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HomeMy WebLinkAbout1980-01-15; City Council; 6081; Lake Calavera Hills Developmental Assurancesr MEMORANDUM DATE: January 15, 1980 TO: MAYOR PACKARD AND MEMBERS OF THE CITY COUNCIL FROM: City Clerk SUBJECT: ITEM NO. 28 ON AGENDA OF JANUARY 15, 1980 LAKE CALAVERA HILLS The applicant has requested, and staff concurs, that this item be removed from the Agenda. It will be resc.zeduled following further review. LEE RAUTENKRANZ, City Clerk LR:adm Council A(-tion: 1-15-80 Council concurred with removing this item from the agenda. 9- AGENDA BILL NO. ( O P / DATE: DEPARTMENT: CITY OF CARLSBAD November 20, 1979 City Attorney Initial: Dept. Ha. C. Atty. C. Mgr. LAKE. CAJiAVERA 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 appJ-;cable: law and community standards at the time it comes forward for approval. Matters such as the Cp0 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. r _ . Agenda Bill No. Off/ 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. 600/ 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. r - LUCE, FORWARD, HAMILTON & SCRIPPS too..�WC THE BANK OF CALIFORNIA PLAZA MWM$ r 1Y00.$C.L.$.1N 110 VEST A STREET •el SAN DIEGO, CALIFORNIA 92101 1714) 236 -1414 November 7, 1979 Mr. J. Wayne•Dernetz City Manager City of Carlsbad 1200 Elm Avenue Carlsbad, California 92008 Re: Lake Calavera Iiills Development Satellite Waste Water Treatment Facility Reimbursement Agreement and Other Matters Dear Mr. Dernetz: hloiy on1S5 .\o t. mt. n...cut wua.a ro\t omct to. 1N7 '1031.0$.1e1 $1.991 to 40tt.,C.1110. NA $l Olt M. •W.o.. H0111N egyL.Tr or 1 rose omet $04 ru )�\0 " "Co O.lrt .t C.s$.o,C.t1f0Ak1, \too$ I'M.)\otoo 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, FORWARb, HAMILTON 6 —:RIPPS 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. matter. Thank you for your continued cooperation in this LEG:rn Enclosure cc: City Attorney Roy Ward very truly yours, LUCE, FORWARD, HAMILTON & SCRIPPS By: Louis E. Goebel r -- " zFscT,vMzc►Y , In consideration of the 4ltensive effort c-penacd by the City, affecte i pxoperty owneifs, and the publ.'c the property located in analyzing, and r;.:�ster-planning . L•:i.thin iaalce Calavera Hills y:aster Plan. (ryp-150 (2))) , and in consideration of the eFzort an t—xpense borne by said Property o;•mers in investigai:ing, analyzing, initiating, and imple„tenting a pxo-osal for a satellite waste ;cater treatmarin faci3.ity to serve not only .he d evelopInent I-t'.tf27T1 the Lake Calavera Hills : a-1Ler Plan area, but Witliin tiae entire drainage basin surroundiirig salTte; t.}lE: VOL:7lCil dec]are that upon execution of the toaster Financing and iZezmburse*:Lent Aclrt ement foi: the satell i to ;caste water treatm -nit facility, the City will. resolve to, SUB ECT TO compliance with all applicable planning, zoring, environmental, and subdivision requi.rer.Lents fo the City, issue bui.l.dirLg permits to the owners • of prope:rt%, ..:ithin the Lake Calavera Hills toaster ' following increments: Plan area, i n tie g (1) Uurin;l the one year period commencing -Atth t - execution of tl:e agreement: a4 least 150 units. (2) During the one year period imiacdiate_y thereafter: at leas4 300 units. 1 2 3 4 5 6 7 8 9 13I 14I 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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: r 1 1. That the above recitations are true and correct. 2 2. That in recognition of the effort and expense borne 3 by the Developer in investigating, analyzing, initiating and 4 implementing the Facility, and upon execution of the Agreement, 5 the City Council will, subject to compliance with applicable 6 planning, zoning, building, environmental and subdivision 7 requirements of the City, view with favor the application by 8 Developer for discretionary approvals and the issuance of 9 building permits within Lake Calavera Hills as follows: 10 A. Developmental approvals for the 150 residential 11 dwelling units during the one year period commencing with the c 12 initial certification of the Facility by the Regional Water a m 1 g 13 Quality Control Board. U M aa . 140B. Developmental ap provals for 300 residential VQo 15 dwelling units during the one year period immediately thereafter. U: ; U W z Q 16 C. Building permits for 150 residential dwelling �Cm ca 17 units during the one year period commencing with the determination', U 18! by the City Council that the Facility is complete and that 19i sewer service is available therefrom. 20 D. Building permits for 300 residential dwelling 21 units during the one year period immediately thereafter. 22 PASSED, APPROVED AND ADOPTED by the City Council of the 23 City of Carlsbad at a regular meeting held on the day 24 25 26 27 28 -2- _ 1 2 3 4 5 6 7 8 i g' I 101 1 11 f 0 12 a 13 J 8 o Q 14 a Z O > 1 m� a- 15 W v WZo 16 g io ^N a17 >a 18 19 20 21 22 23 24 25 26 27 28 of 1919 by the following vote, to wit: AYES: NOES: ABSENT: RONALD C. PACKARD, Mayor IATTEST: ALETHA L. RAUTENKRANZ, City Clerk (SEAL) -3- r - - DATE: DECEMBER 10, 1979 TO: CITY COUNCIL FROM: City Manager SUBJECT: AGENDA BILL 6081 - LAKE CALAVERA HILLS REQUEST FOR DEVELOPMENTAL ASSURANCES In his November 20, 1979 agenda bill statement, the City Attorney described a request from Lake Calavera Hills Associates for assurances on developing additional units, beyond what has been approved by the Tentative Map. The City Attorney indicates his view that such assurances are inappropriate. I concur in the Attorney's view. The City has provided adequate assurances for sewer capacity in the Financial Agreement recommended for your approval. To go beyond those assurances at this time and, in effect, guarantee three hundred additional units for the second year would serve only to place the City in jeopardy of a number of constraining factors beyond the City's control. Such an agreement would be meaningless as an absolute guarantee to the developer but could serve as a significant impingement on the City's discretionary authorities. Ao" — J. WAYNE DERNETZ City Manager darn: ldg