The subject site is a 9.01-acre lot, located at the northwest corner of Lewis Street and Garden Grove Boulevard, owned by Christ Catholic Cathedral Facilities Corporation, and is currently improved with religious institutional and school uses.  Until 1962, the subject site and much of the surrounding area was planted with orchards and pastures.  In 1965, the orchards on the site were cleared and the church, rectory, parish hall, administrative buildings, classroom buildings, recreation area for the school, and parking areas were constructed.  In the early 1970s, the SR-22 freeway was constructed and Lewis Street was realigned to its present configuration.  As a result of the construction of the freeway and realignment of Lewis Street, the boundary between the Cities of Garden Grove and Orange currently bisects the site, resulting in a small portion of the site being located in the City of Orange.  In 1999, the City of Garden Grove approved land use entitlements, which allowed for the construction of a 15,500 square foot sanctuary church building and a spire.  In 2005, the church improvements were completed, and the site has remained unchanged ever since. 

Shea Homes has requested the City take various land use actions necessary for it to develop a gated small lot subdivision with 70 single-family detached residential units and related street and open space improvements on the subject site.  In order to facilitate development of the Project, the applicant has also requested that the City initiate proceedings with the Orange County Local Agency Formation Commission (LAFCO) for a change of organization that would adjust the boundary between the Cities of Garden Grove and Orange and result in the detachment and annexation of approximately 0.901 acres from the City of Orange to the City of Garden Grove and the Garden Grove Sanitary District.  On April 6, 2017, the Planning Commission held a Public Hearing to consider General Plan Amendment No. GPA-001-2017, Planned Unit Development No. PUD-006-2017, Tentative Tract Map No. TT-17927-2017, Site Plan No. SP-028-2017, and Development Agreement No. DA-006-2017.  In addition to the applicant, one (1) member of the public came forward to speak in support of the project.  By a vote of 6-0 (with 1 commissioner absent), the Planning Commission adopted Resolutions (1) recommending City Council adoption of a Mitigated Negative Declaration and a Mitigation Monitoring and Reporting Program for the proposed Project and approval of GPA-001-2017, PUD-006-2017, and DA-006-2017, and (2) contingently approving SP-028-2017 and TT-17927-2017, subject to specified conditions of approval.

Project Summary:

The proposed Project is described in detail in the April 6, 2017, Planning Commission Staff Report (Attachment 1).  It consists of a gated small lot subdivision with 70 single-family residential detached units with attached enclosed two-car garages, along with related street and open space improvements, and has been designed to satisfy the special requirements set forth in Municipal Code Section 9.12.040.060 for Small Lot Subdivisions.

On April 6, 2017, the Planning Commission approved Site Plan No. SP-028-2017 and Tentative Tract Map No. TT-1797-2017 for the proposed Project, along with related conditions of approval. (See Attachment 2).  These approvals are contingent upon the City Council’s approval of the proposed General Plan and Zoning changes and Orange County LAFCO approval of the proposed detachment/annexation.

Change of Organization:

Orange County LAFCO is the government agency charged with controlling the boundaries of cities and special districts.  Per state statute, Orange County LAFCO has the authority to adopt and update a "sphere of influence" for each city and to approve or disapprove all boundary changes/detachments/annexations.  A city's "sphere of influence" includes that property located outside of the city that is designated for potential future annexation to the city.  In order for Orange County LAFCO to approve the annexation of property to a city, the city's "sphere of influence" must include the property, and the city's General Plan must cover the property.  A city is also to "pre-zone" property within its sphere of influence so that zoning and development standards are already in place when and if the property is ultimately annexed to the city.

Currently, a portion of the project site, at the northeast corner, is located within the jurisdictional territory and Sphere of Influence of the City of Orange.  Development of the proposed Project requires a sphere of influence change and detachment/annexation of 0.901 acres from the City of Orange to the City of Garden Grove and the Garden Grove Sanitary District. The applicant has requested that the City of Garden Grove initiate the required change of organization with Orange County LAFCO, and the City Attorney has prepared the necessary City Council Resolution to initiate the proceedings.  If the City Council approves the proposed General Plan Amendment, Zoning Ordinance, and Resolution authorizing initiation of LAFCO proceedings, City staff will submit an application to LAFCO requesting to amend its sphere of influence and to approve detachment/annexation of the subject 0.901 acres from the City of Orange to the City of Garden Grove and the Garden Grove Sanitary District.

The Cities of Garden Grove and Orange staff have discussed and agreed in principal on the terms of the proposed reorganization of the city boundaries and annexation of the subject 0.901 acres to the City of Garden Grove.  The City of Orange has not objected to the proposed reorganization and annexation.  In summary, the reorganization consists of: (i) the detachment of 0.901 acres from the City of Orange; (ii) annexation of the same territory to the City of Garden Grove and the Garden Grove Sanitary District; and (iii) concurrent amendment to each agency’s sphere of influence.  The reorganization would adjust the boundary between the City of Garden Grove and the City of Orange so that it would follow the centerline of Lewis Street north to the centerline of El Prado Avenue.  Just north of the triangular section of undeveloped land created by the rerouting of Lewis Street as a result of the construction of the SR-22 freeway, the adjusted boundary would rejoin the existing boundary between the two cities.

City staff has discussed the parameters of the proposal with the property owners and LAFCO is in support of the request.  The property owners have agreed to pay all processing fees associated with the annexation and necessary City land use actions and, following the annexation, to pay all generally applicable City taxes and assessments, including the City’s Paramedic Tax and City-wide street lighting and park maintenance assessments.  These additional tax and assessment revenues will help offset the incremental additional costs of providing fire, police, and other City services to the annexed property.

Once LAFCO proceedings have commenced, a property tax-sharing agreement will need to be negotiated and approved by both the City of Orange (as the de-annexing agency) and the City of Garden Grove (as the annexing agency) prior to the LAFCO taking formal action on the boundary reorganization.  Upon completion of the annexation, the City will take over responsibility for providing police, fire, and other city services, including water service, to the property, and will also assume ownership of, and responsibility for all right-of-way and public facilities adjacent to the property that are currently owned by the City of Orange.

Before Orange County LAFCO can act on the City’s forthcoming application and approve the sphere of influence amendments and annexation, the City of Garden Grove must amend its General Plan to cover the 0.901 acres of territory and adopt "pre-zoning" for this territory.  The Planning Commission has recommended that the City Council approve the proposed General Plan Land Use Map and Zoning Map amendments needed to develop the site and to facilitate the annexation of the subject 0.901 acres to the City of Garden Grove.

General Plan Amendment No. GPA-001-2017:

General Plan Amendment No. GPA-001-2017 would amend the City of Garden Grove’s General Plan Land Use Map to modify the General Plan Land Use Designation of the portion of the project site that is located within Garden Grove from Civic/Institutional to Low Density Residential and include the annexed properties under the General Plan Land Use Designation of Low Density Residential.  The Low Density Residential (LDR) Land Use Designation is intended for the development of single-family residential neighborhoods.  According to the General Plan, densities for the LDR designation range from 1 to a maximum of 9 dwelling units per acre.  The proposed project will have a net density of 7.8 dwelling units per acre, which is less than the maximum allowed.

The site’s proposed single-family residential type housing is similar and compatible with the surrounding properties, which have both single-family and multi-family housing.  The Low Density Residential Land Use designation is appropriate for the site and will ensure that the site is maintained in continuity with surrounding land uses. In the event Orange County LAFCO does not approve the proposed Lewis Street Reorganization (RO 01-17), the General Plan Land Use Designation of site would remain Civic/Institutional.

Planned Unit Development No. PUD-006-2017:

As part of the Project, the City’s Zoning Map would be amended to “pre-zone” the portion of the project site to be annexed and to change the zoning of the portion of the project site located in Garden Grove to Residential Planned Unit Development zoning (PUD-006-2017) with R-1 (Single-Family Residential) base zoning.  Upon LAFCO approval of the proposed annexation, the annexed properties would automatically become subject to PUD-006-2017 zoning, with R-1 base zoning.  PUD-006-2017 is the residential Planned Unit Development zoning that establishes the development standards of the development, which are subject to the special requirements set forth in Municipal Code Section 9.12.040.060 for Small Lot Subdivisions.  In the event Orange County LAFCO does not approve the proposed Lewis Street Reorganization (RO 01-17), the site’s existing zoning would remain.

Development Agreement:

The property owner will enter into a Development Agreement with the City. Pursuant to the proposed Development Agreement, the property owner will be guaranteed four years in which to construct the project in accordance with the approved General Plan designation, PUD zoning, Site Plan and Tentative Tract Map, and the City will receive from the developer a Development Agreement fee not to exceed $134,120.00. The Development Agreement is intended to ensure that the Project Applicant has provided funding sufficient to ensure that the infrastructure and public facilities required by development of the Project site are constructed, and that the infrastructure and public facilities would be available no later than when required to serve the demand generated by development of the property.

Environmental Review:

In conjunction with the proposed project, the City (through a consultant) has prepared an initial study and Mitigated Negative Declaration (“IS/MND”) in accordance with the California Environmental Quality Act (“CEQA”) analyzing the potential environmental impacts of the proposed small lot subdivision with 70 single-family detached residential units and related street and open space improvements.  In accordance with CEQA, the City made the IS/MND available for public review and comment, and the public review period ended on April 4, 2017.  Comments received and responses to comments have also been made available for public review.  The IS/MND concludes that the proposed project will have no, or a less than significant, impact on all relevant environmental factors, provided specified mitigation measures are incorporated.  The Planning Commission has adopted a Resolution recommending that the Garden Grove City Council adopt a Mitigated Negative Declaration and an associated Mitigation Monitoring and Reporting Program for the Project.

Annexation of the subject 0.901 acres of property from the City of Orange to the City of Garden Grove will result in additional costs to the City associated with the extension of City services to the property.  City staff has discussed the parameters of the proposal with the property owners and LAFCO and is in support of the request.  The property owners have entered into an agreement with the City that will be effective following the annexation, to pay all generally applicable City taxes and assessments, including the City’s Paramedic Tax and City-wide street lighting and park maintenance assessments.  These additional tax and assessment revenues will help offset the incremental additional costs of providing fire, police, and other City services to the annexed property.

It is recommended that the City Council:

• Conduct a Public Hearing;

• Adopt a Mitigated Negative Declaration and an associated Mitigation Monitoring and Reporting Program for the Project;

• Adopt a Resolution approving General Plan Amendment No. GPA-001-2017 to amend the City of Garden Grove’s General Plan Land Use Map to modify the General Plan Land Use Designation of the portion of the project site that is located within the City of Garden Grove from Civic/Institutional to Low Density Residential and to include the properties to be annexed under the General Plan Land use Designation of Low Density Residential;

• Introduce and conduct the first reading of an Ordinance approving Planned Unit Development No. PUD-006-2017 to amend the City’s official Zoning Map to change the zoning for the portion of the project site that is located within the City of Garden Grove and to “pre-zone” the properties to be annexed to residential Planned Unit Development zoning (PUD-006-2017) with R-1 (Single-Family Residential) base zoning;

• Introduce and conduct the first reading of an Ordinance approving Development Agreement No. DA-006-2017;

• Adopt a Resolution authorizing the initiation of, and recommending the Orange County Local Agency Formation Commission take, proceedings for the Lewis Street Reorganization (RO01-17), consisting of the detachment and annexation of approximately 0.901 acres of territory from the City of Orange to the City of Garden Grove and the Garden Grove Sanitary District, in the manner provided by the Cortese/Knox/Hertzberg Local Government Reorganization Act of 2000;

• Authorize the City Manager to take all actions and execute all documents necessary to initiate and process an application with LAFCO for Lewis Street Reorganization (RO 01-17) and to negotiate a property tax exchange agreement; and

• Authorize the City Clerk to execute a certificate of acceptance of all property interests to be transferred from the City of Orange to the City of Garden Grove pursuant to Lewis Street Reorganization (RO 01-17).

By:  Chris Chung, Associate Planner