CC - Item 4D - Second Reading and Adoption of Ordinance No. 1021 Rescinding the Approval of Zone Change 22-02 and Specific Plan Amendment 22-01ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BEN KIM, CITY MANAGER
DATE: FEBRUARY 27, 2024
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1021
RESCINDING THE APPROVAL OF ZONE CHANGE 22-02 AND
SPECIFIC PLAN AMENDMENT 22-01
SUMMARY
On February 13, 2024, the City Council approved for first reading Ordinance No. 1021,
rescinding the approval of Zone Change 22-02 and Specific Plan Amendment 22-01 by reverting
the zoning of 7849-7857 Garvey Avenue and 7900-7916 Virginia Street from Garvey Avenue
Specific Plan, Incentivized Mixed -Use (GSP-MU) back to its original zone, which is Garvey
Avenue Specific Plan (GSP) and Garvey Avenue Specific Plan, Residential/Commercial (GSP-
R/C) and determine the action is exempt from CEQA.
STAFF RECOMMENDATION
That the City Council approve the second reading, by title only, and adopt Ordinance No. 1021,
rescinding the approval of Zone Change 22-02 and Specific Plan Amendment 22-01 by reverting
the Zoning Map and Figure 3.1 of the Garvey Avenue Specific Plan of the subject properties
from Garvey Avenue Specific Plan, Incentivized Mixed -Use (GSP-MU) back to its original
zone, which is Garvey Avenue Specific Plan (GSP) and Garvey Avenue Specific Plan,
Residential/Commercial (GSP-R/C), located at 7849-7857 Garvey Avenue and 7900-7916
Virginia Street and determine the action is exempt from CEQA.
ENVIRONMENTAL ANALYSIS
Pursuant to California Environmental Quality Act ("CEQA") Section 15378 (a) a "project,"
under CEQA, means "the whole of an action, which has a potential for resulting in either a direct
physical change in the environment, or a reasonably foreseeable indirect physical change in the
environment." The whole of the action in this case is the adoption of an ordinance rescinding a
prior ordinance for a zone change and specific plan amendment. Therefore, this action is not
considered a "project' under CEQA and does not require environmental analysis as there is no
potential for a direct or reasonably foreseeable indirect physical change on the environment. In
addition, the action is exempt under CEQA guidelines 15061 (b)(3) (Common Sense Exemption)
and 15061 (b)(4) (Project Rejected or Disapproved).
AGENDA ITEM 4.1)
City Council Meeting
February 27, 2024
Page 2 of 2
FISCAL IMPACT —None
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Ericka Hernandez
City Clerk
Attachment A: Ordinance No. 1021
Attachment B: City Council Staff Report, Without Attachments, dated February 13, 2024
Attachment A
Ordinance No. 1021
ORDINANCE NO. 1021
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA,
RESCINDING THE APPROVAL OF ZONE CHANGE 22-02 AND
SPECIFIC PLAN AMENDMENT 22-01 BY REVERTING THE ZONING
MAP AND FIGURE 3.1 OF THE GARVEY AVENUE SPECIFIC PLAN OF
THE SUBJECT PROPERTIES FROM GARVEY AVENUE SPECIFIC
PLAN, INCENTIVIZED MIXED-USE (GSP-MU) BACK TO ITS
ORIGINAL ZONE, WHICH IS GARVEY AVENUE SPECIFIC PLAN (GSP)
AND GARVEY AVENUE SPECIFIC PLAN,
RESIDENTIAL/COMMERCIAL (GSP-R/C), LOCATED AT 7849-7857
GARVEY AVENUE AND 7900-7916 VIRGINIA STREET AND
DETERMINE THE ACTION IS EXEMPT FROM CEQA
WHEREAS, on July 11, 2023, the City Council adopted Ordinance No. 1016, approving
Zone Change 22-02 and Specific Plan Amendment 22-01 to amend the Zoning Map and Figure
3.1 of the Garvey Avenue Specific Plan by changing the zone of the subject properties from
Garvey Avenue Specific Plan (GSP) and Garvey Avenue Specific Plan, Residential/Commercial
(GSP-R/C)to Garvey Avenue Specific Plan, Incentivized Mixed -Use (GSP-MU) zone, for the
development of a seven -story, mixed-use development with 35,105 square feet of nonresidential
(commercial) use and 93 residential apartments, which includes 24 live/work units.
WHEREAS, on January 5, 2024, the project applicant Green Park Property LLC ("Green
Park") submitted a letter to the City, requesting that the City Council rescind the project approvals
for the Strathmore Garvey Mixed -Use Project due to economic reasons making the project
infeasible. According to their letter, which is included as Attachment "C" to the Ordinance, the
federal interest rate hikes in combination with the unstable and unpredictable economic
circumstances make the project financially infeasible at this time and have required the applicant
to re-evaluate their financial stability in the short- and medium-term.
WHEREAS, on February 1, 2024, seventy-six (76) notices were sent to property owners
within a 300 -feet radius from the subject property, in addition to notices posted in six (6) public
locations, on-site, published in the Rosemead Reader, and filed with the Los Angeles County
Clerk, specifying the availability of the application, plus the date, time, and location of the public
hearing for the rescission of Zone Change 22-02 and Specific Plan Amendment 22-01, pursuant to
California Government Code Section 65091(a)(3); and
WHEREAS, as a follow up to its request to rescind the project approvals Green Park has
agreed to continue to be bound by the Project's original Condition of Approval 9 and to defend,
indemnify and hold harmless the City from any claim to challenge the City's decision made in
response to Green Park's request to rescind the project approvals as stated in Attachment D to the
Ordinance; and
WHEREAS, the City Council held a duly noticed public hearing on February 13, 2024, to
consider the rescission request for Zone Change 22-02 and Specific Plan Amendment 22-01; and
WHEREAS, the City Council fully studied the rescission request for Zone Change 22-02
and Specific Plan Amendment 22-01, and considered all public comments; and
WHEREAS, the City Council, having final approval authority over this request, has
reviewed and considered all comments received.
THE CITY COUNCIL OF THE CITY OF ROSEMEAD HEREBY ORDAINS AS
FOLLOWS:
SECTION 1. The Council finds that the above recitals are true and are specifically
incorporated herein by this reference.
SECTION 2. The City Council HEREBY DETERMINES that the rescission of Zone
Change 22-02 and Specific Plan Amendment 22-01 is exempt from the California Environmental
Quality Act (CEQA). Pursuant CEQA Section 15378 (a) a "project," under CEQA, means "the
whole of an action, which has a potential for resulting in either a direct physical change in the
environment, or a reasonably foreseeable indirect physical change in the environment." The whole
of the action in this case is the adoption of an ordinance rescinding a prior ordinance for a zone
change and specific plan amendment. Therefore, this action is not considered a "project' under
CEQA and does not require environmental analysis as there is no potential for a direct or
reasonably foreseeable indirect physical change on the environment. In addition, the action is
exempt under CEQA guidelines 15061 (b)(3) (Common Sense Exemption) and 15061 (b)(4)
(Project Rejected or Disapproved).
SECTION 3. The City Council HEREBY RESCINDS Zone Change 22-02 and
AMENDS the Zoning Map to revert the zone of 7849-7857 Garvey Avenue (APNs: 5287-038-
018, -019,-020 and -029) from Garvey Avenue Specific Plan, Incentivized Mixed -Use (GSP-MU)
zone to Garvey Avenue Specific Plan (GSP) and 7900-7916 Virginia Street (APNs: 5287-038-030
and -033) from Garvey Avenue Specific Plan, Residential/Commercial (GSP-R/C) zone and as
shown in Attachment A to the Ordinance.
SECTION 4. The City Council HEREBY RESCINDS Specific Plan Amendment 22-01
and AMENDS Figure 3.1 of The Garvey Avenue Specific Plan to revert the zone of 7849-7857
Garvey Avenue (APNs: 5287-038-018, -019, -020 and -029) from Garvey Avenue Specific Plan,
Incentivized Mixed -Use (GSP-MU) zone to Garvey Avenue Specific Plan (GSP) and 7900-7916
Virginia Street (APNs: 5287-038-030 and -033) from Garvey Avenue Specific Plan,
Residential/Commercial (GSP-R/C) zone and as shown in Attachment B to the Ordinance.
SECTION 5. Severability. The City Council hereby declares that, should any provision,
section, subsection, paragraph, sentence, clause, phrase, or word of this Ordinance or any part
thereof, be rendered or declared invalid or unconstitutional by any final court action in a court of
competent jurisdiction or by reason of any preemptive legislation, such decision or action shall not
affect the validity of the remaining section or portions of the Ordinance or part thereof. The City
Council hereby declares that it would have independently adopted the remaining provisions,
sections, subsections, paragraphs, sentences, clauses, phrases, or words of this Ordinance
irrespective of the fact that any one or more provisions, sections, subsections, paragraphs,
sentences, clauses, phrases, or words may be declared invalid or unconstitutional.
SECTION 6. Publication. The City Clerk shall certify to the adoption of this Ordinance
and shall publish a summary of this Ordinance and post a certified copy of the full Ordinance in
2
the office of the City Clerk at least five days prior to the adoption and within 15 days after adoption
of the Ordinance, the City Clerk shall publish a summary of the Ordinance with the names of the
Council Members voting for and against the Ordinance. This Ordinance shall take effect thirty
(30) days after the date of its adoption.
SECTION 7. Effective Date. This Ordinance shall take effect thirty (30) days after its
adoption.
PASSED, APPROVED, AND ADOPTED this th day of , 2024.
ATTEST:
Ericka Hernandez, City Clerk
Attachments to Ordinance:
Steven Ly, Mayor
APPROVED AS TO FORM:
Rachel H. Richman, City Attorney
A. Amendments to the City's Zoning Map
B. Amendments to Figure 3.1 Zoning of the Garvey Avenue Specific Plan
C. Request for rescission from Green Park Property LLC
D. Green Park Property, LLC Agreement to be bound by the terms in Condition of Approval 9
and indemnify City from any claim challenging rescission, dated February 1, 2024
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF ROSEMEAD )
I, Ericka Hernandez, City Clerk of the City of Rosemead, County of Los Angeles, State of
California, hereby certify that Ordinance No. 1021 was first introduced at the regular meeting of
February 13, 2024, by first reading. Said Ordinance was approved and adopted by the City Council
of the City of Rosemead at a regular meeting held on the 27' day of February 2024, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
11
Ericka Hernandez, City Clerk
Attachment "A"
CITY OF cm of
SAN GABRIEL TEMPLE CITY
i
All
ji
Wl
a Y CM OF
EL MONTE
E
� u.ea.. • e - � ; � ; i
CITY OF
SOUTH EL MONTE
MONTE EY PARK 1 \ 1CITY OF 1� /cgFAna+A<rARK
5
CITY OF
mmmM LW
NOT TO SCPIE
s"w N-ly R¢sl], tial
- CI -MV Cmmwcal/1Muah
GASP C: Qd w Avenue
R-2 lhl M01RegE .l
M..u-
- Spe[ Man, Mes tal
R-3 MMrvm MUIEge ReyEentlal
�. RO FM�YN DeebMlrtY�I
Cprvnertal
p U day
�C-I Ib3tiMMCO Can at
PS Chen Spxe
'n
`--�C4 Manes
_ C-3 WSam COTTav[W
fAw: earvey A. Spam
Q
_ CY Pmoma Ca al
pa�
G -MuGm Avznuz
0.C-MVW Rest ..V
® Co n,.l M..M urt
C Central Bmress Ustrkt
_ 5pe[Iflc Mo. IMMOuvuE
Mvvebpnenl 6r ay
�
_ p yy-,
Mbnn l
no R ay Comda mm
BBI P-0 PeUesslwW Ofine
G0.5P0/S/P: Gane Averse
dMaY
CITY of R05WrWC
NI IgM IMuabfal
Sp "PW.Opai MH
Zoning Map
0 0.130.25 0.5 0.75
1
MAes
xrwn Aa�e.an.Mae�.a
won<�a�.umeaaeroaexu.aem ro..�.�x..aa�v..mow.a>rvw..mwamroe.w
w.... w.>�...i.. noec
MroM•ra.caaR�e.arowa. a.y..+eswnaaem uw.an.molwmenugar vll�.nrmwmn...a.onn.wywnr.w..woo.aoya+..m
5
Attachment `B"
Figure 3.1 Zoning
I
1
—1
CITY OF j CITY OF win
MONTEREY i ROSEMEAD mm
PARK I
I. ..... .........---------
r -..n
C a a P.
.,.....
�;Cj`� gqm«„7tlt.._ 'Lga�c nvWoc �t .. ♦ .e� •_ :.1' .:P �`a`. � � ^ _.�
.....
I j i
I
I
Rosemead Garvey Avenue Specific Plan —__c Boundar GSP-R/CI Garvey Avenue Specific Plan, /
7 Y Realderaial/Commemial
Zoning "—'— SWific Pian Area _ GSP-OS/P I Garvey Avenue Specific r
Legend - GSPIGarvey Avenue Flan, Open Spac Parking
Speufic Plan
- GSP-MU I Garvey Avenue Specific Plan.
Incentvaed MMed-Uaa
0 400 800 1200fM
3
Attachment C
Green Park Property LLC
120 E. Valley Blvd,
San Gabriel, Ca 91776
Tel: 626-307-0062
January 3, 2024
Mr. Stan Wong
Interim Director of Community Development
City of Rosemead
8838 East Valley Boulevard
Rosemead, CA 91770
Re: Request for Recission of Green Park, LLC's Project Approvals for the
Strathmore Garvey Mixed Use Project (7849-7857 Garvey Avenue & 7900-
7916 Virginia Street)
Dear Mr. Wong:
On June 27, 2023, the City Council of the City of Rosemead ("City Council") approved
Green Park Property, LLC's ("Green Park") proposed Strathmore Garvey Mixed Use Project
("Project"). Specifically, the City Council approved a Zone Change and Specific Plan
Amendment for the project. Unfortunately, due to a changing economic landscape making
construction and operation of the project financially infeasible, Green Park has recently
determined that it cannot move forward with the Project. As such, Green Park respectfully
requests that the Rosemead City Council rescind its approval of the Project and related
entitlements, so that Green Park may allocate its resources elsewhere and potentially find an
alternative use for the parcel that would be more economically -viable.
The Federal Reserve's recent string of federal interest rate hikes, combined with the
United States' (and, in particular, California's) persistently unstable and unpredictable economic
circumstances have required that Green Park undertake a reevaluation of its asset risk profile, in
order to assure the company's financial stability in the short- and medium-term. These regional,
national, and international economic conditions have made Green Park's financial landscape
increasingly challenging. In addition, other ongoing projects have tightened Green Park's cash
flow, and have required Green Park to reconsider its resource allocation.By reevaluating Green
Park's priorities and redirecting resources to more viable ventures, Green Park aims to navigate
these economic uncertainties and position itself for future success.
402646529.3
As such, we are formally requesting that the Community Development Department place
rescission of the Project'scurrent approvals on the next available City Council agenda. This
decision is a proactive response to the current complex economic environment, and seeks to
safeguard Green Park's financial stability and ensure the responsible allocation of our resources.
Green Park sincerely appreciates the City of Rosemead and all of its officers and
employees for their assistance during our approval process. We look forward to future
opportunities to invest in this community, when conditions allow us to do so.
Please let us know if you have any questions or concerns that we may help address.
Thank you for your consideration of this matter.
Sincerely,
Ngo
Managing
Green Park Property LLC.
402646529.3
Attachment D
Green Park Property LLC
120 E. Valley Blvd,
San Gabriel, Ca 91776
Tel: 626-307-0062
February 1, 2024
Mr. Stan Wong
Interim Director of Community Development
City of Rosemead
8838 East Valley Boulevard
Rosemead, CA 91770
Re: Indemnification Agreement re Strathmore Garvey Mixed Use Project
Dear Mr. Wong:
Pursuant to the City's request, this letter memorializes that Green Park Property LLC
agrees to continue to be bound by the Indemnification Condition associated with the approval of
the Strathmore Garvey Mixed Use Project ("Project") regardless of the recission of the
associated approvals. Green Park Property LLC also agrees to indemnify the City in any claims
related to the recission of the approvals, on the same terms as were established by the
Indemnification Condition of the original approvals.
Sincerely,
Gerard Ngo
Managing
Green Park Property LLC
402696529.3
Attachment B
City Council Staff Report Only
Dated February 23, 2024
ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BEN KIM, CITY MANAGER
DATE: FEBRUARY 13, 2024
SUBJECT: PUBLIC HEARING TO RESCIND THE CITY COUNCIL'S APPROVAL
ON ZONE CHANGE 22-02 AND SPECIFIC PLAN AMENDMENT 22-01 -
7849-7857 GARVEY AVENUE AND 7900-7916 VIRGINIA STREET AS
REQUESTED BY THE APPLICANT GREEN PARK PROPERTY LLC
AND DETERMINE THE ACTION IS EXEMPT FROM CEQA
SUMMARY
On July 11, 2023, the City Council adopted Zone Change 22-02 and Specific Plan Amendment
22-01, which changed the zone of the subject properties from Garvey Avenue Specific Plan
(GSP) and Garvey Avenue Specific Plan, Residential/Commercial (GSP-R/C) to Garvey Avenue
Specific Plan, Incentivized Mixed -Use (GSP-MU) zone, for the development of a new
residential/commercial mixed-use development. On January 5, 2024, the applicant, Green Park
Property LLC, submitted a letter to the City, requesting that the City Council rescind the
approval of Zone Change 22-02 and Specific Plan Amendment 22-01.
ENVIRONMENTAL ANALYSIS
Pursuant to California Environmental Quality Act ("CEQA") Section 15378 (a) a "project,"
under CEQA, means "the whole of an action, which has a potential for resulting in either a direct
physical change in the environment, or a reasonably foreseeable indirect physical change in the
environment." The whole of the action in this case is the adoption of an ordinance rescinding a
prior ordinance for a zone change and specific plan amendment. Therefore, this action is not
considered a "project' under CEQA and does not require environmental analysis as there is no
potential for a direct or reasonably foreseeable indirect physical change on the environment. In
addition, the action is exempt under CEQA guidelines 15061 (b)(3) (Common Sense Exemption)
and 15061 (b)(4) (Project Rejected or Disapproved).
DISCUSSION
On July 11, 2023, the City Council adopted Ordinance No. 1016 (see Attachment "A") for the
Strathmore Garvey Mixed -Use Project which approved the rezoning of the project site from GSP
AGENDA ITEM 4.A
City Council Meeting
February 13, 2024
Page 2 of 3
and GSP-R/C to GSP-MU for the construction of a new mixed-use development. The project
consisted of a seven -story, mixed-use development with 35,105 square feet of nonresidential use
and 93 residential apartments (including 24 live/work units), 208 parking spaces, new
landscaping, and private and common open space.
On January 5, 2024, Green Park Property LLC submitted a letter to the City requesting that the
City Council rescind the project approvals for the Strathmore Garvey Mixed -Use Project due to
economic reasons making the project infeasible. According to their letter, which is attached as
Attachment "C", the Federal interest rate hikes in combination with the unstable and
unpredictable economic circumstances make the project financially infeasible at this time and
have required the applicant to re-evaluate their financial stability in the short- and medium-term.
Green Park Property LLC has also agreed to be bound by Condition of Approval 9 even if the
Project approvals are rescinded by the Council as well as to indemnify the City for actions
related to the rescission. (See Attachment "D")
The rescission of the project would revert the zone of the properties from GSP-MU back to its
original zone, which are GSP and GSP-R/C. The GSP is a commercial zoning district, which
allows a diverse range of retail, service, and office businesses. The GSP-R/C zoning district
allows for residential or commercial development.
STAFF RECOMMENDATION
That the City Council:
1. Conduct a public hearing and receive public testimony;
2. Determine the item is exempt from CEQA as stated in the staff report; and
City Council Meeting
February 13, 2024
Page 3 of 3
3. Introduce the first reading, by title only, Ordinance No. 1021 (Attachment `B"),
approving the rescission of Zone Change 22-02 and Specific Plan Amendment 22-01.
FISCAL IMPACT — None
STRATEGIC PLAN IMPACT — None
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process, which includes a
300' radius public hearing notice to seventy-six (76) property owners, publication in the
newspaper on February 1, 2024, postings of the notice at the six (6) public locations, and on the
subject site.
Prepared by:
Cf V
Annie Lao
Associate Planner
Reviewed by:
_14�
Lily Vkenzuela
Planning and Economic Development Manager
Submitted by:
I wk
Stan Wong
Interim Director of Community Development
Attachment A: Ordinance 1016
Attachment B: Ordinance 1021
Attachment C: Green Park Property LLC's Letter of Rescission Request
Attachment D: Green Park Property LLC's agreement to be bound by Condition of Approval 9