HomeMy WebLinkAboutReso 1999-19593 RESOLUTION NO. 19593
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING THE EXECUTION OF AN AGREEMENT FOR
DEFEBRAL OF CERTAIN DEVELOPMENT IMPACT FEES BY AND
BETWEEN THE CITY OF CHULA VISTA AND N.E.W.
INVESTMENTS, UUC.
WHEREAS, RSI Technologies, Inc. is a local, minority-owned, Chula Vista-based
company which was started in 1992; and
WHEREAS, RSI desires to relocate to a 26,708 square foot building for the ("Project")
on approximately 1.36 acres of real property located at the corner of Fenton Street and Lane
Avenue in the EastLake Business Center in Chula Vista, California ("Property"); and
WHEREAS, N.E.W. Investments, L.L.C. (N.E.W.), a partnership composed of the RSI
partners, wishes to acquire the land, construct the building, and lease same to RSI; and
WHEREAS, as a condition of obtaining a building permit from City for the Project,
N.E.W. must pay a variety of development impact, building and processing fees, including an
Interim SR125 Development Impact Fee of 922,468 ("SR 125 DIF"), a Public Facilities
Development Impact Fee of 813,761.65 ("PFIDF") and a Telegraph Canyon Drainage
Development Impact Fee of 85,373.14 ("Drainage DIF"); and
WHEREAS, in order to reduce the substantial up-front costs of developing the Project,
N.E.W. wishes to defer payment of a portion of these fees; and
WHEREAS, in this specific case, the City is willing to defer payment of the SR125 DIF,
the PFDIF and the Drainage DIF (collectively, the "Deferred Fees") on the terms and conditions
set forth herein in light of the following facts and circumstances:
(a) The subject project is located within the High-Tech/Bio-tech Zone, which has
been targeted by the City for the attraction, retention and expansion of
businesses deemed to be involved with high-level technologies.
(b) The subject project qualifies for a deferral of certain development impact fees
because it will generate new taxes, development fees and jobs. In addition, it
will serve to further stimulate development interest in the Eastlake Business
Park.
(c) The subject project meets assistance criteria currently being developed for
future adoption and thus qualifies for the incentives herein described.
(d) Since the developer will be executing a promissory note, three personal
guarantees and a deed of trust to secure its debt to the City, there are adequate
assurances of repayment.
(e) tt has been determined that the subject deferral of certain development impact
fees will not adversely affect City budgets for projects dependent on
development impact fee revenues.
Resolution 19593
Page 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista
does hereby authorize the execution of an Agreement for Deferral of Certain Development
Impact Fees and related documents in substantially the forms presented by and between the
City of Chula Vista and N.E.W. Investments, L.L.C., providing for a 10-year deferral of certain
Development Impact Fees totaling $41,602.79.
Presented by Approved as to form by
Chris Salomone ~ M. Kaheny ~
Community Development Director Attorney
Resolution 19593
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 31 ,t day of August, 1999, by the following vote:
AYES: Councilmembers: Davis, Moot, Salas and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: Padilia
ABSTAIN: Councilmembers: None
Shirley Horto~, Mayor
ATTEST:
Susan Bigelow, City Clerk
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, 19593 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 31 ,t day of August, 1999.
Executed this 31 ,t day of August, 1999.
Susan Bigetow, City Clerk