Resolution 2004- 79
RESOLUT~ON NO. 2004-79
A RESOLUTION OF THE Cny COUNCIL OF THE CITY OF
GILROY APPROVING RI1>O REQUEST 04-01 FOR 99
RESIDENTIAL DWELLING UNITS, AN APPLICATION FOR A
SPECIAL EXCEPTION TO THE RESIDENTIAL
DEVELOPMENT ORDIN~CE FOR A NON-PROFIT
ORGANIZATION UNDER SPECIAL CIRCUMSTANCES, APN
810-20-016
WHEREAS, Bonfante Gardens FanjIily Theme Park ("Applicant") submitted RDO
Request 04-01, requesting a special exception to the Residential Development Ordinance
("RDO") for a non-profit organization under special circumstances, to build ninety-nine (99)
residential units on 32.9 acres on the eastern side ofBonfante Gardens, APN 810-20-016; and
WHEREAS, the City has determined that the review and approval of an application for a
special exception to the RDO does not conf~r any entitlement for residential development and
therefore is not a "proj ect" for the purposes <)f review pursuant to the California Environmental
Quality Act; and
WHEREAS, the City Council may grajnt the requested exception only if it determines that
the application meets the criteria set forth in Zloning Ordinance section 50.63(c)(3) titled "Special
Exceptions," and that said application was submitted pursuant to section 50.63(c)(3), as set forth
and fully discussed in the Staff Report dated I July 22, 2004 ("Staff Report"), attached hereto as
Exhibit A; and
WHEREAS, the Applicant provided Ifacts to support the required findings of Section
50.63(c)(3) by letter declaration of May 28, ~004 executed by Director Joel Goldsmith, which
letter is included in the record for this project; I and
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Resolution No. 2004-79
WHEREAS, the Planning Commission reviewed application RDO Request 04-01 at a
duly noticed public hearing on July 29, 2001, and recommended that the City Council approve
the project for the allocation of ninety-nine (99) dwelling units; and
WHEREAS, the City Council reviewed application RDO Request 04-01 and all
documents relating thereto and took oral and written testimony at its duly noticed public hearing
of August 2, 2004; and
WHEREAS, the location and custo(1ian of the documents or other materials which
constitute the record of proceedings upon wh~ch this project approval is based is the office of the
City Clerk.
NOW, THEREFORE, BE IT RESOLVED THAT, based on substantial evidence in the
entire record, the City Council hereby finds <md determines, as set forth in Sections 50.63(c)(1)
and (c)(3), that:
1. This special exception shall not ad~ersely affect the City's ability to provide services.
2. Pursuant to an executed declaratiotl by the Applicant, Bonfante Gardens, Inc. is a non-
profit, 501(c)(3) public benefit corporation operating Bonfante Gardens Family Theme Park, and
it requires the RDO allocation in order to continue providing benefits to the community by
operation of the Theme Park facility.
3.
A.
The facility provides lunique benefits to a broad sector of the public
because it is a "one-of-a-kind" horticultural-based theme park that is unmatched in the county
and state and serves a wide spectrum of ages and interest groups.
B. The facility is widely known throughout the region and respected for its
role in serving the public, including serving many local and regional school children with a wide
range of horticultural displays and activities.
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Resolution No. 2004-79
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C. The facility serves ..S a major employment base within the City,
employing approximately 500 people during peak season, including those sectors of Gilroy
residents that are generally underemployed, such as youth and young adults to make up the
majority of the facility's employees.
D. There is an immediate land urgent need to assist the facility in continuing
its operation because the facility's financial $truggles are well documented in the media and in
testimony at previous City Council meeting~, and the executed declaration from the Applicant
states that its continued operation depends Upon a 32.9-acre sale of this land, which sale is
dependent upon an RDO exception for 99 residential units.
E. Although the propert)!' upon which the allocation is conferred is not
currently within an approved specific plan aI1ea, the proposed annexation to the master-planned
Eagle Ridge community generally meets the intent of this requirement.
F. The allocation requested, 99 dwelling units, meets the requirement of the
number of dwelling units that may be granted iunder this special exception.
2. RDO Request 04-01 should b~ and hereby is approved subject to the following
conditions:
A. Prior to the developmlf:nt of the project, the Applicant or the developer
shall obtain City approvals for the appropriate General Plan Amendment and Zoning categories,
for an amendment to the Eagle Ridge Planned Unit Development, for Tentative Map, for
Architecture and Site, and for such other City approvals as may be necessary.
B. Pursuant to Section 510.67, the Applicant shall enter into a Residential
Development Ordinance performance agreemept with the City that shall (i) set forth a schedule for
the above approvals, and (ii) include the Applipant's agreement, pursuant to Section 50.63(c)(3), to
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Resolution No. 2004-79
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use any and all benefits conferred upon Bonfante Gardens, Inc. by the City's issuance of these
dwelling unit allocations to continue the operat~ons ofBonfante Gardens Family Theme Park.
PASSED AND ADOPTED this ih day of September, 2004 by the following vote:
AYES: COUNCILMEMBERS:
CORREA, DILLON, GARTMAN,
MORALES, VELASCO, and PINHEIRO
NONE
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
VALIQUETTE
:;;!!i~#L~'
Rhonda Pellin, City Clerk
~-
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Resolution No. 2004-79
EXHIBIT A
.
City .r ~ilroy
Community DeveJopment Department
Planni.1 Division
7351 Ko.anoa Street
Gil~oy, CA
(408) 84~0440
RDO Request 04-01
July 22, 2004
File Number:
RD 04-01 (0403QO 17)
StatT Planner:
BomlUlte Gardepa Family Theme Park
(c/o David Nevis~ at Miller, Morton, Caillat & Nevis)
William Faus, PI~ning Division Manager
Bfauf(@ci.gilroY.<faus
Applicant:
REQUEST:
The applicant is requesting 99 residential development units under
the provisions of the City'S Residential Development Ordinance
(ROO), specifically Section 50.63 (C)(3) titled .Special Exceptions..
This section allows nonprofi. organizations to apply for and receive
residential development units under special circumstances.
. SITB LOCATION:
The 32.9-acre site (identified as part of APN: 810-20-016] is located
at the far easterly edge of the Bonfante Gardens theme park,
immediately adjacent to the Eagle Ridge residential development &
golf course.
The applicant has submitted a site map to illustrate the specific
location of the property involved.
~ See attached Site LocaUoD map (with an orientation to the
Eagle Ridge development]
RD 04-01
2
07/22/04
BACKGROUND:
The applicant, Bonfante Gardens Family Theme Park, would like to
market 32.9 acres of their Site in order to carry out their financial
agenda [see attached letter" dated May 28, 2004, for details). In
short, this proposal involve$ securing 99 RDO development units,
which will reside permanently with the project site, and then
selling the .package" to Shapell Industries as part of an addition to
the Eagle Ridge subdivision. This reQuest DOES NOT, in anyway,
approve the project propos~, but simply allows the applicant to
move forward with a .conc~pt design [similar to any other RDO
allocation).
In theory, the applicant has two basic options once RDO units
have been assigned to the project site:
# 1. Sell the site, with the 99 RDO units, to Shapell Industries, or
[Shapell has indicated they would like ta transfer 19 existing units to this site, for a 118-units]
#2. Developing the site indftpendently.
Either option will necessi!tate the processing of the following
applications prior to project build-out:
o General Plan Am.~ndment *
· Change thei existing land use designation from
VISITOR SE~VING COMMERCIAL to RESIDENTIAL
LOW DENSITY
o Zone ChanJ[e req",est *
· Designating .the site as Residential - Planned Unit
Development (RI-PUD)
o Planned Unit Dev 10 ment amendment *
· Addition to e Eagle Ridge PUD
. 118 sipgle family lots
. Privat~ community park
o Tentative Mal) *
· Creating 11$ single family lots
* An Environmenta1lmpa~ Report (EIR. wiD be required.
I
RD 04-01
3
07/22/04
ANALYSIS:
The applicant is requesting 99 residential development units under
the provisions of the Ci~s Residential Development Ordinance
Section 50.63 (C)(3). . Tile FULL TEXT of section states the
following:
Section SO.63 Annual Numerical Limit$
(c) Special Exceptions
(3) That a nonprofit, SOl (c)(3) public benefit corporation operating a major existing community
facility within the City of Gilroy requires ani allocation in order to continue providing to the City
of Gilroy, its residents, and the public generally, the benefits to the community for which it WQS
formed at the facility it operates. The allocd,tion sholl be issued only if:
i
(i) The facility provides unique benefits se1ng a brood sector of the public;
(ii) The facility is widely known and respect~dJOr its role in serving the public;
(iii) The focility serves as a mojor employme,nt base within the City, including those sectors of
Gilroy residents that are generally unCIeremployed. such as youth;
(iv) There is an immediate and urgent need to assist the facility in continuing its operations;
(v) The property upon which the allocation i~ conferred is proposed for ihClusion in a Specific
Plan; and
(vi) The allocation requested is for fewer thifn JOO dwelling units.
The applicant shall agree that any and all b(mefits conferred upon it as a result of the issuance oj
dwelling unit allocations shall be used tOI continue the operations of the eDsting community
facility. Should some or all of the dwell~ng unit alloCations not be necessary to ensure the
facility's continued operation or not be used solely for that purpose, those allocations sholl be
immediately deemed null and void.
Section 50.63 (C)(3) provid~s the framework for review under which
the City may grant RDO. allocation to a nonprofit corporation.
Within their attached letter, the applicant has provided *Facts and
Information" to support each of the required elements outlined
within this section. Only when ALL elements have been addressed
and / or satisfied can units be allocated to the proposed project.
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RD 04-01
4
07/22/04
Allocation shaD be issued only if:
(i) The facility provides unique benefits s~ng a broad sector of the public.
)> Bonfante Gardens is a! "one-of-a-kind" horticultural-based
theme park that is un-matched in the county and state.
)> The facility is designed to a wide spectrum of ages, interest
groups, and levels of entertainment.
(ii) The facility is widely known and respected for its role in serving the public.
)> The facility accommoda~es many local and regional school
children with a wide lI'ange of horticultural displays and
activities.
)> The Bonfante Gardens theme park is well known throughout
the region, and well respected by citizens at large. .
(iii) The facility serves as a I1Uljor employment base within the City, including those
sectors of Gilroy residents that are get,lerally underemployed, such as youth;
)> Bonfante Gardens employs approximately 500 during peak
season.
)> The vast majority of emplcl>>yees are young adults.
(iv) There is an immediate and urgent need to assist the facility in continuing its
operation.;
~ The turbulent fmandal s~tuation of Bonfante Gardens has been
well documented, not only in the local newspaper, but also as
addressed at many City qouncil meetings.
(v) The property upon which the allocation is conferred is proposed for inclusion in a
Specific Plan.
~ Although the subject site is not currently within a specific plan
area, the proposed annexation to the master-planned Eagle
Ridge community is generally within the intent of this element.
(vi) The allocation requested is for fewer ithan 100 dwelling units.
)> The request is for 99 devtflopment units.
In addition, see the applicant's att$,ched letter for further support.
RD 04-01
5
07/22/04
RECOMMENDATION:
Staff recommends that t~e Planning Commission forward a
recommendation to the qity Council to grant 99 residential
development units, as requ~sted, to the Bonfante Gardens Family
Theme Park, to apply to the subject 32.9-acre site.
Respectfully,
~
William Faus
Planning Division Manager
BfalllS@ci.gilroy.ca.us
Attached:
> Support letter from Bonfante Gardens. Family Theme Park
[dated May 2S, 2004)
> Site & Location maps
o Site Location map, in icontext to the Eagle Ridge subdivision
o Site Layout, lIS singl~ family lots [conceptual only]
o The fonowing two drawjings are conceptual only:
· Exhibit A; conc tual circulation drawing *
· Exhibit B; cone tual circulation details *
[* Included for refere~ce ONLY, not for review UDder this request)
I
B~,
~nlen..
ftmi~ Theme Park
Managed by Paramount Parks
RECEIVED
JUN u 1 200~
Gilroy Planning Div.
M~y 28, 2004
The undersigned does hereby certify that h~ is a duly elected Director of Bonfante Gardens, Inc., a
California nonprofit corporation (hereafter "Bonfaijte Gardens"), and in support of Bonfante Gardens'
application under the City of Gilroy's Residential Development Ordinance (RDO), Section 50.63(C)(3),
states as follows:
1. Exempt Status. Bonfante Gardens is a!nonprofit, 501 (c)(3), public benefit corporation, which
owns and operates a major existing community facility (Bonfante Gardens Theme Park) within
the City of Gilroy, as a supporting organ.ization of the City of Gilroy.
2. Necessitv of RDO Allocation to Contipue Operations. Bonfante Gardens experienced
significant operating losses during the flrst two (2) years of its operations. Effective March 1,
2003, Paramount Parks, Inc. ("Paramount") was engaged to manage the Park and largely due to
its professional management, Bonfante Gardens realized a positive operating profit for the 2003-
2004 fiscC;il year, ending on the last day of February 2004. Notwithstanding such operating profit,
it became clear that Bonfante Gardens was not then nor would ever be able to service its current
indebtedness, which is in excess of SevC!:nty Million Dollars ($70,000,000.00). In fact, based
upon projections from Paramount, it is ~he opinion of Bonfante Gardens' Board of Directors that
the indebtedness would need to be reduCl:ed to below Fifteen Million Dollars ($15,000,000.00) to
enable the Park to continue its operations and to provide the services for which it was established.
Given these guidelines, Bonfante Gardens has entered into a binding Agreement with all of its
long-term creditors providing for the re$tructuring of its debts. This restructure, however, is
dependent upon the sale by Bonfante Gardens of approximately 32.9 acres of its surplus property,
being a part of Assessor Parcel No. 810,.20-16. To satisfy this condition, Bonfante Gardens has
entered into a Purchase Agreement with Shapell Industries, Inc. providing for the sale of the 32.9
acre parcel, subject to Bonfante Garden$ being able to obtain the 99RDOs and the annexation of
such property into the Eagle Ridge dev~lopment. From the proceeds of sale, Bonfante Gardens
will be able to accomplish the following:
. Pay claimed delinquent real property taxes;
· Redeem all of the outstandiqg Subordinate Lien Project Revenue Bonds, Series 2000,
having a face value of $9,690,000.00; a~d to pay and discharge all other creditors of the
Company, excepting for Senior Lien Prll>ject Revenue Bonds, ongoing trade creditors, employees
and equipment lease; and
· Redeem approximately 48% of the issued and outstanding Senior Lien Project
Revenue Bonds, thus reducing Bonfante Gardens total long term debt to below Fifteen Million
Dollars ($15,000,000.00), which,based upon present projections may be timely serviced by the
Park..
f6/rlb ~IJ tJM, C~~ r~~!.
3050 Hecker Pass Hwy., Gilroy, CA 95020 . (408) 840nlOO · Main Fax (408) 847-2049 . www.bonfantegardens.com
In the event the RDO allocation is not granted, the sale of the 32.9 acre parcel will not occur
and this would tenninate the creditor workout agreement entered into by and between Bonfante Gardens and
its various creditors. As Bonfante Gardens has admitted its inability to service its debts and has stopped
payment on all indebtedness, this would essentially result in the Park's closing and inability to provide the
City of Gilroy and its resident's and the public at laI1ge with the benefits of this one of a kind horticulture
theme park.
3. Facts and Information to Support FINDINGS
Finding: The facility provides unique benefits sf!rving a broad sector of the public.
Bonfante Gardens is a unique entertainment and educational facility that blends a world class horticultural
experience with traditional theme park ride$ and attractions geared towards the education and enjoyment
of the entire family. The focal point of the Park is its botanical and horticultural exhibits. The Park
maintains a collection of full grown trees tihat have been grafted into extraordinary shapes, a significant
collection of topiary, prize holly and camellJa gardens, a northeast -style garden featuring bonsai trees and
full grown trees, and a greenhouse which is ,over four stories tall holding a vast collection of tropical trees,
both fruit~bearing and blooming, collected from around the world. Leaming sheds are maintained
throughout the Park, featuring educational !Videos on topics such as the history of circus trees, why trees
are important, beneficial insects, agricultur~, geology and soil and water conservation.
· Bonfante Gardens attracts local, regional, Inational and international visitors. During the 2003 season,
approximately 440,000 people visited the Park.
Finding: The facility is widely known and resp~cted for its role in serving the public.
· Although only several years old, Bonflante Gardens has established itself as a premier horticultural
destination. Many local schools schedlille field trips to the Park to enable their students to experience
the horticultural and botanical features provided by the Park. Ms. Joanne West, who teaches
horticulture at Hartnell College, includes class visits to the Park as part of her curriculum because of
the extensive botanical and horticultural collections found therein.
· One of the primary goals of Bonfante' Gardens is to introduce youth to horticulture, and the many
benefits that plant life provides to our world.
Finding: The facility serves as a major employment base within the City, including those sectors of Gilroy
residents that are generally underemployed, su,+h as youth.
· Bonfante Gardens employs approximately 491 employees during its operating season, which runs
March through October.
· A significant number of the Park's employees are youth and young adults, most of whom reside in
local communities.
Finding: There is an immediate and urgent nee'{i to assist the facility in continuing its operations.
· The proposed financial restructuring p.an agreed to by Bonfante Gardens and its Creditors is entirely
dependent on the successful sale of th~ subject 32.9 acre parcel, which has been judged by Bonfante
Gardens to be "surplus land".
· A condition of the Purchase Agreeme~t with Shapell Industries is that Bonfante Gardens secure 99
exempt ROO's under Section 50.63 (c)(3).
· If the sale of the 32.9 acres does not clC/se, the Park's Creditors will likely foreclose.
Finding: The property upon which the allocation is conferred is proposedfor inclusion in a Specific Plan.
· The 32.9 acre subject parcel is proposl}d to be annexed into the Eagle Ridge Subdivision, which is
considered a "Master Plan" by the City <>f Gilroy.
· At the March 8, 2004 City Council study session, the City Council indicated that inclusion in a
"Master Plan" was essentially the same flS inclusion in a "Specific Plan".
finding: The allocation requested is for fewer than 100 dwelling units.
. Bonfante Gardens request is for 99 dwelling units.
,.oJ' The undersigned declares that the foregoing is true and correct and that executes same on this
~day of June, 2004.
r
I, RHONDA PELLIN, City Clerk oft~e City of Gilroy, do hereby certify that the attached
Resolution No. 2004-79 is an original resolutipn, or true and correct copy of a city resolution,
duly adopted by the Council of the City of Gil~oy at a regular meeting of said Council held on the
7th day of September, 2004, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have her~unto set my hand and affixed the Official Seal of
the City of Gilroy this 22nd day of September, 2004.
~! I/)
~ O:;;Ah~
City lerk of the City of Gilroy
(Seal)