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ITEM #7 CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF FEBRUARY 17, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David R. Zamora, Community Development Director SUBJECT: Approval of Deferred Improvement Agreement with MTG Holding, LLC, for the Property Located at 2001 Key Street (Reference: File Index Number DAP -000-828). DATE: February 9, 2009 BACKGROUND: On November 17, 2008, MTG Holdings, LLC, (the "Applicant") filed a development application, File Index Number DAP -000-828, requesting approval to establish and "temporarily" operate a construction equipment storage facility on the property located at 2001 Key Street. The property is located within the Proposed Pellissier Ranch Specific Plan (PPRSP) area and the Applicant has been unable to use the site due to the recent Moratorium and conflicts with the proposed land use for the site. The Applicant is aware of the PPRSP and has stated their support of the City's on- going planning and vision for future development of the property. However, due to the current economy, the Applicant is requesting to utilize the property on a temporary basis in order to receive some income and with minimal expenditure for on-site and off-site improvements. On December 1, 2009, the Design Review Committee approved the proposed project contingent on approval by the City Council of a Deferred Improvement Agreement (the "Agreement") between the City and the Applicant. The Agreement was prepared by the City Attorney and requires the Applicant to install improvements under "Conditions of Approval" that are categorized as "Immediate", "On -Going", and "Deferred". Staff concurs and supports approval of the Agreement. ANALYSIS/DISCUSSION: The Applicant is required to enter into a Deferred Improvement Agreement as a Condition of Approval for the proposed project. The Agreement contains other Conditions of Approval that the Applicant is required to comply with, most notably the installation of improvements to the property before a Business Occupancy Permit (BOP) can be obtained. The Agreement lists on-site and off-site improvements that are "on-going", improvements that are to be constructed "immediately", and improvements that are to be "deferred" in accordance with the terms and conditions set forth in the Agreement. Approval of the Agreement allows the Applicant to use the property and receive income on a temporary basis until there is development interest in implementing the Pellissier Ranch Specific Plan. Staff and the Design Review Committee support the Applicant's proposal to use the property on a temporary basis.