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EXHIBITBSTATEMENTOFOVERRIDINGCONSIDERATIONSFORTHEPROPOSEDNORTHEASTANNEXATIONAREAANDSKYRIDGEVESTINGTENTATIVETRACTMAPPROJECT

MISSIONVIEJO,CAHAVING RECEIVED, REVIEWED, AND CONSIDERED THE FOLLOWING INFORMATION AS

WELL AS ALL OTHER INFORMATION IN THE RECORD OF PROCEEDINGS ON THIS

MATTER, THE PLANNING COMMISSION OF THE CITY OF MISSION VIEJO HEREBY FINDS,

DETERMINES AND DECLARES AS FOLLOWS:

I. IntroductionThe City of Mission Viejo is the Lead Agency under CEQA for preparation, review

and certification of the Revised Final EIR for the Northeast Annexation Area andSkyridge VTTM Project. As the Lead Agency, the City is also responsible for

determining the potential environmental impacts of the proposed action and which

of those impacts are significant, and which can be mitigated through imposition of

mitigation measures to avoid or minimize those impacts to a level of less than

significant. CEQA then requires the Lead Agency to balance the benefits of a

proposed action against its significant unavoidable adverse environmental impacts

in determining whether or not to approve the proposed project. In making this

determination the City is guided by CEQA Guidelines Section 15093 which provides

as follows:

1. CEQA requires the decisionmaking agency to balance, as applicable, theeconomic, legal, social, technological, or other benefits of a proposed project

against its unavoidable environmental risks when determining whether to

approve the project. If the specific economic, legal, social, technological, or

other benefits of a proposed project outweigh the unavoidable adverse

environmental effects, the adverse environmental effects may be considered

acceptable.

2. When the lead agency approves a project which will result in the occurrence

of significant effects which are identified in the final EIR but are not avoided

or substantially lessened, the agency shall state in writing the specific

reasons to support its action based on the final EIR and/or other informationin the record. The statement of overriding considerations shall be supported

by substantial evidence in the record.

3. If an agency makes a statement of overriding considerations, the statement

should be included in the record of the project approval and should be

mentioned in the notice of determination. This statement does not substitute

for, and shall be in addition to, findings required pursuant to Section 15091.

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In addition, Public Resources Code Section 21081(b) requires that where a public

agency finds that specific economic, legal, social, technological, or other

considerations, including considerations for the provision of employment

opportunities for highly trained workers, make infeasible the mitigation measures

or alternatives identified in an EIR and thereby leave significant unavoidable effects,

the public agency must also find that overriding economic, legal, social,technological, or other benefits of the project outweigh the significant effects of the

project.

Pursuant to Public Resources Code Section 21081(b) and the State CEQA Guidelines

Section 15093, the City has balanced the benefits of the proposed Project against the

following unavoidable adverse impacts associated with the proposed Project and

has adopted all feasible mitigation measures with respect to these impacts. The City

also has examined alternatives to the proposed Project, none of which both meet the

Project objectives and is environmentally preferable to the proposed Project for the

reasons discussed in the Findings and Facts in Support of Findings.

The Mission Viejo City Council, acting as Lead Agency, and having reviewed the Final

EIR for the Northeast Annexation Area and Skyridge VTTM Project, and reviewed all

written materials within the Citys public record and heard all oral testimony

presented at public hearings, adopts this Statement of Overriding Considerations,

which has balanced the benefits of the project against its significant unavoidable

adverse environmental impacts in reaching its decision to approve the project.

II. SignificantUnavoidableAdverseEnvironmentalImpactsAlthough most potential Project impacts have been substantially avoided ormitigated, as described in the Findings and Facts in Support of Findings, there

remain some project impacts for which complete mitigation is not feasible. For

some impacts, mitigation measures were identified and adopted by the Lead

Agency, however, even with implementation of the measures, the City finds that the

impact cannot be reduced to a level of less than significant. For other impacts, no

feasible mitigation measures were identified and no feasible alternatives were

identified that would avoid or minimize these impacts. The impacts are described

below and were also addressed in the Findings.

The Final EIR identified the following unavoidable adverse impacts of the proposed

Project:

AirQualityAlthoughconstruction-relateddaily(short-term)emissionswouldnotexceedSCAQMD

significancethresholdsforVOC,PM10,PM2.5,CO,andSOx,NOxemissionsresultingfrom

both theclearingandexportofmaterialsaswellason-sitegradingactivitieswould

exceedSCAQMDdaily thresholds. Therefore,regionalprojectconstructionemissions

wouldresultinasignificantunavoidableadverseimpact.

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TrafficandCirculationWith respect to the impacts to Santiago Canyon Road, while the identified

improvements set forth in Section 4.2.5, if completed, would mitigate the projects

cumulative impacts to less than significant levels, implementation of this mitigation

measure will not mitigate the projects potential impacts to Santiago Canyon Road toless than significant levels. This is so because: (i) the County has no plans to

implement such identified improvements, (ii) the City cannot compel the County to

implement such improvements, and (iii) no fee program exists to mitigate the

cumulative impacts to Santiago Canyon Road. Thus, while the mitigation measures

prescribed in Section 4.2.5 represent feasible mitigation per CEQA Guidelines

15091(a)(2), the impacts to Santiago Canyon Road remain significant and unavoidable

and a Statement of Overriding Considerations will be required to be adopted by the

City of Mission Viejo.

III. OverridingConsiderationsThe City, after balancing the specific economic, legal, social, technological, and other

benefits of the proposed Northeast Annexation Area and Skyridge VTTM Project, has

determined that the unavoidable adverse environmental impacts identified above

may be considered acceptable due to the following specific considerations that

outweigh the unavoidable, adverse environmental impacts of the proposed Project.

1. Project implementation will provide up to 86 singlefamily housing units in the City

of Mission Viejo. Provision of these housing units is consistent with the longrange

goals and objectives of the Citys General Plan. While the Project focuses on market

rate housing, the housing units will assist the City or County of Orange in meeting its

fairshare housing allocation imposed by the Southern California Association ofGovernments.

2. Project implementation will eliminate a potential risk to the public associated with

the remediation of the existing landslide, which poses an imminent danger not only

to nearby residential properties, which could adversely affect existing homes and

property values but also to El Toro Road, which could impact traffic and circulation

in the City and region at substantial costs associated with reconstruction of the

roadway in the event of a catastrophic failure of the landslide.

3. Project implementation will result in increase revenue to the City of Mission Viejo as

a result of property taxes and related fees generated by the proposed residentialdevelopment. The increase in revenue would be used by the City to provide

enhanced public services and facilities, including fire and police protection, law

enforcement, and other amenities and services available to the residents of the City.

4. Project implementation will resolve an existing traffic deficiency along El Toro Road

by adding an additional travel lane to adequately accommodate the existing and

future traffic volumes.

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5. The incorporation of fuel modification setbacks adjacent to the existing designated

Very High fire severity zone will provide added protection to the existing homes

from the threat of wildland fire.

6. The proposed Skyridge residential project provides more recreation amenities into

the project area by incorporating additional pedestrian and hiking trail connectionsfor existing and future trail users.

7. Additional park fees paid to the City of Mission Viejo by the project applicant can be

used by the City to provide additional recreation facilities and/or programs for

existing and future residents.

8. Annexation of the subject property into the City of Mission Viejo will allow the City

to control the type of land use that would be permitted and the design of the land

use in the northerly limits.