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Staff ReportSTAFF REPORT Hearing Date: August 7, 2012 TO: Mayor & City Council E IDIAN~-- FROM: Sonya Watters, Associate City Planner I D A H O 208-884-5533 SUBJECT: David Kleiner Property -MDA-12-006 I. SUMMARY DESCRIPTION OF APPLICANT'S REQUEST The applicant, CarMax Auto Superstores West Coast, Inc., requests approval to modify the development agreement (MDA) for the Kleiner property to allow "vehicle repair, major or minor" and "vehicle sales or rental and service" as principal permitted uses and a "vehicle washing facility" as an accessory use on the project site only. Additionally, the requirement for fencing to be provided along the west edge of the street buffer on the east boundary of the site adjacent to Venture Subdivision is proposed to be modified to only require fencing north of E. Venture Place. See Section IXAnalysis for more information. II. SUMMARY RECOMMENDATION Staff recommends approval of the proposed MDA with the additional provisions recommended by Staff included in Exhibit A. III. PROPOSED MOTION Approval After considering all staff, applicant and public testimony, I move to approve File Number MDA-12-006 as presented in the staff report for the hearing date of August 7, 2012, with the following modifications: (Add any proposed modifications.) Ifurther move to direct Legal Department Staff to prepare an amended Development Agreement for this property that reflects the changes noted in Exhibit A. Denial After considering all staff, applicant and public testimony, I move to deny MDA-12-006 as presented during the hearing on August 7, 2012, for the following reasons: (You should state specific reasons for denial.) Continuance I move to continue File Number MDA-12-006 to the hearing date of (insert continued hearing date here) for the following reason(s): (You should state specific reason(s) for continuance.) IV. APPLICATION AND PROPERTY FACTS A. Site Address/Location: The subject property is located on the northeast corner of E. Fairview Avenue & N. Records Road, in the southwest'/4 of Section 4, Township 3N., Range lE. B. Owner(s): Kleiner Trust P.O. Box 31682 Seattle, WA 98103 Kleiner, David Property MDA-12-006.doc Page 1 C. Applicant: CarMax Auto Superstores West Coast, Inc. 12800 Tuckahoe Creek Parkway Richmond, VA 23238 D. Representative: Jake Hertz CenterPoint Integrated Solutions, LLC 1240 Bergen Parkway, Suite A-250 Evergreen, CO 80439 E. Applicant's Statement/Justification: Please see applicant's narrative for this information. V. PROCESS FACTS A. The subject application is for a development agreement modification. A public hearing is required before the City Council on this matter, consistent with Meridian City Code Title 11, Chapter 5. B. Newspaper notifications published on: July 16, and 30, 2012 C. Radius notices mailed to properties within 300 feet on: July 12, 2012 D. Applicant posted notice on site by: July 27, 2012 VI. LAND USE A. Existing Land Use(s) and Zoning: This site is currently vacant and lies within the C-G (General Retail & Service Commercial) zoning district. B. Character of Surrounding Area and Adjacent Land Use and Zoning: 1. North: Kleiner Memorial Park, zoned C-G 2. East: Residential properties in Venture Subdivision, zoned RUT in Ada County; and a bank, zoned C-G 3. South: Fairview Avenue & retail and restaurant uses in Crossroads Shopping Center, zoned C-G 4. West: Mix of commercial uses (CenterCal) and vacant land conceptually approved for office & retail uses (west'h of Kleiner property), zoned C-G C. History of Previous Actions: • The subject property is one of three properties included in the Meridian Town Center annexation (AZ-07-012). Development of the subject property is governed under development agreement Instrument No. 109009630. D. Utilities: 1. Public Works: No concerns E. Physical Features: 1. Canals/Ditches Irrigation: NA 2. Hazards: Staff is not aware of any hazards that exist on this property. 3. Flood Plain: This property does not lie within the floodplain or floodway. Kleiner, David Property MDA-12-006.doc Page 2 VII. COMPREHENSIVE PLAN POLICIES AND GOALS This property is designated "Mixed Use -Regional" (MU-R) on the Comprehensive Plan Future Land Use Map. The purpose of this category is to provide a mix of employment, retail, and residential dwellings and public uses near major arterial intersections. The intent is to integrate a variety of uses together, including residential, and to avoid predominantly single use developments such as a regional retail center with only restaurants and other commercial uses. Developments should be anchored by uses that have a regional draw with the appropriate supporting uses. See Chapter 3 of the Meridian Comprehensive Plan, pages 30-31 for more information. The subject property, zoned C-G, is located a half mile east of the Eagle & Fairview intersection, both major arterial streets. The applicant proposes to develop the eastern half of the subject property with a vehicle sales lot, which is a principal permitted use in the C-G district. The MU-R designation allows such a use; however, does anticipate a mix of uses. A mix of uses is not proposed on this property. However, in looking at the overall MU-R designated area to the north (south of the South Slough) within a half mile of the site, a mix of uses does exist or is in the development process. The mix of uses in this area consist of amulti-family development (Regency at River Valley), currently in the construction process north of the Meridian Town Center (MTC) project on E. River Valley Road, consisting of 240 residential units. Another multi-family project is planned directly to the east of the "power center" on the north end of the MTC project overlooking Kleiner Memorial Park. A mix of employment uses consisting of retail, restaurant and office uses are planned and under construction within the MTC project, north and west of this site. Because the proposed use contributes to the mix of uses in this area, Staff finds it to be an appropriate use in conjunction with other uses existing and planned for this area. VIII. UNIFIED DEVELOPMENT CODE A. Purpose Statement: Per UDC 11-2B-1, the purpose of the commercial districts is to provide for the retail and service needs of the community in accord with the Meridian Comprehensive Plan. Four districts are designated which differ in the size and scale of commercial structures accommodated in the district, the scale and mix of allowed commercial uses, and the location of the district in proximity to streets and highways. B. Schedule of Use: Unified Development Code (UDC) 11-2B-21ists uses that are principal permitted uses, conditional uses, and prohibited uses in the C-G zoning district. The applicant proposes the following uses on the property: vehicle sales or rental and service; vehicle repair, major or minor; and a vehicle washing facility. These uses are all listed as principal permitted uses in the C-G zoning district. Specific Use Standards are listed in UDC 11-4-3 for each of these uses. IX. ANALYSIS A. Analysis of Facts Leading to Staff Recommendation: The request is for a modification to the Development Agreement (DA) for the Kleiner property. The proposed modification includes a detailed development plan and changes to the text of the recorded agreement specific to the project site (see Exhibit A). Proposed Use: The applicant proposes to develop the eastern half of the site with apre-owned automobile dealership (CarMax). Along with vehicle sales, vehicle service, reconditioning, carwash, underground fuel storage and dispensing, and wholesale auctions will also exist and take place on this site. The carwash and fuel dispensing will be non-public. The specific uses requested for approval are as follows: vehicle sales or rental and service; vehicle repair, major or minor; and a vehicle washing facility. Kleiner, David Property MDA-12-006.doc Page 3 The applicant's narrative states that CarMax does not use flags, balloons, placards in open car hoods, painted window lettering, or the like in its marketing and there are no outdoor loudspeakers. Lighting will be downcast and reduced after hours. Staff recommends provisions be included in the amended DA to ensure the business is operated as represented (see Exhibit A.6). History: When this site was annexed as part of the Meridian Town Center development, CenterCal Properties submitted a conceptual development plan for the portion of the site they intended to develop on the northeast corner of Eagle & Fairview along with a rough concept plan showing how the remainder of the property being annexed might develop in the future. The remainder of the property consisted of the 60-acre park site and the Kleiner Family Trust property in which this site is located. The concept plan for this site depicts 72,800 square feet (s.£) of residential area within (2) two-story structures and 110,000 s.f. of office area within (2) three-story structures and (1) single-story structure. This plan was deemed to be consistent with the MU-R FLUM designation for the site and the goals of the Comprehensive Plan. The owner and/or future developer of this property was not required to develop the site consistent with the concept plan as it was understood that future development would depend on future ownership as well as market trends at the time of development. A detailed site plan was required to be submitted at the time of development and approved by the Director. Approval of the plan is based on compliance with the applicable terms of the DA and all UDC provisions as to matters not otherwise specified by the DA. Site Plan: The CarMax site is proposed on the eastern half of the Kleiner property located on the northeast corner of Fairview Avenue & Records Road. The property currently consists of (1) 21+/- acre parcel. The property has been illegally divided into two parcels by Record of Survey #8394. In order for the site to be eligible for building permits, the property needs to be subdivided in accord with UDC 11- 6B. The applicant has submitted a detailed site plan with this application that depicts sales and service buildings and anon-public enclosed carwash along with associated access drives, parking and display areas, and landscaped areas. Landscaped areas consist of approximately 3 acres or 26% of the site. A decorative 6-foot tall masonry wall that coincides with the design of the buildings is proposed to enclose and screen the rear portion of the site where a staging area and carwash is located. Access/Streets: With development of this site, right-of--way is proposed to be dedicated to construct the remainder of Elden Gray Lane between Records &Venture. A new internal north-south drive dividing the Kleiner parcel will also be constructed. Primary access to the site will be from this internal drive with a gate restricted secondary access on Venture Street for test drives only and will be restricted to right-out and left-in traffic only. Direct access to Fairview Avenue is not proposed or approved with this application. Staff recommends a provision is included in the amended DA that prohibits direct access to Fairview Avenue per UDC 11-3A-3 and as recommended by ACHD. To further limit traffic on Venture, the applicant proposes to instruct employees & delivery drivers to enter & leave the site via Records Road. Small directional signs are also proposed to be installed at the test drive exit to Venture indicating "right turn only"; at the northwest corner of Fairview & Venture indicating "CarMax Customers turn right at Records Road"; and at the southeast corner of the new internal north-south drive with a direction arrow pointing toward Records Road (left) indicating "CarMax Customers EXIT to Fairview Avenue." Staff recommends provisions are included in the amended DA as such (see Exhibit A.6). Hours of Operation: The applicant's narrative states that sales areas are typically open to the public Monday thru Saturday from 9:00 am to 9:00 pm with limited hours on Sundays. Service areas are typically open to the public Monday thru Friday from 7:30 am to 6:00 pm. The C-G district does not restrict the hours of operation. Staff does not object to the hours of operation proposed. Kleiner, David Property MDA-12-006.doc Page 4 Welcome to Meridian Sign: The applicant has also designed and offered to construct at their expense a Welcome to Meridian monument sign on the southeast corner of the site (see Exhibit A.5). Staff recommends acceptance of the applicant's generous offer and is including a new provision in the DA for the applicant to coordinate with staff on the design of the sign. The sign should be installed prior to issuance of Certificate of Occupancy. Water & Sewer Service: The applicant is financially responsible for'h the cost of extending sanitary sewer and water in Elden Gray Lane and fully responsible for the extension of sanitary sewer and water in N. Venture Street. The applicant is currently working with the City on a routing and financing proposal to satisfy this requirement. Applicant Proposed Text Changes to DA: The applicant's proposed changes to the DA are as follows: 5.1.11.B - "Owner shall construct a 20' wide landscape buffer along the west side of Venture Street beginning at a point that is due west of the west boundary of the Venture Subdivision that is zoned residential and that lies closest to Fairview Avenue, and, except for access streets or drives from Venture Street to the East Parcel, shall continue to the north boundary of the East Parcel. This buffer includes the 10 foot wide street landscape buffer required by UDC 11-3B-7 and 11-2B-3, plus an additional 10' buffer width, with fencing on the west edge of such buffer along that part of the Project Site situated north of E.Venture Place, and a sidewalk or pathway allowing access to the Kleiner Memorial Park. Staff does not object to the applicant's proposal; however, staff recommends a berm be constructed within the street buffer along the eastern boundary of the site adjacent to Venture where no fencing/wall is proposed and where the site is adjacent to a residential use. Landscaping shall be installed consistent with the standards listed in UDC 11-3B-9C, Landscape Buffers to Adjoining Uses. Exhibit C -Permitted Uses The applicant proposes to add "vehicle repair, major or minor", "vehicle sales or rental and service", and "vehicle washing facility" to the proposed use table as permitted uses for the project site only (as depicted on the vicinity map in Exhibit A.1). These uses are only proposed for the project site. In order to develop such a use on any of the other property governed by the subject DA, a modification to the agreement would be required. Staff does not object to the applicant's proposed modification to the use table. In summary, staff recommends approval of the applicant's proposed changes along with additional provisions as mentioned above and listed in Exhibit A.6. X. EXHIBITS A. Drawings/Other 1. Vicinity Map 2. Previously Approved Conceptual Development Plan (dated: 9/27/07) 3. Proposed Site Plan (dated: 7/3/12) & Landscape Plan (dated: 3/26/12) 4. Proposed Building Elevations (dated: 7/5/12) 5. Proposed Monument Sign for City of Meridian 6. Applicant Proposed & Staff Recommended Changes to Development Agreement Kleiner, David Property MDA-12-006.doc Page 5 Exhibit A.1: Vicinity Map l:-:i:::....L1 f ~ r-~ _ ~.. 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Jt . . rune n,:v.w ,a an wr_.~, ' e Pi _. -f+..~.. ... .:. r -__ ,3 Kleiner, David Property MDA-12-006.doc Page 9 Exhibit A.4: Proposed Building Elevations (dated: 7/5/12) Kleiner, David Property MDA-12-006.doc Page 10 RENDERING RENDERING Kleiner, David Property MDA-12-006.doc Page 11 Exhibit A.5 -Proposed Monument Sign for City of Meridian ~,,: ~ rb ,,~ :x ~`~ Kleiner, David Property MDA-12-006.doc Page 12 Exhibit A.S: Applicant Proposed & Staff Recommended Changes to Development Agreement Applicant's proposed changes are noted in strike-out/ underline format; sta, ff''s recommended changes are noted in bold strike-out/underline format. Staff has included the entire document, including the portions not proposed to change (shown in regular type), for Council 's benefit. FIRST ADDENDUM TO DEVELOPMENT AGREEMENT PARTIES: 1. City of Meridian 2. CarMax, Inc. 3. David E. Kleiner, as Trustee of The 2008 Kleiner Family Trust U/T/D March 4, 2008, and as Trustee of The 2008 Kleiner Family Trust II U/T/D July 29, 2008 THIS FIRST ADDENDUM TO DEVELOPMENT AGREEMENT is dated this day of 2012, ("FIRST ADDENDUM"), by and between City of Meridian, a municipal corporation of the State of Idaho ("CITY"), CarMax, Inc., a Delaware corporation ("CARMAX"), and David E. Kleiner, as Trustee of The 2008 Kleiner Family Trust U/T/D March 4, 2008, and as Trustee of The 2008 Kleiner Family Trust II U/T/D July 29, 2008 (collectively, "KLEINER"). CarMax and Kleiner shall hereafter jointly be called OWNERS/DEVELOPERS or OWNER. RECITALS A. City and Kleiner entered into that certain Development Agreement that was recorded on January 29, 2009 in the real property records of Ada County as Instrument No. 109009630 ("DEVELOPMENT AGREEMENT"). B. CarMax plans to develop a portion of the Property, legally described on the attached Exhibit A ("PROJECT SITE"). C. City and Owners/Developers now desire to amend the Development Agreement, which terms have been approved by the Meridian City Council in accordance with Idaho Code Section 67-6511. NOW, THEREFORE, in consideration of the covenants and conditions set forth herein, the parties agree as follows: 1. Section 5.11.B of the Development Agreement shall be amended as follows: Owner shall construct a 20' wide landscape buffer along the west side of Venture Street beginning at a point that is due west of the west boundary of the Venture Subdivision that is zoned residential and that lies closest to Fairview Avenue, and, except for access streets or drives from Venture Street to the East Parcel, shall continue to the north boundary of the East Parcel. This buffer includes the 10 foot wide street landscape buffer required by UDC 11-3B-7 and 11-2B-3, plus an additional 10' buffer width, with fencing on the west edge of such buffer along t~part of the Project Site situated north of E Venture Place, and a sidewalk or pathway allowing access to the Kleiner Memorial Park. A berm shall be constructed within the street buffer aloe the eastern boundarv of the site adjacent to Venture where no fencing/wall is proposed and where the site is adjacent to a residential use. LandscapinE shall be installed in this area consistent with the standards listed in UDC 11-3B-9C, Landscape Buffers to Adjoining Uses Kleiner, David Property MDA-12-006.doc Page 13 Add the following provision: "The use of flags, balloons, placards in open car hoods, painted window lettering, or the like for marketing purposes, and outdoor loudspeakers on the site shall be nroh~bited. Additionally all lighting on the site shall comply with the standards listed in UDC 11-3A-11 and be reduced after hours " Add the following provision: "The subject property shall be subdivided in accord with UDC 11 6B prior to issuance of any building permits for the site " Add the following provision: "In an effort to limit traffic on N. Venture Street the applicant shall instruct employees & delivery drivers to enter & exit the site via Records Road Small directional signs shall also be installed at the test drive exit to Venture indicating "right turn only", at the northwest corner of Fairview & Venture indicating "CarMax Customers turn right at Records Road"• and at the southeast corner of the new internal north south drive with a direction arrow pointing toward Records Road (left) indicating "CarMax Customers EXIT to Fairview Avenue." Add the following provision: "The applicant. at their own expense, shall install a Welcome to Meridian monument sign on the site at the northwest corner of N Venture Street & E Fairview Avenue. The applicant shall coordinate with staff on the design of the sign The sign shall be installed prior to issuance of Certificate of Occupancy " Add the following provision: "The applicant is financially responsible for '/Z the cost of extending sanitary sewer and water in Elden Gray Lane and -fully responsible for the extension of samtarv sewer and water in N Venture Street " Add the following provision: "Direct access to E. Fairview Avenue is prohibited unless otherwise approved by the City of Meridian and ACRD " 2. Exhibit C of the Development Agreement shall be amended as follows: EXHIBIT C Permitted Uses Table of Proposed Uses Code Type Use P P P P P C A/C Animal care facility1 Artist studio1 Arts, entertainment or recreation facility, indoors1 Building material, garden equipment and supplies1 Church or place of religious worship1 Civic, social or fraternal organizations1 Daycare center1 Retail Office Residential Other Comments X X X X X X X X home daycare is residential; otherwise daycare is office. Kleiner, David Property MDA-12-006.doc Page 14 Code Type Use Retail Office Residential Other Comments Home daycare is actually daycare, family or daycare, A/C Drive-through X group. establishment1 P Education institution, X private 1 P Education institution, X public1 C Equipment rental, sales, X Includes home/household; and seroicesl personal use, and office equipment businesses; excludes farm, industrial, and heavy equipment or machinery businesses a bank is retail; a mortgage or security broker or other financial institution is office P Financial institution1 X X P Flex space1 X P Fuel sales facility) X P Healthcare or social X services C Hospital1 X P/C Hotel and motel1 X P Industry, information1 X P Laundromat) X P Laundry and dry X cleaning C Multi-family X development P Nursery or urban farm1 x P Parking facility X We generally consider this P Parks, public and private accessory to the use. X P Personal or professional X service P Public orquasi-public X X Classification depends on use1 general nature of use. P Restaurant X P Retail store X P Vehicle repair, major or X Project Site only minor P Vehicle sales or rental X Project Site only. and service A Vehicle washing facility' X Project Site only P Vertical integrated ' X Housing portion. Integrated residential project non-residential uses count as retail or office as appropriate. LEGEND permitted (P), accessory (A), and conditional (C) 1 at the end of use title implies specific standards for the use exist in UDC Chapter 4 ADDITIONAL Accessory uses allowed in C-G zone but not shown above are permitted if the primary use is allowed. Kleiner, David Property MDA-12-006.doc Page 15 Uses not listed above but otherwise allowed in C-G zone may be considered by modification of DA. Uses classified as "Retail" or "Office" above count against total allowed retail or office square footages; "Residential" and "Other" uses shown above do not. 2. Owners/Developers agree to abide by all ordinances of the City of Meridian that are consistent with the terms of the Development Agreement and this First Addendum and the Project Site shall be subject to de- annexation if the Owners/Developers, or their assigns, heirs, or successors shall not meet the conditions of this First Addendum as herein provided, and the Ordinances of the City of Meridian that are consistent with the terms of the Development Agreement and this First Addendum. 3. If any provision of this First Addendum is held not valid by a court of competent jurisdiction, such provision shall be deemed to be excised from this First Addendum and the invalidity thereof shall not affect any of the other provisions contained herein. 4. This First Addendum sets forth all promises, inducements, agreements, condition, and understandings between Owners/Developers and City relative to the subject matter herein, and there are no promises, agreements, conditions or under-standing, either oral or written, express or implied, between Owners/Developers and City, other than as are stated herein. Except as herein otherwise provided, no subsequent alteration, amendment, change or addition to this First Addendum shall be binding upon the parties hereto unless reduced to writing and signed by them or their successors in interest or their assigns, and pursuant, with respect to City, to a duly adopted ordinance or resolution of City. a. Except as herein provided, no condition governing the uses and/or conditions governing development of the subject Project Site herein provided for can be modified or amended without the approval of the City Council after the City has conducted public hearing(s) in accordance with the notice provisions provided for a zoning designation and/or amendment in force at the time of the proposed amendment. This First Addendum shall be effective as of the date herein above written. 6. Except as amended by this First Addendum, all terms of the Development Agreement shall remain in full force and effect. Kleiner, David Property MDA-12-006.doc Page 16 Add legal description for project site: Exhibit A A parcel of land situated in the west half of the southwest quarter of the southeast quarter of Section 4, Township 3 North, Range l East, Boise Meridian, Ada County, Idaho, being .more partleularly described as follows; Commencing at a brass cap marking the southwest corner of Section 4, Township 3 North, Range 1 .East, Boise Meridian; Thence S89°46' 1?"E, 2659.51 feet along the south line of the southwest quarter to a 5/8 inch rebar marking the south quarter-section corner of Section 4; "Thence 589°46'39"E, 664.61 feet along the south line of the southeast quarter; Thence N00°13.'21"E, 57.74 feet to a S/8 inch rebar marking the southwest corner of Venture Subdivision, Book 27 of Plats at Pages 1704 & 1705, on the north right-of--way line of East Fairview Avenue, the POINT OF BEGINNING; Thence N00°04'25"E, 741.97 feet along the west line of Venture Subdivision; Thence N89°59'29"W, 66.3.68 feet to the west line of the west half of~the southwest quarter of the southeast quarter; Thence SOU°09'04"W, 741.97 feet along the west line of the west half of the southwest quarter of the southeast quarter to a 5/8 inch rebar on the north right-of- way line of East Fairview Avenue;. Thence S89°59'29"E, 664.6$ feet'along the north right-of--.way line of East Fairview Avenue to the POINT OF BF.GTNNING. The .above-described parcel contains 11..31 acres, :more or less. Kleiner, David Property MDA-12-006.doc Page 17