TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES
SUBJECT
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Second Amendment to the Hillsborough Development Agreement.
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RECOMMENDATION
recommendation
Conduct a public hearing and approve the introduction of Ordinance No. 2024-002, approving a second amendment to the Development Agreement with Hillsborough Phase III, LLC, to be read by number and title only, and waive further reading of the Ordinance.
ORDINANCE NO. 2024-002 - AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, APPROVING THE SECOND AMENDMENT TO THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CHINO AND HILLSBOROUGH PHASE III, LLC FOR THE DEVELOPMENT OF A SENIOR HOUSING PROJECT
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FISCAL IMPACT
Approval of the Development Agreement will not result in any fiscal impact. All costs associated with the project will be paid by the developer.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above will further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Financial Stability
• Responsible Long-Range Planning
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BACKGROUND
The applicant is the current owner of the Hillsborough Village senior citizen apartment complex (Hillsborough Property). The Hillsborough Village development consists of a 196-unit senior citizen apartment complex (Existing Development), which was approved by the City Council on September 3, 1985. On November 5, 2019, the City Council approved a Development Agreement (DA) with the applicant for construction of an addition to the Existing Development, which consists of a three-story, 62-unit senior citizen apartment building, including affordable housing units (Project) on a 1.42-acre undeveloped lot adjacent to the existing Hillsborough Property.
The approved DA requires all units within the 62-unit expansion of the Hillsborough senior apartment community to be age restricted to persons 55 years of age or older. Four of the 62 units are to be made affordable for moderate-income households and six units are to be made affordable for low-income households. The amenities within the Existing Development will be accessible to residents of the Project and shared in common within the entire Hillsborough Property. The DA also required the applicant to complete construction of the Project by March 31, 2021. The COVID-19 pandemic caused a delay in the applicant’s ability to meet the construction deadline. As a result, on April 20, 2021, the applicant applied for an amendment to the DA to extend the time required for completion of the Project to March 31, 2024 (three years retroactive from the March 31, 2021 deadline) and extend the approval of the Site Approval (PL16-0357) entitlement for the Project for three years to be consistent with the Amendment timeline. The amendment to the DA was approved by the City Council on October 5, 2021. The Amendment also required the applicant to dedicate two additional units within the Hillsborough Property for occupancy to low-income households. The DA Amendment ensured that the senior housing units and affordable units are reserved for a period of 55 years, which shall be binding upon any successor or assignees of the developer/applicant.
The applicant has encountered additional delays in the construction of the project due to the Property Owner’s Director of Construction facing medical issues. As a result, the applicant submitted applications on September 7, 2023, to amend the DA and for a time extension for the entitlement approval of PL16-0357. The applicant is requesting PL16-0357 be extended for one additional year (expiring October 7, 2024) and to allow until March 31, 2026, to complete the construction of the Project.
ISSUES/ANALYSIS
The extension of PL23-0357 (Site Approval) for an additional year and timeframe in which the applicant is required to construct the Project, is considered a substantive change to the DA that requires a formal amendment to the existing Hillsborough DA. Per Government Code section 65868, an amendment to any development agreement must follow the same process that was completed for adoption of the development agreement. In addition, under Section 20.23.070 of the Chino Municipal Code, the Planning Commission is required to review the Amendment and make a determination on the consistency of the Amendment with the City’s General Plan and the Central Avenue Specific Plan (CASP) in which the site is located, and to provide a recommendation to the City Council as to whether it should approve or deny the Amendment. The Planning Commission reviewed the proposed amendment on December 20, 2023, and recommended the City Council approve the Amendment by a 6-0 vote (1 absent). The Planning Commission also approved a one-year extension to the project entitlement for PL16-0357. The findings are set forth in the attached DA Amendment resolution (Attachment B). Other than the above changes, the exiting DA will remain unchanged.
Ultimately, the City Council will have final discretionary authority over whether to approve the Amendment and may exercise its authority to further refine and clarify the requirements of the Amendment. With the changes, the Amendment is still in conformance with the requirements of the City’s General Plan, CASP and zoning standards applicable to the Property and the Project.
Attachment: Attachment A - Ordinance No. 2024-002
Attachment B - Planning Commission Resolution PC2023-031 Second Amendment to the Development Agreement