City Council

12. FIRST AMENDMENT TO DEVELOPMENT AGREEMENT 2022-0002 – THE JESSUP AT 17802 – 17842 IRVINE BOULEVARD A request for the first amendment to Development Agreement 2022-0002, an agreement between the City of Tustin and Tustin 40 Development LLC (Property Owner) for “The Jessup” residential project. The proposed amendment is a request to eliminate the Property Owner’s requirement to pay the Voluntary Workforce Housing Incentive Program In-Lieu Fee (“In-Lieu Fee”). On July 9, 2024, the City of Tustin Planning Commission held a public hearing on the proposed request and adopted Resolution No. 4492, recommending that the City Council adopt Ordinance No. 1544, approving the first amendment to Development Agreement 2022-0002. On September 17, 2024, the City Council held a public hearing to consider the Property Owner’s requested amendment to Development Agreement 2022-0002. The City Council’s motion failed due to a 2-2-1 vote (Attachment 3). The Property Owner is now requesting that the City Council reconsider the matter and adopt Ordinance 1564, approving first amendment to Development Agreement 2022-0002 (Attachment 4). Recommendation: That the City Council conduct first reading of Ordinance No. 1564, by title only, for the first amendment to Development Agreement 2022- 0002, and set second reading to the next available Council meeting. ORDINANCE NO. 1564 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, APPROVING FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (DA) 2022-0002, TO ELIMINATE OWNER’S REQUIREMENT TO PAY FOR THE VOLUNTARY WORKFORCE HOUSING INCENTIVE PROGRAM IN-LIEU FEE FOR THE “THE JESSUP” RESIDENTIAL PROJECT LOCATED AT 17802 AND 17842 IRVINE BOULEVARD. Fiscal Impact: The removal of the In-Lieu Fee will reduce anticipated contributions to the City’s Housing Fund by approximately $289,560; however, the reduction is consistent with the Council’s action to temporarily waive the In-Lieu fee where it applies elsewhere, pursuant to the Municipal Code, which includes properties within the Downtown Commercial Core Specific Plan and Red Hill Avenue Specific Plan.