REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Sean Crumby, Director of Public Works
Subject:
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Approve the execution of a Subdivision Agreement with Huntington Gateway Industrial II, LLC and accept Securities for the Huntington Gateway Phase II Industrial Project, located on the north side of Bolsa Avenue at the intersection with Graham Street
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Statement of Issue:
A “Subdivison Agreement between the City and Huntington Gateway Industrial II, LLC” (owner/developer) and the related securities are presented for City Council approval, execution and acceptance for the Huntington Gateway Phase II industrial project located on the north side of Bolsa Avenue at the intersection with Graham Street.
Financial Impact:
No funding is required for this action.
Recommended Action:
recommendation
A) Approve and authorize the Mayor and City Clerk to execute and record the “Subdivision Agreement by and Between the City of Huntington Beach and Huntington Gateway Industrial II, LLC for Parcel Map No. 2019-153” to construct public improvements for the Huntington Gateway Phase II industrial project (Attachment 1); and,
B) Accept the Faithful Performance Bond No. 800043002 (Attachment 2), Labor and Material Bond No. 800043002 (Attachment 3) and Monument Bond No. 800043002-M (Attachment 4), the securities furnished for installation of the required public improvements; and,
C) Instruct the City Clerk to file the bonds with the City Treasurer.
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Alternative Action(s):
Do not authorize execution of the “Subdivision Agreement between the City of Huntington Beach and Huntington Gateway Industrial II, LLC” for the Huntington Gateway Phase II industrial project, with findings for denial, and direct staff accordingly. Without this Agreement, the developer would be unable to satisfy the project’s Conditions of Approval.
Analysis:
On May 5, 2021, the Director of Community Development conditionally approved Site Plan Review No. 20-001 and Tentative Parcel Map No. 19-153, authorizing the construction of the Huntington Gateway Business Park Phase II project which consists of a new commercial/industrial development located on the north side of Bolsa Avenue (between Bolsa Chica Street and Graham Street, south of Skylab Road.) See Attachment 5 for a location map. This project involves 1,020,000 square feet of new commercial/industrial warehouse space, outdoor parking, onsite/offsite utility upgrades and construction of a new public street, Delta Lane (between Bolsa Avenue and Skylab Road).
Pursuant to the project’s Condition of Approval No. 4, since the Final Parcel Map is proposed to be recorded before the required public improvements are planned to be completed, a Subdivision Agreement and accompanying bonds are being submitted to ensure the Developer’s construction obligations in accordance with the State’s Subdivision Map Act.
The attached Faithful Performance Bond, Labor and Material Bond, and Monument Bond are being provided as securities for the installation of the required public improvements. The required bond amounts are:
Faithful Performance $4,266,600
Labor and Materials $2,133,300
Monument $5,000
Project data
Developer: Sares Regis Group, Attn: Asset Manager
3501 Jamboree Road, Suite 3000, Newport Beach, CA 92660
Engineer: Michael Baker International, 5 Hutton Centre Drive, Suite 500, Santa Ana, CA 92707
Surety: Atlantic Specialty Insurance Company, 605 Highway, 169 North, Suite 800,
Plymouth, MN 55441
Location: 5301 Bolsa Avenue (north side between Bolsa Chica Street and Graham Street, south of Skylab Road)
Zone: McDonnell Centre Specific Plan (SP11)
No. of Acres: 49.5 acres
No. of Lots: 5 numbered and 0 lettered
Public Works Commission Action: Not applicable for this request.
Environmental Status:
The recommended actions are categorically exempt from the California Environmental Quality Act, pursuant to City Council Resolution No. 4501.
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1. Subdivison Agreement between the City of Huntington Beach and Huntington Gateway Industrial II, LLC
2. Faithful Performance Bond No. 800043002
3. Labor and Material Bond No. 800043002
4. Monument Bond No. 800043002-M
5. Location Map