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    17.    
City Council Regular
Meeting Date: 10/24/2017  

SUBJECT:
AGREEMENT WITH THE CITY OF CHINO AND TURNER CHINO HILLS, LLC FOR REIMBURSEMENT OF IMPROVEMENTS AT WEST MONTE VISTA AVENUE AND CHINO HILLS PARKWAY
RECOMMENDATION:
Authorize execution of the Agreement with the City of Chino And Turner Chino Hills, LLC for Reimbursement of Improvements at West Monte Vista Avenue and Chino Hills Parkway.
BACKGROUND/ANALYSIS:
The City of Chino required the developer of a warehouse/distribution, light industrial and retail development project called “Majestic Chino Gateway,” as a mitigation measure for obtaining the approval of entitlements, to provide $7,705 to the City of Chino in trust for the construction of a traffic light at the intersection of Monte Vista Avenue and Chino Hills Parkway. Since there were no plans at the time of the City of Chino’s approval of Majestic Chino Gateway, the approved mitigation measures required the City of Chino and the City of Chino Hills to come to an agreement on a fair-share multi-jurisdictional effort and study that guaranteed this project (along with two others) would be built.  If the agreement was not agreed to within five years, per the Mitigation Fee Act, the money was to be returned to that developer. 

Subsequently, the Turner Chino Hills, LLC’s (Turner) “Fairfield” project was approved in the City of Chino Hills. Turner was required to construct that same traffic light at the intersection of Monte Vista Avenue and Chino Hills Parkway for which the $7,705 had been placed in trust with the City of Chino.  Turner completed the installation of the traffic light on or around December 13, 2016.  Since the traffic light was completed, the mitigation measure was substantially complied with and a study and multi-jurisdictional agreement were no longer necessary for this traffic light.  Thus, the $7,705 is owed to Turner by the City of Chino. 

Public agencies have substantial discretion to determine what constitutes compliance with adopted mitigation measures, as long as the determination is reasonable and will not result in significant new impacts.  The City of Chino is requiring that the City of Chino Hills and Turner enter into the proposed Agreement before it will reimburse Turner the $7,705 owed.  Given that by completing the traffic light the impacts were fully mitigated, City staff recommends the acceptance of the Agreement with the City of Chino and Turner.

In the Agreement, Turner agrees that when the City of Chino pays the $7,705 to Turner, that completely and adequately fulfills the fair share it is owed by City of Chino for installation of the traffic light at the intersection of West Monte Vista Avenue and Chino Hills Parkway.  By accepting this Agreement, the City of Chino Hills also acknowledges that the project fair-share amount of $7,705 completely and adequately fulfills the City of Chino’s fair-share cost for installation of the traffic light at the intersection of West Monte Vista Avenue and Chino Hills Parkway.  Furthermore, the Agreement provides that the City of Chino shall pay the Developer the project fair-share amount of $7,705 within 60 days of the agreement date. 
ENVIRONMENTAL (CEQA) REVIEW:
This project is a necessarily included element of the project considered in the Mitigated Negative Declaration ("MND”) adopted by the City Council for the Fairfield project.  No substantial changes have been made in the project, no substantial changes in the circumstances under which the project is being undertaken and no new information of substantial importance to the project which was not known or could not have been known when the MND was adopted have become known.  Therefore, no further environmental review is required. 
FISCAL IMPACT:
This action has no impact to the General Fund.
REVIEWED BY OTHERS:
This item has been reviewed by the City Attorney and the Finance Director.
Attachments
Agreement with Chino

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