City Council

12A. RATIFICATION OF OPERATING MEMORANDUM RELATING TO A DEVELOPMENT\nAGREEMENT BETWEEN THE CITY OF STANTON AND LIFE ILLUMINATED, LLC\nFOR THE “VRV” PROJECT, LOCATED AT 12736 BEACH BOULEVARD, AND\nINITIATION OF A DEVELOPMENT AGREEMENT AMENDMENT BETWEEN THE\nCITY OF STANTON AND BONANNI DEVELOPMENT COMPANY III, LLC RELATING\nTO THE PAYMENT OF PUBLIC BENEFIT FEES FOR THE VRV PROJECT\nIn June 2020, the City and Life Illuminated, LLC, the developer of the VRV mixed-use\nproject at 12736 Beach Boulevard, entered into a Development Agreement (“VRV\nAgreement”). Among other things, the Agreement provided the developer a vested right\nto construct the project in exchange for the payment of certain development impact and\npublic benefit fees. Recently, the developer reached out to the City regarding its\nfinancial hardship and requested an alternative schedule to pay for a portion of the fees.\nThe VRV Agreement allows the parties to agree to a different payment schedule for\npublic benefit fees. Tonight, the Council will: (1) consider ratifying an Operating\nMemorandum between the City and developer that would memorialize an alternative\npayment schedule for a portion of the public benefit fees, and (2) consider directing staff\nto initiate an amendment to the Development Agreement between the City and Bonanni\nDevelopment Company III, LLC, whose “Bigsby” project at 12200 Beach Boulevard\nwould be used as collateral for the VRV fees.\nSeptember 12, 2023\nRECOMMENDED ACTION:\n1. City Council declare this project to be categorically exempt under the California\nEnvironmental Quality Act, Section 15378(b)(5) – Organizational or administrative\nactivities of governments that will not result in direct or indirect physical change in\nthe environment; and\n2. Staff recommends that the City Council consider and ratify an Operating\nMemorandum relating to the VRV Agreement, and direct Staff to begin processing\nan amendment to the Development Agreement between the City of Stanton and\nBonanni Development Company III, LLC.