| | | | | | | | Agenda Item - 4.d.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Lisa L. Kim
| | Dept.: | City Manager
| Dept.: | Economic Development
| | Subject: | Approval of an agreement with LSA Associates to provide California Environmental Quality Act compliance documents for the proposed House Foods expansion project at 7351 and 7421 Orangewood Avenue, Garden Grove; and approval of a Reimbursement Agreement with House Foods America Corporation. (Action Item) | Date: | 1/23/2018 |
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| | | | | | | | OBJECTIVE
The purpose of this report is to request City Council approval of an agreement with LSA Associates to provide preparation and processing of California Environmental Quality Act (CEQA) compliance documents, and to approve a Reimbursement Agreement with House Foods America Corporation.
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| | | | | | | | BACKGROUND
In 1997, House Foods America Corporation (Developer) acquired the property located at 7351 Orangewood Avenue for food manufacturing. In 2017, the Developer acquired the adjacent property, located at 7421 Orangewood Avenue (Site), currently developed with an industrial building, with the intention to construct a 37,274 square foot expansion between the two existing buildings, and a lot line adjustment to consolidate the two properties into one (Project). Significant progress with the Developer and staff to develop preliminary plans that would meet the City’s and the California Building Code requirements is near completion. |
| | | | | | | | DISCUSSION
In November 2017, the Developer submitted preliminary plans for a 37,274 square foot expansion at the Site between the two existing industrial buildings, and a request for a lot line adjustment to consolidate the two properties into one. Based on the proposed Project, the City requested for the preparation and processing of CEQA compliance documents to analyze the Project’s potential impacts in accordance with CEQA.
LSA Associates was selected to prepare the necessary CEQA documents for the Project. The proposed scope of work outlines anticipated tasks to prepare an Initial Study/Mitigated Negative Declaration (IS/MND) and technical reports. The estimated cost shall not exceed $67,350. The entire amount of the contract and all related costs shall be reimbursed by the Developer pursuant to a Reimbursement Agreement.
Upon completion of the CEQA documents for the Project, it will be considered by the Planning Commission. Due to the nature of the work that is performed, such tasks are contracted with a consultant that specialize in analyzing development impacts related to CEQA. As the local land use agency, the City oversees the work, but the cost of the CEQA documents are paid by the Developer. |
| | | | | | | | FINANCIAL IMPACT
Approval of the Professional Services Agreement with LSA Associates will have no net cost to the City. The Developer will deposit funds with the City. The funds would be administered through a Reimbursement Agreement between the City and the Developer, which requires the Developer to pay all costs associated with preparation of the CEQA documents. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Approve the Professional Services Agreement with LSA Associates in the amount of $67,350, to prepare and process the California Environmental Quality Act compliance documents for the Project site located at 7351 and 7421 Orangewood Avenue, Garden Grove;
- Approve the Reimbursement Agreement with House Foods America Corporation for the cost of the Professional Services Agreement with LSA Associates; and
- Authorize the City Manager to execute the agreements on behalf of the City, and to make minor modifications as appropriate.
By: Mary Medrano, Associate Planner
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