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2021-12-15 City Council Item No. 12.1 Public Comment - Tabrizizadeh Family Appellant 1 Presentation Regular MEETING - Additional Meeting MaterialsAppeal to City Council December 15, 2021 Menifee Crossroads Plot Plan No. PLN 20-0273 Conditional Use Permit No. PLN 20-0272 Public Convenience and Necessity No. PLN 21-0211 Tentative Parcel Map No. PLN 20-0275 1 The Applicant Tabrizizadeh Family Ali, Tanya, and Amir Menifee Crossroads Successful Local Business Operator Community Stakeholder Not a Developer 2 Our Fear Menifee Crossroads 3 Our Presentation Menifee Crossroads Divided between: •Our Project Team Leader, Bart Pebbles of Caliber Retail Properties Group •Our Land Use Counsel, Tim Paone of Cox, Castle & Nicholson •Our Traffic Engineers, Jose Alire and Charlene So of Urban Crossroads 4 Constructing a Vision Menifee Crossroads Serving a Variety of Needs Retail Restaurants Financial & Personal Services Medical, Dental, Optometry 5 Our Vision An Amazing Experience Menifee Crossroads Anchored by A “Best-in-Class” Specialty Grocery 6 Menifee Crossroads An Economic Driver During Construction Community and Public Benefits Approx. $39 Million in Total Over 200 Onsite JOBS + “Multiplier Effect” Over $9 Million in Compensation Over $925 Thousand of DIF Over $775 Thousand of TUMF Over $1.2 Million in Connection & Drainage Fees 7 Menifee Crossroads An Economic Driver Operational Every Year Over $45 Million in Taxable Sales Over 346 Onsite JOBS + “Multiplier Effect” Over $10 Million in Compensation Over $734 Thousand of Property Tax 8 Menifee Crossroads Anticipated Timing If Approved Tonight WITHOUT Median Condition •April 2022: Groundbreaking •October 2022: Deliver Building Shells to Early Tenants Includes Specialty Grocer •November 2022 to March 2023: Early Tenants Complete Tenant Improvements •March to June 2023: Grand Opening for Early Tenants Includes Specialty Grocer •December 2023: Full Occupancy 9 Our Vision A Big Win for Menifee! Menifee Crossroads Help Us Make It a Reality 10 Menifee Crossroads Our Purpose Tonight Finding a Win-Win •Not here to point fingers –but serious differences to address •Won’t ask you to approve anything unsafe •Won’t threaten to sue you •But: Some facts need clarification Some issues must be viewed in a real-world context We want to find a Win-Win solution 11 Intersection & Road EnhancementsFirst Clarification Scope of Our Appeal Menifee Crossroads •Appeal Identified Several Objections to PC Approval •Only One is “Matter of Life and Death” for Project •We Will Only Address the Raised Median Issue •Not Pursuing the Others 12 Menifee Crossroads Second Clarification What is the Project Before You? OUR PROJECT IS NOT AN “ALTERNATIVE” 13 Menifee Crossroads •Staff decides what conditions of approval to recommend •Median included in MND “as part of the Project for analysis” (Page 9 of CC Staff Report) •After first PC meeting, Applicant withdrew agreement to median Second Clarification The Project Q: Whose Project is Before You? A: The Applicant’s Project WHICH DOES NOT INCLUDE A MEDIAN 14 Menifee Crossroads From the March 17, 2021, Traffic Study Second Clarification The Applicant’s Project 15 Menifee Crossroads Painted Median Second Clarification The Applicant’s Project 16 Menifee Crossroads Through / Left Lane & Split-Phased Signal Second Clarification The Applicant’s Project Urban Crossroads to Address 17 Menifee Crossroads “Pork Chop” Second Clarification The Applicant’s Project Urban Crossroads to Address 18 Menifee Crossroads Evaluated by MND (July 2021) Third Clarification Staff’s Proposed Condition of Approval 19 Menifee Crossroads Raised Median Third Clarification Staff’s Proposed COA 20 Intersection & Road EnhancementsFinal Clarification CEQA THAT IS SPLIT PHASING AT THE BRADLEY / NEWPORT INTERSECTION BUT STAFF IS NOT PROPOSING SPLIT PHASING!!! Menifee Crossroads What Did the MND Require? 21 Menifee Crossroads Does CEQA Analysis Cover Project without a Median? A: Yes •At Staff’s direction,MND only evaluated Project WITH median •For CEQA purposes,UC traffic analysis of March 17,2021,provides necessary CEQA evaluation •Submitted information,legal analysis,and suggested findings to supplement the MND •Makes CEQA analysis adequate for Project without median Final Clarification CEQA 22 Menifee Crossroads What We Are Requesting REMOVAL OF ALL RAISED MEDIAN REQUIREMENTS CONDITIONS 82B & 109B (TPM) AND 147B & 174B (PLOT PLAN) 23 Menifee Crossroads What About the Safety Issue? Staff Report’s Argument This is Staff Report’s Only “Safety” Assertion: “The storage capacity required for southbound movements is currently extending beyond the Newport Plaza full access driveway.” THIS IS TRUE “With the additional traffic volumes generated by the proposed Project,the condition will worsen and will not provide adequate gaps in the southbound traffic flow to allow for safe left-turn movements in and out of Newport Plaza.” THIS IS FALSE AND CONTRADICTED BY THE QUEUING STUDIES NO SUPPORTING DATA IS OFFERED BY STAFF PROJECT DESIGN FEATURES WILL PRECLUDE “WORSENING” Urban Crossroads Will Explain 24 Menifee Crossroads What About the Safety Issue? Studies Do Not Support Staff Report Four Traffic Studies (TIAs) December 2020 March 2021 May 2021 June 2021 Split Phasing / No Raised Median Raised Median 25 Menifee Crossroads What About the Safety Issue? Studies Do Not Support Staff Report Not One of Four Studies Says There is Increased Queuing DECEMBER 2020 QUEUING STUDIES SHOW: PROJECT TRAFFIC DOES NOT INCREASE QUEUING QUEUING PAST NEWPORT PLAZA DRIVEWAY WILL BE GREATLY REDUCED 26 Menifee Crossroads Very Intuitive What About the Safety Issue? How Can That Be? URBAN CROSSROADS TO EXPLAIN 27 Menifee Crossroads How We Got to This Point October 2020 Menifee Crossroads Application Filed: No Median 28 Menifee Crossroads How We Got to This Point Traffic Studies and Staff Comments •November 2020 Comments: “The driveway on Bradley for the existing Newport Plaza commercial site is an operation and safety concern.” •December 2020 TIA: Recommends a painted median and (ii) shows intersection functions efficiently without median (LOS). •January 2021 Comments:Restrict left outs from Driveway 2 due to “on-going issues with stacking from the traffic signal at Bradley/Newport.” •January 2021 Comments:Word “median” does not appear in Staff’s comments. •March 2021 TIA: Median not identified as needed. Shared through/left included. •March 2021 TIA: Split-phase signal and “pork chop” recommended. 29 Menifee Crossroads How We Got to This Point Traffic Studies and Staff Comments (cont’d) •April 2021 Comments: Staff required that raised median be added, even though: •Traffic analysis did not show a need for median •Queuing analysis did not show a need for median •Urban Crossroads had not recommended adding a median •June 2021 TIA: Median added/recommended at Staff’s insistence •To move Project forward, Applicant acquiesced •July 2021: MND prepared 30 Menifee Crossroads How We Got to This Point August 24, 2021 Newport Plaza States Its Opposition to Planning Commission “26900 Newport,Inc.is specifically opposed to the proposed modification of the Newport Plaza shopping center’s Bradley Road driveway that eliminates full access and restricts traffic to right in/right out only.Due to the existing right in/right out restrictions at the Newport Road driveway and the layout of the shopping center,the Bradley Road driveway is the only location where trucks servicing tenants can enter the site.The proposed modification would require trucks to go north on Bradley Road until finding a safe place to make a U-turn,which would be contrary to the City’s General Plan policies that delivery trucks “...must take the most direct route to and from the designated truck routes”(Circulation Element C-5:Good Movement) and may not even be feasible regardless.” 31 Menifee Crossroads How We Got to This Point October-November 2021 Planning Commission Meeting PC Approved with Raised Median Requirement Appeals Applicant appealed approval of its OWN Project. Newport Plaza appealed the approval of the Project. 32 Menifee Crossroads Anticipated Timing If Approved Tonight WITH Median Condition First Comes the Lawsuit •January 2022: CEQA Lawsuit Filed by Newport Plaza Specialty Grocer is Lost •January 2023: Trial •April 2023: Appeal Filed •Oct 2024: Appellate Court Ruling Then Comes Compliance with Court’s Direction •Nov 2024 -Nov 2025: Processing Issues Resolved / Project Approved 33 Menifee Crossroads Anticipated Timing If Approved Tonight WITH Median Condition Then Come the Business Challenges !!!!! •Specialty Grocer and other previously committed tenants long gone •Nov 2025 -Nov 2026: Depending on state of economy in November 2025, a minimum of one year to re-lease Only If Another Anchor Tenant is Found Can Construction Begin •April 2027:Groundbreaking •October 2027: Deliver Building Shells to Early Tenants •Nov 2027 -March 2028: Early Tenants Complete Tenant Improvements •March to June 2028: Grand Opening for Early Tenants •December 2028: Full Occupancy 34 Menifee Crossroads Anticipated Timing A Real-World Comparison W/MEDIAN CONDITION April 2027 October 2027 Nov 2027-Mar 2028 March 2028 –June 2028 Dec 2028 GROUNDBREAKING BUILDING SHELLS TI’S GRAND OPENING FULL OCCUPANCY W/O MEDIAN CONDITION April 2022 October 2022 Nov 2022 –Mar 2023 March 2023 –June 2023 Dec 2023 This is the Impact (Assuming a Comparable Anchor Can Be Found) 35 Menifee Crossroads And Then There’s Condition No. 1 Indemnification of City 36 Menifee Crossroads Indemnification of City Condition No. 1 •If Council requires raised median, Newport Plaza will sue •Win or lose, litigation delay will kill the Project •Makes no sense to litigate, much less pay City’s defense costs CANNOT AGREE TO CONDITION NO. 1 IF RAISED MEDIAN REQUIRED 37 Menifee Crossroads Indemnification of City Condition No. 1 •We will not move forward if the median condition remains. •We cannot indemnify the City against almost certain litigation. 38 Menifee Crossroads What are the Real Issues? Split-Phase Traffic Signals Two Lanes on Northbound Bradley 39 Menifee Crossroads The Real Issues 1. Split-Phase Signals •Staff:Queuing at Bradley southbound will worsen with Project traffic •What the Analysis Shows: Queuing behind “Keep Clear” area lessens with Project traffic •Jose Alire and Charlene So of UC will explain •Why different views? •Staff appears to dismiss study because it relies on split- phased signal 40 Menifee Crossroads The Real Issues 2. Two Travel Lanes on N/B Bradley •Staff:Left turn pocket on Bradley precludes two northbound lanes •Applicant:Only affects a short distance and, at worst is a temporary condition. •Why different views? •Two northbound travel lanes not needed until two left turn lanes from Newport or two N/B travel lanes on Bradley crossing Newport •Neither exists today and neither is required by Project •Staff wants Project to pay for long-term improvements not necessitated by Project •City has ability to approve a CIP and construct a median before Project is operational,with development paying its fair share 41 Menifee Crossroads Technical Background Jose Alire and Charlene So of Urban Crossroads 42 Intersection & Road EnhancementsDiscussion Items Traffic Analysis •Bradley Road Existing Conditions •What did the TIA study (Brief overview) •Bradley Road Applicant Configuration •Bradley Road Staff Proposed Configuration 43 Intersection & Road EnhancementsExisting Conditions Bradley Road 44 Intersection & Road EnhancementsExisting Conditions Bradley Road •Bradley Road –North of Newport Road is classifiedasasecondaryarterialpercirculationelement. •100’Right of Way,72’Curb to Curb and no raisedmedianisland. 45 Intersection & Road EnhancementsProject Traffic Studies What Was Evaluated •Existing Conditions •Project Traffic Generation •Traffic Distribution •Cumulative Traffic •Level of Service: •Staff:“The proposal doesn’t discuss the overall operational efficiency of the traffic signal.” •Recommended Improvements 46 Intersection & Road EnhancementsProject Traffic Studies Study Area 47 Intersection & Road EnhancementsProject Traffic Studies Does 63% = Longer Queuing? 48 Intersection & Road EnhancementsProject Traffic Studies Does 63% = Longer Queuing? NEWPORT BRADLEY 49 Intersection & Road EnhancementsIntersection and Road Enhancements Not “Essentially What Exists Today” (Staff Report) NOT ACCURATE 50 Intersection & Road EnhancementsIntersection and Road Enhancements Compare Applicant Plan to Staff Plan Applicant’s Proposed Project Staff’s Proposed Condition of Approval 51 Intersection & Road EnhancementsIntersection and Road Enhancements Compare Proposed Improvements •Both configurations provide acceptable Level of Service (LOS) as required by the City. •Curb to curb dimension are the same. •Applicant has 1 NB thru lane which opens to 2 lanes. •Median can still be accommodated in future with Applicant configuration. 52 The Dilemma Menifee Crossroads •Staff wants a median. •Newport Plaza opposes a median. That means a lawsuit. •Menifee Crossroads is caught in the middle. Would include median if no lawsuit. But lawsuit kills the Project. 53 Menifee Crossroads Is it a Solution to . . . Make the Applicant? •Pay 100% of the cost of a median for which its fair share is 25% or less •Be guaranteed no reimbursement for costs in excess of its fair share •Absorb the City and others’ approximately 75% fair share of the median cost •Attach a median to its Project when there is no true “safety” issue Kill the Project? Exactly what the Staff Report is asking you to do!!! 54 Menifee Crossroads “Win –Win” BEST / MOST LIKELY CASE •Approve Applicant’s Actual Proposal without Median “Best in Class” Grocer Comes to Menifee •Require Project to Pay Its Fair Share “When and If” •Separately Approve Raised Median as City Project (CIP) •Install Median as City Project by June 2023 •Menifee Crossroads Grand Opening June 2023 •Project Opens with Raised Median and No Split Phase Signals Exactly What Staff Wants!!! 55 Menifee Crossroads “Win –Win” WORST CASE What Could Go Wrong? •Median Delayed -Newport Plaza Sues the City CIP Project Ultimately, City Will Win •Menifee Crossroads Opens with Split Phase Signals At worst, a Temporary but Still Safe Condition Ultimately, City Will Get Its Median And the City Doesn’t Kill Menifee Crossroads 56 Menifee Crossroads “Win –Win” All you have to do is remove the median conditions from Staff’s recommendation 57 Menifee Crossroads Procedural Request Because: •Newport Plaza will sue if median is attached to our Project •We will lose our premiere tenant due to litigation delay •Project cannot absorb cost and delay of litigation •We will not pay to fight what should be the City’s fight We will not move forward if the median condition remains. If that appears to be the Council’s direction, we request the courtesy of an opportunity before a formal vote to WITHDRAW OUR APPLICATION. 58 Menifee Crossroads Procedural Request If that happens you’ve just kicked the can down the road. 59 Menifee Crossroads Support Good Development Thank You 60