PURPOSE

The purpose of this report is to comply with Section 31-19129 of the Burbank Municipal Code (BMC), which requires the Community Development Director to submit to the City Council an annual review of each Development Agreement (DA) entered into pursuant to the Planned Development (PD) provisions of the Code. This review is for the time period of May 30, 2006 through May 31, 2007.

BACKGROUND

The PD process began in 1985. Its purpose is to provide a process for rezoning property to accommodate unique developments under controlled conditions. The DA is the implementation and enforcement tool for a PD; it is an agreement between the City and the applicant that provides vested rights to assure a developer that the PD can be built within a prescribed time.  The DA is used to implement the specific conditions of approval for the PD which have been imposed on a particular development project by the City Council.

The BMC requires an annual report to the City Council on the status of each DA entered into as a part of the PD process (Section 31-19129).  Similarly, the Code requires that the City Planner review each DA, every 12 months, for compliance with the conditions set forth in the agreement.  This annual report summarizes the City Planner review.  If there is a violation of a DA, then the Council can proceed, after a noticed public hearing, to terminate the agreement, but only if substantial evidence supports a finding that the developer has not complied in good faith with the terms and conditions of the DA. The PD Zone remains in effect even after a DA has been terminated or expired, for that becomes the site�s permanent zoning. Once the DA has expired or been terminated, Council is free to rezone that property should it so desire.

If the City Planner finds that substantial evidence supports a finding that the developer did not comply with the terms and conditions of the DA in good faith, then he or she can set the matter for a hearing before the Planning Board. If the Planning Board makes a similar finding, then the matter goes before the City Council. These steps would occur prior to the Council annual review. (BMC 31-19114, 19115) The City Council may then initiate termination proceedings or modifications to the agreement in the event that it finds and determines that the applicant has not complied in good faith with the terms or conditions of the agreement. The Council is required to hold a public hearing prior to terminating or modifying a DA (BMC 31-19116).

Over the past 24 years during which the City has been using the PD process, there have been a total of 110 PD applications taken in � some for new PDs,  some for amendments to existing PDs, and some replacing PDs that were approved but not built.  The current status of these PD applications is as follows:

• 18   Active PDs (not built,  not yet complete, or amended);

• 11   PDs with expired DAs;

•  5    PDs that had expired DAs and have already been rezoned;

• 51   Completed PDs and PD amendments;

• 25   Denied, Withdrawn, or Replaced PDs and amendments.

In order to comply with Code requirements, the review provided in this report deals with those DA�s entered into in conjunction with PDs and reports on the status of those agreements.

Active PDs

There are currently 18 active PDs; these are approved PDs that are not built or not yet complete (Exhibit A). Staff monitors the active PDs to ensure progress and compliance with development requirements and conditions of approval.  All of the active PDs are in compliance with requirements of their DAs. 

 PDs with expired Development Agreements

There are 11 PDs which have not been built and which have DAs that have expired.  The DAs for the following PDs have either expired prior to the approved projects being built, prior to the completion of the entire entitlement, or were never executed; the sites are therefore left with a PD zoning for an approved project but the developer no longer has vested rights to the project and those conditions and regulations that the City has imposed on the particular project, which were contained in the DAs, are no longer in effect.

PDs with Expired Development Agreements

The above sites are zoned as PDs yet are left without the DA which was negotiated in conjunction with the PD approval.  Even when DAs expire, the PD Zone, as with any other zone change in the City, stays in effect until a subsequent zone change replaces it with another zone.  There is no automatic reversion back to the previous zoning.  Staff is working with the City Attorney�s office to amend the BMC to improve the use and administration of the PD process.

ANALYSIS

The annual review of PDs and the DAs for those PDs is an opportunity to ensure that developers are complying with the schedule and conditions of approval that are part of the DAs.  Through this annual review process the City can ensure that the conditions of each active PD are being met, and where they are not being met, work to ensure compliance.

During the early 1990�s, following the passage of Measure One, the PD process was used extensively for multiple family residential projects.   Developers applied for PDs in order to obtain entitlements for projects they were concerned might not be approved once the new development standards called for by Measure One were codified.  Several of these PDs were never built and the conditions of the entitlement detailed in the DA for these PDs expired along with the DA.  As mentioned above, there are 11 such properties which have a PD Zone designation with no active DA.   The BMC (Sec. 31-19129) states that the City Council �may terminate or modify the agreement (Development Agreement) without the consent of the applicant or his successors in interest in the event Council finds and determines � the applicant or successor in interest has not complied in good faith with the terms or conditions of the agreement�.  The Code also states that the termination of a DA �shall result in the immediate reversion of the PD Zone to the R-1 Zone�.  The City Attorney has informed staff that, in fact, there cannot be an automatic reversion to the R-1 zone but rather, the PD sites must go through the entire zone map amendment process. Staff is working with the City Attorney�s office to correct this part of the Code in conjunction with the other changes being made to the PD and DA sections of the City Code. 

Staff is exploring the idea of using the PD Zone as an overlay zone so that the property owner would have the option of building in accordance with the underlying zone rather than the approved PD should he so desire. Another idea that staff is exploring is delaying the change in the underlying zone until the approved PD has reached a certain stage in the development process that would likely ensure completion of the project, such as the issuance of building permits.  Amending the Municipal Code so that the underlying zone would not be changed would ensure that the PD process functions as intended.  There are several ways of achieving this end in addition to the use of an overlay zone and staff is working with the City Attorney�s Office to formulate an amendment to the Municipal Code to better implement the PD process.

The PD process is an important tool in the Planning toolbox to accommodate and facilitate unique developments in the community that can benefit from specialized development standards.  It is important, however, that there be an ongoing mechanism to ensure the continued compliance of the conditions of approval and project requirements; the current use of DAs has not proven to be an effective way of regulating PDs in that they expire thereby eliminating the requirements that are contained therein.  Staff has been working with the City Attorney�s office to come up with changes to the PD process that would make sure that a PD Zone would not be left without protections to ensure that all the conditions of the approved project are met.  Increasingly, over the past few years, important conditions and development requirements have been included in the PD approval rather than in the DA to ensure that these will be in place for as long as the PD Zone is on the property.

Staff will continue working with the City Attorney�s Office on a zone text amendment to eliminate the �zone reversion� clause for PDs with expired DAs, and on mechanisms to ensure that PDs not be left without an underlying zone alternative in the event that they are not built in accordance with the provisions of the DA. 

An important mechanism for monitoring the conditions of PDs is the Land Use Entitlement Verification Program administered by the License and Code Services Division.  This program was first approved as a pilot program two years ago.  It is now a permanent  ongoing program conducted as a "fail safe" verification to ensure that all land use entitlements granted over the years, including those for PDs, Conditional Use Permits, Variances, Administrative Use Permits, etc., are operating within the scope of their conditions of approval.  To date this program has inspected and verified 645 land use entitlements which represent 563 properties.  This includes all PDs approved since 1989.  This Entitlement Verification Program looks at all new entitlements and is working on going back to verify entitlements from earlier years; the years which have been verified to date range from 1989 to the present.  The overall out-of-compliance rate is around 14%; however, it is uncommon for PDs to be out of compliance once the projects are completed. Occasionally there are issues with traffic or trash during the construction phase, or weeds on a parcel prior to construction when waiting for permits to be issued; these issues are referred to the appropriate staff person for follow-up. There are currently no compliance issues with PDs.

RECOMMENDATION

Staff recommends that the City Council direct staff to continue working on amending the Municipal Code relating to PDs and to improve the use and administration of the PD process in order to eliminate the �zone reversion� clause and ensure that PDs will not be left without an underlying zone alternative in the event that they are not built.  In addition, staff recommends that the City Council direct staff to work with developers on a project by project basis to craft PD approvals and DAs in a way that will ensure that important conditions and development requirements associated with a PD will be in place for as long as the PD zone is on the property.

LIST OF EXHIBITS

EXHIBIT A                 Summary of Active Planned Developments

EXHIBIT  A

SUMMARY OF ACTIVE PDs

(UNBUILT OR INCOMPLETE)

PLANNED DEVELOPMENT NO. 89-7

Applicant: M. David Paul Development                       Project: Media Studios North

Location: 3101-3301 Empire Avenue between

                 Ontario Street and Hollywood Way

Original PD approved November 5, 1991 (Ord. 3278)

Amended PD approved April 15, 1997 (Ord. 3463)

Amended DA effective July 14, 1997

Amended DA expires July 14, 2007

Second Amendment effective April 9, 2005

Second Amendment Expires April 9, 2012

The project is a unique media oriented development.  Phase 5 of the project has been completed bringing the total amount of development under this PD to 651,245sf.  Total remaining entitlement for this PD is approximately 90,000sf.

PLANNED DEVELOPMENT NO. 91-13

Applicant: Walt Disney Company                                Project: Walt Disney Studios Master Plan

Location: 500 S. Buena Vista

PD approved October 20, 1992 (Ord. 3317)

DA effective November 24, 1992

DA expires November 24, 2017

The project is unique, with mixed-use studio elements.

The majority of the entitled floor space has been constructed; there remains approximately 250,000sf left to be developed. The only remaining opportunity is for one additional structure on the southwest corner of the main campus. There is no development schedule for construction of the remaining floor area.  Some tenant improvements have been carried out over the past year.

PLANNED DEVELOPMENT NO. 94-7

Applicant: Warner Bros.                                  Project: Warner Bros. Studio Main Lot Master Plan

Location: 4000 Warner Boulevard

PD approved October 10, 1995 (Ord. 3415)

PD effective November 25, 1995

DA expires November 25, 2015

The project is unique, with various studio elements.

The 20-year master plan has been initiated and construction is in progress. Building 28, which replaced damaged office and warehouse space, was completed in 1997. The remodel of Building 6, Scoring and Dubbing Stages, was completed in 1998. Building 50, Feature stage, was completed in 1998.  The Western back lot was converted to a New England theme with production offices in 2004.  Construction of a new post-production facility was completed in 2005.  To date, Warner Bros. has developed approximately 5.3% of their entitled Master Plan for the Mail Lot.. The next required child care survey, which is a condition of approval for this PD, will occur in 2010 when WB will be required to survey new employees housed in new facilities developed subsequent to the 1995 Development Agreement.

PLANNED DEVELOPMENT NO. 94-8

Application: Warner Bros.                                           Project: Warner Bros. Studios Ranch Lot

Location: 3701 Oak Street                                                         Master Plan

PD approved October 10, 1995 (Ord. 3416)

DA effective November 25, 1995

DA expires November 25, 2015                                              

The project is unique, with various studio elements.

The 20-year master plan has been initiated and construction is in progress. A new security gate, grading for parking and various other tenant improvements were carried out in 2000-2001.  A new production office was built, to replace the trailers that were on the site. There is no development schedule for the master plan as a whole. .  To date, Warner Bros. has developed approximately 2.3% of their entitled  Ranch Lot Master Plan The next required child care survey, which is a condition of approval for this PD, will occur in 2010 when WB will be required to survey new employees housed in new facilities developed subsequent to the 1995 Development Agreement.

PLANNED DEVELOPMENT NO. 96-1

Applicant: NBC                                                          Project: NBC Studios Master Plan

Location: 3000 W. Alameda

PD approved March 18, 1997 (Ord. 3461)

DA effective April 26, 1997

DA expires April 26, 2017

The project is unique, with various media related and studio elements.

The 20-year master plan has been approved.  Construction has not begun and there is no development schedule.

NBC sold the Catalina Street property to M. David Paul with existing entitlements.  MDP pulled a permit for a 14 story media office building which is currently under construction and expected to be completed in 2008.

PLANNED DEVELOPMENT NO. 97-3

Applicant: Zelman Retail Partnerships, Inc (original       Project: Empire Center - Mixed use    

applicant) individual parcels sold to various                                  retail, office and extended  stay different developers.                                                                         hotel

Location: Empire Ave (former B-1 site)

PD approved September 12, 2000 (Ord. 3554)

DA effective October 13, 2000

DA expires October 13, 2015

Remaining undeveloped entitlement is now owned by Higgins Development Partners.  The remaining entitlement is approximately 360,000sf of office space.  The condition compliance process has been completed for a 7 story office building and a 6 level parking structure.  City departments and divisions have made comments on the project and these will be addressed prior to submitting plans to the Building Division for plan check.  Construction is expected to start by Fall 2007.

A 10,000sf retail building (Ulta cosmetics) is under construction on sub-area C (the Great Indoors portion of the Empire Center).

PLANNED DEVELOPMENT NO. 97-4

Applicant: Graciela Hotel                                             Project: 2^nd Amendment for the purpose of Location: 322 N. Pass Ave                                                         adding restaurant, pool and spa

.

PD approved 5/12/1998 (Ord. 3483)

DA effective 9/9/1998

DA expired 9/9/2003

PD amended 12/10/2005 (Ord. 3684)

DA effective 10/31/2005

DA expires 10/31/2008

Graciela Hotel was completed prior to amendment for restaurant and pool/spa.  The Graciela is under new ownership.  Owners have stated their intent not to pursue the improvements authorized by the 2^nd amendment, and may seek approval of a 3^rd amendment to allow for alternative amendment to allow for alternative improvements.                                                        

PLANNED DEVELOPMENT NO. 99-4 � First Amendment

Applicant: R. D. Olsen                                                Project: Marriott Hotel - 166 Hotel Suites

Location: 321 So. First Street

PD approved  Jan 25, 2001 (Ord. 3356)

DA expired March 4, 2005

PD amendment approved Feb. 7, 2006 (Ord. 3689)

DA effective Feb.28, 2006

DA expires Feb. 7, 2011

Amendment approved to change the number of rooms from 253 to 166, reduce the height of the structure from 12 to 4 stories and reduce the required number of parking spaces.   Hotel is under construction.  Completion is expected in August 2007.

PLANNED DEVELOPMENT NO. 2001-2

Applicant: Maple Dell & McClelland                                       Project: Bob Hope Center

Location: Bob Hope Triangle � West Olive

PD approved May 29, 2001 (Ord. 3579)

DA effective (date signed) _July 17, 2001

DA expires (date signed + 10 yr) July 17, 2011

The project has been approved for 108,500 sf of office building and 20,000sf performing arts center.  This project has been on hold for several years, however, the developer�s representative has indicated that they may begin moving forward with this project in the near future.

PLANNED DEVELOPMENT NO. 2002-2

Applicant: City of Burbank                                       Project: Community Services Building (CSB)

Location: 150 Third Street

PD approved May 29, 2003 (3620)

DA effective April 26, 2003

DA expires : April 26, 2011

This PD includes entitlement for various civic center buildings including a new central library and Community Services Building (CSB) and associated parking.

CSB is under construction.

PLANNED DEVELOPMENT NO. 2003-1

Applicant: Platt Companies                                        Project:  Multi-use -Restaurant, Retail, 

Location: North Triangle                                                           Residential, Church and Childcare

PD approved February 8, 2005 (Ord. 3664)

DA effective - pending

DA expires: April 26, 2011

This was originally PD 2000-5 which was denied by Planning Board and the City Council.  Platt has not yet indicated how or if it will move forward with this project.

PLANNED DEVELOPMENT NO. 2003-2

Applicant: Champion Development Group                   Project: 118 condos, 50,000sf. of                                     The Collection at Downtown Burbank                        retail/restaurant and parking for              Location: 140 E. Palm St                                                        project and downtown.

PD approved Dec. 7, 2004 (Ord. 3658)

DA effective January 15, 2005

DA expires January 15, 2012

This has been separated off from PD 98-2 (AMC Entertainment Village).  Construction is in progress.

PLANNED DEVELOPMENT NO. 2003-3

Applicant: Pacific Medical Buildings                       Project: 155,000sf medical office space 

                  Burbank Medical Plaza                                           in 2 buildings plus structured parking Location: 201 Buena Vista St.                                               added to existing 72,000sf  office                                                                                                          building

PD approved  Feb. 1, 2005  (Ord. 3665)

DA effective March 20, 2005

DA expires: March 20, 2015

Parking structure is complete.  Permits have been pulled for second Medical Office Building.  Plans are being prepared for the Cancer Center building.

PLANNED DEVELOPMENT NO. 2004-64

Applicant: Casden (acquire from Fairfield)                   Project: 232 Town homes, office and retail

Location: 1935 N Buena Vista

PD approved  1/17/2006  (Ord.2998)

DA effective  4/12/2006

DA expires 4/12/2016

After acquiring the project from Fairfield, Casden has been working on making some architectural changes to the project.  Proposed changes are currently being reviewed by staff and are expected to go to the Planning Board in July 2007.

PLANNED DEVELOPMENT NO. 2004-169

Applicant: B-G-P Airport Authority                             Project: A-1 North Parking Lot

Location: 2555 N. Hollywood Way                                           Surface parking lot with valet                                                                                                     parking facility                                  

PD approved Feb. 1, 2005  (Ord.3660)

DA effective March 15, 2005

DA expires: June 21, 2012

Permits have been issued for parking lot improvements and construction is ongoing.

PLANNED DEVELOPMENT NO. 2004-170

Applicant: B-G-P Airport Authority                             Project: Lot A - Surface Parking Lot

Location: 2729 N. Hollywood Way                                            

PD approved Feb. 1, 2005 (Ord.3661)

DA effective March 15, 2005

DA expires: June 21, 2012

Permits have been issued for the parking lot and construction is ongoing.

PLANNED DEVELOPMENT NO. 2005-87

Applicant: Damudar Family Trust                      Project: 3 story Mixed Use building with

Location: 3901 Riverside Dr.                               7,648 sf of  street level retail (4,620 sf                                                                                                   restaurant and 3,028 sf general retail), two                                                                                levels of residential (8units) and two                                                                                          levels of subterranean parking.

PD approved March 27, 2007 (Ord. 3718))

DA effective May 12, 2007

DA expires: May 12, 2017

Construction plans are being prepared.

PLANNED DEVELOPMENT NO. 2006-46

Applicant: Dasher Lawless Inc.         Project: 4 story Mixed Use building consisting of

Location: 3805 West Olive Ave                      1,600 sf of restraint space on the first and second

                                                                         floors, 9,425 sf of office space on the third floor                                                                                    and five residential units on the fourth floor.  All                                                                                     valet parking.

PD approved April 17, 2007

DA effective

DA expires: 10 years from effective date

Construction plans are being prepared; anticipate pulling permits by the end of 2007. Alley vacation is in process.

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