TO: HONORABLE CHAIR AND MEMBERS OF THE PLANNING
COMMISSION
FROM: Carl Stiehl, City Planner
PREPARED BY: David Chantarangsu, AICP, Development Services Director
SUBJECT:
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Consideration of a Development Agreement related to the development of the Triangle Project.
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RECOMMENDATION
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1. Open the public hearing and receive public comment;
2. Find that the action is consistent with the approved 2024 Addendum to the Subsequent Environmental Impact Report certified for the Triangle Specific Plan (State Clearinghouse [SCH] No. 2008061104) as described in this staff report and the attached Resolution; and,
3. Approve the attached Resolution recommending that the City Council approve the proposed Development Agreement attached as an exhibit to the Resolution.
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ENVIRONMENTAL
On August 20, 2024 the City Council considered and approved an Addendum (2024 Addendum) to the previously adopted Subsequent Environmental Impact Report pursuant to the California Environmental Quality Act Guidelines (Cal. Code Regs. Title 14) Sections 15162 and 15164 by adopting Resolution No. 24-4779 for The Shops at the Triangle project. The proposed Development Agreement is consistent with the 2024 Addendum as it contemplates activities that were anticipated to be carried out.
PRIOR ACTION/VOTE
On August 20, 2024 the City Council took several actions approving the 2024 Addendum, Specific Plan Amendment 2023-00003, Tentative Tract Map 38622 (TTM-2022-2706) and Development Plan 2022-2705.
On September 3, 2024 the City Council Adopted Ordinance No. 607-24 approving and adopting Triangle Specific Plan Amendment No. 2 (Specific Plan Amendment 2023-00003), to Specific Plan No. 276.
Prior to the most recent City actions referenced above, the County of Riverside and City took actions to approve development on the site in 1990 and 2013 respectively for development of the property.
EXECUTIVE SUMMARY
The Planning Commission will make a recommendation to the City Council on a proposed Development Agreement (DA) for the development of the Triangle retail development project. The proposed DA addresses Billboard Relocation for two existing billboards located on the site, and potential assistance to the Applicant (Domenigoni Barton Properties, LLC., and Tres Estrellas, LLC.) for off-site property acquisition for street widening purposes at the intersection of Murrieta Hot Springs Road and Sparkman Drive.
BACKGROUND
The development history of the project goes back to 1990 when prior to the City’s incorporation, the County of Riverside approved a specific plan for the property (Specific Plan 276, or SP-276) for the development of the Murrieta Springs Mall. It anticipated a 1.76 million square foot retail shopping center. The County entered into Development Agreement 54 (DA No. 54) vesting the Specific Plan which remained effective even after City’s incorporation. The City approved amendments to the DA, recording an amendment on February 23, 1994. The terms of the DA continued into 2023 but is now expired. In 2013, the City approved the first amendment to SP-276 changing the name to “The Triangle”. The amendment anticipated an outdoor mall instead of an indoor mall, changed development standards accordingly, and changed the amount retail, office, restaurant, and entertainment square footage to be developed as shown below: Specific Plan Amendment No. 1 Anticipated Development Land Use Anticipated Building Area (Square Feet) Retail 640,914 Office 779,082 Hotel (220 Rooms) 148,000 Entertainment 74,660 Restaurant 125,258 Maximum Total for all Land Use Categories 1,767,914 In 2024, the City approved Specific Plan Amendment No. 2 to SP-276 and further modified development standards, approved a new tentative map to establish new parcel boundaries over the site, updated the project environmental documents and approved an updated site plan. The approved site plan builds on the outdoor retail center approach providing for approximately 279,500 square feet of retail development on 36.46 acres to begin development in an initial phase, accounting for approximately 25 buildings with twelve (12) of the buildings being pad buildings located along Murrieta Hot Springs Road. Larger retail buildings are “in-line” towards the rear of the first phase development area and accommodate retailers with larger building footprints. The approved 2024 entitlements are hereinafter referred to as “Project”. Approximately 26 acres will remain undeveloped for future phases and .72 acres are designated for public road purposes. Proposed Development Agreement Summary The City has a strategic interest in creating pathways forward on specific development issues or removing obstacles to facilitate the Project. Rising development costs, a difficult construction financing environment, and the constant changing nature of retail add risk to the Developer that could further delay development of the Project. Cities use development agreements (DAs) to provide more certainty to developers who are undertaking large projects by reducing developer risk. Through a DA, cities can take on risk for the benefit of project development by using powers and authorities under state law that are only reserved for public agencies. For the proposed DA, the Developer has requested assistance in addressing specific issues that help reduce Project costs for the items described below: Billboard Relocation The site has two static billboards located on each freeway frontage. The Developer requests that these billboards be allowed to be converted into a digital format through a future Relation Agreement. Advertising revenue would be a Project benefit to the Developer to help offset Project costs. Typically, the City’s Zoning Code (Title 16 of the Murrieta Municipal Code) requires removal of billboards rather than allowing them to be relocated and upgraded. Section 5 of the proposed DA addresses this topic. The terms of the Billboard Relocation will be subject to the Relocation Agreement which is approved by the City Council. Off-Site Traffic Improvements The development of the Project has always required improvement of an off-site intersection located on the north side of Murrieta Hot Springs Road at Sparkman Drive across from the Project. The intersection improvements would align with the Project’s western driveway but would require the acquisition of land from property located at the northwest corner of Murrieta Hot Springs Road and Sparkman Drive for intersection widening. The current intersection is being improved in conjunction with the development of a multi-family project known as the Terraces, but it does not include widening the intersection beyond the existing Sparkman Drive public right-of-way. Staff notes Sparkman Drive will eventually become Monroe Avenue. The proposed DA would allow the City to assist the Developer with property acquisition if needed. The DA requires the Developer to initially attempt acquisition of land needed to widen the intersection through private negotiation. Should the private negotiations fail, the City could acquire the property needed through condemnation proceedings. The Developer would contribute funds to the acquisition activities based on an appraisal approach commonly used for acquiring public rights-of-way. The City would cover the cost of its attorney’s fees and the cost of land over the Developer’s appraised value of the property to be acquired. This topic is covered in Sections 3.8 and 3.9 of the proposed DA. Miscellaneous Provisions In addition to the topics described above, the DA includes other sections that are typically found in development agreements addressing term, cancellation, amendments, insurance and indemnification, and defaults and remedies. In order to track the implementation of the DA over time, an annual review process is included in the proposed DA at Section 6.1. Staff notes the proposed DA would have a term of 10 years.
ATTACHMENTS
Attachment 1 - Resolution and Proposed Development Agreement