PURPOSE:

This report requests that the City Council approve the Burbank-Glendale-Pasadena Airport Authority�s request to amend the Grant of Easements, Declaration of Use Restrictions and Agreement for Trust Property (�Trust Property Easements�) to permit Sunrise Ford, Inc. (�Sunrise�) to utilize approximately 130,680 square feet of the M-2 zoned portion of the Trust Property , a portion of the former Lockheed B-6 site, as a temporary location for automobile storage of approximately three hundred (300) new cars.  The proposed amendment to the Trust Property Easements would not permit any additional use of the Adjacent or Trust Property without further approval by the City Council, and Sunrise�s ability to use a defined portion of the Trust Property would expire the earlier of:  two years after it commences using the site (but no later than September 1, 2005), or the date that its lease with the Authority otherwise is terminated. 

BACKGROUND:

Sunrise presently operates a car sales business in North Hollywood.  Sunrise needs a location to store new cars on an interim basis, while it is looking to relocate from its present location to another one.  It has entered into a lease with the Authority whereby the Authority agrees to lease the site subject to the Trust Property Easements.

THE APPLICATION:

By letter dated January 28, 2003, and as amended on February 24, 2003 and March 13, 2003, the Authority asked the City to amend the Trust Property Easements in order to permit the temporary use of approximately 130,680 square feet of the M-2 zoned portion of the Trust Property for the interim use by Sunrise (Exhibit A).  A map depicting the proposed temporary site, and temporary improvements such as lights and fencing, is attached as Exhibit B.

Access to the temporary facility would be from two locations: a San Fernando Road gate and a Tulare Avenue gate, as shown on Exhibit B.  The Authority does not expect that any grading or excavation will be required, and that no structures will be constructed.  The only improvements will consist of temporary light standards, which are expected to be approximately 30-35 feet high and security fencing, both of which will be removed when Sunrise�s lease terminates.  Additionally, Sunrise has requested to install a pay phone.

APPLICABLE LEGAL STANDARDS:

Zoning Approval

The site for the proposed facility is located in the M-2 General Industrial Zone.  Pursuant to Burbank Municipal Code Section 31-502, an �automobile storage yard� is a permitted use in the M-2 zone.  Accordingly no zoning approval or conditional use permit is required for the proposed project.

1999 Grant of Easements, Declarations of Use Restrictions and Agreements for the Trust Property

Uses on the Trust Property are subject to easement and use restrictions pursuant to the Trust Property Easements.  A copy of the Trust Property Easements is attached as Exhibit C.  The Trust Property Easement was executed as part of a complex transaction among Burbank, the Authority and Lockheed that allowed the Authority to pay Lockheed for the B-6 property, but restricts the ability of the Authority to use the B-6 Property without prior approval by the City.  Pursuant to those Title Transfer Documents, title to the Trust Property is held by a Trustee. The Trust Property Easements essentially prohibit any use of the Trust Property other than certain historical uses as permitted by a 1997 Stipulated Order between the Authority and the City.  The proposed use of the Trust Property for the Project is not permitted pursuant to the Trust Property Easements.  Accordingly, the project cannot be implemented unless and until the City, the Trustee and the Authority agree to amend the Trust Property Easements.  Because the temporary use of a portion of the Trust Property for the Sunrise project would not enlarge Airport operations, and is temporary in nature, staff recommends that the Trust Property Easements be amended to allow the Sunrise project.  The amendment would permit the use on a portion of the Trust Property for the earlier of:  two years after Sunrise commences using the site (but no later than September 1, 2005), or the date that its lease with the Authority otherwise is terminated. The proposed amendment would not permit any additional use of the Trust Property, and would not permit any use of the Trust Property not permitted in the 1999 Trust Property Easements after September 1, 2005 at the very latest. A copy of the proposed Second Amendment to the Trust Property Easements is attached as Exhibit  D.

Compliance with California Environmental Quality Act (CEQA)

The Authority filed a Notice of Exemption on February 27, 2003 with the Los Angeles County Clerk, stating that this project was exempt from the California Environmental Quality Act in accordance with 14 Cal. Code of Regulations. Section 15301, Existing Facilities exemption (Exhibit E).

FAR Part 77 Regulations

Part 77 of the Federal Aviation Regulations (14 C.F.R. Part 77) establishes imaginary surfaces that extend upward and outward from runway surfaces.  Constructed and natural objects that fall within the Part 77 surfaces are considered by the FAA to be potential obstructions to air navigation.  PUC Section 21659 prohibits construction or natural growth in violation of Part 77 standards, unless the FAA has determined that the construction or natural growth would not constitute a hazard to, or create an unsafe condition for, air navigation.

The Airport Authority has stated that the Sunrise�s proposed use does not violate the height limits imposed by Part 77.  The temporary site uses lower light standards and is located farther from the runways. Staff notes that as the Airport proprietor, the Airport Authority is responsible for complying with Part 77 and PUC Section 21659.  Nothing in the City�s actions under Section 21661.6 should be construed as approving a project that would be in violation of Part 77 or PUC Section 21659.

Ordinance No. 3601 (IDCO)

On August 20, 2002, the City Council adopted Ordinance No. 3601, enacting an Interim Development Control Ordinance on certain development on and near the Airport requiring only ministerial approvals.  On October 4, 2002, the City Council extended the IDCO until August 19, 2004.  The Sunrise project is not subject to the IDCO because it cannot be approved as a ministerial matter.  As noted above, the Sunrise project requires discretionary approval to amend the Trust Property Easements.  Furthermore, the Sunrise project is not subject to Measure B because the Sunrise project does not involve the enlargement, expansion or relocation of the Airport passenger terminal.

California Public Utilities Code � 21661.6

California Public Utilities Code �21661.6 requires, in general, that prior to acquiring an interest in land in the City, the Airport Authority must obtain City Council approval of the Airport Authority�s plan to use that interest.  PUC Section 21661.6(e) requires City Council approval for any new uses of property the plan for the use of which was previously approved.  Section 21661.6 approval is not necessary for Sunrise�s temporary use of a portion of the Trust Property because the Airport Authority does not hold legal title to the Trust Property (the Trustee does) and would not acquire title to the Trust Property by virtue of Sunrise�s use of the property. 

ANALYSIS AND CONCLUSIONS:

Sunrise has expressed interest in relocating to Burbank, and is presently exploring that option. To facilitate their presence in this City would benefit the City�s tax base. The current request to amend the Trust Property Easements is necessary to allow Sunrise to temporarily lease Authority land on the Trust Property while they explore relocation options.

It is staff�s conclusion that the Trust Property Easements should be amended to permit the temporary location of Sunrise on approximately 130,680 square feet of the Trust Property in order to allow Sunrise to lease a portion of Authority land while it continues its relocation search. The proposed Second Amendment to the Grant of Easements, Declaration of Use Restrictions and Agreement for Trust Property allows Sunrise to use a defined portion of the Trust Property for a defined period of time for the limited purpose to store new cars.  The proposed Second Amendment would not permit any other use of the Trust Property.  Accordingly, staff concludes that the proposed Second Amendment preserves the City�s control over the use of the Trust Property as contemplated in the 1999 Title Transfer Documents.

RECOMMENDATION:

It is recommended that the City Council approve the Resolution entitled: 

A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING A SECOND AMENDMENT TO THE �GRANT OF EASEMENTS, DECLARATION OF USE RESTRICTIONS AND AGREEMENT FOR TRUST PROPERTY� TO PERMIT TEMPORARY USE OF APPROXIMATELY 130,680 SQUARE FEET OF THE M-2 ZONED PORTION OF THE TRUST PROPERTY FOR USE BY SUNRISE FORD, INC. (BURBANK-GLENDALE-PASADENA AIRPORT AUTHORITY, APPLICANT).           

LIST OF EXHIBITS:

Exhibit A         Application letters from Authority

Exhibit B         Site Plan for Temporary Trust Property Site

Exhibit C        1999 Grant of Easements, Declarations of Use Restrictions and Agreements for the Trust Property

Exhibit D        [Proposed] Second Amendment to the Grant of Easements, Declaration of Use Restrictions and Agreement for

                       Trust Property

Exhibit E         Notice of Exemption

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