calavera Hills could create a
precedent that might apply to La Costa or to the other
developers pursuing satellite treatment plants in the
City. Such assurances carry the potential for legal
difficulties which could limit the City Council's discretion
in the future.
Agenda Bill No. (0Q&I Page 2
The decision of whether or not to accede to the Developer's
request is a matter for the business judgment of the City
Council and is a policy question. The City Manager may wish
to make recommendations in that regard. In the event the
City Council does not wish to grant the requested
assurances, your action is to file the matter. In the
event the Council would determine to grant the assurances,
we have prepared a resolution which should meet the
Developer's needs. We recommend its use, rather than
the draft prepared by the Developer's attorney.
Exhibits
Letter from Lake Calavera Hills Associates dated
November 7, 1979.
Resolution No. (j>QO /
12-10-79
Memo to City Council from City Manager dated 12-10-79
Recommendation
That the City Council resolve the policy question and
take action as they consider appropriate.
Council Action:
11-20-79 The matter was continued.
11-28-79 The matter was continued for consideration following update of
Financing Agreement (AB 6080).
12-18-79 The matter was continued to the meeting of January 2, 1980.
1-2-80 The matter was continued to the meeting of January 15, 1980.
LUCE, FORWARD, HAMILTON & SCRIPPS
THE BANK OF CALIFORNIA PLAZA
MO WEST A STREET
SAN DIEGO, CALIFORNIA 92IOI
(714) 236- 1-4-14.
November 7, 1979
LA^OLLA OFFICE
4»O I* JOLLA FINANCIAL BUILDING
POST orriCt BOM 1377
I1OO PROSPECT STRICT
1714^ 4S9-4OH
NORTH COUNTY OFFICE
3ISO PIO PICO DRIVE
CARLSBAD, CALIFORNIA BZOO6
(7141 430-SIOO
Mr. J. Wayne Dernetz
City Manager
City of Carlsbad
1200 Elm Avenue
Carlsbad, California 92008
Re: Lake Calavera Hills Development
Satellite Waste Water Treatment Facility
Reimbursement Agreement and Other Matters
Dear Mr. Dernetz:
As you know, we represent the Lake Calavera Hills
Development. We have met with you, the City Attorney, and
other members of the City staff on the above matters on
numerous occasions. We have discussed various aspects
relating to the financing and reimbursement agreement and
related matters. We understand that after this extensive
effort, the matter of the financing and reimbursement agree-
ment will be before your City Council on November 20, 1979.
This letter will constitute our formal request,
consistent with our previous discussions with City staff,
that concurrently with the agenda item on the reimbursement
agreement, you present to the Council in appropriate fashion
our request for Council consideration of assurance of a
minimum number of development approvals and building and
sewer permits during the start-up phase of the plant and the
development.
You and the Council are no doubt well aware of the
considerable effort and expense borne by Lake Calavera Hills
in investigating, analyzing, initiating, and implementing
the Satellite Waste Water Treatment Facility. The assurances
requested are necessary to insure the feasibility of the
facility from a practical and financial standpoint. Enclosed
LUCE, FORWARD, HAMILTON q CRIPPS
Mr. J. Wayne Dernetz
November 7, 1979
Page 2
herewith is a draft resolution summarizing the request and
some of the justifications therefor. We are ready to
assist in any way possible to develop the documentation
and support necessary for a proper presentation of these
matters to the Council.
Thank you for your continued cooperation in this
matter.
Very truly yours,
LUCE, FORWARD, HAMILTON & SCRIPPS
By: Louis E. Goebel
LEG:rn
Enclosure
cc: City Attorney
Roy Ward
RESOLUTION
In consideration of the extensive effort expended
by the City, affected property owners/ and the public
in analyzing and master-planning the property located
within Lake Calavera Hills Master Plan (MP-150(A)), and
in consideration of the effort and expense borne by said
property owners in investigating, analyzing, initiating,
and implementing a proposal for a satellite v?aste water
treatment facility to serve not only the development v/ithin
the Lake Calavera Hills Master Plan area, but within the
entire drainage basin surrounding same.- the Council declares
that upon execution of the Master Financing and Reirobxxrseraent
Agreement for the satellite waste v/ater treatment facility,
the City v;ill resolve to, SUBJECT TO coraplicince with all
applicable planning, zoning, environmental, and subdivision
requirements fo the City, issue building permits to the
ovmers'of property within the Lake Calavera Hills Master
Plan area in the following increments:
(1) During the one year period commencing with the
execution of the. agreement: at least 150 units.
(2) During the one year period immediately thereafter:
at least 300 units .
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RESOLUTION NO. 6001
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA EXPRESSING ITS INTENT TO
VIEW WITH FAVOR CERTAIN APPLICATIONS
FOR DEVELOPMENTAL APPROVALS AND THE
ISSUANCE OF CERTAIN BUILDING PERMITS
WITHIN THE LAKE CALAVERA HILLS MASTER
PLAN AREA.
WHEREAS, the City of Carlsbad has approved a master plan
of development (MP-150(A)) for 807 acres of property, generally
located in the northeast quadrant of the City, near Lake
Calavera and known as Lake Calavera Hills; and
WHEREAS, Lake Calavera Hills Associates (hereinafter the
"Developer") has been unable to proceed with the development of
Lake Calavera Hills due to a lack of sewer capacity, resulting
from unavoidable delays in the construction of additional capacity
at the Encina Sewage Plant; and
WHEREAS, Developer, in order to move forward with his
development prior to the completion of the Encina Plant, has
undertaken to construct a satellite wastewater treatment and
water reclamation facility to serve Lake Calavera Hills and
surrounding properties in the drainage basin (hereinafter
the "Facility"); and
WHEREAS, City and Developer contemplate entering into an
agreement for the construction and financing of the Facility,
including provisions whereby Developer may be reimbursed for
the cost of oversizing the Facility to serve properties outside
Lake Calavera Hills (hereinafter the "Agreement");
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Carlsbad as follows:
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1. That the above recitations are true and correct.
2. That in recognition of the effort and expense borne
by the Developer in investigating, analyzing, initiating and
implementing the Facility, and upon execution of the Agreement,
the City Council will, subject to compliance with applicable
planning, zoning, building, environmental and subdivision
requirements of the City, view with favor the application by
Developer for discretionary approvals and the issuance of
building permits within Lake Calavera Hills as follows:
A. Developmental approvals for the 150 residential
dwelling units during the one year period commencing with the
initial certification of the Facility by the Regional Water
Quality Control Board.
B. Developmental approvals for 300 residential
dwelling units during the one year period immediately thereafter.
C. Building permits for 150 residential dwelling
units during the one year period commencing with the determination
by the City Council that the Facility is complete and that
sewer service is available therefrom.
D. Building permits for 300 residential dwelling
units during the one year period immediately thereafter.
PASSED, APPROVED AND ADOPTED by the City Council of the
City of Carlsbad at a regular meeting held on the day
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-•(,„ ,.• •-, .*/••
of , 1979 by the following vote, to wit:
AYES:
NOES:
ABSENT:
RONALD C. PACKARD, Mayor
ATTEST :
ALETHA L. RAUTENKRANZ, City Clerk
(SEAL)
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