HomeMy WebLinkAboutReso 1998-18988 RESOLUTION NO. 18988
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING THE SECOND AMENDMENT TO THE
SETTLEMENT AGREEMENT BY AND BETWEEN MCA
CONCERTS, INC. (NOW UNIVERSAL CONCERTS, INC.) AND
THE CITY OF CHULA VISTA DATED NOVEMBER 16, 1996,
AMENDING THE SCHEDULE FOR THE REIMBURSEMENT OF
FUNDS FOR THE CONSTRUCTION OF A SOUND WALL AND
APPROPRIATING FUNDS THEREFOR
WHEREAS, Both the City of Chula Vista (the "City") and MCA Concerts, Inc. (the
(Developer"), currently known as Universal Concerts, Inc., were subject to pending litigation
brought by SNMB L.P. against construction of an amphitheater in the Otay River Valley; and
WHEREAS, the Developer entered into a Settlement Agreement with SNMB L.P. for
resolution of the pending litigation which stipulated that the Developer would construct a
sound mitigation wall to reduce noise impacts from operation of the amphitheater; and
WHEREAS, the Developer and the City of Chula Vista Council entered into a
subsequent Settlement Agreement (the "Agreement"), dated November 15, 1996, stipulating
that the City would reimburse $150,000 to the Developer for construction of the sound wall;
and
WHEREAS, pursuant to the Agreement, the reimbursement of $150,000 was
conditioned on the building permit for the amphitheater being issued by April 1, 1997, and
MCA making the required payment to SNMB; and
WHEREAS, said Agreement was amended such that the City would pay the $150,000
to MCA if the grading permit was issued by October 30, 1998 and the project building permit
was issued by such time as to allow completion of the amphitheater by June 1, 1998; and
WHEREAS, the Developer met the grading permit deadline for the project, but an
unusually wet winter season has delayed construction activities by approximately one month
and the project is now anticipated to be completed early in July; and
WHEREAS, it is now proposed that the Agreement be amended a second time to allow
that the reimbursement to the Developer will be made incrementally as the building permits
are pulled and the first concert occurs; and
WHEREAS, the Second Annendment to the Settlement Agreement has been prepared
reflecting a new reimbursement schedule which is acceptable to the Developer; and
WHEREAS, funds to reimburse the Developer have not previously been appropriated.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does
hereby resolve as follows:
(1) A Second Amendment to the Settlement Agreement by and Between the
City of Chula Vista and MCA Concerts, Inc. dated November 15, 1996, is
Resolution 18988
Page 2
hereby approved on the terms presented by staff.
(2) The Mayor is authorized to execute the Second Amendment on behalf of the City
in a form approved by the City Attorney, copy of which is kept on file with the City
Clerk as Document No. C098-067.
(3) The City Council hereby appropriates $150,000 from the unappropriated balance
of the General Fund for the purpose of reimbursing the Developer for construction of
the sound wall.
Presented by Approved as to form by
Chris Salomonec Joh aheny ~'
Community Development Director
Resolution 18988
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 5th day of May, 1998, by the following vote:
AYES: Councilmembers: Moot, Rindone, Salas and Horton
NAYES: Councilmembers: None
ABSENT: Councilmembers: Padilia
ABSTAIN: Councilmembers: None
Shirley Ho/~n, Mayor
ATTEST:
Beverly A?~Auth;let, City Clerk
STATE QF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that
the foregoing Resolution No. 18988 was duly passed, approved, and adopted by the City
Council at a regular rneeting of the Chula Vista City Council held on the 5th day of May,
1998.
Executed this 5th day of May, 1998.
theist, City Clerk