| | | | | | | | Agenda Item - 4.i.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Lisa L. Kim
| | Dept.: | City Manager
| Dept.: | Economic Development
| | Subject: | Approval of agreements with HELIX Environmental Planning, Inc., and Lorraine Mendez & Associates to provide environmental analysis services; and approval of a Reimbursement Agreement with New Age Garden Grove LLC, to reimburse costs for environmental reporting. (Action Item) | Date: | 12/12/2017 |
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| | | | | | | | OBJECTIVE
The purpose of this report is to request City Council approve agreements with HELIX Environmental Planning, Inc. to provide preparation and processing of the California Environmental Quality Act (CEQA) compliance documents, and Lorraine Mendez & Associates for services associated with the National Environmental Policy Act (NEPA); and to also approve a Reimbursement Agreement with New Age Garden Grove, LLC. (“Developer”) to reimburse for the costs of the environmental reporting. |
| | | | | | | | BACKGROUND
In May 2017, the City and Developer entered into an Amended and Restated Exclusive Negotiation Agreement (ENA) for the development of the Nickelodeon Resort Hotel located at the northwest corner of Harbor Boulevard and Twintree Avenue. The Developer has prepared a revised draft Final Development Concept Package pursuant to the ENA Schedule. The next step for the development is the preparation and processing of the California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) compliance documents, which analyze the projects potential environmental impacts. |
| | | | | | | | DISCUSSION
The Developer has submitted preliminary plans to the City to develop a 560-room Nickelodeon Resort Hotel. The proposed development is approximately 10-acres. The resort would be comprised of a mix of guestrooms, timeshares, resort amenities, landscape decks, and on-site parking. Specifically, two buildings between 14 and 18 stories tall would be developed to include 164,000 square feet (sf) of retail and resort amenities on the first two floors, followed by 500 guestrooms and 60 timeshare units comprising about 600,000 sf on the remaining floors. A total of 808 parking stalls are proposed in an underground and ground-level parking structure. The proposed development will require a general plan and zone amendment to facilitate the development. The City solicited the proposal for the preparation and processing of California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) compliance documents to analyze the development’s potential environmental impacts.
HELIX Environmental Planning, Inc. (Consultant) was selected to prepare the necessary CEQA documents for the development. The proposed scope of work outlines anticipated tasks to prepare a Mitigated Negative Declaration and/or Environmental Impact Report subject to the determination of the Initial Study. The estimated cost for HELIX Environmental Planning, Inc. shall not exceed $203,841 (See attachment No. 1).
In addition, the project needs to comply with NEPA. Lorraine Mendez & Associates (Consultant) was selected to prepare the necessary NEPA documents for the Project. The City has received a bid from Lorraine Mendez & Associates to analyze the impacts of the development in accordance with NEPA in the amount of $14,400 (See attachment 2).
The amount of both contracts and all related costs shall be reimbursed by the Developer pursuant to a Reimbursement Agreement (See attachment 3). Both CEQA and NEPA documents for the development will be considered by the Planning Commission and City Council. Due to the nature of the work required to produce the Environmental Reports, it is recommended that these services be contracted to consultants that specialize in analyzing development impacts related to CEQA and NEPA. As the local Land Use Agency, the City will oversee the work of the Consultants, but the cost of the Reports are to be paid by the Developer. |
| | | | | | | | FINANCIAL IMPACT
Approval of the Professional Services Agreement with Helix Environmental Planning, Inc. and the Professional Services Agreement with Lorraine Mendez & Associates will have no cost to the City. The Developer will deposit funds in the amount of both contracts with the City. The funding will be administered through a Reimbursement Agreement between the City and Developer, which requires the Developer to pay for all cost associated with preparation of the Reports. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Approve a Professional Services Agreement with HELIX Environmental Planning, Inc., to provide preparation and processing of the California Environmental Quality Act (CEQA) compliance report for an amount up to $203,840;
- Approve a Professional Services Agreement with Lorraine Mendez & Associates for services associated with the National Environmental Policy Act (NEPA) report for an amount up to $14,400;
- Approve a Reimbursement Agreement with New Age Garden Grove, LLC, for the cost of the environmental reports paid by the City; and
- Authorize the City Manager to sign the agreements and make minor modifications to all three Agreements as appropriate, on behalf of the City.
By: Monica Covarrubias, Sr. Economic Development Specialist
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