TO: Chair and Members of the Planning Commission
THRU: Anna Pehoushek, Assistant Community Development Director
FROM: Robert Garcia, Senior Planner
1. Subject
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Public Hearing to consider First Amendment to an existing Development Agreement with Chapman Orange Holdings, LLC for a hotel project and finding of CEQA exemption.
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2. Summary
The proposed First Amendment to a Development Agreement with Chapman Orange Holdings, LLC would extend the Development Agreement and associated entitlements to build a Marriott hotel at 3000 W Chapman Avenue for an additional two and a half years.
3. Recommended Action
recommendation
1. Adopt Planning Commission Resolution No. 18-24 entitled:
A Resolution of the Planning Commission recommending that the City Council of the City of Orange approve a First Amendment to a Development Agreement with Chapman Orange Holdings, LLC for a hotel project located at 3000 West Chapman Avenue.
2. Find that the project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines, Section 15332 (Class 32 - In-Fill Development).
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4. AUTHORIZING GUIDELINES
Section 65868 of the California Government Code and Section 17.44.160 of the Orange Municipal Code (OMC) provides for the amendment of a Development Agreement by mutual consent of the parties to the agreement. The procedure for proposing and approving an amendment to a Development Agreement is the same procedure for entering into a Development Agreement, subject to a noticed public hearing held by the Planning Commission and the City Council.
5. background AND Discussion
On June 4, 2018, the Planning Commission approved a new Marriott dual brand hotel to replace a Motel 6 and Denny’s restaurant and adopted Resolution No. PC 20-18 (Attachment 3) approving Major Site Plan Review No. 0937-18, Design Review No. 4937-18, and Administrative Adjustment No. 0264-18.
On June 1, 2020, a request for a one-year extension to entitlements was granted by the Planning Commission.
On June 8, 2021, the City Council approved a Development Agreement to extend the entitlements for an additional three years by Ordinance 08-21 (Attachment 4).
The original development team was not able to bring the hotel into fruition since its approval in 2018. The property owner re-established control of the property development and has requested a two and a half year extension of the Development Agreement. The two and a half year time period would allow the owner time to enter into an agreement with a new development team to bring forward a hotel on the site. The additional time would also allow the owner to refine the hotel project by reducing the number of hotel rooms and determine if ancillary retail facilities are viable. City staff would review any proposed changes for substantial conformance with the approved entitlements. In exchange for the two and a half year extension as a public benefit, the owner has agreed to provide parking spaces for public use for the new park to be constructed adjacent to the hotel site along the Santa Ana River Trail. The parking spaces will be available to park patrons during park hours. The First Amendment to the Development Agreement (Attachment 2) would start on July 13, 2024, and would expire on December 31, 2026, if the entitlements are not utilized.
The First Amendment to the Development Agreement is structured to allow development flexibility for the owner to construct the hotel in the next two and a half years and, in exchange, the City of Orange will secure park parking on the project site as a public benefit.
6. public notice
On May 9, 2024, the City sent a Notice of Action by the Planning Commission to a total of 462 property owners/tenants within a 400-foot radius of the project site, and persons specifically requesting notice. The request was published in newspaper of general circulation and the project site was also posted with one notification on that same date.
7. environmental review
The proposed project was determined to be categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15332 (Class 32 - In-Fill Development) because the project will consist of the construction of a new 195,000 SF hotel on a less than 5-acre site. The site complies with the existing general plan and zoning and is located within an urbanized area. Technical studies demonstrate that this project would not result in any significant traffic, noise, air quality, or water quality impacts.
The proposed First Amendment to the Development Agreement does not involve any change in land use or entitlements. Therefore, no further environmental analysis is required.
8. ADVISORY BOARD ACTION
None required.
9. ATTACHMENTS
• Attachment 1 Planning Commission Resolution No. 18-24
• Attachment 2 Draft First Amendment to Development Agreement
• Attachment 3 Planning Commission Resolution No. 20-18
• Attachment 4 City of Orange Ordinance 08-21 with Development Agreement