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HomeMy WebLinkAboutItem 4.04 Grafton Station/Lowe's CITY CLERK File # D~[5lOJ-[3J[Q] )( Gx::o-60 AGENDA STATEMENT CITY COUNCIL MEETING DATE: SEPTEMBER 5,2006 P A 05-030 Grafton Station Stage 1 Development Plan Amendment, Stage 2 Planned Development Rezone and Development Agreement for the Grafton Station retail shopping center- Second Reading Report Prepared by Erica Fraser, Senior Planne~ SUBJECT: ATTACHMENTS: 1) 2) 3) 4) RECOMMENDATION: 1) , .\~ "...~ \ -PI 2) FINANCIAL STATEMENT: Ordinance approving a Stage 1 Development Plan Amendment and a Stage 2 Rezone with the Amended Stage I Development Plan attached as Exhibit A, the Stage 2 Development Plan attached as Exhibit B and the Stage 2 PD Rezone booklet attached as Exhibit C. Ordinance approving a Development Agreement between Lowe's HIW, Inc. and the City of Dublin for the Lowe's Home Improvement Warehouse, with the Development Agreement attached as Exhibit A. August 15,2006 City Council Agenda Statement (w/o attachments). Location Map Waive Reading and Adopt Ordinance (Attachment 1) rezoning the project area and approving an amendment to the Stage 1 Development Plan and approving a related Stage 2 Development Plans with the Amended Stage 1 Development Plan attached as Exhibit A, the Stage 2 Development Plan attached as Exhibit Band the Stage 2 PD Rezone booklet attached as Exhibit C; and Waive Reading and Adopt Ordinance (Attachment 2) approving a Development Agreement between the City of Dublin and Lowe's HIW, Inc. for a portion of the project site with the Development Agreement attached as Exhibit A. No financial impact. COPIES TO: Applicant/Property Owner File In House Distribution ITEMNO.~ Page I of2 G:\P A#\2005\05-030 Lowe's\CC\CC Agenda Statement Second Reading.doc DESCRIPTION: Background The project, commonly referred to as Grafton Station, is for a 318,000 square foot retail shopping center which will be comprised of a variety of buildings, parking and landscaping. Grafton Station is located south of Dublin Boulevard, north of Northside Drive and the 1-580 freeway, west of Grafton Street and east of Brannigan Street. The Project also includes a Development Agreement for a 138,135 square foot Lowe's Home Improvement Store with a 31,659 square foot outdoor garden center; and associated parking, landscaping, and adjacent street improvements. At the August 15,2006 City Council meeting, the Council conducted a public hearing, waived the reading and introduced an Ordinance which would approve an amendment to the Stage 1 Development Plan and approve the Stage 2 Planned Development Rezoning and waived the reading and introduced an Ordinance which would approve a Development Agreement between the City of Dublin and Lowe's HIW, Inc. The Staff Report from the August 15, 2006 City Council meeting is attached for additional information (Attachment 3). Environmental Review: On August 15,2006, the City Council adopted a Resolution approving a CEQA Addendum for the Grafton Station project. The California Environmental Quality Act (CEQA) Guidelines Section 15164 provides that an addendum to a previously certified Environmental Impact Report (EIR) may be prepared when the project requires a minor technical change to the EIR and there are no new significant environmental effects and no substantial increase in the severity of previously identified significant effects. The amendments to the Stage 1 Development Plan require environmental review due to the increase in gross acreage of the site (which results in an increase in the allowable floor area of the site). The increase in acreage allows an additional 25,059 square feet of commercial space to be constructed on the site. Although there will be an increase in the allowable floor area on the project site, the total commercial space of 318,000 square feet, which includes the additional 25,069 square feet, falls within the development potential which was studied for the Tassajara Gateway subarea in the Eastern Dublin EIR. A Statement of Overriding Considerations was also approved for the project. CONCLUSION: This application has been reviewed by applicable City departments and agencies and their comments have been incorporated into the Project and the proposed Conditions of Approval. On August 15, 2006, the City Council determined that the proposed Project was consistent with the Dublin General Plan, Eastern Dublin Specific Plan, and is compatible with the surrounding properties and similar improvements in the area, and the project site and therefore approved a CEQA Addendum and introduced Ordinances approving a Development Agreement, an amendment to the Stage 1 Development Plan and the Stage 2 Planned Development Rezoning. RECOMMENDATION: Staff recommends that the City Council: 1) Waive Reading and Adopt Ordinance (Attachment 1) rezoning the project area and approving an amendment to the Stage 1 Development Plan and approving a related Stage 2 Development Plans with the Amended Stage 1 Development Plan attached as Exhibit A, the Stage 2 Development Plan attached as Exhibit B and the Stage 2 PD Rezone booklet attached as Exhibit C; and 2) Waive Reading and Adopt Ordinance (Attachment 2) approving a Development Agreement between the City of Dublin and Lowe's HIW, Inc. for a portion of the project site with the Development Agreement attached as Exhibit A. Page 2 of2 /0 -f 31 ORDINANCE NO. XX - 06 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUBLIN ************* APPROVING AN AMENDMENT TO THE STAGE 1 DEVELOPMENT PLAN AND ~ STAGE 2 REZONING FOR THE PROJECT KNOWN AS GRAFTON STATION SHOPPING CENTER LOCATED AT THE SOUTHWEST CORNER OF DUBLIN BOULEVARD AND GRAFTON STREET AND BORDERED BY DUBLIN BOULEVARD AND NORTHSIDE DRIVE IN AREA H OF DUBLIN RANCH (APN 985-0036-009) P A 05-030 THE CITY COUNCIL OF THE CITY OF DUBLIN DOES HEREBY ORDAIN AS FOLLOWS: Section 1. RECITALS A. By Ordinance No. 6-00 the City Council rezoned the approximately 71-acre area known as Dublin Ranch Planning Area H to a Planned Development Zoning District and adopted a Stage 1 Development Plan for Area H. B. This Ordinance adopts an amendment to the Stage 1 Development Plan approved by the City Council on March 21,2000. C. This Ordinance amends the Stage 1 Development Plan for Dublin Ranch Planning Area H and adopts a Stage 2 Development Plan for a portion of Area H known as Grafton Station. Section 2. FINDINGS AND DETERMINATIONS A. Pursuant to Section 8.32.070 ofthe Dublin Municipal Code, the City Council finds as follows: 1. The Project, known as Grafton Station, Planned Development Zoning meets the purpose and intent of Chapter 8.32 in that it provides a comprehensive development plan that is tailored to the commercial land uses proposed on the Project site and creates a desirable use ofland that is sensitive to surrounding land uses by virtue of the layout and design, which is in close proximity to Dublin Boulevard and the 1-580 freeway. 2. The proposed amendment will be harmonious and compatible with existing and potential development in surrounding areas because: 1) the proposed development is consistent with the approved development for this property as approved under the Stage 1 Planned Development Zoning; and 2) the proposed development is consistent with the type of development, regional serving retail, as envisioned in the Eastern Dublin Specific Plan. B. Pursuant to Section 8.120.050.A and B of the Dublin Municipal Code, the City Council finds as follows: 1. The Stage 2 Development Plan for Grafton Station will be harmonious and compatible with existing and potential development in the surrounding area in that: 1) the land uses and site tit t-l Q/6/o b ATTACHMENT 1 Page 1 of 4 ~.. tJ.f 3'6 plan establish a commercial development (retail shopping center); 2) the proposed project is consistent with the Eastern Dublin Specific Plan and the Stage 1 Development Plan, as amended; 3) the project site has been designed to reduce impacts on the residential development across Dublin Boulevard and to be compatible with the community-serving retail development along Grafton Street in Area G; 4) the project site includes attractive landscaping and site elements including a location for public art, light fixtures, benches, plazas and pedestrian paths to create an attractive landscape palette and material palette for the shopping center; and 5) the Stage 2 Development Plan includes design guidelines to create an attractive shopping center which is compatible with the surrounding developments. 2. The project site is physically suitable for the type and intensity of the zoning district being proposed because 1) the project site will have a Floor Area Ratio (FAR) of .25 which is consistent with the FAR established in the Stage 1 Development Plan and the Eastern Dublin Specific Plan; 2) the proposed project will include retail and office uses which is consistent with the land use designations of General Commercial and General Commercial/Campus Office; and 3) as amended, the Stage 1 Development Plan will permit a maximum of 318,000 square feet of retail floor area which will maintain aFAR of .25 and will therefore be consistent with the Stage 2 Planned Development Rezone; 4) the Stage 2 Development Plan for the Grafton Station Planned Development Zoning has been designed to accommodate the topography of the Project site which typically is characterized as vacant, flat land suitable for the development of a shopping center and therefore physically suitable for the type and intensity of the proposed Planned Development Zoning district. 3. The Stage 2 Development Plan will not adversely affect the health or safety of persons residing or working in the vicinity or be detrimental to the public health, safety and welfare because the Project will comply with all applicable development regulations and standards and will implement all adopted mitigation measures. 4. The proposed amendment and the Stage 2 Planned Development Rezone is consistent with the Dublin General Plan, Eastern Dublin Specific Plan and the Stage 1 Planned Development Zoning because: 1) the proposed amendments to the use list are compatible with the permitted, conditional and temporary uses established under the Stage 1 Development Plan approved by the City Council; 2) the proposed amendments to the list of permitted, conditional and temporary uses are consistent with the land use designations of General Commercial and General Commercial/Office and the Eastern Dublin Specific Plan Tassajara Gateway subarea which envisions a mix of regional and community serving retail on the project site; 3) the proposed amendments to the site area to increase the overall gross acreage to 29.2 acres is due to the realignment of Dublin Boulevard and a more accurate measurement of the site since the adoption of the Stage 1 Development Plan; 4) the proposed Stage 2 Rezone is compatible with the intent of the Eastern Dublin Specific Plan for the Tassajara Gateway subarea and the Stage 1 Development Plan as amended; and 5) the Stage 2 Rezone includes design guidelines to create a shopping center with a main street character which is compatible with development in the neighborhood and the future development in Area G along Grafton Street. C. Pursuant to the California Environmental Quality Act, the City Council finds as follows: 1. Pursuant to the California Environmental Quality Act (CEQA), Section 15164 provides that an addendum to a previously certified Environmental Impact Report (EIR) may be prepared when the project requires a minor technical change to the EIR and there are no new significant Page 2 of4 3& -( 3 '6 environmental effects and no substantial mcrease in the severity of previously identified significant effects. Section 3. Map ofthe Property. Pursuant to Chapter 8.32, Title 8 of the City of Dublin Municipal Code, the Stage 2 Development Plan applies to the following property ("the Property"): 29.2i: net acres within Parcel 1 of Parcel Map 9003 for P A 05-030 (APN 985-0036-009) at the southwest corner of Dublin Boulevard and Northside Drive and bordered by Dublin Boulevard and Northside Drive in Area H of Dublin Ranch. Section 4. APPROVAL The regulations for the use, development, improvement, and maintenance of the Property are set forth in the amended Stage 1 Development Plan as attached in Exhibit A and the following Stage 2 Planned Development Zoning Development Plan as described below and attached as Exhibit B for the Property, which is hereby approved. Any amendments to the Stage 2 Planned Development Zoning Development Plan shall be in accordance with Section 8.32.080 and/or Chapter 8.120 of the Dublin Municipal Code or its successors. Stage 2 Development Plan for Grafton Station This is a Stage 2 Development Plan pursuant to Chapter 8.32 of the Dublin Municipal Code. This Development Plan meets all the requirements for a Stage 2 Development Plan and is adopted as a zoning amendment pursuant to section 8.32.030.B of the Dublin Zoning Ordinance. The Stage 2 Development Plan consists of the items and plans identified below, which are contained in the Stage 2 PD Rezone booklet received by the Planning Division on August 7, 2006 and the Stage 2 Development Plan attached as Exhibit B ("Stage 2 Development Plan"), which are incorporated herein by reference. The Stage 2 PD Rezone booklet is on file in the Dublin Planning Department under project file P A 05-030. The PD, Planned Development Zoning District and this Stage 2 Development Plan provide flexibility to encourage innovative development while ensuring that the goals, policies, and action programs of the General Plan, Eastern Dublin Specific Plan, and provisions of Chapter 8.32 of the Zoning Ordinance are satisfied. 1. Statement of Compatibility with Stage 1 Development Plan. The Grafton Station Stage 2 Development Plan is compatible with the Stage 1 Development Plan and amended Stage 1 Page 3 of 4 40(31 Development Plan for Dublin Ranch Planning Area H in that the Project IS a commercial development as planned for in the Stage 1 Development Plan. 2. Statement of Permitted Uses. Permitted, conditional, accessory, and temporary uses are allowed as set forth in the Stage 2 Development Plan, attached as Exhibit B, pages 1-6. 3. Stage 2 Site Plan. See Stage 2 PD Rezone booklet, attached as Exhibit C, received August 7, 2006. 4. Site Area. See Stage 2 Development Plan, page 6. 5. Development Regulations. See Stage 2 Development Plan pages 7-8 and Stage 2 PD Rezone booklet received August 7, 2006, pages 1-11 - I-B. 6. Architectural Standards. See Stage 2 PD Rezone booklet received August 7, 2006, pages II-I - II-38 and III-1- 1II-6. 7. Preliminary Landscaping Plans. See Stage 2 PD Rezone booklet received August 7, 2006, pages L-1 and Sections 1-13 and pages IV -1 - IV -13. 8. Applicable Requirements of Dublin Zoning Ordinance. Except as specifically provided in this Stage 2 Development Plan, the use, development, improvement, and maintenance of the Property shall be governed by the provisions of the Dublin Zoning Ordinance pursuant to section 8.32.060.C. Section 5. EFFECTIVE DATE AND POSTING OF ORDINANCE This Ordinance shall take effect and be in force thirty (30) days from and after the date of its passage. The City Clerk of the City of Dublin shall cause the Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. PASSED, APPROVED AND ADOPTED BY the City Council of the City of Dublin, on this 5th day of September 2006 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Janet Lockhart, Mayor ATTEST: Fawn Holman, City Clerk G:\P A#\2005\05-030 Lowe's\CC\CC Ordinance PD.DOC Page 4 of 4 ;:::: J v () I ORDINANCE NO. XX - 06 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUBLIN ************* APPROVING A DEVELOPMENT AGREEMENT FOR LOWE'S HOME IMPROVEMENT WAREHOUSE LOCATED AT THE SOUTHWEST CORNER OF DUBLIN BOULEVARD AND GRAFTON STREET AND BORDERED BY DUBLIN BOULEVARD AND NORTHSIDE DRIVE IN AREA H OF DUBLIN RANCH (APN 985-0036-009) P A 05-030 THE CITY COUNCIL OF THE CITY OF DUBLIN DOES HEREBY ORDAIN AS FOLLOWS: Section 1. RECITALS A. The proposed Lowe's Home Improvement Warehouse ("Project") is located within the boundaries of the Eastern Dublin Specific Plan ("Specific Plan") in an area, which is designated on the General Plan Land Use Element Map, and Eastern Dublin Specific Plan Land Use Map as General Commercial and General Commercial/Campus Office land uses. B. Pursuant to the California Environmental Quality Act (CEQA), Section 15164 provides that an addendum to a previously certified Environmental Impact Report (EIR) may be prepared when the proj ect requires a minor technical change to the EIR and there are no new significant environmental effects and no substantial increase in the severity of previously identified significant effects. C. A public hearing on the proposed Development Agreement was held before the Planning Commission on July 25,2006, for which public notice was given as provided by law. D. The Planning Commission has made its recommendation to the City Council for approval of the Development Agreement. F. A public hearing on the proposed Development Agreement was held before the City Council on August 15,2006 for which public notice was given as provided by law. G. The City Council has considered the recommendation of the Planning Commission who considered the item at its July 25, 2006 meeting, including the Planning Commission's reasons for its recommendation, the Agenda Statement, all comments received in writing and all testimony received at the public hearing. Section 2. FINDINGS AND DETERMINATIONS Therefore, on the basis of (a) the foregoing Recitals which are incorporated herein, (b) the City of Dublin's General Plan, (c) the Eastern Dublin Specific Plan, (e) the Eastern Dublin EIR, (d) the 1999 Mitigated Negative Declaration for Dublin Ranch Planning Area H, (e) the CEQA Addendum (f) the Agenda Statement, and on the basis of the specific conclusions set forth below, the City Council finds and determines that: Page 1 of3 ATTACHMENT 2 (Po! ~ 1. The Project is consistent with the objectives, policies, general land uses and programs specified and contained in the City's General Plan, as amended by the Eastern Dublin General Plan Amendment, and in the Specific Plan in that (a) the General Plan and Specific Plan land use designation for the site are General Commercial and General Commercial/Campus Office Land Uses and the proposed project is a project consistent with those land uses, (b) the project is consistent with the fiscal policies of the General Plan and Specific Plan with respect to provision of infrastructure and public services, ( c) the project is consistent with the Stage 1 Planned Development Zoning adopted for Dublin Ranch Planning Area H adopted by the City Council and the Development Plan as amended by the City Council, and (d) the Lowe's HIW, Inc. Development Agreement includes provisions relating to vesting of development rights, and similar provisions set forth in the Specific Plan. 2. The Lowe's HIW, Inc. Development Agreement is compatible with the uses authorized in, and the regulations prescribed for, the land use districts in which the real property is located in that the project approvals include a Stage 1 Development Plan Amendment, Stage 2 Planned Development Rezoning, and Site Development Review. 3. The Lowe's HIW, Inc. Development Agreement is in conformity with public convenience, general welfare and good land use policies in that the project will implement land use guidelines set forth in the Eastern Dublin Specific Plan and the General Plan which have planned for general commercial and campus office uses at this location. 4. The Lowe's HIW, Inc. Development Agreement will not be detrimental to the health, safety and general welfare in that the project will proceed in accordance with all the programs and policies of the Eastern Dublin Specific Plan. 5. The Lowe's HIW, Inc. Development Agreement will not adversely affect the orderly development of property or the preservation of property values in that the project will be consistent with the General Plan and with the Specific Plan. Section 3. APPROVAL The City Council hereby approves the Development Agreement (Exhibit A) and authorizes the Mayor to execute it. Section 4. RECORDATION Within ten (10) days after the Development Agreement is fully executed by all parties, the City Clerk shall submit the Agreement to the County Recorder for recordation. Section 5. EFFECTIVE DATE AND POSTING OF ORDINANCE This Ordinance shall take effect and be in force thirty (30) days from and after the date of its passage. The City Clerk of the City of Dublin shall cause the Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. Page 2 of3 701 'Z PASSED, APPROVED AND ADOPTED BY the City Council of the City of Dublin, on this 5th day of September 2006 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk G:\P A#\2005\05-030 Lowe's\CC\CC Ordinance DA.DOC Page 3 of3 1)1' 7 RECORDING REQUESTED BY: CITY OF DUBLIN When Recorded Mail To: City Clerk City of Dublin 100 Civic Plaza Dublin, CA 94568 Fee Waived per GC 27383 Space above this line for Recorder's use DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBLIN AND LOWE'S HIW, INC. FOR THE LOWE'S HOME IMPROVEMENT STORE PROJECT EXHIBIT A 9tl!39! THIS DEVELOPMENT AGREEMENT (this "Agreement" or this "Development Agreement") is made and entered in the City of Dublin on this _ day of 2006, by and between the CITY OF DUBLIN, a Municipal Corporation (hereafter "CITY") and LOWE'S HIW, Inc., a Washington corporation (hereafter "DEVELOPER") pursuant to the authority of ~~ 65864 et seq. of the California Government Code and Dublin Municipal Code, Chapter 8.56. CITY and DEVELOPER are, from time-to-time, individually referred to in this Agreement as a "Party," and are collectively referred to as "Parties. " RECITALS A. California Government Code ~~65864 et seq. ("Development Agreement Statute") and Chapter 8.56 of the Dublin Municipal Code (hereafter "Chapter 8.56") authorize the CITY to enter into a Development Agreement for the development of real property with any person having a legal or equitable interest in such property in order to establish certain development rights in such property. B. DEVELOPER intends to purchase, desires to develop, and holds an equitable interest in certain real property consisting of approximately 12.24 acres of land, located in the City of Dublin, County of Alameda, State of California, which is more particularly described in Exhibit A attached hereto and incorporated herein by this reference, and which real property is hereafter called the "Property." C. DEVELOPER acquired, or will acquire, its interest in the Property from Chang Su-O Lin, H. Yao Lin, and H. Lien Lin (the "Lins") indirectly though S and V LLC, a Delaware limited liability company, doing business in California as Stanforth Holding Company, LLC ("Tong") pursuant to separate purchase and sale agreements, which allocated rights and obligations as between the Lins and Tong and then Tong and DEVELOPER. D. The City Council adopted the Eastern Dublin Specific Plan by Resolution No. 53-93 which Plan is applicable to the Property. The Eastern Dublin Specific Plan requires DEVELOPER to enter into a development agreement as a condition of the development of the Property. E. The Property is within Area H, which is subject to a Master Development Agreement between the City of Dublin and the Lins dated June 29, 1999 and recorded in Official Records Alameda County on July 8, 1999 as Instrument No. 99251790, and a Supplemental Development Agreement between the City of Dublin and the Lins dated April 18, 2000 and recorded in Official Records of Alameda County on November 13, 2000 as Instrument No. 200335772. F. DEVELOPER proposes the development of the Property with a home improvement retail store of approXimately 138,135 square feet of ground floor retail and an adjacent garden center of approximately 31,659 square feet (the "Project"). Development Agreement Between City of Dublin and Lowe's HIW, Inc. For the Lowe's Home Improvement Store Project Page 1 of 15 /Oof3<Z G. DEVELOPER has applied for, and CITY has approved or is processing, various land use approvals in connection with the development of the Project, including, without limitation, a Stage 1 Development Plan for Area H (Ord. No. ); Stage 1 Development Plan Amendment (Ord. No. ); Stage 2 Planned Development Rezone (Ord. No. ); Site Development Review (Planning Commission Resolution No. 06-21); and a vesting tentative parcel map (Planning Commission Resolution No. ). All such approvals collectively, together with any approvals or permits now or hereafter issued with respect to the Project are referred to as the "Project Approvals." H. Development of the Property by DEVELOPER may be subject to certain future discretionary approvals, which, if granted, shall automatically become part of the Project Approvals as each such approval becomes effective. I- Project. CITY desires the timely, efficient, orderly and proper development of the J. The City Council has found that, among other things, this Development Agreement is consistent with its General Plan and the Eastern Dublin Specific Plan and has been reviewed and evaluated in accordance with the Development Agreement Statute and Chapter 8.56. K. CITY and DEVELOPER have reached agreement and desire to express herein a Development Agreement that will facilitate development of the Project subject to conditions set forth herein. L. Pursuant to the California Environmental Quality Act (CEQA) the City Council adopted Resolution No. _ finding that the Project is within the scope of the Final Environmental Impact Report for the Eastern Dublin General Plan Amendment and Specific Plan (SCH 91103064) which was certified by the Council by Resolution No. 51-93 and the Addenda dated May 4, 1993 and August 22, 1994 (the "EI R"). M. Pursuant to CEQA the City Council adopted Resolution No. 34-00 approving a Mitigated Negative Declaration for Area H (SCH #99112040). N. Pursuant to CEQA the City Council adopted Resolution No._ approving an Addendum to the EIR, dated June _, 2006, for Area H. O. On ,2006, the City Council of the City of Dublin adopted Ordinance No. approving this Development Agreement (lithe Approving Ordinance"). The Approving Ordinance will take effect on , 2006 ("the Approval Date"). NOW, THEREFORE, with reference to the foregoing recitals and in consideration of the mutual promises, obligations and covenants herein contained, CITY and DEVELOPER agree as follows: Development Agreement Between City of Dublin and Lowe's HIW, Inc. For the Lowe's Home Improvement Store Project Page 2 of 15 /lo?3'i' AGREEMENT 1. Description of Property. The Property, which is the subject of this Development Agreement, is described in Exhibit A attached hereto. 2. Interest of Developer. The DEVELOPER has a legal or equitable interest in the Property. 3. Relationship of CITY and DEVELOPER. It is understood that this Agreement is a contract that has been negotiated and voluntarily entered into by CITY and DEVELOPER and that DEVELOPER is not an agent of CITY. CITY and DEVELOPER hereby renounce the existence of any form of joint venture or partnership between them, and agree that nothing contained herein or in any document executed in connection herewith shall be construed as making CITY and DEVELOPER joint venturers or partners. 4. Effective Date and Term. 4.1 Effective Date. The effective date of this Agreement shall be the date ("the Effective Date") upon which this Agreement is signed by CITY. 4.2 Term. The "Term" of this Development Agreement shall commence on the Approval Date and extend five (5) years thereafter, unless said Term is otherwise terminated or modified by circumstances set forth in this Agreement. 5. Use of the Property. 5.1 Riaht to Develop. DEVELOPER shall have the vested right to develop the Project on the Property in accordance with the terms and conditions of this Agreement, the Project Approvals (as and when issued), and any amendments to any of them as shall, from time to time, be approved pursuant to this Agreement. 5.2 Permitted Uses. The permitted uses of the Property, the density and intensity of use, the maximum height, bulk and size of proposed buildings, provisions for reservation or dedication of land for public purposes and location and maintenance of on-site and off-site improvements, location of public utilities (operated by CITY) and other terms and conditions of development applicable to the Property, shall be those set forth in this Agreement, the Project Approvals and any amendments to this Agreement or the Project Approvals. 5.3 Additional Conditions. Provisions for the following Development Agreement Between City of Dublin and Lowe's HIW, Inc. For the Lowe's Home Improvement Store Project Page 3 of 15 / '7.' 2. ~. r;<..Of__,i( ("Additional Conditions") are set forth in Exhibit B attached hereto and incorporated herein by reference. 5.3.1 Subsequent Discretionary Approvals. Conditions, terms, restrictions, and requirements for subsequent discretionary actions. (These conditions do not affect DEVELOPER's responsibility to obtain all other land use approvals required by the ordinances of CITY and any permits required by regulatory agencies.) See Exhibit B. 5.3.2 Mitiaation Conditions. Additional or modified conditions agreed upon by the Parties in order to eliminate or mitigate adverse environmental impacts of the Project or otherwise relating to development of the Project. See Exhibit B 5.3.3 Phasinq, Timinq. Provisions that the Project be constructed in specified phases, that construction shall commence within a specified time, and that the Project or any phase thereof be completed within a specified time. See Exhibit B 5.3.4 Financina Plan. Financial plans which identify necessary capital improvements such as streets and utilities and sources of funding. See Exhibit B 5.3.5 Fees, Dedications. Terms relating to payment of fees or dedication of property. See Exhibit B 5.3.6 Reimbursement. Terms relating to subsequent reimbursement over time for financing of necessary public facilities. See Exhibit B 5.3.7 Miscellaneous. Miscellaneous terms. See Exhibit B Development Agreement Between City of Dublin and Lowe's HIW, Inc. For the Lowe's Home Improvement Store Project Page 4 of 15 /3 ,. -. :- 0;-:56' 6. Applicable Rules. Reaulations and Official Policies. 6.1 Rules re Permitted Uses. For the term of this Agreement, CITY's ordinances, resolutions, rules, regulations and official policies governing the permitted uses of the Property, governing density and intensity of use of the Property and the maximum height, bulk and size of proposed buildings shall be those in force and effect on the Approval Date. 6.2 Rules re Desian and Construction. Unless otherwise expressly provided in Paragraph 5 of this Agreement or in Chapter 7.28 of the Dublin Municipal Code, the ordinances, resolutions, rules, regulations and official policies governing design, improvement and construction standards and specifications applicable to Project construction (but not use) shall be those in force and effect at the time DEVELOPER submits its application for the relevant building, grading, or other construction permits to CITY. In the event of a conflict between such ordinances, resolutions, rules, regulations and official policies and the Project Approvals, the Project Approvals shall prevail. For construction of public infrastructure, the ordinances, resolutions, rules, regulations and official policies governing design, improvement and construction standards and specifications applicable to Project shall be those in force and effect at the time of execution of an improvement agreement between CITY and DEVELOPER pursuant to Chapter 9.16 of the Dublin Municipal Code. 6.3 Buildina Standards Codes Applicable. Unless expressly provided in Paragraph 5 of this Agreement or in Chapter 7.28 of the Dublin Municipal Code, the Project shall be constructed in accordance with the provisions of the Building, Mechanical, Plumbing, Electrical and Fire Codes and Title 24 of the California Code of Regulations, relating to Building Standards, in effect at the time DEVELOPER submits its application for the relevant building, grading, or other construction permits for the Project to CITY. 7. Subseauentlv Enacted Rules and Reaulations. 7.1 New Rules and Reaulations. During the Term of this Agreement, CITY may apply new or modified ordinances, resolutions, rules, regulations and official policies of CITY to the Property that were not in force and effect on the Approval Date and which are not in conflict with those applicable to the Property as set forth in this Agreement and the Project Approvals if: (a) the application of such new or modified ordinances, resolutions, rules, regulations or official policies would not prevent, impose a substantial financial burden on, or materially delay development of the Property, as otherwise contemplated by the Project Approvals, and (b) such ordinances, resolutions, rules, regulations or official policies have general (City-wide) applicability. 7.2 Approval of Application. Nothing in this Agreement shall Development Agreement Between City of Dublin and Lowe's HIW, Inc. For the Lowe's Home Improvement Store Project Page 5 of 15 ILf()/37 prevent CITY from denying or conditionally approving any subsequent land use permit or authorization for the Project on the basis of such new or modified ordinances, resolutions, rules, regulations and policies, except that such subsequent actions shall be subject to any conditions. terms, restrictions, and requirements expressly set forth herein. 7.3 Moratorium Not Applicable. Notwithstanding anything to the contrary contained herein. in the event an ordinance. resolution or other measure is enacted, whether by action of CITY, by initiative, referendum. or otherwise. that imposes a building moratorium which affects the Project on all or any part of the Property, CITY agrees that such ordinance, resolution or other measure shall not apply to the Project, the Property, this Agreement or the Project Approvals unless the building moratorium is imposed as part of a declaration of a local emergency or state of emergency as defined in Government Code 98558. 7.4 Riehts Under Vestine Tentative Map. Notwithstanding anything to the contrary contained herein. this Agreement shall not supercede any rights DEVELOPER may obtain pursuant to CITY's approval of the vesting tentative map for the Project. 8. Subsequentlv Enacted or Revised Fees, Assessments and Taxes. 8.1 Fees. Exactions. Dedications. CITY and DEVELOPER agree that the fees payable and exactions required in connection with the development of the Project Approvals for purposes of mitigating environmental and other impacts of the Project. providing infrastructure for the Project and complying with the Specific Plan shall be those set forth in the Project Approvals and in this Agreement (including Exhibit B). CITY shall not impose or require payment of any other fees. dedications of land, or construction of any public improvement or facilities, shall not increase or accelerate existing fees, dedications of land or construction of public improvements, in connection with any subsequent discretionary approval for the Property, except as set forth in the Project Approvals and this Agreement (including Exhibit B, subparagraph 5.3.5). 8.2 Revised Application Fees. Any existing application, processing and inspection fees that are revised during the Term of this Agreement shall apply to the Project provided that (1) such fees have general applicability; (2) the application of such fees to the Property is prospective; and (3) the application of such fees would not prevent development in accordance with this Agreement. 8.3 New Taxes. Any subsequently enacted City-wide taxes shall apply to the Project provided that: (1) the application of such taxes to the Property is prospective; and (2) the application of such taxes would not prevent development in accordance with this Agreement. 8.4 Assessments. Nothing herein shall be construed to relieve the Property from assessments levied against it by CITY pursuant to any statutory Development Agreement Between City of Dublin and Lowe's HIW, Inc. For the Lowe's Home Improvement Store Project Page 6 of 15 procedure for the assessment of property to pay for infrastructure and/or services that benefit the Property. 8.5 Vote on Future Assessments and Fees. In the event that any assessment, fee or charge that is applicable to the Property is subject to Article XIIID of the California Constitution and DEVELOPER does not return its ballot, DEVELOPER agrees, on behalf of itself and its successors, that CITY may count DEVELOPER's ballot as affirmatively voting in favor of such assessment, fee or charge. 9. Amendment or Cancellation. 9.1 Modification Because of Conflict with State or Federal Laws. In the event that state or federal laws or regulations enacted after the Effective Date of this Agreement prevent or preclude compliance with one or more provisions of this Agreement or require changes in plans, maps or permits approved by CITY, the Parties shall meet and confer in good faith in a reasonable attempt to modify this Agreement to comply with such federal or state law or regulation. Any such amendment or suspension of the Agreement shall be approved by the City Council of CITY in accordance with Chapter 8.56. 9.2 Amendment bv Mutual Consent. This Agreement may be amended in writing from time to time by mutual consent of the Parties hereto and in accordance with the procedures of California law and Chapter 8.56. 9.3 Insubstantial Amendments. Notwithstanding the provisions of the preceding Paragraph 9.2, any amendments to this Agreement which do not relate to (a) the term of the Agreement as provided in Paragraph 4.2; (b) the permitted uses of the Property as provided in Paragraph 5.2; (c) provisions for "significant" reservation or dedication of land as provided in Exhibit B; (d) conditions, terms, restrictions or requirements for subsequent discretionary actions; (e) the density or intensity of use of the Project; (f) the maximum height or size of proposed buildings; or (g) monetary contributions by DEVELOPER as provided in this Agreement, shall not, except to the extent otherwise required by law, require notice or public hearing before either the Planning Commission of CITY or the City Council of CITY before the parties may execute an amendment hereto. CITY's Public Works Director shall determine whether a reservation or dedication is "significant". 9.4 Cancellation bv Mutual Consent. Except as otherwise permitted herein, this Agreement may be canceled in whole or in part only by the mutual consent of the Parties or their successors in interest, in accordance with the provisions of Chapter 8.56. Any fees paid pursuant to Paragraph 5.3 and Exhibit B of this Agreement prior to the date of cancellation shall be retained by CITY. Development Agreement Between City of Dublin and Lowe's HIW, Inc. For the Lowe's Home Improvement Store Project Page 7 of 15 l!)tJf; 10. Term of Proiect Approvals. The Term of any Project Approval shaH be extended only if so provided in Exhibit B. 11. Annual Review. 11.1 Review Date. The annual review date for this Agreement shall be between July 15 and August 15, 2007 and each July 15 to August 15 thereafter during the Term. 11.2 Initiation of Review. CITY's Community Development Director shall initiate the annual review, as required under Section 8.56.140 of Chapter 8.56, by giving to DEVELOPER thirty (30) days' written notice that CITY intends to undertake such review. DEVELOPER shall provide evidence to the Community Development Director prior to the hearing on the annual review, as and when reasonably determined necessary by the Community Development Director, to demonstrate good faith compliance with the provisions of this Development Agreement. The burden of proof by substantial evidence of compliance is upon DEVELOPER. 11.3 Staff Reports. To the extent practical, CITY shall deposit in the mail and fax to DEVELOPER a copy of all staff reports, and related exhibits concerning contract performance at least five (5) days prior to any annual review. 11.4 Costs. Costs reasonably incurred by CITY in connection with the annual review shall be paid by DEVELOPER in accordance with the City's schedule of fees in effect at the time of review. 12. Default. 12.1 Other Remedies Available. Upon the occurrence of an event of default, the Parties may pursue all other remedies at law or in equity that are not otherwise provided for in this Agreement or in CITY's regulations governing development agreements, expressly including the remedy of specific performance of this Agreement. 12.2 Notice and Cure. Upon the occurrence of an event of default by any Party, the nondefaulting Party shall serve written notice of such default upon the defaulting Party. If the default is not cured by the defaulting Party within thirty (30) days after service of such notice of default, the nondefaulting Party may then commence any legal or equitable action to enforce its rights under this Agreement; provided, however, that if the default cannot be cured within such thirty (30) day period, the nondefaulting Party shall refrain from any such legal or equitable action so long as the defaulting Party begins to cure such default within such thirty (30) day period and diligently pursues such cure to completion. Failure to give notice shall not constitute a waiver of any default. Development Agreement Between City of Dublin and Lowe's HIW, Inc. For the Lowe's Home Improvement Store Project Page 8 of 15 I J r -, ("/ {()ot:;:,o /70/ 12.3 No Damaaes Aaainst CITY. In no event shall damages be awarded against CITY upon an event of default or upon termination of this Agreement. 13. Estoppel Certificate. Any Party may, at any time, and from time to time, request written notice from the other Party requesting such Party to certify in writing that, (a) this Agreement is in full force and effect and a binding obligation of the Parties, (b) this Agreement has not been amended or modified, either orally or in writing, or if so amended, identifying the amendments, and (c) to the knowledge of the certifying Party the requesting Party is not in default in the performance of its obligations under this Agreement, or if in default, to describe therein the nature and amount of any such defaults. A Party receiving a request hereunder shall execute and return such certificate within thirty (30) days following the receipt thereof, or such longer period as may reasonably be agreed to by the Parties. City Manager of CITY shall be authorized to execute any certificate requested by DEVELOPER. Should the Party receiving the request not execute and return such certificate within the applicable period, such failure shall not be deemed to be a default under this Agreement; provided, however, such Party shall be deemed to have certified that the statements in clauses (a) through (c) of this section are true, and any Party may rely on such deemed certification. 14. Mortaaaee Protection; Certain Riahts of Cure. 14.1 Mortaaaee Protection. This Agreement shall be superior and senior to any lien placed upon the Property, or any portion thereof after the date of recording this Agreement, including the lien for any deed of trust or mortgage ("Mortgage"). Notwithstanding the foregoing, no breach hereof shall defeat, render invalid, diminish or impair the lien of any Mortgage made in good faith and for value, but all the terms and conditions contained in this Agreement shall be binding upon and effective against any person or entity, including any deed of trust beneficiary or mortgagee ("Mortgagee") who acquires title to the Property, or any portion thereof, by foreclosure, trustee's sale, deed in lieu of foreclosure, or otherwise. 14.2 Mortaaaee Not Obliaated. Notwithstanding the provisions of Paragraph 14.1 above, no Mortgagee shall have any obligation or duty under this Agreement, before or after foreclosure or a deed in lieu of foreclosure, to construct or complete the construction of improvements, or to guarantee such construction of improvements, or to guarantee such construction or completion, or to pay, perform or provide any fee, dedication, improvements or other exaction or imposition; provided, however, that a Mortgagee shall not be entitled to devote the Property to any uses or to construct any improvements thereon other than those uses or improvements provided for or authorized by the Project Approvals or by this Agreement. 14.3 Notice of Default to Mortaaaee and Extension of Riaht to Cure. If CITY receives notice from a Mortgagee requesting a copy of any notice of Development Agreement Between City of Dublin and Lowe's HIW, Inc. For the Lowe's Home Improvement Store Project Page 9 of 15 default given DEVELOPER hereunder and specifying the address for service thereof, then CITY shall deliver to such Mortgagee, concurrently with service thereon to DEVELOPER, any notice given to DEVELOPER with respect to any claim by CITY that DEVELOPER has committed an event of default. Each Mortgagee shall have the right during the same period available to DEVELOPER to cure or remedy, or to commence to cure or remedy, the event of default claimed set forth in the CITY's notice. CITY, through its City Manager, may extend the thirty-day cure period provided in Paragraph 12.2 for not more than an additional sixty (60) days upon request of DEVELOPER or a Mortgagee. 15. Severabilitv. The unenforceability, invalidity or illegality of any provisions, covenant, condition or term of this Agreement shall not render the other provisions unenforceable, invalid or illegal. 16. Attornevs' Fees and Costs. If CITY or DEVELOPER initiates any action at law or in equity to enforce or interpret the terms and conditions of this Agreement, the prevailing Party shall be entitled to recover reasonable attorneys' fees and costs in addition to any other relief to which it may otherwise be entitled. If any person or entity not a party to this Agreement initiates an action at law or in equity to challenge the validity of any provision of this Agreement or the Project Approvals, the Parties shall cooperate and appear in defending such action. DEVELOPER shall bear its own costs of defense as a real party in interest in any such action, and DEVELOPER shall reimburse CITY for all reasonable court costs and attorneys' fees expended by CITY in defense of any such action or other proceeding. 17. Transfers and Assianments. 17.1 DEVELOPER's Riaht to Assian. All of DEVELOPER'S rights, interests and obligations hereunder may be transferred, sold or assigned in conjunction with the transfer, sale, or assignment of the Property subject hereto, or any portion thereof, at any time during the Term of this Agreement, provided that no transfer, sale or assignment of DEVELOPER's rights, interests and obligations hereunder shall occur without the prior written notice to CITY and approval by the City Manager of CITY, which approval shall not be unreasonably withheld or delayed. The City Manager shall consider and decide the matter within ten (10) working days after DEVELOPER's notice is given to CITY and receipt by City Manager of all necessary documents, certifications and other information required by City Manager to decide the matter. In considering the request, the City Manager shall base the decision upon the proposed assignee's reputation, experience, financial resources and access to credit and capability to successfully carry out the development of the Property to completion. The City Manager's approval shall be for the purposes of: (a) providing notice to CITY; (b) assuring that all obligations of DEVELOPER are fully allocated as between Development Agreement Between City of Dublin and Lowe's HIW, Inc. For the Lowe's Home Improvement Store Project Page 10 of 15 I~or:!.? 1?()f3Y' DEVELOPER and the proposed purchaser, transferee or assignee; and (c) assuring CITY that the proposed purchaser, transferee or assignee is capable of performing DEVELOPER's obligations hereunder not withheld by DEVELOPER pursuant to Paragraph 17.3. Notwithstanding the foregoing, provided notice is given as specified in Paragraph 23, no CITY approval shall be required for any transfer, sale, or assignment of this Agreement to: (1) any entity which either (i) is an affiliate or subsidiary of DEVELOPER or (ii) results from the merger of DEVELOPER or its parent or is the purchaser of all, or substantially all, of the assets of DEVELOPER or its parent; (2) any Mortgagee; or (3) any transferee of a Mortgagee. 17.2 Release Upon Transfer. Upon the transfer, sale, or assignment of all of DEVELOPER's rights, interests and obligations hereunder pursuant to Paragraph 17.1 of this Agreement, DEVELOPER shall be released from the obligations under this Agreement, with respect to the Property transferred, sold, or assigned, arising subsequent to the date of City Manager approval of such transfer, sale, or assignment; provided, however, that if any transferee, purchaser, or assignee approved by the City Manager expressly assumes all of the rights, interests and obligations of DEVELOPER under this Agreement, DEVELOPER shall be released with respect to all such rights, interests and assumed obligations. In any event, the transferee, purchaser, or assignee shall be subject to all the provisions hereof and shall provide all necessary documents, certifications and other necessary information prior to City Manager approval. 17.3 Developer's Riaht to Retain Specified Riohts or Obliaations. Notwithstanding Paragraphs 17.1 and 17.2 and Paragraph 18, DEVELOPER may withhold from a sale, transfer or assignment of this Agreement certain rights, interests and/or obligations which DEVELOPER shall retain, provided that DEVELOPER specifies such rights, interests and/or obligations in a written document to be appended to this Agreement and recorded with the Alameda County Recorder prior to the sale, transfer or assignment of the Property. DEVELOPER's purchaser, transferee or assignee shall then have no interest or obligations for such rights, interests and obligations and this Agreement shall remain applicable to DEVELOPER with respect to such retained rights, interests and/or obligations. 18. Aqreement Runs with the Land. All of the provisions, rights, terms, covenants, and obligations contained in this Agreement shall be binding upon the Parties and their respective heirs, successors and assignees, representatives, lessees, and all other persons acquiring the Property, or any portion thereof, or any interest therein, whether by operation of law or in any manner whatsoever. All of the provisions of this Agreement shall be enforceable as equitable servitude and shall constitute covenants running with the land pursuant to applicable laws, including, but not limited to, Section 1468 of the Civil Code of the State of California. Each covenant to do, or refrain from doing, some act on the Property hereunder, or with respect to any owned property, (a) is for the benefit of such properties and is a burden upon such properties, (b) runs with such Development Agreement Between City of Dublin and Lowe's HIW, Inc. For the Lowe's Home Improvement Store Project Page 11 of 15 1}}{Jf3? properties, and (c) is binding upon each party and each successive owner during its ownership of such properties or any portion thereof, and shall be a benefit to and a burden upon each party and its property hereunder and each other person succeeding to an interest in such properties. 19. Bankruptcy. The obligations of this Agreement shall not be dischargeable in bankruptcy. 20. Indemnification. DEVELOPER agrees to indemnify, defend and hold harmless CITY, and its elected and appointed councils, boards, commissions, officers, agents, employees, and representatives from any and all claims, costs (including legal fees and costs) and liability for any personal injury or property damage which may arise directly or indirectly as a result of any actions or inactions by DEVELOPER, or any actions or inactions of DEVELOPER's contractors, subcontractors, agents, or employees in connection with the construction, improvement, operation, or maintenance of the Project, provided that DEVELOPER shall have no indemnification obligation with respect to negligence or wrongful conduct of CITY, its contractors, subcontractors, agents or employees or with respect to the maintenance, use or condition of any improvement after the time it has been dedicated to and accepted by the CITY or another public entity (except as provided in an improvement agreement or maintenance bond). If CITY is named as a party to any legal action, CITY will cooperate with DEVELOPER, will appear in such action and will not unreasonably withhold approval of a settlement otherwise acceptable to DEVELOPER. 21. Insurance. 21.1 Public Liability and PropertY Damaoe Insurance. At all times that DEVELOPER is constructing any improvements that will become publiC improvements, DEVELOPER shall maintain in effect a poliCY of comprehensive general liability insurance with a per-occurrence combined single limit of not less than one million dollars ($1,000,000.00) and a deductible of not more than ten thousand dollars ($10,000.00) per claim. The policy so maintained by DEVELOPER shall name the CITY as an additional insured and shall include either a severability of interest clause or cross.liability endorsement. 21,2 Workers Compensation Insurance. At all times that DEVELOPER is constructing any improvements that will become public improvements, DEVELOPER shall maintain Worker's Compensation insurance for all persons employed by DEVELOPER for work at the Project site. DEVELOPER shall require each contractor and subcontractor similarly to provide Worker's Compensation insurance for its respective employees. DEVELOPER agrees to indemnify the City for any damage resulting from DEVELOPER's failure to maintain any such insurance. Development Agreement Between City of Dublin and Lowe's HIW, Inc. For the Lowe's Home Improvement Store Project Page 12 of 15 J.{oI3'Z 21.3 Evidence of Insurance, Prior to commencement of construction of any improvements which will become public improvements, DEVELOPER shall furnish CITY satisfactory evidence of the insurance required in Paragraphs 21.1 and 21 .2 and evidence that the carrier is required to give CITY at least fifteen days prior written notice of the cancellation or reduction in coverage of a policy. The insurance shall extend to CITY, its elective and appointive boards, commissions, officers, agents, employees and representatives and to DEVELOPER performing work on the Project. 21.4 Self-Insurance. Notwithstanding any other provision of this Agreement, so long as DEVELOPER and its parent corporation have a combined net worth of at least Two Hundred Fifty Million Dollars ($250,000,000.00), the insurance that DEVELOPER is obligated hereby to maintain may include such deductible or self- insured amount not to exceed five million dollars ($5,000,000.00). To the extent that DEVELOPER elects to so self-insure, its obligation to CITY with respect to such insurance obligations, including the obligation to defend and indemnify, shall be the same as if DEVELOPER is a third party insurer. 22. Sewer and Water. DEVELOPER acknowledges that it must obtain water and sewer permits from the Dublin San Ramon Services District ("DSRSD") which is another public agency not within the control of CITY. 23. Notices. All notices required or provided for under this Agreement shall be in writing. Notices required to be given to CITY shall be addressed as follows: City Manager City of Dublin 100 Civic Plaza Dublin, CA 94568 Fax: (925) 833-6651 Notice required to be given to DEVELOPER shall be addressed as follows: Lowe's HIW, Inc., 1530 Faraday Avenue, #140 Carlsbad, CA 92008 Attn: Bob Midkiff/Thomas E. Maddox, Esq. Fax: (760) 602-8421 A Party may change address by giving notice in writing to the other Party and thereafter Development Agreement Between City of Dublin and Lowe's HIW, Inc. For the Lowe's Home Improvement Store Project Page 13 of 15 IJ() / 17- (7' (I 1 ~.. all notices to such Party shall be addressed and transmitted to the new address. Notices shall be deemed given and received upon personal delivery, or if mailed, upon the expiration of 48 hours after being deposited in the United States Mail. Notices may also be given by overnight courier, which shall be deemed given the following day, or by facsimile transmission, which shall be deemed given upon verification of receipt. 24. Recitals. The foregoing Recitals are true and correct and are made a part hereof. 25. Aoreement is Entire Understandino. This Agreement constitutes the entire understanding and agreement of the Parties. 26. Exhibits. The following documents are referred to in this Agreement and are attached hereto and incorporated herein as though set forth in full: Exhibit A Legal Description of Property Exhibit B Additional Conditions 27. Counterparts. This Agreement is executed in two (2) duplicate originals, each of which is deemed to be an original. 28. Recordation. CITY shall record a copy of this Agreement within ten days following execution by all parties. Failure of CITY to comply with this Paragraph shall not affect the rights and obligations of the Parties under this Agreement. 29. Leaal Authoritv. Each individual executing this Agreement on behalf of Developer hereby represents and warrants that has full power and authority under the entity's governing documents to execute and deliver this Agreement in the name of and on behalf of the company and to cause the entity to perform its obligations under this Agreement. 30. DEVELOPER/Tona. CITY acknowledges that certain of the obligations imposed on DEVELOPER and the Project hereby shall be performed by Development Agreement Between City of Dublin and Lowe's HIW, Inc. For the Lowe's Home Improvement Store Project Page 14 of 15 ~3 0 f Z Tong (or a Tong affiliate) pursuant to certain agreements made between DEVELOPER and Tong (or a Tong affiliate) and CITY agrees that such performance by Tong (or a Tong affiliate) shall not be a default under this Agreement; provided, however, as between CITY and DEVELOPER, DEVELOPER remains fully liable for the performance of each and every obligation imposed on DEVELOPER and the Project hereby. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the date and year first above written. CITY OF DUBLIN: By: Janet Lockhart, Mayor Date: Attest: By: Fawn Holman, City Clerk Date: Approved as to Form: Elizabeth H. Silver, City Attorney Lowe's HIW, Inc., a Washington Corporation ~,(lj y/f' By: ,\..." C.hc.......l L. ~ k~ \ eJ Its: \J \ u ~"f' ~.\ ~..c.,',^+' Approved as to Form: 2~v~. d~ By:i \n.."'0^ It"~ /1.;, ,~J J,.oX Its: A.cr tJ ! v", {- (-)..f 0...V.\ '^ / ( "_ ",.l.t I Development Agreement Between City of Dublin and Lowe's HIW, Inc. For the Lowe's Home Improvement Store Project Page 15 of 15 ~'-/ 0 f; Exhibit A Property Description C;, i'?~ ~)_ v" () v Exhibit B Additional Conditions The following Additional Conditions are hereby imposed pursuant to Paragraph 5.3 above. Subparaaraph 5.3.1 -- Subseauent Discretionarv Approvals None. Subparaaraph 5.3.2 -- Mitiaation Conditions Subsection a. Infrastructure SeauencinQ Proaram The Infrastructure Sequencing Program for the Project is set forth below, (i) Roads: The project-specific roadway improvements (and offers of dedication) identified in Planning Commission Resolution No. 06-_ approving a vesting tentative map (the "VTM Resolution") and Planning Commission Resolution No. 06-21 approving Site Development Review (the "SDR Resolution") shall be completed by DEVELOPER to the satisfaction and requirements of the Public Works Director at the times and in the manner specified in the VTM Resolution and SDR Resolution unless otherwise provided below. . (ii) Sewer All sanitary sewer improvements to serve the project site (or any recorded phase of the Project) shall be completed in accordance with DSRSD requirements. (iii) Water An all-weather roadway and an approved hydrant and water supply system shall be available and in service at the site in accordance with the SDR conditions of approval to the satisfaction and requirements of CITY's fire department. All potable water system components to serve the project site (or any recorded phase of the Project) shall be completed in accordance with DSRSD requirements. Recycled water lines shall be installed in accordance with the SDR conditions of approval. Development Agreement Between City of Dublin and Lowe's HIW, Inc. for the Lowe's Home Improvement Store Project - EXHIBIT B Page 1 of 7 f:' lJ ::J (iv) Storm Drainaae Prior to issuance of the first Certificate of Occupancy for any building which is part of the Project, the storm drainage systems off site, as well as on-site drainage systems to the areas to be occupied, shall be improved to the satisfaction and requirements of the Dublin Public Works Department applying CITY's and Zone 7 (Alameda County Flood Control and Water Conservation District, Zone 7) standards and policies which are applicable. Pursuant to Alameda County's National Pollution Discharges Elimination Permit (NPDES) No. CAS0029831 with the California Regional Water Quality Control Board, all grading, construction, and development activities within the City of Dublin must comply with the provisions of the Clean Water Act. Proper erosion control measures must be installed at development sites within the City during construction, and all activities shall adhere to Best Management Practices. (v) Other Utilities fe.a. aas, electricitv. cable televisions, telephone) Construction of other utilities shall be complete by phase prior to issuance of the first Certificate of Occupancy for any building within that specific phase of development. Subsection b. Miscellaneous (i) Completion Mav be Deferred. Notwithstanding the foregoing, CITY's Public Works Director may, in his or her sole discretion and upon receipt of documentation in a form satisfactory to the Public Works Director that assures completion, allow DEVELOPER to defer completion of discrete portions of any of the public improvements required for the Project until after issuance of Certificate of Occupancy for the first building for the Project if the Public Works Director determines that to do so would not jeopardize the public health, safety or welfare. Suboaraaraoh 5.3.3 -- Phasina, Timina This Agreement contains no requirements that DEVELOPER must initiate or complete development of the Project within any period of time set by CITY. It is the intention of this provision that DEVELOPER be able to develop the Property in accordance with its own time schedules and the Project Approvals. Suboaraaraph 5.3.4 ~~ Financina Plan DEVELOPER will install all improvements necessary for the Project at its own cost (subject to credits for any improvements that qualify for credits as provided in Subparagraph 5.3.6 below), unless otherwise required by this Agreement. Development Agreement Between City of Dublin and Lowe's HIW, Inc. for the Lowe's Home Improvement Store Project - EXHIBIT B Page 2 of 7 (J .~ Other infrastructure necessary to provide sewer, potable water, and recycled water services to the Project will be made available by the DSRSD. DEVELOPER will enter into an "Area Wide Facilities Agreement" with the DSRSD to pay for the cost of extending such services to the Project. Such services shall be provided as set forth in Subparagraph 5.3.2(a)(ii) and (iii) above. SUbparagraph 5.3.5 -- Fees, Dedications Subsection a. Traffic Imoact Fees. Developer shall pay the Eastern Dublin Traffic Impact Fee ("TIF") established by Resolution No. 111-04, including any future amendments to such fee. Developer will pay such fees no later than the time of issuance of building permits and in the amount of the impact fee in effect at time of building permit issuance. Developer further agrees that it will pay eleven percent (11 %) of the "Section 1/Category 1" portion of the TIF in cash. Developer also agrees that it will pay twenty-five percent (25%) of the "Section 2/Category 2" portion of the TIF in cash. If City amends its TIF fee and as a result the City's outstanding balance due on loans is less than twenty-five percent (25%) of total Section 2/Category 2 improvements, the Developer shall pay such reduced percentage of the "Section 21Category 2" portion of the TIF in cash. Subsection b. Traffic Impact Fee to Reimburse Pleasanton for Freewav Interchanaes. DEVELOPER shall pay an Eastern Dublin 1-580 Interchange Fee in the amounts and at the times set forth in City of Dublin Resolution No. 155-98, or in the amounts and at the times set forth in any resolution revising the amount of the Eastern Dublin 1-580 Interchange Fee. Subsection c. Public Facilities Fees. DEVELOPER shall pay a Public Facilities Fee established by City of Dublin Resolution No. 214-02, including any future amendments to such fee. DEVELOPER will pay such fees no later than the time of issuance of building permits and in the then-current amount of the fee. Development Agreement Between City of Dublin and Lowe's HIW, Inc. for the Lowe's Home Improvement Store Project - EXHIBIT B Page 3 of 7 , 1J Subsection d. Noise Mitiaation Fee. DEVELOPER shall pay a Noise Mitigation Fee established by City of Dublin Resolution No. 33-96, including any future amendments to such fee. DEVELOPER will pay such fees no later than the time of issuance of building permits and in the amount of the fee in effect at time of building permit issuance. Subsection e. School Impact Fees. School impact fees shall be paid by DEVELOPER in accordance with Government Code section 53080 and the existing agreement between DEVELOPER's predecessor in interest and the Dublin Unified School District. Subsection 1. Fire Impact Fees. DEVELOPER shall pay a tire facilities fee established by City of Dublin Resolution No. 12-03 including any future amendments to such fee. DEVELOPER will pay such fees no later than the time of issuance of building permits and in the amount of the fee in effect at time of building permit issuance. Subsection Q. Tri-Vallev Transportation Development Fee. DEVELOPER shall pay the Tri-Valley Transportation Development Fee in the amount and at the times set forth in City of Dublin Resolution No. 89-98 or any subsequent resolution which revises such fee. DEVELOPER will pay such fees no later than the time of issuance of building permits and in the amount of the impact fee in effect at time of building permit issuance. Subparaqraph 5.3.6 -- Credit Subsection 8. Traffic Impact Fee Improvements Credit CITY shall provide a credit to DEVELOPER for those improvements described in the resolution establishing the Eastern Dublin Traffic Impact Fee if such improvements are constructed by the DEVELOPER in their ultimate location pursuant this Agreement. All aspects of credits shall be governed by CITY's then-current Administrative Guidelines regarding credits. Subsection b. Traffic Impact Fee Riaht-of-Wav Dedications Credit CITY shall provide a credit to DEVELOPER for any TIF area right-at-way dedicated by DEVELOPER to CITY that is required for improvements that are described in the resolution establishing the Eastern Dublin Traffic Impact Fee. All aspects of credits shall be governed by CITY's then-current Administrative Guidelines regarding credits. Development Agreement Between City of Dublin and Lowe's HIW, Inc_ for the Lowe's Home Improvement Store Project - EXHIBIT B Page 4 of 7 ;2c9 () /3? SubparaQraph 5.3.7 -- Miscellaneous Subsection a. Landscape Maintenance DEVELOPER agrees to comply with the following condition: Condition 26 of Planning Commission Resolution No. 06-21 reads as follows: In the event that DEVELOPER ceases or reduces operations on the Property, DEVELOPER shall continue to comply with Conditions No. 29 through No. 42 related to Landscaping, and Condition No. 24 related to Trash and Waste Accumulation. The requirements of this subsection shall survive the termination of this Agreement. Subsection b. Northside Drive Access Riahts. DEVELOPER agrees to comply with the following condition: The Owner shall relinquish the abutter's access rights to Northside Drive in favor of the CITY at the time Caltrans acquires Northside Drive for freeway purposes. This requirement shall be shown on the final parcel map. The requirements of this subsection shall survive the termination of this Agreement. Subsection c. Maintenance of Outdoor Spaces. DEVELOPER shall maintain the outdoor areas of its property in compliance with the conditions set forth below. Trash Compactor. At no time shall boxes, pallets or any other item be stored outside of the trash compactor area or the staging area or in any location where these items may be visible. Stacked Items. At no time shall any material or item be stacked so that it is taller than the wall of the Garden Center or the Staging Area. All items shall be located below the height of the wall and shall be screened from view to the extent possible. Parking Lot Sales. Development Agreement Between City of Dublin and Lowe's HIW. Inc. for the Lowe's Home Improvement Store Project - EXHIBIT B Page 5 of 7 30 () If'? Any outside events, including promotional sales and Christmas tree sales, shall be subject to the Temporary Use Permit requirements contained in the City of Dublin Municipal Code, specifically Section 8.108.020. Trash and Waste Accumulation. The applicant or any future owner shall provide and conduct maintenance of the site at least once daily, in order to eliminate and control the accumulation of trash, excess/waste materials and debris. Access. The outdoor display area at no time should block or impede the ingress or egress or disabled access areas. A clear space from the building fac;:ade to the parking area shall be maintained at all times. This clear space is required for the width of the exiting system. Storage of Items. At no time shall the outdoor display area be used to store any items. This outdoor display area shall only be used for the display of items that are available for sale inside the store. Building Materials. At no time shall building materials such as drywall, plywood, blocks, bricks, roofing materials or any other similar item be located in the outdoor display area. landscape Materials. At no time shall landscape materials such as soil, fertilizer, mulch, gravel or any other similar item be located in the outdoor display area. This condition does not apply to plant materials such as trees, shrubs, flowers or any other similar item. Storage Buildings. At no time shall storage buildings, accessory structures or sheds be located in the outdoor display area. Screening. Screening of the outdoor display area shall also be provided. The low walls and trees shall be maintained and shall not be removed for the life of the building or the display of items unless the removal has been approved by the Conditional Use Permit. Development Agreement Between City of Dublin and Lowe's HIWt Inc. for the Lowe's Home Improvement Store Project - EXHIBIT B Page 6 of 7 31 0; ? No trees along the front of the building shall be removed unless the tree will be replaced with the same species. Notwithstanding Paragraph 12.2 of the Agreement, if a default of the requirements of this subsection is not cured by the DEVELOPER within 24 hours after seNice of written notice of default, the CITY may then commence any legal or equitable action to enforce its rights under this Agreement. The requirements of this subsection shall sUNive the termination of this Agreement. Subsection d. Public Art. DEVELOPER agrees to comply with the following conditions. Condition 130 of the Planning Commission Resolution No. 06~21 is revised to read as follows: Public Art Contribution. Pursuant to the Public Art Master Plan, the Applicant/owner shall install a publiC art piece on the property as shown on the project plans or shall pay the Public Art in- lieu fee. If the Applicant/owner elects to provide a Public Art piece on-site, the Applicant/owner shall submit plans for Public Art for review an approval by the City, in accordance with the City's Public Art Master Plan, prior to installation of the art and prior to occupancy of the building. If the Applicant/owner elects to pay the Public Art in-lieu fee, the Applicant/owner shall pay a fee equal to five-tenths percent (0.5%) of the Building Valuation (exclusive of land) to finance an art project. This money shall be used at the City Council's discretion for Public Art at a location identified by the City Council. Condition 131 of the Planning Commission Resolution No. 06-21 reads as follows: Public Art and Access Easements. If the Applicant/owner elects to pay the Public Art in-lieu fee, the Applicant/owner shall dedicate a public art easement to the City of Dublin. This easement shall be at the approximate location of the landscape area identified on the Landscape Plan as a potential public art location. In addition, the Applicant/owner shall dedicate an access easement to the City of Dublin for purposes of site preparation and public art installation and maintenance, as required. The requirements of this subsection shall survive the termination of this Agreement. Development Agreement Between City of Dublin and Lowe's HIW, Inc. for the Lowe's Home Improvement Store Project - EXHIBIT B Page 7 of 7 CITY CLEiI.ef3? File # D~~~-~ )( (Qc)O...6O AGENDA STATEMENT CITY COUNCIL MEETING DATE: AUGUST 15,2006 SUBJECT: ATTACHMENTS: PUBLIC HEARING: P A 05-030 Grafton Station Stage 1 Development Plan Amendment, Stage 2 Planned Development Rezone, Development Agreement and CEQA Addendum for the Grafton Station retail shopping center. Report prepared by Erica Fraser, Senior Planne~ 1) Resolution XX-06 adopting a CEQA Addendum and a CEQA Statement of Overriding Considerations with the Addendum attached as Exhibit A, and the Statement of Overriding Considerations attached as Exhibit B. Ordinance XX -06 approving a Stage 1 Development Plan Amendment and a Stage 2 Rezone with the Amended Stage 1 Development Plan attached as Exhibit A, the Stage 2 Development Plan attached as Exhibit B and the Stage 2 PD Rezone booklet attached as Exhibit C. Ordinance XX -06 approving a Development Agreement between Lowe's HIW, Inc. and the City of Dublin for the Lowe's Home Improvement Warehouse, with the Development Agreement attached as Exhibit A. Planning Commission Resolution 06-24 recommending that the City Council approve a CEQA Addendum for the Project to the 1993 Eastern Dublin Environmental Impact Report without Exhibit. Planning Commission Resolution 06-23 recommending City Council approval of the Stage 1 Development Plan Amendment and the Stage 2 Planned Development Rezoning Grafton Station without Exhibits. Planning Commission Resolution 06-25 recommending that the City Council approve a Development Agreement between the City of Dublin and Lowe's HIW, Inc. for a portion of the project site without Exhibit. Planning Commission Resolution 06-21 approving the Site Development Review and Master Sign Program for P A 05-030 for the Lowe's Home Improvement Warehouse. Planning Commission Resolution 06-22 approving a Conditional Use Permit for an outdoor display in front oftne Lowe's building. 2) 3) 4) 5) 6) 7) 8) G:\P A#\2005\05-030 Lowe's\CClStaff Report - CC.doc COPIES TO: Property Owner/Applicant File Page 1 of6 Attachment 3 (t_ 9) 10) 11) 12) 13) 14) RECOMMENDATION: 1) 2) 3) ~V ~~ ~~ 7) FINANCIAL STATEMENT: PROJECT DESCRIPTION: 33of3k' June 27, 2006 Planning Commission Study Session Staff Report (without Attachments). July 25, 2006 Planning Commission Staff Report (without Attachments). Draft July 25,2006 Planning Commission Minutes. Grafton Station Phasing Plan. Elevation, Renderings and Site Plan of the Lowe's Home Improvement Warehouse. Location Map. Open the public hearing; Receive Staff presentation; Take testimony from the Applicant and the public; Close the public hearing and deliberate; Adopt Resolution (Attachment 1) approving a CEQA Addendum to the 1993 Eastern Dublin Environmental Impact Report with the Addendum attached as Exhibit A and a CEQA Statement of Overriding Considerations attached as Exhibit B; Waive Reading and Introduce Ordinance (Attachment 2) rezoning the project area and approving an amendment to the Stage 1 Development Plan and approving a related Stage 2 Development Plans with the Amended Stage 1 Development Plan attached as Exhibit A, the Stage 2 Development Plan attached as Exhibit B and the Stage 2 PD Rezone booklet attached as Exhibit C; and Waive Reading and Introduce Ordinance (Attachment 3) approving a Development Agreement between the City of Dublin and Lowe's HIW, Inc. for a portion of the project site with the Development Agreement attached as Exhibit A. No financial impact. Dublin Ranch is located within the Eastern Dublin Specific Plan Area that has been annexed to the City of Dublin. Area H was annexed as a part of Dublin Ranch and also pre-zoned to conform to the land use designations in the Eastern Dublin Specific Plan. Area H (commonly referred to as Grafton Station) is also a part of the Tassajara Gateway subarea, as defined in Section 4.9.1 of the Eastern Dublin Specific Plan. On March 21, 2000, the City Council approved a Rezone and Stage 1 Development Plan for Area H (P A 98-070). The vacant site is bordered by vacant land (zoned General Commercial) to the west; Dublin Boulevard and medium high density residential neighborhoods to the north; Interstate 580 to the south; and vacant land (zoned Campus Office) and a future stormwater treatment basin to the east. The site consists of approximately 29.2 gross acres. The site has two land use designations comprised of 18.7 acres designated General Commercial and 10.5 acres designated General Commercial/Campus Office. Page 2 of6 BACKGROUND: 3'10+3(j( Planning Commission Review This project was reviewed by the Planning Commission during a Study Session on June 27,2006. On July 25,2006, the Planning Commission reviewed the project during a public hearing and approved a Master Sign Program (including a 75 foot tall freeway sign for the shopping center) for Gr-afton Station, a Site Development Review for Lowe's Home Improvement Warehouse and a Conditional Use Permit to allow outdoor displays at the Lowe's Home Improvement Warehouse. At the July 25, 2006 Planning Commission meeting, the Commission also adopted Resolutions recommending City Council approval of a Stage 1 Development Plan Amendment, St<:1-ge 2 Planned Development Rezone, the CEQA Addendum and Development Agreement. ANALYSIS: Stage 1 Amendment The Stage 1 Development Plan for Area H was approved by the City Council op. March 21, 2000 (Ordinance 06-00). A Stage 1 Development Plan is required to pre-zone a property prior to annexation and establishes the permitted uses, site area, and allowable density. Since the original approval in 2000, the Applicant has determined that several additions/modifications are appropriate and requests approval of the following amendments to the Stage 1 Development Plan for Area H: 1. Modify the Site Gross Acres · Site area increased by 2.3 acres 2. Modify the List of Approved, Conditional and Temporary Uses: · Include Administrative Offices under Permitted Use · Include In Patient/Out Patient Health Facilities under Permitted Uses · Move Microbreweries and Bar/Cocktail Lounges from the Conditional Use section to the Permitted Uses Section · Include Parking Lot Sales in the list of Temporary Uses As indicated above, the Applicants also requested that the list of permitted and conditionally permitted uses in the approved Stage 1 Development Plan be amended to include uses which are compatible with typical shopping centers and consistent with uses permitted in the Zoning Ordinance for shopping centers. The proposed additional permitted uses would include administrative offices and in patient/out patient health facilities (such as a doctor's office) and microbreweries. Parking lot sales are also proposed to be added to the list oftemporary uses. In addition, while preparing documents for the current application, the Applicant determined that the actual gross acreage of the site was 29.2 acres. The existing Stage 1 Development Plan estimated the gross acreage of the project site to be 26.9 acres (or a difference of 2.3 acres). The change in gross acreage is due to several factors, including the re-alignment of Dublin Boulevard, a more accurate measurement of the parcel, and the inclusion of half of the street right-of way of North side Drive in the gross acreage. The proposed amendments to the Stage 1 Development Plan are consistent with the intent of the approved Development Plan. Stage 2 Planned Development Rezone The Grafton Station shopping center is proposed to be developed with approximately 318,000 square feet of retail space distributed over eight retail pads (please refer to Sheet PD-l in Exhibit C of Attachment 2). Page 3 of6 35" 0 ! .3 g The buildings are oriented so that the smaller retail buildings face Dublin Boulevard and Grafton Street t6 form an extension of the Village Commercial Center to be located along Gr~fton Street, north of Dublin Boulevard. The large scale retail stores are located on the western portion of the property and the entrances to these stores will face the parking lot. The Eastern Dublin Specific Plan encourages regional serving retail in this area (see Section 4.9.1). Additionally, the Eastern Dublin Specific Plan Land Use, General Commercial and General Commercial/Commercial Office, permits regional and community serving retail uses. The Stage 2 Development Plan is compatible with the intent of the Tassajara Gateway subarea and the land use designation because th~ shopping center is designed to be regional serving (large scale, big box stores) and also has some small scale retail shops which are typically intended to serve the community. . The shopping center will be constructed in phases, with the Lowe's store, related parking and landscaping, the extension of Grafton Street and Brannigan Street, and the construction of the bio-swale occurring during this phase (Phase I). The Grafton Station Phasing Plan provides the scheduling for construction in this Phase I, as well as anticipated future phases (Attachment 12). Permitted, Conditional and Temporary Land Uses The list of permitted and conditionally permitted uses can be found on pages 1-7 under the "Permitted, Conditional, and Temporary Land Uses" tab in Exhibit C of Attachment 2. The uses included in these lists are broken down by large scale big box stores and smaller retail stores. The purpose of including two store categories is to limit retail uses which are more suitable for smaller retail pads into the smaller retail pads and to encourage large scale commercial stores (such as Lowe's) to locate in the two large retail pads. The proposed uses are compatible with uses found in typical retail shopping centers. With the minor amendments to the Stage 1 Development Plan (as discussed above), the Stage 2 Rezone will be compatible with the approved Development Plan. Design Theme Grafton Station is proposed as an extension of the Village Commercial Center along Grafton Street north of Dublin Boulevard. Where appropriate, the Planning and Site Standards in Exhibit C of Attachment 2 require the continuation of architectural and landscape themes, materials, forms and elements established for the Village Center project to be implemented on the project site. By including common architectural themes in both commercial areas, the two centers will compliment each other and will maintain design consistency on Grafton Street. Although the two centers will have common design themes, it is important to note that the Grafton Station shopping center will include features to distinguish and announce the shopping center, such as the architectural towers (see II-32 of Exhibit C of Attachment 2 for an example). The overall design theme of the shopping center can be described as a "Main Street" design theme. Pages 1-4 through 1-10 in Exhibit C of Attachment 2 provide guidelines on what elements will need to be incorporated into individual building designs to meet the "Main Street" design theme. Specific design requirements are also included in the entire 'Design Standards' section of the Stage 2 PD Rezone booklet (Exhibit C of Attachment 2). Examples of architecture that would meet these requirements are also included in the Design Standards section. Landscaping Landscape guidelines are included in Section IV of the Land Use and Design Standards section of the Stage 2 PD Rezone booklet included as Exhibit C'to Attachment 2. The proposed landscaping includes a variety of evergreen trees in the parking lot with deciduous trees proposed as accent trees. Page 4 of6 30 of 3'1 Trees will be planted along Grafton Street and in the median. A plaza area with large canopy trees, shrubs, benches and a water feature will be located at the terminus of Grafton Street, adjacent to the traffic circle which has been designated as having the potential for Public Art. CEOA Addendum and Statement of Overriding Considerations The California Environmental Quality Act (CEQA) Guidelines Section 15164 provides that an addendum to a previously certified Environmental Impact Report (EIR) may be prepared when the project requires a minor technical change to the EIR and there are no new significant environmental effects and no substantial increase in the severity of previously identified significant effects. The amendments to the Stage 1 Development Plan require environmental review due to the increase in gross acreage of the site (which results in an increase in the allowable floor area of the site). The increase in acreage allows an additional 25,059 square feet of commercial space to be constructed on the site. Although there will be an increase in the allowable floor area on the project site, the total commercial space of 318,000 square feet, which includes the additional 25,069 square feet, falls within the development potential which was studied for the Tassajara Gateway subarea in the Eastern Dublin EIR. The CEQA Addendum for this project is attached as Exhibit A to Attachment 1. In addition, the Eastern Dublin EIR identified significant unavoidable impacts from development of the Eastern Dublin Area, some of which would apply to the Grafton Station project. CEQA Guidelines Section 15093 and a California Court of Appeal decision captioned Communities for a Better Environment v. California Resources Agency (2002) 103 Ca1.App. 4th 98, require approval of a new Statement of Overriding Considerations for the Project (Exhibit B to Attachment 1). Development Agreement A site specific Development Agreement is required in conjunction with all Site Development Review applications in Eastern Dublin. The Development Agreement for this project has been developed by the City Attorney and is similar to Agreements which have been developed for the other Eastern Dublin Projects. Grafton Station will be constructed in phases, therefore, each Site Development Review application to construct a new building within Grafton Station will require separate Development Agreement(s). The Development Agreement for the development of Phase I of Grafton Station must be approved by the City Council and is included as Exhibit A to Attachment 3. The Development Agreement includes requirements for infrastructure phasing and compliance with the intent of the new Public Art Ordinance that is before the City Council as a separate Agenda item at this meeting. Noticing In accordance with State law, a public notice was mailed to all property owners and occupants within 300 feet ofthe property to notify property owners and occupants of the proposed project and of the August 15, 2006 public hearing. The public notice was also published in the Valley Times and posted at several locations throughout the City. CONCLUSION: The Applicant is proposing a unique development for Grafton Station that combines architecture and extensive landscaping to provide for an attractive retail center that will serve the community and the region. The Planning Commission has approved the Site Development Review for the Lowe's Home Improvement Warehouse and a Conditional Use Permit to allow an outdoor display at the Lowe's store and has recommended City Council approval of the Stage 1 Development Plan Amendment, Stage 2 Planned Development Rezoning, Development Agreement and CEQA Addendum. The proposed Project is consistent Page 5 of6 37{)f3~ with the Dublin General Plan, Eastern Dublin Specific Plan, and the Stage 1 Planned Development Zoning (as amended) for Area H and is compatible with the surrounding properties, similar improvements in the area, and the project site. RECOMMENDATION: Staff recommends that the City Council: 1) Open the public hearing; 2) Receive Staff presentation; 3) Take testimony from the Applicant and the public; 4) Close the public hearing and deliberate; 5) Adopt Resolution (Attachment 1) approving a CEQA Addendum to the 1993 Eastern Dublin Environmental Impact Report with the Addendum attached as Exhibit A and a CEQA Statement of Overriding Considerations attached as Exhibit B; 6) Waive Reading and Introduce Ordinance (Attachment 2) rezoning the project area and approving an amendment to the Stage 1 Development Plan and approving a related Stage 2 Development Plans with the Amended Stage 1 Development Plan attached as Exhibit A, the Stage 2 Development Plan attached as Exhibit B and the Stage 2 PD Rezone booklet attached as Exhibit C; and 7) Waive Reading and Introduce Ordinance (Attachment 3) approving a Development Agreement between the City of Dublin and Lowe's HIW, Inc. for a portion of the project site with the Development Agreement attached as Exhibit A. Page 60f6 Location Map :3ct &f 37' N SCALE 1 : 11,238 ~,...,.. 500 0 1.- . '1 ~ 500 1,000 1,500 FEET /~ Attachment 4 http://mapgu ide/mwf/D u blin. mwf Wednesday, August 23,20069:18 AM