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HomeMy WebLinkAboutOrdinance No. 2025-01 | Extend GLR DA with DA First Amendment | Adopted 01/27/20251 4854-5418-3918v1 ALF\04706099 ORDINANCE NO. 2025-01 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING THE FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF GILROY AND GLEN LOMA CORPORATION FOR THE GLEN LOMA RANCH PROJECT TO EXTEND THE TERM OF THE DEVELOPMENT AGREEMENT BY THREE YEARS THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: SECTION I. RECITALS A. By Ordinance 2005-22 adopted on or about November 21, 2005, the City of Gilroy approved a development agreement (the “Development Agreement”) pursuant to California Government Code sections 65864 through 65869.5 (“State Law”), by and between Glen Loma Corporation and various owners of property(collectively, “GLR”), to govern construction of a multi-phase project consisting of residential and commercial development for the Glen Loma Ranch project encompassing approximately 359 acres as more fully described in the Glen Loma Specific Plan (“Specific Plan”) adopted on November 7, 2005 (the “Project”). The Specific Plan also s ets forth the detailed development standards and guidelines and an implementation program for the development of the Project. Ordinance 2005-22 became effective on December 21, 2005, thirty (30) days after adoption, and on the same date, the Development Agreement took effect. B. Pursuant to the California Environmental Quality Act (“CEQA”), the City prepared an Environmental Impact Report (“EIR”) for the Project, which included the Specific Plan itself and the Development Agreement, which EIR was certified by the City Council on October 17, 2005, and for which Resolution No. 2005-81 was adopted on November 7, 2005 making the required findings for each significant effect and including a Statement of Overriding Considerations, and a mitigation/monitoring program was adopted in connection with the Project. C. In 2014, the City Council adopted an addendum to the certified EIR (“Addendum #1”) modifying and removing certain mitigation measures. D. In 2017, 2018, and 2022, the City and GLR entered into three Operating Memoranda pursuant to Paragraph 3.13 of the Development Agreement, each of which has become part of the Development Agreement. E. On October 7, 2024, the City Council approved the Fourth Operating Memorandum to the Development Agreement (“Fourth Operating Memorandum”) and also approved an Docusign Envelope ID: BFFB952B-D624-420B-9C80-03AC51C03C55 2 4854-5418-3918v1 ALF\04706099 addendum to the EIR (“Addendum #2”) making further minor modifications and clarifications to the Development Agreement. F. One provision of the Fourth Operating Memorandum requires that the City and GLR take all reasonable actions to extend the expiration date of the Term of the Development Agreement by three years, i.e., from December 21, 2025 through and including December 21, 2028. A First Amendment to Development Agreement (“First Amendment”), attached hereto as Exhibit A and incorporated herein by this reference, has been prepared to effectuate that extension of the Term of the Development Agreement. The First Amendment makes no other changes to the Development Agreement, and thus does not require independent CEQA review, beyond that already undertaken in connection with the adoption of the Fourth Operating Memorandum. G. A public hearing on the proposed First Amendment was held before the Planning Commission on December 5, 2024, for which public notice was given as provided by law and at which all persons desiring to be heard were given an opportunity to be heard, and following the hearing the Planning Commission recommended approval of the First Amendment. H. A public hearing on the proposed First Amendment was held before the City Council on January 6, 2025, for which public notice was given as provided by law, and at which all persons desiring to be heard were given an opportunity to be heard. The City Council has duly considered all testimony received, both oral and written. SECTION II. FINDINGS AND DETERMINATIONS On the basis of the foregoing Recitals and the specific conclusions set forth below, the City Council finds and determines that: 1. The Development Agreement as modified by the First Amendment is consistent with the objectives, policies, general land uses and programs specified and contained in the City’s General Plan and the Specific Plan. 2. The City has taken all steps required by State Law and by CEQA in order to approve the First Amendment. SECTION III. APPROVAL The City Council hereby approves the First Amendment and authorizes the Mayor to execute the First Amendment, a copy of which is attached hereto as Exhibit “A.” Docusign Envelope ID: BFFB952B-D624-420B-9C80-03AC51C03C55 3 4854-5418-3918v1 ALF\04706099 SECTION IV. EFFECTIVE DATE This ordinance shall take effect and be in full force thirty (30) days from and after its adoption, and on that same date the First Amendment shall take effect. SECTION V. RECORDATION Not later than ten (10) days after the City’s execution and acknowledgment of the First Amendment, the City Clerk shall submit the First Amendment to the County Recorder for recordation. PASSED AND ADOPTED this day of January 27, 2025, by the following vote: AYES: COUNCILMEMBERS: BRACCO, FUGAZZI, MARQUES, HILTON, RAMIREZ, CLINE, BOZZO NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: APPROVED: Greg Bozzo, Mayor ATTEST: Beth Minor, Interim City Clerk Docusign Envelope ID: BFFB952B-D624-420B-9C80-03AC51C03C55 4 4854-5418-3918v1 ALF\04706099 CERTIFICATE OF THE CLERK I, Beth Minor, Interim City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2025-01 is an original ordinance, or true and correct copy of a city Ordinance, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said held on Council held Monday, January 27, 2025, at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this Tuesday, January 27, 2025. ____________________________________ Beth Minor Interim City Clerk of the City of Gilroy Docusign Envelope ID: BFFB952B-D624-420B-9C80-03AC51C03C55 Exhibit A Docusign Envelope ID: BFFB952B-D624-420B-9C80-03AC51C03C55 4867-0861-9759v2 ALF\04706099 Page 1 of 4 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT – GLEN LOMA RANCH This First Amendment (“First Amendment”) to the Development Agreement between City of Gilroy (“City”), Glen Loma Corporation, and the owners of Glen Loma Ranch (“Owners”; Owners together with Glen Loma Corporation are collectively referred to as “GLR”), dated November 21, 2005 (the “Development Agreement”) for the development of the Glen Loma Ranch Project, an area composed of approximately 359 acres of land (of which approximately 185 acres will be developed) northeast of Santa Teresa Boulevard and southwest of Uvas Creek, is entered into in consideration of the following recitals and mutual promises and conditions. WHEREAS, the Development Agreement was approved by the City Council with the adoption of Ordinance 2005-22 on November 21, 2005 (the “Enacting Date”); and WHEREAS, pursuant to Section 1.1 of the Development Agreement, the Effective Date of the Development Agreement is 30 days after the Enacting Date, i.e., December 21, 2005, and pursuant to Section 2.2 of the Development Agreement, the Term of the Development Agreement expires on “the first to occur of the following dates: (a) the date which is twenty (20) years from the Effective Date, or (b) the date on which the development of the Project has been completed in accordance with this Agreement, including the construction the Public Improvement…”; and WHEREAS, Section 2.2. of the Development Agreement provides that an extension of three years to the term of the Development Agreement may be made by amendment to the Development Agreement; and WHEREAS, the City and GLR agreed in the Fourth Operating Memorandum to the Development Agreement, approved by the City Council on October 7, 2024, that they would take all steps reasonably necessary to extend the Term of the Development Agreement by three (3) years; and WHEREAS, The Development Agreement and this First Amendment now apply to the remaining undeveloped areas of the Glen Loma Project more particularly described in Exhibit “1” attached hereto and incorporated herein by this reference. NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and conditions contained herein, the City and GLR agree as follows: 1. In the above-quoted language in section 2.2 of the Development Agreement, the Phrase “the date which is twenty (20) years from the Effective Date” is hereby replaced with the following: “the date which is twenty-three (23) years from the Effective Date.” 2. Capitalized terms in this First Amendment that are not defined herein have the same meaning as in the Development Agreement. Docusign Envelope ID: BFFB952B-D624-420B-9C80-03AC51C03C55 4867-0861-9759v2 ALF\04706099 Page 2 of 4 3. This First Amendment may be signed in Counterparts. 4. In all other respects, the Development Agreement remains in full force and effect unmodified by this First Amendment. In case of conflict between the Development Agreement and this First Amendment, the terms of this First Amendment shall prevail. The parties execute this First Amendment as of , 2025. CITY: City of Gilroy, a California municipal corporation By: Greg Bozzo Mayor DEVELOPER: Glen Loma Corporation, a California corporation By: John M. Filice, Jr. President Approved as to Form: By: Andrew L. Faber City Attorney Docusign Envelope ID: BFFB952B-D624-420B-9C80-03AC51C03C55 4867-0861-9759v2 ALF\04706099 Page 3 of 4 OWNERS: Filice Family Estate, a California limited partnership by its General Partner, Cugini Calabria LLC a California limited liability company By: John M. Filice, Jr. Manager Christopher Ranch LLC, a California limited liability company By: The Christopher Family Partnership, a California limited partnership By: Name: Title: D Christopher & Sons LLC, a California limited liability company By: Name: Name: Title: Title: Docusign Envelope ID: BFFB952B-D624-420B-9C80-03AC51C03C55 4867-0861-9759v2 ALF\04706099 Page 4 of 4 EXHIBIT “1” PROPERTY DESCRIPTION Real properties in the City of Gilroy, County of Santa Clara, State of California, described as follows: Parcel P as shown on the map entitled "TRACT 10472 TOWN CENTER", recorded September 24, 2020, in Book 932, of Maps at Pages 55-61, Santa Clara County records. APN: 808-58-002 and 808-58-003 and Parcels B and C, as shown on the map entitled "Tract 10520, NEBBIOLO, MALVASIA & THE GLEN", recorded September 30, 2020, in Book 933, of Maps at Pages 13-26, Santa Clara County records. APN: 808-58-005 (Parcel B) and 808-18-032 (Parcel C) Docusign Envelope ID: BFFB952B-D624-420B-9C80-03AC51C03C55 CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189 State of California County of On Date before me, , Here Insert Name and Title of the Officer personally appeared Name(s) of Signer(s) , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Place Notary Seal and/or Stamp Above Signature Signature of Notary Public OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer’s Name: ☐ Corporate Officer – Title(s): ☐ Partner – ☐ Limited ☐ General ☐ Individual ☐ Attorney in Fact ☐ Trustee ☐ Guardian or Conservator ☐ Other: Signer is Representing: Signer’s Name: ☐ Corporate Officer – Title(s): ☐ Partner – ☐ Limited ☐ General ☐ Individual ☐ Attorney in Fact ☐ Trustee ☐ Guardian or Conservator ☐ Other: Signer is Representing: ©2018 National Notary Association } A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. Docusign Envelope ID: BFFB952B-D624-420B-9C80-03AC51C03C55