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  Agenda Item   12.    
Planning Commission
Meeting Date: 01/28/2020  

Subject:
MODIFICATION TO DEVELOPMENT AGREEMENT NO. DA 88-2 – A REQUEST TO MODIFY THE MAXIMUM LIMITATION (33%) OF THE ALLOWABLE SQUARE FOOTAGE OF ADMINISTRATIVE AND PROFESSIONAL OFFICE USES FOR THE EMBASSY RETAIL COURT.
REQUEST
A request to amend the existing Development Agreement specific to the percentage of allowed professional and administrative office uses in the Embassy Retail Court.
RECOMMENDATION
Staff recommends the Planning Commission approve the draft Resolution recommending adoption of the ordinance to the City Council.
BACKGROUND/DISCUSSION
BACKGROUND
Development Agreement (DA) No. DA 88-2 (see Attachment 5) was approved in 1988 to allow for the construction of the Embassy Suites Hotel and Retail Court.  Under this approval, the retail court was envisioned to provide space for commercial retail and service uses.  Administrative and professional office uses were permitted but were initially limited to 15% of the building (approximately 5,700 square feet) to help achieve that goal.  In 1992, the DA was amended to increase the maximum percentage from 15% to 33% (approximately 12,540 square feet) and to allow medical and dental uses subject to a Conditional Use Permit.    

The property is zoned  C-C(PD) - Regional Commercial (Precise Development).  Commercial retail, service and professional office are permitted uses under this zoning classification.  For additional context to the site and adjacent zoning classifications, see Attachment 1 – Technical Background. 
 
DISCUSSION
Embassy Retail Court has had various uses over the years including billiards, fitness, salon, office and other retail and service uses.  While the Embassy Retail Court has been successful over the years, marketing and leasing of the project under these limitations (maximum 33% office) over time has been a challenge due to economic trends combined with an increase in available retail space in the immediate area (Brea Mall, Brea Marketplace, etc.).  The property owner has struggled with this maximum allowable office square footage which has helped lead to a number of vacancies within the building. 
 
The building is currently 63% leased (see Attachment 6 & 7 – Project Description, Current Tenant List and Floor Plan) and has reached the maximum leased office space allowed under DA 88-2.  Removal of this limitation would not preclude retail or service uses but would allow property management additional options for tenants.  The change may also serve to offset parking demand at the site as office uses typically require less parking -1 parking stall for every 250 square feet of office use versus 1 stall per 200 square feet of retail use.  Potential medical and dental office users will continue to be reviewed under a Conditional Use Permit (as required by DA 88-2) to assure that their specific parking demands may be met at the site. 
 
Staff does not anticipate the removal of this limitation would negatively affect the site and would continue to provide opportunities for retail and services uses at the site. 
ENVIRONMENTAL ASSESSMENT
The proposed project as submitted is exempt from the requirement of the California Environmental Quality Act (CEQA) pursuant to Section 15061 (b)(3) of Title 14, Chapter 3, Article 19 of the California Code of Regulations.
 
RESPECTFULLY SUBMITTED
Jennifer A. Lilley, AICP, City Planner
Prepared by: Maribeth Tinio, Senior Planner
  
Attachments
1. Technical Background
2. Vicinity Map
3. Public Hearing Notice
4. Draft Resolution
5. Development Agreement No. DA 88-2
6. Project Description
7. Floor Plan

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