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HomeMy WebLinkAboutReso 2000-182 RESOLUTION NO. 2000-182 AGENCY RESOLUTION NO. 1671 A JOiNT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA (A) APPROViNG A DISPOSITION AND DEVELOPMENT AGREEMENT AND RELATED AGREEMENTS BETWEEN THE AGENCY AND GATEWAY CHULA VISTA, LLC FOR THE DEVELOPMENT OF A MIXED-USE COMMERCIAL/OFFICE PROJECT AT THE NORTHWEST CORNER OF THIRD AND H STREET; (B) MAKING CERTAIN FINDiNGS iN CONNECTION THEREWITH; (C) AUTHORIZiNG EXECUTION OF SAID AGREEMENT; AND (D) APPROViNG FUNDING OF THE PROJECT WITH VARIOUS AGENCY SOURCES AND CDBG FUNDS WHEREAS, the Redevelopment Agency of the City of Chula Vista (the "Agency") is a redevelopment agency organized and existing under the Califomia Community Redevelopment Law, Health and Safety Code Section 33000, et seq., (the "CRL") and has been authorized to transact business and exercise the powers ofa redevelopment agency pursuant to action of the City Council ("City Council") of the City of Chula Vista ("City") and the Agency is engaged in activities necessary to carry out and redevelopment activities within the City; and WHEREAS, the City Council, acting pursuant to the provisions of the CRL has adopted the Redevelopment Plan (the "Redevelopment Plan") for the Town Centre I Redevelopment Project which established the boundaries of the Town Centre I Redevelopment Project Area (the "Project Area") by Ordinance No. 1691 on July 6, 1976, and amended by Ordinance No. 1872 on July 17, 1979, by Ordinance No. 2146 on April 22, 1986, and by Ordinance No. 2585 on January 4, 1994, and amended by Ordinance No. 2735 on June 23, 1998 (collectively said ordinances comprise the "Redevelopment Plan" herein); and WHEREAS, the Agency and the Developer, Gateway Chula Vista, LLC, a Califomia limited liability company, have negotiated the terms of a Disposition and Development Agreement CDDA") relating to the redevelopment, development, and operation of a phased First Class, First Quality mixed-use commercial/office project with restaurant and retail components with common areas, including one parking structure that spans all Phases of the Project (the "Project"); and WHEREAS, capitalized terms used in this resolution are as set forth in the DDA, unless separately defined herein; and WHEREAS, the amount of the Agency Participation was determined after an independent financial analysis of the Developer's pro forma for the Project by the Agency's independent economic advisor, and said financial analysis determines the amount of Agency Participation is necessary and feasible to induce the Developer to undertake, complete, and operate the First Class, First Quality Project and to provide necessary Public Improvements for the proper use, operation, and success of the Project and this portion of the Project Area for the community; and WHEREAS, the City will expend such funds to finance, in part, the value of the land for and the cost of the installation and construction of certain Public Improvements to and adjacent to the Project being constructed and completed by the Developer; and Resolution 2000-182 -' Page 2 WHEREAS, the Agency and City desire to achieve the Project and enter into the DDA in order to implement the provisions of the Redevelopment Plan for the Project Area prepared pursuant to Section 33490 of the CRL, consistent with the objectives of such plans, resulting in the redevelopment of existing commercial property in the Project Area; and WHEREAS, the financial assistance to be provided by the Agency under the DDA is an inducement to cause the undertaking and completion of the Project by the Developer and in order to obtain the covenants relating to use, maintenance, and operation of the Project in conformity with Section 1000, et seq. of the DDA, which covenants will be of benefit to the Project Area and the entire community of Chula Vista; and WHEREAS, in addition to the DDA, the Agency will be entering into a Reimbursement Agreement with the Developer for the design, construction, and completion of all of the Public Improvements at a guaranteed maximum price not to exceed $300,000.00; and WHEREAS, the construction and development of the Public Improvements and the completion of all of the private Improvements are and will be a single integrated project; and WHEREAS, the Public Improvements will be appnrtenant to and an integral part of the private Improvements and because of the integrated nature of the privately owned land and ~mprovements that comprise the Site, the construction and completion of all the private Improvements and all of the Public Improvements by the Developer, without competitive bidding by the Agency of the Public Improvements, is and will be advantageous to, and in the best public interest of, the Agency, and the City; and WHEREAS, causing the Developer to design, construct, and complete all of the Public Improvements will obtain the best economic result for the public, in part because the amount of the Agency Participation to be provided by the Agency to the Developer for the land for and cost of installation and construction of the Public Improvements is capped under the DDA, and the estimated costs to pay for a part of the value of the land for and construction and installation of the Public Improvements may exceed $300,000.00; and WHEREAS, under the DDA the Developer assumes, and under the Reimbursement Agreement, the Developer will assume, complete financial responsibility for the design, construction, and completion of the Public Improvements, even if the total costs to undertake and complete such improvements exceeds $300,000.00, therefore, an economic advantage arises because competitive bidding would be incongruous and will not result in any additional benefit or cost savings to the Agency or the City in their efforts and objective to contract for the greatest public benefit; and WHEREAS, Section 33445 of the CRL authorizes a redevelopment agency, with the consent of the legislative body, to pay all or part of the value of the land for and the cost of the installation and construction of any building, facility, structure, or other improvement which is publicly owned either within or without the project area upon certain findings; and WHEREAS, pursuant to CRL Section 33433, the Agency is authorized, with the approval of the City Council after public hearing, to accept an assignment and thereafter reassign interests in Resolution 2000-182 Page 3 the Site for development pursuant to the Redevelopment Plan upon a determination by the City Council that the consideration for such sale or is not less than fair market value in accordance with covenants and conditions governing the sale or lease or with respect to any sale or lease at less than estimated value, determined at the highest use permitted under the Redevelopment Plan, that the lesser consideration is necessary to effectuate the purposes of the Redevelopment Plan; and WHEREAS, a joint public hearing of the Agency and City Council on the proposed DDA was duly noticed in accordance with the requirements of CRL Section 33433; and WHEREAS, the proposed DDA, and a summary report meeting the requirements of CRL Section 33433, were available for public inspection consistent with the requirements of CRL Section 33433; and WHEREAS, at said public hearing, the Agency and City received evidence that the following environmental compliance has occurred: (1) a program EIR was adopted at the time of Town Centre I Project Area formation in 1976. This EIR was most recently updated pursuant to the adoption of PEIR98-2 in connection with the Fifth Amendment to the Project Area. PEIR98-2 concluded that the Fifth Amendment would trigger new development but that such development was already planned for by the City; and (2) a preliminary traffic study was completed in June 1999 which showed that this project and two projects of similar size could be accommodated on the existing improvements; and (3) an updated traffic study to address changes in the area and the project has been commissioned and will be completed within eight weeks; and (4) the developer has completed a Phase I Hazardous Material Study for a portion of the property. WHEREAS, the approvals herein and in the implementing documentation are fully conditioned on the City and Agency complying with Califomia Environmental Quality Act (CEQA). Until the City Council and Agency have considered all appropriate environmental documentation the City and Agency are not committed to a definite course of action and retain full and unfettered discretion to approve or disapprove the Project; and WHEREAS, the approval of the DDA is an approval of a contingent financial transaction with no impacts on the environment; completion of the CEQA process at this time is not feasible due to the fact the Project has not been sufficiently defined and incomplete information is available; Project definition and refinement, will occur as part of the processing of the Specific Plan and other required entitlements for the Project; and Resolution 2000-182 ~-, Page 4 WHEREAS, the Agency and City Council held a joint public heating on the proposed DDA for the purpose of receiving public input and comment on the proposed Project and related implementing contracts and evaluated all of the information, testimony, and evidence presented during the joint public heating; and WHEREAS, the Agency and City Council have reviewed the summary report required pursuant to CRL Section 33433 and evaluated other information provided to it pertaining to the finding required pursuant to Section 33433; and WHEREAS, all actions required by all applicable laws with respect to the proposed DDA have been taken in an appropriate and timely manner; and WHEREAS, the Agency and City Council have duly considered all terms and conditions of the proposed DDA and believe that the redevelopment of the Site pursuant thereto is in the best interests of the City of Chula Vista and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements; and WHEREAS, the City Council and Agency have reviewed the summary report, the DDA, and related documents and conducted aj oint public hearing on the proposed expenditure o ftax increment funds toward part of the value of the land for and costs of installation and construction of the Public Improvements and for payment of the Agency Participation, and has heard and considered the public testimony thereon; and WHEREAS, the Agency's financing of a portion of the value of the land for and costs of installation and construction of the Public Improvements is of benefit to the Project Area and the surrounding development, and is necessary to effectuate the purposes of the Redevelopment Plan by as sisting the Agency in the elimination o fblight in the Project Area, increasing economic activity, causing redevelopment and economic improvement of the Site, increasing employment opportunities within the Project Area, generating additional local revenues and taxes with which the community can cause other redevelopment projects and other public benefit, including, but not limited to, increasing and improving the community's supply of low-and moderate-income housing and providing an environment for the social, economic, and psychological growth and well-being of the citizens of the City, making available to the City, Agency and Developer a First Class, First Quality Project in the Project Area; and WHEREAS, the Project and the provision of the Public Improvements is consistent with the Implementation Plan of the Agency adopted pursuant to CRL Section 33490; and WHEREAS, there are no other reasonable means of financing part of the value of the land for and the costs of the planning, design, installation, construction, and development of the Public Improvements available to the community without such partial funding by the Agency, in particular capital and other funds of the community are already committed to other public programs, projects, and purposes, and the economic feasibility of causing the Site to be redeveloped requires the financial assistance; and Resolution 2000-182 Page 5 WHEREAS, the Agency has determined the expenditure of the tax increment funds is in the best interest of the City and the health, safety and welfare of its residents, and is in accord with the public parposes and provisions of applicable state and local laws and requirements under which the Redevelopment Project and its Redevelopment Plan have been undertaken; and WHEREAS, the redevelopment of the Site and the installation and construction of the Public Improvements will assist in the elimination of blight by facilitating the development and operation of a First Class, First Quality Project, which will be properly designed, constructed and maintained, and will be of benefit to the community by increasing economic activity, reversing and correcting the continued economic decline of the Site, and eliminating blight consistent with original objectives of the Redevelopment Plan to cause redevelopment of the commercial properties in the Project Area, to cause redevelopment of underutilized property, and to assist in the provision of public infrastructure to facilitate redevelopment of commercial property in the Project Area; and WHEREAS, pursuant to Sections 33132, 33133, and 33600 of the CRL, the City may provide and the Agency may accept financial or other assistance from any public or private source, for the Ageney's activities, powers, and duties, and expend any fimds so received for any of the purposes of the CRL; and WHEREAS, the City is authorized to provide aid and cooperation to the Agency in the planning, undertaking, construction, or operation of redevelopment projects pursuant to Section 33220 of the CRL; and WHEREAS, all actions required by all applicable law with respect to the proposed DDA have been taken in an appropriate and timely manner; and WHEREAS, the City Council and Agency have duly considered all terms and conditions of the proposed DDA and believes it is in the best interests of the City and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements; and WHEREAS, the undertaking and completion of the Project pursuant to the DDA, the Reimbursement Agreement, and all other ancillary agreements, and the fulfillment generally of the DDA are in the vital and best interests of the City and the health, safety, and welfare of its residents and in accord with the provisions of applicable federal, state and local law; and WHEREAS, the goals of the Redevelopment Plan, and the DDA, the Bond Documents, the Reimbursement Agreement, and other implementing agreements are intended to be contracts within the meaning of Government Code Section 53511; and NOW THEREFORE, THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA DO HEREBY JOiNTLY FIND, RESOLVE AND DETERMINE AS FOLLOWS: Resolution 2000-182 Page 6 SECTION 1. The City Council and Agency find and determine the foregoing Recitals are true and correct and are a substantive part of this Resolution. SECTION 2. The City Council and Agency do hereby declare that any and all project approvals are contingent upon and subject to preparation, approval and implementation of all necessary CEQA documents and mitigation measures. City Council and Agency retain in their sole discretion the right to approve or disapprove the environmental documentation and project. SECTION 3. The City Council and Agency do hereby find and determine, based upon substantial evidence provided in the record before it that the consideration for the Agency's acceptance of the assignment and thereafter reassignment of the Site pursuant to the terms and conditions of the Disposition and Development Agreement is not less than fair reuse value in accordance with covenants and conditions governing the disposition, determined at the highest use permitted under the Redevelopment Plan, that such consideration is necessary to effectuate the purposes of the Redevelopment Plan. SECTION 4. The City Council and Agency find and determine no other reasonable means of financing the payment of a portion of the value of the land for and cost of installation and construction of the Public Improvements are available to the community, in particular capital and other funds of the community are already committed to other public programs, projects, and purposes. The amount of the Agency Participation was determined after an independent financial analysis of the Developer's pro forma for the Project by the Agency's independent economic advisor, and said financial analysis determines the amount of Agency Participation is necessary and feasible to induce the Developer to undertake, complete, and operate the First Class, First Quality Project and to provide necessary public improvements for the proper use, operation, and success of the Project and this portion of the Project Area for the community. The Project and the provision of the Agency Participation therefor, inclusive of the Public Improvements, is consistent with the Implementation Plan of the Agency adopted pursuant to CRL Section 33490. SECTION 5. The City Council and Agency do find and determine financing of the Agency participation and a portion of the costs of the Public Improvements is of benefit to the Project Area and the surrounding development, and is necessary to effectuate the purposes of the Redevelopment Plan by assisting the Agency in the elimination of blight in the Project Area, increasing economic activity, causing redevelopment and economic improvement of the Site, increasing employment opportunities within the Project Area, generating additional local revenues and taxes with which the community can cause other redevelopment projects and public benefit, including but not limited to ~ncreas~ng and improving the community's supply of low- and moderate income housing and providing an environment for the social, economic, and psychological growth and well-being of the citizens of the City, making available to the City, Agency and Developer a First Class, First Quality Project. SECTION 6. The City Council and Agency do find and determine the partial funding of the value of the land for and the installation and construction of the Public Improvements will eliminate blight within the Project Area by providing for the proper development of public improvements and facilities and the proper improvement, reuse, and redevelopment of a portion of the Project Area. Resolution 2000-182 Page 7 SECTION 7. The City Council and Agency do find and determine the Developer's design, construction and completion of the Public Improvements pursuant to the DDA and the Reimbursement Agreement without competitive bidding by the Agency creates an economic advantage to the City and the Agency, because competitive bidding would be incongruous and will not result in any additional benefit or cost savings in their effort and objective to contract for the greatest public benefit. SECTION 8. The Agency and City Council do hereby approve the sale of the Agency and Developer parcel in the manner set forth in the DDA. SECTION 9. The Agency and City Council hereby find and determine that the DDA between the Agency and Chula Vista Gateway, LLC is approved in substantially the form presented subject to minor modifications as may be required or approved by the City Attorney. SECTION 10. The Chairman of the Agency is hereby authorized and directed to execute all documents necessary and appropriate to carry out and implement the DDA and Agency staff is hereby authorized and directed to take all necessary and appropriate actions to implement same. Presented by Approved as to form by Chris Salomone ny Community Development Director Resolution 2000-182 Page 8 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 6th day of June, 2000, by the following vote: AYES: Councilmembers: Davis, Moot, Padilla, Salas, and Horton NAYS: Counci lmembers: None ABSENT: Councilmembers: None Shirley Horton, ~(~ayor ATTEST: Susan Bigelow, City Cle~ STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2000-182 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 6th day of June, 2000. Executed this 6th day of June, 2000. Susan Bigelow, City Clerk