TECHNICAL CLEAN-UP; RELEASE OF COVENANT RESTRICTING SALE OF 2200 EAST GARVEY AVENUE
GENERAL CEQA EXEMPTION
APPLICANT: Charles Smyth (Market Street Development, LLC)
LOCATION: 2200 East Garvey Avenue South
REQUEST: That the Planning Commission authorize the Community Development Director or his/her designee to execute a “Release of Restrictive Covenant” to relinquish an obsolete restrictive covenant that was recorded on the property at 2200 East Garvey Avenue South pursuant to 1995 planning approvals for a project that is permanently closed and no longer exists.

On November 25, 2025, the Planning Commission approved a Precise Plan (PP), Conditional Use Permit (CUP), and Tree Removal Permit (TP) to develop a new adult day care facility (“Project”) located at 2200 East Garvey Avenue South (the “Project Site”). In the course of escrow, it was discovered that the Project Site is encumbered with an outdated “restrictive covenant” that holds any sale of the Project Site bound to the sale of an adjacent parcel (“1995 Covenant”). In other words, the 1995 Covenant ties any sale of the Project Site to the sale of a neighboring parcel. This was the result of old planning approvals for a restaurant project that permanently closed in April 2024.
 

On November 22, 1994, the Planning Commission approved Conditional Use Permit 471 for a restaurant operation at the Project Site. The CUP for the restaurant included a condition requiring recordation of the 1995 Covenant “to hold two more parcels as one” for purposes of ensuring an adequate restaurant parking area. However, the restaurant project is now permanently closed, and the 1995 Covenant no longer serves any practical purpose. In fact, the 1995 Covenant now poses an obstacle to the Project Site sale and impedes development of the adult day care Project approved by Commission on November 25, 2025. Accordingly, the Project developer, Market Street Development, LLC, has requested the City to release the 1995 Covenant and prepared that “Release of Restrictive Covenant” attached hereto as Attachment No. 1.

Because the 1995 Covenant was imposed via Planning Commission adoption of CUP 471, authority to relinquish the Covenant likewise rests with the Commission.

Staff recommends that the Planning Commission authorize the Community Development Director or his/her designee to execute a “Release of Restrictive Covenant” to relinquish an obsolete restrictive covenant that was recorded on the property at 2200 East Garvey Avenue South.

Technical “clean up” of the Project Site’s record of title is not subject to the California Environmental Quality Act (CEQA) because it does not qualify as a “project” under CEQA.  The State CEQA Guidelines provide that “[a]n activity is not subject to CEQA if … the activity is not a project as defined in Section 15378.”  (State CEQA Guidelines, § 15060(c).)